A new legislative session

Published January 28, 2015

Editorial by Charlotte Observer, January 27, 2015.

The N.C. General Assembly reconvenes Wednesday for its 2015 long session with budget revenues running nearly $200 million below projections and an array of pressing issues to sort out. Here’s a quick look at some of the major topics the Republican-dominated legislature is expected to confront in the weeks ahead:

RURAL VS. URBAN

Some rural Republicans are tired of seeing big cities like Charlotte prosper while their areas struggle. They have suggested redirecting some of the sales tax wealth generated in urban counties to help poorer rural counties.The state already doles out 25 percent of sales tax revenue on a per-capita basis – a way to help rural areas that don’t generate heavy sales numbers. But rural lawmakers want more of the other 75 percent that’s distributed by point-of-sale. The state should resist that. Don’t punish thriving cities to help rural areas that already receive aid.

TEACHER PAY

Legislators last year passed what they called one of the biggest pay hikes for teachers in state history, only to learn that many educators and others see it as a mere start toward remedying years of stagnant pay.The package gave teachers average pay raises of 5.5 percent, but much of it was skewed toward newer teachers. A teacher entering her 30th year actually earns 1.1 percent less, according to the Public School Forum of North Carolina advocacy group.

This year, they must help veteran teachers. Younger teachers need mentors, but at this rate the veterans won’t stick around.

BUSINESS INCENTIVES

Gov. Pat McCrory says he doesn’t have the job-recruiting tools to compete with neighboring states. Republicans are skeptical, even moving last year to trim film incentives.McCrory’s hand likely has been strengthened by recent high-profile losses such as Mercedes-Benz picking Atlanta over North Carolina sites for its new U.S. headquarters.

But having let McCrory unnecessarily privatize the Commerce Department’s job-recruiting and marketing functions, lawmakers ought to make the governor thoroughly prove his case for more incentive dollars.

MEDICAID REFORM

Lawmakers have two significant Medicaid challenges to confront in 2015:The first is easy. Accepting a federal Medicaid expansion would create jobs and bring critical coverage to as many as a half-million North Carolinians.

A more difficult question is how to fix a state Medicaid program that’s burdened with unpredictable costs, but has healthy provider participation. We preferred a House proposal last year that allowed only provider-led Medicaid networks in the state, but any fix should avoid compromising the care and coverage to our state’s neediest.

TRANSPORTATION

Charlotte is growing rapidly, and needs its transit system to grow, too. But the 1998 sales tax that built the Lynx light rail system and other improvements is falling billions short of what’s needed to round out the region’s long-range transit plan. Mayor DanClodfelter has said the city might need to raise more money locally. A quarter-cent increase in the sales tax is one option, but Sen. BobRucho of Matthews tried hard last year to cap sales taxes in Mecklenburg and other counties. We hope he doesn’t try again. If the state can’t fund transit here, it shouldn’t block local voters from doing so.