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RALEIGH, N.C. (AP) — In the first showing of strong bipartisan support for a comprehensive state budget bill since before the Great Recession, North Carolina House Republicans have passed a two-year spending plan that benefited from a revenue windfall.
The House gave final approval early Friday to its version of the budget, with a majority of Democrats and Republicans voting yes. It would spend $22.2 billion — nearly $1.1 billion more next fiscal year than the current year.
"We're very pleased," said House Speaker Tim Moore, R-Cleveland, after the final vote of 93-23, at 1:15 a.m. "We tried to be very inclusive and transparent and open and collaborative in the development of this budget."
The first of two required votes came just before midnight Thursday after seven hours of debate over more than 40 amendments. Results of two votes were nearly identical.
The measure offered most members something to be happy about, whether teacher and state employee pay raises of at least 2 percent, $400 million for reserves or improved courts funding. A previously repealed income tax deduction for medical expenses also was restored.
Since taking control of the legislature in 2011, Republicans have had a cut-first mentality. That eased somewhat this year when state economists projected a $400 million surplus that also trickled down into more than $800 million in additional funds at their disposal through mid-2017.
"It's nice to have time when we can actually talk about being able to restore some funding after all the years of cuts we had to make," Moore said.
Thirty-two of the 45 House Democrats voted yes Friday. One of them, Rep. Duane Hall of Raleigh, said he couldn't reject a proposal that contained environmental spending improvements and worker pay raises.
"There's a ton of state employees in my district, so that meant a lot to me, and the retirement fund was secure," Hall said early Friday.
On the losing side were 12 mostly liberal Democrats unhappy with previously approved corporate tax reductions baked into the plan and 11 mostly hard-line conservatives angry about higher spending, increased Division of Motor Vehicles fees and extending tax incentives. The conservatives had support from right-leaning taxpayer advocacy groups such as Americans for Prosperity.
But Republican leaders persuaded other GOP colleagues to vote yes after making a series of adjustments in committee meetings throughout the week to rein in renewable energy tax credits, reduce money for TV and film production grants by $20 million and pull back DMV fee increases from 50 percent to 30 percent.
"It's gotten better and better as we've met," said House Majority Leader Mike Hager, R-Rutherford, a key critic.
Provisions remained intact during floor debate to extend by two years tax credits for renewable energy projects while also scaling them back, and to create a $40 million fund sought by Republican Gov. Pat McCrory for venture capital spending using unclaimed property money held by the State Treasurer. Amendments to kill off the fund and the credits both failed.
"To continue this credit one more a day is a travesty against the poor people of our state," said Rep. Jeff Collins, R-Nash, arguing the credit was piling the cost of solar energy upon ratepayers and taxpayers. Collins ended up voting against the budget.
Democrats who voted no said the GOP majority could have delayed corporate tax reductions during the next two years and used revenues to raise teacher pay further or restore a tax deduction for North Carolina small businesses.
"We could have found more meaningful ways to put money in the pockets of average North Carolinians and improve our economy," said Rep. Susan Fisher, D-Buncombe, who voted no.
The bill now goes to the Senate, which should have its own budget plan next month. Republican leaders there have signaled they plan to spend less and extend fewer tax breaks in their version. The two chambers will try to get a final budget to McCrory soon after.
McCrory was out of the state much of the week and hadn't spoken publicly about the House budget, which gave him several provisions he asked for in his budget proposal. But others were left out.
House budget bills received more than 90 yes votes in 2004 and 2006 and 102 in June 2008, before signs of the state's worsening economy grew.
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