Fitzsimon File

As expected, the House elected Democrat Jim Black as Speaker and Republican Richard Morgan as Speaker Pro Tem Wednesday in the latest version of the power sharing arrangement between the two parties.

Black touched on a long list of topics in his acceptance speech and mentioned several times that lawmakers should not balance the budget on the backs of children and vulnerable citizens, an overdue reference to the under funded human services programs.

Senator Marc Basnight was re-elected President Pro Tem of the Senate for a seventh term.

House Speaker Jim Black says he is leaning toward supporting a temporary tax to raise money to pay for hurricane relief for Western North Carolina. Black said at a news conference today that he thought something could be done about that within the week.

The most likely scenario is an increase in the state sales tax, probably half a penny, for three months that would expire when the General Assembly is not in session so lawmakers would not have the option of keeping it place.

Black is not happy with Governor Mike Easley’s plan to use $90 million withheld from state agencies to pay for the relief, saying that money will then not be available for addressing the budget shortfall.

Also on taxes, Black seems to inclined not to let the two temporary taxes increased passed in 2001 expire this year. He said he wanted to end the taxes if the money was there, but told reporters that “it doesn’t appear to me that money is forthcoming.”

Senator Marc Basnight continues to talk about reducing the tax burden on small businesses, leading to speculation that he favors letting one of the temporary taxes expire, the income tax hike on the state’s richest taxpayers. Business groups are lobbying heavily to let the income tax increase end, saying that would help small businesses. The other tax set to expire is the half-cent increase in the state sales tax.

It also doesn’t look good for an overhaul of the state’s tax system. Black believes that many House members would resist voting for any tax increase, even as part of a tax-restructuring package that would also eliminate other taxes.

Black revealed little about how he would work with Speaker Pro Tem Richard Morgan this year, saying those details haven’t been worked out.

The lottery debate is already started. Rep. Bill Owen introduced a local option lottery Wednesday.

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