The Short Session

Lost in all the emotion and buildup to Tuesday’s election is the reality that the General Assembly convenes for the short session Wednesday, May 16^th. Lawmakers got some good news when they learned there would be a surplus of almost 250 million dollars by the June 30^th year’s end, much of that resulting from the “April surprise” of income taxes greater than had been projected. But the good news was tempered by the stark reality of what awaits legislators needing to revise the budget for the coming fiscal year.

House budget leaders have been meeting secretly and will have a budget ready to put on the floor for a vote within a week after convening. Expect more budget cuts, as up to 1 billion dollars in one-time revenues, coupled with projections that next year’s revenues will be flat are factored into a spending plan, but cuts will not be as severe as was the case in 2011. House passage of the budget should occur before the Memorial Day break. The Senate will need a couple of weeks to consider House revisions and make their own recommendations. Factor in an allowance for conference committees to iron out differences and the heavy lifting for this session, passage of a budget, will occur well before the start of the new fiscal year July 1.

Don’t expect any startling new legislation to emerge. We were told House leaders were not even aware of the Senate’s education reform package when it was announced and insiders don’t expect the House will even consider it. There is traditional contention between the House and Senate but relations between Senate President Pro Tem Berger and House Speaker Tillis are less than warm.

Tillis will be digging out from under the scandals that have rocked his office following reports of illicit affairs by members of his staff. Rumors persist that we haven’t heard the end of the affairs (pun intended) among Tillis’ staff and we might have one or two more resignations prior to the start of session. The Speaker will have little time to regroup and be ready for the short session.

Relations between House and Senate leaders might not be ideal but they are much better than those with the Governor. Governor Perdue has announced a few of her budget proposals in recent days, advocating the restoration of the ѕ cent sales tax for education spending and money for victims of the eugenics program. She will have more following the primary elections but the governor is likely to learn what it means to be a lame duck. She will be even less a player this budget cycle than she was in 2011.

We expect movement on the eminent domain issue, fixes to annexation legislation that has been stalled by the courts, perhaps an attempt to override a gubernatorial veto on voter ID or the hiatus on ferry tolls, but insiders say the legislature wants to adjourn by the last week in June.