Legislative Update
The 2009 Session of the General Assembly began at noon on Wednesday, January 28, with the election of leaders of the House and Senate the first order of business. House Speaker Joe Hackney (D-Orange) and Senate President Pro-Tempore were both reelected to the top positions in their chambers. Both chambers also adopted rules at the session on Wednesday, votes that sparked the first partisan spat of the session. Despite a celebratory atmosphere and the formality of the administration of oaths of offices, news coverage of opening day was dominated by the budget deficit and the Perdue administration's moves to cut agency funds. Aside from the State Budget, the first introductions of bills in the House and Senate initiated action on what will likely be some of the weightiest issues of the session.
As widely anticipated, Speaker Hackney will lead the House for a second session and Senator Marc Basnight will lead the Senate for a ninth session. Both Democrats were reelected without opposition from within their own party, which maintain solid majorities in each chamber. The economy and the state budget was the focus of their remarks on opening day. While Senator Basnight continues to propose new taxes on alcohol and cigarettes saying that the budget cannot be fixed by cutting alone, Speaker Hackney has adopted a more skeptical position on new taxes. House rules allow for Hackney to exert influence over legislation including the state budget, the power to appoint committees, preside over the daily sessions, and to run the administrative affairs of the House. In the Senate, Basnight holds similar duties except that newly elected Lt. Governor Walter Dalton (D-Rutherford) presides over the daily sessions, with Basnight assuming that duty when Lt. Governor Dalton is absent.
The rules of the House and the Senate were a source of contention between Democrats and Republicans on the very first day of session. In the House, Minority Leader Paul Stam (R-Wake) offered amendments that he said would require Democratic budget writers to allow Republicans to influence the State Budget. In the Senate, Minority Leader Phil Berger (R-Rockingham) focused on parliamentary procedures that he says have stifled debate in previous sessions. Republicans lost on both fronts as Democratic majorities rejected their changes. The struggle was largely symbolic and has little implication for policy results, because Democrats hold such large majorities in each chamber. Moreover, the rules adopted Wednesday are temporary, so Republicans may have another opportunity to seek changes they prefer. Also subject to change when permanent rules are adopted are deadlines for filing bills and the "crossover day," the day by which legislation must pass the chamber it was introduced in in order to be eligible for further action by the other chamber.
Like the foggy, rainy and cold weather in Raleigh on Wednesday the State Budget outlook put a damper on the usually more celebratory atmosphere of the opening day of session. Legislative analysts predict that revenue collections will total 10% less than what the State projected to spend during the fiscal year ending June 30th. If the recession continues or worsens, next year could be even worse. This means that lawmakers will be forced to cut spending, raise taxes or both, and lawmakers were asked to go on record about that very question in coverage by the Raleigh News and Observer. Few members identified specific programs that will be reduced, and the battle over raising taxes is clearly about to engage. Meanwhile, Governor Perdue is sending budget reduction orders back to agency heads with instructions to cut deeper, or find entire programs to eliminate in order to reach a mark of 7% reduction in the agency budgets. The message she sent seems to be that State Government agencies are being given one last chance to make cuts on their own, before she makes a recommended budget to the General Assembly that will cut their budgets for them.
Introduction of bills this week foretells of legislative fights to come. House Majority leader Hugh Holliman (D-Davidson) has again introduced legislation (House Bill 2) to ban smoking in public places and in places of employment. The bill, once unthinkable in our tobacco producing state, died on a narrow vote in the House last year, and will again be opposed by the tobacco manufactures of the State. In the Senate, Wilmington Senator Julia Boseman (D-New Hanover), has introduced legislation (Senate Bill 6) to stay increased rates, surcharges, and lower deductibles for property insurance covered by the "Beach Plan." The Beach Plan has been the subject of a legislative interim study that focused on the increasing liabilities of the plan, an exposure that far outstrips what the insurance plan could cover should a catastrophic hurricane hit North Carolina's coast. Other legislation introduced this week, would reallocate lottery funds (Senate Bill 2), allow hunting on Sunday (Senate Bill 7), and ban mobile phone use while driving (Senate Bill 12).
2009 Filing Deadlines
Deadlines established by the Temporary Rules adopted this week:
- House Bills must be filed by: April 1 (local bills) or April 8 (public bills with no fiscal impact) or May 6 (public bills with fiscal impact)
- Senate Bills must be filed by: March 11 (local bills) or March 13 (public bills)
- Crossover Deadline: May 14, 2009
