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Legislative Report #05-25

Report 05-25
July 22, 2005

GENERAL ASSEMBLY EXTENDS BUDGET DEADLINE

The Senate and House this week gave unanimous approval to a second continuing resolution (House Bill 1631) extending state operations through August 5. State budget negotiators continued to work to resolve differences between House and Senate versions of the proposed budget. Apparently, state employee pay raises and changes in State Health Plan benefits are two of the areas where the budget conferees are having difficulty reaching agreement.

The continuing resolution appropriates $208 million for public schools, community colleges, the University system, and private colleges. These funds are needed to address forecast enrollment increases at these educational institutions.

On Wednesday, Governor Easley also directed the Office of State Budget and Management in Executive Order 80 to release $75 million in additional funding for the low wealth public schools, at-risk students, teacher recruitment, high school reform, and pre-kindergarten programs. The Governor cited the opening of the school year in August and the directives issued by the Supreme Court in the wake of the recent Leandro ruling as the reasons for bypassing the normal legislative process.

COMMITTEE ACTIVITIES

The scheduling of standing committee meetings has been limited to accommodate the ongoing budget negotiations. There were no committee meetings dealing with retirement-related legislation this week.