With the state budget at an impasse, Republican leaders are lambasting Gov. Roy Cooper, saying a looming, seemingly imminent veto override due to the governor’s “Medicaid ultimatum” would take project funding off the table for many communities, including tens of millions in Sampson alone.

Democrats say GOP lawmakers have been unwilling to compromise, especially in the budget’s “failing” healthcare allocations.

If no budget deal is reached in North Carolina there will not be a government shutdown. State spending will simply continue at current levels, but lawmakers said that would put $20 million in project funding for Sampson up in the air.

Sen. Brent Jackson (R-Sampson), who represents the 10th Senatorial district, including Sampson, Johnston and Duplin counties, released a statement Monday chiding the governor’s “Medicaid expansion ultimatum.” He said Democratic Gov. Roy Cooper in essence vetoed $79 million in funding for Sampson, Duplin and Johnston counties.

“Democrats gave away their votes to the governor so his veto couldn’t be overridden,” Jackson stated Monday, noting funding for the counties he represents is now “uncertain” as “Cooper refuses to negotiate budget separately from Medicaid ultimatum.”

”It’s not right to block all this funding just because of one policy disagreement,” Jackson stated. “The governor is holding Sampson, Duplin and Johnston counties’ funding hostage over Medicaid expansion, and he refuses to drop his ultimatum so negotiations on the budget can move forward.”

Jackson included 19 different line items ranging from $55 million in capital funding for K-12 schools to millions in capital finding for community colleges in the three counties, as well as funding for court officials that he said was “blocked” due to the governor’s veto.

Among the funding he cited for Sampson was $5 million in capital funding for Sampson Community College, $3.5 million for the construction of a new Emergency Management Center (total cost estimated at $7 million); $1 million for water and sewer infrastructure; and $15,000 for exterior building and landscape improvements at Sampson County History Museum.

Also noted in the budget, a $230,000 in funding was proposed for Tarheel ChalleNGe Academy for the construction of a multipurpose facility. Back in 2016, $700,000 was earmarked for the facility, which academy officials said would require a two-phase project totaling $1.4 million.

Earlier this month, Rep. Raymond E. Smith Jr., who currently serves the 21st House District, including much of Sampson and Wayne counties, noted approximately $20 million in local projects earmarked for Sampson County in the budget.

“This would be a tremendous windfall for our community,” he stated, citing $12 million for Sampson County Schools, $4.3 million for Clinton City Schools and $3.5 million for Sampson County Emergency Management.

“However, I voted against the conference report because there is much more that we can do to make this budget better,” Smith stated. “This budget does a tremendous job of facilitating projects, but it fails miserably when it comes to taking care of people. The purpose of the governor’s veto was to force Republicans and Democrats to sit down with one another and negotiate a compromise that will make this a better budget for the people of North Carolina.”

Among the main shortcomings of the budget, Smith said it fails to expand Medicaid to close the health care coverage gap for 500,000 North Carolinians. In Sampson alone, he said there are 2,761 individuals that will not be able to access healthcare.

”In addition to being able to assist our community with fighting the opioid crisis,” Smith said, “we stand to lose an estimated 111 jobs that would be created through expanding Medicaid.”

“Not only does the budget fail to expand health care in North Carolina, it actually cuts it,” the freshman representative said. “The House and Senate budget imposes a $42 million cut to the Department of Health and Human Services. It is the largest cut in two decades to DHHS, that will likely result in the loss of numerous services and numerous jobs. This cut occurs in a budget with a $363 million corporate tax cut and $353 million dollars in earmarks (pork projects).”

The budget proposes a 5 percent pay increase to only 27 percent of our state employees, but it fails to provide any increases for retirees, Smith noted. Non-certified school personnel, community college and UNC System employees will not receive the pay hike, nor will school teachers that have less than 15 years of experience, he said.

Smith previously expressed optimism that if the two sides can get together and “actually negotiate in good faith,” that Sampson will retain the $20 million for local projects, while tending to Medicaid expansion, DHHS and “provide the appropriate pay increases for all state employees and retirees.”

“If the governor’s veto is upheld, legislative leaders will be forced to start over with the budget, and work together to find a reasonable compromise,” said Smith. “We have to do a better job at working together so that all North Carolinians in every neighborhood will have better opportunities to lead healthy, fulfilling lives.”

In his veto at the end of last month, Cooper simply stated, “This is a bad budget with the wrong priorities. We should be investing in public schools, teacher pay and health care instead of more tax breaks for corporations.”

The drive to enact a new North Carolina state budget idled last week even as Cooper made a counteroffer to the two-year plan he’s already vetoed, and Republicans failed again to locate enough votes to override him.

Democratic seat gains in the 2018 elections mean GOP lawmakers now lack veto-proof control in both the House and Senate, which they had the previous two years.

Still, in a sign that an override may not happen and any budget compromise could be weeks away, House budget-writers said last week they would advance a separate measure to help fund more government programs in the new fiscal year that began July 1.

Cooper said his offer was a “serious compromise” that he hoped would ultimately lead to a final budget deal.

“We have put now a very specific proposal on the table,” Cooper said. “This opens up the matter to serious negotiations and give and take.”

Cooper insisted that Medicaid expansion must be included in part of any agreement, even though Senate Republicans remain strongly opposed to the idea. Negotiations won’t happen, according to Senate leader Phil Berger, unless the governor takes his “Medicaid ultimatum” off the table for budget talks.

Many GOP leaders, including Jackson, put out similar statements referring to Cooper’s “Medicaid ultimatum” blocking funding.

Separate from Medicaid expansion, Cooper’s offer would tell Republicans to eliminate their proposed corporate franchise tax cuts and halt planned enrollment increases in a program that gives taxpayer-funded scholarships to K-12 students to attend private or religious schools. Cooper is opposed to vouchers.

He still wants to put a $3.5 billion bond package before voters for public schools and other government buildings. Republicans agreed to build by using existing tax revenues, not by borrowing. Cooper said he would more than double the average teacher pay raise than what Republicans offered — 8.5 percent over two years compared to 3.8 percent in the GOP proposal.

Cooper’s initial budget proposal spends about $500 million more over the next two years than does the $24 billion general fund budget approved by both chambers of the General Assembly in June.

Jackson
https://www.clintonnc.com/wp-content/uploads/2019/07/web1_Jackson-brandnew-1.jpgJackson

Smith
https://www.clintonnc.com/wp-content/uploads/2019/07/web1_Raymond-Smith-2.jpgSmith
Amid budget turmoil, $20M for county up in air

By Chris Berendt

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Wire reports used in this story. Editor Chris Berendt can be reached at 910-592-8137 ext. 2587.