Weekly Legislative Update
Overview
Lawmakers returned to Raleigh this week as the General Assembly continues to organize and prepare to conduct business during the 2009 session. This week brought changes in House Committees and appointments to House Committees that include key leadership positions in the House. In addition to appointing Committee leaders, the House Democrats met privately to elect Whips this week. Lawmakers from both chambers met jointly to continue review of the State budget. With passage of Stimulus Legislation imminent in the Congress, North Carolina leaders are taking stock of the local impact, and taking positions on other high profile State Budget issues. The week ended on a celebratory note as both chambers unanimously passed a joint resolution honoring the 100th anniversary of the founding of the National Association for the Advancement of Colored People (NAACP).
The week's most significant development was in the appointment of House Committees at session on Wednesday. In the ceremonial type session, House Speaker Joe Hackney (D-Orange) handed out gavels to the Chairs of the House Committees. In making those appointments, Speaker Hackney has retained last year's Chairs of the key budget writing committees, the House Finance Committee and the House Appropriations Committee. The Finance Committee will again be led by Reps. Paul Leubke (D-Durham), Pryor Gibson (D-Anson), William Wainwright (D-Craven), and Jennifer Weiss (D-Wake). The Appropriations Committee will again be led by Reps. Mickey Michaux (D-Durham), Alma Adams (D-Guilford), Martha Alexander (D-Mecklenburg), Jim Crawford (D-Granville), Phil Haire (D-Jackson), Maggie Jeffus (D-Guilford), Joe Tolson (D-Edgecombe), and Doug Younge (D-Scotland).
Other incumbent Chairs including those of the House Judiciary Committees, the Environment Committee, the Rules Committee, the Commerce Committee and the Transportation Committee retained their leadership posts. Several key positions were filled with new chairs including:
- Rep. Lorene Coates (D-Rowan) as Chair of Public Utilities
- Rep. Hugh Holliman (D-Davidson) as Chair of Financial Institutions
- Rep. Russell Tucker (D-Duplin) as Chair of Pensions and Retirement
- Rep. Ray Warren (D-Alexander) as Chair of Alcoholic Beverage Control
- Rep. Larry Hall (D-Durham) as Chair of the Homeland Security, Military, and Veterans Affairs
- Rep. Bruce Goforth (D-Buncombe) and Rep. Michael Wray (D-Northhampton) as co-Chairs of Insurance.
- Rep. Angela Bryant (D-Nash) as Chair of Energy and Energy Efficiency
The House also approved creation of new committees, eliminating, or reconfiguring some committees, and those committees also have new Chairs, including:
- Rep. Tim Spear (D-Washington) as Chair of Marine Resources and Aquaculture;
- Rep. Ty Harrell (D-Wake) as Chair of Science and Technology; and
- Rep. Winkie Wilkins (D-Person) as Chair of State Government and State Personnel.
Overall, Speaker Hackney achieved the goal of appointing all second term Democratic House members to preside over committees. Representative Julia Howard (R-Davie) was appointed to co-Chair the House Ethics Committee, the only Republican House member to receive a gavel this week. Traditionally, committee appointments change at times during the session and additional appointments could occur in the coming weeks or at any time during the session.
House Democrats met in a private caucus meeting to elect Majority Whips, positions that aids the Speaker and Majority Leader in counting votes and securing passage of key legislation. Representatives Larry Bell (D-Sampson), Jean Farmer-Butterfield (D-Wilson), and Deborah Ross (D-Wake) retained their positions as Majority Whips. Two new Whips were also elected in Representative Larry Hall (D-Durham) and Bruce Goforth (D-Buncombe). Although traditionally the function of Whips is to do cajoling and deal making on behalf of the leadership, the practical function varies from issue to issue and is dependant upon the preferences of the House Leadership.
Lawmakers met in joint briefing sessions this week to continue review of the State Budget. Tuesday's presentation by Fiscal Research Division staff focused on the key drivers of the growth in State Government spending. Using 2000-20001 as a benchmark, staff showed lawmakers that the State Budget has grown by more than $7 billion in the last eight years, an annualized rate of growth of 5.3%. Education and Medicaid are two of the largest items in the state budget, while Medicaid, Debt Service, and Natural and Economic Resources (NER) are the fastest growing. While Medicaid and Education spending is for the most part required spending by the state, Debt Service costs and spending on NER funding will be targets for cuts this year. Any cuts will be hard felt as recent increases in Debt Service have been incurred for borrowing that funds construction projects, while NER spending has gone toward key infrastructure including a statewide project for water and sewer services. Even with increased borrowing in recent years, North Carolina is among a prestigious set of States that maintain a AAA credit rating with the major credit agencies. The Wednesday meeting focused on higher education spending in the State Budget, where lawmakers received a presentation detailing the budgets of the University System and the State's Community Colleges.
The US Congress has passed Stimulus Legislation and legislative leaders and Governor Perdue's office are working to tally the take for North Carolina. House Speaker Joe Hackney who is currently the President of the National Conference of State Legislatures was been active in lobbying the Congress on the Legislation, as was Governor Perdue. News reports quote Speaker Hackney with favorable remarks on the legislation that initial estimates show could bring between $3 and $6 billion to North Carolina over the next two to three years. Not included in that figure is $900 million for local governments to build roads. A separate $900 million had been identified by Governor Perdue as necessary to fill the State's widening budget gap that could reach $2 billion or more by the end of the fiscal year. An important part of that gap is the shortfall in the State Health Plan. Late yesterday, House Majority Leader Hugh Holliman proposed a combination of premium increases for dependant members of the plan and a cash infusion of $250 million from the State rainy day fund. The premium increases would only affect dependants of Health Plan members and would be phased in over two years. A meeting scheduled for next week should bring more details.
Before leaving Raleigh on Thursday, the House and Senate unanimously approved a joint resolution (Senate Joint Resolution 162) commemorating the 100th Anniversary of the founding of the NAACP. The NAACP was recognized as the oldest civil rights organization in the nation as President of the North Carolina NAACP, Rev. Dr. William J. Barber II looked on from the House gallery. The NAACP has a storied history in North Carolina that included organizing civil rights marches, sit-ins, and legal actions. The significance of the anniversary was marked by speeches in the House and Senate recounting this history and noting the progress in race relations with North Carolina voting for Barack Obama in 2008 as the nation's first African-American President.
The articles published in this newsletter are intended only to provide general information on the subjects covered. The contents should not be construed as legal advice or a legal opinion. Readers should consult with legal counsel to obtain specific legal advice based on particular situations.