North Carolina Now; North Carolina Now Episode from 05/11/1998

It's Monday May 11th. Tonight state legislators face some tough issues as they reconvene in North Carolina now. With Hello everyone a pleasant Monday evening to you I'm rid of a tray with a vote tonight's edition of North Carolina now to the opening day of the short session of the General Assembly. Lawmakers convened at noon today for the ceremonial opening of the legislative session. House Speaker Harold Brooks-Baker gavel the session to order and the tightly packed recently restored House chamber in the old capitol building. A similar ceremony headed by Lieutenant Governor Dennis Wicker was held in the old Senate chambers. Legislators will officially get down the business tomorrow in an attempt to tackle many pressing issues among them whether to cut taxes at a time when Governor Hunt wants to increase spending on education. One tax in particular that's being

eyeballed is the state sales tax on food. Both the House and the Senate agree the tax should be repealed. But the point of debate is how and when to do it. The elimination of the food tax is expected to save taxpayers over 200 million dollars a year. Sonya Williams has the story. Meet Cheryl mother of two with another child on the way. Both she and her husband say their growing family is increasing their grocery bill year after year on average at least between two or four times a week and spend anywhere between 150 and 200 dollars a week on food and it's a huge expense and my household and the Russells are not alone. Millions of families spend at least a portion of their income on food. Now lawmakers are trying to lighten the financial load by eventually eliminating the state's sales tax on food.

When you're talking about tax relief one of the fairest ways to make it equitable towards people with a low and moderate income and of a income scale is to eliminate the state sales tax on food because people generally with lower incomes pay more their income. For food bought for home consumption bought to cook at home. The Do people at the higher end about twice as much their income as matter of fact. So women eating the food tax actually helps those who could use a little bit more of their money. The money kept in their own pockets of the North Carolina Budget in tax than Or it says eliminating the food tax would benefit everyone in the state. Sales taxes generally are are not very visible it's not like your property tax or income tax where you see the total amount you're paying at least once a year the sales tax is just bleeding you to death one $1 at a time or a few pennies at a time. The state's 4 percent food tax was first enacted in 1961 as a temporary tax. It remained the same until 1996 with the tax from 1 percent to 3 percent. Been last year they reduced it to 2 percent effective

July 1st of this year when the tax was put on initially. If you recall the discussion I wasn't involved in politics or in the state at that time it was a tax for schools and people bought into that concept I believe so much in public education as we do and I own and it's just a common historical source of revenue for the general fund that's wrong. People should have to pay a tax on something I believe that's essential for living such as food. It's just an onerous way to support state government and it is a vote of it and a lot of us have been trying to get rid of it for 10 years. I've been an opponent of the food tax since I first came in North Carolina in 1975 and I put in the first bill I put in against the food tax was in 1901 during my first term. Representative Paul Lukey has been particularly vocal on repealing the food tax as well as organizations like the League of Women Voters. What we what we have done since March of 95 we have asked people and people have collected there Rick grocery receipts

every time you go to the grocery store. We said collect your grocery receipts circle the sales tax on food. Put a big X across it right no. Put a note to your legislators save a couple of them put them in a novel and send them off to legislators. The group is also marched in their local parades wearing strings of grocery receipts and curing handmade signs against the food tax. CLIN says the immediate positive response they received is a sign that North Carolinians want relief budget experts say each penny that's cut from the sales tax on food will save taxpayers about 90 million dollars a year which translates to about $80 a year for the typical family of four. Still the savings for taxpayers is also a corresponding loss for the state treasury. But experts agree it's a tax cut that's affordable and one whose time has come. I think that that there's more awareness more discussion about what is a fair tax to watch tax has has a negative impact on middle and low

income people and we are a state that's doing well economically so we can we can choose whether we are in a position to cut taxes and overall both the House and Senate agree the food tax does need to be repealed. The real point of debate is when and how Governor Hunt has suggested phasing out the tax beginning next year. Senate Democrats are not opposed to the phasing out plan but some would like to see it happen sooner. And House Republicans want to eliminate the tax altogether by October 1st of this year. I think we've got the time with an extraordinary surplus coming up confronting the session and then the state can readily afford not to these tax reduction initiatives that the Republicans are offering including the immediate elimination of the food tax. We've had it in fact now for almost 40 years. There's no point in me doing away not going to head and dispose of the sex right now eliminating the food tax is just part of a list of tax cuts House Republicans want this session. Others include reducing income taxes by increasing

personal exemptions repealing the inheritance tax and raising the homestead exemption to provide tax relief for elderly property owners. Senate Democrats say these tax cuts will take a huge chunk of the budget surplus at a time when Governor Hahn is pushing for teacher pay raises and expanding smart start his early childhood initiative to all 100 counties. But House Republicans insist now is the best time for tax cuts. They total I think about two hundred twenty million dollars in their total effect. We've got a budget surplus of one point two billion dollars. I think that some it can readily be done and should be done as lawmakers negotiate a timeline for repealing the food tax shoppers and organizations say they hope an agreement is reached sooner rather than later and that any cut from this 37 year old tax is a welcomed relief. Other than the average it would be very helpful I think in a year's process with no difference as far as how much you've spent and how much you have versus how to say it's very helpful.

Most counties have their own 2 percent sales tax on food in addition to the state tax therefore if the state tax is repealed most shoppers must still pay the 2 percent local tax. Still ahead how this year's actions of the General Assembly will impact business in our state. But first Michel Louis is here with a rundown of the legislative agenda for this short session plus a review of the rest of today's statewide news getting the match. Thanks Maria. Good evening everyone. State lawmakers have a long list of legislative items to consider during the 1998 short session. Included among the major issues are the redrawing of the state's congressional districts. A federal court has given the Legislature until May 22nd to come up with a new district map. Legislators may also be undertaking a rewrite of campaign finance laws. Changes in juvenile justice laws reforming the state Department of Transportation and a recent state Supreme Court decision on taxing the pensions of government retirees will force the legislature to consider how to refund more than one billion dollars out of the state fund. The massive amount of

work facing the General Assembly has some observers speculating the short session will not be all that short. State officials are weighing what they see to be the impact of a proposed federal tobacco bill. State agriculture commissioner Jim Graham says passage of the tobacco measure could cost the state between 17000 and 44000 jobs. Cutting state and local government revenues between three hundred forty six million and eight hundred seventy nine million dollars. Commissioner Graham says increasing taxes on tobacco will not deter teenage smoking. And parents need to be the watchdogs of their children not Congress. Allegations of sexual activity at two state schools for deaf children have led to an examination of state run residential schools for disabled and troubled youth. Peter Leo says Assistant Secretary of Health and Human Services says 11 schools will be studied in areas ranging from academics to school safety. The schools that prompted the reviews are the central school for the deaf and Greensboro and the Eastern school for the deaf and Wilson Elsa's believes the state is doing a good job of ensuring the safety of students but says it needs to be

known if the allegations are random or if there is a deficiency in the system. Seven North Carolina counties have been ranked in the top 100 counties in the U.S. for dumping the most chemical pollution into the environment. A website created by the Environmental Defense Fund ranks Beaufort County the highest of North Carolina counties releasing 13 million pounds of chemical pollution in 1995. Other North Carolina counties making the list are New Hanover Brunswick Haywood Columbus Caldwell and could top up. The website is located at w w w dot scorecard dot org slash NV dash releases. And now for a look at tomorrow's weather. High temperatures will be in the 70s when most of the state. Boone and Elizabeth City should be a little cooler. Most of the states should see cloudy conditions early in the day with partly sunny skies expected in the afternoon. In business news the State Budget Office has run into criticism over its disbursement of money from discretionary funds. The state auditor's office found in many instances the budget office failed to obtain the proper paperwork required by

state law before giving out the funds. According to the audit the budget office sent out checks to 94 private agencies before receiving the required conflict of interest documents. Nineteen of those agencies have yet to file the forms and official with the budget office says the agency is working to bring the office into compliance with the law. And now for a look at what happened on Wall Street today. But what a one

on one. How will the actions taken during this year's short legislative session impact our state's business community. Members of the organization North Carolina Citizens for business and industry will find out tomorrow during their 13th Annual Legislative Conference. And joining me now is the president and secretary of NC CBI Phil Kirk. Mr. Kirk welcome to the program. Glad to be here thank you for having me. Tell us a little bit first about North Carolina Citizens for business and industry. We're an organization that serves as a state Chamber of Commerce. We do primarily great things but the main one we're interested in today is our lobbying efforts on the General Assembly. We also publish the North Carolina magazine and other business but Terrell's and we provide networking opportunities for our members. We have eighteen hundred twenty five members located in 86 counties and they're all sizes and types of businesses

educational institutions professional associations attorneys. Big business the business of small business so we're very diversified. Grow up and wear a voluntary association people buy IDs to be members. So tell us about this conference that you're having tomorrow. We used to have a legislative conference every other year before the long session. As you know this year and we jokingly say the short session we hope it'll be short. But with all the challenges that are facing our general assembly we're concerned this year it might not be so short at all. In fact the bats are already been taken that they'll be in town all summer and might be here until after Labor Day because of some of the issues. What are some of those issues that are of particular importance to the business community the coort has had several issues to the legislature just within the past several weeks and I cannot remember that happening. The legislature has to redraw all the congressional districts within the next two weeks that if they don't then the court will do it. So back on our campaign finance system

about corporate contributions about reporting about limits on expenditures that's been ruled unconstitutional by the courts so they may address that. And then the biggest shocker just happened over the weekend when the court ruled that the state had illegally taxed the pitch and benefits of state retirees. They're going to have to go back to 1989 when they started collecting the tax. State government retired people's pensions were not taxed before and then they were taxed beginning in 89. And the court ruled that the legislature should not have done that because of a previous agreement that they had made with state employees that total tab will come to over one billion dollars. That's going to mess up the budget projections. So those are just really court related issues the list goes on and on. Well that last issue that you mentioned there about the taxing on the pensions that's an issue that has so many different implications for so many different areas particularly the state budget. But how is the

business community looking at that issue what interest do you have in that in particular. Of course we feel that the money needs to be paid back since it was collected and should not have been. But we're hopeful that the court will that it be paid back over two or three year period so that it won't completely wreck the budget. The governor has submitted his budget. Proposal to the legislature he did that before the ruling from the court. If we can have it paid back over several years and we have a 500 million dollar running day fund if part of that money can be used to pay back that it won't it won't cause a tremendous amount of harm but the business community is concerned about education. We're concerned about the juvenile justice issues. We're concerned about tax relief we in particular would like to see the inheritance tax repeal during this session of the legislature. We're also concerned about a number of other issues so we'll be looking carefully at the legislature this session and decide the main purpose of the

conference tomorrow is to educate our members on the business issues. We're also interested in doing that so they can effectively lobby the members of the General Assembly. There are a lot of economic development types of issues tax incentives tax price improvement for community college trying of employees. We're all interested in a better education system for our for our young people and for our students so you know almost every issue you can think of affects the business community. You had mentioned at the beginning of this interview that you have a very diverse group within your membership small businesses and large businesses. Those seem to be the types of businesses that maybe have. Different interests do you lobby as a group. We have Abi as a group and to be candid with you if there is an issue that divides our membership we usually have to take a neutral position. For example some of our members wanted to maybe a deregulation of the electric utility issue a year or two ago others wanted to take a go slow approach so we had to support the creation of a

study commission because issues are so complex on the issue of a lottery we've not taken a position because we've got a lot of members on both sides and as I tell people some of my friends are forward some are against it and we're with our friends so we don't like opposition if our membership is bitterly or evenly divided. Any ideas of this session any divisive issues in this session coming up. Well the main focus of this session will be and is supposed to be the budget. And how to spend the money whether to spend it all whether to give some tax relief whether to save some of it. How to divide up the pie. We've got a huge surplus. We have between one and one point grea billion dollars and 1.4 billion dollars in new money that the governor is recommending baseband some of the people in the legislature want to save some of it. Others want to give tax relief. You know probably like most legislatures they'll do they'll say they'll spend and they'll cut taxes.

Mr. Kirk I appreciate your being here tonight wish you well on your conference and I thank you for bringing a new perspective to this legislative session. Thank you very much. And if you would like more information about North Carolina Citizens for business and industry you can call 9 1 9 8 3 6 14:00 or you can visit their website at w w w dot and CC. B I dot org. Walking into the legislative building to see what our elected representatives are doing is probably not on the top of your list of things to do well in Raleigh. Perhaps it should although the

legislative process like the building appears to be cold and confusing. Producer Derek long discovered that it's not such an intimidating place after all. It began like any other assignment. Yeah mysterious voice on the phone. We have information Mr. Lowe some rather suspicious activity of putting it rather than the 16 list Jones Street. Check it out. Why I had that feeling in my gut like the kind of feeling you get from too much greasy barbecue and I too like the kind of feeling that told me this Joe would lead me someplace I didn't particularly want to go.

The North Carolina General Assembly. My job to get inside and find out what every citizen needs to know about their legislature getting in was easy. I just walked through the door. I'm here to find out what I can about the logistics. You're the ripe lice we've got the Senate counters here and the house calendar and all the calendars they are telling you what time they make and they come to me when they are me and the right numbers. But before you get much for the minute of my act and if you need private information that counters it right here from the prez harks off the House and Senate is a rat and I have all the information. I thank you very much. Come and see us. I took the ladies advice and set out for the principal clerk's office the dimly lit corridors made me feel like a lab rat in a behavior modification experiment gone sour.

Fortunately I had a map. I found the elevator. The second floor and finally behind the two chambers the principal clerk's office and the motherlode seating charts office assignments phone numbers numbers occupations representation by counties that have been introduced members birthdays listed chronologically legislative seniority charts district maps mailing addresses committee assignments and even a chart on how a bill becomes a law. It was all there. Everything you might want to know and more. They say one of the best kept secrets of the legislature is the basement cafeteria. You can get a good meal for a price and maybe here's a guess. I met my contact there for coffee and he spilled the beans. Well if you come down and see how actually government works and see the committee's work and see the floor and see the debate I think it really did mystifies the process you have a right as a citizen to get a copy

of anything that they discuss for the most part. And there's a place called printing bills and you can ask for a copy of any bill this man or this issue here. And there's also computer there on which where everything is online or you if you know like your legislator Jones introduced a bill you can find it find out what he or she is introducing get copies of that before you go see him which is a good idea if you have computer you can do this from home you can find out a lot of information before you come here and there are legislative libraries that are available to citizens. That's a good place if you're totally confused and you want little information about what's going on I would definitely go to the legislative library has one here and one legislative office building. The most important piece of paper to learn how to use is the legislative calendar. It generally list what's going what time the House is going to me Elice where the committees me what's going to take it up in the committees. The next thing is what's going to happen on the floor that day and it breaks them down into first reading second reading third readings which is all part of the parliamentary process. Committees are inching because that's where actually most of the things that are important people either live or die or are considered or not considered. If you have a chance to come here for a

very controversial committee meeting you need to get here probably be the first one in the room make sure that you get a seat. And occasionally they will let members of the public come in on the ideas that get debris arrange that with the chairman of a committee. It's usually the committee meetings or in the mornings and they break for lunch and then a session starts at 1:30 or 2:00 in the afternoon. And both the House and Senate only people are allowed on the floor legislative staff reporters and legislators all the former legislators are extended the courtesies of the floor which means you don't have to curtsey or anything but you get to walk on the floor which makes it confusing because a lot of former legislators are lobbyists the lobbyist aren't allowed on the floor unless reform legislators in which case they are allowed on the floor. So I think it's very confusing but you can only sit in the in the legislative galleries which are on the third floor and look down kind of like the the Romans and the Christians and the Lions although Magoo which of those legislators would be. It seems very tedious and seems very boring but it also affects everything in our life from how much tax we pay how fast we

drive whether or not we have health care insurance how much we make our job with the minimum wage or whether our water air reclaiming all those decisions and many many thousands more are made by then women who sit in the seats. You know we look down on from the gallery and really ultimately the only way we can think about change in politics and government is to figure out a way were all of us as citizens and can talk to them or are going to call the work and see them or hear and watch and make sure they're doing what we set them up here to do. And so like a script in a B movie comes to any. You got the lowdown on number 16 West Jones streak in me when I get a parking ticket. But that's a different story. Maybe one day you'll stop by to see for yourself what goes on behind those doors. I tell you it ain't a pretty sight but it's certainly something to see. The common

sense foundation publishes a guide to the legislature for more information on how to obtain a copy. You can call 9 1 9 8 2 1 9 2 7 0. Or for more information about the General Assembly call 9 1 9 7 3 3 4 1 1 1. Well that's all we have time for tonight. We will see you back here tomorrow. Goodnight everyone.