Paul Stam » Wasteful Spending

With bipartisan support, the House voted 73 – 46 to override the veto of Governor Bev Perdue. The House and Senate achieved this historic milestone on June 15, 2011.
This fulfills our first two promises to the people of North Carolina: A balanced budget and a budget that does not raise tax rates. Our budget contains the largest tax rate cut in the history of North Carolina. It makes our state more competitive with our neighbors again. It puts almost $1.5 billion back in to the hands of hard working North Carolinians. It is balanced. The business school at UNC Chapel Hill estimates that the Republican budget will create up to 14,900 new private sector jobs in North Carolina.

2. Protect Health Care Freedom Act

HB 2, protects North Carolinians from the “individual mandate” in the federal Patient Protection and Affordable Care Act (Obamacare), passed the House and Senate and was sent to the Governor. She Vetoed the bill. Republican leaders filed an Amicus Curiae (Friend of the Court) brief on May 11, 2011 to the 11^th Circuit Court of Appeals in Atlanta, Georgia. The Court of Appeals ruled 2-1 in favor of the states.

3. North Carolina is a Right-to-Work state. Republicans will continue to support laws that secure the right of employees to decide for themselves whether or not to join a union. We will stop any legislation that allows collective bargaining.

4. Reducing regulatory burden on small business.

Both House and Senate members have proposed legislation to limit the financial burden of regulation on businesses.

Senate Bill 22 – An act to limit new agency regulatory requirements that result in substantial additional costs. SB 22 passed both chambers and was signed into law by the Governor on March 25, 2011.
House Bill 162 – An act to exempt certain activities related to small-scale processing of agricultural products from wastewater permit requirements. The bill passed the House and Senate and was signed by the Governor on April 19, 2011.
House Bill 200 – The Appropriations Act of 2011 limits the Department of Environment and Natural Resources, Department of Labor and Department of Agriculture and Consumer Services from imposing standards or limitations that are more restrictive than the Federal government. The Act became law on June 15, 2011.
House Bill 542 – An act to provide tort reform for North Carolina citizens and businesses was signed by the Governor and became law on June 24, 2011.
House Bill 619 – An act to specify the Secretary of Revenue’s authority to adjust net income of a corporation or to require a corporation to file a combined return was signed by the Governor and became law on June 30, 2011.
House Bill 709 – An act to Protect and Put NC Back to Work by reforming the Workers’ Compensation Act passed the House and Senate and was signed by the Governor on June 24, 2011.
Senate Bill 781 – An act to increase regulatory efficiency in order to balance job creation and environmental protection was vetoed by the Governor. The House and Senate overrode the Governor’s veto on July 25, 2011 and the bill became law.

5. The balanced budget passed by the House and Senate fully funds the teachers in the classroom, not the bureaucracy.

6. Senate Bill 8 entitled, “No Cap on Number of Charter Schools” passed the House and Senate with bipartisan support and has been signed by the Governor. The bill became law on June 17, 2011.

7. HB 351, titled “Restore Confidence in Government” requires voters to provide photo ID before voting and allows more flexibility when applying for absentee ballots. HB 351 was ratified by the House and Senate but vetoed by the Governor on June 23, 2011. The House was unable to override the Governor’s veto but because of a parliamentary procedure it is eligible for reconsideration.

8. The House and Senate have each introduced bills proposing a Constitutional Amendment that will protect private property rights. House Bill 8 titled, “Eminent Domain” passed the full House on a vote of 98 to 18 and now moves to the Senate.

9. HB 139 entitled, “Limit Contributions by State Vendors” discourages pay-to-play politics in North Carolina. The bill seeks to limit the campaign contributions of state vendors to Council of State offices with which they hold contracts. HB 139 passed the House on May 24^th and has been sent to the Senate.

2011 Republican Legislative Accomplishments

Paul Stam, NC House Republican Leader — Mon, 15 Aug 2011 17:44:21 +0000

Notable Republican Bills Signed Into Law

House Bill 36 – An act to require counties, cities and employers to use the Federal E-Verify program to verify the work authorization of newly hired employees was signed by the Governor on June 23, 2011.

House Bill 92 – An act to repeal the land transfer tax was signed into law by the Governor on March 31, 2011.

House Bill 112 – An act to realign the Districts for Wake County Superior Court Judge seats to provide for single member districts and equal representation in those districts was signed into law by the Governor on June 23, 2011.

House Bill 542 – An act to provide tort reform for North Carolina citizens and businesses was signed into law by the Governor on June 24, 2011.

House Bill 588 – An act requiring local boards of education to teach a semester long course in high school entitled, “American History I – The Founding Principles.” The course will include a study on The Creator – endowed inalienable rights of the people, rule of law, equal justice under law, private property rights, federalism, due process, individual responsibility, etc. The Governor made this act law on June 23, 2011.

House Bill 596 – An act to require that proceeds of certain dispositions of state-owned real property be used in part to support the general fund, in part to support the teachers’ and state employees’ retirement system of North Carolina, and in part to support the agencies to which the property was allocated; and to appropriate funds for these purposes. The bill became law by the Governor’s hand on June 27, 2011.

House Bill 642 – The Justice Reinvestment Act was signed into law on June 23, 2011 by the Governor. The act is a major reform of the North Carolina Justice system.

House Bill 650 – An act to provide when a person may use defensive force and to amend various gun laws regarding the right to own, possess, or carry a firearm in North Carolina was signed into law by the Governor on June 23, 2011.

House Bill 762 – An act to protect landowner’s rights was signed into law by the Governor on June 23, 2011.

House Bill 927 – An act to make changes to the statutes governing the teachers’ and state employees’ retirement system and the consolidated judicial retirement system to ensure the future solvency of those systems was signed into law by the Governor on June 23, 2011.

House Bill 289 – An act to authorize the Department of Motor Vehicles to issue various special registration plates including North Carolina Zoological Society, ARTS NC, North Carolina State Flag and Donate Life was signed by the Governor and became law on June 30, 2011.

House Bill 619 – An act to specify the Secretary of Revenue’s authority to adjust net income of a corporation or to require a corporation to file a combined return was signed by the Governor and became law on June 30, 2011.

Notable Republican Bills That Became Law without the Governor’s Signature

House Bill 48 – An act to reduce spending by eliminating statewide standardized testing in the public schools, except as required by Federal law or as a condition of a Federal grant. The bill became law on March 21, 2011.

House Bill 119 – An act to amend certain environmental and natural resources laws was presented to the Governor on June 20, 2011 and became law without her signature on July 1, 2011.

House Bill 744 – The “Safe Schools Act” states that a principal of any public school may shall require the parent or guardian of any child presented for admission for the first time to that school to furnish (i) a certified copy of the child’s birth certificate, which shall be furnished by the register of deeds of the county having on file the record of the birth of the child, or other satisfactory evidence of date of birth, as provided in Article 4 of Chapter 130A. The act became law on June 28, 2011.

House Bill 344 – An act to allow individual income tax credit for children with disabilities who require special education and to create a fund for special education and related services became law on July 1, 2011.

House Bill 845 – An act to reform the involuntary annexation laws of North Carolina became law on July 1, 2011.

Veto Overrides

Senate Bill 33 – An act to reform the laws relating to money judgment appeal bonds, bifurcation of trials in civil cases and medical liability became law on July 25, 2011 after the House and Senate voted to override the Governor’s veto.

Senate Bill 496 – An act to provide requirements of Medicaid and health choice providers became law on July 25, 2011 after the House and Senate voted to override the Governor’s veto.

Senate Bill 532 (HB 813) – An act to reform employment security laws by creating the Division of Employment Security within the Department of Commerce became law on July 26, 2011 after the House and Senate voted to override the Governor’s veto.

Senate Bill 781 – An act to increase regulatory efficiency in order to balance job creation and environmental protection was vetoed by the Governor. The House and Senate overrode the Governor’s veto on July 25, 2011 and the bill became law.

House Bill 200 – The Appropriations Act of 2011, otherwise known as the state budget, which was balanced and did not raise tax rates.

House Bill 854 – An act to require a 24-hour waiting period and the informed consent of a pregnant woman before an abortion may be performed became law on July 28, 2011 after the House and Senate voted to override the Governor’s veto.

100 Day Plan Legislative Update

Paul Stam, NC House Republican Leader — Mon, 15 Aug 2011 17:32:34 +0000

100 Day Legislative Update

August 15, 2011

1. Balanced Budget and Reduced Tax Rates

With bipartisan support, the House voted 73 – 46 to override the veto of Governor Bev Perdue. The House and Senate achieved this historic milestone on June 15, 2011.

This fulfills our first two promises to the people of North Carolina: A balanced budget and a budget that does not raise tax rates. Our budget contains the largest tax rate cut in the history of North Carolina. It makes our state more competitive with our neighbors again. It puts almost $1.5 billion back in to the hands of hard working North Carolinians. It is balanced. The business school at UNC Chapel Hill estimates that the Republican budget will create up to 14,900 new private sector jobs in North Carolina.

2. Protect Health Care Freedom Act

HB 2, protects North Carolinians from the “individual mandate” in the federal Patient Protection and Affordable Care Act (Obamacare), passed the House and Senate and was sent to the Governor. She Vetoed the bill. Republican leaders filed an Amicus Curiae (Friend of the Court) brief on May 11, 2011 to the 11^th Circuit Court of Appeals in Atlanta, Georgia. The Court of Appeals is now in deliberations.

3. North Carolina is a Right-to-Work state. Republicans will continue to support laws that secure the right of employees to decide for themselves whether or not to join a union. We will stop any legislation that allows collective bargaining.

4. Reducing regulatory burden on small business.

Both House and Senate members have proposed legislation to limit the financial burden of regulation on businesses.

Senate Bill 22 – An act to limit new agency regulatory requirements that result in substantial additional costs. SB 22 passed both chambers and was signed into law by the Governor on March 25, 2011.
House Bill 162 – An act to exempt certain activities related to small-scale processing of agricultural products from wastewater permit requirements. The bill passed the House and Senate and was signed by the Governoron April 19, 2011.
House Bill 200 – The Appropriations Act of 2011 limits the Department of Environment and Natural Resources, Department of Labor and Department of Agriculture and Consumer Services from imposing standards or limitations that are more restrictive than the Federal government. The Act became law on June 15, 2011.
House Bill 542 – An act to provide tort reform for North Carolina citizens and businesses was signed by the Governor and became law on June 24, 2011.
House Bill 619 – An act to specify the Secretary of Revenue’s authority to adjust net income of a corporation or to require a corporation to file a combined return was signed by the Governor and became law on June 30, 2011.
House Bill 709 – An act to Protect and Put NC Back to Work by reforming the Workers’ Compensation Act passed the House and Senate and was signed by the Governor on June 24, 2011.
Senate Bill 781 – An act to increase regulatory efficiency in order to balance job creation and environmental protection was vetoed by the Governor. The House and Senate overrode the Governor’s vetoon July 25, 2011 and the bill became law.

5. The balanced budget passed by the House and Senate fully funds the teachers in the classroom, not the bureaucracy.

7. HB 351, titled “Restore Confidence in Government” requires voters to provide photo ID before voting and allows more flexibility when applying for absentee ballots. HB 351 was ratified by the House and Senate but vetoedby the Governoron June 23, 2011. The House was unable to override the Governor’s veto but because of a parliamentary procedure it is eligible for reconsideration.

100 Day Plan Legislative Update

Paul Stam, NC House Republican Leader — Mon, 25 Apr 2011 16:02:49 +0000

North Carolina House of Representatives

100 Day Legislative Update

April 25, 2011

Budget Priorities

On April 14, 2011 the House and Senate passed HB 383, a continuing resolution budget, without raising tax rates. The measure allows the Governor to allocate funds for spending by State departments at a level that basically does not exceed expected revenues for the 2011-2012 fiscal years in case the House, Senate and Governor do not agree on a formal budget. On Saturday April 16, 2011, the Governor VETOED this measure so that she can demand tax rate increases.

Protect Health Care Freedom Act

HB 2, protects North Carolinians from the “individual mandate” in the federal Patient Protection and Affordable Care Act (Obamacare), passed the House and Senate and was sent to the Governor. She Vetoed the bill. Republican leaders will submit an Amicus Curiae (Friend of the Court) brief to the 11^th Circuit Court of Appeals.

North Carolina is a Right-to-Work state. Republicans will continue to support laws that secure the right of employees to decide for themselves whether or not to join a union. We will stop SB 386.

Reducing regulatory burden on small business.

Both House and Senate members have proposed legislation to limit the financial burden of regulation on businesses.

Senate Bill 22 – An act to limit new agency regulatory requirements that result in substantial additional costs. SB 22 passed both the Senate and House and was signed into law by the Governor on March 25, 2011.

House Bill 162 – An act to exempt certain activities related to small-scale processing of agricultural products from wastewater permit requirements. The bill passed the House and Senate and was ratified by the House on April 14, 2011.

House Bill 237 – An act to require economic impact statements on all bills that propose regulatory changes. The bill passed first reading of the House and is before the Committee on Commerce and Job Development.

House Bill 323 – An act to reduce the corporate income tax rate in North Carolina from 6.9% to 4.75%. HB 323 will be considered as part of the budget.

House Bill 800 – An act to create the North Carolina Jobs and Commerce Corporation Task Force to study the implementation of the transferring of economic development activities into a single entity is now before the House Committee on Commerce and Job Development.

The Joint Select Committee on Regulatory Reform held six meetings across the state beginning in Wilmington on March 11th. They heard suggestions from the public concerning burdensome regulations on individuals and business. The last meeting was held on Thursday, April 21^st in Raleigh, NC.

Senate Bill 8 entitled, “No Cap on Number of Charter Schools” passed the House on Monday evening, by a vote of 68 – 51. SB 8 received unanimous support from House Republicans and one courageous Democrat. Charter school legislation now heads to conference with the Senate. Representatives Stam, Samuelson and Brandon are House conferees to work with Senators Stevens, Graham and Soucek.

House Election Law Committee has held several committee meetings on HB 351, titled “Restore Confidence in Government.” The bill would require voters to provide photo ID before voting and allow more flexibility when applying for absentee ballots. HB 351 passed the Election Law committee and is now before the House Appropriations Committee.

The House and Senate have each introduced bills proposing a Constitutional Amendment that will protect private property rights. House Bill 8 titled, “Eminent Domain” passed the full House Judiciary committee. Debate on House Bill 8 has been rescheduled for Tuesday, April 26^th around 2:00 pm. Come watch or listen.

House Republicans moved one step closer to good government by passing House Bill 61 titled, “Speaker/Pro Tem Term Limits.” This constitutional amendment seeks to cap the number of consecutive legislative terms the Speaker or President Pro Tem of the Senate serves to no more than two. It passed 72 – 46, the bare minimum and now moves to the Senate. The Governor cannot veto a constitutional amendment.

House Republicans introduced HB 139 entitled, “Limit Contributions by State Vendors” as a measure to discourage pay-to-play politics in North Carolina. The bill seeks to limit the campaign contributions of state vendors to Council of State offices with which they hold contracts. HB 139 passed through Elections Committee on Wednesday and is headed to the floor.

A Historic Day Will Lead to a Better North Carolina

Paul Stam, NC House Republican Leader — Wed, 03 Nov 2010 15:58:37 +0000

On November 2, 2010, voters sent a clear message. The number one issue in North Carolina is the economy – jobs, jobs, jobs. Years of overspending by Democrats have given North Carolina the highest tax rates in the Southeast and an estimated budget deficit of at least $3 billion for next year. High tax rates inhibit hiring.

Republican members of the House and Senate have united against legislation which limited our freedoms and stifled small business growth. Republican candidates across the state campaigned against excessive spending, tax rate increases and the job-killing, liberty-restricting mandates of the federal Patient Protection and Affordable Care Act (Obama Care). And for the first time in 112 years, Republicans have gained majorities in both the state House and Senate.

The people of North Carolina have entrusted us with the responsibility to govern the State by reducing costs and regulation on business, large and small, so that they can create jobs and prosperity. Voters have spoken and Republicans are committed to:

Balancing the State budget without raising tax rates.

And within the first 100 days:

Passing The Healthcare Freedom Protection Act, exempting North Carolinians from the federal Patient Protection and Affordable Care Act (Obama Care).
Fighting to protect jobs by keeping our Right to Work laws.
Reducing the regulatory burden on small business.
Funding education in the classroom, not the bureaucracy.
Eliminating the cap on charter schools.
Passing the Honest Election Act, requiring a valid photo ID to vote.
Passing the Eminent Domain constitutional amendment to protect private property rights.
Ending pay-to-play politics and restore honesty and integrity to state government.

How to Fix North Carolina, A Speech Delivered by Paul Stam

Paul Stam, NC House Republican Leader — Wed, 19 May 2010 16:05:27 +0000

NORTH CAROLINA CHAMBER OF COMMERCE

MAY 19, 2010

“YOU SAY YES, I SAY NO, YOU SAY WHY, I SAY I DON’T KNOW”

Mr. Speaker, Mr. President and Mr. Leader,

What a privilege to address the North Carolina Chamber of Commerce in this time of economic uncertainty and challenge. Let’s get back to basics.

But first, there is a rhetorical device making the rounds that Republicans are a tribal party of “no”, while Democrats are statesmen who make tough choices and provide solutions. This rhetorical device was first set to rhyme and music by the Beatles:

“You say ‘yes’, I say ‘no’, You say ‘why’, I say ‘I don’t know.’”

But does this rhetoric translate into reality. In 2006 when Speaker Black was in the chair my red light went out. On every vote that day I had to stand up and wave at the Clerk when I wanted to vote no. Speaker Black, probably in jest, told me my quota of “no” votes had been used up. That is one way to encourage others to toe the party line. But whether an answer should be “yes” or “no” depends on the question.

Last year, in the depths of a bad recession House Democrats proposed a new tax on LLCs, even LLCs which were losing money. In committee, Republicans made a motion to delete that new tax. We voted “yes” to delete the tax. They voted “no”. On the floor the motion was made to approve the entire package of new taxes tied up so tight it was unamendable. We voted “no”. They voted “yes”. So which was the party of “yes” and which was the party of “no”? Who knows? I suggest that is an irrelevant way to categorize positions. Instead, in this instance an impartial observer would say House Democrats wanted to tax money losing LLC’s and Republicans did not want to add a new tax to LLC’s.

It is true that we said “no” to raising an additional $1.3 billion of taxes next fiscal year in the middle of a bad recession. On that we have the agreement of every economist who would give an opinion and who appeared before the Joint Interim Committee on Tax Reform. Instead House Republicans presented factual evidence that the true spending gap last year was 1/10 the amount advertised. And we provided detailed proposed solutions to more than cover that gap. I’ll run a few of them by you since they are also available this year.

For example,

We proposed that out-of-state athletes not qualify for in-state tuition. That would have saved over 200 teaching positions. The House said yes – the Senate said no.

We proposed the Neumann Amendment, which the House held to be “out of order,” refused to suspend the rules and rejected. This would have taken 2 years of the tobacco settlement money, (which otherwise wanders off budget), to use for a three to one match against Federal Medicaid Funds, in order to get over $200 million of additional funds for critical needs. We proposed. They opposed. Republicans said “yes”. Democrats said “no”.

We proposed removing the cap on the number of public charter schools so that we would have a chance at hundreds of millions of dollars in federal “race to the top” money. But our bills to eliminate the cap were never heard. So far the answer is “no”. Perhaps by the June 1 deadline the possibility of losing that federal money will be too scary to continue saying “no” and a tiny increase in the cap will be ratified.

Many times the language of “no” is the words “out of order”. For example the Neumann Amendment to draw down hundreds of millions of dollars in additional federal money actually was “out of order”. But on opening day, knowing this issue would arise, we proposed a Rules Amendment that would make it in order, but the majority said “no”. It is still out of order in the House, but it is also still a very good idea and is a version of a bill introduced by Sen. Clodfelter.

We offered the Blackwell Amendment to regulate and drastically reduce Golden Parachutes in state government. I have never understood the concept of paying someone to not work. We worked the Blackwell Amendment into the House Budget, but someone said “no”, and since none of us are amongst the Conferees that decide these things, we do not know if it was the Senate or our own Conferees. So the State continues to use those “money wasting sweetheart deals” – primarily at the universities. Maybe this year someone will say “yes”.

We proposed “Executive Branch Oversight” of the state health plan as recommended by the State Auditor, instead of the ineffective and bungling current system of only legislative oversight. They said “no”. Maybe this year they will say “yes”.

Often times it is not the “out of order” gambit used but rather “no” comes by refusing to take proposals up at all. We have proposed legislation to protect North Carolinians from the worst of the predatory ravages of Obamacare – the individual mandate. But the majority has already said “no” in advance – and emphatically.

I could go on with dozens of proposals, researched and offered, which have been turned down, simply by refusing to bring them up or by ruling them out of order, or just dropped in conference.

This year we have a continuation of the budget crisis. First we need to appreciate the facts on the ground. The governor has proclaimed another round of what she calls draconian cuts to solve huge gaps. She also says that her proposed budget spends 5% less per capita than 2 years ago. But the actual fact is that her proposed budget would spend per capita not 5% less, but rather 2% more than the actual spending of fiscal year 2008-2009. It would go from per capita spending of $2,127 to $2,169. The Senate version, which is being debated today, would spend per capita just slightly less than the governor but still more than in 2008-2009.

This time of famine and drought follows 5 years of fat from 2003-2007 when five budgets in a row continually increased spending at twice the rate of inflation plus population. That is the heart of the problem and suggests the solution – we need to freeze state spending at the current level. We know we can do it because we are doing it. And that would provide several hundred millions of reserves to meet next year’s inevitable crisis.

Sound economic solutions will not be simple but are based on three foundational principles:

First, reduce the marginal rates of taxation. Targeted tax credits are almost irrelevant to job creation and are usually hugely expensive.

North Carolina has the highest rate of income tax in the region, both personal and corporate. And to add insult to injury they surcharged that for two years. This year’s senate proposal to lower the marginal rate on some from 7.75% to 6.9% is good, but it should not be limited to only certain businesses. A builder who sells 3 houses is ineligible. Because it is based on gross receipts of $850,000 it operates irrationally.
Except for Tennessee, North Carolina has the highest sales tax rate among our neighbors. And Tennessee has no income tax. If someone has a choice, will they buy a large item here or across the border?
How many of you have travelled to South Carolina or Virginia lately? Our gas tax is significantly higher. Does that mean we get more revenue? I doubt it. Virginians who have travelled through North Carolina once will learn to fill up before they arrive at our borders. They use our roads and pay us nothing.

We’ve got to get those marginal rates where they are competitive again.

Second, the General Assembly needs to provide significant regulatory relief. Gimmicks will not work. I have looked at the House majority’s jobs bill (HB 1721). Everyone is for more jobs. But take a look at it and see if, despite some good ideas, it will actually do anything for job creation. Sen. Berger will expand on this theme.

Third, Republicans have been proactive on tax and spending reform. On December 1, 2009 House and Senate Republican members of the Interim Joint Committee on Tax Reform publically stated 5 principles of spending and tax reform that will lead to job creation in North Carolina.

One, the concept of substantially reducing personal and corporate income tax rates and sales tax rates is good. If that reduction is accomplished by broadening the base in a revenue neutral way, that is the right way to go but it raises four other issues.

Two, neither the public nor Republicans trust Democrats to keep tax rates low if they broaden the base. There must be a mechanism to ensure that rates stay low. Here are two possibilities:

The first possibility is a Constitutional amendment limiting the state sales tax rate at about 3% and the county sales tax rate to an equivalent. This would be similar to the way the Constitution specifies a limit on tax on net income, or
The second possibility is a Statute that sets out as a Rule of Order, applicable to each House, that an increase in the rate must be separately passed by both Houses and signed by the Governor, and cannot be combined with any other matter, unless by a 2/3 vote of each house.

Three, base widening must delete exemptions and refunds which are in current law for political reasons/not because of true economic considerations.

Four, tax reform must include spending reform that has passed the House in the past – zero based budgeting, and must include:

Procedural reforms that allow “off budget” sources of revenue to be considered as part of the budget process.
The Governor’s proposed budget must only include the amount of revenue collected in the prior calendar year (with a recession exception).

And, finally principle five, in determining what is “revenue neutral” the temporary taxes imposed in 2009 shall be treated as if they had expired.

To these 5 principles the majority has not replied “yes” or “no” – only silence. We encourage you to encourage them to say “yes”.

Gov. Perdue’s Budget Increases Per Capita Spending

Paul Stam, NC House Republican Leader — Tue, 27 Apr 2010 17:12:52 +0000

On Page 78 of the Governor’s presentation of the Fiscal Year 2010-2011 Recommended Budget prepared by her Office of State Budget and Management is this claim “Budget Highlights”

“SPENDS 5.0% LESS PER CAPITA THAN FY2008-09”

That sounds like some belt tightening is going on. But the claim is not true. From the Office of the Governor we obtained the state population estimates used for all other purposes. From her office and from Fiscal Research we obtained the actual spending levels for 2008-09, 2009-10, and projected for 2010-11. For the current year this accepts the estimate that $400 million of the current budget will not be spent and takes her budget for 2010-11 and reduces it by about $200 million (for unavoidable reversions that would be present in almost any year without regard to the economy). These figures include federal stimulus dollars because this is what she proposes to spend.

The results:

	2008/2009	2009/2010	2010/2011
Population	9,240,289	9,397,397	9,502,904
Spending	$19.6 billion	$20 billion	$20.5 billion
Spending Per Capita	$2,121	$2,128	$2,157

Spending per capita increases under her proposed budget. It does not decrease at all – much less by the claimed 5%.

See press release entitled, GOVERNOR PROPOSES SPENDING INCREASE, wherein we demonstrate that the actual level of spending increase in the Governor’s budget is 2.5%. After it was released we confirmed this 2.5% figure with the Governor’s Chief Budget Officer.

Governor Proposes Spending Increase

Paul Stam, NC House Republican Leader — Tue, 27 Apr 2010 16:57:19 +0000

On April 20th Governor Bev Perdue presented her budget to the General Assembly. Let’s recap:

In 2009, after a widely advertised budget gap of $4.5 billion, “draconian cuts” and prolonged hand wringing — actual spending went up about 2% from $19.6 billion in 2008-2009 to an estimated $20 billion in 2009-2010 ($20.4 billion budget with about $400 million not spent).

In 2010 after claims of a billion dollar budget gap, “draconian cuts” — the Governor’s budget projects spending of about $20.7 billion which, with expected reversions, will come in at about $20.5 billion – a 2.5% increase in spending.

Which North Carolina businesses or families have increased actual spending each year in the middle of the worst recession in decades?

Note: For apples to apples comparison these figures include federal “stimulus” funds for each year. The Governor’s publically released budget total omits about $1.6 billion in stimulus funds which will be spent by the state.

Medicaid Fraud Exaggeration

Paul Stam, NC House Republican Leader — Tue, 30 Mar 2010 21:06:05 +0000

Gov. Beverly Perdue has loudly proclaimed her new initiative to stop Medicaid fraud. The heart of her claim is the use of new technology by IBM to review claims before they are paid. This is a great idea. But her press release is highly misleading. As Lieutenant Governor from 2003-2008 she was culpable in not supporting this technology.

In 2003 Republican Senator Robert Pittenger introduced SB 985 titled Medicaid Fraud Detection Pilot Funds to finance and use this technology. The bill was referred to the Committee on Appropriations/Base Budget and never heard on the Senate Floor. However, on April 29th 2003, Senator Pittenger offered a floor amendment to the Budget Act which passed 49-0 and further expanded direction relating to fraud software. Meanwhile, in the House Republican Representative John Blust offered the same bill. Legislative leadership refused to let it be heard, even though it had passed 49 to 0 in the Senate.

We have attempted to find out who, on the Conference Committee, made the decision to leave this provision out of the final budget for 2003. It was quickly dropped and we find no evidence that Senate conferees fought to include this Republican amendment. Staff states the written record does not exist. But since the Conference Committee overwhelmingly consists of Democratic members, the budget leaders, including then Lt. Governor Bev Perdue and Senator Kay Hagan, are culpable.

One estimate is that since 2003 a billion dollars of fraud, waste and other improper payments have been made in North Carolina. These could have been stopped with this technology.

In 2009, sensing an opportunity (because of the budget crisis) to implement a program that would save money, Republican Representatives Stam, Blust and Dollar introduced HB 190 to accomplish this function. It passed the State Government Committee, and then, in a different form and at the continued persistent insistence of Republican leaders, was included in the House budget, finally accepted by the Senate and signed by the Governor.

Republicans were delighted that the Democrats finally agreed that it was time to save money.