House plan for state spending takes shape

RALEIGH -- House leaders this morning began releasing substantial chunks of their proposed $20 billion budget for North Carolina next year, including their proposals for education, public health and public safety.

Their plan includes $11 billion in education spending that would fully fund enrollment growth at schools, community colleges and universities, lawmakers said. It includes $7 million in dropout prevention grants and boosts funds for an at-risk student program to $20 million. It also expands a grant program at the state's community colleges to $25 million, but tuition would increase by 6.3 percent, or a $2.50 increase per credit hour. Public universities would be expected to cut middle management positions by nearly $19 million, while need-based financial aid would grow by nearly $28 million.

The plan for spending on health and human services does not fully fund inflationary increases in Medicaid spending, which would save roughly $37 million. Lawmakers would provide $9.6 million in one-time money for the purchase and storage of roughly 670,000 treatment dosages of Tamiflu in case of an influenza pandemic, spend $4 million on an additional 80 school nurse positions and dedicate $8.4 million toward subsidizing child care for an additional 2,000 children.

Not addressed in the reports were salaries for state employees and teachers, and spending on capital projects. Also not known is the picture on taxes and fees, though House leaders have said they plan to extend temporary sales and income tax increases that are set to expire this year.

Today, lawmakers in various budget subcommittees will go over the spending plans and offer amendments. As in past years, they will not be allowed to move money from one area of spending to cover something unrelated, nor can they increase overall spending.

House leaders say they want to have a full budget bill in place by Monday so that it can be taken up by the full appropriations committee and the finance committee on Tuesday. That would put them on track for passing a budget by the end of next week. It would then go to the Senate for consideration.