Rep. Wray’s Raleigh report


My colleagues and I were busy on numerous fronts this week, including holding an unusual Friday session so we could wrap up negotiations on the budget.

House and Senate budget writers worked day and night last week and reached an agreement on the roughly $18.9 billion budget on Friday morning. The spending plan makes much needed investments in education, health and human services, our courts and public safety programs, economic development and transportation, while also providing tax relief for all North Carolinians.

We also passed legislation on important “non-budget” issues this week such as increasing competition among cable providers, reciting the Pledge of Allegiance in school, a smoking ban at the General Assembly, protecting kids on school buses, lobbying reform and many other issues.

Please remember that you can listen to each day’s session, committee meetings and press conferences on the General Assembly’s website at www.ncleg.net. Once on the site, select “audio,” and then make your selection — i.e. House Chamber, Senate Chamber, Appropriations Committee Room or Press Conference Room.

Legislators Reach Budget Agreement

House and Senate leaders agreed Friday morning on a budget for the coming year that provides more funding than ever before for education, gives teachers and state employees substantial pay raises, provides much-needed funding for health care, including mental health reform, and offers tax relief to all North Carolinians. The new fiscal year began Saturday, July 1, but there was no threat of a government shutdown because a two-year budget was passed last summer. This measure simply adjusts the second year of the two-year budget. The House and Senate went home for the long July 4th holiday weekend and are expected to vote on the roughly $18.9 billion spending bill this Wednesday and Thursday.

Improving education continues to be our number one priority. Under the proposal, more than $10.7 billion will be provided for education. This total is more than $850 million above last year’s budget and is in addition to more than $400 million in expected revenues from the N.C. Education Lottery for early childhood education, reducing class size, school construction and college scholarships. The budget provides an 8% pay raise for our state’s valuable teachers and a 5.5% pay raise for state employees, which is more than the 5% originally proposed by the Senate and Governor. We also provide full funding of the state’s low-wealth and disadvantaged student school funds, as well as doing away with the school system discretionary cuts forced by budget deficits in prior years — this totals more than $110 million for our children and their schools.

The budget provides close to $200 million in tax cuts, including a reduction in the temporary sales tax and the tax rate on high income earners and many small business, which were increased back in 2001 at the height of the recession. House budget writers were also successful in convincing the Senate to go along with the House sponsored tax credit for small businesses that provide health insurance to employees making less than $40,000 a year. We offer a one-year freeze on the counties’ share of Medicaid, which keeps their costs at this year’s level, and the state’s gas tax will be capped at 29.9 cents.

The budget also includes a critical investment of large and targeted resources into health care, including mental health and community based services, emergency planning and management, and public safety programs and our courts. And, we place over $500 million into savings accounts and repair and renovation of state facilities.

This budget has been produced on-time, is balanced and contains no so-called “pork.” It also is the result of the most open budget process in the modern history of the legislature, and we stuck to the position of the House that the budget should not include any policy issues or special provisions, such as the Senate proposed landfill moratorium that had not received adequate debate in the appropriate policy committees.

Increasing Cable Competition

The House has approved new rules that would replace the current regulation of cable television service by local franchise agreements with a statewide system. The Video Service Competition Act (HB 2047), approved by the House on Monday, eliminates local franchise agreements and opens up service areas to competing companies that apply to the state for coverage areas.

The change has been sought by local telephone companies such as BellSouth looking for additional revenues in a deregulated telecommunications market without lengthy negotiations over local agreements. Any company could provide pay television through cable, phone lines or broadband Internet by filing with the Secretary of State’s Office to offer service in a coverage area. Supporters of the bill say that it will help consumers by increasing competition among various cable providers. The bill also would ensure municipalities at least two public access channels to air local or government programming, and money to help with operating costs. The state Attorney General’s Office would investigate complaints about video programming under the statewide franchise bill. Local governments and consumer advocates worry the rules would make it easier for companies not to offer services in rural areas because it’s unprofitable. The bill was given initial approval last week before it was sent to the Senate on Monday night by a vote of 101-8. A nearly identical Senate bill is also currently moving through the Senate.

About a half-dozen states are considering replacing local cable franchising with state licensing, and a few, including South Carolina, approved such proposals this year.

Pass Minimum Wage Increase Before Adjourning

Several House Democrats and advocates for the poor urged the Senate on Thursday to immediately pass legislation that would raise the minimum wage by $1 per hour. The House passed the increase in a standalone bill (HB 2174) last month, while the Senate inserted the same provision into its budget. Rep. Alma Adams, D-Guilford, said at a news conference that the lives of the working poor and their children won’t improve unless the General Assembly passes the bill before it adjourns for the year. Several Senators said at the end of the week that they hoped the Senate would begin debate on the House minimum wage bill this week.

Pledge of Allegiance Bill Passes House

The House passed a bill on Friday that would require the display of the United States and North Carolina flags, when available, as well as the recitation of the Pledge of Allegiance on a daily basis in public schools. Instruction about the historical context of the Pledge will also be required in classrooms. The bill, SB 700, which has already cleared the Senate, will now go to the governor to sign.

New Rules for Lobbyists

A House judiciary panel approved a bill (HB 1849) this week that would prohibit lobbyists from giving gifts to legislators, although they could still donate to political candidates. The new rules were developed from a special House panel recommendation earlier this year. It builds upon a 2005 lobbying reform package that was approved last year by legislators that will take effect in January and was designed to make lobbying activities more transparent by requiring great reporter requirements. Some wanted that law to go further, particularly on the issue of lobbyists’ gifts to legislators.

The lobbying bill heading to the full House would merge separate rules for registering legislative and executive branch lobbyists with the Secretary of State’s Office under one law. Lobbyists or their principals would be barred from giving gifts to legislators, the governor, Council of State members and their top assistants. Exemptions would be made for meals and drinks at public events such as receptions and trinkets worth less than $10. The bill also would restrict a lobbyist from giving $4,000 in cumulative donations to candidates in any election. An earlier version would have barred all donations, but several legislators and legal experts argued that the courts could rule that prohibition unconstitutional. The proposed restriction also deletes an earlier provision that would have barred a lobbyist from soliciting donations on behalf of a candidate.

The legislation was one of ten recommendations by the House Select Committee on Ethics and Governmental Reform and could be voted on by the full House this week. The House has already passed six campaign finance and ethics reform bills recommended by the committee, but unfortunately the Senate has not passed a single bill thus far.

General Assembly Becomes Smoke-Free

The General Assembly will soon be smoke-free. The House approved a bill (HB 1133) on Friday to prohibit smoking in all parts of the North Carolina legislative buildings, even though the House and Senate chambers have been smoke-free for several years. Supporters of the bill say it is important for lawmakers to set an example for the tens of thousands of visitors, many of them students, who frequent the legislature each year or serve as pages. Earlier this week, the surgeon general released a report citing “overwhelming scientific evidence” that involuntary smoking causes heart disease, lung cancer and a list of other illnesses. The analysis also named additional health risks for children. Despite the fact that North Carolina is the nation’s largest tobacco-producing state, House members approved the smoking ban 95-14.

No Prayer for Judgments for Passing a Stopped School Bus

On Friday, the House approved legislation (HB 2880) that would remove the option to use a Prayer for Judgment (PJC) when facing conviction of a stop arm violation. Passing a stopped school bus carries more points on a driver’s license than a DWI conviction, yet PJCs are not allowed for DWIs and currently are allowed for stop arm violations. The Department of Public Instruction estimates that last year there were as many as 440,640 stop arm violations, but of those only 1,139 were ticketed and 187 actually convicted. The low conviction rate is in part to the use of PJCs. In a recent Paula Zahn primetime special on CNN, it was reported that North Carolina now has the most stringent stop arm laws in the country. If signed into law, the legislation will make our laws even stronger.

“Move Over” Law Goes Into Effect

Beginning on July 1, motorists will face increased penalties for failing to move out of the way of emergency vehicles on North Carolina highways. Following the death of an on-duty North Carolina State Highway Patrolman in the western part of the state, the “Move Over” Law was enacted in 2001 to require motorists to change lanes or slow down when passing a stopped emergency vehicle with flashing lights on the roadside. The changes passed last year by the Legislature, increase penalties for violating the law from a $25 fine to a $250 fine, plus $100 in court costs. In addition, motorists could face misdemeanor charges for causing personal injury or property damage greater than $500 or felony charges for severe injury or death in the immediate area of a stopped emergency vehicle. Information about the “Move Over” law is available on the Web at: www.nccrimecontrol.org/moveover.

General Assembly Honors Hugh Morton

On Wednesday, the General Assembly said goodbye to the late Hugh Morton, calling the photographer and environmental champion a true public servant committed to the interests of North Carolina and retaining the state’s beauty. Lawmakers unanimously passed a resolution honoring Morton, who died June 1 at age 85 from cancer. Morton’s camera lens captured North Carolina history and its scenery for more than a half century, especially Grandfather Mountain, which he turned into a leading tourist attraction, symbolized by its most famous resident, Mildred the Bear. Under his leadership, Morton helped bring the battleship USS North Carolina to Wilmington, and he supported protecting the Cape Hatteras Lighthouse and keeping the Blue Ridge Parkway from going over the mountain he owned. The parkway ultimately went around the mountain thanks to construction of the now-famous Linn Cove Viaduct.

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Due to the July 4th holiday on Tuesday, the House will be back in session on Monday for a short, informal session and then all legislators will be back in Raleigh on Wednesday morning.

As I’ve said many times before, I hope you will continue to let me know how you feel about the issues that are being debated by the North Carolina Legislature and the challenges you and your family are facing each day.

By working together, we can make Northampton, Vance and Warren Counties and all regions of North Carolina a better place to live, work and raise a family.