Rep. Wray’s Raleigh Report


Governor Perdue released her proposed budget this week giving the General Assembly about three weeks longer than usual to consider the plan before the end of the fiscal year.

The proposal calls for cutting about $1 billion in spending and more than 600 positions. It would scale back or eliminate more than 70 programs that are unnecessary or inefficient in today’s economic climate and set aside $100 million to replenish the state’s rainy day fund.

The plan also recommends strategic investments in job creation, education, government transparency and better communities. These investments are meant to bolster our state’s recovery and help ensure North Carolina emerges from this recession as the best place in the world to live and work.

Over the next several weeks, I will be exploring the details of the nearly 300-page plan Gov. Perdue has proposed. The House of Representatives will then write its own proposal, so there is much subject to change before the final budget is adopted. The following information includes just a few of the highlights from the governor’s draft.

Jobs

  • $86 million for several key investments in assistance to small businesses and infrastructure that will help create 35,000 jobs over the next three years.
  • $15 million for the “Back to Work” Incentive Fund which will provide a direct rebate to small businesses that hire long-term unemployed workers. A separate graduated tax credit will be provided to businesses that create jobs in the highest unemployment counties.
  • This budget proposal renews the $250 per person credit for small businesses that provide health insurance to their employees. Additional recommendations to spur small business growth include a provision that allows businesses to expense up to $250,000 in investments.
  • The governor’s budget also extends and raises the cap of the Qualified Business Venture Credit, which provides a capped incentive for angel investing in cutting edge industry sectors.
  • The plan recommends spending $15 million for the One NC Fund. To date, the fund has helped create 46,920 jobs and $7.8 billion in investment throughout the state.
  • The budget provides $5 million to strengthen North Carolina’s efforts in the biotech, ag-biotech, and biofuels industries, $1.5 million for new and emerging companies through investments in the Small Business Innovation Research matching grant program and $500,000 for green business jobs.
  • The budget proposal provides an additional $1.5 million to promote North Carolina as a business and tourism destination, as well as $1 million to improve the economic viability of small family farms.
  • $1 million is allocated to guarantee a portion of small business loans supported through the Self-Help Credit Unions across our state.
  • $150,000 is earmarked to develop the “In-Source” Supplier Network to encourage North Carolina businesses to buy and sell to one another.
  • Education

  • Fully fund enrollment growth in universities and community colleges.
  • The governor’s proposed budget provides an additional $85 million to meet enrollment demands in the community college system. Community college enrollment has grown about 16 percent since last year to more than 34,000 full-time equivalent students. It also includes $5.6 million for enrollment increases in the UNC System and $14 million to support campus buildings coming on line 2010-11.
  • The proposal includes an additional $35 million for need-based financial aid in the University of North Carolina system and provides $6.5 million to expand need-based financial aid support for community college students. This additional aid, combined with increased Pell Grant awards, will minimize cost increases for needy students.
  • Health

  • The governor’s proposed budget includes an initiative to crack down on Medicaid fraud, waste and abuse, which is estimated to save more than $35 million in 2010-11. Overall, state Medicaid expenditures are projected to grow $430 million next fiscal year in response to rising caseloads and costs.
  • The plan calls for the restoration of $40 million for community mental health programs, which was cut in the last budget.
  • $12 million is planned to pay for additional local private hospital beds for mental health patients who require short term care.
  • $8.5 million is recommended for the State Children’s Health Insurance Program, which will provide health insurance for an additional 8,100 children from working families.
  • $9 million is proposed for targeted reimbursement to adult care homes that provide acute personal care services.
  • The budget proposal expands the nationally recognized Project CARE Program by $1 million, which will allow 500 additional families to receive respite care services for loved ones with dementia.
  • Crime

  • An additional $10 million is recommended for the Criminal Justice Law Enforcement Automated Data Services project that will merge all criminal data records into one interactive and comprehensive system. The system provides law enforcement and court system personnel more reliable and real-time information. This money would allow for the full implementation of the Wake County pilot project and expand it to North Carolina’s seven major metropolitan areas covering over half of the state’s population.
  • This budget proposal also provides $5 million to expand the VIPER system which ensures that first responders on the ground are adequately equipped to communicate with one another during emergency situations.
  • $700,000 would be appropriated to give law enforcement statewide the ability to collect DNA at the time of the arrest, which is a top priority of county sheriffs.
  • Notes

  • United Furniture Industries NC LLC, a national manufacturer of residential upholstered furniture, will open a new facility in Davidson County. The company plans to create 150 jobs and invest more than $3.3 million during the next three years in Lexington. The announcement was made possible in part by a $125,000 grant from the One North Carolina Fund.
  • Greiner Bio-One North America Inc., a manufacturer and distributor of medical sampling devices and laboratory analysis technology, will create 51 jobs and invest $25 million in Union County over the next three years. The project was made possible in part by a $100,000 grant from the One North Carolina Fund.
  • The Legislative Task Force on Childhood Obesity has submitted its report after studying the issue for the past several months and made 14 recommendations to curb childhood obesity in North Carolina. The report now goes to the General Assembly for consideration in the coming session.
  • The State of North Carolina is offering a 15 percent instant rebate to all North Carolina residents who replace an appliance with the purchase of a new Energy Star qualified clothes washer, dishwasher, refrigerator or freezer from a participating North Carolina retailer Thursday, April 22 through Sunday, April 25. Funding was provided to the North Carolina State Energy Office from the federal American Recovery and Reinvestment Act, distributed nationwide by the U.S. Department of Energy.
  • Gov. Bev Perdue, Chief Justice Sarah Parker and state House and Senate leaders have announced a bipartisan effort across state government to reduce spending on corrections and reinvest the savings in ways that prevent recidivism and hold offenders accountable for their actions. State leaders announced their partnership with the Council of State Governments Justice Center, the Pew Center on the States, and the U.S. Department of Justice’s Bureau of Justice Assistance, to analyze North Carolina’s criminal justice system using a “justice reinvestment” approach. State leaders worked together to secure this public-private assistance and financial support.
  • Meetings/Events

    I plan to attend the following meetings/events:

  • Merrell Gay Tribute, Jackson-April 29
  • Warren Relay for Life, Warrenton-April 30
  • Fatherhood Summit, Jackson-May 1
  • Warren Memorial Library, New Harmonies: Celebrating American Roots Music Exhibit, Warrenton-May 1
  • Please invite me to attend your county, city, community or civic, etc. meetings or events.

    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.

    Please remember that you can use the General Assembly’s website to look up bills, view lawmaker biographies and access other information. The site also contains detailed information about the state budget and legislative schedules.