Senate takes up SB 13, Balanced Budget Act of 2011. Details on the bill were reported in CJOnline.
Senators Richard Stevens (R Wake), Neal Hunt (R Wake), and Peter Brunstetter (R Forsyth), the Chairs of Senate Appropriations Committee sponsored the bill.
Sen. Doug Berger (D Franklin) presented an amendment to protect corporate welfare and Golden Leaf. The amendment takes Golden Leaf, One NC, and JDIG out of the bill. Berger claims that we need the money to create jobs. Sen .Walters (D Robeson) and Clark Jenkins (D Edgecombe) joined in sponsoring the amendment. They said this $75 M goes to create jobs. They also expressed concern about a raid on Golden Leaf – never thought the new majority would do this. (seriously? Did they sit out the Nov election?). Jenkins claimed we need bi-partisan support for job creation.
Sen. Stevens says phooey, defeat the amendment.
Sen. Jenkins (D Edgecombe) says Golden Leaf has balance of $600 M and the projects have been good – in his county, Edgecombe, every high school student has a computer that were provided by Golden Leaf. No surprise then, he supports the amendment.
Sen. Walters (D Robeson) talks job development – funds critically important. Sen. Pete Brunstetter (R Forsyth) says that to say this grinds economic development is untrue. Different philosophy ? Republicans serious about getting the state finances in order.
Sen. Josh Stein (D wake) talks about global economy, commitments that Commerce Dept. has made, trust of long term deals. Sen. Dan Blue (D Wake) says he doesn’t like incentives but thinks its a way to provide jobs. Says all of this is one time money (I would anticipate a regular diversion of the annual $70 M going to Golden Leaf. – an ongoing diversion until Golden Leaf is dissolved)
Sen. Harry Brown (R Onslow and Senate Majority Leader) says nobody feels good about this list but we have to start somewhere to bridge the $3.7 B shortfall. Tough decisions have just begun. Growing jobs is about de-regulating business. Sen. Floyd McKissick (D Durham and recently elected chair of the Legislative Black Caucus) says “we” have to replace all these jobs we’ve lost. Small businesses have grown to large businesses and we have to have incentives. All the other states have them. We are No 1 in Site Selection Magazine . These are not the places to look to save money. Need this $75 M to grow the economy.
Sen. Bob Rucho (R Mecklenburg) says good to know “our friends on the back row” are now interested in jobs. The democrats were the ones who led the state down this road ? who spent us to death. A good incentive is lower tax rates, create a fair playing field is what will create jobs. This is a pathway to see how to put an economy together. Really gives it to the former majority party’s reckless spending for years. Quit crying now. We were elected to put this state back together and that’s what we’re doing. Sen. Martin Nesbitt (D Buncombe and Minority Leader). He’ll turn the other cheek for now but he’s ready to lead this state forward. Says this amendment is a very small piece and will cost us millions in economic development.Sen. Doug Berger said his counties were smoking/tobacco dependant counties and this is raiding Golden Leaf. Penny wise and Pound Foolish.
President Pro Tem Phil Berger (R Rockingham) says the debate has been about whether we should have incentives. The amendment does not eliminate Golden Leaf or incentives. Can lawfully divert the diversion in an emergency and that’s what the bill does – doesn’t take any money that is encumbered. Need to do it now. If payment goes into Golden Leaf it’s a different story. Have to do it now $75M will go along way. Freshmen Sen. Buck Newton (R Wilson) said we have to make these tough decisions and Sen. Gladys Robinson (D Guilford)
supports economic structure in place.
Doug Berger Amendment fails:18 yes; 30 no
Debate on bill continues with Sen. Dan Clodfelter (D Mecklenberg) who likes the bill and agrees we need to start attacking the budget shortfall. Doesn’t like giving authority to executive branch.
Vote on bill: 30 yes, 18 no
Stevens objects to 3rd reading for technical changes and possible late report that one of the line items may be encumbered. Bill will be taken up again Monday night to cleanup those changes.
