Representative Carl Ford
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Sixth Week of the 2015 Long Session
This week, the sky finally held back and the General Assembly was able to hold its first full work week in some time. And it was quite a busy one. The House passed two major bills: the Gas Tax Stabilization Bill and the Incentives Program Expansion Bill. Both of these bills received quite a bit of debate throughout the committee process and on the House floor. On Wednesday, State Supreme Court Chief Justice Mark Martin delivered the State of the Judiciary in which he asked that the General Assembly appropriate an additional $30 million to the courts system to improve the State’s Justice System. Last, on Thursday the Governor released his budget proposal to the House, which will be reviewed over next few weeks in the House Appropriations Committee before the House releases its own budget proposal to the Senate.
The Governor’s Budget Review
Instead of my usual legislation update, this week I thought it would be best to review the Governor’s budget by highlighting its most significant impacts in key areas.
EDUCATION
Usually one of the more contentious areas of each budget, this proposal will allocate $235 million more than last year’s budget in Pre-K and K-12 education, totaling 54 percent of all General Fund spending for the year. This spending will bring teacher base pay up to $35,000 a year and provide funding for an additional 1,400 new teachers. An additional $70 million has been allocated for instructional resources, with which school districts will be granted flexibility to fund locally-determined needs.
MEDICAID
The second greatest investment of General Fund monies, the Governor’s budget proposal would commit more than $10.8 billion (24 percent) to the Department of Health and Human Services for 2015-16. This includes the $287 million additional funds estimated for growth in Medicaid enrollment and rising healthcare costs for 2015 and $460.6 million for 2016. It also reserves $175 million for the Medicaid Risk Reserve as a buffer against inevitable, unforeseen expenses. Medicaid is clearly a volatile State financial commitment in need of significant reforms.
ECONOMIC DEVELOPMENT
The Governor’s budget would provide $99 million and then $107 million over the next two years to State-sponsored business recruitment and retention investments. I would also spend an additional $25 million in the Innovation to Jobs programs, which targets new, young entrepreneurs and attracts venture capital. It would also provide $10 million for the film industry grant program, which the legislature created last year after the expiration of the film tax credit. Finally, the proposal would restore the Historic Preservation Tax Credit.
TRANSPORTATION
Finally, the Governor’s budget proposal would commit $4.8 billion to the State’s transportation system, including increased appropriations to the strategic investments plan and a $1.2 to $1.4 billion bond program to finance critical infrastructure and revitalize and streamline state building use.
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These proposals are not a product of House or Senate lawmakers, but reflect many of the same concerns held by both chambers. As I explained, the House will reveal its budget proposal in coming weeks, which will move through the Committee process before being submitted to the Senate for a similar process. In the coming weeks, I will update you on the budget process of the 152nd Session of the North Carolina House of Representatives.
God Bless,
Carl
Legislative Office: (919) 733-5881
District Office: (704) 305-3541
carl.ford@ncleg.net
