Senate budget flunks in House

Democrats balk; negotiations next

State House Democrats on Monday night quickly dismissed an effort by their Republican colleagues to win approval of the Senate's $20 billion budget proposal.

Rep. Mickey Michaux, a Durham Democrat and chief budget writer, outmaneuvered Republicans by immediately calling for a vote to reject the Senate budget without debate. His motion succeeded, and then House members shot down the Senate budget by a 68 to 47 margin. House and Senate budget writers will now begin negotiations on a compromise spending plan, with the goal of having a budget in place by July 1, the start of the fiscal year.

House Republicans were seeking at least nine of their Democratic colleagues to support the Senate budget because they figured it was the best spending plan that would be put forward this session. The Senate budget had near unanimous support in that chamber because it drops two temporary taxes first enacted in 2001 and caps the gas tax at 29.9 cents per gallon.

But not only did Democrats stick together, three Republicans joined them: Cary Allred of Burlington, John Blust of Greensboro and Debbie Clary of Cherryville.

House Democrats said the Senate budget should be voted down because it borrows too much -- $1.2 billion for construction projects -- and lacks $100 million in Medicaid relief for counties. The budget proposals from the House and Gov. Mike Easley continue the temporary taxes for another two years, which would generate $300 million alone for the coming fiscal year.

Blust said he was troubled by the level of borrowing without voter approval in the Senate budget. He agreed with Republicans that it was better than the House spending plan but said that was "like saying John Edwards would be doing better by spending $300 on a haircut."

Edwards, a Democratic presidential candidate and former U.S. senator from North Carolina, recently acknowledged paying $400 each on two haircuts.

Even if House Republicans had been successful in gaining passage of the Senate budget, Easley was likely to veto it. He, too, said it borrowed too much money without voter approval and required too much money from one-time sources to cover recurring expenses.