Press Releases and Newsletters
Video Gaming Interests (THE NEWS & OBSERVER)
Rep. Mike C. Stone led a closed-door committee meeting last week to give House Republicans the chance to hear from lobbyists and special interest on video gambling. Stone, a Sanford Republican, is himself connected to the video gambling industry: he owns a small grocery where customers can play a variety of sweepstakes games on four desktop computer terminals. The games mimic the spinning wheels of a slot machine. Until this weekend, customers could also take their chances on four video-poker-style stand-up machines that lined a wall near the canned vegetables.
Stone said he removed the video-poker-style machines Friday night after repeated phone calls from The News & Observer. State law currently prohibits “electronic machines and devices used for sweepstakes purposes” across North Carolina. A first offense is a misdemeanor, but repeated violations are felonies. Stone said in an interview Saturday that the machines at his O’Connell’s Supermarket on Main Street were OK because of the gaming industry’s interpretation of state law. “Everything we do is legal,” Stone said. But in the midst of the interview, he suddenly said that he was getting out of the business. “We’re going to be out of it,” he said. “We’re done.” He said he recently sold a sports bar that also had the gaming machines in it.
Many owners of video gaming machines and Internet sweepstakes cafes have kept their devices operating while the industry fights last year’s ban on two fronts: in the courts, and with legislators and Gov. Beverly Perdue. Perdue and lawmakers, looking for money to hold off deep budget cuts, are considering making video gambling legal or letting the state lottery run it. Gambling interests are trying to strike a deal and get permission to exist in exchange for more regulation and taxation. A recent Guilford County Superior Court ruling favored operators. But a Wake County ruling upheld the statewide ban. The state’s sheriffs oppose video gambling, though enforcement of the law has been rare while the issue is in the courts.
Stone said he favors letting small business owners like himself run video gambling and supports an outright ban on them before he’d want the state involved. “I’m a free market guy. … I’m not for letting the government go in and do the same thing they did with the lottery,” he said. Jane Pinsky, who heads the N.C. Coalition for Lobbying & Government Reform, said the public should be concerned about Stone’s business interests possibly mixing with his political role. “He shouldn’t be participating in this if he has that financial interest,” Pinsky said. She and others said this only adds to concerns about why the House Republicans held a closed-door meeting Thursday in which Stone, heeding the request of Rep. David Lewis, R-Harnett, ordered an N&O reporter to leave the room just as the first of a half-dozen pro-gambling lobbyists and special interests was about to speak. Stone denied the newspaper’s appeal to stay in the meeting.
Stone downplayed his role in the meeting and said the agenda was put together by the office of House Speaker Thom Tillis. Stone said he had nothing to do with the lineup of lobbyists: “It came from Tillis’ office.” He pointed out that advocates for and against gambling spoke out. “And just to be clear, I couldn’t comment as the chairman of that meeting. … All I did was walk in that room and have that meeting,” Stone said. “I didn’t run anything except the agenda.” Fifteen to 20 legislators attended the meeting, a combined session of three out of eight internal House Republican caucus policy committees: Budget, Jobs and Liberty. Tillis appointed Stone chairman of the Jobs policy committee. Stone also is vice chairman of the House Committee on Commerce and Job Development.(J. Andrew Curliss, THE NEWS & OBSERVER, 2/14/11).
Feb. 10th Weekly Update on General Assembly
This week the General Assembly put the finishing touches on SB13 Balanced Budget Act of 2011. The House gave final approval to the bill today which directs Governor Perdue to find $400 million in savings in this year’s budget and takes about $75 million from three economic development funds. The Governor objected to the economic development funds being included in the bill. The two questions on everyone’s lips now are whether the Governor will veto the bill and whether there are enough votes to override the veto.
Yesterday the Governor announced via YouTube that the State’s budget hole for next year is a billion dollars less thanks to better than expected revenues and lower than expected Medicaid and State Health Plan costs among other things. The hole is now anticipated to be $2.7 billion.
The Governor will deliver her State of the State address Monday night to the General Assembly and is expected to release her budget in the days following the address.
Today at the Joint Transportation Appropriations Subcommittee NCDOT Chief Operating Officer Jim Trogdon talked to the Committee members about the NCDOT efforts in strategic prioritization, the 5 and 10 year work plans, urban loop programming, and the Mobility Fund. Rep. Killian chaired the meeting and gave his strong support to the NCDOT for their efforts to apoliticize the project selection process. He encouraged the Department to share their ideas to downsize, privatize, and make their operations more efficient. On the Mobility Fund he asked that the Department consider projects that we are currently aware of rather than looking for new ones.
Rep. Rapp expressed his concern that the Committee is focused on highways and not other modal options as well and asked both the Department and Rep. Killian on how rail fits into the dialogue. Trogdon said that we don’t know all the answers yet and noted the work being done in the State with the Federal high speed rail effort. He expressed his belief that the process in place will allow for a balance among the different modes of transportation. Rep. Killian acknowledged the different perspectives of the committee members and encouraged debate on the issue as things progress.
Rep. McGrady noted the Department’s increased project delivery rate and inquired as to how that was done. Trogdon pointed to better and more realistic scheduling that is fiscally constrained. Trogdon acknowledged past pressure to schedule what they knew the Department did not have the resources to build.
Sen. Forrester asked about the State’s opportunities to receive more federal rail dollars. Trogdon noted the conflicts on the issue between the President and Congress and said the future looked uncertain.
Sen. Gunn encouraged the Department to bring forward any burdensome rules and regulations that impede the speed with which NCDOT can deliver projects. Trogdon said they were working to identify those issues now.
Rep. Steen complimented the Department’s prioritization process, but said that it was confusing to locally elected officials serving on MPOs. Rep. Steen also asked Trogdon how new offers of private dollars can be figured into the two and five year work plans. Trogdon will be getting back to the Committee on that and how local governments can partner to speed up the delivery process.
Members are expecting to hear back from the NCDOT and legislative staff on key road projects eligible for the Mobility Fund, and a spreadsheet of urban loop completed miles among other items.
The Senate unanimously passed SB9 Make Synthetic Cannabinoids Illegal today. It now goes to the House for consideration.
It was a tough week on the annexation front this week. I would encourage you to look for the Weekly League Legislative Bulletin which will have more on that issue including a call to “Bring 5” next week to Raleigh to speak with your representatives on annexation.
Thank you to Charlotte, Concord, Greensboro, Wilmington, andWinston Salem for sending us your legislative agendas. If your city has passed a legislative agenda please send it to us.
Member Mayors and City Managers, if you have not already done so, be sure to register for our upcoming 2011 Winter Meeting in Greensboro. Confirmed guest speakers include Governor Perdue, President Pro Temp Berger and U.S. Senator Hagan.
Synthetic Marijuana (THE ASSOCIATED PRESS)
The Senate has unanimously approved legislation outlawing herbal incense that simulates the effects of marijuana. The Senate voted 50-0 on Thursday to ban the synthetic compounds sold in gas stations, convenience stores and head shops under names including “Spice” and “K2.” The products mix herbs and spices that are then sprayed with a chemical compound similar to the psychoactive ingredient in marijuana. It is smoked from pipes or after rolling it in paper. The packets of synthetic marijuana sold in stores are usually less than half an ounce, and possession of that amount wouldn’t be punished. Possession of more than a half-ounce would become a misdemeanor. The measure now goes to the House.(THE ASSOCIATED PRESS, 2/10/11).
Open Records (THE ASSOCIATED PRESS)
Some legislators want to make public access to government records, documents and meetings part of the state constitution. A bill introduced Thursday by Rep. Stephen LaRoque, R-Lenoir, would allow voters to decide whether to enshrine current open-records laws in the constitution. Voters could decide in November 2012 if the measure is approved by the General Assembly. Republican Sen. Debbie Clary of Cleveland County is introducing the same bill next week. She says taxpayers have a right to know about what’s happening inside their government. The proposed constitutional amendment would say that every person has the right to inspect or copy any record connected to the official business of any public body or official.(THE ASSOCIATED PRESS, 2/10/11).
Spending Cuts (THE NEWS & OBSERVER)
House Republicans have approved and sent to Gov. Beverly Perdue’s desk a measure directing her to sweep $142 million from state accounts and giving her authority to cut another $400 million. However, the measure may not make it past the governor’s desk: she is signaling that she may veto it. Partisan debate on the bill over two days has centered on the state accounts that were seen by Democrats as helping to create jobs, including two economic incentives funds and the Golden LEAF Foundation account that gets money from the national tobacco settlement and is used for grants in counties. The measure won final approval in the House Thursday on a 66-51 party-line vote. Republicans fell short of reaching a 72-vote veto-proof majority.
Perdue did not comment immediately after votes Wednesday or Thursday. However, the governor’s staff has pointed to her most recent remarks on the issue, in which she said the legislation “attacks the capacity of the governor and the Secretary of Commerce to do the job of job creation.” “If you’re going to cut jobs money, what you are doing is cutting jobs for the people of North Carolina,” Perdue said in a recording of the remarks provided by her office. “I think that’s inexcusable.” Perdue said she was not consulted in advance and would not have agreed to it. “I would have said no,” Perdue said. “And I’m saying no now.”
Republicans say that the accounts are cash balances, and it’s simply time to make cuts as the state needs to close a projected budget gap of roughly $3 billion. “Some around here are saying it’s a jobs killer. It’s not,” said Rep. Tim Moore, R-Cleveland. “I don’t like anything coming out of this chamber that implies North Carolina isn’t serious about industrial recruitment. Because we are.” House Minority Leader Joe Hackney, D-Orange, said Perdue should have been consulted in the process and he urged the Republicans to slow down and consult with her more. “I’m not going to say it’s a jobs killer,” Hackney said, “But the message you are sending calls that into serious question … and the word is out, and we are not making it up.”(J. Andrew Curliss, THE NEWS & OBSERVER, 2/10/11).
Annexation (THE INSIDER)
A House committee has given its OK to two bills that would undo local annexations. Annexations in Lexington and Kinston would be repealed under the legislation approved by the House Government Committee on Thursday. The votes came after residents representing the annexed areas told committee members that the local decisions were unfair and arbitrary; local government officials responded that legislators were usurping their authority. Stewart Smith, whose home was taken in by the Kinston annexation, said the city had not applied costs to the new residents as they had done in previous annexations. “We’re getting jerked around,” Smith said. Will Barker, one of two Kinston City Council members to oppose the annexation in question, said he nevertheless disagreed with legislators undoing a legal annexation. “Annexation reform must occur, but it must occur universally,” Barker said. “What other lawfully locally-adopted ordinances might be selectively repealed in two years, 20 years, or 200 years?” But House supporters of the bill said they were giving voice to people who had none when the local decisions were made. “It is truly taxation without representation,” said Rep. Rayne Brown, R-Davidson. The bills will now go to the House Finance Committee for consideration. (THE INSIDER, 2/11/11 ).
Perdue: State deficit cut by $1B (WRAL)
Perdue: State deficit cut by $1B (WRAL)
2.9.11
Raleigh, N.C. — Gov. Beverly Perdue took to the Internet Wednesday to deliver some big budget news.
In a YouTube video, Perdue announced that the budget shortfall for the fiscal year that starts in July will be about $1 billion smaller than previously projected.
As recently as last month, economists said the state would likely bring in $3.7 billion less next year than it would need to spend — a budget gap of about 18 percent. Perdue said Wednesday that the projected shortfall has now been revised down to $2.7 billion.
“A billion dollars less is great news, but let me be very direct, we still have a very steep budget hole to overcome,” Perdue said in the video. “There will be many tough, hard budget choices made in the next few weeks.”
Perdue will deliver her annual State of the State address next Monday and is expected to unveil her budget proposal later in the week.
The governor said a combination of factors led to the improved budget picture. The state expects to bring in $700 million more than anticipated in sales, income and corporate taxes, which she attributed to job recruitment efforts.
Perdue spokesman Mark Johnson said another $250 million has come from cost savings in Medicaid and the State Health Plan. The last $50 million comes from what Johnson called a “hodgepodge” of savings in other areas.
Senate President Pro Tempore Phil Berger said in a statement that it’s too soon for Perdue to be crowing about the budget.
“We are pleased the economy is showing signs of life, but we are alarmed Gov. Perdue is declaring ‘mission accomplished’ before the real work is done,” said Berger, R-Rockingham.
House Speaker Thom Tillis said he’s “glad to hear that the revenues are up. We anticipated some of that. But we still have a very deep hole to fill.”
The new revenue numbers were sent to lawmakers just minutes before the House debated a proposal to cut economic development funds against the Governor’s wishes. But Tillis doesn’t think the timing is suspect.
“I’ll take it at face value,” Tillis said. “Things are moving quickly. But we still shouldn’t feel good about the fact that we still have a 2.7 billion dollar deficit. And that’s what we have continue to be disciplined and focus on.”
Perdue’s press secretary Chris Mackey said the video was filmed in Perdue’s office at the old Capitol. Mackey said the announcement was made online because the Governor “wanted to share it across the state ‘in person’ as much as possible.”
Reporter: Laura Leslie
Web Editor: Matthew Burns
Joint Transportation Appropriations Meeting 2.9.11
Joint Transportation Appropriations Meeting 2.9.11
Today the members of the Joint Transportation Appropriations Subcommittee heard a presentation by the Fiscal Research Division staff entitled, “Transportation Primer.” I would summarize the meeting by saying staff laid out many options for the Subcommittee to consider when thinking about how to be more effective and effective with our transportation dollars. Items laid on the table for consideration included expanding the role counties and cities play in maintaining roads, reducing or reshuffling the number or order of construction of the urban loops, reconsidering the list of projects to be built on the Intrastate System, raising the diesel fuel tax rate, capturing a user fee from more efficient vehicles, increased tolling, corporate sponsorships, expanded public private partnerships, eliminating the exemptions in the Highway Use Tax, indexing fees for inflation, reprogramming current funds for other purposes, eliminating transfers of transportation funds to other State agencies, privatizing DOT functions, changing highway divisions/split up highway divisions, and others.
After the presentation Rep. Rapp asked the Subcommittee leadership what their thoughts were on transferring secondary roads to the counties. The chairs indicated they had not discussed the issue yet but it would be a topic for consideration in the long term.
The Subcommittee will continue with presentations by agencies through next week and I will continue to update you daily. Please let me know if you have any questions.
Julie
Electric-car owners might face $100 state fee (The Seattle Times)
Electric-car owners not only don’t buy gasoline, they also don’t pay gas taxes. A bill introduced in the state Senate would try to get back some of that money for the state by charging electric-car owners an annual $100 fee.
A bill in the Legislature would require owners of cars like this Nissan Leaf to pay a $100 fee annually.
OLYMPIA — Electric-car owners not only don’t buy gasoline, they also don’t pay gas taxes.
A bill introduced in the state Senate would try to get back some of that money for the state.
Under the legislation, electric-car owners would pay a special $100 fee each year when registering their vehicles.
It’s a matter of fairness, said Senate Transportation Committee Chairwoman Mary Margaret Haugen, D–Camano Island.
“Electric cars will be driving on the highways right along with all the other cars. One of our biggest issues is preservation and maintenance of our existing highways. We believe they should be paying their fair share,” Haugen, the lead sponsor, said Monday.
Senate Bill 5251 would require electric-car owners to pay the $100 fee, in addition to any other required fees and taxes, when the vehicle is first registered, and when the registration is renewed.
In comparison, the Washington Department of Transportation estimates someone who drives a gasoline-powered car 12,000 miles per year pays an average $204 in state gas taxes. The state gas tax is 37.5 cents per gallon.
Anti-tax activist Tim Eyman said he doesn’t think Haugen’s bill proposes a fee at all.
“That’s a tax. It’s no fee,” he said.
Eyman contends the fee should be subject to an initiative he sponsored, I-1053, that requires a two-thirds vote in the House and Senate, or voter approval, to increase taxes. I-1053 was approved in November.
Haugen disagreed. “Eyman isn’t an attorney,” she said.
It’s not clear if the bill can make it out of the Senate if it passes Haugen’s committee, or how it would fare in the House.
A similar measure died in the Senate last year.
Rep. Judy Clibborn, D-Mercer Island, said she likes the idea.
“I definitely support it,” said Clibborn, chairwoman of the House Transportation Committee. “This isn’t a big fee. It’s enough to say they are doing their part.”
An analysis by the governor’s budget office projects the number of electric vehicles subject to the tax would increase from around 1,800 today to more than 8,900 by 2016.
Overall, there were 5.5 million private cars and trucks registered in Washington last year.
If the fee is approved, the governor’s budget office projects it would bring in around $400,000 in 2013 and $1.9 million by the 2015-17 state budget cycle. The governor’s proposed Department of Transportation budget for the next two years is $6.9 billion.
The bill is scheduled for a hearing Thursday in the Senate Transportation Committee.
Jeff Finn, the volunteer legislative-issues coordinator for the Seattle Electric Vehicle Association, said he opposes the bill. “I don’t believe it’s fair and equitable,” he said.
The association is leaning toward recommending a tax on electric cars that’s based on miles traveled, said Finn, adding that such a tax likely would be less expensive than Haugen’s proposal.
He noted electric cars typically travel fewer miles in a year than gas-powered vehicles and do less environmental damage.
Nissan, which sells the all-electric Leaf sedan in Washington, is neutral on the measure, said Katherine Zachary, a company spokeswoman.
She released a company statement that said, “Whenever new technology is being introduced, we’d like to see as few barriers to entry as possible. However, we recognize the need for all drivers to contribute to road-maintenance funds.
“We think this needs to be part of a larger conversation dealing with dwindling road funds, impacted by the variability of fuel economy in all types of vehicles,” the statement said.
Seattle Times Olympia bureau
Perdue ready to fight on schools and incentives (News and Observer)
Perdue ready to fight on schools and incentives (News and Observer)
As she prepares to deliver her State of the State Address and to release her budget, Democratic Gov. Bev Perdue appears to be girding for battle to protect education spending and public incentives for companies which bring jobs.
Speaking to the state AFL-CIO meeting at a downtown Raleigh hotel this morning, Perdue said Republican legislative efforts take funds for economic incentives was already creating concern among corporate executives looking at North Carolina.
“They want to be assured that North Carolina will honor its economic promises,” Perdue said. “This is not a good conversation…They have an ability to choose from five or six or or 20 states. This is hard to try to explain to them.”
Perdue is expected to deliver her State of the State address Monday night, and her budget proposal several days later.
Although she did not tip her hand, she said “I’m going to make tough decisions.”
She said she had been reading a lot of history lately, and thought about some of the difficult decisions made by Democratic governors such as Jim Hunt and Terry Sanford and Republican governors such as Jim Martin and Jim Holshouser.
“You don’t go backwards, when you need to go forward,” she said.
“Every decision that will take resources away from your child’s public school is a bad decision for North Carolina,” Perdue said. “Every decision that will take resources away from our ability to compete globally for jobs and industry is a bad decision.”
Among the politically difficult issues she has been considering is whether to propose the extension of the $1.3 billion temporary tax increase that is scheduled to expire June 30th and whether to have the state regulate the video gaming industry.
Submitted by robchristensen on 2011-02-08 10:17
Tags: Under the Dome | Beverly Perdue | economic incentives
