Daily News

Differences left to hammer out

Wednesday, May 30th, 2007

By Chris Fitzsimon

Dan Kane, J. Andrew Curliss and Ryan Teague Beckwith, Staff Writers Major differences in budget proposals by Gov. Mike Easley, the state House and Senate leaders:

* TAXES: The House and Easley would extend temporary tax increases on sales and income taxes for another two years. The Senate lets them expire, which saves taxpayers $300 million in the first year alone.

* STATE PAY RAISES: The House would give most state employees a 4.25 percent raise, while the Senate is proposing a 4 percent increase. Both are more than the 2.5 percent raise proposed by Easley. All three agree on other pay raises: 5 percent (on average) for teachers, community college faculty and administrators, and judges; a 2 percent cost of living adjustment for retirees.

* COURTS: The Senate plan includes $37 million in new fees to pay for more court personnel and technology upgrades. Out-of-state lawyers, for example, would pay $100 more to practice in North Carolina courts. The fee for criminal defendants appearing in District and Superior courts would increase $10.

* MEDICAID: The House plan provides $100 million in one-time money to help counties pay for their share of Medicaid costs. The Senate only provides language saying legislators "intend" to find a solution to the issue by July 1. (more….)

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