THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, July 8, 1994 TAG: 9407080850
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY STAFF AND WIRE REPORTS
DATELINE: RALEIGH LENGTH: Long : 119 lines
House and Senate budget negotiators remained at odds Thursday over many provisions in the two budgets, including several construction projects for northeastern North Carolina, according to House Speaker Daniel T. Blue.
``There are no agreements on the capital budget,'' Blue said Thursday in an interview from his legislative office in Raleigh.
Blue held a press conference by telephone Thursday morning with reporters from about 10 newspapers from across the state to brief them on the House budget and the latest proposals that were submitted to the Senate late Wednesday.
Meanwhile, Senate budget negotiators Thursday proposed that teachers get 7 percent salary increases with an additional 1 percent in merit pay, and state workers get 5 percent pay raises this year.
The offer to the House would change an earlier Senate proposal that state workers get a 4 percent raise with a 1 percent bonus. Instead of the bonus, which might not be repeated in future years, they would get a 5 percent permanent raise.
The proposal also keeps $28 million the Senate earmarked for eliminating the intangibles tax and $34 million in extra savings included in the Senate budget.
Senators also offered the House about $60 million in one-time funds it could use for construction projects, but about $78 million for such projects sought by the Senate would be retained.
The Senate offer includes no additional funding for the Basic Education Plan. The House had included $55.8 million in its budget plan for BEP projects ranging from additional textbook funds to reducing class sizes in kindergarten and 10th grade.
``The only way to discuss BEP is for them to find more recurring revenue,'' said Sen. George Daniel, co-chairman of the Senate negotiators. Recurring revenue is money that the state can depend on collecting year after year.
Senators have rejected House proposals to create additional funds by reducing the state contribution to the state retirement system and the employee health plan. Those two cutbacks would raise about $48 million in additional funds.
In making its counterproposal, the Senate also rejected a House offer that would have used about $28 million both sides had left unspent for extra savings. That $28 million in recurring revenues then could have been used in future years for tax relief, under the House proposal.
House negotiators had left for the evening, but were expected to take up the Senate proposal this morning.
The latest House budget proposal submitted to the Senate deletes most ``special projects'' - such as funding for the Partnership for the Sounds, the Museum of the Albemarle and partial funding for the Elizabeth II state historic site. Most of those projects were originally included in the Senate budget and were listed in a compromise budget submitted by the House to the Senate late last Friday. That budget was rejected by the Senate.
Budget talks fell apart last Friday night as the legislature churned toward a midnight deadline to adjourn. Both House and Senate leaders threatened to adjourn without a budget, but changed their minds at the last minute and extended their session.
On Tuesday, House negotiators notified the Senate that their earlier offers to settle were withdrawn.
``There were a lot of things in there - concessions by the House - that were rejected by the Senate,'' Blue said. ``And after we reviewed the budget, we decided that we probably shouldn't have made some of those concessions.''
On Wednesday, Senate leader Marc Basnight, D-Dare, said he hoped House negotiators would agree to fund those projects that have matching money and leave unresolved construction projects for future budgets.
Basnight said he hoped to receive House approval for such projects as an estuarine education center in Washington, which has received about $1 million in private donations and local government support, and the Graveyard of the Atlantic Museum on Hatteras Island, which has received a pledge of $800,000 in federal government appropriations.
Besides a group of local construction projects, the House and Senate are still at odds over education funds.
The Senate rejected Friday's proposal from the House to budget $7 million for poor school systems and $1.5 million for small school systems. But Blue said Wednesday's budget proposal contained more money for small school systems and a proposal to add Bertie County to those schools that would receive the supplement.
``Our approach is basically to be strong on education ... while the Senate looked at some of the traditional ways of doing things,'' Blue said. ``That's what the conflict basically is about.
``It gets testy sometimes,'' the House leader said. ``But the choice is funding special projects or reducing kindergarten class size.'' ILLUSTRATION: Graphic
ALBEMARLE-AREA CONSTRUCTION PROJECTS
Here's a look at some of the budget increases and construction
projects proposed for the Albemarle-area caught in the budget
stalemate and the latest proposals for funding each.
Small and poor school systems: The Senate budget contains no
money for the BEP and instead spends $7 million in supplemental
money for the state's poor school systems and $3 million for small
school systems. The latest House proposal calls for $7 million for
poor schools and $1.8 million for small schools, with Bertie County
added to the systems slated for small school funds.
Division of Marine Fisheries: The House allocates $1.1 million to
the division for biological, technical and law enforcement staff to
comply with the Atlantic States Marine Fisheries Commission
management plans. The Senate spends $1 million for a fishery
resource grant program, $233,441 to establish a satellite office in
Tyrrell County, $100,000 for a blue ribbon advisory council on
oysters and $200,000 for a fisheries data information system, among
other items. The latest Senate proposal would combine the two
budgets.
Elizabeth II state historic site: $10 million is included in the
Senate budget. The latest House proposal, to include $5 million for
the project, was rejected by the Senate.
Graveyard of the Atlantic Museum and Partnership for the Sounds:
The Senate budget includes $800,000 in matching money for the museum
and over $3 million for the Partnership for the Sounds. The Senate
rejected a House proposal Friday that called for full funding of
these projects. The latest Senate proposal calls for House approval
for these and other construction projects that have received
matching funds.
by CNB