Press Releases and Newsletters
Counties dig in on road costs (ENC Today)
County leaders have set up a road block against another effort by the General Assembly to reduce the state’s budget deficit by shifting responsibility for secondary road maintenance away from the state to the counties.
“It would absolutely break the backs of counties,” George Graham, chairman of the Lenoir County Board of Commissioners, said of that cost-shifting scheme.
Counties fought off a similar attempt in 2009 when Sens. Bob Rucho, R-Mecklenburg, and Daniel Clodfelter, D-Mecklenburg, filed legislation in March 2009 calling for counties to take over construction and maintenance of secondary road. That bill contained a provision allowing the state to allocate annual maintenance funds to the counties.
The aim then was to save the state money in the face of a huge gap between state revenues and expenses. The aim this year would be the same, except that the gap is wider at an anticipated $3.7 billion.
The N.C. Department of Transportation currently maintains 80,000 miles of roads, the most miles of any state except Texas.
“We take care of more miles of roads than almost anybody,” DOT Director of Communications Greer Beaty said.
In 2009, the bill was forwarded to the Senate Appropriations Committee, but no further action has taken place on it, according to the N.C. General Assembly website.
“There will be lots of conversations through all state services about what is the most effective way to get the job done,” Beaty said. “We strongly believe we are doing a good job in taking care of the nation’s second-largest road system, and we’re just going to keep doing that.”
Neither Rucho nor Clodfelter could be reached Monday to comment on the possibility that their legislation will be reintroduced, but the N.C. Association of County Commissioners recently stated that it will oppose any attempt to bring back the notion of transferring secondary roads.
“We understand this is going to be a tough budget session for the General Assembly, and the upcoming year will also be a difficult year for counties,” NCACC Executive Director David F. Thompson said during the organization’s recent biannual Legislative Goals Conference.
Opposing a transfer of secondary road maintenance was listed as one of the NCACC’s top priorities for this year.
Beaty said a secondary road is any local road not designated as an interstate, U.S. or N.C. highway.
“(They’re) the neighborhood roads,” she said.
Graham said Lenoir County does not maintain any of its roads, and like many other Eastern North Carolina counties, could not afford to take care of the secondary ones.
“Those counties that are able — Mecklenburg, Guilford, maybe New Hanover — may be okay but smaller counties, rural counties, across North Carolina would be out of business,” he said.
Graham added: “The state should not make an effort to balance the budget on the backs of counties.”
By David Anderson
February 01, 2011 12:00 AM
U.S. Senate Committee on Appropriations Announces Earmark Moratorium (Press Release)
WASHINGTON, DC – Senate Appropriations Committee Chairman Daniel K. Inouye, (D-HI) today announced that the Committee will implement a moratorium on earmarks for the current session of Congress. This amounts to a 2 year moratorium, as it will apply to both the FY 2011 and FY 2012 bills.
Chairman Inouye’s Statement is Below:
“I continue to support the Constitutional right of members of Congress to direct investments to their states and districts under the fiscally responsible and transparent earmarking process that we have established.
“However, the handwriting is clearly on the wall. The President has stated unequivocally that he will veto any legislation containing earmarks, and the House will not pass any bills that contain them. Given the reality before us, it makes no sense to accept earmark requests that have no chance of being enacted into law.
“The Appropriations Committee will thoroughly review its earmark policy to ensure that every member has a precise definition of what constitutes an earmark. To that end, we will send each member a letter with the interpretation of Rule XLIV (44) that will be used by the Committee. If any member submits a request that is an earmark as defined by that rule, we will respectfully return the request.
“Next year, when the consequences of this decision are fully understood by the members of this body, we will most certainly revisit this issue and explore ways to improve the earmarking process. At the appropriate time, I will once again urge the Senate to consider a transparent and fair earmark process that protects our rights as legislators to answer the petitions of our constituents, regardless of what the President or some Federal bureaucrat thinks is right.”
Committee on Appropriations • Room S 128, The Capitol, Washington, DC 20510
Telephone 202-224-7363
February 1, 2011
Could N.C. use video gambling to pay the bills? (Greensboro News and Record)
RALEIGH — Some form of video gambling is likely to play a role in the budget that Gov. Bev Perdue proposes later this month.
The state has been trying for five years to stamp out video poker and its kin, such as the video sweepstakes machines that are now popular.
But various court rulings, including a December decision from a Guilford County court, kept many sweepstakes machines in business. With the industry still operating and the state facing a $3.7 billion budget deficit, Perdue is giving serious consideration to some form or legalization.
“I think I can safely say she is considering the fact that this industry … will constantly seek the loopholes in any law passed to shut them down,” said Chrissy Pearson, a spokeswoman for the Democratic governor. She added that the decision was not “a done deal” but that Perdue has been consistent on the topic during internal discussions about the budget.
Perdue called the current state of the industry “offensive” in December. She and other critics say the businesses operate in a legal gray area and target those who can least afford them. Operators say they are merely small businesses who provide employment and an inexpensive form of entertainment.
“The next question is how do we regulate it fairly, and is there revenue to be gained in doing so as an extra perk?” Pearson said.
Revenue from video poker and its cousins has been a subject of debate for years. Former Rep. Earl Jones pushed a bill during the last legislative session that he said would reap no less than $500 million for the state by regulating such gaming.
It’s unclear what Perdue thinks the state could earn from sanctioning video gambling, and Pearson said she hasn’t begun to sort through questions such as whether the state lottery or some other agency should manage the games.
The increasingly likely possibility that Perdue will include a bid to legalize some form of video gambling in her budget has been a subject of discussion for senior legislative staffers. They are preparing education sessions to teach members about the games.
Lawmakers, who put together the budget Perdue will ultimately sign, have mixed reactions to the possibility of regulating and taxing video gaming.
“To be intellectually honest, when we say everything is on the table dealing with the budget crisis, we’ve got to be willing to look at things we’re not positively disposed to in our gut right out of the gate,” said House Speaker Thom Tillis, a Cornelius Republican.
Republicans control both the House and Senate this session. Some are more hostile to the idea of gaming than Tillis.
“She doesn’t have any thought of actually getting it legalized,” said Rep. Paul “Skip” Stam, an Apex Republican and the House majority leader. “It’s a way to have a place holder, so that she will not have to cut a half-billion-dollars.”
Stam said he opposed any efforts to add any form of video gambling to the state’s portfolio.
Sen. Phil Berger, an Eden Republican and the top leader in the Senate, said he would rather allow the Court of Appeals to look at the Guilford County case. The state should look at legalization only if the higher court allows the games to continue.
Even some Democrats like Perdue are uncomfortable with the idea of tapping gambling revenue.
“I think these Internet sweepstakes casinos are bad things for our state,” said Sen. Josh Stein, a Raleigh Democrat.
By Mark Binker
Staff Writer
Is a Vehicle Mileage Tax Coming to a State Near You? (The Infrastructurist)
There’s plenty of reasons to be excited about the sudden, meteoric rise of EVs and ultra-fuel-efficient hybrids — with gas prices showing no sign of decreasing, fuel supplies showing equally no sign of increasing, and carbon emissions showing the polar opposite of a decrease, we should be thrilled to see momentum building for a drastic change in the way we get from home to work, and everywhere in between.
Still, one glaring question lives amid all the hype and celebration: If the gas tax pays for America’s roads, and that gas tax is already barely covering the costs of said roads, what will happen when more and more drivers start buying less and less gas? We’re already facing a pretty hefty budget dilemma when it comes to infrastructure (and everything else) — and while President Obama has put forth plenty of inspiring plans for infra expansion (including alternatives to road transport, in the form of high-speed rail), he, and the federal government as a whole, have thus far been skimpy on details as far as how to pay for it all.
One could argue that the gas tax is already pretty impotent — it doesn’t even cover the cost of our roads as it is, so why would it matter whether we’re collecting less of it? But ignoring the problem won’t make it go away. As such, we’re glad to see that a few states are beginning to test out alternatives. Like Hawaii, which is reportedly developing a pilot program for a mileage tax. According to Honolulu Civil Beat:
The program would tally the number of miles traveled by particular vehicles and collect payments from their owners. The state would refund fuel taxes paid by those drivers, and could otherwise compensate the participants through a sweepstakes. The bills are light on specifics, and it would be up to the Hawaii Department of Transportation to figure it all out.
Hawaii isn’t the only state warming to this idea: Pilot programs for a “vehicle miles traveled” tax have sprung up in Austin, Texas, Oregon, and Nevada. The downsides: They’re difficult to implement, and require a technological hurdle or two — drivers will have to use a low-tech odometer or a chip will need to be implanted in every car to measure miles traveled. Which presents another problem: chips measuring when and where and how much you drive and reporting those stats to the government could be a violation of your civil liberties, at least, according to the ACLU, which has already opposed Nevada’s mileage tax. Nonetheless, plenty of technology that we already use gathers this data, including EZ Pass and GPS — so why not simply repurpose some of it for the new tax? It’s either that or start paying tolls every time we leave our driveways. Or simply letting our roads continue to sink into disrepair.
Posted on Monday January 31st by Melissa Lafsky
Triangle unemployment rate dips to 7.7 percent (WRAL.com)
Triangle unemployment rate dips to 7.7 percent (WRAL.com)
Posted: 10:36 a.m. today
Updated: 10:46 a.m. today
Unemployment across the Triangle metropolitan area dipped slightly in December to 7.7 percent, according to figures released Tuesday by the state Employment Security Commission.
The rate was 7.9 percent in November.
Overall employment total fell by 300, to 499,600 in Raleigh-Cary.
The loss of 800 construction, 400 government and 600 in services offset a jump of 800 in trade, transportation and utilities employment and an increase of 300 in professional and business services.
Raleigh-Cary’s economy added a net of 200 jobs over the previous December.
Employment in professional and business services in Raleigh-Cary surged by 3,600, a 4.3 percent increase. Trade, transportation and utilities fell by 1,700.
In Durham-Chapel Hill, employment fell by 400 from November, to 287,400. That is 3,100 higher than a year ago, a 1.1 percent improvement.
Government led the year-over-year job growth at 4,000.
Statewide data released by the Employment Security Commission showed that unemployment declined in most countries and in all the 14 major metropolitan areas,
Unemployment statewide was 9.7 percent. The number of people working declined by 15,685, to just over 4 million, but the unemployment total also fell by more than 14,000, to 430,539. People no longer seeking employment or not receiving jobless benefits are not counted among unemployed.
Orange County had the state’s lowest unemployment rate at 5.8 percent.
Unemployment rates in the metropolitan statistical areas for December:
- Asheville — 7.9 percent, down from 8.1 percent in November.
- Burlington — 10.1 percent, down from 10.5 percent.
- Charlotte-Gastonia-Rock Hill NC-SC — 10.7 percent, down from 11 percent.
- Durham-Chapel Hill — 6.9 percent, down from 7.2 percent.
- Fayetteville — 9 percent, down from 9.3 percent.
- Goldsboro — 8.2 percent, down from 8.5 percent.
- Greensboro-High Point — 10.2 percent, down from 10.6 percent.
- Greenville — 9.5 percent, down from 9.7 percent.
- Hickory-Lenoir-Morganton — 12.4 percent, down from 12.8 percent.
- Jacksonville — 7.8 percent, down from 7.9 percent
- Raleigh-Cary — 7.8 percent, down from 8.2 percent.
- Rocky Mount — 12.6 percent, down from 12.9 percent.
- Wilmington — 9.9 percent, down from 10 percent.
- Winston-Salem — 9.2 percent, down from 9.4 percent.
North Carolina unemployment rates, county-by-county
Budget Power (THE ASSOCIATED PRESS)
Lawmakers have rolled out a bill that would give Gov. Beverly Perdue more authority to reduce spending throughout state government to free up extra cash to help close an expected budget gap next year of more than $3.5 billion. The three Senate Appropriations Committee co-chairmen filed a bill Monday that would authorize Perdue to reduce operating fund expenditures for the remainder of the fiscal year, with a goal of saving at least $400 million. Perdue already has ordered state savings in her Cabinet-level agencies but she lacks power to go further in agencies that operate beyond her direct control because there isn’t an official budget emergency. The cost savings could provide extra cash for the fiscal year starting July 1.(THE ASSOCIATED PRESS, 1/31/11).
Weekly Update from the General Assembly January 28, 2011
Whew. The General Assembly is back in town and working at warp speed. As expected, the House elected Thom Tillis as Speaker and the Senate elected Phil Berger as President Pro Tempore. While Senate Republicans hold a veto proof majority the House is four votes shy. Of note, Speaker Tillis received the support of five House Democrats in his election as Speaker which gives him five opportunities to find those four votes should the Republicans want to override a gubernatorial veto.
After electing the leadership each chamber got to work adopting their rules. One interesting new rule in the House limits each member to introducing only ten bills (not counting study bills or local bills). By way of comparison last year there were 2084 bills introduced in the House. The House’s rules are only temporary, so that may change, but until it does expect House members to be judicious in what they agree to sponsor.
Under the category of important dates to write down, pay special attention here. In the Senate, local bills will need to be filed with the clerk by March 9, public bills by March 23. In the House, local bills will need to be filed by March 30, public bills by April 6 Study bills and agency bills have deadlines of March 9 and 16, respectively.
Crossover deadline has been set for May 12th and Speaker Tillis expressed a goal of adjourning session by July 4th. Yes, July! There are indications the leadership is very serious about moving the business of the General Assembly along swiftly. Committees were announced already this week and can be found here. In fact one bill, House Bill 2 Protect Health Care Freedom, was heard Thursday in Committee and voted on. The last time the legislature faced redistricting and a significant budget shortfall was in 2001 when I worked for the House Majority Leader and was very pregnant and still working in December!
The top issue remains the State budget and its $3.7 billion (or 20% of the current budget) hole. Rumor is the Governor will send her budget to the General Assembly somewhere around the third week in February. The House and Senate are already hard at work on their budgets. The budget starts in the House this year and they have set a deadline of May 4 for appropriations bills. Legislative leadership continues to say they will not raise taxes nor extend the temporary taxes set to expire.
Talk of capping the gas tax continues to percolate. NCDOT estimates a cap will cost the State $1.1 billion in lost revenues over the next ten years. Remember, the 10 year work plan you have seen from the Department includes that $1.1 billion. If the legislature caps the gas tax they will have to cut $1.1 billion of projects from that list. NCDOT is working on a county by county scenario of what those cuts could be and as soon as I get it I will send it on to you with talking points of why this would be devastating to our already underfunded transportation network.
We also hear talk of NCDOT agency reductions, ferry tolling increases, and expanding the cut zone in front of billboards. There are lots of questions about the Gaston Parkway and Mid-Currituck bridge projects and the order in which the loops are scheduled to be built. There are many on Jones Street with long held desires to influence transportation issues in this State and they are wasting no time in getting started.
Governor Perdue and the NCDOT were thrilled to announce this week that the Yadkin River Bridge/I-85 project bids came in at half of the amount expected meaning that Mobility Fund dollars will now be available for other projects in 2013. The NCDOT is working on the project submission process, so start thinking about what projects in your area might score well in the prioritization process.
I am thrilled to be up and running on Skype so I can now offer updates on the General Assembly to your city staff, MPO, city council, or county mayor/manager meetings via video chat. Give me a call if you have an interest.
Things are happening fast and furious at the General Assembly, so the best way to keep up is to follow me on Twitter (see button at top of email) or look for these weekly email updates. Additionally, if you are not already receiving the League’s weekly legislative bulletin which covers a larger array of local government issues please email LeagueLINC@nclm.org to get on the list. The League also offers a weekly update via a conference call and you can email the same email to get more information on those.
As always, call or email me if you have any questions.
