Details of the Senate's spending plan

May 25, 2011 

GENERAL GOVERNMENT

Domestic violence program

Senate: Cuts domestic violence program 15 percent, or $730,000

House: Meant to cut 5 percent, but was mistakenly not included in budget

Perdue: No cut

Auditor's office

Senate: Saves half the Performance Audit division, cutting $772,000

House: Eliminates division, cutting $1.5 million

Perdue: Tells Auditor's Office to cut six unspecified jobs, saving $784,000

 Revenue

Senate: Closes three regional offices to save $124,000

House: Closes one

Perdue: No closings

 Museums

Senate: Closes Museum of the Albemarle, saving $959,000, Museum of the Cape Fear, saving $520,000

House: Cuts $241,000 for the Cape Fear museum

Perdue: No cuts

Security

Senate: Creates a $3 million reserve for security upgrades at legislature

House: Not in budget

Perdue: Not in budget

Visitors parking in government lots

Senate: Increases $1 per hour, to raise $500,000

House: Not in budget

Perdue: Not in budget

HEALTH AND HUMAN SERVICES

Community Care of North Carolina

Senate: Directs it to save $83 million in Medicaid spending

House: Wants $90 million savings

Perdue: Not in budget

Medicare provider rates

Senate: Cuts 3 percent, except for doctors, to save $71.4 million

House: Cuts 2 percent for $46.4 million savings

Perdue: No broad cuts

Medicaid spending

Senate: Eliminates money for home IVs, to save $1.3 million, and for spending on over-the-counter drugs, to save $1.9 million

House: Not in budget

Perdue: Not in budget

Optional services

Senate: In the 2012-2013 fiscal year, eliminates optical services and supplies, podiatry, except for diabetics, chiropractic services, physical, occupational, speech and respiratory therapy, to save $51.5 million

House: Not in budget

Perdue: Not in budget

Children educational services

Senate: Dissolves the state Smart Start parent office, the N.C. Partnership for Children, and has the state Division of Child Development administer Smart Start, for administrative savings of $5 million

House: Keeps the partnership

Perdue: Keeps the partnership

Health and Wellness Trust Fund

Senate: Transfers $32.9 million from the fund to DHHS; $22.9 million will be used to continue its programs for one year while dissolving the trust fund office and board; $10 million will be used so Community Care does not have to save $90 million.

House: Dissolves the fund and transfers money, but does not guarantee its programs continue

Perdue: Preserves trust fund

Reserves

Senate: Creates a $328 million reserve in 2012-13 to fund a state employee performance pay plan. The reserve does not include money for across-the-board raises.

House: No reserve in budget

Perdue: No reserve

TRANSPORTATION

Toll Roads and Bridges

Senate: Eliminates funding and authorization for the $660 million Mid-Currituck Bridge to the Currituck Outer Banks and the $870 million Garden Parkway in Gaston and Mecklenburg counties; both expected to start construction next year.

House: No change for turnpike projects

Perdue: No change for turnpike projects

Ferry Tolls

Senate: Charges tolls on all four ferries that are free now, including Hatteras-Ocracoke. Raises rates enough to bring in an additional $2.5 million the first year, $5 million the second year.

House: Has ferry riders pay more than the 7 percent share of costs now recovered in tolls. Charges tolls on two river ferries that are free now, and raise rates on three tolled ferries enough to bring in an additional $5 million in toll collections the first year, $7.5 million the second year.

Perdue: No toll changes

Drivers' Education Classes

Senate: Keeps classes free

House: Cuts $8.7 million in state funding, lets schools charge students up to $75 for the class

Perdue: Keeps classes free

Light rail transit and commuter trains

Senate: No state funding for planned extension of Charlotte's light rail line to the UNC-Charlotte campus, or for Charlotte's proposed North Corridor commuter trains. Cuts $20.8 million a year.

House: No change

Perdue: No change

Federal rail improvement grants

Senate: Gives legislature power to veto federal railroad grants that would commit the state to more than $20 million in matching funds or in annual maintenance costs.

House: Veto power would cover grants with state commitment over $5 million.

Perdue: No legislative veto power over federal grants

TAXES

Tax rates

Senate: Cuts individual tax rates by 1/4 percent for the 2012 and 2013 tax years. Part of a tax-cut package estimated at $671 million.

House: No cuts

Perdue: No cuts

Sales tax

Perdue: Keeps 3/4 of the temporary 1-cent sales tax. Projected revenue: $826.6 million

Senate: Repeals temporary sales tax

House: Repeals temporary sales tax.

Corporate income tax

Perdue: Cuts the rate from 6.9 percent to 4.9 percent

Senate: No cut

House: No cut

Small business

Senate: Individual income tax deduction of $50,000 for net business income in tax years 2012 and 2013

House: Not in budget

Perdue: Not in budget

Severance wages

Senate: Eliminates tax deduction for severance wages due to layoff (now up to $35,000 is deductible). The deduction cost the state $15.5 million in 2007.

House and Perdue: Keeps deduction

Perdue: Keeps deduction

Energy Star Tax holiday

Senate: Repeals the annual tax holiday on Energy Star products. That costs about $1.8 million a year.

House: Not included

Perdue: Not included

Wildlife Resources Commission sales tax

Senate and House: Repeals earmark of a portion of sales and use tax revenues for the Wildlife Resources Fund. Projected savings: $23 million.

Perdue: Not included

PUBLIC EDUCATION (K-12)

Teachers

Senate: Adds funding for 1,124 teachers to reduce student-teacher ratio to 1:17 in grades 1-3

House: Requires districts to make a discretionary cut of $42 million that could affect teachers

Perdue: No line item to reduce teaching

p style="font-weight: bold;"> Teacher assistants

Senate: No teacher assistant cuts, but local districts must find $124.2 million in savings.

House: Eliminates teacher assistants except in kindergarten and first grade

Perdue: Does not cut

Teaching support staff

Senate: Reduces funding for guidance counselors and media specialists by 5 percent

House: Reduces the category by 4 percent

Perdue: Reduces by 5 percent

Non-teaching staff (clerical, janitorial)

Senate: Reduces by 15 percent

House: Reduces by 15 percent

Perdue: Reduce clerical staff by 15 percent

Administrators

Senate: Cuts funding for assistant principals by 21 percent and central office administrators by 16 percent

House: Reduces assistant principal funding by 17 percent and central office staff by 10 percent

Perdue: Reduces school administrators by 7.5 percent and central office staff by 10 percent

Shift funding to locals

Senate: Shifts responsibility for school bus replacement to local districts in 2012-13

House: Pays for replacement school buses, but would cover only half for next year

Perdue: Shifts school bus replacement and worker's compensation claims to counties

Department of Public Instruction

Senate: Reduces the equivalent of 40 jobs in targeted departments of the state education agency.

House: Cuts $6 million

Perdue: Cuts by $4.4 million, about 10 percent

COMMUNITY COLLEGE SYSTEM

Colleges

Senate: Reduces funding by $53 million

House: Reduces funding $44 million

Perdue: Reduces funding by $32 million

Enrollment

Senate and House: Provide $34 million for enrollment growth

Perdue: Provides for 9,712 additional students in 2011-12 and 7,283 in 2012-13

Tuition

Senate and House: Increase tuition by $10 per credit hour in 2011-12, raising the tuition bill by a maximum of $320 a year, from $1,808 to $2,128

Perdue: Provides for tuition increases of $176 annually

Basic Skills

Senate and House: Cut funding for basic skills education by 12 percent.

Perdue: No cuts

System office

Senate and House: Eliminate 19 positions in the system office, including eight jobs that are filled

UNC SYSTEM

Enrollment growth

Senate and House: Provide $47 million for added students on the campuses

Perdue: Provides for 2,337 additional students in 2011-12 and 2,115 in 2012-13

Campuses

Senate: Reduces funding by $435 million

House: Reduces funding by $478 million

Perdue: Reduces funding by $253 million

UNC Hospitals

Senate: Reduces state subsidy by 43 percent

House: Eliminates subsidy

Perdue: Reduces subsidy by 25 percent

Center for Public Television

Senate and House: Cut next year's appropriation by 12 percent and provides no funding in the second year of the biennium; funding could be restored in 2012-13 pending the findings of a legislative review.

Perdue: No cuts

Grad students and merit scholarship

Senate: Does not cut tuition remission for graduate students; retains tuition waivers for out-of-state students on academic or special talent scholarships.

House: Cuts funding by 20 percent, or $9 million. Similarly, House proposes $8 million cut to tuition waivers for out-of-state students on academic or special talent scholarship.

Perdue: No cuts

ENVIRONMENT

Senate: Cuts 132.3 positions at DENR, abolishes Division of Environmental Health, transfers duties to other departments, transfers Division of Forest Resources to Department of Agriculture & Consumer Services, transfers Division of Soil and Water Conservation to Department of Agriculture & Consumer Services

House: Cuts 206.7 positions, abolishes Division of Environmental Health, transfers duties to other departments and transfers Division of Forest Resources to Department of Agriculture & Consumer Services

Perdue: Cuts 101 positions

Compiled by staff writers Lynn Bonner, Bruce Siceloff, Jane Stancill, Jim Morrill and Bruce Henderson.

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