This week, House lawmakers continued the difficult task of writing North Carolina’s budget for the coming fiscal year. In an attempt to shore up our state’s expected $4 billion shortfall, House members are considering a number of money-saving measures. It is challenging to decide where and how to save money, but these hard decisions are unavoidable if we are to meet our Constitutional duty to balance the budget in the face of a 20 percent drop in revenues.
Many important, effective and popular programs are going to be eliminated or severely cut back as we refine our budget over the next few weeks. At the same time, we may have to increase some fees.
These budget saving measures may be painful in the short term, but they are necessary if we are to protect programs and services that enable us to provide a quality education at all levels, meet the health needs of our most vulnerable persons, maintain and cultivate jobs, and keep us safe in our homes, neighborhoods and schools.
We are trying to spur the economy when we can and protect people’s investments in their homes. This week, we approved several bills that could help the state attract new investment and new building. I have included some information about those bills below.
I hope you will contact me if you have questions, or if I can be of service. Thank you as always for your support and your interest in our state.
Economy
_ The House approved a bill this week that may help North Carolina bring in a new company that would be required to invest $1 billion. The bill (SB 575) changes the way corporate income tax liability is calculated for multi-state taxpayers by considering only the company’s sales in the state when determining their tax bills. The existing formula also accounts for companies’ property holdings and payroll. The change applies only to companies that invest $1 billion or more over a nine-year period. No company in the state currently qualifies for the incentive. The proposal also requires companies to locate in one of the state's poorest counties, provide health insurance, meet a wage standard, and forego other state grants or tax breaks before they can qualify for the incentive.
_Counties and municipalities in North Carolina would be authorized to provide development incentives in exchange for reductions in energy consumption under a bill that passed the House this week (SB 52). More specifically, counties and municipalities would be able to grant incentives to a developer or builder if they agree to construct a new development or reconstruct an existing development in a way that significantly reduces energy consumption.
_The State Treasurer’s office would be given more flexibility to increase investment income and better manage risk under a bill that passed the House this week (SB 703). The bill would allow the treasurer to invest up to 5 percent of the state’s portfolio in commodities such as timber, real estate and treasury inflation protected securities, or TIPS. The bill does not allow investments in derivatives or other risky assets.
Notes
_On Wednesday, members of the House officially honored the 100th anniversary of the High Point Furniture Market and the memory of its founders (HJR 1538). On March 1, 1909, the first Southern Furniture Market opened in High Point to showcase the products of High Point and North Carolina furniture manufacturers. This first High Point Furniture Market was the culmination of efforts by regional furniture producers and High Point civic leaders, including J.J. Farris, Charles F. Long, and D. Ralph Parker.
_ Miss USA, Kristen Dalton, visited Raleigh this week to address members of the General Assembly. The reigning beauty queen is from Wilmington, and is a student at East Carolina University.
Please remember that you can listen to each day’s session, committee meetings and press conferences on the General Assembly’s website at www.ncleg.net. Once on the site, select "audio," and then make your selection – House Chamber, Senate Chamber, Appropriations Committee Room or Press Conference Room.
Prepared with the assistance of the Speaker’s Office of Communications
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Regular Reports On What Is Happening In the NC General Assembly of Interest to citizens in District 51 by Representative Jimmy Love
