Budget proposal has dual support

GOP, Democrats find common ground

The last time Senate Republicans joined their Democratic colleagues in supporting a state budget proposal, Bill Clinton was president and Sept. 11 held no national significance.

But Wednesday, for the first time since 2000, Republicans joined Democrats to tentatively approve a $20 billion budget proposal that would increase spending by 6 percent over the previous year and calls for a record $1.2 billion in borrowing that would not need voter approval.

"I find myself in the unusual position of speaking in favor of this budget," said Senate Minority Leader Phil Berger, a Rockingham County Republican. "There's a big difference in this budget as far as I'm concerned, and I'm going to urge people to vote for it."

There is a theme connecting Wednesday's vote with the 2000 budget, when a $14 billion spending plan passed unanimously in the Senate. It was the following year that Senate and House Democrats, who controlled both chambers as they do now, passed temporary tax increases on the sales tax and the income tax for high earners to balance the budget. Republicans opposed the increases and have fought them as Democrats extended them twice in the ensuing years.

Last year, lawmakers and Democratic Gov. Mike Easley took a half step toward removing them. But this year, Easley and House leaders have proposed keeping the remaining quarter-penny sales tax increase and quarter-percentage point income tax increase. Democratic leaders in the Senate opted not to go along, and that helped bring on the Republicans.

Berger said Republicans liked other proposals in the Senate budget, such as capping the state gas tax at 29.9 cents a gallon and measures to uncover Medicaid fraud and provide more accountability for nonprofits that get state funds.

Only two Republicans voted against the budget proposal: Eddie Goodall of Union County and Andrew Brock of Mocksville. Goodall said he did not like that the 272-page bill had only been made available the day before and that Republicans had little input into its contents.

Most of the criticism is coming from Easley and Democratic leaders in the House. They say it calls for too much borrowing for public universities, prisons and other facilities without first getting approval from the state's voters. Easley also said the Senate budget relies too much on one-time sources of revenue to pay for ongoing spending needs.

Easley and lawmakers have a month to hash out their differences and pass a budget before the start of the new fiscal year on July 1.