Public schools see cuts eased in NC House budget

RALEIGH, N.C. (AP) ? House budget panels approved Thursday large portions of their blueprint for North Carolina state government spending next year that restore funds to the public schools but leave intact many cuts to other agencies already approved last year.

The six House budget subcommittees led by Republicans recommended adjustments to the second year of the two-year state budget implemented last year despite Democratic Gov. Beverly Perdue's veto.

All the proposed adjustments for the $19.9 billion plan starting July 1 will be rolled into one bill scheduled to be debated and voted on next week by the full House. The Senate will pass its own version later, and the two chambers will work out differences before a compromise is presented to Perdue.

The education subcommittee made the biggest splash by agreeing to reduce the expected $503 million in state money that school districts would have been required to return next school year to $170 million.

Similar reduction mandates for the University of North Carolina and community college system were narrowed slightly, however. In other subcommittees, lawmakers agreed to increase the state's pre-kindergarten program by nearly 1,800 additional students next year but kept in place the same 20 percent spending cut for the Smart Start early childhood initiative already required this year.

Rep. Harold Brubaker, R-Randolph, senior chairman of the House Appropriations Committee, said budget-writers benefited from a projected revenue surplus of more than $200 million this year and unused pots of money elsewhere to help relieve public schools.

Republicans in charge of the Legislature disagreed with Perdue's proposal last month and don't plan on raising taxes by three-quarters of a penny as she sought to restore even more cuts approved last year.

"We only have 'X' number of dollars to work with and we were not increasing taxes, increasing fees," Brubaker said. "We're pulling together a budget to live within our means."

The public school change prevents a previously approved $74 million increase in funds that would have to be returned by school systems and makes up for $259 million in federal funds districts have used to hire school personnel and will vanish for the next school year. Some state lottery proceeds also are used to narrow the reduction.

The districts get to decide how to make these so-called "mandatory reversions" but school leaders say they've now got few options beyond cutting classroom personnel. The federal funds had helped districts hire 5,400 workers this school year.

The lower proposed amount districts must return hopefully "means we're keeping teachers, teacher assistants and essential support personnel in our schools," said Katherine Joyce, a lobbyist for the North Carolina Association of School Administrators.

Perdue said in a statement the subcommittees' proposal didn't go far enough. Perdue's budget would have used the extra revenue from her tax increase to eliminate the $503 million cut entirely ? a move she said would generate thousands of education positions. She said the plan also falls short on pre-kindergarten, Smart Start and military-related programs.

"The House's actions on education today barely maintain the status quo," Perdue said.

Rep. Bryan Holloway, R-Stokes, co-chairman of the House education budget subcommittee, said the $170 million reduction is better than the more than $300 million in cuts the Democratic-led General Assembly required of districts in 2010.

"I believe this is a very good education budget, and I think that it's going to be very difficult to argue against it," Holloway said.

Rep. Rick Glazier, D-Cumberland, an education subcommittee member, didn't know if some House Democrats would vote for the entire budget bill next week. Five House Democrats voted for the budget last year in helping overturn Perdue's veto. Glazier wasn't one of them.

"It would be hard pressed for me to vote for this budget given the overall target and what it continues to do to public education," Glazier said.

The House proposal also failed to provide money specifically for UNC enrollment or higher need-based financial aid ? items that are likely to be points of controversy with the Republican-led Senate.

Other subcommittees rolled out plans that would:

? locate more funds for a scholarship program for teachers and the summer Governor's Schools for high school students.

? spend $664,000 so that the state can tap into $4 million in federal funds for more early voting sites and voting machine maintenance.

? delay for one year the collection of new or higher tolls on several ferry routes. The Legislature and Perdue have been at odds over the tolls.

? spend an additional $169 million on Medicaid to reflect higher than projected growth.

? close an Edgecombe County youth development center for juvenile delinquents.

Portions of the budget weren't released Thursday. Brubaker said top budget-leaders had yet to decide whether to propose a recurring salary increase or one-time bonus to government employees.

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