David Lewis (R-Harnettt) proposed an amendment to convert the certificate of participation (COP) projects to voter-approved general obligation
bonds, saving the taxpayer about 1/2 percent or $28.2 million over the life
of the loans. House Speaker Joe Hackney said the amendment would change the
title and would require that the bill start over – meaning the House budget
debate would last until Saturday instead of ending today. Hackney asked
Lewis if he wanted to make the General Assembly do this. Lewis and other
Republicans said they had a job to do and were willing to stay if
necessary.
Rules chair Bill Owens (D-Pasquotank) said ?these small projects of $2 to
$4 million would cost taxpayer more to hold an election? than would be saved
by the change. For bonds, he argued, each project would have to be listed on
the ballot. This is simply not true ? there would have been three bond
questions and, as Lewis noted, there is already an election scheduled for
November 4. Fortunately, nobody quite made Judge Robert Hobgood?s
argument that voters would get confused.
The Legislature conducted a great debate on bonds and COPs, their
relative costs, the state?s obligation to pay them off, and the need for
transparency and openness in budgeting.
Deborah Ross (D-Wake) was furious and said the amendment sponsors could
have done this in the Finance Committee, but the Republicans wanted to have
this conversation about COPs on the floor. There?s that problem with
openness and transparency again ? let?s not air our dirty laundry or let
voters know what disregard we have for their opinions. Ross added that COPs
don?t waste much money before correcting herself and saying they don?t waste
any money because they can create jobs tomorrow instead of waiting six
months.
The Amendment failed 42-72, but the debate was important.
