House and Senate conferees worked through the week to find common ground on the state budget for the 2009-2011 biennium. By law, the General Assembly must adopt the biennial budget by midnight June 30 or enact a resolution to continue the operations of state government until a new budget can be agreed upon.
House and Senate leaders still hope to reach agreement on the budget before the deadline. However, as a contingency, the Senate adopted a continuing resolution (Senate Bill 311) on Tuesday, authorizing the operations of state agencies at 85% of the current budgeted expenditures until a new budget is adopted. The House is scheduled to consider an amended version on Monday that sets a deadline of July 15 for budget adoption.
The one significant issue in the proposed budget from our perspective is the funding of the state employer contribution to the Teachers’ and State Employees’ Retirement System (TSERS). The House included the necessary levels of funding for both years of the biennium ($29 million in 2009-10 and $359 million in 2010-11). The Senate budget included funding only for the first year.
If you have not already done so, we ask that you call your House and Senate members. Please urge them to support the House position on full funding for TSERS in the state budget. Inadequate funding could jeopardize the state’s bond rating.
On Thursday, the House approved Senate Bill 658 (Modify Supplemental Retirement Board of Trustees). This bill requires that one of the six seats appointed by the Governor must be filled by a retired state or local government employee. The bill also provides authority to local governments to continue contributions to the Local Governmental Employees’ Retirement System (LGERS) for employees who have been placed on furlough. SB658 has been returned to the Senate for concurrence in the House amendments.
The House also approved Senate Bill 389 which authorizes the Charlotte Housing Authority and the Robeson County Housing Authority to join the Local Governmental Employees’ Retirement System. The bill has been sent to the Senate for concurrence.
BUDGET NEGOTIATIONS CONTINUE 
OTHER ACTION THIS WEEK