N.C. Senator Ellie Kinnaird's Newsletter

June 28, 2007 Newsletter

Dear Friends,

Ellie Kinnaird

We are close to the end of the session, but many unresolved big issues guarantee we will have to go past the constitutionally required 30 June deadline. Today we stayed in session until 12:00 midnight to pass a "Continuing Resolution" that keeps the money flowing to government departments, schools and agencies at last year’s level until we can work out a budget agreement between the House and Senate.

The main two sticking points are whether to keep the ½ cent sales tax and the 1/4 percent income tax on the highest income level. Some Senators want to end the taxes, the House does not. Earned Income Tax (EITC) for the working poor is another issue to be decided. Both chambers agree they need some help just to make ends meet, but they disagree how it should be done.

The other major issue is Medicaid. Our poor counties, and those hard hit with plant closures and high unemployment recently, are bearing a huge burden to provide Medicaid to their eligible citizens. In fact, some counties are paying more for Medicaid than for their schools. The legislature has pledged that the state take over Medicaid from the counties, but how to fund it is complicated. It involves tax swaps that won’t break the state when we take it over, but leave the counties with enough revenue to provide services.

Many of my own bills have yet to be heard. I am having an especially hard time persuading the Finance Committee to hear my bill for funds to help low income people spay/neuter their animals. Also to be heard, are services for the victims of Human Trafficking, equalizing criminal penalties so we don’t keep filling our prisons needlessly, and a bill to allow disabled and elderly poor people to use Section 8 vouchers for apartments. Finally, my Prohibition of the Execution of the Mentally Ill bill will not be taken up by the Senate. Our only hope is it will be heard in the House. I get discouraged when good public policy to benefit our people is killed by special interest groups, from the veterinarians to the realtors.

On the good side, mental health parity will finally make it into law, having been passed by the House and sent to the Senate. The high-risk insurance pool, also passed by the House needs approval on the Senate side but has run into trouble on how to pay for it. After we thought a small surcharge on premiums was accepted by all the insurance companies, this week they backed out of the agreement.

S3, a bill to require alternate energy sources called the Renewable Energy Portfolio Standard (REPS) has been compromised by the utilities in the negotiations. The utilities want to add a surcharge (baseload fees) on all electric bills to pay for future nuclear and coal power plants. Many environmentalists think this will encourage them to build plants rather than concentrate on renewables. They also are exempting industry from sales tax on electricity, part of the incentive program for Google. While is was a sponsor of the billl, I could not vote for it in that form. The environmental groups are split, some feeling that an REPS of 12% for solar, wind, bio-mass and landfills, is worth the compromise and will start us on the road to alternate energy in the state. Other environmental groups think it was a windfall for the utilities and industry.

Another defeat for the environment is the billboard companies’ authorization to clear cut 500 feet around billboards even though they are already allowed 250 feet. It will devastate our scenic views, adding to the bad law they got passed two years ago allowing billboards in every county, where before locals could prohibit them by ordinance.

It doesn’t look as though the bond for Land For Tomorrow will be passed again this year. The Treasurer and Governor are keeping a wary eye on our bond indebtedness. School construction and water and sewer bonds may fall also.

Please let me know how you feel about the bills before the legislature so I can convey it to my colleagues and work for good public policy. I always appreciate hearing from you.

Paid for by Ellie Kinnaird for Senate • PO Box 668, Carrboro, NC 27510 • 919-929-1607 •