By Mark Wineka
mwineka@salisburypost.com
Saying education does not have to be placed on the chopping block, State Rep. Fred Steen, R-Rowan, voted against an $18.6 billion state budget approved by the House early Saturday.
Steen added that the $784 million in proposed tax increases would affect everyone and have a negative effect on an economic recovery in North Carolina.
State Rep. Lorene Coates, D-Rowan, voted for the budget, whose third reading and passage in the House came at 12:11 a.m. Saturday.
The House vote went mostly along party lines, passing by a 64-53 margin.
Steen said increases in the corporate tax rate and sales tax, an expansion of the franchise tax to include property owned by limited liability corporations (LLCs) and a new tax on Internet downloads “are too broad and too high.”
“These taxes and fees will be nearly a billion dollars each over the next two years,” Steen said. “… I encourage each citizen to invest the time to study the tax and fee increases that were voted on.”
Besides the tax increases, the House version of the budget proposes some $3 billion in cuts, with federal stimulus money off-setting $1.3 billion of that.
Among the cuts:
– The elimination of salaries for 3,400 to 6,000 public school teachers.
– Getting rid of an undetermined number of state government jobs ó some of them vacant now ó while remaining state employees would not receive pay raises and could see furloughs.
– Reductions of coverage for Medicaid patients and frozen or decreased payments to the doctors who treat them.
– The closing of several prisons.
– Funding decreases to group homes, early childhood programs and for financial aid.
Among the increases:
– A hike in the sales tax by a quarter-penny, making it 7 percent for most residents.
– The taxing of LLCs.
– An increase in two marginal income tax rates for wealthier residents.
– Additional taxes on liquor.
– The charging of sales tax on new things such as digital downloads of music or telephone ringtones; repairs and maintenance on cars; and courier services.
– Tuition costs at state universities.
While the media has warned of massive layoffs and cuts of teacher positions, Steen said, “the stories fail to mention the cuts are unnecessary and unlikely to be implemented.”
Steen said massive cuts in education are not needed to maintain spending levels that were in place in 2008-2009.
He argued that the state must resort to zero-based budgeting.
“Continuation budgets and spending that have been funded for decades in state government must be examined line item by line item,” Steen said.
“Education should not be placed on the chopping block, nor should the threat of placing it on the chopping block be acceptable.”
Steen said he thought a zero-based budgeting approach, while time-consuming, would still end up making education and health and human services funding a priority.
“I have been on the side,” Steen said, “that has argued against proposals in the budget that shift focuses away from critical education funding, particularly funding that affects the classroom ó teachers, students and related resources.
“I will continue to argue this position, but it is doubtful the final budget will demonstrate our commitment to education.”
The budget bill now goes to the Senate.
Steen said he has heard many educators and health-care providers express concerns about the state budget. He said he had tried to answer all the e-mails and telephone calls he had been receiving.
Steen also commended efforts by Rowan-Salisbury Schools to reduce the number of layoffs in its system.
Coates could not be reached for comment on the budget Sunday.