Smaller budgets, bigger problems

As the summer heat increases across the state, the real heat is on the North Carolina legislature to provide a comprehensive two-year spending plan, formally known as the state budget. North Carolina House and Senate lawmakers have failed to pass a full budget before the new fiscal year starts on July 1.  As a result, both the House and the Senate have introduced spending bills that provide funding for time-sensitive needs. House Bill 125 and Senate Bill 177 would fund critical state operations until lawmakers can agree on a full, comprehensive budget. Here’s what you need to know:

The House’s “mini” budget includes:

• Eliminating 20% of vacant positions across state government 
• Adding new positions at the State Board of Elections and the Office of State Auditor
• Cutting more than $15 million from inpatient psychiatric treatment at local community hospitals 

The Senate’s “mini” budget includes:

• Creating a government efficiency division in the state auditor’s office known as the Division of Accountability, Value and Efficiency, or DAVE
• $252 million for economic development incentives for JetZero’s aviation facility in Greensboro
• Adjustments in spending for public schools and universities based on changing enrollment numbers

A major component that is missing from both bills is the scheduled income tax cuts, which have been major points of contention for both the House and the Senate. Although temporary stopgap funding for major operations is likely to be approved, let’s not forget about measures that were cut or excluded from the overall budget, which have significant impacts on the Black community.

• Neither the House nor the Senate budget funds food banks for the Boys and Girls Clubs
• Neither budget has allocated funds for the Healthy Opportunities Pilot (HOP) program, which provides assistance with housing, food, transportation, and healthcare in rural communities.
• Both budgets eliminate the Office for Historically Underutilized Businesses (HUB), which supports Black- and minority-owned small businesses.
• Both budgets cut the Minority Male Mentoring program, which mentors minority male students at community colleges.
• The Senate budget underfunds Medicaid by $287 million, which is below the amount needed, according to the NC Department of Health and Human Services.

Legislators plan to take a recess for the Fourth of July holiday and may return to Raleigh for a few days each month to address pending bills. A comprehensive budget could come up for a vote at a later time.