By Dan Kane, Staff Writer
The state Senate tentatively adopted a $21.4 billion budget proposal today that does not increase taxes, provides modest pay raises for most state workers and teachers, and borrows $672 million for construction projects.
The vote was 33 to 16. Senate Democrats who control the chamber closed off debate on the budget bill before Republicans commented on the spending plan.
Senate leaders said the budget proposal keeps the state moving forward with more money for education, crime prevention and job growth.
"I'm pleased with the investments we've made," said state Sen. Linda Garrou, a chief budget writer and a Winston-Salem Democrat.
The proposal is 3.4 percent greater than the current $20.7 billion budget and roughly $15 million more than the House's budget proposal.
The Senate budget raises the pay of teachers, community college instructors and UNC faculty by an average of three percent, while most other state workers get the greater of a 2.75 percent or $1,100 increase. Retirees' cost of living adjustment would be 2.2 percent. The House had the same increases, but the Senate included a provision giving Gov. Mike Easley the opportunity to further raise teacher pay if the economy improves over the next four months.
Easley has sought to increase teacher pay by an average of seven percent as part of a multi-year plan to bring their pay above the national average.
Some of the biggest differences between the House and the Senate involve the UNC system. As in past years, the Senate provides much more favorable treatment to the 16 UNC campuses, giving the system $20 million more to fully meet its enrollment growth expectations and erasing an $18.5 cut that the House and Easley proposed.
State Sen. Tom Apodaca, a Henderson County Republican, said he voted against the budget because it borrows too much and favors the UNC system over public schools. He said he was disappointed Senate Democrats cut off debate before he and other Republicans could weigh in on the spending plan.
"It looks to me like it's still the Cold War and we've copied the Russian system," Apodaca said.
The Senate also spends $122 million more on borrowing for capital projects than the House, much of which goes toward UNC system construction. Other UNC projects, such as $21.4 million for N.C. State University's engineering college expansion, would be paid for directly out of the Senate budget.
The House did more for public schools, providing four times the money — $45 million vs. $11 million — to cover rising fuel prices for school vehicles. The Senate boosted Gov. Mike Easley's More at Four pre-kindergarten program with $41 million for expansion, $18 million more than the House approved.
Not included in the Senate budget is a package of tax breaks expected to be roughly $50 million. Senate leaders have decided to run those tax breaks separately. They are different than those approved by House members in their budget proposal.
The Senate budget proposal will require a second vote in the chamber, set for Thursday. The likely next step is for negotiators from both chambers to hammer out a compromise. Leaders in both chambers say they are on track to have a budget in place by July 1, the start of the fiscal year.
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