The Raleigh Report: May 23, 2006
Be sure to check out the related photos.
On Monday, May 8, legislators returned to Raleigh to begin the legislative short session. The first two weeks of session has been a whirlwind of activity. Returning legislators and staff were greeted with a budget surplus and a flurry of introduced bills. The Dell incentive appeal was denied and citizens rallied to ask for a decrease in North Carolina’s gas tax and raise awareness about the United States Navy’s plan to build an outlying landing strip in northeastern North Carolina.
North Carolina has a budget surplus of more than $2 billion. More specifically, the projected surplus for this fiscal year is about $1.3 billion. With no changes to the current budget, next year’s surplus would be another $1.1 billion. It is now the task of the North Carolina General Assembly to reconcile the budget passed last year with the current known surplus. Governor Easley’s response to North Carolina’s surplus was to propose the largest increase in North Carolina’s state budget in a decade.
In addition to his proposed increase in spending, Governor Easley has stated his desire to, effective October 1, lower North Carolina’s state sales tax from 4.5 percent to 4.25 percent. The governor also proposes a one-quarter percentage point tax reduction on telecommunications and satellite television, a tax exemption for professional motor racing teams, a state tax credit for adoptions, and a cap at 29.9 cents per gallon on North Carolina’s gas tax.
While North Carolina FreedomWorks/CSE applauds Governor Easley for considering the tax burden of our citizens, his proposed sales tax decrease falls far short of the benchmark we would like to see.
We also believe more consideration should be given for the burden North Carolinians face when pulling up to the gas pump. On May 9, FreedomWorks activists participated in a rally held to “Stop The Gas Tax Hike”. The North Carolina gas tax rate is currently almost twice that of our neighboring states:
North Carolina: 30.15 cents per gallon South Carolina: 16 cents per gallon Georgia: 7.5 cents per gallon Virginia: 17.5 cents per gallon
Governor Easley’s proposal includes money to again be removed from the Highway Trust Fund to be spent on non-transportation programs.
Legislative Action Alert: If you have not already done so, please telephone your legislators and ask that our state’s sales tax be reduced by more than the .25 the governor has proposed. Also, please state your concern about the price we pay at the pump. The direct number for the North Carolina General Assembly is: (919)733-4111.
North Carolina FreedomWorks/CSE remains firmly opposed to the United States Navy’s proposed Outlying Landing Field (OLF – Site C). On May 16, we were pleased to join the NO-OLF group from northeastern North Carolina in a rally to raise awareness of this important issue. I was honored to be asked to moderate the morning of speakers. For a full report on the rally, including a list of speakers and photographs, please visit our website at www.freedomworks.org.
Hundreds of pages of legislation of interest to FreedomWorks have already been introduced.
In response to the Kelo Decision, numerous bills attempting to restrict eminent domain have been introduced in both chambers. The proposals can be viewed on the General Assembly website at: www.ncga.state.nc.us. Go to the bill lookup section on the right side of the screen and refer to the following numbers: S1222, S1229, S1321, S1324, H1854, and H1855. H1885 is “a resolution expressing disagreement with the majority opinion of the United States Supreme Court decision in the recent eminent domain decision”. The other proposals attempt to restrict eminent domain through either legislation or state constitutional amendment.
A bill has been introduced in the House which would act to ensure that revenues from North Carolina’s state lottery “shall not supplant” and will be “spent for educational purposes only”. The bill number is H1893 and is sponsored by a bipartisan group: Representatives Faison, Coleman, Coates, Lewis, B. Allen, Brown, Dollar, Frye, Glazier, Goodwin, Grady, Gulley, Harrison, Hilton, Ed Jones, Lucas, McAllister, Preston, Starnes, Underhill, Vinson, and Wiley.
Legislative Action Alert: Please telephone your legislators and let them know that we are concerned about the Kelo Decision and we do support bills attempting to restrict eminent domain in North Carolina. We remain concerned about possible supplanting of lottery revenues and we do support bills attempting to ensure that those revenues are not supplanted. The direct number for the North Carolina General Assembly is (919)733-4111.
We continue to work for reform of our Telecom franchising system. A proposal which came through the Revenue Laws Committee now rests in the House Committee on Finance. The proposal represents a compromise between the cable and telecom industries but is still opposed by the League of Municipalities, the County Commissioners Association, and the NAACP. We will continue to monitor its progress closely as we work toward its passage. This week will represent the third day in as many weeks that a group of our activists will convene at the legislature to go door to door asking for CABLE CHOICE. It appears that the bill will be heard in committee on May 30. I will be there speaking on our behalf. If you would like to join me, please “come on down”!
Legislative Action Alert: This weekend, please telephone your representatives and ask for cable choice. Let them know that the proposal is scheduled to be heard in committee on Tuesday and we hope they will have the opportunity to support it on the floor of the House! The direct number for the North Carolina General Assembly is: (919)733-4111.
