North Carolina Now; Episode from 1999-06-30

It's Wednesday, June 30th tonight, lawmakers reaching agreement in record time in North Carolina now. Good evening, everyone. I'm Marita Matrey for the first time in 20 years. The state has a budget in place before the start of the fiscal year, which begins July 1st. With a stroke of a pen, Governor Hunt today signed the budget for fiscal year's 1999 through 2001. It's a $13.5 billion spending package. In other important action, the full Senate has given tentative approval to a multi-billion dollar bond package to pay for the construction and renovation of the 16 campuses of the University of North Carolina and the state community college system. And legislative correspondent Sonia Williams has been covering the legislature for us and what has been a very busy last couple of days. She's here with an update.

Sonia, the speed at which the General Assembly has reached this budget package, is it simply due to the fact that one party controls both chambers? Well, I don't think that that is the primary reason, Marita, because if you remember, the House Republicans only control the House for four years. And so that means that there have been plenty of years where there's been one party controlling both chambers. And this is the first time in 20 years that they've actually passed a budget before the fiscal year. So I don't think that's the primary reason. I think what sets this year apart from others is that the House and Senate budget leaders have been working together since the beginning on the budget process. So when it came time to negotiate the final differences, there weren't very many items to negotiate. Well, what stands out in your mind as some of the budget items that we should be looking at here? Well, of course, you know, this budget focuses on education. I think about 60% of the budget is dedicated to education. You have a 7.5% pay raise for teachers and $140 million for the ABC plan as bonuses for the ABC plan. And you also have a new initiative for a school breakfast for kindergarteners.

A lot of things in there for education, also some funding community colleges are really big winners in this year's budget and also some funding for the UNC system as well. But I think lawmakers are calling this package a little something for everyone because they have this new initiative for the elderly $500,000 to help elderly people pay for their prescription drugs. And that's a program that got a lot of support in the general assembly this session. So that's also included in the budget. And as far as state employees, there's a 3% pay raise for them and $125 bonus, a one-time bonus. So there is something for the young and the old and those in between. And also, lawmakers took up another important issue today and that is the bond package for the universities. Right, as you recall yesterday, the Senate Finance Committee approved that bill and it was on the Senate floor today. And today, the Senate floor gave tenetative approval to the $3 billion bond proposal after three hours of debate. And that debate primarily centered around Senate Republicans wanting the bond issue to be put to a public vote. The public and Senator Ham Horton sent forth an amendment to change the limited obligation bond to a general obligation bond, which require approval of the voters.

This burden involves not just ourselves, but a future generation. They won't all mature until around 2024 when most of the members of this chamber will be dead and gone. If we are going to commit future generations, as this will do, perhaps the parents of those children who are going to be paying this ought to show the part of the responsibility for saying to that children, yes, are doing the right thing and getting the university where it should be we are willing to undertake extra burdens. The other Senate Republicans echoed Senator Horton's concerns. I would beseech you to seriously consider that it isn't all right thing to let the people vote and that we have a way to do that today. And I believe you will find the House supportive of your position on this and the people would appreciate the opportunity to put their stamp of approval on the debt that several generations are going to have to pay for.

The request of Senate Republicans was denied when Senator Tony Rand sent forth a substitute amendment that the chamber later approved. Rand's proposal requires the UNC Board of Governors to regularly report the status of capital projects to legislators. This would hold both the board and the university chancers more accountable for campus maintenance and improvements. Some Republicans express frustration to this move and to the way the bond proposal has been handled thus far. But I feel like in the last couple of days that I've been rolled over by a giant steam roller. I think and I'm disappointed because I have a real romantic idea of what the university system is all about. And that is to debate ideas and to look at all sides of issues and for people to decide right and wrong based on a lot of debate. The problem with this bill is that we have not had the opportunity to have a lot of debate.

Yesterday in finance committee four minutes were given to those people who wanted to raise points about this bill. But no time limit at all was given to the people who were allowed to speak on the bill. I am perfectly willing to support the kinds of needs that are there and the kinds of needs that are out there in terms of fixing roofs and windows and awful chemistry labs, those sorts of things. But this is not right. We have too much port barrel in this project. We don't have enough scrutiny over what's being done. We are going to rue the day I think that we say to the people of this state we have no faith in you. We don't think that you have the sense to vote on these bills because that's what you all are telling us. Over and over again you've defeated the opportunity for the people of the state to vote on this and to give the universities the support that they deserve.

I will tell you I support the university, I support education. I think the community colleges are sort of an afterthought here. I think they were put in here as an afterthought just to say let's do a little something for the community colleges and let the people think we're doing something for them. Ladies and gentlemen, I feel I must respond to a few things Senator Fox had to say. When she says she's been rolled over there's been no debate and all of that. I would simply say that if she's been rolled over I don't know who rolled it and if it hadn't been a debate it's her fault because she doesn't want to. We've had two meetings just today that lasted for about three hours. Everybody there would be any questions anybody got anything to say. There were a few people who wanted to speak whose time was limited. They had press releases it was mostly a press show. I don't think there's any question about the need. Now some of the things in here are people talk about pork barrel.

This is it we have been very careful in this to go by Mrs. Klein's report. I called every chancellor in the system myself and he said is this your list? Does this reflect your priorities? Yes it is. I would remind you that the campus getting the least of this is Fable State University. So the show and me if it's pork barrel in here somebody better come and explain to me where I've gone wrong. The community college is an afterthought. The community college list is a study which we directed the board of community college to do on facility needs and we have put in here what the board of community college is recommended. An afterthought I would argue to you good public policy and we didn't change the list. It is their list. This is even. Now it's important to note that most Senate Republicans say they do support the idea of bonds and agree that the higher education system needs help with capital improvements. But they still insist that the matter should be decided on by the taxpayers of the state.

And Marita the Senate is scheduled to have a final vote on this proposal tomorrow. So Sonia that's what you're hearing from the Republicans in the Senate. But what are you hearing from the Republicans in the House on this issue? Well I think we can expect to hear much of the same debate from House Republicans as well. They were in the Finance Committee meeting on Tuesday and heard a lot of the testimony. But I think that they too were raising concerns that this is such a huge proposal that the voters should be able to decide. So I think once it's over in the House we can expect to hear much of the same debate. Sonia it's an important issue for the state and I appreciate you taking the time to keep us posted on what's going on. Thank you. Now the standing in support of the UNC bond proposals made a veritable whose list of the state's top leaders. The movers and shakers and education government in the private sector have all gone before members of the General Assembly to speak on behalf of the bonds. John Arnold has this report on some of their testimony. If there was any doubt that the University of North Carolina's $3 billion bond proposal has broad support from state leaders.

It was put to rest yesterday. Some of the state's most influential education, political and business leaders turned out in full force at a Senate Finance Committee meeting. They've always loud and clear their support for a bond that will fund renovations and new facilities and will help support an expected boom in student population. Such an investment is absolutely essential if we are to prepare for this unprecedented increase in enrollment. If we are to prepare our campuses to take advantage of technological change and the pace of change and to be more productive and more competitive as we carry out our research and our technology transfer. Bond supporters say facilities at UNC's campuses and the state's community colleges are critically in need of repair and renovation. Community College President Martin Lancaster told committee members that some buildings on his campuses are more than 30 years old. The bond proposal would provide $300 million to help renovate those buildings.

We have buildings now in most of our campuses because we're 36 years old. That are our 30 years are older. And frankly, we're built at a time when energy conservation was not a big deal. And as a result, they have heating and air conditioning systems that are not energy efficient. They have single pane windows. They also were built at a time when desk and a blackboard were all that was required for instruction. We now have needs much as the university does. In fact, in many of our technical programs, every bit is important if not more so. To retrofit those buildings to meet the needs of our educational programs for the future. Those buildings need to be rewired with fiber optics so that we might take advantage of instructional technology. So that we might equip our labs with the kind of equipment that is seen on factory floors and is making North Carolina a profitable state that is the envy of the nation.

But we cannot do that with old buildings and we cannot do it without your help. That help would provide $2.7 billion for the UNC system along with the 300 million for the community college system. UNC is asking for a limited obligation bond, which unlike a general obligation bond, would not have to be approved by voters because it doesn't pledge the state's tax authority. The $3 billion would be backed by the value of campus land and buildings and would be paid back by the general assembly over 25 years. Obviously, there are questions about why not use general obligation bonds. That is a matter that certainly is within the discretion of the general assembly, but it is not required by the Constitution. And if you take our system of representative government, the general assembly, the people have placed in the general assembly, the obligation of responding to the needs of the state. There is no requirement in the Constitution that the budget of the state of North Carolina be approved by the voters.

There is no requirement in the Constitution that the tax levels and the tax structure be approved by the Constitution and by the voters. The only limitation in the Constitution that speaks to the authority of the general assembly is the occurrence of debt pledging the fact taxing power or the exceeding the limits on the level of taxation that can be imposed. Otherwise, the general assembly has full discretion. Supporters went on to say that historically, the general assembly has supported the needs of higher education. You, the legislature, built one of the finest universities in the country. You established a community college system of 58 institutions all over the state. And together, that combined effort produced in this region, the real reason we're all enjoying the economy, we now celebrate. And that's the research trying. More than eight out of ten jobs to be created in the economy between nine 2010.

We'll require at least 14 years, 14 years of academic preparation, the 12 grades through school, and at least the equivalent of two more years of the community colleges. If you're going to be able to compete economically. Yes, we've got to make these renovations. We've got to add these buildings. We've got to retool these laboratories. If we're going to meet the new technology, the new science, and the new requirements that historically your predecessors have provided. Perhaps the most emphasized point made by bond supporters was an economic one. Phil Kurt, president of North Carolina Citizens for Business and Industry, told the committee that the business community understands the university's needs. And as the former vice chairman of the state board of community colleges, I've been on almost every campus. They're bursting at the seams with over 800,000 students a year taking at least one class.

Many of the buildings are old and in need of repairs. You've heard for the past several years the issue of outdated equipment. This is a serious detriment to the quality and quantity of training and retraining, which is necessary to keep our existing industries healthy. In addition to attracting new industries to our state, it's a great economic development tool. Never before in the history of America has a university education been more important than it is today. We are witnessing the transition to a knowledge-based economy in which the skill and knowledge of our workers will be our greatest competitive advantage. We think we have a plan that we have developed together with you and with Eva Klein Associates and with our university family that will speak well to our university for the years to come. That view is drawing support that reaches across party lines. A former Democratic governor as well as a former Republican governor spoke on behalf of the bond.

The proposal that you have before you is perhaps the most important step for higher education in North Carolina in our lifetimes. With the exception of the structure that was established back in 1971, putting everything in public higher education under one board. The demographics, the numbers that we look at that are facing us as a state over the next decade are really scary. That's just the only way you can say it. Preparing the university to accept the sheer onslaught of additional graduates that are coming out of our high school over the next decade is one of the most challenging things that we will ever face. I can't remember a time when this university has faced a greater challenge.

A successful university operates as a whole. And although we are talking about money for our capital uses here, we are talking about really the development of human resources in this state through the education and training process. But despite the broad support for UNC's proposal is drawn plenty of criticism as well, especially from those who say the public should vote on the bond. So why would the leadership of the General Assembly bypass the voters, put them in debt billions of dollars, risk higher taxes down the road and make the taxpayers pay $39 million for the privilege. I beg to you today to let the people vote on this issue. The second point, the voters have wisely chosen in the past. I think it's unfortunate that we're looking at them that they can't make a wise decision this time. They are intelligent and they've been supportive of our university system in the past and they could again if the case is made. But critics had little time to say much else because they only had a couple of minutes each to voice their concerns.

That limitation irked representative Billy Creech who sat in on the hearing. With all due respect, we've heard two and a half hours of testimony for the bond. We're going to allow six minutes of unbiased or opposition. That seems hardly fair to me. Those concerns aside the prevailing attitude from the meeting was one of confidence and support for the largest bond proposal in the state's history. Our forefathers had the vision, the faith and the courage to create the first public university in America. And today we are asking of you that same vision, courage and faith to invest in the future of the University of North Carolina. We want you to make that investment in the same spirit as our forefathers in the certainty that this is an investment that will keep this state strong for the future. If the bond package passes final approval, it would more than double the state's current bonded debt.

We're still ahead on North Carolina now. We'll look at the spirit of the special Olympics. But first here is Mitchell Lewis with a look at what else is making news around the state. Mitch? Thanks, Maria. Good evening, everyone. Topping the news, a state house committee has begun to take up a proposal that would reduce nitrogen oxide emissions by 25% over the next decade. The bill would require tougher vehicle emission testing and low sulfur gasoline. The content and gasoline sold in the state would be limited to 30 parts per million. Most of the gas sold now is about 300 parts per million sulfur. The provision would go into effect in 2004. The state school board would be required to identify money and programs it would use to help struggling students under a bill approved by a house committee. The proposal is being considered as the school board plans to bring social promotions to an end. In 2002, students in the third, fifth, and eighth grades would have to pass end of grade tests before being promoted. And high school students would be required to pass an exit exam before graduating.

The social promotion bill being considered by the house committee has already been approved by the state senate. A proposed system of appointing judges has been rejected by the state house. The measure which would have required a voter approved constitutional amendment would have allowed the governor to appoint justices to the state Supreme Court. And court of appeals. Those who supported the proposal say that a change is needed in elections because few people are familiar with the candidates running for judgeships. The K-Patterist Lighthouse is continuing its journey to a new home. The structure is now on the back stretch of its move, having already passed the halfway mark. Officials had estimated the structure would only be moved 25 to 100 feet per day. Instead, workers have been able to move the lighthouse up to 200 feet per day. Project managers say the move should be completed by the middle of July. And now for a look at tomorrow's weather, highs across the state will range from the low 80s to low 90s. Most areas can expect partly sunny skies with a slight chance of showers. A new tax on natural gas goes into effect tomorrow, and some North Carolina manufacturers aren't happy about it.

The manufacturers claim the excise tax will hurt their business and undermine competition within the state. The taxes designed to make buyers of out-of-state gas pay as much in taxes as those who do business with in-state distributors. Industrial gas users say the new tax could cost them up to $150,000 a year. The Dow Jones industrial average climbed more than 150 points today to close just below 11,000. The big board increase was spurred by news of the Federal Reserve's decision to raise interest rates by a quarter point. Here's a look at the rest of the numbers. The various sporting competitions of the 1999 Special Olympics World Summer Games are in full swing. And for some of the athletes involved in these games, this is not their first experience with international competition.

In fact, there are two North Carolinians who competed in the very first world games held 30 years ago and are competing this year. Reporter Barclay Todd introduces us to one of these special athletes. When you ask Mike Stone about his chances of meddling in golf, in this year's World Summer Games, they'll tell you he thinks they're pretty good. If I play sworn enough, intelligent enough, I will come out with the gold medal in the World Games. But if you were to ask him 30 years ago, as he was heading off to soldier-filled stadium in Chicago to compete in the first world games in the 50-yard dash and the softball throws, if he thought he would win a medal, you would have gotten a much different answer. Never. Never. I never dreamed of it.

Stone was one of six athletes from the Tar Hill State to compete in the first world games. At the time, he says he didn't know much about Special Olympics and what the organization would later come to mean in his life. No stone didn't medal at those first world games, but he would later go on to compete in other world games and win a gold medal in track and field. Stone also competes each year on the state level in as many as nine different sports, five of which he's meddled in. The 38-year-old poster worker and part-time DJ says the Special Olympics and the World Games have come to mean so much in his life. If I didn't have the chance to do any of those sports, I would not have the chance to do nothing alone. And the Special Olympics folks say they owe so much to Stone. Besides being an athlete, he works as a volunteer for the Special Olympics, coaching other athletes in Bachival. He has also worked as an ambassador helping to spread the word about Special Olympics. Stone says he hopes to get others with mental retardation involved. The Greensboro native says he never thought three decades ago when he first competed in the World Games that they will someday come to his home state of North Carolina.

I'm really excited about it. I'm thrilled, I'm ecstatic. We never have anything like this at all. Never because North Carolina is very lucky to have the World Games here. And the Special Olympics wrap up on the 4th of July with closing ceremonies held at Duke's Wallis Wade Stadium. And that's our program for tonight. Thanks for joining us. Good night. Thank you.