THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Monday, July 11, 1994 TAG: 9407110044
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: ASSOCIATED PRESS
DATELINE: RALEIGH LENGTH: Medium: 63 lines
State lawmakers have grappled longer than most expected over a compromise on adjustments to the state budget. But one item that appears destined to pass is a proposal to improve their own pension benefits.
Both the state House of Representatives and Senate are expected to agree on a final budget allowing lawmakers to count the $6,264 they now receive in expense money as part of their regular legislative salary.
Adding the expense money to their $13,026 salary would increase their effective salary come pension time by 48 percent.
``They decided to grant pensions to legislators long before I got here. I don't have any problem with it,'' said House Speaker Dan Blue, D-Wake.
As lawmakers scurried in recent weeks to wrap up negotiations on a rejiggered state budget, the House and Senate agreed to set aside $776,250 to cover the change in calculating pension benefits.
In addition, there is agreement on raising legislators' daily living expenses when they're in session to $104 per day, up from the current $92.
Because of better-than-projected tax collections and cuts in the state budget adopted in 1993, lawmakers ended up with an extra $1 billion to spend in this year's budget.
Legislative leaders decided not to meet a self-imposed July 1 deadline to craft a new budget, and it remains unclear when legislators will conclude their work.
Sen. Robert Shaw, R-Guilford, said the increase in pension benefits was one of many factors he considered when voting against the Senate's version of the state budget.
``You know when you're down there you're going to take a hit financially,'' Shaw said. ``That's public service.''
But across the nation, increasing pension benefits is becoming a common way for legislators to increase their pay.
``If there's any trend developing out there, that is one,'' said Mary Renstrom of the National Conference of State Legislatures.
Currently, 38 states offer either a mandatory or optional pension plan for their legislatures. Only legislatures in California, Illinois, Massachusetts, Michigan, New York, New Jersey, Ohio, Pennsylvania and Wisconsin are considered full time.
State Sen. George Daniel, D-Caswell, said the pension is a well-deserved benefit, given the time many of the lawmakers spend in Raleigh.
``You have to look at how you define part-time. When do your responsibilities end? When I leave here, I'm still a state senator,'' said Daniel, who co-chairs the Senate Appropriations Committee.
``If I'm not down here in committee meetings or on the floor of the Senate, then I'm back home earning a living and available to my constituents. Being down here is no money-maker. It's a service.''
Blue adds that including expense money as part of salary is only fair since lawmakers must now pay state, federal and Social Security taxes on that money.
KEYWORDS: PENSION NORTH CAROLINA GENERAL ASSEMBLY
by CNB