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See
all the pictures we took at the Legislative Reception
See the list of members who
sponsored the reception and the conference
Legislative leaders say spending cuts
should be enough to balance the budget
 The
winter weather that fell over much of the state Thursday
didn’t keep more than 350 people from turning out for
NCCBI’s 16th annual Legislative Conference at the McKimmon
Center on the N.C. State University campus in Raleigh.
Inside, the forecast
wasn’t too rosy, either. The estimated state budget
shortfall of $791.3 million was acknowledged by Senior Fiscal
Analyst David Crotts and never was far from the lips of
legislators introduced by NCCBI First Vice Chairman Gordon
Myers.
“We
need to look under every rock to see that we are spending
every dollar wisely,” House Speaker Jim Black said in his
address. “Nothing is sacred this time.”
Black said the budget
could be balanced wisely and pointed to the 1990-91 fiscal
year as an example. “We came up with $834 million, didn’t
raise taxes and didn’t borrow a dime,” he said.
Senate
Minority Leader Patrick Ballantine said “government is not
as efficient as it should be. We need to streamline
construction and make sure we maximize bonds.”
Ballantine supports
outsourcing some construction projects, and pointed to
Corning’s commitment to pay to have a bridge constructed
near its Concord plant. “I want to see how fast the private
sector can build a bridge,” he said.
House
Minority Leader Leo Daughtry said the state deficit is a
result of years of reckless spending. “It’s inconceivable
to attempt to run a business without financial
responsibility,” he said. “I can’t do it, you can’t do
it, and North Carolina can’t do it.
As we see the national
economy cooling down, we cannot continue to spend.”
The legislative leaders said they don't believe they will have
to make any substantial changes to the tax code in order to
balance the budget. Gov. Mike Easley, in his State
of the State speech Monday night, had suggested the
General Assembly should eliminate several tax breaks and other incentives the state offers to
business.
"Yes, we'll look at loopholes. We'll look at
places where we can save. But I don't think we'll look very
long at the places where we could do damage to small and large
businesses of this state," Senate President Pro Tem Marc
Basnight (above right) said in his remarks. Speaker Jim Black said "the state budget now is $14
billion. Five percent of that is
$700 million, which is about what we need. We ought to be able
to find five percent. I want us to do that before we start
passing lotteries and closing loopholes."
The chairs of NCCBI’s seven committees gave brief reports on
their key legislative positions:
 Lew Myers (Economic
Development) noted that North Carolina currently has “$7
million of unmet water and sewer issues in urban areas, and
$4.3 million in rural areas.”
Clark Plexico
(Education) said that “some of our priorities cost very
little money; in fact, some cost nothing at all. . . . Public
education is the key to the prosperity of the state.”
Carla DuPuy (Health)
noted that its positions had varied little and stressed that
“we need to keep healthcare costs down for business.”
George Teague (Legal
Issues & Workplace Policies) highlighted NCCBI as a
driving force behind blocking an ergonomics standard in the
state, and also paid tribute to the late Alan Miles, a former
chair who died last Sept. 5. “His wit, wisdom and expertise
has been and will be sorely missed.”
Lucius Pullen (Taxation
& Fiscal Policy) noted the budget deficit and said
“we’re going to be like the college students at football
games, shouting ‘defense, defense, defense.’ ”
Marshall Henry (Transportation) said “it’s going to take
some creative, out-of-the-box funding” to meet the state’s
burgeoning transportation needs, which are approaching
“crisis condition.”
Sen.
Walter Dalton and Rep. Gene Rogers addressed the conference on
the state’s education outlook. Dalton noted advances in
technology and business. “As your expectations have
increased, so have the expectations of the public schools.”
He
added that the state should “concentrate on lower performing
schools — let’s not abandon them.”
Sen.
Wib Gulley and Rep. Nelson Cole then spoke on transportation
issues, citing data showing that North Carolina has the second
largest state-controlled roads system in the country, the
needs of which haven’t been addressed.
“We’ve
had a 200 percent increase in vehicle miles traveled since
1970,” Cole said, “but we’ve only had a 28 percent
increase in spending.”
Finally,
Basnight spoke of the increasing amount of illegal drugs that
students are bringing into schools and said an emphasis needs
to remain statewide on promoting business and industry to
better the family structure. “Without employers, we have no
employees,” he said. “A key to every family success is
with the job. It helps prepare the child that cannot prepare
himself.”
The
news wasn’t all gloom and doom. Praise was heaped on last
November’s passage of the $3.1 billion higher education
bonds package. State Treasurer Richard Moore said the first
wave of the bonds totaling $251 million will be sold March 8
($201 million for universities and $50 million for community
colleges). He added that the state’s total public debt is
one of the lowest in the nation at $30 billion, which is why
“we continue to enjoy a Triple-A bond rating.”
Barry
Buzby, executive director of the National Association of
Manufacturers in Washington, spoke highly of NCCBI and its
relationship with his organization, and also was upbeat about
Capitol Hill. “Overall, it’s been very positive,” he
said, adding that “a new Congress and new Administration
offers new opportunities.”
Lt.
Gov. Beverly Perdue gave the luncheon address. “The
priorities cannot change because of a lack of money,” she
said. “Economic development, education and healthcare are
our keys.”
Perdue noted that the
state’s business community continues to have the largest
impact on government, and said NCCBI’s involvement and
commitment is more important than ever. “We must remain
vigilant,” she said. “I believe we have to push the
envelope to keep North Carolina as the most desired place to
live in the United States."
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