N.C. Senate debates before first budget vote

The state Senate debated a trimmed-down budget for North Carolina government Wednesday that makes tough choices on public education and health care during the deep recession but leaves unanswered what taxes will be raised to balance the plan.

Democrats in charge of the chamber put the two-year spending plan on the Senate floor just three weeks after Democratic Gov. Beverly Perdue released her own budget, her first since taking office.

In its first year, which begins July 1, the plan would spend $20.05 billion and close a projected $3.4 billion budget gap by cutting expenses, spending $1.7 billion in federal stimulus money and increasing taxes by $500 million.

Senate budget leaders highlighted relatively small portions of money to expand health care coverage to more than 15,000 additional children, expand early college programs in high schools and work and prevent gang activity.

But the plan's recurring theme centered on cutting back. The budget would lay off 712 state workers and keep another 910 positions vacant, close four prisons and increase class sizes in the public school.

"We had the challenge of cutting across state government but knew we had to help those in need," said Sen. Charlie Albertson, D-Duplin, co-chairman of the Senate Appropriations Committee. "No one likes to make cuts but we have worked to minimize those cuts and keep our state on the right track. The working families of our state deserve that."

The tax plan hasn't been released, in part because details haven't been finalized.

But that proposal likely will be contentious because Senate leaders have suggested raising cigarette and alcohol taxes - though not as much as Perdue wants - and possibly taxing some services for the first time.

"Stay tuned for more to come," said Sen. Dan Clodfelter, D-Mecklenburg, co-chairman of Senate Finance Committee.

Republicans have complained that leaving the tax details unclear is irresponsible and doesn't explain how the budget would be balanced, which is required by state law.

"We don't know what taxes we're talking about," Senate Minority Leader Phil Berger, R-Rockingham, said. "And yet we're being asked to vote on this budget."

The plan would reduce spending for K-12 schools more deeply than Perdue sought, shifting more money over to the community college and University of North Carolina system.

Perdue and the North Carolina Association of Educators oppose a change that would increase the average size of public school classrooms by two students through the 2010-11 school year, at a savings of $322 million annually.

The budget also would essentially phase out the More at Four program, which provides free, high-quality preschool to 32,000 at-risk 4-year-olds, and merge it with an initiative that sets ratings for child care programs.

Former Gov. Mike Easley, who championed the creation of More at Four during the previous eight years, said earlier Wednesday that he believes the award-winning initiative will be ultimately protected.

"At the end of the day, the General Assembly will not do damage to North Carolina's pre-K program, ranked No. 1 in America, and they'll stand up for North Carolina's children," Easley said in a prepared statement.