Republicans are following through with a campaign promise to end a temporary penny increase in the sales tax and higher income tax bills for the top wage-earners set to expire this year, even if it means the perceived or actual elimination of more than 20,000 government jobs - which Democrats say will occur to make up for less revenue.
GOP officials say they've made spending cuts and consolidations that will put state government on better footing after years of overspending by Democrats while creating private-sector jobs because people and businesses can spend at least $1.3 billion that would have otherwise been collected next year.
"It's a right-sized budget," said House Majority Leader Paul Stam, R-Wake. "The people of this state will have another billion and a half dollars in their pocket."
Other budget portions reveal more about what's important to legislative Republicans. They're down on environmental regulators and up on road and bridge repairs. They want more user fees to pay for courts and ferries. They also want to keep closer tabs on Democratic Gov. Beverly Perdue, who will be begged by fellow Democrats and interest groups to issue the first budget veto in state history. The GOP-controlled Senate largely agrees with the House priorities.
"These kinds of cuts cause generational damage to the fabric of this state," Perdue told reporters as the House bill went through the budget-writing committee last week, adding the GOP plans could lead to "the largest layoff in state history."
House Minority Leader Joe Hackney, D-Orange, said the top Republican goal appears to be ending the temporary taxes no matter the outcome for students, the poor, and clean air and water. He said extending some or all of the taxes would ease the pain.
The cuts are "something that could be avoided, that should be avoided," Hackney said.
The Republican-penned budget proposal spends $600 million less than what Perdue offered to the Legislature in February and what the GOP says will be 6 percent to 7 percent less than what the state actually spends this fiscal year.
Accounting changes aside, spending in five spending categories comprising more than 90 percent of the budget is nearly $1.1 billion less than what Perdue proposed to help close a $2 billion-plus budget gap for next year. The GOP spends more than Perdue does on public retirement system contributions, the rainy-day reserve fund and building repairs.
Stam and Tillis say Republicans are committed to transparency by giving the public five days to review the budget documents online before the votes. The potential job losses are shrouded when the documents are given a quick look.
For example, the documents indicate the bill would actually increase the number of full-time public education positions by nearly 200. But they fail to identify what the Department of Public Instruction calls the potential loss of 12,000 positions in local districts caused by cuts to teacher assistants, custodians, assistant principals and other staff. That's because the state sends this money to districts but doesn't hire or fire these workers.
Republicans argue their budget won't result in this level of layoffs. They say local school leaders aren't obligated to spend the money for its allocated purposes and they're expected to shift it around to protect classroom instruction and services. Normal employment turnover also will lessen the losses, Stam said.
The budget also puts the Department of Environment and Natural Resources on notice by eliminating money for 200 jobs, nearly half of them in seven regional offices where environmental permitting is performed. More office cuts could be ahead in 2012.
The Clean Water Management Trust Fund, mandated by law to get $100 million annually, would receive only $10 million next year. Two dedicated funds designed to acquire natural areas and parks and recreation improvements would see money siphoned away to pay for routine government operations.
Republican lawmakers also would require the Legislature to sign off on expensive future federal rail grants awarded to the Department of Transportation before they can be spent. Budget-writers also would demand that they be consulted before Perdue creates permanent state positions the Legislature didn't authorize and takes emergency budget actions.
The GOP majority wants to make sure the governor remembers the Legislature is an equal branch of government, said Rep. Ric Killian, R-Mecklenburg, the author of the DOT rail grant requirement.
"You're seeing the effects of having two different parties control government," Killian said, adding his colleagues are realizing it is "appropriate for the General Assembly to weigh in on some of these things, rather than simply allow the governor to enact her policies."
