Under the Dome: Why the NC auditor wants a major increase in staff
The North Carolina General Assembly’s budget season officially kicked off on Tuesday with a slew of briefings for House and Senate members. Nonpartisan staff from the Fiscal Research Division, which does all the behind-the-scenes work on the budget process, gave an overview about the process itself as well as drilling down into funding areas.
There will be more budget meetings on the legislature’s main business days — Tuesday, Wednesday and Thursday — for the next few weeks.
In April, the Senate is expected to release its budget bill proposal. Once the chamber passes it, the House will pass its own version before they negotiate a final budget bill, possibly by July.
The work between now and April will center on how much money to spend, and what agencies, programs and lawmakers are requesting of the General Assembly.
Good morning and welcome to the Under the Dome newsletter. I’m Dawn Baumgartner Vaughan, and today’s newsletter looks at a new poll, the latest bills and a big staffing request from the state auditor. Let’s get started.
STATE AUDITOR WANTS TO GROW OFFICE
State Auditor Dave Boliek, a Republican, wants to expand his agency by more than a third.
He made his initial pitch in a presentation to lawmakers about his office, which has 161 full-time positions. Now, he wants another 65 people.
Boliek said some of the extra employees would help staff his two new teams: investigations and rapid response.
He said the rapid response team would take on tasks that are requested on short notice, with staff who end up having to play “Whac-a-Mole and chase rabbits,” taking them away from audits already underway. Boliek also wants to upgrade technology and use data analytics and artificial intelligence.
The auditor’s office built a Helene recovery dashboard, which he hopes is the start of how the office is outward-facing and shares data with taxpayers along the way, instead of a report later.
Boliek said his campaign promise of auditing the Division of Motor Vehicles is “fully underway,’ with the first report expected within the next six weeks. He also said his agency will have an internal audit completed by an outside accounting firm.
Boliek said he’ll work with the new House Select Committee on Government Efficiency, formed this year to look for waste and mismanagement.
— Dawn Baumgartner Vaughan
‘FARMERS PROTECTION ACT’ TARGETS ESG IN BANKING
Republican lawmakers on Tuesday advanced a bill they say is meant to protect farmers from discrimination by banks seeking to implement climate change goals.
The bill, called “The Farmers Protection Act,” would prohibit banks from using commitments to environmental, social and governance goals (specifically their opposition to fossil fuel use) as the basis for denying service to farmers.
“Banks target nitrogen-based fertilizers, they push farmers to electrify their equipment and (to) reduce meat and dairy production to lower carbon emissions so they qualify for their financing,” Rep. Neal Jackson, of Moore County, one of the bill’s sponsors, said in a committee hearing. “...The goal of this bill is for the banks to put emphasis on a farmer’s credit score and not their social score or their carbon score.”
If passed, banks found in violation of the bill could face civil penalties of up to $10,000.
Rep. Pricey Harrison, a Guilford County Democrat, opposed the bill, which she said would treat banks as “guilty until proven innocent” when accused of denying loans for ESG reasons.
“I guess I’m enough of a capitalist that this bill bothers me,” she said. “... I prefer that the banks be able to establish their own standards within the law and it just is very bothersome to me that we are going down this road.”
A representative of banks raised concerns about the bill at Tuesday’s hearing.
Nathan Batts, counsel for the North Carolina Bankers Association, suggested that the bill’s definition of ESG may be too broad and could, as a hypothetical, prohibit banks from specifically trying to work with farmers in areas damaged by Hurricane Helene.
“That is, in my view, an ESG commitment there,” he said. “But I think we would all agree that that is a laudable goal. And so it really goes to the question of, ‘Is there a way to refine the legislation to meet the objectives that sponsors had intended?’”
Jackson said changes to the bill may come in future committee hearings.
— Kyle Ingram
POLL: AMERICANS EXPECT PRICES TO CLIMB
A national poll by Elon University revealed that Americans are bracing for higher prices, inflation and harm to small businesses from President Donald Trump’s economic policies.
The poll gauged Americans’ perspectives on the Trump administration’s economic and immigration policies and found stark divisions between Democrats and Republicans — 93% of Democrats anticipate prices increasing as a result of tariffs, compared to 69% of Republicans. Similarly, 74% of Democrats foresee a shortage of goods, compared to a mere 13% of Republicans.
Overall, outlooks on the economy remain poor. Eighty percent of Americans expect higher prices, 50% think tariffs will negatively impact small businesses, and 40% expect inflation to worsen.
Despite the newly founded Department of Government Efficiency, Americans are divided on whether government efficiency will improve — 39% say it will, while 33% say it will worsen.
When it comes to immigration, the poll found that 53% of Americans support mass deportation, with 89% of Republicans supporting the measure. Still, a majority of Americans predict labor shortages as a consequence of mass deportations.
In general, 45% of Americans approved of Trump’s leadership, while 41% disapproved.
— Caitlyn Yaede
PROPOSED ‘PLEDGE OF ALLEGIANCE’ SCHOOL REQUIREMENT MIMICS CURRENT LAW
A bill proposed in the House on Monday seeks to mandate the scheduled recitation of the Pledge of Allegiance in North Carolina public schools. This comes after the proposed Flags at Every School Act was filed in the Senate on Friday, which would mandate that the U.S. and North Carolina flags be displayed in every classroom.
But dedicating time for the Pledge of Allegiance — as well as the display of the American and state flags — has been required in public schools since 2006.
The latest pledge bill — sponsored by Republican Rep. Brian Biggs — mandates that schools schedule the recitation of the pledge in the first hour of the school day. By contrast, the 2006 law required recitation “on a daily basis,” but did not specify the time of day.
— Caitlyn Yaede
HOUSE REPUBLICANS PROPOSE INCREASING TEACHER PAY
A bill filed in the House on Tuesday would increase teacher pay and reinstate supplemental pay for teachers with advanced degrees.
Sponsored by Republican Reps. Erin Paré, Tricia Cotham, Donny Lambeth and Mike Schietzelt, the bill includes increases across the salary schedule for educators, with a starting salary of $50,000. House Bill 192 would also reinstate salary supplements for teachers with master’s degrees.
Additionally, the bill orders the North Carolina Collaboratory to research the feasibility of using average daily membership as a metric for funding schools
— Caitlyn Yaede
WHAT ELSE WE’RE WORKING ON
Former Rep. Madison Cawthorn owes $18,000 to the Federal Election Commission for what the commission says is a violation of campaign finance law, Danielle Battaglia reports. Cawthorn, whose scandal-ridden term in Congress began in 2021, relocated to Florida after losing his reelection bid. His campaign committee failed to file a quarterly report on time in July 2022 and currently holds a balance of negative $16,149. The FEC has been attempting to collect the penalty for six months and sent a final notice to Cawthorn on Feb. 4.
Former Rep. Dan Bishop faced questions about his allegiance to Trump and the law while testifying to the Senate Committee on Homeland Security and Governmental Affairs on Tuesday. The Waxhaw lawyer was nominated by President Donald Trump to serve as the deputy director of budget at the Office of Management and Budget. Bishop was asked if he would abide by the law or Trump, if the president told him to do something that violated the law. “I’m confident that President Trump will issue lawful orders,” Bishop responded. Danielle Battaglia has more.
Today’s newsletter was by Caitlyn Yaede, Dawn Baumgartner Vaughan and Kyle Ingram. Check your inbox tomorrow for more #ncpol.
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