Civitas Capitol Connection July 2010

I f you thought this year’s state budget was tight – you ain’t seen nothin’ yet. State lawmakers were yet again unable to implement meaningful spending reform dur-ing the 2010 short session, much like the 2009-10 long session.

North Carolina will face, at minimum, a $2.8 billion deficit when the Gen-eral Assembly meets again in 2011. The cause – our elected leaders continue to spend at greater rates than what the state has available from its revenue sources. To fill the 2010-11 budget gap, lawmakers relied on more than $1.5 billion of non-recurring federal stimulus funds and $1.3 billion in temporary tax revenue. Without those two significant sources of funding, state budget writers will scramble to find funds to fill the alarming $2.8 billion revenue hole when they reconvene next year.

To make matters worse, a nationwide survey of economists project the economy to continue to be very sluggish well into 2011. Such realities suggest slow revenue growth (if any) for fiscal year 2011-12. More than likely, any revenue growth will fall well short of lost stimulus and temporary tax revenues.

Further deepening the expected budget hole for next year are exploding bur-dens of state employees. Estimates of the State Health Plan, the insurance provider for state teachers and employees, project an additional $200 million will be required in 2010-11 to keep up with rising health care costs. The state’s pension system for retired teachers and state workers will require an additional $450 million above this year’s ap-propriation in order to keep the system fully funded.

And the pension obligation may be even larger if the state is forced to rely on its contingency plan should the federal government not approve additional Medicaid funds to the state. The contingency plan calls for a $139 million reduction in this year’s pen-sion fund contribution, which would only enlarge the amount needed next year to keep the pension fully funded. And the pension obligation may be even larger if the state is forced to rely on its contingency plan – taking money from the state lottery, Disaster Relief and Rainy Day funds – should the federal government not approve additional Medicaid funds to the state.

CAPITOL CONNECTIONCivitasJuly 2010 • Special Budget Edition

• BY Brian Balfour

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Deficit to be Worse in 2011 • BY Brian Balfour

Forecast continued on pg 8

In the middle of the “Great Recession,” with a 10.3 percent unemployment rate, North Carolina lawmakers still increased the budget “more than half a

billion dollars.” The spending plan increases actual spend-

ing over the current fiscal year, adds 864 full-time positions to the state payroll, and raids lottery funds.

Total Spending Up Again, Safety Net Funds Not Yet Approved

North Carolina’s 2010-11 state budget includes appropriations totaling $18.96 bil-lion, but that doesn’t tell the whole story. The $18.96 billion does not count $1.04 billion in American Recovery and Reinvestment Act (ARRA) – the federal stimulus act – funds already embedded as cuts via last year’s two-year spending plan. That is money counted

as a “cut” in the state budget, but backfilled by federal dollars. The budget also includes another $561 million in Medicaid “cuts,” which merely shifts funding to the feds. The $561 million, however, is money that would come from “enhanced funds” from the federal government that have not yet been approved by the U.S. Congress.

In case these extra funds are not ap-proved, North Carolina budget writers in-cluded a contingency plan to make up the dif-ference. The “safety net” includes raiding trust funds such as the Disaster Relief Fund and

State Budget PassesSpending Grows as Unemployment Remains High

1State Budget Passes

Deficit to be Worse in 2011

2Jobs

Subscribe to Capitol Connection

3Small Change for Big Problems

4-5Statistics

5November Is Coming

6-7Legislative Directory

8From the Editor

Northern Wake Republican Club Fundraiser

the state’s Rainy Day Fund, raiding Lottery money supposed to be dedicated to educa-tion, a reduction in Medicaid provider rates, a reduction to the state employee pension system and a one percent across-the-board “management flexibility reduction.”

Especially troubling about the contin-gency plan is the reduction to the state’s pension system. Recent reports from the State Treasurer’s Office reveal that the pen-sion system is underfunded, and already requires an additional $650 million in state appropriations over the next two years to make it once again fully funded.

All told, total spending on state pro-grams including the federal funding comes to about $20.6 billion in the state budget.

Due to a revenue shortfall, the current 2009-10 budget year will likely see actual appropriations (including federal funds) of about $20 billion. Thus, this year’s budget marks an increase of about $600 million in year-over-year spending, or about 3 percent.

Finally, compared to 2008-09 actual appropriations of $19.65 billion, this year’s state budget will hike state spending over a two year period by nearly a billion dollars – roughly 4.8 percent – during the “greatest recession since the Great Depression.”

Public Education and Public Safety Cut the Deepest, Nearly Everything Else Increased

In a curious display of priorities, the 2010-11 state budget reduces funding for K-12 education and public safety, while expanding spending on all other state agen-cies but one.

The spending plan reduces funding for public education by more than $275 mil-lion – or roughly 3.7 percent – compared to the spending plan approved last year. A large share of this reduction, however, is not a spending reduction at all. The budget shifts an extra $121 million in state lottery funds to the pubic education budget to help finance teacher positions. Because the lottery money backfills funds the education budget would have otherwise needed to spend, it is counted as a budget cut.

Similarly, the state’s Justice and Public

INSIDE THIS ISSUE

Sen. AB Swindell (D-Nash) listens as Sen. Don Davis (D-Greene) makes his pitch on the Senate floor. Both senators voted for the budget that increased spending. With a projected $3 billion shortfall next year, North Carolinians can expect to see more tax increases in the future. Photo: Jana Benscoter

Sen. Clark Jenkins (D-Pitt) leans toward Sen. David Hoyle (D-Gaston)during the Senate’s session prior to the budget vote. Both senators, along with Sen. Dan Clodfelter (D-Mecklenburg), who is also pictured, voted in favor of the $20.6 billion state spending plan. Photo: Jana Benscoter

“The spending plan increases actual spending over the current fiscal year, adds 864 fulltime positions to the state payroll, and raids lottery funds.”

Passed continued on pg 3

2 July 2010 nccivitas.org

CAPITOL CONNECTIONCivitas

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Copyright 2010

CAPITOL CONNECTIONCivitas

State Government Adds Jobs while Private SectorEmployment Drops• BY Brian Balfour

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ADDRESS

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Please mail to:100 South Harrington Street, Raleigh, NC 27603

http://www.nccivitas.org/signup919-747-8052

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CIVITAS CAPITOL CONNECTION, your connection to the Raleigh beltline

without the traffic.

CAPITOL CONNECTIONCivitas

The number of state govern-ment employees in North Carolina has risen at a healthy

clip since 2001. At the same time, the private sector lost 50,000 jobs.

North Carolina state govern-ment added 34,824 full-time equiv-alent positions from 2001 through 2009, an increase of 12.3 percent, according to the North Carolina Employment Security Commission. Conversely, North Carolina’s private sector shed 49,900 jobs during the same time period, a workforce reduc-tion of 1.6 percent.

These employment trends mean that the number of private sector workers to each state employee has dropped from 11.4 to 10.

As state government absorbs a larger and larger share of the state’s labor market, North Carolina taxpay-ers should be concerned for a number of reasons:

• Growing government consumes more resources from the productive economy, meaning less productive investment for future job growth and income gains.

• A shrinking number of private sector workers supporting each state employee place a larger tax burden on the remaining private sector workers.

• A growing state workforce increases long-term budgetary obliga-tions such as salaries, benefits and pensions. The state budget already faces massive deficits, and its already unsustainable growth rate has been well documented.

The contrast between increasing state employees and declining private sector jobs underscores the continued growth of state government in North Carolina. More and more of this state’s resources – including labor – are being controlled by the State.

  December  2001   December  2009   Number  of  Jobs  

Added  (Lost)  %  Change  from  2001-­‐2009  

Private  Sector   3,217,300   3,167,400   (49,900)   -­‐1.6%  

State  Government   282,135   316,959   34,824   12.3%    

9.0

9.5

10.0

10.5

11.0

11.5

12.0

2001 2002 2003 2004 2005 2006 2007 2008 2009

Number of Private Sector Workers Per State Employee

Sources:  N.C.  Fiscal  Research  Division,  N.C.  Employment  Security  Commission

Matthew’s Rugs and Furniture on Capital Blvd. is among manyfactories and stores that have gone out of business during the economic downward spiral. The private sector has lost a net of 50,000 jobs since 2001. Photo by Jana Benscoter

Several North Carolina Department of Education employees hard at work at 3:30 p.m. in late June.Government jobs continue to climb while private jobs wane in growth.Photo by Jana Benscoter

At a time when private employers are laying off workers, is it wrong for

the number of governmentemployees to grow?

Not Sure 11%

Ethical 9 %

Not Sure 9% Agree 60%Disagree 31%

Civitas Poll June 2010

The rate of growth ofgovernment jobs should not exceed the rate of growth of private sector

jobs.

Not Sure 11%

Ethical 9 %

Not Sure 13% Agree 64%Disagree 23%

Civitas Poll June 2010

3July 2010nccivitas.org

CAPITOL CONNECTIONCivitas

IN FAVOR OF $20.6 BILLION 2010 SPENDING PLAN

Senate Republicans (2)Bingham Stevens

Senate Democrats (28)Albertson Atwater Basnight Berger, D Blue ClodfelterDannely Davis Dorsett Foriest Garrou GossGraham Hoyle Jenkins Jones Kinnaird McKissickNesbitt Purcell Queen Shaw Snow SolesStein Swindell Vaughan Walters

House Republicans (1)West

House Democrats (65)Adams Alexander, K Alexander, M Bell Bordsen BraxtonBrisson Bryant Carney Coates Cole Cotham

Crawford Earle England Faison Farmer-Butterfield Fisher

Floyd, E Gibson Gill Glazier Goforth GoodwinHackney Haire Hall Harrison Heagarty HillHolliman Hughes Insko Jackson Jeffus LoveLucas Luebke Martin May McLawhorn MichauxMobley Owens Parfitt Parmon Pierce RappRoss Spear Stewart Sutton Tarleton TolsonTucker Underhill Wainwright Warren, E Warren, R WeissWhilden Wilkins Williams Womble Wray

AGAINST $20.6 BILLION 2010 SPENDING PLAN

Senate Republicans (17)Allran Apodaca Berger, P Brock Brown BrunstetterClary East Forrester Goodall Hartsell HuntJacumin Preston Rouzer Rucho Tillman

Senate Democrats (0)

House Republicans (50)Avila Barnhart Blackwell Blackwood Blust BolesBrown Brubaker Burr Cleveland Current DaughtryDockham Dollar Folwell Frye Gillespie GradyGuice Gulley Hilton Holloway Howard HurleyIler Ingle Johnson Justice Justus KillianLangdon Lewis McComas McCormick McElraft McGeeMills Moore Neumann Randleman Rhyne SagerSamuelson Setzer Stam Starnes Steen StevensTillis Wiley

House Democrats (1)Jones

NOT VOTINGSenate (1) Blake (R)House (2) Brown (R) Mackey (D)

ABSENTSenate (4) Boseman (D) Dickson (D) Goodall (R) Shaw (D)House (2) Killian (R) Young (D)

Roll CallSenate #1399 House #1596For contact information, read pages 6 and 7

Included in the recently-passed 2010-11 state budget was a $34 million tax credit designed to

help North Carolina small busi-nesses create jobs. These tax credits, however, are highly unlikely to stimulate any actual job growth.

Budget writers decided on a tax credit scheme not considered in either the House or Senate budget proposals. What the final budget does offer is a temporary refundable credit amounting to 25 percent of a busi-ness’s unemployment insurance tax liability. The credit would be limited to businesses with annual revenue of less than $1 million, and expire at the end of 2011.

The small, temporary targeted tax break pales in comparison to the

Tax Credit for Small Businesses: Small Change for Big Problems• BY Brian Balfour $1.4 billion in new taxes being levied

on North Carolina’s economy this year, courtesy of last year’s budget bill. Indeed, the $34 million credit amounts to only about 2.5 percent of last year’s tax hike still burdening the state’s businesses.

Moreover, the temporary nature of the tax break renders it virtually meaningless in terms of job creation. Business owners and entrepreneurs typically make their hiring decisions based on longer-term projections of their staffing needs. Knowing that the tax credit will expire at the end of next year won’t inspire many employ-ers to make the significant commit-ment and investment required of hiring new workers.

A better alternative to foster job growth in North Carolina would

be to permanently lower tax rates on all businesses. North Carolina currently imposes the highest tax rates on the income of small businesses in the Southeast and among the highest in the nation. Such tax rates place North Carolina at a competitive disadvantage.

Disappointingly, North Carolina lawmakers failed to implement meaningful tax cuts that would generate sustainable job growth.

The state’s spending plan for next year will be around $20 billion,

including about $1.6 billion from the federal stimulus package. Some

say state legislators should refuse the federal money, and only spend

the same amount we spent in 2007. Others favor accepting the federal

money and therefore increasing North Carolina’s spending level.

Would you favor or oppose accepting the money and increasing spending?

Civitas Poll June 2010

Cutting taxes on small businesses and large corporations that operate in North Carolina create a business-friendlyenvironment that allows thesecompanies to stay here and create and maintain jobs in North Carolina.

Civitas Poll May 2010

Strongly Agree 50%Somewhat Agree 28%Somewhat Disagree 10%Strongly Disagree 9%Don’t Know 4%

Not Sure 15% Support 39%Oppose 46%

PassedSafety budget is reduced by 3 percent in the finalized spending plan.

Conversely, every other state agency’s budget – save one – is expanded for 2010-11. The agency with the largest such increase is Natural and Economic Resources, which expands by 11 percent, followed by a 4.4 percent increase for Health and Human Services (once federal funds are included). General Government is the only other agency decreased, and their reduction is a mere two-tenths of one percent.

New Budget Adds 864 Full-Time State Employees

In what would continue a long-term trend of growing state employment as private sector jobs contract, the 2010-11 state budget adds 864 full-time state posi-tions even as North Carolina suffers from double-digit unemployment.

Most of those positions would come in the form of staffing needs for a new women’s prison and a central prison hospital and mental health facility. The University of North Carolina University system would also add more than 280 new positions for maintenance and secu-

rity staff for additional buildings being put to use.

Raids Lottery Funds to Preserve 1,600 Teacher Jobs; Teachers and State Em-ployees Pay Frozen

The 2010-11 state budget raids $121 million of lottery proceeds to preserve a reported 1,600 teacher positions. The $121 million amount tracks closely to the State House’s proposal, but is nearly $90 million more than what the state Senate proposed. Meanwhile, Perdue didn’t in-clude any lottery funds being transferred for teacher salaries in her proposal.

Teacher and state employee salaries however will be frozen for the second straight year in the 2010-11 state budget. If the state needs to fall back on its contingency plan, however, furloughs or layoffs may be included as part of the management flexibility reduction.

Ineffective Attempt at Small Business Relief

Included in the budget is $34 mil-lion designated for a targeted tax credit intended to encourage job growth among North Carolina small business. The tem-porary refundable credit will amount to 25 percent of a business’s unemployment insurance liability. The credit would be limited to businesses with annual revenue of less than $1 million, and expire at the end of 2011. Such a small, targeted and temporary tax break is not likely to sway the hiring decisions of business owners.

Lawmakers Pile on More Unauthorized Debt

The State Treasurer’s most recent Debt Affordability study specifically warned that North Carolina state govern-ment has “substantially exhausted its General Fund debt capacity until FY 2012.” Moreover, the study strongly rec-ommends that the state no longer rely on “special indebtedness” instruments such as Certificates of Participation, which do not require voter approval.

In spite of these warnings, state budget writers authorized another $175 million of Certificates of Participation be issued to finance repair and renova-tions of state buildings and purchase equipment for the UNC and community college systems. In other words, the state is going against the advice of its Treasurer, and will again deny voters a voice over an increase in the state debt. North Carolina voters haven’t been allowed to vote on new state debt in a decade. w

CONTINUED FROM PG 1

4 July 2010 nccivitas.org

CAPITOL CONNECTIONCivitas

5  

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25  19

79  

1980

1981

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2007

2008

2009

North Carolina's Population vs. Real General Fund Budget Growth 1979-2009

Popula2on  (millions)   Real  Expenditures  (billions  $)  

Popula2on  (in  millions)  

Real  Expenditures  (billions  $)  

$320 $373

$419 $488

$648

$747 $739 $766 $768 $768

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

State Debt Per Capita, Fiscal Years 2000-2009

Source:  North  Carolina  Comprehensive  Annual  Financial  Report  for  2009  

The population of North Carolina grew by 61 percent over a 30-year period. In that same period, the state budget has more than tripled, even adjusting for inflation.

In less than 10 years, North Carolina’s per capita debt has more than doubled. The debt in 2009 was $768 per person, while in 2000, it was $320. None of this debt has been voter approved since 2000 despite the North Carolina constitution requiring a vote of the people

to issue debt. Source: North Carolina Comprehensive Annual Financial Report for 2009

As of this year, the state’s teacher and employee pension system is not fully funded. To fully fund the system going forward, taxpayer apropriations to the system will need to triple from the current year amount by 2013, and increase dramatically every year thereafter. Based on December 31, 2008 results with a COLA of 0% granted each year after 2009, annual market returns of 15% for 2009 and 7.25% for 2010 and

beyond, and a payroll growth rate of 3.75% after FY 2011.

$328  $364  

$684  

$972  

$1,168  

$1,315  

$1,420  $1,495  

$1,547  $1,583   $1,606   $1,623  

80.0%  

85.0%  

90.0%  

95.0%  

100.0%  

105.0%  

110.0%  

$0  

$200  

$400  

$600  

$800  

$1,000  

$1,200  

$1,400  

$1,600  

$1,800  

2009   2010   2011   2012   2013   2014   2015   2016   2017   2018   2019   2020  

Requ

ired G

eneral

Fund

Contr

ibutio

n in M

illion

s $

Fund

ed Ra

tios

Teachers' and State Employees' Retirement System of North Carolina Projection of Funded Ratios and Required Contribution Rates

Funded  Ra7o  from  Corresponding  Valua7on   FYE  Required  General  Fund  Contribu7on  ($  millions)  

Based  on  December  31,  2008  Results  with  a  COLA  of  0%  granted    each  year  aTer  2009,  annual  market  returns  of  15%    for  2009  and  7.25%  for  2010  and  beyond,  and  a  payroll  growth  rate  of  3.75%  aTer  FY  2011.  

Fiscal Year Ending

State Debt Per Capita 2000-2009

North Carolina’s Population vs. Real General Fund Budget Growth 1979-2009

Teachers’ and State Employees’ Retirement System of North Carolina Projection of Funded Ratios and Required Contribution Rate

5July 2010nccivitas.org

CAPITOL CONNECTIONCivitas

0  

10  

20  

30  

40  

50  

60  

70  

80  

90  

100  

 $-­‐        

 $1,000    

 $2,000    

 $3,000    

 $4,000    

 $5,000    

 $6,000    

1999-­‐00   2000-­‐01   2001-­‐02   2002-­‐03   2003-­‐04   2004-­‐05   2005-­‐06   2006-­‐07   2007-­‐08   2008-­‐09  

Percen

t  of  Schoo

ls  M

aking  Expe

cted

 Growth  

Per  Stud

ent  Supp

ort  in  Tho

usan

ds  of  Dollars    

Year    

State Expenditures Per Public School Student and Percentage of Schools Making Expected Growth on ABC Tests 1999-2009

State  Expenditures/Student     Schools  Making  Expected  Growth  

Source:  North  Carolina  Department  of  Public  InstrucOon    Since 2000, state support per pupil has increased 35 percent. However over the same period the percentage of schools making expected growth under the state’s ABC Testing Program has only averaged 36 percent per year. In no year has the percentage of schools making expected growth

exceeded 48 percent of all schools. Source: North Carolina Department of Public Instruction

To purchase 11”x17” full color copies of charts that appear in Civitas Connection, contact [email protected], or call (919) 834-2099

nccivitas.org

CAPITOL CONNECTIONCivitas6 July 2010

1 Camden, Currituck, Pasquotank, Tyrrell Bill Owens (D) Rm. 635, 300 N. Salisbury St. 919-733-0010 [email protected]

2 Chowan, Dare, Hyde, Washington Timothy L. Spear (D) Rm. 402, 300 N. Salisbury St. 919-715-3029 [email protected]

3 Craven, Pamlico Alice Graham Underhill (D) Rm. 1206, 16 West Jones St. 919-733-5853 [email protected]

4 Duplin, Onslow Russell E. Tucker (D) Rm. 416B, 300 N. Salisbury St. 919-715-3021 [email protected]

5 Bertie, Gates, Hertford, Perquimans Annie W. Mobley (D) Rm. 638, 300 N. Salisbury St. 919-733-5780 [email protected]

6 Beaufort, Pitt Arthur Williams (D) Rm. 637, 300 N. Salisbury St. 919-733-5906 [email protected]

7 Halifax, Nash Angela R. Bryant (D) Rm. 542, 300 N. Salisbury St. 919-733-5878 [email protected]

8 Martin, Pitt Edith D. Warren (D) Rm. 416A, 300 N. Salisbury St. 919-715-3023 [email protected]

9 Pitt Marian N. McLawhorn (D) Rm. 1217, 16 West Jones St. 919-733-5757 [email protected]

10 Greene, Lenoir, Wayne R. Van Braxton (D) Rm. 2219, 16 West Jones St. 919-715-3017 [email protected]

11 Wayne Efton M. Sager (R) Rm. 508, 300 N. Salisbury St. 919-733-5755 [email protected]

12 Craven, Lenoir William L. Wainwright (D) Rm. 301F, 300 N. Salisbury St. 919-733-5995 [email protected]

13 Carteret, Jones Pat McElraft (R) Rm. 603, 300 N. Salisbury St. 919-733-6275 [email protected]

14 Onslow George G. Cleveland (R) Rm. 504, 300 N. Salisbury St. 919-715-6707 [email protected]

15 Onslow W. Robert Grady (R) Rm. 302, 300 N. Salisbury St. 919-715-9644 [email protected]

16 New Hanover, Pender Carolyn H. Justice (R) Rm. 306A3, 300 N. Salisbury St. 919-715-9664 [email protected]

17 Brunswick Frank Iler (R) Rm. 306A2, 300 N. Salisbury St. 919-301-1450 [email protected]

18 New Hanover, Pender Sandra Spaulding Hughes (D) Rm. 537, 300 N. Salisbury St. 919-733-5754 [email protected]

19 New Hanover Daniel F. McComas (R) Rm. 506, 300 N. Salisbury St. 919-733-5786 [email protected]

20 Brunswick, Columbus Dewey L. Hill (D) Rm. 1309, 16 West Jones St. 919-733-5830 [email protected]

21 Sampson, Wayne Larry M. Bell (D) Rm. 538, 300 N. Salisbury St. 919-733-5863 [email protected]

22 Bladen, Cumberland William D. Brisson (D) Rm. 1325, 16 West Jones St. 919-733-5772 [email protected]

23 Edgecombe, Wilson Joe P. Tolson (D) Rm. 307B2, 300 N. Salisbury St. 919-715-3024 [email protected]

24 Edgecombe, Wilson Jean Farmer-Butterfield (D) Rm. 528, 300 N. Salisbury St. 919-733-5898 [email protected]

25 Nash Randy Stewart (D) Rm. 1219, 16 West Jones St. 919-733-5802 [email protected]

26 Johnston N. Leo Daughtry (R) Rm. 1013, 16 West Jones St. 919-733-5605 [email protected]

27 Northhampton, Vance, Warren Michael H. Wray (D) Rm. 405, 300 N. Salisbury St. 919-733-5662 [email protected]

28 Johnston, Sampson James H. Langdon, Jr. (R) Rm. 610, 300 N. Salisbury St. 919-733-5849 [email protected]

29 Durham Larry D. Hall (D) Rm. 417B, 300 N. Salisbury St. 919-733-5872 [email protected]

30 Durham Paul Luebke (D) Rm. 529, 300 N. Salisbury St. 919-733-7663 [email protected]

31 Durham Henry M. Michaux, Jr. (D) Rm. 1227, 16 West Jones St. 919-715-2528 [email protected]

32 Granville, Vance James W. Crawford, Jr. (D) Rm. 1326, 16 West Jones St. 919-733-5824 [email protected]

33 Wake Rosa U. Gill (D) Rm. 1305, 16 West Jones St. 919-733-5880 [email protected]

34 Wake Grier Martin (D) Rm. 2123, 16 West Jones St. 919-733-5758 [email protected]

35 Wake Jennifer Weiss (D) Rm. 532, 300 N. Salisbury St. 919-715-3010 [email protected]

36 Wake Nelson Dollar (R) Rm. 1209, 16 West Jones St. 919-715-0795 [email protected]

37 Wake Paul Stam (R) Rm. 613, 300 N. Salisbury St. 919-733-2962 [email protected]

38 Wake Deborah K. Ross (D) Rm. 2223, 16 West Jones St. 919-733-5773 [email protected]

39 Wake Darren G. Jackson (D) Rm. 301N, 300 N. Salisbury St. 919-733-5974 [email protected]

40 Wake Marilyn Avila (R) Rm. 1017, 16 West Jones St. 919-733-5530 [email protected]

41 Wake Chris Heagarty (D) Rm. 2121, 16 W. Jones [email protected]

42 Cumberland Marvin W. Lucas (D) Rm. 417A, 300 N. Salisbury St. 919-733-5775 [email protected]

43 Cumberland Elmer Floyd (D) Rm. 1311, 16 West Jones St. 919-733-5959 [email protected]

44 Cumberland Diane ParfittRm. 2221, 16 W. Jones Street919-733-9892

45 Cumberland Rick Glazier (D) Rm. 2215, 16 West Jones St. 919-733-5601 [email protected]

46 Hoke, Robeson, Scotland Douglas Y. Yongue (D) Rm. 2207, 16 West Jones St. 919-733-5821 [email protected]

47 Robeson Ronnie Sutton (D) Rm. 1321, 16 West Jones St. 919-715-0875 [email protected]

48 Hoke, Robeson, Scotland Garland E. Pierce (D) Rm. 301C, 300 N. Salisbury St. 919-733-5803 [email protected]

49 Franklin, Halifax, Nash John May (D)Rm. 536, 300 N. Salisbury [email protected]

50 Caswell, Orange Bill Faison (D) Rm. 611, 300 N. Salisbury St. 919-715-3019 [email protected]

51 Harnett, Lee Jimmy L. Love, Sr. (D) Rm. 305, 300 N. Salisbury St. 919-715-3026 [email protected]

52 Moore James L. Boles, Jr. (R) Rm. 501, 300 N. Salisbury St. 919-733-5903 [email protected]

53 Harnett David R. Lewis (R) Rm. 533, 300 N. Salisbury St. 919-715-3015 [email protected]

54 Chatham, Moore, Orange Joe Hackney (D) Rm. 2304, 16 West Jones St. 919-733-3451 [email protected]

55 Durham, Person W. A. (Winkie) Wilkins (D) Rm. 1301, 16 West Jones St. 919-715-0850 [email protected]

56 Orange Verla Insko (D) Rm. 307B1, 300 N. Salisbury St. 919-733-7208 [email protected]

57 Guilford Pricey Harrison (D) Rm. 2119, 16 West Jones St. 919-733-5771 [email protected]

58 Guilford Alma Adams (D) Rm. 304, 300 N. Salisbury St. 919-733-5902 [email protected]

59 Guilford Maggie Jeffus (D) Rm. 2204, 16 West Jones St. 919-733-5191 [email protected]

60 Guilford Earl Jones (D) Rm. 536, 300 N. Salisbury St. 919-733-5825 [email protected]

61 Guilford Laura I. Wiley (R) Rm. 513, 300 N. Salisbury St. 919-733-5877 [email protected]

62 Guilford John M. Blust (R) Rm. 1109, 16 West Jones St. 919-733-5781 [email protected]

63 Alamance Alice L. Bordsen (D) Rm. 530, 300 N. Salisbury St. 919-733-5820 [email protected]

64 Alamance Dan W. Ingle (R) Rm. 1019, 16 West Jones St. 919-733-5905 [email protected]

65 Rockingham Nelson Cole (D) Rm. 1218, 16 West Jones St. 919-733-5779 [email protected]

66 Montgomery, Richmond Melanie Wade Goodwin (D) Rm. 1307, 16 West Jones St. 919-733-5823 [email protected]

67 Montgomery, Stanly, Union Justin P. Burr (R) Rm. 1315, 16 West Jones St. 919-733-5908 [email protected]

68 Union Curtis Blackwood (R) Rm. 1317, 16 West Jones St. 919-733-2406 [email protected]

69 Anson, Union Pryor Gibson (D) Rm. 419A, 300 N. Salisbury St. 919-715-3007 [email protected]

70 Randolph Pat B. Hurley (R) Rm. 607, 300 N. Salisbury St. 919-733-5865 [email protected]

71 Forsyth Larry Womble (D) Rm. 534, 300 N. Salisbury St. 919-733-5777 [email protected]

72 Forsyth Earline W. Parmon (D) Rm. 541, 300 N. Salisbury St. 919-733-5829 [email protected]

73 Davidson, Forsyth Larry R. Brown (R) Rm. 609, 300 N. Salisbury St. 919-733-5607 [email protected]

74 Forsyth Dale R. Folwell (R) Rm. 306A1, 300 N. Salisbury St. 919-733-5787 [email protected]

75 Forsyth Wm. C. “Bill” McGee (R) Rm. 531, 300 N. Salisbury St. 919-733-5747 [email protected]

76 Rowan Fred F. Steen, II (R) Rm. 514, 300 N. Salisbury St. 919-733-5881 [email protected]

77 Rowan Lorene Coates (D) Rm. 633, 300 N. Salisbury St. 919-733-5784 [email protected]

How do i Contact My legislator?House

For additional infor-mation on finding your legislator by county or to see how they vote, please visit civitasaction.org

WHY WE GIVE PARTY AFFILIATIONS:The Legislature is

managed as a partisan

institution. Lawmakers

segregate themselves

by party in matters

from daily meetings

to electing leaders.

They have separate

and taxpayer-financed

staffs. As such, gaining

a full understanding of

the vote of an individ-

ual lawmaker requires

knowing his or her

partisan affiliation.

This legislative directory provides legislative phone number and legisla-tive address. Jones St. zip code is 27601. The Salisbury St. zip code is 27603.

7July 2010nccivitas.org

CAPITOL CONNECTIONCivitas

78 Randolph Harold J. Brubaker (R) Rm. 1229, 16 West Jones St. 919-715-4946 [email protected]

79 Davie, Iredell Julia C. Howard (R) Rm. 1106, 16 West Jones St. 919-733-5904 [email protected]

80 Davidson Jerry C. Dockham (R) Rm. 1213, 16 West Jones St. 919-715-2526 [email protected]

81 Davidson Hugh Holliman (D) Rm. 2301, 16 West Jones St. 919-715-0873 [email protected]

82 Cabarrus Jeff Barnhart (R) Rm. 608, 300 N. Salisbury St. 919-715-2009 [email protected]

83 Cabarrus Linda P. Johnson (R) Rm. 1006, 16 West Jones St. 919-733-5861 [email protected]

84 Avery, Caldwell, Mitchell, Yancey Phillip Frye (R) Rm. 602, 300 N. Salisbury St. 919-733-5661 [email protected]

85 Burke, McDowell Mitch Gillespie (R) Rm. 1008, 16 West Jones St. 919-733-5862 [email protected]

86 Burke Hugh Blackwell (R) Rm. 606, 300 N. Salisbury St. 919-733-5805 [email protected]

87 Caldwell Edgar V. Starnes (R) Rm. 503, 300 N. Salisbury St. 919-733-5931 [email protected]

88 Alexander, Catawba Ray Warren (D) Rm. 306C, 300 N. Salisbury St. 919-715-8361 [email protected]

89 Catawba, Iredell Mitchell S. Setzer (R) Rm. 1204, 16 West Jones St. 919-733-4948 [email protected]

90 Alleghany, Surry Sarah Stevens (R) Rm. 509, 300 N. Salisbury St. 919-715-1883 [email protected]

91 Rockingham, Stokes Bryan R. Holloway (R) Rm. 502, 300 N. Salisbury St. 919-733-5609 [email protected]

92 Iredell, Surry, Yadkin Darrell G. McCormick (R) Rm. 1211, 16 West Jones St. 919-733-5654 [email protected]

93 Ashe, Watauga Cullie M. Tarleton (D) Rm. 2221, 16 West Jones St. 919-733-7727 [email protected]

94 Wilkes Shirley B. Randleman (R) Rm. 1025, 16 West Jones St. 919-733-5935 [email protected]

95 Iredell Grey Mills (R) Rm. 1111, 16 West Jones St. 919-733-5741 [email protected]

96 Catawba Mark K. Hilton (R) Rm. 1021, 16 West Jones St. 919-733-5988 [email protected]

97 Lincoln Johnathan Rhyne, Jr. (R) Rm. 1323, 16 West Jones St. 919-733-5782 [email protected]

98 Mecklenburg Thom Tillis (R) Rm. 1002, 16 West Jones St. 919-733-5828 [email protected]

99 Mecklenburg Nick Mackey (D) Rm. 403, 300 N. Salisbury St. 919-733-5606 [email protected]

100 Mecklenburg Tricia Ann Cotham (D) Rm. 418C, 300 N. Salisbury St. 919-715-0706 [email protected]

101 Mecklenburg Beverly M. Earle (D) Rm. 634, 300 N. Salisbury St. 919-715-2530 [email protected]

102 Mecklenburg Becky Carney (D) Rm. 1221, 16 West Jones St. 919-733-5827 [email protected]

103 Mecklenburg Jim Gulley (R) Rm. 1313, 16 West Jones St. 919-733-5800 [email protected]

104 Mecklenburg Ruth Samuelson (R) Rm. 418B, 300 N. Salisbury St. 919-715-3009 [email protected]

105 Mecklenburg Ric Killian (R) Rm. 1010, 16 West Jones St. 919-733-5886 [email protected]

106 Mecklenburg Martha B. Alexander (D) Rm. 2208, 16 West Jones St. 919-733-5807 [email protected]

107 Mecklenburg Kelly M. Alexander, Jr. (D) Rm. 632, 300 N. Salisbury St. 919-733-5778 [email protected]

108 Gaston Wil Neumann (R) Rm. 510, 300 N. Salisbury St. 919-733-5868 [email protected]

109 Gaston William A. Current, Sr. (R) Rm. 418A, 300 N. Salisbury St. 919-733-5809 [email protected]

110 Cleveland, Gaston Pearl Burris-Floyd (R) Rm. 1319, 16 West Jones St. 919-715-2002 [email protected]

111 Cleveland Tim Moore (R) Rm. 604, 300 N. Salisbury St. 919-733-4838 [email protected]

112 Cleveland, Rutherford Bob England, M.D. (D) Rm. 303, 300 N. Salisbury St. 919-733-5749 [email protected]

113 Henderson, Polk, Transylvania W. David Guice (R) Rm. 1015, 16 West Jones St. 919-715-4466 [email protected]

114 Buncombe Susan C. Fisher (D) Rm. 420, 300 N. Salisbury St. 919-715-2013 [email protected]

115 Buncombe Bruce Goforth (D) Rm. 1220, 16 West Jones St. 919-733-5746 [email protected]

116 Buncombe Jane Whilden (D) Rm. 1303, 16 West Jones St. 919-715-3012 [email protected]

117 Henderson Carolyn K. Justus (R) Rm. 1023, 16 West Jones St. 919-733-5956 [email protected]

118 Haywood, Madison, Yancey Ray Rapp (D) Rm. 2213, 16 West Jones St. 919-733-5732 [email protected]

119 Haywood, Jackson, Macon, Swain R. Phillip Haire (D) Rm. 639, 300 N. Salisbury St. 919-715-3005 [email protected]

120 Cherokee, Clay, Graham, Macon Roger West (R) Rm. 1004, 16 West Jones St. 919-733-5859 [email protected]

Senate1 Beaufort, Camden, Currituck, Dare, Hyde, Pasquotank, Tyrrell, Washington Marc Basnight (D) Rm. 2007, 16 West Jones St. 919-733-6854 [email protected]

2 Carteret, Craven, Pamlico Jean R. Preston (R) Rm. 1121, 16 West Jones St. [email protected]

3 Edgecombe, Martin, Pitt S. Clark Jenkins (D) Rm. 308, 300 N. Salisbury St. 919-715-3040 [email protected]

4 Bertie, Chowan, Gates, Halifax, Hertford, Northampton, PerquimansW. Edward Jones (D) Rm. 623, 300 N. Salisbury St. 919-715-3032 [email protected]

5 Greene, Pitt, Wayne Donald Davis (D) Rm. 525, 300 N. Salisbury St. 919-733-5621 [email protected]

6 Jones, Onslow Harry Brown (R) Rm. 521, 300 N. Salisbury St. 919-715-3034 [email protected]

7 Franklin, Granville, Vance, Warren Doug Berger (D) Rm. 526, 300 N. Salisbury St. 919-715-8363 [email protected]

8 Brunswick, Columbus, Pender R. C. Soles, Jr. (D) Rm. 2022, 16 West Jones St. 919-733-5963 [email protected]

9 New Hanover Julia Boseman (D) Rm. 309, 300 N. Salisbury St. 919-715-2525 [email protected]

10 Duplin, Lenoir, Sampson Charles W. Albertson (D) Rm. 523, 300 N. Salisbury St. 919-733-5705 [email protected]

11 Nash, Wilson A. B. Swindell (D) Rm. 629, 300 N. Salisbury St. 919-715-3030 [email protected]

12 Johnston, Wayne David Rouzer (R) Rm. 520, 300 N. Salisbury St. [email protected]

13 Robeson, HokeMichael Walters (D) Rm. 2115, 300 N. Salisbury [email protected]

14 Wake Daniel T. Blue, Jr. (D) Rm. 314, 300 N. Salisbury St. 919-733-5752 [email protected]

15 Wake Neal Hunt (R) Rm. 1102, 16 West Jones St. 919-733-5850 [email protected]

16 Wake Joshua H. Stein (D) Rm. 410, 300 N. Salisbury St. [email protected]

17 Wake Richard Y. Stevens (R) Rm. 406, 300 N. Salisbury St. 919-733-5653 [email protected]

18Chatham, Durham, Lee Robert Atwater (D) Rm. 312, 300 N. Salisbury St.919-715-3036 [email protected]

19 Bladen, Cumberland Margaret Highsmith Dickson (D)Rm. 300C, 300 N. Salisbury [email protected]

20 Durham Floyd B. McKissick, Jr. (D) Rm. 621, 300 N. Salisbury St. 919-733-4599 [email protected]

21 Cumberland Larry Shaw (D) Rm. 311, 300 N. Salisbury St. 919-733-9349 [email protected]

22 Harnett, Moore Harris Blake (R) Rm. 517, 300 N. Salisbury St. 919-733-4809 [email protected]

23 Orange, Person Eleanor Kinnaird (D) Rm. 2115, 16 West Jones St. 919-733-5804 [email protected]

24 Alamance, Caswell Anthony E. Foriest (D) Rm. 411, 300 N. Salisbury St. 919-301-1446 [email protected]

25 Anson, Richmond, Scotland, Stanly William R. Purcell (D) Rm. 625, 300 N. Salisbury St. 919-733-5953 [email protected]

26 Guilford, Rockingham Philip Edward Berger (R) Rm. 1026, 16 West Jones St. 919-733-5708 [email protected]

27 Guilford Don Vaughan (D) Rm. 622, 300 N. Salisbury St. [email protected] 28 Guilford Katie G. Dorsett (D) Rm. 2106, 16 West Jones St. 919-715-3042 [email protected]

29 Montgomery, Randolph Jerry W. Tillman (R) Rm. 628, 300 N. Salisbury St. 919-733-5870 [email protected]

30 Alleghany, Stokes, Surry, Yadkin Don W. East (R) Rm. 1120, 16 West Jones St. 919-733-5743 [email protected]

31 Forsyth Peter S. Brunstetter (R) Rm. 522, 300 N. Salisbury St. 919-733-7850 [email protected]

32 Forsyth Linda Garrou (D) Rm. 627, 300 N. Salisbury St. 919-733-5620 [email protected]

33 Davidson, Guilford Stan Bingham (R) Rm. 2117, 16 West Jones St. 919-733-5665 [email protected]

34 Davie, Rowan Andrew C. Brock (R) Rm. 1119, 16 West Jones St. 919-715-0690 [email protected]

35 Mecklenburg, Union W. Edward Goodall, Jr. (R) Rm. 332, 300 N. Salisbury St. 919-733-7659 [email protected]

36 Cabarrus, Iredell Fletcher L. Hartsell, Jr. (R) Rm. 518, 300 N. Salisbury St. 919-733-7223 [email protected]

37 Mecklenburg Daniel G. Clodfelter (D) Rm. 408, 300 N. Salisbury St. 919-715-8331 [email protected]

38 Mecklenburg Charlie Smith Dannelly (D) Rm. 2010, 16 West Jones St. 919-733-5955 [email protected]

39 Mecklenburg Bob Rucho (R) Rm. 1118, 16 West Jones St. 919-733-5655 [email protected]

40 Mecklenburg Malcolm Graham (D) Rm. 620, 300 N. Salisbury St. 919-733-5650 [email protected]

41 Gaston, Iredell, Lincoln James Forrester (R) Rm. 1129, 16 West Jones St. 919-715-3050 [email protected]

42 Catawba, Iredell Austin M. Allran (R) Rm. 516, 300 N. Salisbury St. 919-733-5876 [email protected]

43 Gaston David W. Hoyle (D) Rm. 300-A, 300 N. Salisbury St. 919-733-5734 [email protected]

44 Burke, Caldwell Jimmy R. Jacumin (R) Rm. 1113, 16 West Jones St. 919-715-7823 [email protected]

45 Alexander, Ashe, Watauga, Wilkes Steve Goss (D) Rm. 1028, 16 West Jones St. 919-733-5742 [email protected]

46 Cleveland, Rutherford Debbie A. Clary (R) Rm. 515, 300 N. Salisbury St. 919-715-3038 [email protected]

47 Avery, Haywood, Madison, McDowell, Mitchell, Yancey Joe Sam Queen (D) Rm. 1117, 16 West Jones St. 919-733-3460 [email protected]

48 Buncombe, Henderson, Polk Tom M. Apodaca (R) Rm. 1127, 16 West Jones St. 919-733-5745 [email protected]

49 Buncombe Martin L. Nesbitt, Jr. (D) Rm. 300-B, 300 N. Salisbury St. 919-715-3001 [email protected]

50 Cherokee, Clay, Graham, Haywood, Jackson, Macon, Swain, Transylvania John J. Snow, Jr. (D) Rm. 2111, 16 West Jones St. 919-733-5875 [email protected]

This legislative directory provides legislative phone number and legisla-tive address. Jones St. zip code is 27601. The Salisbury St. zip code is 27603.

For additional infor-mation on finding your legislator by county or to see how they vote, please visit civitasaction.org

nccivitas.org

CAPITOL CONNECTIONCivitas8 July 2010

BY JANA BENSCOTER

F R O M T H E E D I T O R

Trying to stay out of the political graveyard, North Carolina lawmakers decided to keep the short session as short as possible by approving the $20.6 billion state spending plan on the last day of the 2010-11 fiscal

year. Not surprisingly, without any major tax increases like in 2009. Legislators haven’t had a budget balanced by the start of the fiscal year

since 2003. By law, legislators are supposed to have the plan in place July 1. Normally, state officials continue into the dog days of summer hammering out details fighting over whether or not to increase taxes, impose new fines and fees, create or cut jobs, or design new regulations among a gamut of items.

Unlike previous budget negotiations, current lawmakers are starting to feel the heat of the economic fire the general public has been experiencing. While public jobs are growing at a much faster clip than private jobs, North Carolina’s unemployment rate stands at 10.3 percent and ranks 14th highest in the country (Bureau of Labor Statistics). For 2011, our budget gap is projected to be at 30.5 percent of the budget, the highest in the Southeast. The current spending plan approved by both chambers on June 30, which includes federal dollars from the American Recovery and Reinvestment Act, is $20.6 billion.

Don’t let the numbers fool you. The page 1 article, “State Budget Passes: Spending Grows, as Unemployment Remains High,” breaks down where the money is going and how the budget gap was filled this year. While lawmakers say cuts are being implemented to balance the budget - genuine reform was again not enacted during this legislative session. The choices made this summer only delay the day of reckoning until the long session next year.

One would hope that this session wouldn’t be business as usual – working-toward self preservation and mid-term elections. However, nothing between-May 12, when the short session began, and mid July, when it ended, revealed otherwise. Now that the budget is finalized for the 2010 session, legislators can fully turn their attention to running their general election campaigns.

The state budget was not even finished when numerous elected repre-sentatives and state officials held a fundraiser at the Democratic Party Head-quarters on Hillsborough Street on June 29. Not only were elected officials in attendance, but also lobbyists. Clearly, it didn’t take too long before some of our leaders turned the attention right back on themselves, instead of thinking about taxpayers.

The budget for 2010-11 was passed the next day on June 30.In a June 2010 Civitas Poll, when respondents were asked: “when you

think about voting for a member of the State Legislature, what issue or prob-lem should be the highest priority,” the number one answer was economy and jobs at 34 percent. Behind it was improving public education at 15 percent, budget and spending at 13 percent, illegal immigration at 8 percent, reducing health care costs at 7 percent, holding down taxes and government corruption tied at 6 percent, moral issues at 5 percent and 3 percent said they were not sure or other.

Unfortunately for the citizens of North Carolina, the General Assembly will return home to campaign and have done little to address voters’ concerns on any of these issues. w

Secretary of State Elaine Marshall, Democratic candidate for US Senate, showed up at a fundraising event that was held at the N.C. Democratic Party headquarters on Hillsborough Street the day before the state bud-get was passed. Marshall told a newspaper reporter before entering she didn’t realize lobbyisis would be there for the event. Photo: Jana Benscoter

Campaigns looming whilelawmakers Pass 2010 Budget

Forecast CONTINUED FROM PG 1

Furthermore, North Carolina has already borrowed nearly $2.5 billion from the federal government to cover unemployment benefits and is on pace to borrow a total of $3.5 billion by the end of this calendar year.

While there is no re-payment plan yet in place for the principal of the loan, the state is expected to begin making interest payments in 2011 that could total $153 million.

Another consideration will be the increasing cost of health benefits being provided to state retirees. If recent growth trends continue, we should expect an additional $40 million in taxpayer money will be needed to pay for growing retiree health care costs next year.

Added together, the revenue hole and growing state employee and retiree benefits create a massive budget gap of roughly $3.5 billion for the 2010-11 state budget. And this doesn’t even factor in rising costs of Medicaid, education or transportation that will certainly continue to add on to the budget’s size.

While many state lawmakers may be patting themselves on the back because they managed to balance this year’s difficult budget, their short-sighted reliance on short-term revenue sources and failure to reign in massive spending obligations is setting the state up for an even deeper budget crisis next year.

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Florida22.2%

Georgia24.3%

Virginia8.2%

Alabama8.2%

Louisiana11.1%

Mississippi14.6%

Tennessee10.0% North Carolina

30.5%

South Carolina22.6%

Kentucky9.1%

West Virginia3.5%

Projected Budget Gap for 2010-11 State Budgets

Source: Center on Budget and Policy Priorities

Alabama 8.2%

Mississippi 14.6% Florida 22.2%

North Carolina 30.5%

Georgia 24.3%

South Carolina 22.6% Kentucky 9.1%

Tennessee 10.0%

Louisiana 11.1%

Virginia 8.2%

West Virginia 3.5%