The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Saturday, July 2, 1994                 TAG: 9407020595
SECTION: LOCAL                    PAGE: B4   EDITION: NORTH CAROLINA 
SOURCE: ASSOCIATED PRESS 
DATELINE: RALEIGH                            LENGTH: Long  :  117 lines

SESSION LIKELY TO END WITHOUT BUDGET HOUSE AND SENATE LEADERS PLAN TO BE BACK WITHIN WEEKS TO RESTART TALKS. LEGISLATORS STRUGGLE TO CLOSE SESSION

The Legislature appeared headed for adjournment late Friday night without a budget, but both House and Senate leaders said they will be back within a few weeks to start budget discussions again.

House Speaker Dan Blue, angered by a budget proposal from the Senate, said Gov. James B. Hunt and his cabinet, along with the House and Senate, had identified a long list of needs for the state ``and the governor certainly has the power to bring us back to do better.''

``Then, perhaps, when we come back, they (senators) will be more willing to do what is good for this state,'' Blue said.

Tom Rosshirt, Blue's spokesman, notified reporters that Blue would address the House at 9 p.m. ``and then we will adjourn.''

Blue reconvened the House about 9:20 p.m., announcing that he intended to ``adjourn shortly.'' He then began debate on a long list of bills waiting on House action.

Basnight, meanwhile, told senators that the Senate would adjourn for a few weeks and make another try at a budget.

``There are a couple of options to returning to Raleigh and I believe that it's important that we do so,'' Basnight said. ``I believe a period of rest is in order for all of us.

``I thank you for giving all that you had to try to reach a compromise tonight, but that was not to be,'' Basnight said. ``I hope after we finish our work tonight, you will have a wonderful Fourth, and we'll be back together - shortly.''

State government can continue to operate without the $1 billion in budget adjustments lawmakers have been debating for six weeks. But there will be no pay raises for state workers and teachers and no increased spending for state agencies or programs.

Legislative leaders stopped the clocks in the House and Senate chambers minutes before a 4 p.m. adjournment deadline.

The maneuver gave them eight more hours Friday night to try to work out differences over the state budget. But those negotiations broke down over deep disputes over how much money to spend and where to spend it.

Lawmakers set the adjournment date and time last July when they ended their six-month ``long'' session.

Legislative leaders imposed the adjournment deadline in another attempt to shorten legislative sessions, which have dragged on into mid-August in some years.

The Legislature, in recent times, has never passed a budget and adjourned by July 1, the first day of the new fiscal year.

Three years ago, lawmakers imposed earlier deadlines for the House and Senate to complete their budget recommendations. But those earlier budget deadlines have not helped speed adjournment.

The House and Senate appointed negotiators on the budget earlier this week, but most of the negotiating has been done between Blue, Basnight and the co-chairmen of the budget committees in both chambers.

There are at least two methods for calling the Legislature back for a special session. Hunt can call for a session after consulting with the Council of State, or legislative leaders themselves can call for a special session with the approval of 60 percent of the members in each chamber. ILLUSTRATION: ASSOCIATED PRESS

Rep. Vernon James pauses a moment in the last days of a General

Assembly panel meeting. James, a Democrat representing Pasquotank,

will be retiring after this session.

ABOUT THE BILLS

Senate Bill 1245 repeals the state intangibles tax on investments

and replaces it with a broader-based tax on interest earned by

savings accounts, certificates of deposit and stocks and bonds.

Senate Bill 1436 and House Bill 1540 sets a two-year moratorium

on the sale of commercial fishing licenses in North Carolina and

mandates a study of fish and shellfish management issues.

Senate Bill 1517 places tighter restrictions on the construction

of public wading pools to guard against accidents caused by pool

suction drains.

Senate Bill 906 completes the reform of worker's compensation

insurance begun in the 1993 session by reducing medical fees and

controlling the time period for workers to claim medical

compensation, among other reforms.

Source: N.C. House and Senate Roll Call Votes.

HOUSE VOTES

Here's at look at how Albemarle-area legislators voted on some of

the major issues affecting eastern North Carolina that came before

the 1994 General Assembly

Representative Workers Fisheries

comp reform license moratorium

William T. Culpepper III, D-Chowan

Yes Yes

Zeno L. Edwards Jr., R-Beaufort

Yes Yes

Howard J. Hunter Jr., D-N'hampton

Yes Not voting

Vernon G. James, D-Pasquotank

Yes Not voting

R. Eugene Rogers, D-Martin

Yes Yes

SENATE VOTES

Senator Fishing Intangibles Pool

license moratorium tax repeal safety

measures

Frank W. Ballance Jr., D-Warren

Yes No Yes

Marc Basnight, D-Dare

Yes Yes Yes

Beverly M. Perdue, D-Craven

Yes Yes Not voting

Ed N. Warren, D-Pitt

Yes Yes Yes

by CNB