THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, January 5, 1995 TAG: 9501050431
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY BETTY MITCHELL GRAY, STAFF WRITER
DATELINE: RALEIGH LENGTH: Medium: 76 lines
As their fellow Republicans were making history Wednesday with the opening of Congress, the state's new GOP legislative leaders gathered in Raleigh to promote their first priority for the upcoming session of the General Assembly - budget reform.
The Republican legislators propose limiting the growth of government spending and prohibiting additional, unfunded mandates on local governments.
The proposals are called the Taxpayer Protection Act.
Rep. Carolyn B. Russell of Wayne County, the top-ranking eastern North Carolina Republican in the House, sponsored the proposal. She said the Taxpayer Protection Act would be one of the first pieces of legislation introduced in the House when the legislature convenes Jan. 25.
``This bill puts parameters on the legislature,'' said Russell. ``This bill is going to cause us to work smarter.''
Russell was one of about a half-dozen new Republican legislative leaders and consultants who unveiled a general summary of the bill during a press conference at the legislative building in Raleigh.
One area legislator said eastern North Carolinians should welcome the reforms, even if they mean less money for local projects. But some legislative observers said the plan has hidden pitfalls that could spell trouble for the state's schools and for state employees who count on growth in state budgets to pay for higher salaries and other increased costs.
Meanwhile, one local county commissioner hailed provisions in the proposal that curtail unfunded mandates for local governments, which yearly pique county boards of commissioners and city councils across the state.
``That's what we've been trying to get for a long, long time,'' said Frank Bonner of Aurora, chairman of the Beaufort County Board of Commissioners. ``I love it.''
Generally, the Taxpayer Protection Act as outlined contains the following provisions:
Limit growth of state spending to the annual rate of inflation, with an adjustment for population increases.
Set an annual spending cap on state government and designate that all excess revenues be placed in an emergency fund until the fund equals 8 percent of the state's general fund budget. Caps do not include spending for federal programs such as Medicaid.
Require a two-thirds vote by legislators in both chambers to make appropriations beyond the spending cap.
Prohibit state government from mandating new programs for local governments without providing money to pay for those programs.
If approved, the Taxpayer Protection Act would become effective Jan. 1, 1996, and would first be used during the 1996 session, when state lawmakers put together their 1996-97 state budget, Russell said.
``The new Republican majority is committed to limiting government growth and to relieving the burdens on taxpayers,'' said Harold J. Brubaker, R-Randolph, the next House speaker. ``The Taxpayer Protection Act, together with specific tax cuts and real spending reductions, is a centerpiece of our covenant and fires the first shot.
Former Rep. Art Pope of Raleigh, a member of N.C. Taxpayers United, a Republican-backed interest group seeking budget reform, said that if the Taxpayer Protection Act is enacted, government spending over the next five years would rise at about 4 percent a year instead of 6 percent as projected without the legislation. If the legislation had been in place last session, state lawmakers would have spent about $600,000 less.
This would mean less money would be available for legislators' pet projects and lawmakers would have to make some hard choices about which programs to finance.
A spokesman for Senate leader Marc Basnight, D-Dare, said the lawmaker would respond to the Republican proposal after he and other Senate leaders have studied it. Basnight has helped bring millions of dollars to northeastern North Carolina for local projects, including expansion of the Elizabeth II State Historic Site in Manteo, a new Division of Marine Fisheries office and new staff members in Columbia.
'' by CNB