Senator Debbie Clary

From the desk of Senator Debbie Clary…

Being a “new year,” it is beneficial to look back at what we have, and have not, accomplished during the previous year.  I thought you may enjoy a quick summary of the past year and a glimpse for 2010.  The John Locke Foundation has accumulated some of these interesting demographic and economic measures, which are displayed in the tables below:

NC Fast Facts (FY 2010)…

Demographics… 

NC State Government…

Tax Rates…

General Fund Appropriations…

General Fund Availability…

Transportation…

 2010 “New Year” Outlook…

Included in a report entitled, “General Fund Revenue Report and Economic Outlook,” the NC Fiscal Research Department gathered information from various sources to detail expectations for 2010.  Some of the main points are highlighted below:

• Moody’s Economy.com forecasters significantly lowered their expectations for growth in the State’s personal income for 2010.  They now forecast 1.9% growth, which is half of what was in previous forecasts (3.8%).  Wage & Salary income, the major component of personal income, is estimated to have fallen 4.4% in 2009 and expected growth for 2010 is approximately 1.8%.
• From September through November the State’s economy added almost 16,000 jobs (seasonally adjusted).  However, this still leaves employment short of pre-recession employment by almost 240,000 jobs.  Many of the State’s industries have begun to increase output, yet this has had little impact on full-time employment.  Only the Health & Education Services and Government sectors had year-over-year growth in November.
• For 2009, the Construction, Manufacturing, Mining, and Wholesale Trade sectors experienced the biggest losses in employment.  The Government sector is the only one expected to realize any employment gains for the year.
• The housing market in the State appears to have bottomed out.  Existing home sales are no longer in decline and prices are starting to stabilize in some areas.  Nonetheless, the market is still struggling.  As of November, Residential permits for new construction were still in decline, and existing home sale prices across the State were down 1.7% for the third quarter of 2009. 

Now is not the time to raise taxes, experiment with new Use Taxes or fees, or to fund unnecessary and fiscally irresponsible projects.  Instead, we need to address unemployment, immediately!  Our number one priority for this “new year” should be to significantly reduce, or eliminate, the 240,000 jobs lost due to the recession.  Furthermore, with 11.0% statewide unemployment, consumers are not able to spend the money necessary to stimulate the economy.

Want to see back issues of Senator Clary’s Newsletters or view interesting News Clips? …

Please visit our site at:  www.senatorclary.com.

Monthly Mailings 

Now that the session has come to an official adjournment until May, 2010, we will be sending the e-Newsletter monthly instead of weekly.  During the interim, I am in the district working on constituent issues as well as my business, Millennium Marketing and MMG LIVE Networking.  The Raleigh office will remain open Monday thru Friday with my Legislative Assistant, Misty Greene.  You can reach us at debbie.clary@ncleg.net or debbie@senatorclary.com or if you prefer to call, the number is 919.715.3038.  We check our mail daily and will get back to you as soon as possible.  I would like to emphasize how thankful I am for your readership, comments, and input throughout the “long session.” 

Thanks as always for your support and for the honor and privilege of serving as your Senator!

From the desk of Senator Debbie Clary…

I hope everyone had a relaxing Thanksgiving Holiday!  It is just a few short weeks until the Winter Holiday Season.  In our Special mid-November Newsletter, we briefly updated you on the recent “push” for Tax Reform.  Provided by the Interim Joint House and Senate Finance Committee, the information below provides an interesting perspective on the NC Sales Tax Rate and its evolution over time. 

A Historical Look at Taxes 

Sales Tax Revenue

Rate Changes 

 1933:      3% sales tax rate

 1991:      4% sales tax rate

 2001:     4.5% sales tax rate, temporary

 2006:     4.25% sales tax rate, temporary

 2007:     4.25% sales tax rate, permanent

 2008:     4.5% sales tax rate, Medicaid swap

 2009:     5.5% sales tax rate, temporary

 2009:     5.75% sales tax rate, Medicaid Swap

 Current NC General Rate

 The General State Tax Rate is 5.75%.  The 1% increase enacted this year is scheduled to expire July 1, 2011.

 The Local Tax Rate varies:

– In 91 counties, the rate is 2%, for a combined State and local rate of 7.75%.

– In Alexander, Catawba, Cumberland, Haywood, Martin, Pitt, Sampson, and Surry, the rate is 2.25%, for a combined State and local rate of 8%.

– In Mecklenburg, the rate is 2.5%, for a combined State and local rate of 8.25%

 Items that are subject to state sales tax are also subject to the local sales and use tax. 

Food Exemption 

Food for Home Consumption Exempt (from State rates; however, a 2% Local Rate remains) unless it is defined as:

– Dietary supplement – Vending machine item – Prepared food – Soft drink – Candy 

Food for Home Consumption looses its State Sales Tax Exemption if:

– It is sold in a heated state – It consists of two or more foods – Foods are mixed or combined by retailer – It is sold with eating utensils 

Current Economic Development Exemptions

 Major Recycling Facilities

 Interstate Air Couriers

 Interstate Air Passenger Carriers

 Interstate Air Businesses

 Datacenters

 Railroad Intermodal Facilities

The complexity and inefficiency of our current tax code system results from a disregard for responsible spending.  Instead of focusing on how to expand our Sales Tax Rate, we should be turning to a “reformed” system of budgeting.  As Winston Churchill once said, “We contend that for a nation to try to tax itself into prosperity is … like a man standing in a bucket and trying to lift himself up by the handle.”  We, as both a State and a Nation, need to step out of the bucket and turn our focus to unemployment.  Are increasing Sales Tax Rates going to help address unemployment?  Unfortunately, NO!  These increasing rates are only going to fuel more unaccountable and inefficient spending and increase the overwhelming tax burden on all North Carolinians.

Want to see back issues of Senator Clary’s Newsletters or view interesting News Clips? …

Please visit our site at:  www.senatorclary.com.  Also, please refer to our website to see both the tax reform and small business press releases.

Monthly Mailings

Now that the session has come to an official adjournment until May, 2010, we will be sending the e-Newsletter monthly instead of weekly.  During the interim, I am in the district working on constituent issues as well as my business, Millennium Marketing and MMG LIVE Networking.  The Raleigh office will remain open Monday thru Friday with my Legislative Assistant, Misty Greene.  You can reach us at debbie.clary@ncleg.net or debbie@senatorclary.com or if you prefer to call, the number is 919.715.3038.  We check our mail daily and will get back to you as soon as possible.  I would like to emphasize how thankful I am for your readership, comments, and input throughout the “long session.” 

Thanks as always for your support and for the honor and privilege of serving as your Senator!

From the desk of Senator Debbie Clary…

First off, I hope everyone had a fun and safe Halloween weekend!  Since this is the last newsletter before Thanksgiving, I would like to wish everyone a Happy Thanksgiving!  Please be safe during any of your travels.

As a North Carolina State Senator, I do not have a vote and I typically do not get involved in issues outside of the realm of my work.  However, I am receiving an inordinate amount of calls and emails about the national healthcare debate.  I would simply like to share a few thoughts with you!

My thoughts on the national healthcare debate!

You likely have seen a reference to “rationing of care” in the media regarding Socialized Medicine.  In particular, regarding Socialized Medicine, you likely have seen “rationing of care” in regards to the elderly.  The phrase/concept of “Rationing of Care” seems to confuse many people.  Rationing is an Economic phenomenon.  Maybe this will help you explain the concept to friends:

(1) The demand for health care leads to a supply of health care.  That is, a market has been created,

(2) Demand and supply for health care intersect at price,

(3) “Price” is how a market rations. 

In regards to Health Care, if you add 19 million uninsured to the current health care system, demand suddenly increases (Demand Shock).  Supply (health care providers, hospitals, etc.) can not adjust quickly enough to the sudden increase in Demand.  Hence, price rises as the market “rations” through price until which time Supply can adjust (build new hospitals, train new doctors and nurses, etc.).

However, price will not be allowed to rise under Socialized Medicine.  If the mechanism “price” is distorted, then true rationing occurs (long waits for services….it’s the only other rationing technique available if price is not allowed to rise).

Rationing goes a step further:  Supply, in the medium and long run, will be constrained regarding adjusting to the increase in Demand as price is distorted.  Hence, Supply will not adjust (no new hospitals built, decline in doctors and nurses, etc.).  Supply will not increase due to price distortion leading to Supply Constraint, which, once again leads to continued rationing.

In regards to the elderly and rationing, it becomes more of a Political-Economy argument.  The argument goes like this: if a liver transplant is needed by a 30 year old and a 70 year old, and if the Government is involved and has panels that determine “need,” the 30 year old gets the nod.

Another part of the argument for the elderly is: rationing will cause long waits for service, which may take so much time the elderly expire during the long wait time.

The final part of the argument is Medicare is being raided for money to pay a Socialized Health Plan.  The reduction in Medicare funds means health care providers will be reimbursed less.  The lower reimbursement is a form of price distortion meaning rationing for the elderly gets ratcheted up to another level.

Want to see back issues of Senator Clary’s Newsletters or view interesting News Clips? …

Please visit our site at:  www.senatorclary.com.

Monthly Mailings

Now that the session has come to an official adjournment until May, 2010, we will be sending the e-Newsletter monthly instead of weekly.  During the interim, I am in the district working on constituent issues as well as my business, Millennium Marketing and MMG LIVE Networking.  The Raleigh office will remain open Monday thru Friday with my Legislative Assistant, Misty Greene.  You can reach us at debbie.clary@ncleg.net or debbie@senatorclary.com or if you prefer to call, the number is 919.715.3038.  We check our mail daily and will get back to you as soon as possible.  I would like to emphasize how thankful I am for your readership, comments, and input throughout the “long session.”

Thanks as always for your support and for the honor and privilege of serving as your Senator!

From the desk of Senator Debbie Clary…

Although my office has already sent out our November newsletter, we have decided that a couple of recent updates warrant a “special,” mid-month newsletter.  I will also take this as another opportunity to send wishes for a wonderful and blessed Thanksgiving!  Here, below, is what has been going on with regard to Tax Reform and Small Business:

 Tax Reform… 

Members of both the NC House and Senate Finance Committees met last week to debate reforming the tax code.  This proposed “reform” would lower the state sales and income taxes, while extending the sales tax to services like auto repair, home improvement, and warranties.  In a recent study conducted by the Civitas Institute, 58.5% of polled voters said they would oppose such a plan.  Here is the full breakdown of the poll:

I agree with Civitas Institute Senior Legislative Analyst Chris Hayes’ statement, “Voters are skeptical of any move by the legislators to ‘reform’ the tax code. Having been lied to repeatedly about the expiration of supposed temporary taxes, voters have little faith in the General Assembly when it comes to taxes.”

This plan is not a “reform”: it is simply a reallocation of taxes.  Instead of finding new, creative ways of disguising taxes from a disgruntled base, we should be looking at more responsible and accountable spending, as well as zero-based budgeting, as a better solution.  I agree with the majority on the issue and will not support this “reform.”

Small Business …Senator Clary ranked among the top …

In a recent study conducted by the NC FreeEnterprise Foundation, Senator Debbie Clary has been ranked among the highest in the NC Senate as voting positive for small business in NC.  These “ratings” are derived from the voting records of state lawmakers on key business issues, during the past session, and a survey of North Carolina business leaders and government affairs professionals representing a wide range of industries, interests and geographic areas across the state.

On this topic, Senator Clary stated, “Being a friend of small business simply translates into working for more jobs in our community.  Our work in the General Assembly is to set the stage for local commissioners and economic development teams to build a North Carolina that is ready to do business.”  Small business is the key to many of our current problems; therefore, it makes sense to support such initiatives.

To see the complete NC Senate rankings, please click here.

Want to see back issues of Senator Clary’s Newsletters or view interesting News Clips? …

Please visit our site at:  www.senatorclary.com.  Also, please refer to our website to see both the tax reform and small business press releases.

Monthly Mailings

Now that the session has come to an official adjournment until May, 2010, we will be sending the e-Newsletter monthly instead of weekly.  During the interim, I am in the district working on constituent issues as well as my business, Millennium Marketing and MMG LIVE Networking.  The Raleigh office will remain open Monday thru Friday with my Legislative Assistant, Misty Greene.  You can reach us at debbie.clary@ncleg.net or debbie@senatorclary.com or if you prefer to call, the number is 919.715.3038.  We check our mail daily and will get back to you as soon as possible.  I would like to emphasize how thankful I am for your readership, comments, and input throughout the “long session.”

Thanks as always for your support and for the honor and privilege of serving as your Senator!

From the desk of Senator Debbie Clary…

Program Evaluation Reports 

Every year, reports are put together by the Program Evaluation Division of the NC General Assembly.  Their findings and recommendations often lead to important legislation.  Below are a few summaries of recently published reports:

Enhanced Services for Mental Health

Findings indicated a total of $2.4 billion was spent on enhanced services from April 2006 through February 2009, $827.2 million of which was North Carolina’s share of the costs.  Analyses suggest effective planning and better oversight could have avoided costs of $498.5 to $635.3 million, of which $177.4 to $226.2 million would have been North Carolina’s share of the avoided costs.

Water and Wastewater

Funding for water and wastewater infrastructure in North Carolina is provided by six state funding entities, each with its own mission, goals, and objectives.  Without an effective oversight agency or comprehensive strategic plan in place to coordinate activities, water and wastewater funding is provided in a complex and fragmented manner.  The General Assembly should direct the State Water Infrastructure Commission (SWIC) to develop a statewide strategic plan and needs assessment for water and wastewater infrastructure funding and require better oversight of water and wastewater funding by either authorizing SWIC to coordinate and oversee the system or by establishing a single water and wastewater authority.

Vehicle Inspections 

Vehicles registered in North Carolina are subject to two types of inspections: safety inspections, which examine various mechanical systems, and emissions inspections, which ensure proper functioning of pollution controls.  North Carolinians spends $141 million annually on inspections.  No evidence exists showing the safety inspection program is effective, it is not possible to determine how much vehicle emissions inspections contribute to the improvement of overall air quality, and program oversight by the Division of Motor Vehicles (DMV) is inadequate.  The General Assembly should reevaluate the need for a safety inspection program, consider exempting vehicles from the three newest model years from safety and emissions inspections, and require DMV to manage the programs to ensure results.

Alcohol Beverage Control

North Carolina’s Alcohol Beverage Control (ABC) system is outdated because it has not kept pace with demographic and economic changes, and state statutes limit effective management of the system.  The mission of local ABC boards is not clearly defined, and some boards use the lack of a clear mission to as a reason to justify ineffective and inefficient store operations.  Regarding “standardization,” North Carolina regulates the sale of liquor differently than other states.  The current ABC system can be modernized by defining the mission of local boards, providing management tools for better oversight of local boards, and modifying outdated statutes.

Please click here for access to additional program reports.

Taxes …

Following the passage of the budget and adjournment of the Senate, our office received several questions regarding the Income Surtax.  Dedicated to preventing tax increases and promoting efficient spending and Zero-Based budgeting, I did not support the surtax provision.  However, the description below describes the changes.

How the Surtax Works …

The surtax is in effect for the 2009 and 2010 tax years and is based on North Carolina Taxable Income (not Federal AGI), as recorded on Line 13 of the North Carolina D-400 tax form.  North Carolina Taxable Income is the net of North Carolina deductions, exemptions and other various additions and deductions (i.e. Bailey settlement, NC 529 Plan, etc).  The dollar amount reported on Line 13 establishes what surtax rate is imposed.  The surtax is then imposed on the amount of North Carolina Income Tax (D-400 Line 14).

For example, if a taxpayer filing as a single had income of $87,500 and deductions and exemptions totaling $12,500, their NC Taxable Income (Line 13) would be $75,000. The NC Income Tax (Line 14) would be $5,235 and the surtax amount would be $104.70 ($5,235 * 2%).

Want to see back issues of Senator Clary’s Newsletters or view interesting News Clips? …

Please visit our site at:  www.senatorclary.com.

Monthly Mailings

Now that the session has come to an official adjournment until May, 2010, we will be sending the e-Newsletter monthly instead of weekly.  During the interim, I am in the district working on constituent issues as well as my business, Millennium Marketing and MMG LIVE Networking.  The Raleigh office will remain open Monday thru Friday with my Legislative Assistant, Misty Greene.  You can reach us at debbie.clary@ncleg.net or debbie@senatorclary.com, or if you prefer to call, the number is 919.715.3038.  We check our mail daily and will get back to you as soon as possible.  I would like to emphasize how thankful I am for your readership, comments, and input throughout the “long session.”

Thanks as always for your support and for the honor and privilege of serving as your Senator!

From the desk of Senator Debbie Clary…

The legislature has adjourned!  Through today, there have been 469 laws enacted in the 2009 Regular Session.  The Governor currently has 109 pending bills on her desk.  Action on those pending is required by September 10, the 30th day after adjournment.  As a result, it is possible that 575 laws will be enacted in 2009, compared with 551 in the 2007 long session.  Furthermore, 2009 will see a total of 33 joint resolutions passed, compared with 70 in 2007.

Even though we have accomplished a great deal in an extremely tough year, the Senate President Pro Tempore has informed us that we will likely be called back into session, during the fall, to discuss implementing taxes on services legislation.  I am skeptical of the proposal to taxing services and the effect on current economy and efforts for economic development.  Of course, while I won’t disagree that the tax code is outdated, I don’t think this is the time to address and cannot support tax increases on families and businesses that are already struggling.  From the mail that our office receives from the district, I think this reflects the concerns I am hearing. 

Thank you for letting our office know how you feel about issues that are important to you and your family. 

The Budget …

Governor Perdue signed the budget into law last Friday.  In her prepared statement, she outlined several areas where this budget “falls short.”  Below are a few of her remarks:

• Although it no longer mandates class size increases, it regrettable still includes cuts to Local Education Agencies (LEAs).
• Local agencies that provide mental health services face cuts, jeopardizing crucial metal health services for patients across North Carolina.
• Our public safety system is not funded at an adequate level.
• And this budget does not include additional help for working families, such as an increase in the Earned Income Tax Credit.

The full article can be accessed on our website – www.senatorclary.com.

Legislation Wrap-up

This week, “The Puppy Mill Bill,” was received and heard in the House Commerce Committee.  After adopting a committee substitute, the bill was then re-referred to the House Finance Committee.  Since the General Assembly adjourned, the bill is eligible for a hearing next session.  Unfortunately, in a year where we have faced a severe recession, double-digit statewide unemployment, budget discord, and restructuring of the health plan, this piece of legislation has taken the forefront of North Carolina politics.

In other news, HB 1305 – Beach Plan Changes – passed the House and has been presented to the Governor to sign into law.  I am relieved that North Carolina citizens, and legislators alike, realize and accept the need for these changes.  With this legislation in place, insurance rates will stabilize and citizens will not suffer in the form of higher premiums and fewer choices.

Want to see back issues of Senator Clary’s Newsletters or view interesting News Clips? …

Please visit our site at:  www.senatorclary.com.

Monthly Mailings 

Now that the session has come to an official adjournment until May, 2010, we will be sending the e-Newsletter monthly instead of weekly.  During the interim, I am in the district working on constituent issues as well as my business, Millennium Marketing and MMG LIVE Networking.  The Raleigh office will remain open Monday thru Friday with my Legislative Assistant, Misty Greene.  You can reach us at debbie.clary@ncleg.net or debbie@senatorclary.com or if you prefer to call, the number is 919.715.3038.  We check our mail daily and will get back to you as soon as possible.  I would like to emphasize how thankful I am for your readership, comments, and input throughout the “long session.”

Thanks as always for your support and for the honor and privilege of serving as your Senator!

From the desk of Senator Debbie Clary…

The end of the legislative “long session” is in sight!  The budget has been passed and committees are concluding.  I would like to, once again, thank everyone who has contacted the office regarding any legislation or other issue.  It has been my pleasure to serve and assist you during session, and I am looking forward to helping you in the future.

The Budget …

On Tuesday, the budget conference report was brought before the Senate.  After almost an hour of spirited and ideological debate, the Senate voted strictly on party lines – 27 in favor (Democrats) and 18 in opposition (Republicans).  I voted NO on the budget!  Likewise, the House also voted along party lines – 65 in favor and 52 in opposition.  The budget has been ratified and sent to Governor Perdue to sign.

Although there were many reasons for the onset and sustainment of the Great Depression, one main contributing factor was an increase in taxes.  During this period of financial crisis, both federal and state governments raised taxes.  It doesn’t take a professor in economics to know that increased taxes causes a shrinkage in disposable income and an expansion of unemployment.  A decrease in spendable income inhibits private capital formation, which ultimately hampers private job creation.  With 10% statewide and over 15% unemployment in my district, tax increases are an inefficient and irresponsible solution to a major problem – big government and wasteful spending.

Other than the tax increases, cuts in spending that were not prioritized conclude the reason I voted NO on the budget.  The cuts in education that force LEAs to cut teacher positions were the most “egregious.”  The table below provides a brief description on some of the main reductions for the 2009-2010 Fiscal Year.  Please note that the following list outlines some of the substantial cuts to education that were included in the budget.

Another reason to vote no on this budget is the drastic cuts to the homebound elderly, who are receiving home care services.  Over $175 million was cut from seniors who, without the assistance, will be forced into adult care or nursing homes.  These cuts are in the form of reductions in the Home & Community Care Block Grant, Personal Care Services Benefits, Community Support Services, and Appropriates for Community Care of North Carolina (CCNC).  To add insult to injury, the budget will also establish an annual fee for all hospice facilities and increase fees for homecare licensure renewals.

Home care combines efficiency and compassion with the latest in health-care technology.  There is a laundry list of advantages of home care, including patient preference, speedier recoveries, personalized care, and Medicare / Medicaid savings – to name just a few.  Instead of these cuts, policy-makers should be making home care and hospice a meaningful part of health care reform and a reality for more Americans.

Included with these drastic cuts to education and healthcare, the budget includes provisions to increase taxes.  These taxes include a new individual and corporate income surtax, an increase in the sales tax rate, and an increase in excise taxes.  Furthermore, the state incorporated a sales tax to be paid upon the purchase of digital downloads and other online purchases.  Regarding the income tax surcharge, married couples earning more than $250,000 annually will now pay a 3% surcharge, while those with incomes between $100,000 and $250,000 will pay 2%.  Through these measures, the state is expecting to raise approx. $990 million to offset part of the budget shortfall.

Also, the Senate President Pro Tempore announced, today in Session, that we will be called back into session late Fall to discuss implementing taxes on services legislation.  For the record, this is not a proposal that I support.

Other Business …

Below are a few key bills that may be of interest to you:

 Bills worth watching that were heard in Senate Committees this week

SB 968 – Mountain Resources Planning

SB 1068 – Permitting of Wind Energy Facilities

HB 104 – Clarify Legislative Confidentiality

HB 512 – Incentives for Energy Conservation

HB 1099 – Amend Environmental Laws 2009

HB 1236 – Promote Water Use Efficiency

 Bills worth watching that were heard in House Committees this week

 SB 807 – Public Safety Registration

SB 838 – Environmental Technical Corrections 2009

SB 982 – Small Business Assistance Fund

SB 1067 – Sustainable Local Food Policy Council/Goal

This week, the Senate finally voted on SB 460, “The Puppy Mill Bill.”  As outlined in past newsletters, the act will “insure that animals, as items of commerce, are provided humane care and treatment by regulating the transportation, commercial breeding, sale, purchase, housing, care, handling and treatment of such animals by persons or organizations engaged in transporting, breeding, buying, or selling them.”  After reviewing and assessing all changes made to the legislation (and there were many), I was unable to vote-for the bill.  Even though I support the humane care and treatment of all animals, I believe the bill is over-reaching.  Although the legislation was objected-to on Tuesday, the bill passed its Third Reading, with a vote of 23 in favor and 22 in opposition, Wednesday evening.  The bill is currently in the House for concurrence.

Another bill that we continue to receive significant input regarding is House Bill 1305 – Beach Plan Changes.  The current financial condition of the Beach Plan is unacceptable.  If major reform is not enacted before the next hurricane hits North Carolina, residents statewide will suffer in the form of higher rates and fewer insurance choices.  If insurance carriers leave the state, as has happened in Florida, North Carolina taxpayers will ultimately be on the hook.  Rates will stabilize as a result of this bill.  Otherwise, we will have a situation where all rates will increase across the state.  House Bill 1305 will help restore the Beach Plan as the market of last resort, map out a major storm financial recovery plan, and foster competition in the state.  The bill easily passed the Senate, with a vote of 42 in favor and 5 in opposition.  I voted for the legislation.  The bill is now in the House for concurrence.

Need to make purchases and want to save money? … 

I want to remind you about the upcoming Sales Tax Free Weekend August 7^th through 9^th.  Lately we have all been tightening our belts.  This is a great opportunity to save money while getting the supplies and clothing you and your family need.  The Sales Tax Free Weekend applies to:

 - Clothing, footwear, and school supplies under $ 100

 - Sports and recreation equipment under $ 50

 - Computers under $ 3,500

 - Computer equipment under $ 250

Want to see back issues of Senator Clary’s Newsletters or view interesting News Clips? …

Please visit our site at:  www.senatorclary.com.

 Thanks as always for your support and for the honor and privilege of serving as your Senator!

“Freedom is never more than one generation away from extinction.  We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children and our children’s children what it was once like in the United States where men were free.”

…..Ronald Reagan

From the desk of Senator Debbie Clary…

Last week, it appeared that the budget impasse may have been broken; however, Senate leaders are back at the negotiating table following objections by Governor Perdue.  Budget conferees reportedly agreed on a plan to raise the additional funds needed to produce a balanced budget.  The plan would raise more than $980 million in new revenue for 2009-2010, largely relying on a 1-cent sales tax increase, increased taxes on cigarettes and alcohol, and a 2% surcharge on state income tax liabilities owed by individuals and corporations.  Negotiators decided not to tackle modernization of the sales tax base by expanding the sales tax to include certain services, as had been discussed previously.  This latest development is sure to disrupt the timetable that could have had both chambers ready to vote on a budget plan prior to the expiration of the second continuing resolution July 31^st.  As most of you are aware, I have no intention of voting for the tax increases included in this budget.

As always, we have been working hard in committee to determine the best policy for important legislation.  Below are a few key bills that may be of interest to you:

Bills worth watching that were heard in Senate Committees this week

SB 849 – Repeal Motor Vehicle Safety Inspections

HB 530 – Utilities/Carrier of Last Resort

HB 578 – Partition Sales/Commissioners, Sellers, Buyers

HB 1261 – Protect Our Kids/Cyber Bullying Misdemeanor

HB 1377 – Taxpayer Optimization Act

HB 1447 – Crime Stoppers Tips Are Confidential

 Bills worth watching that were heard in House Committees this week 

SB 488 – Establish Proportionate Sentence Lengths

SB 884 – Smoking Prohibition Exemption

SB 955 – Bicycle Lights at Night

SB 974 – Consumer Economic Protection Act of 2009

SB 990 – Increase Penalty/Timber Theft

HB 327 – Right to Publicity

HB 1140 – Educ. Assistance for Minimum Wage Workers

HB 1579 – Increase Alcohol Taxes

Once again, our office has been receiving an enormous amount of correspondence regarding SB 460, “The Puppy Mill Bill.”  As outlined in past newsletters, the act will “insure that animals, as items of commerce, are provided humane care and treatment by regulating the transportation, commercial breeding, sale, purchase, housing, care, handling and treatment of such animals by persons or organizations engaged in transporting, breeding, buying, or selling them.”  Uncertain of what alterations will occur in committee, I am not in a position to either support or oppose the bill until I’ve seen a final copy and assessed the impact it will have on Cleveland and Rutherford Counties.  I would like to thank everyone who has contacted our office and provided input on this, and all other, legislation.

Another bill that we continue to receive significant input regarding is House Bill 1305 – Beach Plan Changes.  There has been confusion, throughout the state, related to possible increases in premiums.  It is important to note that the legislation does not automatically increase insurance premiums by 10%.  The premiums would only have an increase of up to 10% if: a massive storm or series of storms causes damage in a year that exceeds the Beach Plan surplus (now approx. $800 million), reinsurance held by the Beach Plan (currently holds $1.2 billion of reinsurance), AND the $1 billion that will be paid by homeowner’s insurance companies doing business in North Carolina.  If a major storm were to hit the North Carolina coast, the Beach Plan would assess all homeowner’s insurance companies doing business in NC for the losses based on the amount of homeowner’s insurance the companies write outside the beach and coastal area.  Those losses could exceed billions of dollars.  Some companies doing business in North Carolina could not withstand those assessments … and have made the decision to leave the state or reduce the number of policies here in NC to reduce their losses.  If insurance carriers leave the state, as has happened in Florida, North Carolina taxpayers will ultimately be on the hook.  Rates will stabilize as a result of this bill.  Otherwise, we will have a situation where all rates will increase across the state.  The bill is currently in the Senate Commerce Committee.  If it is found to be favorable, it will then be re-referred to the Finance Committee.

After much debate, the House passed HB 524 “Annexation – Omnibus Changes,” last Thursday.  The bill makes significant changes to the state’s annexation laws and includes many of the provisions sought by county and local governments.  These stipulations include increasing density standards for urbanizing areas, establishing June 30 as the effective date for an involuntary annexation, allowing for a public referendum in some cases, requiring the municipality to provide water and sewer services within three years, and allowing for joint utilities planning between the county and municipality.  The bill will undergo significant scrutiny in the Senate.  If the bill does not pass the Senate by the end of the long session, it will remain eligible for consideration in the 2010 short session.

On Monday, a conference report for Senate Bill 708 – Amend the Compulsory School Attendance Law – was adopted and ratified.  The original bill established that “every parent, guardian, or custodian in the state having charge or control of a child, ages seven through sixteen, or for a child less than seven years of age if enrolled in grades kindergarten through two, must cause compulsory school attendance.”  The legislation also required all nonpublic schools to adopt and enforce equivalent attendance requirements, as well as to keep and render records of attendance.  Although the current bill makes mostly technical and stylistic changes, it also specifies that a principal, or a principal’s designee, may provide notices of and/or excuse excessive absences.

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Thanks as always for your support and for the honor and privilege of serving as your Senator!

Rumors abound regarding progress on budget negotiations and end-of-session estimates range from two weeks to two months.  While there appears to be general agreement on the spending plan and the amount of new revenues to support the plan ($990 million), there appears to be little agreement on how those new dollars are to be raised.  As noted in previous newsletters, the Senate is advocating for a restructured sales tax system that broadens the base and lowers the rates; the House favors fewer services subject to sales taxes but an overall increase on sales tax rates.  Additionally, the House is pushing for greater income taxes on upper income brackets. (more…)

I hope everyone had a fun, safe, and relaxing July 4^th weekend!  Thanks to all for your invites!  I had a great time spending this holiday with your families and neighbors as well as mine.

In regard to the budget, work is still being done to have it completed by the July 15^th expiration of the continuing resolution.  As stated in last week’s newsletter, the Continuing Budget Resolution continues funding the 2008-2009 fiscal year budget of $21.3 billion at 85% and includes several changes to keep the state operating while legislators hammer out a new spending plan for 2009-2011.  While much attention is focused on the nature of any revenue package, other issues have the attention of counties.  A couple of these issues include the possibility that secondary road funding costs could be shifted to counties and/or the state could close 16 regional child support offices that support 28 counties and shift those responsibilities to those local districts. (more…)