Legislative Report

Report 10-08
June 25, 2010

NO AGREEMENT YET ON BUDGET REVISIONS

Budget conferees continued to work through this week with the aim of completing work on a revised state budget for 2010-11 by June 30. Conferees learned late in the week that the state may not be able to legally close the Dorothea Dix Mental Health facility in Raleigh before March of 2011. Keeping the hospitaal open will require further adjustments in the budget to cover the cost of additional months of operating expenditures.

There were no indications of progress on resolution of differences between the Senate and the House on the issue of full funding the Teachers’ and State Employees’ Retirement System (TSERS). The Senate version of the budget appropriates $20 million for TSERS. The House budget proposal appropriates $40 million and includes a provision that potentially generates an additional $135 million for TSERS from excess collections of delinquent taxes through the Department of Revenue Settlement Initiative.

NCRGEA POSITION REMAINS THE SAME

We strongly support the House position on funding for the Teachers’ and State Employees’ Retirement System. At very least, the House proposal doubles the amount of the direct appropriation (from $20 million to $40million).

We appreciate the work of our members who have contacted state Senators and Representatives to urge support of the House position on TSERS funding. Please continue these efforts and take every opportunity to let your legislators know where we stand on this critical issue.