Jun 20, 2008
North Carolina Legislative Update
The Senate has approved a budget plan that would provide modest pay raises for most state workers and teachers, decrease the transfer from the Highway Trust Fund to the General Fund, provide seed monies for road construction projects and borrow $672 million for construction projects without increasing taxes. The House rejected the Senateâ€™s proposed budget and both chambers appointed conferees which have already begun meeting to hammer out the differences in the chamberâ€™s budgets.
Highlights of the Senate Budget
- 3.4% greater than the current budget and $15 million more than the House proposal.
- Teachers and state employees would receive the same raise as the House plan, but the Senate also included a provision that would allow Governor Easley to further increase the raises should the economy improve.
- Approved $672 million ($122 million more than the House plan) in debt for construction with most going to university construction needs.
- Deleted the $50 million in tax breaks from the House budget, but Senate leaders plan to introduce these breaks as separate legislation.
- $188 million in seed money spread out over three years for the Triangle Expressway, Monroe Bypass, Mid-Currituck Bridge, and Garden Parkway.
- $50 million to the Rural Economic Development Center for grants to improve water and sewer systems
Please contact the McGuireWoods Consulting Raleigh team with any questions or comments.