Editor’s note: The Smoky Mountain News asked area legislators to briefly describe some of their views on the current budget debate going on in Raleigh. The opinions of Sen. Bob Carpenter (R-Franklin, 42nd District), Sen. Dan Robinson (D-Cullowhee, 29th District), Rep. Marge Carpenter (R-Maggie Valley, 52nd District), Rep. Phil Haire (D-Sylva, 52nd District) and Rep. Roger West (R-Marble, 53rd District) follow:

What do you think created the budget shortfall?
° Sen. Carpenter: Careless spending and a zest to fund unnecessary projects back in the districts created this budget shortfall. It is not due to a shortage in revenues — revenues are up.
° Sen. Robinson: We were required to take $836 million from the 1999 Budget as a result of flooding in Eastern North Carolina caused by Hurricane Floyd (required percentage of Federal funds). Hurricane Floyd killed 52 people and damaged or destroyed 55,000 homes in 30 counties; $1.2 billion was required to settle two lawsuits (intangible tax settlement and taxes on retirement benefits); a $1.5 billion tax reduction since 1995 by the state; slowing down of the economy.
° Rep. Carpenter: Although revenues continue to rise yearly in this state, the leadership of the state in recent years have consistently overspent, inflated our state government, and made use of creative accounting methods to mask that overspending.
° Rep. Haire: A combination of 4 things: The loss of two major court cases — the Bailey case and the Shaver case cost the state $1.2 billion; Hurricane Floyd cost the state $830 million and took $284 million out of the Rainy Day Fund; the tax cuts of 1995 and 1997 which continue every year; a downturn in the economy.
° Rep. West: Uncontrolled spending and expanding state programs.

What would you offer as a solution?
° Sen. Carpenter: A for real austerity program of every department would be a good start — not a scare tactic like the Democrat budget.
° Sen. Robinson: Reduction in state expenditures; Close corporate loopholes; One-cent sales tax divided 50/50 between state and local governments, which would relieve the state of the necessity to make annual refunds of $330 million to local governments.
° Rep. Carpenter: Provide all members of the legislative delegation a complete line-item budget to determine where accountability measures are needed, duplication in services could be stopped, administrative costs could be consolidated, and more. It is impossible to provide a complete solution when most legislators are not privy to the complete budget information.
° Rep. Haire: The House has put forth a wide-ranging proposal to increase revenue but give tax relief to middle-income and families with children. The plan will give counties a one-half cent sales tax option; add a new income tax bracket of 8.75 percent for taxable incomes that are twice the current 7.75 percent rate; remove the $1,500 cap on the 3 percent Highway Use Tax for non-commercial vehicles (fire trucks and rescue vehicles would be exempt); place a 1 percent tax on HMOs and Blue Cross/Blue Shield and impose a 6 percent tax on liquor sales (beer and wine excluded.) The plan would also increase the standard deduction for Married Filing Jointly from $5,000 to $5,500 in 2001 and $6,000 in 2002. It would also increase the child credit from $60 to $75 in 2001 and $100 in 2002.
° Rep. West: Smaller and more controllable government.

What, if any, tax increase do you feel might be appropriate?
° Sen. Carpenter: None
° Sen. Robinson: One cent sales tax (see above).
° Rep. Carpenter: None
° Rep. Haire: New taxes per above.
° Rep. West: No taxes.

Closing remarks (optional)
° Rep. Carpenter: Fellow Citizens, I ask you to seriously look at the facts. There is increased state revenue, but we must learn how to control spending to help the families in our state prosper. Data from the John Locke Foundation indicates that North Carolinians lose 35 percent of their incomes to federal, state, and local taxes. Please do not accept the scare tactics being advertised that all essential programs will be cut if your taxes are not raised. Instead, demand accountability and that priorities be set as legislators spend your money. Demand that your tax money be spent in your counties, not on unnecessary programs based in Raleigh. I remain committed to a return to a responsible, smaller government. This means neither new taxes nor a lottery. Unrestrained free spending has gone unchecked long enough in our state. “North Carolina has a spending problem, not a revenue problem.”
° Rep. Haire: The above plan was created to carry us into the future, not just get us out of this shortfall. I believe this plan will be introduced in the form of a bill and could be voted on as early as Thursday, July 26.
° Rep. West — We need to downsize and control the growth of state government.

 

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