Updated:
Jul 6, 2006
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State Budget Takes Correct Approach

A windfall in the form of a $2.4 billion surplus has allowed the General Assembly to approve a budget that seems to succeed admirably in covering most of the necessary bases.

Those who voted to approve the compromise budget no doubt have let themselves in for attack for supposedly leaning too heavily toward spending increases and not heavily enough in the direction of tax cuts, but they did the right thing considering the circumstances.

The House passed the budget 82-35. No Democrats voted against it, and 22 Republicans -- including Moore County's outgoing Speaker Pro Tem Richard Morgan -- voted "aye." In the Senate, the vote was 32-16, with four Republicans -- not including our Sen. Harris Blake -- and all Democrats voting in favor. The vote is sure to become a big issue in the campaign leading up to this fall's election, when all 50 Senate seats and 120 House seats are up for grabs.

In one of his last exercises of power to steer money in the direction of his home district, Morgan made sure this budget included funds for a sorely needed change: splitting Moore County off as its own prosecutorial district with its own district attorney.

Though Democrats can point to a couple of modest tax cuts -- a quarter-cent reduction in the sales tax and a quarter-percentage-point lowering in the income tax rate for those in the highest bracket -- Republicans will argue that the state could have afforded deeper cuts. They can also be counted on to hammer at the Assembly's refusal to roll back the state gas tax. But the legislators were right to resist the pressure to do so, especially given the need to help road construction catch up with population growth.

The budget includes overdue pay raises of 8 percent for teachers, 6 percent for higher-education faculties and 5.5 percent for other state employees. The lawmakers capped the counties' Medicaid share at 2005 levels and designated $42 million to help improve low-wealth schools and comply with court orders under the Leandro lawsuit.

It may not be so easy to sustain the new spending levels in leaner future years, but the lawmakers are to be commended for taking an enlightened approach to meeting some of the state's most pressing needs instead of going down the politically expedient route.

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