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Senate | June 28, 2016 | Chamber | Senate Convenes

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[BLANK_AUDIO]. Senate will come to order. >> Sargent at arms close the door as members go to their seats. >> Members and guests in the gallery please turn off all electronic devices. leading the senate in prayers the Reverend Peter Milner senate chaplain, all members and guests in the gallery please stand. >> Lets bow our heads and pray. Lord thank you so much for all you do for us more than we ask or imagine or dream of we thank you that you are merciful and that you are full of compassion, not just now but from generation to generation. Guide us Lord today, give us confidence, as a team, help us to finish now that the detail all come together for the sake of those we serve, and we pray for everyone here you would just be with them and remind them that you would not forsake them or leave them. It's in your name we pray Jesus. Amen. [INAUDIBLE]. >> Senator Pate is recognized for a motion. >> Thank you Mr president. The journal of Monday June 27th, 2016 has been examined and has found to be correct. >> Senators just come to order please, come to order. Senator Pate you have for. >> A move that the senate dispense with the reading of the journal and that it stands approved. approved as written. >> Without objection the journal for June 27th stands approved as written. Senators leaves of absence are requested without objection, are granted for senators Newton and Berger. [BLANK_AUDIO]. And we do have a nurse of day with us today Jenifer Lam from Rocky Mt is here. Nurse Lam please stand to be recognized. Thank you serving us in the senate today. >>[APPLAUSE] Do we have any reports to standing committees today? [BLANK_AUDIO]. If not this time we would like to introduce our pages for this week, we missed that opportunity last night. So pages if you'll make your way around to the front Onto the dais here and order, and when you get up front here then we will recognize everybody. [BLANK_AUDIO]. When we all get up front the clerk will read. >> Pages served in the chamber this week. Kayla Austin reads a bill. Cameron Anderson, Charlotte, Jacob [UNKNOWN], John Bennett, Wellington, Hunter Bennett [UNKNOWN], Simon Colin, Mount Airy, Ron Davis the II, Norlina, [UNKNOWN] Rockingham Emily Thicker, Riley, Cameron Ford, Carey, Lauren Grayson, Charlotte, Matthew Crowevik Hickory, [INAUDIBLE] Charlotte, Matthew Langston, Wilson, Rowley. [UNKNOWN] Huntersville, Thomas Moore the III Rocky Mt, William Pittman Hanover, [UNKNOWN] Clinton, Sera [UNKNOWN] Raleigh, Mason Stuartson Wilmington, [UNKNOWN] Snowhill, Andrew Weatherman [UNKNOWN] Charlotte, Jack, Jake [UNKNOWN] Ashville. >> Pagers we thank you for taking time out of your summer for this busy week in the senate and we hope this will be a valuable experience for you as it is for us. Thank you so much for your service. >> [APPLAUSE] Senators we're gonna move right into our calendar for today. staring with local bills, third reading roll call house bill 1022 clerk will read. >> House bill 22 mmarks a deannxation silo/ city satellite in it. >> Do we have any discussion or debate? debate. Hearing none the question before the senate is the passage is the

senate committee substitute to house bill 1022 on its third reading, all in favor will vote aye, opposed will vote no. Five seconds be allowed for the voting the clerk will record the vote. [BLANK_AUDIO]. Sanderson aye, Hartsel. 47 having voted in the affirmative and zero in the negative, the committee substitute to house bill 1022 passes its third reading it will be enrolled. House bill 1132 clerk will read. >> House bill 1132 Glen Alpine deannexation. >> Any discussion or debate? Hearing Hearing none the question for the senate is the passage of the committee substitute House Bill 1132 on its third reading, all those in favor vote aye, oppose will vote no. Five seconds will be allowed for the voting and the clerk will record the vote. [BLANK_AUDIO]. 47 having voted in the affirmative and zero in the negative for the committee substitute to house bill 1132 passes its third reading and it will be enrolled. Senators we have two local bills for concurrence on second reading roll call. Senate bill 774 clerk will read. >> Senate bill 774 [INAUDIBLE] De-annexation. >> Is there any discussion for the debate? Hearing none, request for the senate is the passage of the House Committee substitute center bill 774 on its second reading. All in favor will vote aye, opposed will vote no. Five seconds to be allowed for the voting. Clerk will record the vote. [BLANK_AUDIO]. 47 having voted in the affirmative and zero in the negative, the House Committee substitute symbol 774 passes its second reading it will remain on the calendar. Senate Bill 852 clerk will read it. >> Senate Bill 852 Town of [INAUDIBLE] town of deannexed >> Any discussion of the debate? Hearing none, question for the senate as the passage of the House Committee Substitute senate bill 852 on its second reading. All in favor will vote aye, opposed will vote no five seconds to be allowed for the voting and the clerk will record the vote. [BLANK_AUDIO] 47 having voted in the affirmative. And zero in the negative, the House Committee Substitute 852 passes in its second reading and it will remain on the calendar. Moving on to public bills. For second reading, House Bill 805 the clerk will read. >> House Bill 805, Measurability Assessments. >> Senator Gunn is recognized to explain the bill. >> Thank you Mr president as you know members we have a lot of problems in the state government. What this bill is going to do is allow us to have independent assessments, to measure measureability assessments to be able to determine and report the performance and return on investments on this programs. Now this programs may be existing programs, they may be programs that we would like to start. I wanna make sure that you know that these assessments, probably will will be independent and they will have a small cost associated with them that can be passed on to the agency. These assessments cannot occur, unless both the house and the senate have agreed to that they may agree through a PED a joint committee that's brought to us, appropriations act or a bill. We want to make sure that the programs that we have in state government by and independent source are doing what they are supposed to do, given us a return on investment and providing a value to the folks that they are supposed to serve. I'll be glad to answer any questions but I do think this is a good opportunity for us to make sure our programs are operating efficiently, thank you. >> Do we have any discussion or debate? Senator Bryant for what purpose do you rise? to speak on the bill. >> Senator Bryant you have the floor to speak on the bill. >> I just wanted to mention this seem like a good idea but it was before us before its time because it seems to me that it was more I felt like needed to be freshed out about this. The agencies are gonna be required to pay for this assessors, we don't know, there's no real criteria for these independent assessors and how much it's gonna cost so it seems to me that this is a matter that it would have been better for PED to have reviewed maybe in the interim and come back with a more detailed assessment of how this was going to be implemented. I'm concerned that these independent assessors, I'm glad both houses would have to agree but can come with all kinds of agendas of their own, etc. and I'm just concerned that we are leaving our own staff and going into a new arena of independent assessment without development with that reason I just wanted to make that concern

public for the record. >> Senator Apodaca for what purpose do you rise? >> Mr president speak on the bill and a motion. >> Mr Apodaca you have the floor to speak on the bill>> I find myself in unusual place of agreeing with Senator Bryant, with that being said I move that house bill 805 be removed from today's calendar and referred to committee on appropriations. >> Without objection so ordered. [BLANK_AUDIO] Moving on public bills, third reading, house bill 3, clerk will read. >> House bill 3, constitutional amendment. >> Do we have any further discussion or debate? Senator Clark for what purpose do yo rise? >> Speak to the bill. >> Senator Clark you have the floor to speak to the bill. >> Mr president the constitutional amendment as set forth in section two of house bill 3 is nothing more than [INAUDIBLE] for a lock and load tax strategy This provision, if approved by the citizens, would mark on lower income tax rates to the greater benefit of the fiscal elites. All the while, this body passes legislation to increase the middle-class tax liability burden to the expansion of sales taxes on services. Mr. President, at this general assembly continues as long as current trajectory of expanding taxes and services, it won't be long before the middle class citizens of North Carolina are paying sales taxes at the barber shop, hair salon and the child care centres. But we know what's going on when our middle-class citizens go shopping for services, are they paying more or less taxes than they paid in the past? Mr. President, you know the answer. We all know the answer, they know the answer. We're paying more in taxes. Mr. President, that's the lock and load tax strategy at work. Tax baits for the fiscal elite, tax burdens for the middle class. Let us not enshrine this into the constitution, Mr. President if we really want to benefit the middle class with tax policy enshrined into the state's constitution We should embed an index and justice standard deduction in the constitution not just a low income tax rate that serves for the greater benefit for the physically relieved. That being said I ask the staff to bring forth a document I had provided for them and place it on to the dashboard entitled standard adoption [BLANK_AUDIO] Senators I have an extract from a briefing that was provided to us by our esteemed finance chairs Senator Russo and Senator Rabin during a finance meeting and it talk about the benefit of raising the standard deduction could you turn to the next page please. [BLANK_AUDIO] >> Senator which page are we now on senator Wade? >> The fill has three pages, we are only on page one right now. [BLANK_AUDIO] >> It's just a scroll thing senator so yo can scroll you don't have to turn through the pages just scroll up and down senator. So if you'll just kinda let them know where they are as you are speaking that will be great. [BLANK_AUDIO] sorry I didn't realize that okay. So the [INAUDIBLE] says over 4.3 million tax [INAUDIBLE] taxes are we all there? Okay we are informed that by our finance chairs [INAUDIBLE] 70% of those dollars file to standard deduction with 30% filing an itemized return. Let's go to the next page please. Subsequently what they informed us of was the fact that by increasing the standard deduction we will benefit our middle class tax payers, and our working class tax payers. And I thought that was a great idea as a matter of fact all f us thought that was a great idea. As a matter fact we brought a bill into this chambers and we voted for it unanimously at bipartisan support. We all agreed to provide the greatest benefit to our middle class citizens and working class citizens who can achieve that by increasing the standard deduction. And I've noted that provision is now on page 16 of our budget document and I'll pre-state the fact that it's actually in there. But my concern is that if we really want to benefit- >> Senator Hise for what purpose purpose you rise? >> I believe is point of order, but I just going to ask individual members who are on Apple devices cannot scroll through the presentation. [INAUDIBLE] so if you can would you ask the speaker to explain in

detail what he has on those cause we can not access those. >> No problem Mr. President. >> Mr. President >> Senator Tart for what purpose do you rise? >> Just a point of information. I think for those on Apple devices if you'll just double click on the PDF icon you'll be able to scroll. Thank you. >> Thank you Senator Tart [BLANK_AUDIO] Anyway looking [INAUDIBLE] page what we see is that in all cases for individuals earning less than $200,000 essentially they end up paying lower effective tax rate as a result of the increase in the standard deduction. But, however, we in this chamber here, understand that if we do not protect that. standard deduction, in other words, we live as subjects of inflation, that over time the benefit of that standard deduction is going to be diminished. So, what I think we need to do, is we need to place this standard deduction, this policy here, into constitutional amendment allow our citizens to vote. Whether or not they want to have that there. And then also in index it, so that over time, the benefit of that standard deduction is not diminished by inflation. If we really want to do something for our middle class and working class citizens, I think that's what we ought to do instead of just increasing our excuse me setting a income tax rate of 5.5%. That being said Mr president I would like to bring forth an amendment. >> Clerk will read. >> Senator Clark moves to amend the bill. >> Senator clark is recognized to explain the amendment. >> Okay senators what this amendment does If we start on line eight. We see that the rate of tax on income shall not in any case exceed seven and one half percent. Currently in the constitution is set at 10%. So this will bring it down to 7.5% as we continue on we see that and there shall be allow personal exemptions and deductions, so that all the net incomes are taxed. The standard deductions such be indexed annually by the percentage change in the consumer price index and for all the consumers excluding energy and food. In no case shall the standard deduction fall below $17500 for tax payers with [INAUDIBLE] shortly. $14,000 for tax payers filing a filing status of head of household. At $8750 for tax payers with a filing status of single or married filing separately. >> So by doing this what we could do is cut that standard deduction that is provided for in our budget here. In the constitution [INAUDIBLE] and reserve the potency of that standard deduction. I recommend this amendment for your approval. >> Mr president. >> For what purpose do you rise? >> To debate the amendment. >> Senator Rucho you have the floor to debate the amendment. >> Senator Clark thank you very much for recognizing the tact that all of good tax cuts both lowering the rate and sending up the standard deduction of what we like to refer to as zero bracket has been very beneficial to the people of the state. Especially in lieu of the fact that we've seen some great results on job creation, on income improvement, decline in poverty, GDP growth. So in essence I'm really comfortable with the direction we're presently going. At some point hopefully this general assembly with its wisdom can look at zero bracket of maybe something in the vicinity of $20,000 married filing which would be probably a good thing to do, but its unfortunate because senator Clark alluded to the fact that an inaccurately that all of this moving away from an income tax to a consumption based tax on a broadened sales tax base. Senator Clark and members of the Senate you'll notice anytime we do broadening of the sales tax base, we actually either lower the rate and or increase the zero bracket. So just as a matter of fact let me give you some information so you'll be at enlightened . Since 2013 house bill 998 which our taxes bill, we actually reduced the personal income tax by 1.123 billion dollars and also the fact that this sales taxes were broadened we actually increased the revenue about 517.8 million dollars. Which is a net change of a tax cut on the personal income tax area

of about 605 million dollars. Senator Clark, so your analogy of saying that as we broaden the base people are paying more taxes is an error. Now what does that really mean? If you look at an example of someone earning 43,916 dollars which is the medium household income in 2014. Because of what we've done in 2013 and because of increasing the standard deduction up to 16,5 and then 17,5 the taxpayers in that area, 43,916 will actually have a Received a $215 tax cut, now if you add in the $49 that would have been due to the fact that we broadened the sales tax base is $166 tax savings in 2017. Same analogy 43,916 federal AGI would be medium house whole income because of the additional change that we would have including a reduction of the four to a 5.499. Those same tax payers would enjoy $339 tax cut in addition to the fact that if you add in the $62 that would have come from the sales tax broadening that those tax payers would have a $290 savings net savings Senator Clerk. So in reality for you to come out and make a statement as rash as that was, the facts don't speak for it and ladies and gentlemen All I'll say to you, the direction we've been moving shows the fact that, getting away from an income tax which is damaging to a savings, to investment, to entrepreneurship, everything we know that is necessary to have a growing economy, the results speak for themselves, the fact that when the Democrats control In this General Assembly they had the highest taxes in the South East and very simply that is not the truth today actually we ranked some of the best and we've seen the results of it. This does not even include the billion plus dollars that we get when we got rid of your temporary sales tax Senator clerk which added another billion dollars in the pockets of the working family small businesses so in conclusion there has been a significant reduction in the amount of personal income tax act that meant it put money back in peoples pockets and I would ask that you reject this amendment and lets get on to the bill ahead so that we We can go ahead and be sure that everybody is able to know what that tax rate will be, it's clearly stated at a 5.5% cap which is the right thing to do, which will actually inform people and keep them enlightened and what it will do is for the Democrats from increasing personal income tax And that is a noble goal, and can be achieved. Thank you. [SOUND] >> Do you have any further discussion or debate on the amendment? [SOUND] >> Senator Ford [INAUDIBLE] >> See is Senator Rucho will offer a question? >> Senator Rucho - >> It's your time. >> [LAUGH] >> I'm not sure, Mr. President, what that means but I think, Senator. Senator Ruccho for yielding, help me with all of your intelligence. >> [LAUGH] >> As it relates to the amendment here, I detect some sincerity in Senator Clark's idea of trying to protect the standard deductions from inflation over time. So how do you respond to that? >> Clearly the general assembly has it's ability to continue moving in the direction based on the realities of what is the economic changes it may incur if that happens to be a change in the economics or if we have another recession mild or heavier it Gives the General Assembly to make those adjustments as they choose and not done automatically. >> Follow up. >> Sir. >> Senator do you offer a follow up? >> Yes sir. >> So you will agree, over time, the standard deduction will not be as valuable to the working families and to the forping /g in this state, whom we all want to support? >> If you feel. As a member of the General Assembly that you would like to raise that standard deduction 18 to 20 to 25, bring the motion forward and we'll bring the Bill forward and this general assembly can vote on it based on the facts, and based on the fact that it is necessary at that time rather than an automatic increase which may or may not reflect what it Actually happen in the economy. >> Thank you. This person will speak to the- >> Senator Othoti I have a quote. >> All it takes sincerely insane of the clocks idea of protecting these standard deductions for working families in the poor Nate State.

And I would encourage you to do the same by supporting them. >> Any further discussion or debate on the amendment? Senator Apodaca for what purpose do you rise? >>Mr. President a motion if I may I. >>Senator Apodaca you have the floor for a motion.>> Mr. President amended the words spoken by senator Rucho on amendment two B spread upon the journal >> [LAUGH]>> Still like a moment of personal privilege if I may this speech is becoming Less frequent and even more or less, I can't talk today. Even more or less frequent, if that makes any sense, in couple of days. So we really wanna get these wonderful speeches- >> So ordered sender. >> So ordered. >> [LAUGH] >> Is there any further discussion or debate on amendment 2? Hearing. none the question before the senate is the adoption of amendment two all in favor vote aye opposed will vote no five seconds be allowed for the voting the clerk will record the vote. [BLANK_AUDIO] 15 having voted in the affirmative and 33 in the negative amendment two fails the bill is back before Senator Blue for what purpose do you rise? >> to send forth an amendment. >> Senator Blue you can send forth your amendment [BLANK_AUDIO] Clerk will read. >> Senator Blue moves to amend the bill. >> Senator Blue is recognised to explain the amendment Thank you very much Mr. President. Ladies and gentlemen of the senate, Senator Clarke does have a great idea with respect to protecting working families in the state. Now, what his amendment here is did not totally acknowledge. Senator Rucho's effort to get the overall income tax rate down. And what this amendment does, it puts the income tax rate at the same level that this amendment would currently have it at 4.5%. And as Senator Rucho indicated. legislatures have he discretion to move the current text anywhere from zero up to 10% and future legislators will have the discretion to repeal everything that senator Rucho worked so hard to do in Increasing the standard the deductablity, deductions rather. To 70, 500 Dollars.So, to honor his service, in this body we're just saying that the great effort harque effort that he made will be preserved. And 17,500 $100 in 2016, this subject this legislature changing it down to a low amount probably not higher and if we really respect our votes several weeks ago to increase the deductions And basically make [INAUDIBLE] making less that $17500 a year free from income tax. Then we will incorporate this and with the same amendment that is saying that overall income tax rate can exceed 4.5%. Because that makes u consistent. And to do anything Less than that, is being hypocritical to say that future legislators ought/g to have the ability to affect how working people are affected by this amendment because, if in fact the amendment to lower the income tax rates is successful and an emergency comes or someone pursuing. Circumstances Senator Rucho indicated comes the legislature would be inclined to increase the tax on working folk because they can't go [UNKNOWN] 4 1/2%. And so you could just drop the amount which mean that it would be taxable down and you would have working people making up the slack for the The cuts to upper income people not having to pay greater than 4.5%. So I command this amendment to you, I think it's consistent with what we're trying to do with this overall amendment and I think that it also shows [INAUDIBLE] the wisdom of his action several weeks ago. Senator Heis for what purpose do you rise? >> Senator Blue respond to a question. >> Senator Blue do you yield? >> I do. >> Senator Blue under this amendment is a written amendment as under Clark's amendment as well. Is there any probation form the general assembly regardless with what happens with the index inflation setting Setting the rate back to 17,5 even 10 years from now. >> This would prohibit it, it would be unconstitution, just like the 4.5is in the constitution. The legislature would not have the discretion that Senator Rucho talked about.

So this protection of working class families becomes a permanent protection, and it becomes the bottom level on which you can tax working class families. >> Follow up. >> Senator Blue do you yield? >> I yield. >> I'm not sure you understand my question, maybe I need to ask it. If it rose by inflation in 10 years and that number in turn reached 20,000, but the amendment of our constitution says shall never fall below 17,5 could not a future legislature set it back to 17,5. >> No because it says it shall be indexed annually by the percentage change in the CPI. And once it goes up, the only reason that the second part of it is if the CPI happen to do something it doesn't do, it went down. And you had negative growth in the economy. And so the consumer price index would increase by a negative number >> And final [CROSSTALK] >> Which means it would decrease. >> Do you yield for a follow up question senator? >> I yield. >> Well I would disagree of what the reading of that is but lawyers/g continue on that. My last question would be why would you use the CPI index for urban consumers that excludes the cost of energy and food in an attempt to protect the middle class, which would be most impacted by changes in cost and energy and food in their daily incomes? >> Well first place you don't pay taxes on food, we don't in North Carolina anymore, and so that ought to be excluded, as you're trying to say what the deductability is. >> Senator Block for what purpose do you rise? >> See if senator Blue will yield for a question. >> Senator Blue do you yield? >> I yield. >> To kind of follow u with senator Heis[ is my question is using the CPI for urban consumers do you know how that's calculated? >> It's been 40 plus years since I officially took statistics and all of that stuff, I could refresh my recollection and figure it out. >> Just speak briefly to the bill. >> Senator Block before I speak to the amendment. >> Using CPI especially for urban consumers is a very bad way to go, and I'll just say this living through this and you were here as well. When the great recession hit, North Carolina hit first, our mills were closing down our factories were closing down. At the time CPI was still going up because other parts of the country were doing well. So by tying our economy to this national number, puts North Carolinians at risk. I urge you to vote against the amendment. >> Senator Rucho for what purpose do you rise? to see if Senator Blue would yield to a question. >> Senator Blue do you yield? >> Senator Blue, intriguing idea I love the fact that when you start talking about tax cuts my heart warms. >> [LAUGH] >> But that being said we gotta be honest in every county there is a 2% tax on food in the grocery store, we know that. Plus the fact that in this society, more people are going out to the restaurants rather than staying home around the kitchen table having dinner. And if you remember correctly, they are not only using the 6.75% sales tax on all the food that people tend to be eating now out, plus an additional. 1% on full tax so there is really in this society today a tax on food. It may in the grocery directly except for the 2%, but as you come forward and I know Senator Hise and Senator Brock brought an interesting point, you talk about CPI and the inflation level and we haven't and seen inflation grow very much in the last eight years cuz there really hasn't been any growth. But I'm not sure that would give enough of input into to allow us to continue to raise this if the general assembly choose to. But that aside the fact that of that we would to accept this amendment that you brought forward would e have guarantee that all the members of your caucus would support this amendment and all the other constitutional amendments we have on this bill? >> You have my guarantee that they would support this amendment that I offered. >> That's not what I asked I assume that would be a no. >> Well not absolutely Senator Rucho as I indicated earlier I [INAUDIBLE] support two or three of this constitutional amendments. And if they were separate I would vote for them. I had spoke up for the anti kilo decision on eminent domain in the judiciary judiciary committee this morning I support that.

I supported it when I was in the house and I think that the right [INAUDIBLE] fish something I did when I was growing up is something that every boy and girl in North Carolina ought to be able to experience. >> So I'm two thirds on the way home already. I'm trying to get to the help me get the rest of the way and that sort of moves At least a little bit further down the road on 4.5 amendment. >> Speak to the amendment please. >> Senator Richard you have the floor to speak to the amendment. >> Senator Blue I, agree with you fully that we should continue driving up that zero bracket and lowering the The PIT rate because if you look at some of the greatest economies in the United States, and North Carolina is clearly moving in that direction, there are all zero Personal Income Tax rate. So under the circumstances I think we're on the right path and I think that I probably would ask the that the committee or the senate would probably not support this amendment. Senator Apodaca. >> Senator Apodaca for what purpose do you rise? >> Mr president a motion please. >> Senator Apodaca you have the floor for a motion. >> I move that amendment three be laid upon the table. >> Senator Jackson for what purpose do you rise. >> Second the motion. >> Senator Jackson seconds the motion to lay upon the table with non debatable motion will be one vote on this motion, the question before the senate is the motion to lay amendment three upon the table, all in favor will vote aye, opposed will vote no, five seconds will be allowed for the voting, clerk will record the vote. Berger aye, [BLANK_AUDIO] Tucker, aye. 34 having voted in the affirmative and 15 in the negative amendment three rise upon the secretary - >>Mr. President.>>Senator Bryan for what purpose do you rise?>>I wanna change my vote to no.>>Senator Bryan changes her vote on that motion for no and the final count [BLANK_AUDIO] 33 to 16. Senator Berger is now back in the chamber now. The bill as unamended is back before the body do we have any further discussion or debate? Senator Bryant your microphone is still on. Thank you hearing none None, request for the senate is the passage of the senate committee substitute House Bill 3, on its third reading. All in favor vote aye, opposed to vote no. Five seconds to be allowed for the voting. Clerk will record the vote. [BLANK_AUDIO] Berger, aye. Wells, aye. 31 having voted in the affirmative and 18 in the negative, senate committee substitute to house bill three, passes it's third reading and it will be sent to the house for concurrence in the senate committee substitute. Mr. president >> Senator Apodaca, for what purpose to rise? >> Sent forth committee report out of order. >> You can sent forth your report senator. we have a page to deliver this forward please. [BLANK_AUDIO]. Clerk will read. >> Senator Apodaca rules and operation in senate committee submits the passage. House bill 540 committee substitute number one. Unfavorable as the senate committee substitute bill, one but favorable as to senate committee substitute bill. Title an act to provide conforming changes upon the voters approval of amendments to the North Carolina constitution to prohibit. [INAUDIBLE] of private property except for public use and for the payment of just compensation. We write up trial by doing all consideration cases to provide for tax payer protection as establish the state emergency saving reserve flown and to protect the right of the people, to hunt fish and harvest wildlife. >> House bill 548 to the calendar. >> Mr President, >> Senator Apodaca, for what purpose do you rise? >> A couple of additional motions please. >> You have the floor senator. >> Mr President, the house bill 360, drinking water protection, coal ash cleanup act was heard and in committee day reported in. I ask the bill be suspended to the end. It'd be placed on the end of today's calendar. >> 630 senator, correct? >> That's correct. >> 630. Without objection, so ordered. >> Mr President, senate joint resolution 387 state board of education confirmations was heard, nominations committee day reported in, move that be placed on the calendar for immediate consideration. >> Without objection so ordered. >> [BLANK_AUDIO] >> Senate joint resolution 387, the clerk will read. >> Senate joint resolution 387, state board of education confirmation. >> Sen Apodaca is recognized. >> Thank you Mr President. Members, this just allows us to go into joint session with our friends across the hall to nominate the two folks to the state board of

education. I ask for your approval. >> Do we have any discussion or debate? Hearing none the question before the senate is the passage of senate joint resolution 387 on a second reading all in favor vote Aye. Oppose to vote no five seconds to be allowed for voting clerk to record the vote. Apodaca Aye, Jackson Aye, Foushee Aye, Rucho Aye, Rabin Berger, Rucho Aye, Burger Aye. 48 having voted in the affirmative and zero in the negative. Senate Joint resolution 387 passes it's second reading without objection be read a third time. >> North Carolina General assembly enacts. >> Do we have any discussion or debate? Hearing none the question before the senate is the passage of senate joint resolution 387 on it's third reading. All in favor say aye. >> Aye >> Opposed no. The ayes have it. Senate joint resolution 387 passes its third reading and it will be sent to the house. [BLANK_AUDIO] Moving back to public bills on third reading, house bill 100, the clerk will read. >> House Bill 100, local government immigration compliance. >> Do we have any other discussion or debate? Hearing none The question before the senate is the passage of the Senate Committee substitute the house bill 100 on its third reading all in favor vote I oppose the vote no, five seconds be allowed for the voting and the clerk will record the vote. Rutto I, Berger I, [BLANK_AUDIO] 32 having voted in the affirmative and 17 in the negative the Senate committee substitute the house bill 100 passes its third reading it will be sent to the house for concurrence in the Senate Committee substitute. >> Mr President. >> Senator Ford for what purpose your eyes. >> I need a quick change on that vote please for I to No. >> Senator Ford changes his vote from I to No in the final count. [BLANK_AUDIO] 31 to 18. >> House Bill 1080 the clerk will read. >> House Bill 1080, achievements school district. >> Do we have any further discussion or debate Senator Barefoot for what purpose your eyes? >> Send forth an amendment Senator Barefoot you can send fourth your amendment. [BLANK_AUDIO] The clerk will read. >> Senator Barefoot move to amend the bill. >> Senator Barefoot is recognized to explain the amendment. >> Thank you Mr President Members of the Senate this amendment Simply adds an additional qualification to this ASD super intended when they are granting a school an extension of the contract by adding that the school must show growth over the term of the contract and I ask for your support. >> Do we have any discussion or debate on the amendment. Heating none the question before the senate is the adoption of amendment seven all in favor vote aye opposed will vote no five seconds be allowed for the voting the clerk will record the vote. [BLANK_AUDIO] 43 having voted in the affirmative and 6 in the negative amendment 7 is adopted. the bill as amended is back before the body. Senator Tillman for what purpose do you rise? >> Send forth two amendment will take version two for the first one and version three for the second one. If will Mr president. >> Clerk will read. >> Senator Tillman moves to amend the bill. >> Senator Tillman is recognized explain the amendment. >> This simply puts back in project lift and the eye/g zone that's been a successful program in the Charlotte Mecklenberg schools system. This restores that to the bill. >> Do we have any further discussion or debate on the amendment 8? Hearing none the question before the senate is the adoption of amendment 8 all in favor will vote aye opposed opposed will vote no five seconds be allowed for the voting the clerk will record the vote. [BLANK_AUDIO] Van Duyn and McKissick aye, aye. 48 having voted in the affirmative and 1 in the negative senate bill Senator Waddell [INAUDIBLE]. Senator Waddell is gonna change her vote from no to aye. Final count is 48-0, [BLANK_AUDIO] 49-0. and amendment 8 is adopted and the bill as amended is back before the body. Senator Tillman you can send forward your next amendment. >> Yes [CROSSTALK].

>> And clerk will read. >> Senator Tillman moves to amend the bill. Senator Tillman is recognized to explain amendment 9. >> Thank you Mr president this reestablishes the sunset for those programs in Charlotte, Mecklenberg that we just added back in to the bill. > Do we have any discussion or debate on the amendment 9? >> Mr president. >> Senator Wadell for what purpose do you rise? >> For amendment sponsor. >> Senator Tillman do you yield for a question? >> I'll take one from the great senator my guess Charlotte mathes/g some Over there. >> Okay, my question is, I heard from Chair of Mecklenburg, the boy chair, as well as the members and my question is, are they aware of this amendment? >> I don't know. I'm sure they've known it because Senator Ford says he tells me what a great program it is and he wouldn't tell me that unless it was the honest truth. So you ask him. >> Thank you. >> Any further discussion or debate on the amendment? Hearing none the question before the senate is the adoption of amendment nine. All in favour will vote I, opposed will vote no. Five seconds will be allowed for the voting, the clerk will record the vote. [BLANK_AUDIO] [UNKNOWN] I , Foushee I. 49 having voted in the affirmative and zero in the negative, amendment nine is adopted and the bill as amended is back before the body. Do we have any further discussion or debate on the bill as As amended, hearing none, the question before the Senate is the passage of the Senate committee substitute the house bill 1080 as amended on its third reading, all in favor vote I oppose the vote No, five seconds be allowed for the voting the clerk will record the vote. [BLANK_AUDIO] 35 having voted in the affirmative and 14 in the negative Senate committee substitute house bill 1080 as amended passes its third reading, the amendments will be engrossed and sent to the house for concurrence in the Senate committee substitute. >> Senator Barringer for what purpose your eyes? >> I'm waiting for the bill to be read. >> Very good Senator Senators we have public bill for concurrence Senate Bill 481 the clerk will read. >> Senate Bill 481 [INAUDIBLE] small business department of revenue ruling. >> Senator Baringer you are recognized. >> Thank you Mr President I ask that you concur in this bill Historically this passed out of this chamber the first two parts unanimously it is now returned to us with an additional part but that part did pass the house 114 to nothing I will very briefly explain what that is and I do urge your support of in-concurrence, its a provision That will allow municipalities to charge permit fees to public utilities if their permitting cost exceed the revenues municipalities receive from the combined sales tax on public utility services, the [INAUDIBLE] municipalities and the stake holders have all agreed to this and so I do ask for your support. Senator Baringer ask that you do concur Have any further discussion or debate, hearing none the question before the Senate is the motion to concur in House Committee substitute Senate Bill 481 all in favor vote I, oppose the vote No, five seconds to be allowed for the voting and the clerk will record the vote. [BLANK_AUDIO] Bingham Bingham I, 49 having voted in the affirmative and zero in the negative the Senate concurs in the house committee substitute to Senate Bill 481, and it will be enrolled and sent to the government. [BLANK_AUDIO] Senate bill 482 clerk will read. >> Senate bill 482 LLC classification prevention ownership. >> Senator Ben is recognized >>Thank you Mr. President. I ask that you not concur in this particular bill. There is correction that needs to be made. The stakeholders are all on board and we're ready to Ready to get back repair and try asking not to pocker. >> Senator Ben Arassi you do not concur. Do we have any discussion or debate? Hearing non course for the senate is the motion to concur and house committee substitute to senate bill 42. All in favor vote Aye, all oppose will vote No. Five seconds to be allowed for the voting and clerk record the vote Mikissa Wared No. Six having voted in the affirmative and 43 in the negative. The senate does not concur in the house committee substitute, senate bill 482 and the house will be notified. >> Mr. President. >> Senator Va Dine what purpose do you rise? >> I rise to change my vote. >> Senator Senator from. >> Yes to No. >> Yes to No. Senator Van Dine Yes to No on the last. >> Mr. President. >> Senator Daniel. >> I rise to change my vote from Yes to No on the concurrence.

>> Okay. Senator Barefur. >> Yes to No >> Barefur Yes to No. Tucker? >> Yes to No. Thank you sir. >> Yes to No. Anybody Anybody else? I think that may be everybody. Senator Tart. Changing your vote to no as well. [BLANK_AUDIO]. >> What was the final count? >> Final count was 1 to 48 Senator Pate for what purpose do you rise? >> A different subject. >> Senator Pate you have the floor for a different subject. >> Conferees, Senator Burger makes the following appointments to the conference committee on Senate Bill 482 LLC clarifications and employment Invention ownership. Senator Barringer chair, Senator Lee, Senator Blue. [BLANK_AUDIO] >> Senators this takes us to Public bills conference report for adoption of 2nd reading roll call House Bill 1030, clerk will read. >> House Bill 1030, 2016 Appropriations act. >> Senator Brown is recognized to explain the bill. >> Mr. President. >> Senator Barringer for what purpose do you rise? >> To send forward my withdraw of my excuse on voting on house bill 1030, the conflict of interest has been resolved. >> You can send that forward senator, thank you. Senator Brown you're recognized. >> Thank you Mr president, first I need to begin by thanking all my appropriations chairs senator Jackson senator Herrington, all my sub-chairs who worked so hard for this thing together and probably most of all the staff that really dose an amazing job helping us work through this process and the expertise they have to help us put this thing together. I think we have a pretty good product to present today And I'll try to get into some key pieces of it, but the Senate house has reached a final budget agreement that achieves our shared goals with Governor Maccoy to prioritize teacher pay raises, cutting taxes on the middle class, controlling the growth of government spending and bolstering our savings. A 22.3. 4 billion dollar compromise plan, includes a responsible 2.8% spending increase, invest hundreds of millions of additional dollars in public education, insurance of the state's rainy day fund by close to $475 billion. It continues a commitment made by Republican state leaders to. Dramatically raise teacher pay, with a plan to boost average teacher salaries to $50,186 next year and to nearly $55,000 within three years. It would see the average teacher pay about $50.000 for the first time in state history and when fully implemented it would mean average teacher salary. Salaries are up almost $10,000 more than 20% on Republican leadership since the 2013, 14 school year. It provides more than 550 million in salary and benefit changes for state workers including a permanent pay increase and bonus for state employees at a cost of living Cost of living bonus for state retirees. It also includes provisions to help make college far more affordable and accessible to students across the state and to strengthen and stabilize three of our public universities with lower enrollment. Finally provides major tax relief to the middle class and small businesses while making the first $17,500 a family earns exempt from income tax over the next 2 years. This means a family making the North Carolina minimum a $44,000 annually will see an additional tax cut of $110 next year alone. We're proud that the Final product continues the discipline and conservative principles of spending responsibly, taxing sparingly and saving wisely that have turned North Carolina's fiscal outlook around over the past 5 years. I'll try to touch on some high points or highlights of the budget And the salary and benefits package and again I'll touch on the first piece which lays the foundation to dramatically increase the average teacher pay from $47,783 to $54,224 over the next 3 years which will provide North Carolina public school teachers An average $4700 permanent pay raise of the same period and propel the state to the top of regional rankings. This is addition to the generous pay raises legislator passed in

2014 and 2015. It includes a 1.5% permanent pay Increase and half of one percent, one-time bonus for state employees and also $80 million increase for merit-based bonuses and a 1.6% cost of living bonus for retirees. It offers experience-based step increases to teachers, assistant principals principles, state highway patrols troopers, courts and magistrates and appropriate 16 million to boost pay for correctional officers and provides a 4.5% pay rise to assist in district attorneys, public defenders and other judicial branch workers. It includes $10 million for a pilot program to provide a performance based bonuses of up to $6,800 for third grade reading teachers. Five million will be available for the top 25% of teachers in each school district based on reverse growth stores, and an additional five million will be available to the top 25% of teachers on a state wide basis. Basis. It establishes performance bases bonuses for eight pay in career take education teachers when students are successful in completing HEPI exams and earning industry recognized certificates and credentials. [BLANK_AUDIO]. So we now we Highlights that I will touch on is it the direct federal funds, the [INAUDIBLE] initiative and water and sewer projects and public schools . And employee of this government transparency by helping office of the state auditor conduct more specialized audit of state agencies. And by implementing a new filing system for statements of the economic interest That provides a recurring funding for the Human Relations Commission. It establishes a cyber security program for disabled veterans to develop their skills while preventing the state against cyber attacks. It adds 10 million dollars to the Disaster Relief Fund. It pays off an outstanding 37 million dollar loan from the Federal government. That Governor Jim [UNKNOWN] in 1999 and differed payment on over 15 years. This will save the state 45 million dollars in interest over the next 30 years. And invest 12 million to implement state of the art software to ease tax filing for North Carolinians. That's the highlight of the the budget then at this point i'd like to turn it over to Senator Barefoot. Senator Barefoot who will touch on education. >> Senator Barefoot has the floor. >> Thank you Mr. President and thank you Senator Brown. I'm just gonna go over some highlights from this year's education budget. The fiscal year 2016/17 budget for education includes a net appropriations of 12.68 billion that's 349 million or 2.8% over last years inactive budget. It includes provisions to help make college more affordable and accessible to students across the state. And to strengthen and stabilize three of our public universities with lower enrollment. It includes 10 million for a pilot program to provide performance based bonuses of up to $6,800 for 3rd grade reading teachers. 5 million will be available for the top 35% of teachers in each district based on EBAUM'S grade score and an additional 5 million will be available to the top 25% of teachers on a statewide basis. We established a performance based bonus plan for AP and Career Tech teachers when students are successful in competing in AP exams. And earning industry recognized certifications and credentials. Before we find enrollment growth in the K12 community college and our public universities. We continue our commitment to lower classroom sizes and early grades a step researchers repeatedly shown as a key to academic success. By hiring close to 450 additional first grade teachers in this budget. We protect the states read to achieve program, our school connectivity funds, teach for America and community and school programs from being cut by the department of public instruction. We established an opportunity scholarship grant, fund reserve of 34.8 million dollars to award more need based scholarships to children from working families, and provide full funding to add 20,000 children to the program over the next 10 years. We created a teacher assistant tuition reimbursement pilot program in Anson, Franklin, [UNKNOWN] Richmond, and Scotland counties which will provide tuition reimbursement of up to $4500 annually for 25 local TAs. To pursue a college degree leading to teacher licenture.

Sometimes it is easier to grow local than it is to recruit. We hope some of our [UNKNOWN] counties do that. We fully find teacher assistant positions at the 2014,15 level, we provide the school performance grading A through F school grades will continue to utilize a 15 point scale for the next three school years. We allocate 10 million dollars to assist teacher professional development And technology infrastructure improvements, we do like 3.5 million in additional funds to grow the principle preparation program to meet the demand to train new and aspiring public school principles. We authorize an increase in the base budget for the UNC system of up to 40 million dollars to fund the access to affordable education Act. Some of the other things we do in higher education we guarantee no in state tuition increases for a standard undergraduate college term usually four years at all North Carolina Public Universities, not only providing certainty to families who are budgeting for college cost and task payers who heavily subsidized them, but also additional incentives to students to complete their degrees on time, this tuition guarantee would also apply to active members of the military based in North Carolina, another thing that we have worked on for many years as we are free student fees, often used to fund none academic expenses, at all North Carolina Public Universities at their current levels and limit future increases to know more than 3% per academic year, some of you are aware that we have Universities that charge more than fees than they do tuition. I've mentioned that we lower tuition at select universities that amounts to the cost of $1000 per year for in state students and $5000 per year for out of state students ensuring all North Carolinians have an affordable option. This will also help attract new students to universities with low enrollment, make the schools more stable and competitive and stimulate struggling regional economies that sometimes transcend the state boarders, the reduced tuition will apply to the following schools, beginning in the fall of 2018 Elizabeth City State, University of North Carolina Pembroke and Western Carolina University. We do like 300,000 on the recurring bases to administer the new [INAUDIBLE] merit scholarship program for students at NC Central and ANT universities, we provide a community college tuition and registration fee waiver to firefighters, ANS, rescue, life saving personnel, and to our apprenticeship programs. We expand internship programs for students at the states historically wide colleges and Universities, and we require eight public universities with educator preparation programs to open and operate a lab school for Keith/g or eighth grades students in a school district where 25% or more of the schools identified are low performing, folks that's just the highlights, in the past couple of years we've done more for education at this scene than this sate has seen in a decade and I hope that this education budget will earn your support and now I would like to pass pass it off to our HHS, one of our HHS sub chairs Senator Ralph Hise >> Senator Hise is recognized. >> Thank you Mr President members of the Senate looking at the HHS budget this year I guess it all starts with due to a decrease in utilization and enrollment for the first time our surplus translated to a 318 million dollar reduction in the base rate of medicaid, in the five years that I've done this as HHS chair, I'm excited to come here and not be talking about the massive hole that we are needing to fill in the HSS budget but then we can focus on other priorities in our state because of the slowing in growth rates in those areas. Specifically in the budget a few things that I think were important to highlight, the first is when we look at healthcare across the state and we see those shortages one Hear about later in education we're focusing on putting more doctors and residents in the North Carolina. So we put 7.7 million [INAUDIBLE] our hospitals so that they can convert the new Campbell hospital and we begin to get those graduates coming in every year and later, you may have heard about the UNC ash, the UNC Expansion and [UNKNOWN] of their medical school to be able to do the same. We've also increased in several of our services. For precare and for child care subsidies we're no longer talking about just maintaining those programs,

we've actually gone in and expanded slots in both programs As well as began to pay market rate in more of our counties for our children under five for those subsidies that are coming in. We had a lot of problems coming up this year with out child welfare program. federal government came in to evaluate our child welfare program And while they don't say we failed it, we failed to meet any of the measures of our child welfare program that the federal government had set forth. So we have many investments both in technology and people and training to help us to be able to comply so that we can track children across counties when they live under The child welfare program that we can follow up with those families and we can begin to comply with the orders and the agreements we've got with the federal government. A few other things just to touch briefly, the governors task force on mental health and substance abuse we have funded with $20 million that is split between recurring Non- recurring funds so it's a major investment for us. We have also expanded CAP/DA slots to help Alzheimer's patients. And for the first time since I've been here we've actually been able to fund 250 additional innovation waiver slots. Dominic for the IDD The community and others that we can began to expand and that services, it's so greatly needed in our state, but a wait list that has been none moving and kept for many years. And in great credit Senator Tucker in his focus on the issue, i will also say that we will now be entering into a contract in the department of health and human services Services that when we make mis payments and over payments of less than $150, those aren't just merely oops-es on the thing that we will actually recover are those payments from providers and others compared to our current policy where we just ignore those mistakes that we are coming in and we begin And we think in the future there's a lot of potential in being able to recover those not only in direct recovery, but hopefully in stopping some of the billing that may occur underneath that level. I have been more than happy to answer any of the questions individuals may have but for the first time in a long time this may not be the major focus of our budget in the senate And next we have Agricultural and Natural Economic resources Senator Wayne << Senator Wayne is recognized. >> Thank you, Mr. President and Senator Hayes we're really happy and excited also that we didn't have to luck a hole in your budget over there in DHHS. Wanted to let you To let you know, first I'd like to thank my co-chairs Senator Brown, Senator Cooke and our co-chairs on the house who we enjoyed working with this year. Also the staff who put up with this thing, that's really the truth this late hours we put in but they were always energetic. We might have Dragging a little bit but they were energetic. First we'll talk about agricultural natural and economic resources our budget was in 2016 to 2017, 536.3 million had a 65.6 million above the budget we got an active less session And its a 14% increase. I'm just gonna hit a few highlights in agriculture we provided 3 million for a fire fighting plane and heavy equipment for forest service. We also provided 1.12 million for the package trust fund and 1 million to agricultural Development and farmland preservation trust fund for military buffers. We provided an additional one million for oyster sanctuaries. We provided 600,000 to support commoners operational needs including [INAUDIBLE] expenses. We provided an additional 8.6 million for the cleaning of water management trust fund and an additional 500,000 for the grass roots auto program. And the special provision I am just gonna get a few highlights is now included in there a healthy food smaller retailer program We clarify the [UNKNOWN] control funding eligibility, we also under the development of new comprehensive nutrient management regulatory framework is now only focuses on Jordan and falls Wake Also we use some community program funds for a ball [UNKNOWN] initiative for water and sewer projects and public schools and under the Amsted act performing changes it will allow the North Carolina zoo to

lease property To a private entity for the operation of a hotel by tourism in. And that's the highlights and I'll also be glad to answer any question after the presentations and next Mr. President I yield the floor to Senator Randomen for justice and public safety. >> Senator Randomen is recognized Thank you Mr. President and let me begin by thanking my co chairs Senator Newton and Senator Bingham and also the co chairs in the house were very good to work with they were very cooperative and things went very smoothly. And the JPS staff we can never say enough about how much they work with us and how much they help help us in getting our budgets together. The 2016/17 budget for Justice and public safety includes net appropriations of 2.6 billion, [INAUDIBLE] $8.8 million are 3.9% above the amount enacted for 2015/16 and the department of public safety it provides 1.2 million to [INAUDIBLE] a medical claim processing contract for inmate medical service and what this allows the hospitals that serve inmates this will allow them to be paid in a more timely fashion. It also provides $8 million for the State Bureau of Investigation to purchase a new plane for the department of justice we provide funds to equip and operate a new western crime lab in Edneyville, including 1.1 million in equipment. We provide 2.2 million for outsourcing toxicology and DNA forensic analysis services. For the office of [INAUDIBLE] we had 2.5 million non recurring to the private assigned private fund to address the back log of payments to attorneys to represent indigent clients. Also for the office of indigent offence, we will be looking at the future of the IDS and the related functions and they also in conjunction with the AFC will A program of flat fee payments for attorneys representing indigent clients. IDS has also been directed to study and if feasible resatellite original capital defenders offices. Finally, IDS has been directed to study the prosecution of Capital cases to determine whether there is a more efficient way to to identify potential capital cases and how the state may more effectively utilize local council in these cases. In the conference report for the administrative offices, that the courts will provided funding for district court judges in District 19A and in District 27B and also we restore funding for ADA positions in District 9A, District 15B and District 20B which are positions that was eliminated in the 2011/12 budget. The center bound has already mentioned the salary increases we did include the staff increases for our State Highway patrol, magistrates and clerks who all have statutory pay plans, the custody based salary plan for correctional officers, the additional salary increases for the SPI and ALE agents and also a 4.5% salary increase for judicial branch employees. And Mr. President, that will complete my comments and if you will recognize Senator Jim Davis to speak to general government. >> Senator Davis is recognized. >> Thank you Mr. President. Ladies and gentlemen, I wanna first of all thank my coach here Senator Sanderson and our very capable staff for making this [INAUDIBLE] with our house counterparts we did a better job than they, I'd like to hit some of the highlights, our total budget was $427.5 million which is a 9% increase over 15, 16, or $36 million, and we have a lot of moving parts so I'm just gonna skip through them pretty quickly. First of all, department of Military and Veterans affairs. We provided two positions to help meet the increased burial needs at two of our veteran cemeteries, that's Jacksonville and Spring Lake. Department of State Treasury, we provide funds for a core banking system of $450,000 and authority to spend the receipts for the For the operations at the new location on Atlantic Avenue. We also funded the local government commission with one new position to assist local governments on the watch list. We have about 130 local government entities that are at risk and we decided to be proactive to address their discrepancies The department of insurance, we provide funds for their newly renovated Albemarie building for IT infrastructure and associated costs for total of about a million dollars. Provides funds for an actuary position for use in the captive insurance regulation. Authorizes and funds two positions for consumer assistant positions

that will help with their increased work load and calls within the customer systems group. Provides funds to make the North Carolina Building Code registry fully online accessible. We also in the office of State Management and budget, we provide funds for positions to to assist agencies to work with connect bond North Carolina projects and we authorized and we funded the three positions for the upcoming connect North Carolina Bonds. Office of the State Auditory we provide additional funding for their subject matter experts for specific areas and we all we also provided funding for a security guard for their building to be shared by the Auditor, the Secretary of State and the Secretary of Labor. Housing Finance Agency we provided additional $5 million to the workforce housing loan program which brings their total funding to $20 million. Secretary of State we increased their securities division staffing by six employees to address their increased workload, the department of administration restores the human relation commission funding and adds one new administrative assistant position, we also made change to the youth advocacy and involvement office, the director position is eliminated and two position and funding are transferred to the new council for women to create a council for women and youth involvement. Then we transferred 2 million dollars from the general fund and to the state land fund. Ethics commission we provided funds for ongoing maintenance to their on loan filing system. We had some problems this year and so we are trying to address those. State controller restores the transfer of funds from a highway fund to the controller for positions in the states human resources and payroll system and Mr President that covers the highlights and I'd like to pass on to Senator Meredith for transportation. >> Senator Meredith is recognized. >> Thank you Mr President, members of the Senate I would also like to thank my coach here Senator Raven, Senator Daniels, and Senator Gunn I appreciate you all helped through this process. The combined project revenue is related to 515 budget by 4.7% of the increased revenue is due to DMV fake fee changes in the 2015 budget. The increase in highway use tax revenue associated with new and used car sales. In the money, we decided to appropriate $10 million to establish a state wide reserve for vessel replacement in the ferry system. We're gonna match federal funds to initiate a passenger only service between Hatteras and Ocracoke, and we have other funds for capital improvements. We increased recurring funding by 32 million to the strategic transportation investment fund. Thank you Mr. President. I would like for you to please recognize Senator. RecHise to go over the IT budget. >> Senator Hise is recognized. >> Thank you Mr. President. On the IT budget I would also like to thank our, central staff. This was a new group that came together this year to do IT budget and it's one of the smoothest processes we've had on the IT budget. Most of the work, we did in the IT budget was About suring up consolidation that we're doing in a few years. Be prepared to see a lot of changes, hopefully starting next year as we consolidate these agencies where their IT budget is actually run through IT. And we can have some responsibility and hopefully get out of some major contracting problems we've had with those projects historically coming in. Now one of the highlights of the budget is really looking at cyber security apprenticeship program for disabled veterans. It's a partnership that we're working with Wake Tech and others to bring individuals through that program beginning with five and begin to provide cyber security across the state. We've gave the initial funding and we'll fund that through rates and future years. Also the longitudinal data system that we've all looked at being able to follow children from pre K programs all the way through work force. We're now moving that under IT where we have the analytics capability under the data analytics center to be able to work on that programs specifically. Also doing a lot of work insuring our budgets as we moved agencies. To make sure we're allocating that and probably the biggest point here is that we now exempt the State Controller, the State Bureau of Investigations, the State Highway Patrol and the Division of Emergency management from IT oversight. As we look at law enforcement and the controllers office. I know a lot heard about those issues and how they are unique in those areas and have different federal requirements to allow them to provide their own IT services. So I'd be more than happy to answer any questions but [UNKNOWN] recognize from the finance committee I'm going to guess if that's

a Senator Raven at this point. >> Senator Raven is recognized. >> Thank you Mr President ladies and gentlemen I will present the finance provisions or part of the budget that begins in your booklet on page 2016., I'm happy to report that again this year we have Cut taxes in North Carolina as we have done every year since 2011. The highlights of this year's finance provisions are an increase in the zero tax bracket.It's very important the middle class income,it will provide significant release to middle class families and Increases the amount not subject to any income tax. Now $ 1000 per year from [UNKNOWN] filing jointly in both 2016 and 2017 by raising standard reductions from 15,500 to 17,500 by 2017 most tax payers should receive a tax refund in both years. As [INAUDIBLE] said earlier we have seen a tax savings of 440 million dollars I believe so to be fair to every family in North Carolina, number two, we had some additions to the neural machine we tax to the one percent 80 as you notice certain industries that manufacturer and produce widgets if you will they pay a maximum of one percent tax or 80 dollars on their equipment It clarifies this for several of our industries in the state, we initiated the beginning of market base sourcing which you have all heard a lot about and you are going to hear a lot about it next year, market base sourcing goes hand in hand with a single sales factor that will be coming in 2018 we hope to have it completed by that, this document does not enact market based sourcing, I repeat it does not enact it but it sets in place a way to have rules and regulations brought before this body at another time to do that Final approval of the rules and rules review will occur at another date and you can follow through that in your document if you so wish. Let me turn the page, there's more folks and it gets better. [COUGH] We have a grace period for continued. Out for confused tax payers. As you know, last year there was a lot of confusion about what happened with the sales tax issues and who was and who was not a retailer. This year that is clarified in the budget. There's a grace period for those who may have made a mistake. And the department of revenue is. Is giving leeway in working with those individuals or companies to make sure and to bring them up to date. And that pretty much is the long and the short of the tax portion of the budget document. Again we're proud of what. Proud of what we've done. We're proud to continue to move the ball forward and reduce the tax burden on the citizens of North Carolina. Mr. President, I conclude. >> Thank you Senator. Any discussion or debate? [BLANK_ AUDIO] Senator Smith Ingram for what purpose your eyes? >> To speak on the conference report Mr President. >> Senator Smith Ingram you have the floor. >> There is a lot that this budget is purported to do in terms of spending responsibly taxing sparingly and saving wisely, the optics sound good on that but in actuality See there's a large part of this budget that places the priority on pet projects over people. In fact pet projects over a constitutional priority. By the North Carolina Constitution it is our responsibility. To provide a free and appropriate public education to the point that it is our duty. It is our duty as the State to guard, to protect and to provide for that right. Left out of this budget were cop cooperative and innovative High schools otherwise known as early colleges. There were 14 early colleges on the list, 9 of those brand new schools opening up in counties across the state. 5 of these schools that were approved of funding to be new early Colleges, innovative high schools,

career and technology focused, those schools were not funded in this budget and it is absolutely sad. It brought me to my knees, I have continued to pray and I'm gonna still pray because we have to place the priority on these students. This is what This is what an early college does, it enables our students to walk across the stage with a high school diploma in one hand and a career certification in their other hand. Those going on to a four year university get to walk into a four year university having accumulated the credits, that they walk in as second This semester's sophomores or juniors. What better way to make a college education affordable. Many of the students who attend these early colleges across the state are first generation college students. This is their only opportunity. Of the 5 counties I'll list them Pearson, Alexander, North Hampton, Chatham and Camden. Camden and North Hampton tier one counties. Pearson and Alexander tier two counties. Chatham tier three. And our most economically distressed counties and early college is Out for students. Not only does it provide them with college credit, it puts them in an academic setting where they can learn and grow and assimilate to the college culture. I believe that we can do better that what has been offered in this budget. I believe if there's the political will and the willingness to place a priority of a constitutional right over PrEP projects we can do this. And as it was striking and very disappointing to me when I read on page J59, item number 57 providing a grant and aid to New Hanover county board of Education for the purpose of planning a new career and technical education high school. In partnership with capfield/g community college imagine that. A million dollars appropriated to one County, one county to plan an early college, yet we have 5 early colleges who were approved in December that requested funding of $315,000 if you just do the 5 early colleges that's simply $1.6 million. But yet we put aside $1 million for one county where we have five schools that they have received the appropriation that they were looking forward to and they had the expectation of that would have been 315,000 times 3 which gets us to the 1.6 million. I'll end with this We have students across the state of North Carolina who deserve and have a right to experience a promising future by being able to attend these early colleges with funding. But yet we have set aside $34 million In private opportunity dollars scholarship grants. To put in a reserve for the future for private school vouchers when we have students who std here in the present, who deserve and desire and need this opportunity. And then After this year we put aside another 10 million to the tune of 44 million then 54, then 64 by the time you get to 2027 the budget calls for a reserve of $144,840,000. Are we gonna put Pet projects over the priority of giving much deserved early colleges who will equip our students with affordable college education, giving them a step in a positive direction.. I believe we can do better than that. I will continue to pray that over the next couple of days maybe in the technical corrections. If there is the political will and the willingness to perfect and correct the optics on this, we have to place this as a priority over the PrEP projects that are in this budget, pages Ages of pet projects. Please, please can we do better and provide cooperative innovative high schools with the funding that they deserve and need in order to function to provide purposeful, wonderful opportunities for students in the future Any further discussion or debate? Senator McKissick for what purpose do you rise?

>> Speak on the conference report. >> Senator McKissick you have the floor. >> Preceding Speaker spoke of the optics, the optics are what is being created here. Whether you're using pet projects and funding pet projects over education. Well there's one project that I've had deep concern about for quite some time. Project that i've seen evolve over roughly about 2 decades. A project that will provide A light rail system. We desperately need a light rail system between Durham, Chapel Hill eventually tying in Raleigh with buses, inner buses coming between this communities at frequent intervals that will take people down to that light rail station. And also provide a frequent of service but if you're right here in Riley, you can get on one of those buses and get to [UNKNOWN] We'll be bringing every 15 minutes or so. And I've seen that plan evolve. I've seen people work on it collectively between these communities. Last year Where we had a provision, special provision in the budget that basically brought that project to a stand still. If I didn't do so, let me tell you, because that project is a very complex project. It provides state funding that's necessary. Local. Funding that's necessary. That local funding that [UNKNOWN] is the equivalent to the amount of state funding going in to it plus federal funding. 50% federal funding, 25% state, 25% local. And it go on through a very extensive review process extremely expensive review process according to thsi strategic mobility fund. I think all of you were here with that or most of you in that strategic mobility fund was put into place. The goal of it was to depoliticize this process. To establish a Objective criteria, that would be used as a basis of allocation of those transportation dollars. Well this project went through that rigorous review, it got conditional approval for $138 million. But last year, there was a special provision inserted in the budget. Not withstanding that exhaustive and extensive review, and satisfying all the appropriate criteria that rather than being able to avail themselves $138 million, they capped it out at 500,000. Well this year there's another special provision here. Page 179 it says repeal lite rail funding cap. The optics it could. I always look at the details. The details establish the process which is nothing more than going in there then establishing a new set of rules by putting ourselves right smack in the heart of what we say we were gonna get out of. We say we're gonna depoliticize these [UNKNOWN], we were gonna use these objective criteria that we were gonna come up with ways that decided these priorities. I supported that legislation Because I thought that's what we were doing, but I hate to see us go back in here now and establish standards, they are gonna basically make it extraordinary challenging for that project to move forward at this time. To get the federal funding that they need they are gonna be pushed back in the que, they are gonna have to go back and get reprioritised again according to new standards. You can't go about changing the rules just because you don't like the outcome. That's fundamentally wrong. We're supposed to be playing on a level playing field here. That's what we talked about establishing. But more importantly the optics here are wrong. Because the optics suggest but we're doing another. Doing something completely different. There's some good to be found in this budget. There are provisions in this budget in terms of some things which has been addressed which I could embrace, but there are others such as the one that Senator Smith Ingram spoke of which I detest. Which I find deeply troubling, which I find challenging in terms of what which should be about doing. I understand the political dilemmas of putting together a budget. There's a lot of moving pieces,

a lot of competing priorities and lot to be done in terms of making allocations that are reasonable and appropriate. I understand that from time to time there are gonna be special projects included but same time. Lets first and foremost make sure that we fund those things that we have a duty and obligation to fund, the constitutional requirement to adequately fund education. I've heard so much about teacher pay and I'm glad it's moving in the right direction. We're doing that. But right now in North Carolina we're 50th among the 50 states in principle pay. Heard a lot of talk yesterday, talking about what we need to do in terms of turning around our schools and this failing districts. Placed it as bottom 5%, turning it and providing the quality of leadership and talent that was needed. It's hard to always find it if you're 50th among the 50 states in principal pay. There's a lot that we can do, more importantly there's a lot that we can do working together. Coming together proactively, coming together and sharing ideas and doing what the board of Carolina expect of us. They teared down the sire laws To set the priorities straight, not just to speak of things in optics that make things look good and sound good while accomplishing a contrary outcome. That we're capable of and that I hope we will do in the future. [BLANK_AUDIO] Any further discussion or debate? [BLANK_AUDIO]. Hearing none, Senator Brain, what purpose do you rise? >> To speak on the conference report. >> Senator Brian you have the floor. >> I just wanted to make one additional point about the conference report that was Was concerning to me and I think is symptomatic of what some of the problems are. On the conference report on page G18, if you look at the funding for North Carolina Pre-K and for The childcare subsidy, you will see there that we are funding and additional of 260 children in each budget category. The waiting list for North Carolina pre-K as of August 2015 was 7300 children and the waiting list for childcare subsidy as of this spring in March of 2016 was 20,000 children both important educational programs and in the case of the childcare subsidy helping our low income parents and working class parents to actually work. If you look on page F24 as has already been mentioned in the opportunity scholarship grant fund reserve, we are increasing that funding by $20 million a year and again forward funding it in that amount ongoing into 2028, and the additional funding for pre-K and childcare subsidy is 1.3 million each. To me that indicates some serious concern into where our priorities would be with those thousands of children, are stranded from what we now are evidence based early childhood programs that will make a difference in what the next generation can produce for our state. and for that reason I think that this budget has some priorities in the wrong place. Thank you. >> Senator Blue, for what purpose do you rise? >> Will Senator Brown yield for a question? >> Senator Brown do you yield? >> I will. >> Senator Brown I was looking on page nine of the budget bill. The budget stability and continuity section, and I noticed in that, that basically it sets a sort of stop gap in case the house and senate can't agree in the second year of a budget year, and basically defaults to the prior budget without forcing the two chambers to come together to do the adjustments that ordinarily would be necessary.

Is that a primary purpose of this provision to basically prevent the two chambers form having to work together when there are a little disagreements between them? >> Senator Blue I think it's the exact opposite. I think it puts pressure on us to work together and to get a budget out on time. >> Follow up. >> Senator Brown do you yield? >> I do. Well if you are automatically defaulting to what you did the earlier year, then what is the incentive to make you change if you wanna be stubborn. He negotiated several budgets now. >> I think in each year there are a lot of priorities that all of us would like to accomplish and again I think it puts pressure on us to get a new budget done that addresses those priorities. >> Thank you. To debate the bill Mr President. >> Senator Blue you have the floor. >> Thank you Mr President and my colleagues here in the senate. Before I looked at this budget, I asked myself one question And it's the same question that I hope the other 49 of us ask each day before we come down here to work. And is the best possibly we can do for the 10 million citizens of North Carolina? So that we can foster widespread prosperity all across the state. Senator McKissick talked about our area here in the research triangle, area of over two million people and in 20, 25 years will be over four million people an the the kinds of things that the people in this area have determined they need in order to be prosperous and spread that prosperity, and there are other things that I could point to but in looking at this budget it's clear that we could do better with the resources that we have. I hear a lot about the state surplus and that's something to be applauded in the US following, the great recession brought on as Senator Rucho pointed out yesterday in the federal administration That was headed by George Bush, and I applaud this special fund because I happen to have played some role in creating the rainy day fund and I think it's great that we fund it, it also has been recommended by most of the. responsible for financing and meeting sources and we're at enviable position with the rainy day flame now, but what this budget conference committee has chosen to do with the people's money generally reminds me of the priorities of the front row and of those of us who are on the back row. And it really makes me know that those priorities are really very different in significant ways. Now, I'm not here to vilify my Republican colleagues. I don't do that. Because I think that there's some great things in this budget. There are things that all of us can Can be proud of in this budget.But the budget committee protected state employee pay rises. I think that that's to be commendable. And called for a pay increase for many of our teachers. And I think that's to be commended. Because those are Those are pay increases that are solely needed as we've recovered from this 2008 [UNKNOWN] and this great recession.The greatest in this country in almost 70 or 80 years. And I look at What Senator Waddell Smith and Van Duyn did in their effort to freeze college tuition, and commend you for including that in this budget. You need to know when you go to college that you are gonna be able to afford to complete it and Been in tuition fees and everything else constantly going up introduces uncertainty to that possibility. So I commend you very highly for doing that. And I think that the students across North Carolina at least four years after they began, will commend you for it and And will commend and be grateful to Senator's Waddell ,Van Duyn and Senator Smith for poaching that idea.Now, you have been in the crusade to clean

up Jordan lake using muscles and believe it or not Or not, those of us in this region appreciate your doing that.You know,drinking muscles wan't everybody's favorite [INAUDIBLE] beverage.So I appreciate that, and I'm sure that hundreds of thousands of fellow residents who are in the research triangle area appreciate it Shaded as well. The two most concerning issues through in this budget is [UNKNOWN] left in the table and what we added in the details of this budget. Our state retirees are struggling and they deserve better than a one time bonus like increase With this budget, we missed a mark on getting our schools back on track. Again, I think two. I commend you for the teacher pay raise but until we adopt a plan, that brings our teachers to the national average in salaries, we're gonna continue hemorrhaging Teachers to whoever the competition might be. Now, it takes more than just keeping the campaign foremost. All vacant teachers, are vital resources for our schools. And this budget fails to give 8500 of those experienced teachers any Pay raise at all. Some of the most valuable resources in our schools across this state. And we have to offer them the same kind of competitive salaries that other folk are willing to offer them. And gaining North Carolina back as a leader in education is more than about salary requirements. You know that as well as I do. We need to make sure that we're giving our teachers and school administrators the tools they need to continue educating all of our children and to do their jobs. When I was growing up we used to talk a lot about [UNKNOWN] trade mechanics. Anybody could fix a car. But if you're gonna have somebody do it now, it takes more than just being an old shade trade mechanic. And you gotta invest the resources with modern tools and modern equipment to enable them to do it. And I think that we failed in many ways in this budget in doing that. And so our teachers can't do their job in educating students all across the state, and especially in some of the poorer areas of the state without those tools and resources that we still fail to give them in this budget. To chronically under finance school is to fail our students and I believe that they deserve better. I pointed out to you yesterday that mecklenburg, Charlotte, Raleigh, Wake triangle area invest more heavily in schools part of that is brought about because of some of the policies of this general assembly over than the last four, five years, but at least they have the ability to invest more. But we as a state have a responsibility to invest in those places that can't invest like Raleigh or Durham or Charlotte or Greensboro, other major urban areas. And we have to be ever vigilant of that. When we ask ourselves are we doing the best we can possibly for the people of North Carolina, we have to ask what our priorities really are. What I see in this budget is prioritizing the wants of the budget committee rather than the needs the people of the state. I've looked at a lot of budgets and you see the individual projects and at least [INAUDIBLE]. The only problem is you can't barbecue it and you can't eat it. But I guess you can drag it home and be happy about it. But it does not go to addressing the priorities of the children of this state. Now how can we go back to our respective districts and justify spending $34 million on private schools. As was pointed out, when we still have this glaring crying needs from the public schools. That educate kids all over the state. How can we go back and justify spending a million dollars for sidewalks for the towns of Mathews and Methill. Two the most prosperous towns in the state. Two of the most prosperous towns in the state, and we're building sidewalks for them as opposed to putting that million dollars in this early college programs. How can we think that spending a $100,000 for a community pool.

Or $50,000 for a flour/g fishing company should be a priority compared to what our children need still. That's not to say that some of the projects in this budget aren't good projects and worthy of funded support, but we need a system and a process. To help determine what this priorities are and what they ought to be. And if things come through a system or a process, you can justify. Rather than just based on the power of some budget committee member or committee chair. But when we say enough is enough. I think that we really ought to mean that enough is enough. What are the true priorities and the true motives in our budget even though it has many good things. When our public schools are still begging for text books, computer capability, our various kinds of hook ups. And our students are asking their teachers in causing their teachers to spend their own money to buy resources that we ought to be providing for their education. We wonder what messages we are sending to the 15, 16, 17 year olds who page for us in this place. It's difficult to believe that the budget really reflects all the interest of the majority of the people of North Carolina. And I say that in part because there's a noticeable absence of senate participation. Those on the back row in this chamber represent over 3 million North Carolinians who been purposefully left out of this process. Now I know that some of you have bought into the belief that that's par for the course. That's not par for the course. We are at our best when everybody has an opportunity to participate. I stated to you before that a broken clock is right two times a day, so even those of you thinking all for nothing through the process, probably can give you some kind of truth that strengthens who we are as a state and makes this process better, and when you Intentionally leave people out, constituents are asking who is really looking out for their interests? So even the process itself of dealing this budget, cannot be in the best interests of the state, and I know there'll be a comment or a question about what [UNKNOWN] folks appointed many conference committees, not only dealing with the budget, but every conference committee I appointed had Republican representation on it, in fact we felt so strongly about it that it was one of our rules, the majority of the conference committee had to have supported the position but it had to have Variety and adversity on it of viewpoints because different view points in the end make a better government, and that's what a democracy is all about, and that's what solely missing from this budget. If we don't protect the process, then we don't protect the ability to do the very best for all North Carolinians. So I'd say that when we choose not to do our best work by not making it inclusive for everyone then I don't think that we show the people the respect that they're due when we then just rubber stamp what you do. So with some of these misguided priorities, although many good things may be in this budget, and having been barred totally from the process, from what should be a real bipartisan effort, I cannot and my colleagues on the back row cannot support this budget. [SOUND] >> Senator Brown for what purpose do you rise? >> Speak to the conference floor. >> Senator Brown you have the floor. >> Thank you Mr. President I. I guess this is my 12 year here and I plead 12 budgets and I don't know if I have ever seen a perfect one but I think this one's a pretty good one. I felt like I've tried to listen to some of the concerns of this budget, and I feel like it was kinda hard to find them, but I guess I'm gonna try to address some of them. Senator Smith Ingram, you talk about something that I understand why you talk about it But our focus for you was to try to take care of Elizabeth City State in your area to make that university as affordable as possible for the people in your particular area of the state. That's why we put more focus there. We felt like that would do more good than some other things. That was our thought

You may disagree but that was our thought. We tried to help you in that particular part of the state. We heard something on preface slots. When you can create 520 really new slots I think that's pretty good job in one budget cycle. And surely there's always more need but -when you think about the problems we've had in HHS to be able to create 520 more slots, I think that's a he-ck of a good job. We talk about Jordan Lake. There was a lot of discussion on Jordan Lake and we actually had the city of Riley environmentalists in all these negotiations to make sure that they were on board, that the city of Riley was on board. And he was in those meetings and helped us draft the [UNKNOWN] that was in this budget. We talked about opportunity scholarships. It's easy to complain but if you've got a child that is a special needs child or someone that's in a failing school, that opportunity scholarship sure means a whole lot to you if you can change that change that child's life, or move them out of that environment that they're in today I don't think that parent will complain about that particular scholarship. Because their child has no hope where it's at today. We talked about [UNKNOWN] When people were tired of this, no guarantees for [UNKNOWN] a lot of people that are in business don't give [UNKNOWN] And this gives a 1.6% bonus to those retirees, but also it really brings up an issue -that is important. Because our retirement system is Some is based at this point on return of about seven and a quarter percent. And I don't think anybody knows where you can get a seven and a quarter percent return in this market today. And so trying to make that problem whole and trying to keep it healthy was a real priority for us in this particular budget So try to find a way to take care of those retirees but keep it strong and healthy as we could moving forward. Now things may change and we can do more. But I thought that was a good compromise to try to keep the retirement plan as healthy as possible and still take care of Retirees. Again, a lot of work put into that piece of legislation. We talk about teacher national average. The pay piece we got for teachers in two years moves us to number one in the Southeast in teacher pay. Number one in the Southeast. I think that's a pretty good Program. I don't know how you can argue against that. Number 1, the ordinaries invest more in their schools and I'm glad they can because I happen to have two counties where one can do that and one can't. And we can debate on how you try to address that issue. I try to do it last session, landed into a roadblock. But you're right. People from those little wealth counties spend their money in other counties that are wealthy and that wealthy county keeps it all and will continue to have that debate we want to. But we'll try to continue to work on ways to help some of those poor counties. We talked about pork in the budget I don't think Sen Smith is gonna complain about all we did for UNC Pembroke and the Fair [UNKNOWN] Community Library and the South Eastern [UNKNOWN] event Centre and revitalizing downtown Lumberton. I don't think those things look too bad to her. So I don't think anybody's gonna complain about that. We We can complain and find problems for all this, but I think this is a heck of a good budget and it moves this state forward in a way I don't think we've seen in a long long time. Tax relief, pay for all state employees, it's just a heck of a budget, so I'm a ask you to support this conference report and cuz I But I think it is a very good budget. >> Senator Apodaca for what purpose do you rise? >> Mr. President speak on the conference report plea. >> Senator Apodaca you have the floor. >> Thank you Mr President, as everybody knows and almost everybody's happy this will be my last conference report [LAUGH] and listening to some of the comments I think Some other people got a little senile and forgot what things used to be like Senator Rucho, back in the good old days. Let's go back to 2008, 2009. My friend on the back row seems to have forgotten I believe text books, everyone's text book zero that year Terib was a zero. I call your attention to page F7 let's come down to text books and digital materials. 71.5 million it's a long way from zero Let's talk about teachers having to buy supplies Senator Tillman

out of their own pockets. Call on the same page, come up to, 14 instructional supplies 47 million. Now I dare say any teacher should have to Supply supplies with $47 million being allocated. And I remember back in the early 2000, our elementary school at home would run out of copier paper, about six months into the school year, but you know, they is a lot of good things in this Budget you can call it a lot but I'm wanna personally thank Senator Berger and I wanna give a shout out to Senator Van Duyn. Senator Van Duyn if you would please look at page M4. M4 section D University of North Carolina asked for land purchase so they can't piece property next to their campus. Two million dollars, you drop right down below it, the proudest thing I've done since I've been in this body. The Western School of Medicine, University North Carolina School of Medicine will be in Asheville at Mahec, $8 million for it to be built. Right there on that page $10 million going to Asheville. Now if you live in west of North Carolina and feel you can vote against this budget, you need to go home and do some explaining. So I recommend this to you, there's never been a better budget Senator Hayes in this General Assembly, for west of North Carolina than this budget. And I dare say for all of North Carolina. [BLANK_AUDIO] >> Senator Senator Van Duyn for what purpose you rise? >> Just to speak briefly. >> Senator Van Duyn you have the floor. >> I just wanna acknowledge Senator Apodaca that am very grateful to be part of your delegation. [BLANK_AUDIO] >> Any further discussion or debate? Senator Berger for What purpose do you rise? >> Thanks Mr. President to speak on the conference report. >> Senator Burger you have the floor. >> And members I have not heard all of the discussion but based on sort of the last few things I think I have a pretty good idea of where It went and things that were said. I'm gonna ask you to vote for the conference report. And I'm gonna ask you to vote for it because I think it's a good thing for North Carolina, I think that's what we're here for. Is to do what's good for the state as a whole. And the reason I think it's a good thing for us to do is because of several big things. That are here. And I'll just tick off a few of them. I think they've probably already been discussed in a lot more detail, but first of all I think this budget responsibly controls year over year spending growth. In my first 10 years in the general assembly, one of the things that I saw that I thought was Extremely problematic was the tendency of this general assembly at that time to look at how much money was available and basically that's what the budget's gonna be. We're gonna spend that much money. And what you would see is our spending Growth that far exceeded what was necessary to cover the growth and population far exceeded what was necessary to cover the growth in the cost of money or the inflation rate, but one of things that was fairly clear is there is big difference between And wants. And those budgets were basically controlled only by the limit of want. And I can tell you that the want limit was pretty high and so the budgets grew, and I would submit to you that that's the reason we had the problems that we had In 2011 with a two and a half billion dollar shortfall and other problems that have been addressed over the past several years. And so, the budget responsibly controls the growth and spending because we need to be concerned not just about this year but we need to be concerned about next year. And next year, and next year and the year after that. So the other thing in sort of keeping of that is this budget puts a substantial amount of money aside for that day that will surely come when we don't have the revenue growth that we've had over the past several years. For Time when our budget is not one that can be balanced out of what we expect to receive next year.

We have a rainy day fund as a result of this budget that will be at an all time high. In fact it will almost meet what we require our cities to have of 8% of the annual budget, so that's a second reason. The third reason is this budget reduces taxes for all payers of income tax. And that reduction is focused in many respects on those at the lower end of the income scale. So This continues the effort that has been ongoing for several years now to reduce taxation on the job creators, the job producers and the job holders in North Carolina. Next there's a raise for all teachers in this budget. I know we've heard that there's not There's not, but there's a raise for all teachers in this budget across the state. All that are funded by state appropriations. And it continues efforts that have gone on over at least the last four years to raise teacher pay on average in North Carolina and in fact, if you look at the growth that we've seen over the past four years in teacher pay. North Carolina has grown teacher pay faster than any other state. This budget continues that effort. Are we where we need to be? No. Are we on a pathway to get to where we should be? I think so. Over the course of three years, we'll have average teacher pay in North Carolina almost to $55,000. Now think about that and think about where we were in 2010. [BLANK_AUDIO] The budget also provides a pathway for the opportunity of a college education for everyone in North Carolina at a reasonable cost. It does that through a new program that does provide that opportunity to people across the state. It also, for folks who attend our other universities, provides them with some assurance or some guarantee that they're not gonna start their college education, and find that the cost has spiraled out of control. So it does that. First time that this general assembly has taken that sort of an effort in North Carolina's history. And I think the next reason I would say is that it provides a bonus for retirees. Rather than I think folks have used the term in the past eating our seed corn what we've done is we've funded a bonus for the retirees out of current state revenues as opposed to what many would like for us to do, and fund a recurring increase for retirees out of the pension itself. Which will depreciate or deplete the viability of that pension over time because fiscal research tells us that a 1.6% cost of living recurring increase for the retirees will actually cost the pension plan somewhere around $700 million if I recall the numbers correctly. And with the return that we're currently having being below what is built in we're just compounding the problem if we do something like this. So this budget responsibly gives those retirees a bonus funded out of current resources. So what I would ask you to do is look at this and not let the perfect be the enemy of the good. I think anytime you have a budget you can find something in there to complain about. There're things in there that I'm not 100% happy about but I would say on balance this is the best budget I've seen in the 16 years I've been here. And it is a budget that I think we can be proud of and I urge you all to support it thank you. >> Any further discussion or debate? Hearing none question for the senate is the motion to adopt the conference report for house bill 1030. All in favor vote aye, opposed vote no, five seconds to be allowed for the voting, clerk will record the vote. Tucker aye. [BLANK_AUDIO]. 33 having voted in the affirmative and 16 in the Negative. The motion passes and the bill will remain on the calendar. [BLANK_AUDIO] Senator Tillman, for what purpose do you rise?

>> A procedural motion, Mr. President. >> You have the floor, Senator. >> We have a little double conundrum with a couple Of amendments that I have proposed to House Bill 1080. With the rules chair okay, we need to withdraw amendment eight. >> Mr. President. >> Senator Apodaca, for what purpose do you rise? >> Motion please. >> Senator Apodaca, you have the floor for a motion. >> Mr. President, I move that the third reading on achievement school districts, House Bill 1080 be brought back before us for consideration. >> So ordered. [BLANK_AUDIO] >> Senator Tillman, which amendment do you need removed? Was it amendment 8 I believe? Amendment 8, This would not affect the Charlotte lift program at all. We've got a sunset where we didn't need one and didn't have one where we needed one. [BLANK_AUDIO] [BLANK_AUDIO] Mr. President. >> Senator Apodaca, for what purpose do you rise? >> Move that the vote taken on amendment 8 be reconsidered and brought back for consideration. >> So ordered. [BLANK_AUDIO] [BLANK_AUDIO] Mr. President. >> Senator Apodaca, for what purpose do you rise? >> Move that amendment 8 be withdrawn. >> So ordered. [BLANK_AUDIO] Senator Tillman you can offer up a new amendment. Here we have a new amendment? >> No sir we just want to remove this one. I don't know if that takes a vote or, I'm not sure but- >> So we're gonna remove amendment 8- >> We're just removing it and one other thing- >> We're voting back on the bill as amended. Okay. House bill 1080, clerk will read. >> House bill 1080 [UNKNOWN] school district. >> Do we have any discussion or debate? Hearing none the question before the senate is the passage of the senate committee substitute to house bill 1080 as amended on its third reading All in favor to vote aye, opposed to vote no. Five seconds to be allowed for the voting. Clerk will record the vote. >> Berger aye, Harrington aye, Senator Crowvice. 34 having voted in the affirmative. Senator Crowvice, there she is, aye. 35 having voted in the affirmative and 14 in the negative. Senate committee substitute House Bill 1080 as amended passes its third reading. The amendments will be engrossed and sent to the house for incurrence in the senate committee substitute. And I think that wraps up our calendar for the day, does not wrap up our calendar for the day we got another one. Sorry about that senator House bill 630 the clerk will read. >> House bill 630 drinking water protection coal ash cleanup act. >> Senator Apodaca is recognized. >> Mr president thank you very much, members since 2014 we lead the country and trying to solve the long standing problem with coal ash storage. After the government recent veto we've gone back to the drawing board. Our staff have meet for weeks to get a consensus approach by receiving the governors input. I'm happy to tell you about our successes. The governor supports the bill. The secretary of the Department of Environmental Quality supports the bill. We support the bill. First and foremost, the bill mandates that Duke Energy provides clean drinking water to North Carolinians who live near coal ash ponds. That point has been non-negotiable for all of us. Second this bill does away with the coal ash commission and makes the secretary of DEQ, and ultimately the Governor, directly responsible for regulating Duke Energy clean up of coal ash. This bill requires Duke Energy to place three coal ash recycling centers in North Carolina. This bill requires that coal ash be reused in a way that does not harm the environment.

Finally, this bill confirms the historic long standing role of independent citizen commissions in providing oversight of regulators. That practice is good for North Carolina and honors the recent decision of our Supreme Court. We thank the Governor and the Secretary for their extensive input and the Governor's strong support of this bill. I'll be happy to answer any questions and I urge your support of this bill. Do we have any discussion or debate? >> Mr President. >> Senator Apodaca. >> I think I need to send forth an amendment. One moment. [SOUND] Let me see if I can find it [INAUDIBLE] [BLANK_AUDIO] >> There we go. >> To send forth an amendment. >> Clerk will read. >> Senator Apodaca moves to amend the bill. >> Senator Apodaca is recognized to explain the amendment. >> Thank you Mr President. Members, this amendment clarifies that Duke has an obligation under this bill to produce 300,000 tonnes of processed ash. There was some ambiguity in the PCS over whether Duke needed to process 300,000 tonnes or produce 300,000 tonnes of unusable product. They need to produce 300,000 tonnes of usable product. That's what this amendment does, I recommend it to you. >> Do we have any discussion or debate on the amendment? Hearing none, the question for the Senate is the adoption of amendment one. All in favor vote aye. Opposed will vote no. Five seconds will be allowed for the voting. The Clerk will record the vote. Blue, aye. [UNKNOWN] aye, Berger. Barefoot aye, Berger aye, Senator Smith aye, J Jackson no. >> Mr president I have a rule 29 on file regarding this matter. >> You have a rule 29 senators [INAUDIBLE] I'm sorry Yes. >> Okay. Thank you, Senator. >> Mr. President? >> Senator Chaudhuri. >> I'd like to change my vote from no to yes. >> 38 having voted in the affirmative and zero in the negative, amendment one is adopted. The bill as amended is back before the Body. Mr. President. >> Senator Apodaca. >> Speak on the bill. >> You have the floor, Senator. >> That was 300,000 tons, I actually mentioned pounds. I'm going to the doctor tomorrow and I've got pounds on my mind so 300,000 tons. >> Do we have any further discussion or debate debate on the bill as amended. Senator Bryant for what purpose do you rise? >> I have a question to the bill sponsor. >> Senator Apodaca could you yield? >> I do. >> Senator Apodaca can you just explain, I know that previously there have been this issue where DEQ had raided our assess the impoundment that were outside of the named coal ash site that had to be excavated etc. They had assessed this at certain risk levels and now that will change, can you just explain how that will work if you will and what will happen and I apologize for not being on top of this details. >> It's okay, it's been a long day I understand. They have the ability to change the classifications of those last pounds if they meet certain criteria and one of that being were the dams repaired safely and the containment areas are found to be safe enough to date, then they can look at that and perhaps if it's not a high class pond they can cap and place. Senator that's the simple explanation. >> Follow up. >> Senator Apodaca do you yield? >> Sure. >> And after that is there some protocol beyond that helps show us that everybody will be safe, the ground water and etc will be safe beyond that point? >> Yes ma'am. They will fall back into the classifications in the original coal ash management act of continuous monitoring of those areas so they would fall under that category. Yes.

>> Any further discussion or debate on the bill as amended? >> Senator Hise for what purpose do you rise? >> To see if Senator Apodaca will yield to a question. >> Senator Apodaca do you yield Do you yield? >> I do >> I guess, first senator Apodaca would you clarify for us that this does comply with the supreme court ruling that we recently had regrading to commissions of board. >> Yes sir, senator Heis it does. >> And follow up. >> Senator do you yield? >> Yes. >> We see a very important role Role and having this citizens groups have oversight of this type of executive actions and others, how is this preserved within the bill? >> Well it does, thank you Senator Hise for that question, it does preserve the all money commission Rule to review commission and a couple other commissions we have in place. The only commission we are losing out of this is this is the [UNKNOWN] commission. >> Senator [UNKNOWN] for what purpose do you rise? >> To see if Senator Apadoca will yield for a question.>> Senator Apadoca do you yield? >> I do >> Senator Apadoca page Page 15, line one. >>Go ahead. >> Is that date gonna still remain relevance have all of the sites been identified? >>Yes mam it is relevant DEQ will have the ability if need be if they being necessary to do an extension but yes at this point there in there at that day. [BLANK_AUDIO]. Any further discussion or debate? Hearing none, question for the senate is the passage of the senate committee substitute, House Bill 630 as amended on a second reading. All in favor vote aye, oppose will vote no, five second be allowed for the voting, clerk will record the vote. Burger aye Aye. [BLANK_AUDIO]. Smith Ingram? >> Aye. 44 having voted in the affirmative and four in the negative senate committee substitute the House Bill 630 as amended passes its second reading, without objection be read a third time. >>North Carolina general assembly next Mr president. >> Senator [UNKNOWN] >> I object the third reading. >> We just read third reading senator. We just read it. The question before the senate is passage of senate committee substitute to house bill 630 on its third reading. All in favor will say aye. >> Aye. >> Opposed no. The Is have it. Senate committee substitute to house bill 630 passes its third reading, the amendment will be engrossed and sent to the house for concurrence in the senate committee substitute. Senator Tillman for what purpose do you rise? >> Mr president, moment of personal privilege. Yes I know its getting late. >> We have another bill senator could you hold on a minute? >> Lets do that tomorrow. [LAUGH] [LAUGH] >> Senator Apodaca for what purpose do you rise? >> After you hear the bill you probably will. Mr president house bill 884 local alcohol bill is currently committee on rules. I move that it be brought to the floor for immediate consideration. >> Without objection so ordered. [BLANK_AUDIO]. House bill 884 the clerk will read. >> House bill 884 amend township ABC elections. >> Senator Apodaca for what purpose do you rise? >> Speak on the bill. >> Senators let's come to order please. Senator Apodaca you have the floor to speak to the bill. >> Thank you Mr president we all know its getting late, Senator Tillman is wandering around the we had last night was one township to have elections on alcohol. I highly recommend it to you. >> Do we have any discussion or debate? Senator Blue for what purpose do you rise? >> Will senator Apodaca yield for a question? >> Senator Apodaca do you yield? >> Yes sir. >> Senator Apodaca I take it that a significant number if the remaining numbers on the floor plan to vote on this bill. >> Yes sir we hope so. [LAUGH]. If their bladders will allow them. >> Do we have any further discussion or debate? Hearing none the question before the senate is passage of the senate committee substitute to house bill 884 on its second reading all in favor in favor vote aye, opposed will vote no, five seconds be allowed for the voting the clerk will record the vote. Smith Ingram, No, Berger, aye. Bryant, Daniel, Heis, Cook, Bingham Hartsel, Davis [INAUDIBLE]. 36 having voted in the affirmative and 6 in the negative senate committee substitute to house bill 884 passes its second reading without objection be read a third time. North Carolina general assembly enacts.

>> Any further discussion or debate? Hearing none the question before the senate is the passage of senate committee substitute to house bill 84 on its third reading all in favor will say aye. >> Aye. >> Opposed no the ayes have it. Senate committee substitute to house bill 884 passes its third reading it will be set to the house for concurrence and the senate committee substitute. >> Mr president. >> Senator Apodaca for what purpose do you rise? >> Two final motions if I might. >> Senator Apodaca you have the floor. >> Thank you senate joint resolution 902 which we filed earlier I move that rules be suspended the end of that bill be introduced and referred to committee on nominations. >> So ordered. >> Senate bill 821 GSC technical corrections currently committee on finance I ask that it be re-referred on committee on rules. >> So ordered. Senator Tillman you have the floor for you point of personal privilege. >> Thank you Mr precedent, brief point of personal privilege. I have been observant tonight of the back row back there senator Chaudhuri. Chaudhuri [INAUDIBLE] senator you have remained very, very very quiet tonight and I thought sure you'd have some speeches for us. But there is a candidate that sits to your left, I don't have any power over this, who gets the oximeter but I suggest they meet again and shift that thing one seat over, I don't even know where she is now, Senator Bryant I wanted her to hear this, she needed to hear it. >> [INAUDIBLE] >> Do we have any other notices or announcements? Senator Hudsel for what purpose do you rise? >> Moment of personal privilege. >> Senator Hudsel you have the floor. >> Thank you Mr. President, members of the senate, today has been a pretty tough day for me, as many of you probably know but I would like to simply say that the most long suffering person that I know is sitting in the gallery. [BLANK_AUDIO] My wife for 44 years, the mother of three wonderful children who actually looked after them for 26 years while I was sitting down here listening to all this stuff about budgets and everything else a lady who has actually served in women's and children's programs and done mission trip, not just in this state or in this nation, but as president of NFW, the baptist women's mission organization has literally helped women and children in some of the most destitute [INAUDIBLE]. Well, when you spend time in Bangladesh in the back of the ally of Lebanon, in the Ukraine five times, in Chile and Guatemala. And recently in Myanmar, as well in Armenia. I'd say that she's lived through a lot. [BLANK_AUDIO] The love of my wife Turner. >> Mrs. Hudsel please stand and be recognized. >> [APPLAUSE] >> Stand to be recognized. >> [APPLAUSE] >> Any further notices or announcements? Senator Sanderson for what purpose do you rise? >> Just a very, very brief moment of personal privilege. >> Senator Sanderson you have the floor. >> Thank you Mr president, members I just want to call your attention to this brochure that's on your desk. Its a special supplement to the North Carolina Museum of history it concerns North Carolina favorite son Billy Graham. As many of you know there's a 5000 square foot exhibit that has been on the museum of Natural of History now it is scheduled to leave July the 10th from Raleigh it will go to and I'm not sure what order but it will be on exhibit on the Reagan Library in California for a while and then go to the George W Bush Library in Dallas or in Texas for a while. There's a move [INAUDIBLE] to maybe possibly bring it back to the museum of Natural History make it permanent. But I would encourage you if you have not been I will encourage you to go. Its a life changing experience and I think that you will be be highly, highly energized by what you see at this exhibit as we can use the life of Billy Graham as example for all of us. Thank you Mr president. >> Senator Ford for what purpose do you rise?>> Quick moment of

personal privilege. >> Senator Ford you have the floor. >> I want to personally invite everyone to the Billy Graham museum which happens to be located in district 38 in Charlotte [LAUGH] >> Senator Brown for what purpose do you rise? >> An announcement. >> You have the floor senator. >> Republicans will caucus tonight at 8:30 so if you would I'll get something to eat and we will like for you to be back so we can caucus at about 8:30. >> Anybody else? Senator Mckissick for what purpose do you rise? >> Point of personal privilege. >> You have the floor senator Mckissick. >>Simply want to say this to you senator Hartsel there's one member of this chamber that one that I respect more. In life we go through difficult times and challenges we don't know what the twist of fate will bring you always must have faith, you almost always have to be persistent and believe that you will overcome wherever challenges maybe. But I want you to know my thoughts my prayers are with you and on behalf of myself, and I'm sure my colleagues here in this chamber I thank you for your service. We stand with you as you face whatever challenges are ahead, thank you. >> [APPLAUSE] [APPLAUSE] >> Senator Ballard for what purpose do you rise? >> Just a quick moment of personal privilege. >> Senator Ballard you have the floor. >> I just wanna thank Senator Sanderson for the highlighting the actual exhibit across the street, nearly a little over 80,000 guests have attended the exhibit that opened in November so it's one of the largest, or most highly attended exhibits that the museum has had. And then Senator Floyd thank you for the library plug as well. Thank you. >> Any further business come forth before the senate? Senator Bingham for what purpose do you rise? >> Moment of personal privilege Mr. President. >> You have the floor Senator Bingham. >> I did wanna say that I join [INAUDIBLE] comments about Senator Hartsel, things, probably he has been and has seen in my campaigns report rather than he is. >> [LAUGH] >> And I regret that Senator Hartsel but sometimes it pays to look what you sounding but anyway Fletcher we thank a world that you and you've done a lot of wonderful things for this state and I just wanna thank you for your friendship through the years as well. It's meant a lot to me, and certainly a strong legal adviser and I know when I first came here, I was probably as negative against politicians and attorneys as anybody in here or probably more so but now I have a great respect for attorneys and what they do for the law and what our purpose been here is so Senator Hudsel thank you very much for your friendship and all that you have done over the years and I'm not gonna admit to falsifying your campaign report, thank you. >> Senator Tillman, for what purpose do you rise? >> Moment of personal privilege. >> Senator Tillman- >> Don't look at me like that Tom I've had one. Fletcher the best thing that I can do for you and Bingham and I know you both have been very close friends and you invited me in and made me a friend when I first got here, I admire your knowledge, your institutional knowledge is as great as I have ever encountered and I thank you for that. The best thing we can do is sort of celebrate this friendship, is to meet at Johnsons in Solar City for a cheeseburger all the way with the velveted cheese about that thick on it. We're gonna do that, not Monday they are not open, but soon, we will get together. >> Anybody else? Any further business to come before the senate? Now the chair will recognize Senator Berger for a motion. [BLANK_AUDIO] >> Thank you Mr. President, then I would like to echo the statements that were made by Senator McKissick as well so with that Mr. President I move that the senate do now adjourn subject to standard stipulations set forth in senate rule 24.1. The receipt of conference reports, the receipt of committee reports, the appointment of conferees, receipt of house messages to reconvene on Wednesday June 29,

2016 at 9:30 AM and members, the 9:30 session is a skeletal session, we will determine at that time or some time in the morning what time the voting session will be. You can probably count on it being at 2 O'Clock or later. >> The motion that the senate do now adjourn subject to the stipulations stated by Senator Berger, to reconvene Wednesday June 29th, at 9:30 AM, seconded by Senator Hudsel, all in favor say aye? >> Aye. >> Opposed no, the ayes have it. Senate stands adjourned. [SOUND] [BLANK_AUDIO] [BLANK_AUDIO] [BLANK_AUDIO] Introduction of bills. Senate joint resolution 902 joint resolution providing for confirmation of appointment by the Governor James [UNKNOWN] and Amy Banister Wake/g to the State Board of Education. Sponsor Senator Barefoot. Re-refer the nomination. Mr president it is ordered that the message be sent to the senate in format [INAUDIBLE] the body if the house representatives fails to concur house bill 151 Senate committee substitute 2 5th edition a bill to be entitled an act to amend the vacation rental act to clarify the role of real estate brokers in transactions between landlords and tenants. To protect members of the armed forces by allowing termination of rental agreements upon transfer or redeployment. To clarify the procedure for awarding and collecting certain court fees in eviction proceedings, and to allow amendments to a lease or real property to Orange county to facilitate jail construction, facts laid in Eastwick/g principal clerk. Mr. President has ordered that a message be sent to the Senate informing that if the House of Representatives fails to concur on House Bill 593 Senate Committee substitute 2 4th edition. A the bill to be entitled an act to amend certain environmental and natural resources and other laws Respectively needs to be [INAUDIBLE] principle clerk. Mr. President it's pursuant to message from the house of representatives today that the house fails to concur on house bill 151 senate committee substitute number two fifth edition. The bill to be entitled an act to amendment the vacation rental act to clarify the role of real estate brokers and transaction between landlords and tenants. To protect members of the armed forces by allowing termination of rent agreements upon transfer or be deployed to clarify the procedure for awarding and collecting certain court fee and eviction notice. And to allow amendments to a lease or rental property to Orange county to facilitate jail [INAUDIBLE]. Speaker Moore has appointed Representative Tain/g chair, Representative Jitter, Representative Ford part of the house representatives to confer to the like committee appointed by the senate to the end that the that the [INAUDIBLE] principle clerk. Mr president ordered message be sent to the senate on [INAUDIBLE] the house representatives fail to concur in house bill 169 senate committee substitute number three sixth edition. Bill to be entitled an act to provide further regulatory [INAUDIBLE] to the citizens North Carolina respectfully Denise Week/g principal Clerk. [BLANK_AUDIO] [BLANK_AUDIO]