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House | July 23, 2013 | Chamber | Session Part 1

Full MP3 Audio File

[SOUND] Members of the House will come to order. Members and those folks in the gallery who are here, the House is about to go into recess until 2 o’clock. No business is going to be taken up at this time. So for those folks who are in the gallery we’re glad to have you here. If you’re around at two we’d enjoy having you back to observe session. But deliberations continue on a number of issues and so as a result we’re going to go into recess. But at this time members subject to receipt. Actually we’ll withdraw that. Committee reports we will take those in. Subject to, subject to receipt of committee reports the House is in recess until 2 p.m. [SOUND] The House will come to order. Members will take their seats. Visitors will retire from the chamber. The Sargent at Arms will close the door. Members and visitors will please silence all cellular phones. The prayer today will be offered by Representative Carl Ford. Members in the, excuse me, members and visitors in the gallery are asked stand and remain standing for the Pledge of Allegiance. [SPEAKER CHANGES] Let’s pray. Father God I thank you for this day. I thank you for your grace and mercy Lord. I thank you for put’n me here Lord. I pray that you’ll guide and direct me and my colleagues today in everything that we say, everything that we do and in our votes. We pray that you’ll bless the grace great state of North Carolina and all the folks that live here. Father we thank you so much for all that you’ve done for us and what you will do for us Father. We thank you in Jesus name. Amen. [ALL PEOPLE IN THE CHAMBER IN BACKGROUND] Amen. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands. One nation under God, indivisible, with liberty and justice for all. [SPEAKER CHANGES] Representative Burr is recognized. [SPEAKER CHANGES] Mr. Chairman the journal for Monday July 22nd has been examined and found to be correct. I move that be approved as written. [SPEAKER CHANGES] Representative Burr moves that the journal for July 22nd be approved as is written. Those in favor will say aye. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] Those opposed no. The ayes have it. And the journal is approved as written. Petitions, memorials or papers addressed to the General Assembly or the House. [INAUDIBLE] Ratification of bills and resolutions. [INAUDIBLE] Messages from the Senate the clerk will read. [SPEAKER CHANGES] Special message from the Senate Mr. Speaker. Pursuant to your message received today July 22, 2013 that the House of Representatives fails to concur to Senate committee substitute for House Bill 74, a bill entitled an Act to Provide for the Periodic Review Under Expiration Rules and Requests. And requests conferees [UNKNOWN] Senate Pro Tempore appoints Senator Jackson share, chair Senators Brock, Brown and Wade on the part of the Senate to confer with like committee appointed by the Honorable [UNKNOWN] that the differences arising may be resolved. Respectfully Sarah Lang, principle clerk. [SPEAKER CHANGES] Noted. [SPEAKER CHANGES] Mr. Speaker pursuant to your message received today July 22, 2013, that the House of Representatives fails to concur in the Senate committee substitute to House bill four nine three, a bill to be entitled an Act to Authorize the Town of Robinsville to Pay an Options/g Tax and requests conference. The President Pro Tempore appoints Senator Apodaca chair, Senators Hise and Senator J. Davis on the part of the Senate to confer with like committee [UNKNOWN] resolve respectively Sarah Lang principle clerk. [SPEAKER CHANGES] Noted. [SPEAKER CHANGES] Senate committee substitute for House bill 522 a bill to be entitled an Act To Protect Rights and Privileges Granted to them by the United States to North Carolina Constitution’s Application of Foreign Law. [SPEAKER CHANGES] Counter/g rule 36b. [SPEAKER CHANGES] Committee substitute for Senate bill 581 a bill to be entitled an Act to Establish the Historical Boilers/g Licensing Act. [SPEAKER CHANGES] Bill is referred to the committee on finance. [INAUDIBLE] Members if you would please welcome. We have some guests in the gallery we would like extend the courtesies to. And that would be the Governor’s pages. They’re here observing the session of the House and they’re upstairs. If you all would please stand so we can properly welcome you. [SOUND].

Ladies and gentlemen of the House. If the House will come to order. We have a very special guest in the House today. You’ll hear more about it after the certificate is read and after comments from Representative Sozka. At this time, if the House will come to order, the clerk will read the certificate. [SPEAKER CHANGES] North Carolina House of Representatives. Certificate of Recognition at Acknowledgement whereas the Special Operations Forces canine serves as a force multiplier and saves soldiers’ lives every night on the battle fields of foreign lands and whereas special operation canines are specifically selected based on their drive, intelligency, capability to make decisions similar to the traits of their human counterpart. The special operations forces soldier. Therefore only the best of the best are selected and even fewer are completely trained. Whereas recognizing that these canine actions in combat are heroic, facing imminent danger with courage that sets a standard for all others. These special operation canines have paid the ultimate price for not only their handlers and mates but for this great nation. In whereas a Special Operations Forces Canine Memorial Foundation is a small group of military and civilian canine professionals who recognize the value of the special operations forces canine service to our country during war, and whereas current there are no Special Operations Forces Canine Memorials in the United States or anywhere in the world and the memorial placed at the Airborne and special operation museum in Fayetteville, North Carolina is the first recognition for these heroic animals. And whereas a memorial will be dedicated the 27th day of July in the year 2013 at 10:00 a.m. at the Airborne and Special Operations Museum in Fayetteville, North Carolina in recognition of the 58 special operations forces canine for their ultimate sacrifice to our country and for the lives saved because of their service throughout the war on terror. Now therefore, I , Thom Tillis speaker of the North Carolina House of Representatives, do hereby extend gratitude and recognition to the 58 special forces canines that died in combat. And urge all members of the North Carolina General Assembly to support this historic recognition and acknowledgement of the Special Operations Forces Canine Memorial to be dedicated at the Airborne and Special Operations Museum in Fayetteville, North Carolina. Speaker Thom Tillis, attested by Denise Weeks, principal clerk. [SPEAKER CHANGES] Representative Sozka is recognized for a point of personal privilege. [SPEAKER CHANGES] Thank you, Mr. Speaker. This coming Saturday marks the culmination of a project to honor special operations canines who have died in the service of our country. The role that military working dogs have filled has been absolutely vital in our most recent wars. The true significance of these canine’s contributions is that they have saved the lives of countless American special operations soldiers and operations ranging throughout Iraq and Afghanistan. A memorial to these fallen heroes is something which is absolutely appropriate. It has been sought for years by the special operations forces canine memorial foundation. You now, many times dreams don’t get acted upon unless there’s someone with a vision to make the dream a reality. And we have with us today in the gallery a person who’s made this memorial a reality. And His name is Harrison Burkhardt. He’s 17 years old, he’s homeschooled and he’s currently a Life Scout with Troop 745 in Eastover North Carolina in Cumberland County. Harrison was seeking an Eagle Scout project that would make a difference in people’s lives. So when he heard about this idea it was exactly the kid of thing he’d been looking for. Harrison raised over 5,00 dollars, thanks to the generosity of the community and those who recognize the value of special operations forces canines and the lives that they have saved. He was responsible for the landscaping, the sidewalks, and the stems to mark the area for the memorial markers. You know a lot of times one person

Representative: …with a vision and with a sense of purpose, can accomplish a lot of things. I thought it was very appropriate to recognize this young in making his dream become a reality in helping his community. There is one more thing I would like to mention, and you may have seen him in the back of the house floor. With us on the house floor today is retired military working dog, brick k 049, patrol narcotics detection dog. In a few minutes the speaker will recognize brick. Let me tell you why he is here. For all of us who have served in the armed forces, and it doesn’t matter whether you are marine, army, coast guard – and within the army you have all the different branches, you’re a combined arms team. Brick is not a special operations dog. I have met him on several occasions. He is a retired military working force dog and is here supporting the dogs that have fallen in combat, for us to remember and take a look at what these awesome dogs’ lives are like. On this Saturday at 10 o’clock, at the deerborn special operations museum in Fayetteville, you are all invited as my personal guests to come down and see the dedication of this memorial for special operations working dogs. There is one more thing, on your desk you will see a little flyer that talks about military working dogs. The army, and all the armed forces, for some reason, still consider these brave heros as equipment. I look at equipment is a computer, pencil – something like that. So when these dogs get through their useful services, the armed forces do not really have a plan on what they do with them. They hope that someone adopts them. In that brochure you will see a foundation that helps place these American heros into their final home. So if you are interested you can apply to adopt a military retired working dog, or you can certainly donate to the foundation which helps with the airfare to fly the dogs to their final home, wherever it is in the U.S. I thank you for your attention. Mr. Speaker, thank you for allowing me to speak. Speaker: Ladies and gentleman, Brick was a MP. I met brick back at the coca cola 600. He was a MP when he served. He served for, in dog years, 56 years, in human years, 8 years. Retired on June 12th. He also won an award from the military dog association. You think about the services they provide to the country, and the safety to our members in armed services: I think it is extraordinary. Today, also, we are declaring brick as an honorary member sergeant in arms. Brick, why don’t you approach the chamber so everybody can see him. [clapping] Speaker: I now know we have at least one fast sergeant in arms. [laughter] Speaker: Thank you very much. [clapping] Speaker: Ladies and gentleman, without motion, Representative Soco, from the Cumberland County Delegation, Representatives also Floyd, Glazier and Lucas the chair is happy to send the courtesies of the gallery to Harrison Burkhart, who has made such a difference in his community, his mother, Laura Burkhart, and his sisters, Maggie and Jennifer Marie. Also in the gallery is sergeant Major Chuck Yary, who is president of the special operations forces canine memorial foundation. Please stand and let us welcome you. [clapping] Speaker: Ratifications, bills and resolutions. The clerk will read. Clerk: The rolling clerk reports the following bill to [xx] presentation 15 act to [xx] fix state vehicles, law enforcement, fire fighting, or other emergency response for purposes of division of parks and recreation; house bill 269 an act to create special education scholarship, grants for children with disabilities as

399. An Act to Make Changes Requested by the Department of Health and Human Services to Laws Pertaining to Child Abuse, Neglect and Dependency. House Bill 476, An Act Rewriting the Laws Regulating Underground Utility Damage Prevention. House Bill 565, An Act to Amend the Laws Regulating Real Estate Appraisers. House Bill 692, An Act to Amend the North Carolina Anti-Predatory Lending Law. House Bill 936, An Act to Establish a Wildlife Poacher Reward Fund to Pay Rewards to Persons Who Give Information to Law Enforcement Authorities That Result in Arrest and Conviction of Persons Who Commit Serious Wildlife Violations. ?? Farm Bill ?? presented ?? Secretary of State. House Bill 186, An Act Authorizing the Towns of Cornelius, Davidson, Huntersville, Mooresville and Troutman to Enforce Municipal Noise Ordinances. House Bill 523, An Act to Reduce the Size of the Pitt County From 12 Members to 9. House Bill 530, An Act Requiring Any Appointments by BunCombe County to a Metropolitan Planning Organization to Provide for Geographic Representation of the County. House Bill 870, An Act to Decrease the Duplin County Board of Education and the Board of Commissioners of Duplin County to a Five Member Board. [SPEAKER CHANGES] Ladies and gentlemen, we have one other resolution on the calendar. Without objection, the Chair would like to move to House Resolution 1021. Is there objection? The clerk will read. [SPEAKER CHANGES] The House resolution recognized North Carolina's 2013 All-American City Award honorees, the House resolves. [SPEAKER CHANGES] Whereas, the All-American [SPEAKER CHANGES] Mister Speaker. Mister Speaker. [SPEAKER CHANGES] Representative Lewis, please state your purpose. [SPEAKER CHANGES] May I be recognized to send forth an amendment? [SPEAKER CHANGES] The gentleman is recognized to send forth an amendment. The clerk will read. [SPEAKER CHANGES] Representative Lewis moves to amend the bill on page 1 line 10 by rewriting. [SPEAKER CHANGES] The gentleman is recognized to debate the amendment. [SPEAKER CHANGES] Thank you Mister Speaker and ladies and gentlemen of the House. I'd ask that you please support this amendment. North Carolina was very fortunate this year to have three of it's towns and cities recognized and the good folks from Thomasville could not be here today. And at the request of the Davidson County delegation, what this amendment would do is remove them from this resolution with the intent to recognize them in the Spring. So, I would ask for your support of this amendment. [SPEAKER CHANGES] Further discussion on the amendment? If not, the question before the House is the adoption of the amendment sent forth by Representative Lewis to House Resolution 1021. All in favor vote aye, all opposed vote no. The clerk will open the vote. The clerk will lock the machine and record the vote. 114 having voted in the affirmative, none in the negative. The amendment passes. The clerk will read the resolution in it's entirety. The House will come to order. [SPEAKER CHANGES] Whereas the All-American City Award program was founded in 1949 to recognize cities for their civic achievements. And whereas to be named an All-American City, a community must demonstrate innovation, inclusiveness, civic engagement and cross sector collaboration by describing successful efforts to address pressing local challenges and must briefly tell its community's story listing two of their most pressing challenges and three outstanding community projects. And whereas on June 16, 2013 the towns of Dunn and Garner were named two of the ten communities across the country to win the All-American City Award, which is often called the Nobel Prize of civic accomplishment. Whereas the town of Dunn, located in Harnett County, was incorporated by the General Assembly in 1887 and named for Bennett R. Dunn, construction engineer for the Atlantic Coastline Railroad. And whereas Dunn's outstanding community projects for the All-American City Award included the involvement of the town's civic leaders in the planning, negotiation and financial investment in the development of a new fifty bed Central Harnett Hospital; revitalization of the town's city center, which includes the burial of power lines and telecommunication cables; renovation of the aged water and sewer system; replacement of the pavement; incorporation of attractive brick and cement features and grants to downtown businesses to update their facades and the

Development of the Garner Police Athletics Activities League, PAL, which annually offers various programs from athletics to SAT/ACT test preparation to up to 300 young people ages six to 18, and offers teams the opportunity to join PAL Youth Leadership Council which promotes volunteerism, public service, and an understanding of civics and government. And whereas the town of Garner, located in Wake county, was reincorporated by the General Assembly 1905, and named for H.C. Garner, the town's founder. And whereas Garner's three best projects for the All-American City Award included the new 500,000 Garner Veteran's Memorial at Lake Vincent Park that features pillars with the name of 67 Garner area veterans who made the ultimate sacrifice while serving our country, and the artwork of world famous Raleigh-based sculptor Thomas Sayer, the First Baptist Church's Hope Ministries which collaborates with six Garner area elementary schools to identify at-risk units to provide support for these students and their families through a number of programs including an after-school program, food pantry and the Garner Performing Arts Center, which is housed in a salvaged school, and is a location for a community theater group, a summer theater camp program that 120 campers annually, and other cultural programs such as the Broadway Voices Series, a public/private partnership that brings some of Broadway's biggest shows to the local stage. Now therefore, be it resolved by the House of Representatives: Section One, the House of Representatives recognizes the towns of Dunn and Garner on each being named a 2013 All-American City, and applauds the citizens of these towns for their efforts in helping to make their towns worthy of receiving this prestigious award. Section Two, the House of Representatives honors the memory of the founders and early leaders of the towns of Dunn and Garner for their contributions to these towns. Section Three, the principal clerk shall transmit a certified copy of this resolution to the mayors of the towns of Dunn and Garner. Section Four, this resolution is effective upon adoption. [SPEAKER CHANGES] Representative Lewis is recognized to ?? the resolution as amended. [SPEAKER CHANGES] Thank you, Mr. Speaker, and thank you, ladies and gentlemen of the House to stand on the floor today to pay tribute to my hometown. I am very proud that of the 18.762 identified municipalities in the US, that the city of Dunn was one of ten selected this year as an All-American City. I would point out that this is not the first time this has occurred. Dunn, in fact, is one of only only 42 towns to have actually won this high distinction twice. While we could all stand on the floor and talk for great lengths about our hometown, I will do this as briefly as I can, and I appreciate the indulgence of the Speaker and the members for the chance to be here. I would like to take this time and just personally invite you, as you travel down 95, or you travel down 421. or wherever you make your way in this state, I would love for you to come and to experience the new Dunn, to see the renovations that have been done, the total rework of downtown where once again, businesses are coming back and it is such an amazing place to stand. You know, it was just a few weeks ago that we actually did the re-dedication of our downtown, and it's such an amazing thing for a kid that grew up there, that has watched the town -- as all small towns in our state have -- struggle to have come back, and to have truly become a center of commerce, of agriculture, of manufacturing, of distribution, and even of tourism. It would not be fitting to speak about the town of Dunn without referring to probably our greatest n[RECORDING ENDS]

best known hometown hero, and that is General William C. Lee. General Lee, as many of the members in this chamber, I’m sure recognizes his name, is the father of the modern airborne soldier. He was the man who said, let’s put a parachute on soldiers and get them where they need to be to win the fight. It is well known lore in Dunn that we’re only about 25 miles from Ft. Bragg and this well known lore that towards the end of General Lee’s career, and in fact his life, he began to experience health problems and had to return from the front to his home in Dunn which is now maintained by the General William C. Lee commission. It’s a great place to go and see true World War II artifact. It is well known that there were times that the commanding generals were flying to Ft. Bragg and wanting to confer with General Lee and the road would actually be closed down so they could get to down and back and do what they need to do. I could go on all day. I know that’s not the intent or the understanding I have with the speaker. I am very, very proud of my town. I’m very, very appreciative of the large delegation that’s here from my town today, many of whom actually traveled out for the All-American City award presentation. An award I am very, very proud of my hometown and I commend this resolution. [SPEAKER CHANGES] Representative Lucas is recognized to debate the resolution as amended. [SPEAKER CHANGES] Thank you, Mr. Speaker. I too, would like to commend the resolution to you. Dunn has a long track record of historical events and outstanding persons. I had the privilege of attending college with a gentleman whose hometown is Dunn who went on to become chancellor of Fayetteville State University and is now chancellor emeritus of Fayetteville State University and still remains a good friend of mine, that’s Willis McLeod. Many of you may know him. I also had the privilege of having an aunt who taught Willis McLeod in Dunn at the old haunted high school in Dunn. They have a track record for education there. I also have a great friend Mrs. Oscar Harris. Many of you may remember Senator Oscar Harris who served here in the General Assembly and served us well here so it is with pride that I commend this resolution to you. [SPEAKER CHANGES] Further discussion. Representative Gill, please state your purpose. [SPEAKER CHANGES] To speak on the resolution. [SPEAKER CHANGES] The lady is recognized to debate the resolution as amended. [SPEAKER CHANGES] Garner’s not my home town but thanks to the folk that drew the lines this year, last year, they made Garner a part of my district. I would take a little credit for all of the things that happened to Garner since they became a part of my district, but I won’t do that. I will start off by saying, I started my teaching career at Garner Senior High in Garner, North Carolina. I have been a fan of the town of Garner ever since then, even though I stay in Raleigh. Let me talk a little bit about Garner. The town of Garner has received quite a number of honors and accolades in the last couple of years. That is why there are quite a few people who are now looking to move to Garner, North Carolina. It’s a growing community of about 27,000 residents. It’s the home of 2011 American Idol and how many of you know who was the American Idol in 2011? You heard enough about Scotty McCreery. Let me tell you, he put Garner on the map. Garner was good, it was a great town even before he became the American Idol. This last year, 2012, it was the hometown of Miss North Carolina, Arlie Honeycutt. This year, we’re proud to say we are

One of the three all-American cities in North Carolina. Garner is approximately eight miles south, or north of Raleigh. And I stay halfway between Garner and Raleigh. So I feel honored to be a part of Garner and a part Raleigh. Garner residents know that some of them live closer to downtown Raleigh than the actual residents of Raleigh, North Carolina. Because if you look at Raleigh, those residents in Raleigh who stay in North Raleigh live more than 12 miles. But Garner is about eight miles. But, note, not so close, ??, Garner residents know that they're close to downtown Raleigh, than Raleigh residents who live on the outskirts of the city limits. But not so close so as to intrude on the small town atmosphere that makes Garner special. So special that after the, after Scotty won the American Idol, he wanted to return to his hometown of Garner to continue playing on his high school baseball team, to graduate from the Garner Magnet High School, and to attend North Carolina State University. So you know Garner had to be special to him like it is to most of the residents of Garner. With over 350 acres of park land. A thriving business economy, safe and beautiful neighborhoods, quality schools great community events, and a variety of shopping and local entertainment venues, Garner has something for everyone. So come and visit the city of Garner, or the town of Garner. Let us all congratulate the Mayor Ronnie Williams and other members of the Town Council, Chamber of Commerce, and the residents of Garner on being chosen, one of Wake County's, ??, the only Wake county, and one of North Carolina's all-American citizens by voting yes for this resolution. Thank you. [SPEAKER CHANGES] Further discussion, further debate? If not the question before The House is the adoption of Resolution 1021 as amended. All in favor vote aye. All opposed vote no. The Clerk will open the vote. The Clerk will let the machine record the vote. 118 having voted in the affirmative and none in the negative House Resolution 1021 has been adopted. Resolution will be engrossed and ordered printed. Ladies and gentleman upon motion of Representative David Lewis from Harnett County and Representatives Jackson and Gill from Wake County, The Chair is happy extend the courtesies of the gallery to the following list. As I call your name if you'll please stand and members please hold your applause until the end. Mayor Oscar Harris, Ms. Jean Harris, Nelly Manis, City Manager Ronald Autry, Assistant City Manager Steven Newschafer, City Clerk Deborah West, Community Marketing Director Sarah, Sharon Stevens, Athletic Director Ryan McNeill, ?? Director Rodney Rolan, Interim Police Chief Jimmy Pope, Levante Cameron, Dunn Daily Record Owner Bart Adams, and City Council Members Billy Barfield and Billy Tar from the city of Dunn. Mayor Ronnie Williams, Chamber of Commerce Director Denise Howell, Fernando Cervantes, George Cervantes, Downtown Development Director John Hodges, Council Member Cathy Berringer, Deputy Town Clerk Kimberly Moffett, Public Information Officer Rick Mercier, Scott Honeycutt, and Parks and Recreation Director Sonya Shaw from the town of Gardner. Thank you so much for your service to to our great state and to your towns. Members let's show our applause, our welcome. Representative Starnes, The Chair stands corrected, Representative Stam, The Chair understands the gentleman wishes to make a motion.

The gentlemen is recognized for a motion regarding the Conference Report on Senate Bill 337. [SPEAKER CHANGES] Yes, Mr. Speaker. I move that we concur on the Conference Report and although I chair the conference committee while in my absence Representative Hardister did all the hard work and I wonder if you would recognize him for the explanation. [SPEAKER CHANGES] Representative Stam, I think the Chair needs to perhaps qualify your motion. I believe you motion is to withdraw the conference report currently in possession of the clerk on senate bill 337 and that you wish to submit conference report number 2 for Senate Bill 337? [SPEAKER CHANGES] That’s correct. I so move. [SPEAKER CHANGES] Without objection, so ordered. The clerk will read. [SPEAKER CHANGES] To the President of the Senate, Speaker of the House Representatives , conferees appointed to resolve the differences between the Senate and the House of Representatives on Senate Bill 337 a bill to be entitled an act to create the North Carolina charter schools ?? and make other changes to the charter school laws. The conferees for the recommend that the Senate and the House of Representatives adopt this report. Conferees for the Senate, Senator Tillman, chair. Senator Wade and Clark. Conferees for the House of Representatives, Representative Stam, chair. Representative Hardister, Hager, Glaizer and Bryant. [SPEAKER CHANGES] The bill, or the conference report will be calendared for tomorrow’s calendar. Representatives Howard, Lewis and Setzer are recognized to send forth committee report, clerk will read. [SPEAKER CHANGES] Representatives Howard, Lewis and Setzer for the Finance Committee Senate Bill 523. Late filing penalty favorable is House Committee Substitute, unfavorable as to the Senate Committee Substitute. House Committee Substitute calendared, Senate Committee Substitute unfavorable calendar. Representative Moore is recognized to send forth Committee Report. Clerk will read. [SPEAKER CHANGES] Representative Moore for the Rules, Calendar, and Operations of the House. House Bill 831. Education services for children and ?? favorable is Committee Substitute Number 2, unfavorable is the Committee Substitute Number 1. [SPEAKER CHANGES] Calendar without objection for today’s calendar. [SPEAKER CHANGES] Senate Bill 18 amend the locksmith licensing act and raise fee ??. Favorable is the House Committee Substitute, unfavorable is the Senate Committee Substitute [SPEAKER CHANGES] Without objection, calendar for the House Committee Substitute calendar for today’s session, Senate Committee Substitute unfavorable calendar also the Committee Substitute Number 1 for House Bill 831 as unfavorable, calendar. [SPEAKER CHANGES] Senate Bill 381 state to convey Gates Correctional Facility. Favorable. [SPEAKER CHANGES] Without objection, for today's calendar. Ladies and gentlemen, the Chair would like to extend a welcome to two honorary pages we have today. They’re up here to my right. Tillman Pope Jr. and David Ray Lewis Jr. Please stand and let us welcome you guys. Chair would also like to extend a thank you and a welcome to the Nurse of the Day. The Nurse of the Day is Carol Womble from Greensborough, North Carolina. Carol, welcome and thank you for your service. Chair understands that the lady is from Rocky Mount. Ladies and gentlemen, we are without objection the Chair anticipates some debate on the Budget Conference Report therefore we’d like to dispose of a few other bills on the back of the calendar, beginning with Senate Bill 480 without objection. Senate Bill 480 the clerk will read. [SPEAKER CHANGES] House Committee Substitute for Senate Bill 480 a bill to be entitled an act to authorize the acquisition or construction and financing without appropriations from the general fund of certain capital improvement Programs of the constituent institutions versed in North Carolina and to require registered deeds to maintain regular office hours. ?? [SPEAKER CHANGES] Representative Moore, please state your purpose. [SPEAKER CHANGES] To debate the bill, Mr. Speaker. [SPEAKER CHANGES] The gentleman is recognized to debate the bill. [SPEAKER CHANGES] Mr. Speaker, members. We’ve had some discussion on this bill already this is the capital improvement project requested by the University of North Carolina, this has been vetted and would value your support. [SPEAKER CHANGES] Further discussion, further debate.

If not, the question before the House is the passage of the House committee substitute to Senate Bill 480. All in favor vote aye. All opposed vote no. The Clerk will open the vote. The Clerk will allot the machine record the vote. 110 having voted in the affirmative, 7 in the negative. Senate Bill 480 has passed its third reading and be returned to the Senate. Senate Bill 182, the Clerk will read. [SPEAKER CHANGES] House committee substitute for Senate Bill 182. A bill’s that been titled an act to eliminate appeals for infractions, to modify appeals to the Superior Court and probation revocations in which the defendant has waived a hearing, to amend the law pertaining to re-sentencing and other reversal of sentencing of appellate review and reclassify of certain misdemeanors as infractions, and make changes regarding procedures for a motion for appropriate relief. General Assembly of North Carolina next. [SPEAKER CHANGES] Representative Glazier, please state your purpose. [SPEAKER CHANGES] To debate the bill, Mr. Speaker, but, also, to offer an amendment as discussed yesterday, and to speak to the amendment. [SPEAKER CHANGES] And does the gentleman wish to send forth the amendment first? [SPEAKER CHANGES] Yes, please. [SPEAKER CHANGES] The gentleman is recognized to send forth an amendment. The Clerk will read. [SPEAKER CHANGES] Representative Glazier moves to amend the bill on page 2 lines 13 through 28 by deleting those lines. [SPEAKER CHANGES] The gentleman is recognized to debate the amendment. [SPEAKER CHANGES] Thank you, Mr. Speaker. Members, this is the bill we talked about yesterday where there was a change to be made. If you’ll find that the bill does now include exactly what we said yesterday, it eliminates the appeals for infractions, and the area that’s being amended makes it clear that this is for defendants who waive a probation revocation hearing that they do not get to appeal to Superior Court and only to the Court of Appeals. This makes the change in the next section that makes that compatible. I know of no opposition and move adoption. [SPEAKER CHANGES] Further debate on the amendment? If not the question before the House is the amendment send forth by Representative Glazier for the House committee substitute for Senate Bill 182. All in favor vote aye. All opposed vote no. The Clerk will open the vote. The Clerk will allot the machine record the vote. 117 having voted in the affirmative and none in the negative. The amendment passes. Representative Glazier is recognized to debate the bill as amended. [SPEAKER CHANGES] Thank you, Mr. Speaker. I don’t think that there were any other questions off yesterday. I’ll be glad to answer any and hope that you’ll support the bill. Thank you. [SPEAKER CHANGES] Further discussion, further debate. If not, the question before the House is the passage of the House committee substitute to Senate Bill 182 as amended in its third reading. All in favor vote aye. All opposed vote no. The Clerk will open the vote. The Clerk will allot the machine record the vote. 117 having voted in the affirmative. The House committee substitute to Senate Bill 182 as amended has passed its third reading. The bill will be engrossed and returned to the Senate. Senate Bill 321, the Clerk will read. [SPEAKER CHANGES] House committee substitute number 3 for Senate Bill 321, a bill that’s been titled an act to cap reimbursement by counties, to make additional provisions relating to payment for medical services providing inmates in county jails, to allow counties to utilize Medicaid for eligible prisoners, to provide that vacancies in the House District Court Judge shall be filed by appointment of the Governor, and to create a private right of action against notaries who violate the Notary Public Act. General Assembly of North Carolina next. [SPEAKER CHANGES] Representative Moore, please state your purpose. [SPEAKER CHANGES] To debate the bill. [SPEAKER CHANGES] The gentleman is recognized to debate the bill. [SPEAKER CHANGES] Mr. Speaker, Members, I am pleased to report that there are no further amendments to this bill that I’m aware of. I think we’ve done a full rewrite on this thing at times, but this bill is passed by a good vote a few days ago and would urge to body to continue to support the bill. Thank you. [SPEAKER CHANGES] Further discussion, further debate. If not, the question before the House is the passage of the House committee substitute number 3 to Senate Bill 321 on its third reading. All in favor vote aye. All opposed vote no. The Clerk will open the vote. The Clerk will allot the machine record the vote. 88 having voted in the affirmative, 27 in the negative. The House committee substitute number 3 to Senate Bill 321 as amended has passed its third reading. The bill will be engrossed and returned to the Senate. Going back to the front of the Calendar. House Bill 14, the Clerk will read. [SPEAKER CHANGES] Senate committee substitute for House Bill 14, the bill’s been titled an act to make technical, clarifying, and administrative changes to the Revenue Laws and related statutes that’s recommended by the Revenue Laws Study Committee. [SPEAKER CHANGES] Representative Cleveland, please state your purpose. [SPEAKER CHANGES] Mr. Speaker, can I be recorded as voting yes on Senate Bill 321? [SPEAKER CHANGES] Does the gentleman wish to send forth an amendment? Just kidding. [SPEAKER CHANGES] The gentleman will be recorded as voting aye

321. Representative Howard, please state your purpose. [SPEAKER CHANGES] To debate House Bill 14, Mr. Speaker. [SPEAKER CHANGES] The lady is recognized to debate the bill. [SPEAKER CHANGES] Mr. Speaker and members of the chamber, we had an excellent vote on this yesterday and I would hope that we would continue to support the legislation. [SPEAKER CHANGES] Further discussion, further debate. If not, the question before the House is the motion to concur in the Senate Committee Substitute for House Bill 14. All in favor vote aye. All opposed vote no. The Clerk will open the vote. All members please record. Representative Dollar. The Clerk will lock the machine and record the vote. 115 having voted in the affirmative, 1 in the negative, the House has concurred in the Senate Committee Substitute for House Bill 14. The Senate will be so notified. [SPEAKER CHANGES] Mr. Speaker? [SPEAKER CHANGES] The Chair stands corrected. The bill will be ordered enrolled and sent to the Governor. [SPEAKER CHANGES] Mr. Speaker? [SPEAKER CHANGES] Representative Michaux, please state your purpose. [SPEAKER CHANGES] Mr. Speaker, on Senate Bill 182 – I’m sorry, Senate Bill 321 – I’m not sure, but make sure I wanted to vote no. [SPEAKER CHANGES] The gentleman will… we will confirm. If not, your vote will be changed to no. Representative Luebke, please state your purpose. [SPEAKER CHANGES] Mr. Speaker, ditto. [SPEAKER CHANGES] The gentleman gives a ditto. [SPEAKER CHANGES] I wish to be recorded as voting no on Senate Bill 321. Thank you, sir. [SPEAKER CHANGES] And Representative Earle. [SPEAKER CHANGES] No please, on 321. [SPEAKER CHANGES] You will be recorded as voting no on 321. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] Representative Insko, no on 321. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] Representative Horn, yes on 321. Representative Lucas. [SPEAKER CHANGES] No on 321. [SPEAKER CHANGES] No on 321. Now let’s see if we can do this as a group. Representatives Bell, Carney and Brandon, no on 321. [SPEAKER CHANGES] Mr. Speaker? [SPEAKER CHANGES] Representative Adams, no on 321. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] Representative Rodney Moore, no on 321. Representative Alexander, no on 321. Going once… House Bill 359. The Clerk will read. [SPEAKER CHANGES] Senate Committee Substitute for House Bill 359, a bill to be entitled ‘An Act to Make Changes to the Administration of State Retirement Systems that will Extend the Transfer Benefit Option to Participants in the 403 Supplemental Retirement Plan’. [SPEAKER CHANGES] Representative Collins, please state your purpose. [SPEAKER CHANGES] Make a motion and debate the motion. [SPEAKER CHANGES] The gentleman is recognized for a motion and to debate the motion. [SPEAKER CHANGES] I want to move that we do concur with the Senate Committee Substitute for House Bill 359. It looks like the Senate has made four changes, four primary changes, in the piece of legislation, first of all in section 1. Our House bill allowed for state employees to transfer their 403(B) funds into the retirement plan; this just broadens that to all possible supplemental plans they might be a part of, and it also forbids charging the state employees fees in order to affect that transfer. Section 5 has been added. It addresses a very unusual situation in which someone who retires and returns to work and then goes on long-term disability, it allows them to count their time on long-term disability towards the three years of service required to make the type of transfer we just were talking about in section 1. Section 6 has been added. It states that if an employee is reinstated with back pay by a settlement agreement with one of our state agencies, that the employee and the agency must pay the full liability to the retirement system for the additional benefit that this creates so that… In the past I think maybe some agencies had been pawning their responsibility off on the state as a whole, which is not a good thing, so if they’ve agreed to a settlement and the employee gets extra pay as a result of that, both the agency and the employee must pay their fair share of the additional retirement benefit that that will provide for that employee. And then the fourth change was the effective date was moved up to this year instead of next year – 2013 instead of 2014. I would ask you to vote to concur. [SPEAKER CHANGES] Further discussion, further debate. If not, the question before the House is the motion to concur in the Senate Committee Substitute for House Bill 359. All in favor vote aye. All opposed vote no. The Clerk will open the vote. The Clerk will lock the machine and record the vote.

117 having voted in the affirmative, none in the negative, the House has concurred in the Senate committee [sub suit?] for House Bill 359. The bill will be enrolled and sent to the governor. Senate Bill 402 the clerk will read. To the President of the Senate, Speaker of the House of Representatives [confreys? The difference between the Senate and House of Representatives?] on Senate Bill 402, bill to be entirely enact to make base budget appropriations for current operations of state departments, institutions and agencies, and for other purposes the [confreys?] recommend the Senate and the House of Representatives adopt this report. [Confreys?] for the Senate, Senator Brunstetter [chair?], Senators Brown, Hunt and Apodaca. [Confreys?] for the House of Representatives, Representative Dollar [chair?], Representative Johnson, Holloway and Burr. Representative Moore, please state your purpose. Two re-referrals real quickly before we get into the budget bill. [crosstalk] [those motions?] Senate Bill 42 short title Charter School Governmental Units, move that bill be removed from the Committee on Education and referred to the Committee on Rules. Without objection so ordered. And Senate Bill 172 which is a tax, which is a study bill as to local occupancy taxes. Move that that bill be removed from the Committee on Finance and be referred to the Committee on Rules. Without objection so ordered. Representative Dollar, please state your purpose. For a motion. The gentleman is recognized for a motion. Mr. Speaker, members of the House, I would move the adoption of the conference report for Senate Bill 402 and Mr. Speaker, I have handed up a list of members who will be speaking on various sections of the conference report. I would ask that they be recognized in the turn indicated on there, and that at the conclusion of those subcommittee reports that I be further recognized to speak on the motion. Representative McGrady is recognized to debate the motion. Thank you Mr. Speaker, colleagues. My role here is to provide a bit of an overview on the education portion of the budget. I'll be splitting responsibilities with colleague, Representative Horn, who will cover public education specifically, and Representative Blackwell who will cover any colleges and UNC system piece. Assuming the Joint Conference Committee's report is adopted, I suspect there's gonna be much debate over whether we are cutting education, and if so by what amount, or whether we're not. If one compares the Conference Committee budget to the continuation budget, there are cuts of 1.5% to public education, 1.6% to community colleges and 4.7% to the UNC system. For an overall cut of 2.2%. But you know what they say about statistics, if you compare the conference budget to the actual spending if fiscal year 12 and 13, these numbers are largely reversed. A 2.1% increase for public education, a 2.9% increase for community colleges, only a 3% cut to the UNC system, for an overall increase of just under 1%. So I would tell you as you look to the budget, you look to all the numbers that the devil here is in the details. You just, it's hard to compare, and depending on what it is you compare you're going to get a different perspective on this budget. And I guess depending on which side you turn out to be on on the budget, there are certainly statistics here to support your view. I wanna bring to your attention, specifically on the bill, on pages 17-18, 16-18 actually, those portions of the budget that deal with the lottery fund. On page 17, there has been in the past a formula for the distribution of the lottery funds, the so-called 50/40/10 formula, and that provision in the law is being repealed by this budget. And as most folks

already know, I suspect, that provision, the law each year has been waived in recent years. And so the budget is really reflecting the reality. Now, be assured the money in the lottery is still all going for educational purposes. And if you'll turn to page 18 of the Senate Bill, you will see what the lottery funds are being used for. It's all laid out right there. But that is a piece of the budget that isn't oft times recognized. The Special Provisions related to the Education Budget begin on page 54. Most of those provisions are going to relate specifically to some of the programs that Representative Warren and Representative Blackwell are now going to introduce and discuss. And if I can, Mr. Speaker, now turn to Representative Horn to cover the Public Education piece. [SPEAKER CHANGES]. Representative Horn, you're recognized to debate the bill. [SPEAKER CHANGES]. Thank you, Mr. Speaker. Ladies and gentlemen, this has been a difficult, complex, and challenging process. It is every budget cycle. There is no magic, there are lots of numbers, lots of students, lots of teachers, and lots of schools. And it affects every part and parcel of this state. A few weeks ago we debated, here on the floor, the House version of the budget. We all remember that didn't exactly match up with the Senate version of the budget, and we know what happens. We go to conference, the Sub-committee Chairs get together and work out as many of the differences as they can, the big Chairs work out as many differences as they can, and if there are any remaining differences we keep kicking it, moving it to higher authority. So that we get to a budget to the best of our ability that meets the needs of North Carolina, North Carolina students, teachers, parents, and schools. So let me present a few of the things that were, that is, are in the Public School Budget that I think are particularly important for you to recognize. This budget provides 23.6 million in continuing to fund a program that we implemented two years ago, the Excellence in Public Schools Act. That will strengthen student literacy, a very heavy focus on student literacy. Improve graduation rates, and increase accountability. This budget, for the first time, brings the teachers in North Carolina in line with us, right here in the House, and actually, most working people across North Carolina. The tenor system is replaced with an employee, teacher contract that's renewed based on job performance. Not unlike our contract with our constituents. Renewed based on job performance. Some of us have been renewed for quite some time, and some of us will not be renewed, but it's based on job performance. We will continue our commitment to paying for excellence, and encourage it by putting 10.2 million dollars in the second year of this budget to fund pay raises for those effective teachers. That's what we all want. Effective, quality teachers across this state. We're going to begin in the second year of this budget to implement the Opportunity Scholarships Program. Which will give those young students in the poorest and most rural parts of our county, of our state, an opportunity to attend a school that works for them. This budget provides for a critical school safety measures. There's not one person in this House, nay in this state that wasn't impacted, affected, thought about, concerned, and moved by the recent incidents in schools in other states in this nation. And we all feel impelled to improve the safety

Ensure the safety of the students in our schools. This budget finally accomplishes a goal that this legislature has worked toward for several years and that's finally the elimination of what's called discretionary cuts, the old I give you ten, you give me back two. We're now going to fund the schools and they're going to decide what they're going to do with the money, not us. It's straight up. No shell game. No I give you ten, you give me back two. This budget continues to phase out of the teaching fellows but in fact supports the highly successful Teach for America. This budget initiates some programs that are critical to the future of this state and innovation and bringing out private sector together with our public sector for new ideas. We're looking for new ideas, better ways. How do we deliver education more effectively to the students across this state? How do we pull up the best of our students with the use of IB and AP programs? How do we meet the needs of our employers across this state with CTE programs? We've begun that process. We based a lot of this budget on actual numbers, not budget numbers, not guesswork, but actual spends from last year. When we had discretionary cuts we've learned from the LEAs where they feel are the important areas for them and we've used those numbers to develop this budget. Is it a perfect budget for it? There is no such thing but it is a good budget. It's hard work. Both sides of the aisle know how hard and painful these decisions are. Not easy but its a step in the right direction for accountability, for responsiveness, and to move our K-12 education into the 22nd century. Thank you, Mr. Speaker. I yield to Representative Blackwell. [SPEAKER CHANGES] Representative John Bell, state your purpose. Representative Blackwell, you're recognized to debate the conference report. [SPEAKER CHANGES] Thank you, Mr. Speaker. I want to comment as briefly as I can on aspects first of the community college budget. One of the things that's going on in this budget is, and many of you may appreciate this, that over the last few years during the great recession, we had a tremendous growth in the enrollment in our community colleges back a few years ago when people were even to greater numbers out of work and looking for other opportunities. That enrollment has fallen off rather substantially. So, one change that the budget makes which was in both the Senate and the House budgets and is preserved in the conference report is that we are changing the enrollment funding model to look at the most recent two years rather than the most recent three years. The effect of that is to save us somewhere in the order of almost $20 million. That accounts in large measure for the what would otherwise be a decrease if you were looking at the continuation budget rather than the actual budget that Representative McGrady referred to earlier. The decrease from the continuation budget based on the old three year model would have been about $16 million but we're saving about $20, actually $19.9, by moving to this two year enrollment. Recognizing that that could cause some difficulty for some of our community colleges that would be faced with a larger adjustment that they would need to make in their operating budget for the current year, there's $4 million in non-recurring money that's allowed to help with them transitioning or phasing in that reduction. In addition, there is a relative small increase improved of 250 per credit hour for courses at the community colleges. Based on our discussions, it

My understanding that that still leaves us very competitive when compared with the courses and the charges at community colleges in other states. Another thing which the budget does, which I think we should be pleased with, is it moves us in the direction of more performance funding for our community college systems, by putting some increased funding behind that process. First, it gives them an additional 9 million dollars by restoring a portion of the management flexibility reduction that they had in the previous year but directs that they use that to help fund performance funding model. The idea is that there are goals that are set for the community colleges and those that meet those goals let us say in terms of the percentage of students taking a nursing course, who actually end up not just passing the course but actually passing the state licensing test. There’s funding provided. In addition, we direct that another 9 million in the first year of the biennium, of their current funding, would be redirected to support that performance funding model. The amount in the second year of the biennium are increased so that the total from all sources is about 36 million. Recognizing that our community colleges are on the cutting edge of trying to prepare people for jobs, one of our concerns is that community colleges need to have adequate funding to purchase the equipment that is current enough that it can be used to train people for jobs in business and industry that are currently available in the economy. So it provides an additional 10 million dollars in non-recurring funds for equipment purchases during this first year of the biennium. Finally, with respect to the funding items in the budget, there’s 4.8 million dollars in non-recurring funds for the North Carolina Back-To-Work program. If you look in your special provisions section of the budget on page 133, you can see that those funds are designed to go to programs at community colleges that fall into certain categories. The first one listed, for example, is employers who have committed to assist colleges with the design and implementation of training plans and to interview program completers for available jobs. The other categories that are listed are designed by this new program to try to lead to real jobs rather than to training for jobs that may or may not actually exist in the economy. A final thing I’ll mention on the community college in terms of funding requirements or appropriations is that there also is a special provision in the budget that asks the community colleges to create a fourth tier of funding which would provide the highest level of funding to the community college per student because the courses that were associated with that fourth tier or highest level of funding again fell into that category of preparing them for jobs that were readily available, that the individual once completing the course for, could go into that job. Switching to the UNC system, the budget has an additional 65.8 million in the first year of the biennium and 73.6 million management flex reduction for the university system. It increases tuition for non-resident undergraduate students in the second year of the biennium, that’s to allow for students who were admitted for this coming school year before the university was on notice that this increase might take place. In addition, because the state education assistance authority that handles most college and community college grants, and need-based scholarships and the like, because it would be involved with the handling of the opportunity scholarship program, that program is also funded under the UNC system heading because of the location of the

At education systems authority, under the UNC portion of the budget. There is a reduction in the overall funding to the university based upon savings and operational efficiencies, which the UNC system board of governors and the various campuses have identified and have implemented. This budget would authorize the board of governors to use up to 15 million dollars to implement other provisions of the report on those operational efficiencies. The budget eliminates a subsidy of 15 million dollars that was provided in last years budget of the UNC school of medicine. The budget continues a 4.5 million dollar nonrecurring funding, for instance North Carolina needs-based scholarships, which are used to help students who rather than attending (this is for North Carolina residents) a state supported institution may be attending a private college. An important budgeting move that the conference report agreed upon is a move towards what is referred to as forward funding for the UNC needs-based grant program. We've had the problem for a number of years, that the university let us say this past spring with sending out acceptances to students to be admitted this fall. And with those, generally they like to tell them whether they're going to be approved for a scholarship, or grant, or something of that sort. Because we typically were not doing the budget until after those letters went out there was always some uncertainty on the part of the university as to how much money they would have for the purpose of funding those scholarships. So what we are doing is setting up in effect, a reserve that would have money in it a year early, so that the university, when they send out the letters this coming spring, theoretically would know that they've already got the money on hand and how much it is and they could plan accordingly. This forward funding would actually not be completed, however, until the second year of the biennium. The final thing that is related the money report on the UNC system is that heretofore, there was funding of 7 million dollars for the institute of regenerative medicine at Wake Forest University that was appropriated through the department of commerce. Those funds are transferred and are now going to be transferred through the UNC budget, but for the same purpose. Finally, I wanna comment quickly on a couple of special provisions that I think may be of some significance. First of all, there's a provision in the community college budget; special provision section, that will encourage community colleges working with community college state board to approve programming that would allow freshmen and sophomore high school students to have opportunities to participate in course work that would lead them into essentially career and tech type programs. If you recall, we've had legislation early in the session that you now get a diploma with either a career ready or a college ready endorsement, and this program would be designed, I think, to align principally with that career ready endorsement. In the case of the UNC system, some of you may appreciate the fact that there's a provision in the budget requiring our various institutions in the university's system to consolidate the process by which they determine who is and who is not a resident for purposes of in-state or out-state tuition. Heretofore, we found that some institutions may be determining that question differently and that the same student applying to several schools might be told he's a resident at one place, but not at the other. So that's intended to try to clarify that. There is a provision with respect to several campuses that would allow the board of governors without going through the council's state and governor to get authority to dispose of an ??

Or will property that falls within certain categories in terms of the length of time involved with the acquisition of the property or the disposition ?? Final thing I’ll mention is that we have in this budget an effort to encourage students to complete university and higher education in a timely fashion. So there is a requirement that in order to be eligible for need-based scholarships and other grant programs that if you are not on a five year program, a degree program that is typically a five year program, that you would have a ten semester limit on how long you could receive scholarships and grants. If you are on a five year program then the limit would be twelve semesters and if you’re involved at a community college it will be the accrued limit of six four time semesters. Thank you Mr Speaker. [SPEAKER CHANGES] Representative Hollo, you’re recognized to debate the conference report. [SPEAKER CHANGES] Thank you Mr Speaker. I was speaking on the Health and Human Services section of the budget. The proposed conference budget appropriates 5 billion dollars, an increase of 377 million or 8.2% in the, in the first year. In the second year an increase of 507 million or 11% without the additional funds for Medicaid, the conference budget compared to the continuation budget for the first year’s reduction of 3.5% and reduction in the second year of 5.2%. This part of the budget includes a fifty two million dollar, fifty two million dollars in hospital assessment increased the nominal co-payee for eligible Medicaid services to currently three dollars and ninety cents, which is the maximum, reduces hospital out-patient payments from 80% to 70% of costs, implements a shared savings payment plan, establishes a 3% provider payment withhold in the first year and implements the shared savings payments to providers in the second year. This is savings through drug cost adjustment. This part of the budget expands a Medicaid rebase of a 434 million in the first year, 557 million dollars in the second year. This 49.7 million dollars in the first year earned 14 million dollars in the second year for 69,683 new recipients in 2004 from the affordable ?? would affect Medicaid. Budget provides 9.8 million in the, in state funds and 3.8 million in federal funds for non-profits requires the department of Health and Human Services to establish a non-profit block grant process by the second year. Establishes a supplement of short term assistance for group homes for recipients who lost Medicaid personal care service funds. Now this is up to a maximum of 4.6 million dollars. And now, now Mr Speaker if you will recognize Representative Avila for the remainder. [SPEAKER CHANGES] Representative Avila, you’re recognized to debate the conference report. [SPEAKER CHANGES] Thank you Mr Speaker. Ladies and gentlemen, as many of you know, one of the hard impacts on our budget that we literally have no control over is Medicaid and this budget has fully funded our Medicaid budget. And we’ve also asked the Governor in the HSS to put together a plan for reform of Medicaid to help us get a handle on our programs and entitlement that we have to pay regardless of what other expenses may be on the calendar for us to take care of like education and transportation. That plan will be presented to the General Assembly though for our final approval. Some of the other things that we’ve done particularly in the area of middle health, we’ve established a state-wide tell a psychiatry program which will enable some of the more rural areas which lack the services to be able to take advantage of top-notch care in their local facility and areas. We’ve also expanded available psychiatric beds, we’ve added nineteen modern hospitals and we’ve added a number of three-way beds which is kind of hard to put a number on it at the moment because what we’re introducing there is a two-tier payment system where we will determine the payment based on the activity of the patients. Not everybody comes in needing the same service. Some are more critical than others and we need to adjust that.

payment to what the patients need. We’ve also taken a lot of cuts. Not just from state funds that were short this year, but also federal funds. It’s a case where we have a lack of funding, but we have no lack of citizens to take care of. For that reason, a lot of our programs and issues like the ADATs, ADAP, Oral health and CDSAs. And for those of you who don’t live in an acronym world, the ADATs are our Adult and Drug Abuse Treatment centers. ADAP is our Aids Drugs Assistance Program. The CDSAs are our Children’s Development Service Agencies. Rather than take care of the problem by just cutting, what we’ve asked in a lot of these cases is for these facilities to take a look for efficiencies as we’ve asked throughout state government in order to be able save money and still be able to take care of the needs of the citizens of the state. We’ve also added 2500 pre-K slots. That not brings our total number of children served to 27,500. One of the things that I’ve been very pleased with in the budget is everybody knows my addiction to evidence based programs. We’ve introduced a number of evidence based programs in different areas of the HHS budget. Programs such as the Nurse/Family partnership in dealing with unwed mothers. The North Carolina child treatment program which deals with children’s traumatic injuries. In the area of foster care and adoption, using proven programs like Family Finding and setting up a North Carolina model on the Wendy’s Wonderful Kids model to be able to offer services of permanency and appropriate homes to children in foster care and also children who are up for adoption. Those are just some of the things that have made up our HHO’s budget and I feel like we have accomplished a tremendous amount with limited funding and I would encourage you to vote yes on the conference report. Thank you. [SPEAKER CHANGES] Representative Hurley, you’re recognized to debate the conference report. [SPEAKER CHANGES] Thank you Mr. Speaker. Just as in Public Safety part of the budget, begins on 1 through 13, I13, and the special provisions, it’s 295 to 339. I’m going to go over some of the highlights. It is $2.37 billion and that’s about 11% of our total budget. It provides for $3.7 million for inflationary increases for fuel for the state highway patrol that has not been funded and with the gas prices going up, we wanted to fund that fully. $25 million to upgrade the Viper system to allow additional first responders onto the network. Many have had the equipment, but have been unable to get on and this will enable to come on the system. It includes $27.5 million in savings from the closure of 5 prisons, 2 juvenile detention facilities and one youth development center. It was very difficult to do and difficult to decide what to do. We listened to the agency on this. $5.8 million in this second year to fund additional probation and parole positions needed to meet the requirements of the Justice Reinvestment Act. That’s $5.8 million in the first and $12.1 million in the second. $1.8 million to expand electronic monitoring for probationers, they say this is very helpful. In the Justice Department, we have $1.5 million to fund 19 additional toxicology positions in the state crime lab. $1 million in additional funding with the support of both of the training standards commissions. The IDS, the proposed budget includes $3.8 million recurring funding in the first year for the private assigned counsel fund and re-calibrating allowable punishments for class 3 misdemeanors to limit the need for indigent defense services for these low level offenses. Three provisions are associated with this policy change. One reclassifies some class 1 and 2 misdemeanors as class 3 misdemeanors, one changes several boating misdemeanors to infractions, and one changes the punishment for class 3 misdemeanors to a fine only for the first three offenses. These changes reduce the potential...

incarceration for those charged with these crimes, thus reducing the need for indigent defense services. Savings are currently estimated to be around $2 million. And in NAOC, the administrative office of the courts, $1 million, we put to, $1 million to restore 22 of the magistrate positions, so that those that need four will hopefully come up to four. And then we had a $4 million reduction to the administration. We did keep the Special Judges and we kept the court reporters. If you have any questions, Representative Daughtry would be glad to answer. Thank you. [SPEAKER CHANGES] Representative McElraft, you are recognized to debate the conference report. [SPEAKER CHANGES] Thank you, Mr. Speaker. Members of the House, the conference report for MER appropriates 371.2 million, which is an increase of 25.3 million. In the Department of Agriculture, the budget is 115.1 million, which is an increase of 6.2 million. Some of the highlights there are we created a new program in the Department of Ag focused on growing the bioenergy sector in North Carolina, and it provides 2.4 million in the biennium for that. We also modernized farming equipment at the research stations. And at the Department of Labor, we appropriated 16.7 million, which is an increase of 500,000. At the Department of Environment and Natural Resources, DENR, the conference committee budget appropriates 154 million to DENR. And that's an increase of 44.9 million, and the increase largely due to several actions. One of them was it merged the National Heritage Trust Fund under the Clean Water Management Trust Fund and provided recurring appropriations in that, 24 million in the biennium. It transfers the Energy office from Commerce to DENR, including 56 positions, so that accounted for some of the increase. We also have the Non Leaking Underground Storage Fund. We appropriated 3.5 million for that to assist homeowners with the cleanup of these home heating oil tanks. The clean water--we created a new water infrastructure authority, and this consolidates available funding for local governments for critical-needs water and waste-water infrastructure programs. And also under DENR, we provided 5 million for each to match federal capitalization grants for the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund. In wildlife resources, we decreased their budget by 6 million in the first year and 2 million--4 million in the second year. And of course you all remember the bill that we allowed them to raise their fees. They're trying to become self-sufficient. The Department of Commerce, we provided--the spending for the Department of Commerce appropriates 51.2 million for Commerce this year, and that's an increase of 17.7 million. We provided 1 million in nonrecurring funds so the state can prepare for the Department of Defense ?? activities, which very important to keep our bases open. We also provided funds for the Industrial Commission to establish a workman's compensation compliance program, which was recommended by the governor. We established a new rural economic development division within the Department of Commerce, and that will consolidate and streamline economic development funds available for rural communities; 24.3 million was appropriated in the biennium for that new rural economic development division. We provided Commerce with the flexibility to establish public/private partnerships, and that continues. That's all of Commerce. Thank you very much, and I recommend the budget. [SPEAKER CHANGES] Representative Shepard, you're recognized to debate the conference report. [SPEAKER CHANGES] Thank you, Mr. Speaker. I believe it's time for the seventh-inning stretch, don't you? Seems like everybody's gone to sleep on us. As far as the conference report is concerned and pertains to transportation, I'll give you a little background information. The continuation budget for the Highway Fund and Highway Trust Fund for FY 13 and 14 are 1.70 billion and 1.12 billion, respectively. Adjusting for forecasted revenues, non-recurring appropriations of unencumbered balance and other adjustments, the conference budget appropriates 2.5 billion

to the Highway Fund and 1.11 billion to the Highway Trust Fund and FY 13 and 14 which is a combined increase of 339.1 million and that's relative to the continuation budget and 62.5 million increase relative to the certified budget for FY 12 and 13. In comparison, a proposed FY 14 and 15 represents an increase of 177.4 million relative to the continuation budget and reduction of 69.6 million relative to the certified budget for FY 12 and 13. Also in this conference report, it eliminates 400 vacant positions in FY 14 and 15. Other significant actions included are, we consolidated various funding streams within the Highway Trust Fund, we restructured the Secondary Road Construction Program in the Highway Fund, consolidates the [??] allocations to conform with House Bill 817, Strategic Transportation and Investments. Thank you. [SPEAKER CHANGES] Representative Torbett, you're recognized to debate the conference report. [SPEAKER CHANGES] Thank you, Mr. Speaker. Now to take people a bit further down the road what we also did in transportation is provide 286.1 million of additional funding for road resurfacing and dedicates 332.6 million in system preservation funds to deficient bridges over the biennium. We reinvested 23 million derived from the dividend payments from the North Carolina Railroad Company for freight rail and railroad roadway crossing improvements. We provide 22.6 million to advance the replacement of mainframe applications critical to Division of Motor Vehicles' customer service and process improvements. Expands the Highway Use Tax base to include both the retail value of a vehicle and dealer administrative fees. Establishes a local, key word being this, a local elective process for the initiation of tolling on ferry routes which are currently un-tolled and expands the departments authority to generate other sources of revenue on the system. Toll and other earned revenues will now be deposited into a reserve account to assist with the passenger ferry vessel replacement. Increases outsourcing targets to a range of 60-65% over the biennium for pre-construction work and 5% annually for right of way project development and analysis and roadway design activities. It directs the department to evaluate potential improvements to global transport and connection transportation infrastructure to promote economic development and improve access including the Wallace to Castle Hayne Track Restoration Project for access to Wilmington Port and potential rail access improvements to allow to get the the port of Morehead City. I would also mention that on that one when you hear about the different departments working together in the taking down or the tearing down of silos, both transportation and commerce and agriculture are all cohesively working on that project. It also increases the optional locally assessed fee for driver education from $45 to $55 and establishes a supplemental annual registration fee for plugin electric vehicles of $100. Thank you, Mr. Speaker. [SPEAKER CHANGES] Representative Cleveland, you're recognized to debate the conference report. [SPEAKER CHANGES] Thank you, Mr. Speaker. I'll speak on general government. In cultural resources we funded the various areas within the department to maintain programs and operations and provided some $53,000 for department-wide marketing to increase the awareness of the departments resources. The Department of Insurance provided $100,000 for a Fire Protection Grant Fund to cover the state owned facilities located at Butner and we put the Voluntary Workers Compensation Fund on a plan to solvency through using a portion of the premium tax. On the Board of Elections we funded campaign finance and audit positions that were previously funded by the North Carolina Public Campaign Finance Fund and in the second year we will draw down the [??] for statewide information technology upgrades and efforts for voting. In the Governor's office we had a $369,000 savings to reducing non-essential dues and memberships. In the Office of State Budget and Management we provided funding to increase staff for

?? analysis and forecasting of the state budget and we provided $3 million for the Tarheel Challenge Stanley County campus renovations. The North Carolina Symphony had its $1.5 million challenge grant funded for both years of the biennium. The auditor’s office was funded for two additional auditors that will focus on IT security and fraud in the Department of Revenue, we provided funding for two auditors and funds to implement tax reform. The Lieutenant Governor’s office received funding for three additional positions. The Department of Administration, nine positions of the office of state construction were brought back to general fund support from receipts. We provided increased funding for the public health lab and office of the chief medical examiner of $254,000 and the Department of Veterans Affairs received funding to be brought into the information technology consolidation. The State Ethics Commission received funding for an additional paralegal. The Housing Financing Trust fund received $7 million for both years of the budget cycle. The Office of Administrative Hearings, we provided fundings for the administrative law judge and a law clerk. Provided funding to fully implement the case management system and funded four positions to implement regulatory reform. The Treasurer’s office, we authorize the use of receipts for the state and local government automation project to replace outdated information systems and a little over a millions dollars to upgrade the State Core’s Banking system and recurring funding to operate the system. We funded the Fire Rescue Squad and National Guard pension funds and the Line of Duty Death Benefits funds. [SPEAKER CHANGES] Representative Saine, you’re recognized to debate the conference report. [SPEAKER CHANGES] Thank you Mr. Speaker. I’ll speak to the IT portion of the budget. The proposed budget appropriates funding to three IT funds. The IT fund expends $9 million in a fiscal year 2013-14 and $10.5 million in fiscal 2014-15. Including funding for a government data analytics center, also known as GDAC. The IT reserve expense, $28 million in fiscal year 2013-14 and $31.6 million in fiscal year 2014-15. The internal service fund expends $190 million in both fiscal years. Some of the significant changes and actions in IT include 3 funds includes statewide information technology IT funding. Of those, the IT fund includes funding for the operation of the office of the state chief information officer, and funds statewide IT projects including funding for criminal justice information network and the geographic information system services and $1 million to consolidate agency infrastructure and applications. The IT reserves $30.3 million to replace obsolete computers and applications. $1.7 million to conduct an assessment to ensure that state agencies are meeting IT security requirements and $4.8 million to upgrade, simplify, and modernize the state’s internal IT infrastructure. The IT internal service fund receipts are limited to $190 million. The three IT funds do not include agency spending for IT which brings the state’s total for IT in excess of $1 billion each year. Part of what the state chief information officer wanted to see and the governor is an investment in the security and safety improvements and efficiencies. We’ve delivered that. The focus for information technology this biennium is fixing what is broken using $59.6 million over two years and an information technology reserve fund to one, improve security to avoid incidents like the data breach of the Department of Revenue in South Carolina, two, improve planning to include developing a strategic plan and statewide architecture, and three, fund our mediation of state infrastructure by upgrading and simplifying the state network to increase efficiency and improve security, eliminating server closets to ensure there are no more incidents like the fire in the department of administration. Replacing outdated software and upgrade of over 40,000 state computers that are too old to run current software. We are also establishing standards and processes for protecting citizen data held by state agencies. We’re improving IT operations, identify state assets and locations in order consolidate servers and state data centers and ensure back-up systems are in place, the budget requires state CIO approval of any IT contract sole sourcing and direct CIO review of projects to prevent duplication. We are also developing a...

Vehicle management plan and approved unmanned aircraft queues, also known as drones, requires the state CIO to develop a plan for statewide motor fleet management system. Includes language to address unmanned aircraft systems by prohibiting unmanned aircraft system use in North Carolina without state CIO approval until July 1st, 2015, and will allow state CIO and Department of Transportation to develop a plan for implementation. Other [??] projects include government data analytic center which I mentioned earlier, which continues the states effort to integrate and analyze data from disparate agencies to increase sufficiencies, increase cost savings. Data archiving project which requires the state CIO to conduct a feasibility study for enterprise data archiving. An enterprise grants management project which continues efforts to standardize grants management systems and moves responsibility to the office of the state CIO. Enterprise electronic forms and digital signatures project which continues development of statewide electronic forms, effort and moves from the office of the state controller to the office of the state CIO. A tax information management system, the [??] pins project which is the new Department of Revenue system which is scheduled to go live October 2013. A next generation secure drivers license system project which requires DOT to report on the projects viability, and the project has experienced numerous vendor delays so we're following up on that. STARS and LITES project which directs the replacement of three legacy DOT DMV systems including the state tilting and registration system, STARS, state automated drivers license system, SADLS, and liability insurance tracking and enforcement system which is LITES. Lastly the state CIO will be working on the state portal project, it allows the state CIO to establish a state portal after meeting specific requirements. Thank you Mr. Speaker. [SPEAKER CHANGES] Representative Dollar you are recognized to wrap up the roll out of the conference report. [SPEAKER CHANGES] Thank you Mr. Speaker. Members of the house, our appropriation team is pleased to bring before you the conference report on senate bill 402, the appropriations act of 2013. The state's budget reflects the aspirations of its people. The citizens of North Carolina called for sweeping change in 2010 and reaffirmed their call for reform in 2012, this conference report heeds the call of our citizens and that is for a budget that is realistic, that is reasonable and that is responsible. We begin this budget by building back our reserves, placing over 269 million dollars back into our savings reserve. 162 million dollars to repairs and renovations. We have funded our state health plan and our retirement obligation. at the end of the first year we leave 250 million dollars unspent, and in the second year we leave 355 million dollars unreserved as a hedge against either further surprises in Medicaid or unforeseen national disasters. Of that unappropriated balance in the second year, our plan is to use a substantial portion of those funds to provide a much needed pay raise for teachers, state employees and a cost of living adjustment for retirees. In the Medicaid program we have kept our commitment to the health of our at-risk children, the poor and disabled, by committing over a billion dollars of new money in the biennium to ensure the financial stability of this program. North Carolina will continue to offer medical, dental and mental health optional services through Medicaid, more than almost any state in the nation. This budget also affirms our commitment, continuing to mental health reform. In early childhood development we have added 12.4 million to secure 2500 additional pre-K slots so more at-risk Nichiren can get the right to a good start and success in school and life. we have done our best to minimize reductions in the courts and the justice system while taking advantage of the savings generated by the implementation of the justice reinvestment act. We have taken strides to modernize and retool the Department of Environment and Natural Resource to better serve our local communities. In the Department of Commerce we're implementing bold new approaches to job recruitment, business expansion, industrial development and marketing. Changes geared to make a real impact in our state's economy. For transportation the budget reflects the important strategic reforms enacted in house bill 817, which recognize the crucial role of our roads and highway.

[Speaker changes.] ...rails and bridges, airports and seaports...how they play in the health of our economy, short term and long term. Now this budget also does well by the arts/music/history, preserving the rich cultural heritage of our state. Clearly, no area of the budget is more important than education, where approximately 60% of our spending is focused. We have worked hard to continue the state's strong commitment to our nationally recognized community college system. We will continue to have the nation's largest commitment to public universities with the commitment that we have made in this budget to the UNC system. In K-12, we are taking measured steps toward education reform, teacher development, student safety, and expanded choices for our parents. As with any budget and certainly any budget conference report, no one is pleased with all of the choices that have been made...or often have to be made because of a variety of continued pressures on our public finances. The budget seeks to achieve the state's goal of a well-educated, healthy, safe citizenry with the opportunity to work in a rewarding career and the freedom to enjoy the natural, cultural and historic treasures of this bountiful state. While this goal of our budget is lofty and well-deserving of our best efforts as a general assembly, the report before you today contains what is truly rare for any budget...a moment of profound historic significance. In another budget cycle or two, the appropriations and provisions of this document will be long forgotten but what will remain is that this General Assembly righted a great moral wrong in this state. You know the powers of government are enormous. For a half century, that power was used to sanction and carry out a systematic program called eugenics. The state of North Carolina taking, from certain citizens, the ability to reproduce because in the government's opinion, they were not worthy of this natural and God-given right. It was socialism...social Darwinism...taken to it's extreme, enforced and carried out with the full sanction of the state of North Carolina. Never, in the last century of our state, has the power of government been so misused. Citizens mutilated, maimed and scarred for life. After decades of abuse and thousands of victims, the evil of eugenics was finally ended in our state in the 1970's. More recently, the state has issued apologies to the victims and placed as sign, just two blocks down here...to remind us of what we should never allow to happen in this state again. All of that is good, all steps toward atonement for a great evil but, until today, there was no compensation for the victims. And remember folks, we compensate people everyday with torte claims against the state, where the state has injured them or their property. We compensate prisoners when we find they were wrongly convicted and imprisoned. Never have the victims of eugenics had the opportunity to present a claim and be compensated by the state's...from the state's systematic torture of their body, which was never restored and for which you can never fully compensate. But today is the day when history will mark this General Assembly did what was morally right in the eyes of God. Questions I have for my colleagues and especially for those on the Democratic side of the aisle, are you going to join hands across the partisan divide and bring some measured ????? to these victims? Last week, Representative Goodman and the Democrats stood ready...said that the Democrats stood ready to work with Republicans. Was he speaking for your party? When he was speaking, was he speaking the truth or was he speaking empty rhetoric? Are you gonna take responsibility to right a great wrong? Will you allow this profound moment to pass, giving greater value to the temporal politics of voting against the budget? Or will they say in the future that you really did put principal above politics? My friends on the Democratic side, are you willing to shoulder your share....

Will you sacrifice your partisan pride to do what you know is morally right today? Or will you simply sit on the sidelines of history? [SPEAKER CHANGES] Representative Michaux state your purpose [SPEAKER CHANGES] To speak on a report Mr. Speaker [SPEAKER CHANGES] You’re recognized to debate the conference report. [SPEAKER CHANGES] Thank you Mr. Speaker and ladies and gentlemen of the House. I have listened to the report given by the members there and the eloquent words of Representative Dollar who is seeming to be trying to lay a blame game if we happen to do what he knows we’re going to do. I want to congratulate you on doing the job that you did on euthenics. You ought to be congratulated and you ought to rightfully take your place for that. It was a thing that was long coming it was many roads to follow on that. Believe me when I tell you that there are many people out there who appreciate what you have done in the area of euthenics. But let’s to talk about the area of the people who are living here now and what they are going to have to suffer as a result of the budget that you have here. In 1993 we began a program in this state and I’m speaking basically on the education budget particularly the public education budget. In 1973 we were 26th in teacher pay in the country and there was a commitment made at that time to try to at least reach the normal, the average, the state, the country norm on teacher pay and progress was made up until the point where recession started to hit but we at least tried to keep that promise going. I look at the budget now and wonder how you have tackled the fact that our teacher pay is now 46th in the country rating just above Mississippi and West Virginia and I look at this budget and wonder how you can think about us being 48th, 48th I’m sorry in per pupil spending just barely above Mississippi. That’s where we are in national statistics. I look at this budget and I see 394 pages basically of special provisions in there something that should have been vetted in committees that were put in this budget. Now admit it there was some happenings when I had particularly charged I tried to stop as much of that as I could in fact my own members Mr. Dollar sort of ate me out about the fact that I would not allow special provisions in the budget. I look at this budget and I see things in there that have just not been vetted on this floor and should have been. For instance you’ve got about $250,000,000.00 in carry over funds right now over into the next session. A little bit of that could have been used to try to put our teachers back on the track that reach the national norm but no it’s going to be carried over. Even at the end of the bi-annum you still got about $355,000,000.00 more left over that you really could have put to use for the benefit of the citizens of this state. I will tell you now Mr. Dollar here again, I appreciate what you’ve done in terms of euthenics and I abhor what you’ve done to the people of this state in terms of our education program and how low progress has been made on those. [SPEAKER CHANGES] Representative Glazier please state your purpose [SPEAKER CHANGES] To debate the budget Mr. Speaker [SPEAKER CHANGES] You’re recognized to debate the conference report. [SPEAKER CHANGES] Thank you very much Mr. Speaker. When this budget left the house I disagreed with the fact of it but less with the choices made in revenue limits it imposed. But today my diagreement

The budget and its choices is far more profound. Let me categorize what I see in the education budget. $110 million of cuts to teacher assistants and no money to make it up. Those funds that are put back in, and it is a good choice in this case by the majority for the discretionary fund, will have to be used to make up the teacher cuts and the instructional personnel cuts and the instructional supply cuts and the transportation cuts and all the other cuts which the majority acts as if don't exist in the continuation budget but do. The elimination of masters pay for teachers, one of the few incentives remaining for professional development of a faculty member. The elimination of the Teaching Fellows program and why that has happened no one will ever be able to fully answer on this floor. And so we [unclear 00:00:59] those to stay in the profession and now we even [unclear/disincent? 00:01:04] them to enter it. We eliminate, in this budget, even though the House passed 113-1, as a major policy matter an alternate approach to rid systems of poor performing teachers but keep particularly good ones in the system and protected. And even with Representative Dollar's second year suggestion and my response there is promises don't feed families. No pay increase this year for educators, leaving as I fully suspect we will be by the end of this session, us 49th in the nation or last in teacher pay. Defend the budget all you will on this floor, there is no defense for that. Then, yes, it contains two-thirds of the security package we unanimously passed on this house but it takes out our additional funds for school psychologists, social workers, and guidance counselors when we know from every piece of data we have that the biggest threat to schools comes from inside and not from outside in most occasions. With the teach assistant cuts and the new allocation formula, of course, we effectively increase class size in early elementary grades and there is no way to avoid that either. And then... And then... Although we can fund these basic positions and programs that are designed to really reflect what we all know which is that kids will learn if they have a competent, caring, dedicated, professional teacher in their classroom, but won't if they don't we somehow find the funds to start a second private school system through vouchers. This is not educational reform. It is public education abdication. At the universities, lest they be left off this list, $65-70 million in increased discretionary cuts on top of the almost $500 million that exists from four years of prior budgets, elimination of funding to the UNC hospital effectively for indigent care reimbursement as that skyrockets, and 10,000 students who will be effectively eliminated from financial aid packages with many more having their benefits cut. Part of this budget, and I know and we all know it did not start in the House, that's in the budget is called the Senate Excellent Schools Act. Well, hardly. This budget is better called No Teacher Left Standing. The budget represents nothing short of a scorched earth policy, ripping away at key components of public education. You want to improve public education? How about if we fund teacher salaries and pay what we say is the most important profession in the country and what every other state apparently understands on a greater level than we do? How about if we increase preschool opportunities? And I admire this majority for adding 2,500 slots but that doesn't make up for eliminating 30,000 in eligibility. And how about if we professionally develop teachers and give them time and vertical and horizontal professional development time and prestige and praise instead of taking away any opportunity they have to progress or to enter the field. But, of course, we do none of that because those represent the hard work. Those represent the hard choices and they actually cost. So instead, we result to calling something the education excellent school

As if by title it will make it happen. My greatest sadness today is that there were so many other choices and none were taken. While Representative Dollar is correct, that we end one historic wrong today, we sadly start another. The abdication of our responsibility to provide the resources necessary to constitutionally and soundly educate the students of this state. As a state we will only succeed, in my opinion at least, if education becomes everyone's business and all else dims in comparison. There is a solemn obligation passed to us by previous generations and by living in North Carolina we agree to accept it and that is to improve the system of education and communities in which we live year in and year out. And there is a trust placed in us by future generations not yet born to fulfill our maintenance obligation to fight poverty and disease and ignorance and prejudice and apathy and distrust and the only way I know to do that is to educate. And today we break our promise with those future generations. There is as I conclude my comments at least one story that comes to mind. All of us have heard it our different religions in different ways. And it's about the man who walks along the road. And he sees a second man, or woman, planting a carob tree. The walker asks the planter how long will it take for this tree to bear fruit. And the planter replies 70 years. And the walker asks do you expect to live another 70 years to see its fruit? And the planter replies I did not find the world without trees when I entered it. As my fore bearers planted for me so I am planting for those that come after me. If there were ever planters in our society it is the teachers in our schools. They plant the tree of knowledge in each child, sustain the tree of love in our communities and by their daily devotion nurture the tree of love for everyone particularly for lots of children who in too great of numbers desperately need to find in school what they no longer find at home. In short, they give the best of the human spirit and their soul to those who need it the most, our children, and sadly in my opinion today, we have not come close to giving our best on the floor of The House or The Senate. The fiscal harm we do today is bad enough, but the symbolic and psychological harm done here is far greater. And the staggering cost will be generational. We pass today a budget, in either stunning disregard, or shocking ignorance of the fallout that it will occasion. And the harm it will inflict on teachers, students, families and communities. And I will be voting no on this budget. [SPEAKER CHANGES] Representative Holloway, please state your purpose? [SPEAKER CHANGES] Speak on the conference report. [SPEAKER CHANGES] You're recognized to speak on the conference report. [SPEAKER CHANGES] Thank you Mr. Speaker. Members of the House, being one of the budget writers has probably been one of the most challenging things that I've ever experienced while being here in the state legislature. I can tell you that no budget is perfect. And it's in part because there's as 120 of us in this room with 120 different opinions. And it's hard to satisfy us all. There's things in this budget that I don't like. And I will talk about those in just a moment. But when you put it on a piece of paper and you list the pros and cons, the pros greatly outweighs the cons. The main reason I'm going to support this budget is because it keeps our fiscal house in order which I think is the key thing when writing any budget. It achieves and accomplishes many things and gets us through some challenges that have been facing us for a long time. I will name a few. We were finally able to take care of the viper program. We got through the challenges of MediCaid this year, though we know that greater ones are to come, we made it through. We funded the additional pre-case spots. Another was said that there was no progress made on programs. There actually was many new programs put in our education budget. Programs that passed this House, and a lot of them passed near unanimously. No, we didn't get all the school safety money, but at one time the newspapers were saying they didn't think we'd get any of it. And we did get the most important parts. And sure I would have loved to have had the money for the psychologists as well. But we did get the SROs and we know that that's the most important part.

To keeping the schools safe. We've got the volunteer SRO program through, as well. We've got money for panic buttons, so that law enforcement can immediately be contacted. We've got a significant amount of money in the budget for digital learning. We've got programs like Advanced Placement so students don't have to pay for Advanced Placement tests. Career tech, there's a focus on that. So certainly that there are very very many good program in this budget. And as Representative Horn said earlier, the shell game was eliminated with the local discretionary cut. Representative Johnson and I were very quick to point out, yes, this was the right thing to do, but we also pointed out that it would cause some confusion because it does give the appearance in the budget that there are significant cuts to teachers and TAs, but I encourage you to go talk to staff. And they will tell you that it's a wash, and that the teachers and TAs are not cut. The shell game is over. We're not going to give them 100 bucks and then say, send us back 20. That's over with. It's the right thing to do. It's tough to explain, but it was the right move to make. As far as salaries go, a comment was made that the Democrats tried to keep their promise going with teacher pay to get them up the ladder a little higher. I've said this many times on the House floor, last time I recall when you were in charge and the budget difficulties were just beginning, you gave them nothing. I've said it over and over, how did that help you climb? This budget doesn't do anything in year 1, but it does have the money in there to do it in year 2. The budget we passed in last session gave a 1.2% raise. Not much, but it's better than nothing. This budget will give a raise in year 2. We all want to give more, but where's the money gonna come from? We hear all these wishlists of all the things you don't want or don't want this. Again, I always pose the question and never get an answer. What do you want to cut from the budget to fund it or what tax do you want to raise to pay for it? It's that simple. The budget does have something in it that I don't care for and Representative Glazier talked about it, but I understand that's politics, it happens from time to time. The portion that deals with tenure and excellence in public schools. I think that's absolutely the wrong program. I think it absolutely solve no problem or none of the problems. I think we'll be right back here dealing with this probably two years from now. I don't think policy like this really belongs in a budget. I've always been an advocate that policy pieces like this should always run on their own two legs. They shouldn't be included in budgets. I didn't agree with this bit in here, but this is one that I lost. And I remember Representative Bill Culpepper, when I got here, he said one of the first lessons he learned when he was the Democrat rules chair, is that you don't win them all in the State Legislature. This is one I didn't win, and if I had the opportunity to vote on this, on its own two legs, I would absolutely vote no because it solves nothing. But it is a part of this budget and I think the responsible person has to look at the budget as a whole, our counties are waiting, they want to know what we're gonna do. Fiscally, this is as sound a budget as I've probably ever seen and I think it's going to move the state in the direction that we need to move. I'm sure we'll hear many more comments. We'll probably all say the same things until everybody says it, but on the financial side of this budget, I find it very difficult to make arguments against it. I find it very difficult to even take seriously any comments about how this does nothing for pay raises, when clearly it's in there year 2. Yes, I know, we want it sooner, but you know, show us the money and how to do it or tell us what tax you want to raise. With that, Mr. Speaker, I'll conclude my comments, but I ask the members to please vote for this budget. Let's go home, the work's done, please vote yes.[SPEAKER CHANGES]Representative Fischer, please state your purpose

Mr. Speaker SPEAKER CHANGES the sergeant of arms will remove her Representative Fisher please state your purpose. SPEAKER CHANGES Mr. speaker to debate the conference report. SPEAKER CHANGES You are recognized to debate the conference report. SPEAKER CHANGES Thank you Mr. Speaker and the ladies and gentlemen of the house well I have heard it said on the other side of the isle that the devil is in the details and it certainly is I want to talk just for a few minutes though about how this effects real people in North Carolina and to do that I wanted to use a example or two of a few emails that come from the west side of the state which is where I am from. One of them was highlighted in an article the in News and Observer and it comes from a teacher who loves the profession but leaving the profession may be a mater of survival for she and her family. This particular person has been a teacher since 2007, but her income is so low that her daughters ages 1 and 3 qualify for medicaid. She says we never wanted to live in luxury, but we did however hope to be able to take our little girls out for ice cream but we did however want to know where we could find the gas money to visit their grand parents find us the money and give us a pay raise in the future I think I can find the money that was given to out of state corporations and wealthiest individuals in our state. I think the money is there the very. Another example another example of an email I got and again this is from someone in the west I do not have a big problem with no tenure I too would like to get rid of ineffective teachers I would In this plan 75 percent of the teachers will be labeled ineffective when we label the 25 percent of the best ones to get the 500 dollar bonus in their pay. What if 60 percent of the staff are highley effective all earning high scoors isn't that what you want the best for the best teacher what is motivating the teacher 500 dollar bonus in their pay what if 60 percent are effective isn't that what you want for the kids in north Carolinawhat is motivating the teacher setting up a feeding frenzy like seagulls after scraps and when it come to setting up a feeding frenzy one of the places where we have spent some money and continued our process of abandoning public education in north carolina is with voucherw aboandoning public educationn how do we recruit quality teachers in north Carolina how do we recruit quality teachers when they have spent money and now they have spent moeny for their quality educatrion and now they have to pay back college loans I believe that there are six places in article 9 in the constitution where there is a reference to free public school section 6 and 7 are pretty explicit when they say state and public funding is for public school we are abandoning public schools and the teachers in this school with this vote

budget, and I ask you to vote no. Thank you. [SPEAKER CHANGES] Representative Queen, please state your purpose. [SPEAKER CHANGES] To debate the budget. [SPEAKER CHANGES] You're recognized to debate the conference report. [SPEAKER CHANGES] I'll hold up the weekend paper, up in our area, North Carolina sheds 11,000 jobs. The month before that, we shed 4,000, the month before that, 4,000. There's a reason North Carolina's employment is the fifth highest in the nation, consistently running around a point and a half higher than the national average. In my district, well over two percent higher than the national average in some of my counties, and all across rural North Carolina its two percent or higher. Over the national average. Is the choices, the choices and the priorities that we've been making at this general assembly. We have chosen to give tax breaks to those that are doing the best, the wealthiest, the top one percent of North Carolinians, nearly $300,000,000 tax breaks for the millionaires, the 8,500 millionaires in North Carolina get 300,000,000. Thus 300,000,000 off of education, that's 300,000,000 off of economic development, that's 300,000,000 that's not going to support our rural hospitals and all. Those are the engines of job creation in North Carolina, and we're not supporting them. And we are reaping the consequences. There's no way to a strong, prosperous, competitive, job-rich North Carolina that's not through education. Nobody can give you a strategy that doesn't include education as its primary vehicle. North Carolina has led, with our great university systems, but this budget continues the devastating cuts to the greatest university system in the nation, the university system that created an innovative, productive North Carolina. Over $500,000,000 of continuation cuts and add another 100,000,000 cuts in this budget to a university system that has been driving the future of North Carolina. Visit the Centennial campus down here at NC State. Open your eyes and look around that's North Carolina [SPEAKER CHANGES] Mr. Speaker. [SPEAKER CHANGES] Representative Ballard, please state your purpose. [SPEAKER CHANGES] See if Representative Queen would respond to a question. [SPEAKER CHANGES] Representative Queen, do you yield for a question? [SPEAKER CHANGES] I do. [SPEAKER CHANGES] He yields. [SPEAKER CHANGES] Representative Queen, what was the number, how many hundreds of millions of dollars or tens of millions of dollars were cut to the university system and public education in 2009, when your party was in full control of the general assembly? [SPEAKER CHANGES] Representative Ballard, I don't know that I think call that number exactly. I do know that we entered the great recession in 2009, and I do know when I came back in the senate, as a member, all revenues were off 40%. We were to close every university, every public school, every community college in May, that year, if we had not had incredible revenue sharing from the Federal government, and we were in an unusual, an absolutely historic situation. We used a metric, a program where the universities were asked to determine their cuts. And indeed, we did cut them at that point. But we didn't intend to sustain them. We've added to those cuts and doubled them, and doubled them again. And that's the dilemma

that I'm referred to. You cannot go down that road and stay great [SPEAKER CHANGES] Mr Speaker to ask another question if gentleman would yield [SPEAKER CHANGES] Representative Queen to yield [SPEAKER CHANGES] I do [SPEAKER CHANGES] He yields [SPEAKER CHANGES] and let me ask you this what was the unemployment rate when the Democrats lost control of the general assembly and the unemployment rate today. Is it not true are you not aware that the unemployment rate today is lower then the states unemployment rate was at the time that you left office [SPEAKER CHANGES] Well I can tell you a little bit of history about unemployment. We had the George W Bush recession that started in September of 2008 the greatest recession in my lifetime and the second greatest I think in America's history and indeed revenues and employment plummeted and since. When you got back here i think in June of 2009 till now both revenues and employment have inched up they've inched up slowly and they've inched up slower in North Carolina relative to any of the other states which is why were behind and its the policies that we pursued versus the policies that our competitors in across the nation have pursued. [SPEAKER CHANGES] One final question if the gentleman would yield [SPEAKER CHANGES] does he yield [SPEAKER CHANGES] I do [SPEAKER CHANGES] he does [SPEAKER CHANGES] thank you representative, well i guess were still waiting for the Obama recovery but let me ask this. It was a statement made on this floor about two years ago that said that the budget that we had then was gonna cut twenty thousand teachers are you not aware that was completely false that never happened that never materialized you aware of that? [SPEAKER CHANGES] in my county of Haywood we cut 79 teachers and if you follow that out to a hundred counties its seven or eight thousand teachers were cut and I think that's a reasonably accurate figure. My point is that if you do not invest and you do not keep your revenue streams to invest you will not create the economy and the jobs and the growth that we need in North Carolina [SPEAKER CHANGES] please state your purpose [SPEAKER CHANGES] to ask the friendly representative a question [SPEAKER CHANGES] representative Queen do you yield? [SPEAKER CHANGES] let me just end here I want to just [SPEAKER CHANGES] he does not yield [SPEAKER CHANGES] thank you. My point is that we have made choices to give tax breaks to those who are doing the best there are seventy thousand corporations in North Carolina. The tax breaks that we put into this budget 60 percent of it goes to the top 200 . The top 200 out of seventy thousand. These are multinational out of state corporations for the most part. So I just point out if we want to make jobs we've gotta invest in small business, we've gotta invest in rural economic development in North Carolina again, half of our state is rural still. We have cut our regional partnerships out of this we have brought all the power to Raleigh and expect its going to get my district in Western North Carolina, I don't think so. So I am voting no on this budget and I suggest you might do also [SPEAKER CHANGES] Representative Insko please state your purpose [SPEAKER CHANGES] to debate the conference report [SPEAKER CHANGES] your recognized to debate the conference report [SPEAKER CHANGES] thank you Mr Speaker. Members when we pass a budget and a revenue package that funds that budget were announcing to the state and to the world our values and our priorities. Unfortunately this year for the state of North Carolina the values of that package that we have protects wealthy donors at the expense of virtually everyone else. The budget is irresponsible, it's fiscally irresponsible and morally irresponsible. You've already heard some of the cuts in the budget, cuts to disabled children to our rural centers to our hospitals our medicaid patients more cuts to

...people with mental illness. But when it came to filling the hole created by the tax package, you turned to dismantling our public education system. All of that destruction just so some wealthy donors, some wealthy members of the state, could get a windfall they didn't need. That's what we did we gave an unnecessary windfall to the wealthiest in the state. We gutted our education system, the most important pro-job, anti-poverty program we have. When we talk about eating our seed corn, it usually means the cupboard is empty, we have nothing else. But our cupboard wasn't empty, we made a tax-cut, we took resources away from our package, purposefully. We're competing in a 21st century global knowledge-based economy by stripping funding from our education system, our research centers, our innovation labs. This budget undermines our future, it's irresponsible, vote no. (SPEAKER CHANGES) Representative Baskerville, please state your purpose. (SPEAKER CHANGES) To debate the conference report. (SPEAKER CHANGES) You're recognized to debate the conference report. (SPEAKER CHANGES) Thank you. Mrs. Speaker. One hundred percent of federal poverty level for a family of four is 23,550 dollars. 133% of the federal poverty level for a family of four is 31,322 dollars. Now if a teacher comes to work here in the state of North Carolina, and they have worked here for five years, they can earn a whopping 30,800 dollars. Now the majority party exposed the virtues of incentives. We need incentives to attract the best and brightest business men to our state. We need incentives to be able to attract businesses to our state. But no raises for teachers? No incentives for our educators? I mean I can understand the reasoning and logic behind incentives. But wouldn't that logic and reasoning apply to our educators as well? The very folks that have daily interactions with the future of our state. We need to send the right message to the business community and give them these incentives and these tax breaks. Let them know we are open for business. What kind of message are we sending our educators, what kind of message are we sending to them. I'll tell you, some of my colleauges have already said it. We are sending the message, the majority party is sending the message, that we don't prioritize our educators, that we don't want to reward them for commensurate work. That they are way on the bottom of the totem pole. And we've heard some things about there being some money for raises in year two, which just so happens to be an election year. Now we talk about a shell game earlier. These educators are not stupid. They understand what's going on here, and they're not falling for it. This is a terrible education budget, I think that it will set our state back. Now even if we do attract businesses here, don't we need educated and qualified workers to work these businesses? And if they are not getting a quality education, if they are not being instructed by teachers that are then rewarded appropriately, how are we going to put workers in these businesses that we are shoveling money to so they relocate in our state? These things don't work in isolation, one impacts the other. So i'll be voting no. (SPEAKER CHANGES) Representative Larry Bell, please state your purpose. (SPEAKER CHANGES) I wanted to speak on the conference report. (SPEAKER CHANGES) You're recognized to speak on the conference report. (SPEAKER CHANGES) Thank you, Mr. Speaker. Members of the House, you know I've sit here many times and listened to the debate and talk with my seat mate many times about whether we need to prepare to talk, or just what do we need to do. And I think about Saint Francis's serenity prayer, give me the courage to change those things that you can, and give you the wisdom to know the difference between the things you can change and the ones you can't. And I know right now I think I have the wisdom to know that I can't change anything that's getting ready to happen here on this vote.

of late. But I am sort of passionate when it comes to education and you've heard me talk before about how long I've been in it. I think Representative Langdon and I probably hold a record in here about education. We both started sometimes around around 1945 in this system. And I just want the teachers and the educators to know that I believe that we have one of the best education systems in the United States of America. Because I have followed this since the first grade all the way up until now. And I've seen the changes that have taken place. And most of the changes have been very positive. We've changed, as Doctor Flood says, from the exclusive type education, where we excluded people, where we didn't care whether they went to school or not. We didn't work with the students who had disabilities and all of that. We just left them out there. But then we included them. We went through all of the times where we had to integrate the schools. All that. I was there and participated in all these things. We had a lot of work to do and these teachers that you're talking about helped make this possible. Many of those who were along with me probably already have passed on or their retired. But we taught some of those students who are there right now working. They're the ones who send me the emails and the letters saying what in the world are you all doing to us out there in Raleigh? I got a bunch of them today that I read from Clinton North Carolina asking me those questions. I say well you know it's going to work out. Hopefully these things are going to work out. You see, some of you probably don't know when we start talking about tenure. I was glad to hear Representative Holloway say he was against that portion of it because I am too. I've worked through that era. When we had the year to year contracts. When the principals, the so-called principals, would be sitting up there and they would, if you didn't raise enough money that year to put into the budget general fund, you might not have a job the next year. Some of them even had teacher ??? where they would put, hire teachers that would come and stay there and before the could reach the five, fifth year or fourth year they would put them out and get a new set of teachers. Have absolutely nothing to do with the competency of that teacher. I've been through that. I've seen it all happen. And then I worked with Doctor Dudley Flood, Gene Causby and Dawson Lauders, when we tried to get things changed, so we could have tenure. So people would have some kind of assurances that they could work from one year to another. And have, set up housing and everything for their families. This happened. I'm not talking about suppositions and all that. I'm talking about reality. And I can tell you a whole lot of stories about that kind of stuff. And so we don't want to see ourselves go back to that time where we have to have principals making those decisions ??? somebody is going to work from one year to another, especially when many of them didn't know what they were doing. They couldn't evaluate. ??? Didn't know how children learn. Many of them had not taught that long. Some of them were unsuccessful teachers. So they said I don't think I want to teach. I'm going to become a principal. So they could boss. Because they couldn't teach. Check it out. I know what I'm talking about. And many of them would do that. And they would go on and get their degrees, administrative degrees and come in and if you asked them to go in and teach a class they could not do it. You ??? You say these are the people who could determine the top twenty five percent of their faculty. And many of them do not know how children learn because if they did they would know some of the teachers down the hall where, they would say that they may not be effective, they may not be effective with everybody, but people have teaching styles and their students have learning styles and you have to match the two, to make things work properly. And sometimes

... you think that teacher down there may be ineffective. It might be the most effective person for that child that's in that class. Certain ones. So don't just come up and say we're going to pass a bill that's going to go all the way through and be effective for everybody because it might not happen that way. So it's a little bit more in depth than that. You know, we have attorneys in here, we have doctors in here, and all that. Now let's suppose we had to go through that same scrutiny. Now you've heard the thing where it says doctors bury their mistakes? Lawyers send theirs to prison. And teachers have to live with theirs. And so we have to live with ours from day to day, so therefore, we're going to be a little bit more concerned about those people who are going to be on our boards of education. Because they run for office, so they win, they become county commissioners and all these kind of things. These are our students. So yes, I was very concerned about those students who would leave the classrooms. Those are the ones who voted for me basically to come here. Students that I've taught over the years that I've been administrator over the years. So you have concerns about the whole child, the whole everything, the community. And so I don't want us go down that road of saying that we have done everything that we can on a budget like this. And maybe this is not necessarily tied to the financial part, but like Representative Holloway said, I hate to see policy go into a budget like this. And we have set some bad policies in here when it comes to the tenure law. So I cannot vote for this budget because of that, and some other things. Thank you. [SPEAKER CHANGES] Representative Stam, please state your purpose. [SPEAKER CHANGES] To speak on the conference report. [SPEAKER CHANGES] You're recognized to debate the conference report. [SPEAKER CHANGES] Mr. Speaker, members of the House, I did something really dangerous recently and I'm not talking about jumping out of airplanes like Representative Pierce or Representative Blust. And I'm talking about zip lining through the rain forests of Costa Rica. I did something even more dangerous. I Googled myself on the internet. And I didn't know it was legal to put some of that stuff on there. But I found on there a speech I made two years ago on the budget. And I'm going to repeat myself because two years ago, I had third graders who would write me and say with this budget we're going to close the schools down. Why are you firing our teachers. The Governor Purdue was up there saying we're going to devastate education. We're going to decimate it, we're going devour it, we're going to destroy education. And it turned out that what we were actually appropriated was 99.8% of what she asked for. But yet, all the prophecies from Representative Glazier and all the others who speak on this thing, is that we're going to have to close the schools down because they were just devastated. And we hear from Representative Queen that we've had devastating cuts to UNC. If I'm not mistaken, we still are number one in the nation in State support for pupil for higher education. There should be devastating cuts like that all over the nation and maybe we would have a great education system. The reality is that at K-12, we have about a 2% increase in spending. On a per pupil basis, about a 1% increase in spending. And if you factor in inflation it's probably zero flat. So let's cut out all of the nonsensical rhetoric about devastating cuts to education. Now I agree on some of the policy issues that the process used by the other body could have stood some improvement. But let's at least talk about the bill before us and not exercise ourselves too much with this over heated rhetoric. [SPEAKER CHANGES] Representative Stam, you should Google my name. Representative Carney, please state your purpose? [SPEAKER CHANGES] To speak on the bill. [SPEAKER CHANGES] You're recognized to debate the conference report. [SPEAKER CHANGES] Ladies and gentlemen of the House, I have been in this House, you know, I'm in my 11th year. This is my first budget to stand up and speak on. And I wasn't going to do that today. But all of you didn't have your chairs turned around and watched...

As the lady cried out in the balcony I did. I saw her. I saw what happened when she walked outside of that door. She’s on a walker. She’s elderly. I heard frustration, pain, fear from someone I don’t know her. I don’t know her. But she came here today to listen to us in the Peoples House. And somehow, I feel like, and yes I’m on the budget before someone stands up and says stay on the subject. Because this budget is about education. The biggest portion of our budget is education. Medicaid, Health and Human Services. The People’s House. Representative Stam just said the policy that was in this, that is in this budget, he had some concerns with. You’ve heard that mentioned before. We have in this budget the Excellent Public Schools Act. We have never debated the Excellent School, Public Schools Act on this floor. We didn’t last year, we didn’t this year and it’s in our budget. And it’s a huge reform and a huge change. And the educators in the state and I feel that that, as a former educator, up there who still feels just as passionate today about those children that are just coming into the system. And it hasn’t been debated. We just passed, you all just passed tax reform. Not revenue neutral. A 2.5 billion dollars we’ve got to make up for in four years. And yeah, we are turning and saying to teachers this year, it’s in the budget next year a little bit of a salary increase.A little bit next year . Not this year. How much longer can you expect the people like the lady in our gallery to sit back and not start crying out? We’re frustrated. We’re afraid. There are people living on far less than all of us are up here are making. We go home to comfortable homes, thank God for that. But look beyond your front door, your front seat, your seat up here. We came here because people back home voted for us and said, go up there and take care of our, of us. There has been an outcry, are we listening? I have a feeling when we all go back home, forget emails, those aren’t people’s faces in our faces . When you go to the church and go to the grocery store. Once this gets out you’re gonna hear, we’re all gonna hear more and more and more. Education is the foundation for good solid jobs in this state. The future. Everybody knows that. Democratic, Republican. Public. Excellent Public Schools Act. Not debated. Where are we going with it? Who’s going to benefit? There’s a lot in this budget that a lot of people not in public schools are going to benefit from. I’m frustrated. I know that some of my good friends on the opposite side are frustrated with what’s in here. If we don’t like, many years I’ve sat in here and heard let the Senate fix it. Well they blew it up. And we’re now going to fix it? Where have we got to go? Why aren’t we taking the time to fix it? We can. Where’s the will? I ask you vote no [SPEAKER CHANGES] Representative Burr, please state your purpose. [SPEAKER CHANGES] Speak on the conference report [SPEAKER CHANGES] You’re recognized to debate the conference report [SPEAKER CHANGES] Thank you, Mr. Chairmen. Members, you know I believe that we have before us a budget that is a conservative budget that spends the tax payers money, their dollars that comes out of their wallet, wisely. This effort, this budget continues our effort to ensure

We created an environment for private sector job creation through making wise, yet in some cases difficult decisions. It's about prioritizing, creating a priority of what we need to fund and funding it correctly. We don't have the luxury of past times, where you had all the money in the world and you could just throw money at everything. We're not in those times any more in this state. We're not in those times in this country. We've got to make difficult decisions and we've got to fund those things that need to be funded and we've got to make sure that we do it right. I heard mentioned earlier, this mindset, this idea that we're cutting Medicaid. It should be pointed out, if you open your budget and look at page G12 and G13, there's over a billion additional dollars going to Medicaid state dollars, going to Medicaid in North Carolina over the biennium. That's just state dollars. That doesn't include the federal dollars that will come along with it. There's a substantial amount of additional money going for Medicaid in the state of North Carolina. We're funding, as Representative Avila mentioned, a statewide telepsychiatry program that we haven't had in this state to, again, help address mental health needs. We're funding additional psychiatric beds in this state, something that I can tell you even in the good times when the democrats were in charge, they were cutting the number of mental health beds in this state. Even in the difficult times that we've had over the last three years, Representative Dollar, Representative Avila, Representative Hollo and many others of us in this chamber have worked to strengthen mental health in this state and to fund those priorities. And we are doing that, funding those beds, by helping to put money in for the expansion as we see the new hospitals coming around. We have funded an additional 2,500 Pre-K slots, making sure that more children are able to receive that opportunity as we work to improve early childhood education in this state and make sure that it's focusing on children that are truly at risk. I've heard mentioned rural funding and people concerned with what they see in terms of how we're funding rural North Carolina in infrastructure. I can tell you that I feel very good with the plan that we've laid out in the Conf Report for funding the Rural Authority and the Water Infrastructure Authority. We're going to see more money put into rural North Carolina and through the new Rural Authority that is in place, we will have members from across the state that are going to come from rural counties, that are going to represent those areas and we're going to have...We have the assurance to the ______ who sits in there that every positive thing that you could've seen, the quick response that you may have gotten out of the Rural Center, you're going to see that same quick response out of the new Rural authority. We will continue to monitor and make sure that that is the case over the next year and if there are issues, we will address them. But I'm confident that there won't be issues with that and that we will get those quick responses as we move forward. In terms of the Water Infrastructure Authority, that is targeted towards tier 1 and tier 2 counties. We're going to make sure that rural counties have the infrastructure in place that they need so that they can recruit jobs to the rural areas of North Carolina. We have added an additional facility in this state that will focus on training law enforcement officers, something that's been an issue for a number of years. We've not had a centralized location to train correction officers and others, and we have put that in place in this budget and are building up a facility at the old _______ Youth Camp to make sure that we've got a place...to make sure when those correction officers are going into those facilities that they're trained and they’re ready to go to work on Day 1 versus going in there and sitting on their hands for months at a time. And we're going to make sure that they're trained. We're tripling the size of the Tarheel Challenge Academy through this budget, making sure that more kids who potentially are at risk and are dropping out of high school have an opportunity to go back and to succeed and to be productive citizens in the state of North Carolina. I think there's a lot of things that we can be proud of in this budget, including funding additional magistrates for rural counties, making sure that those counties that are down to three could be bumped back up to at least four magistrates to meet capacity and to make sure that law enforcement has a magistrate there to help them, and also probation officers to meet needs across the state to their capacity. We’re doing those things that are needed to make this state run well but make sure that it runs efficiently. Again, it's about prioritizing and making sure that we're focusing on those things we truly need to do. At this time, I believe, this is a good budget, a good Conf Report that meets those needs and I would encourage your support [SPEAKER CHANGES] Representative Larry Hall, please state your purpose.

On a conference report. [SPEAKER CHANGES] You’re recognized to debate the conference report. [SPEAKER CHANGES] Thank you Mr. Chairman. I won’t be long because the hour is waning and many of us will have the opportunity to go enjoy the fruits of the labors of those who came before us. We’ll drive over those highways and enjoy the infrastructure that North Carolinians made years before us, made sacrifices to make sure it was in place. And we’ll go walk under the trees and enjoy the shade, for those who planted those trees in anticipation of us. But you know, it’s going to be pretty hard when you go to the beach, and your children are following, your grandchildren. Because you see, you’re not going to leave any footsteps in the sand. You’re not going to leave anything for them to enjoy. You’re not going to leave a tradition of sacrifice and provision for your fellow man. You’re not going to do that because you have this philosophy in this budget that says let’s just pay cash for this quarter. Let’s not invest for the future. Now I would dare say virtually everyone in here has benefitted from the state of North Carolina. Not just from private businesses that have enjoyed once again those infrastructure items I talked about. Not from private businesses that enjoyed the intellectual capital, that provided the researchers and the technicians that attract those businesses in North Carolina. The tax base that it generates. I would say that everyone in here in some way, form or fashion, has benefitted from that. And then for us to say we’re so conservative, we have a conservative budget. I heard someone say that. Well, let’s talk about quickly what we’ve done. We’ve cut the classroom teachers, the teachers’ assistants, increased funding for vouchers, reduced the instructional support personnel. I don’t think you’re going to be able to go into any community of this state and find people who are going to say it was our aspiration, and someone said this budget reflects the aspirations of the state’s citizens. You’re not going to go into any community in this state and find people who say yes, I want my schools to have less ability to produce good citizens for our community. Yes, I want my children, the neighborhood children, the children that live in my neighborhood no matter how fancy it may be, that go to public school, I want them to have less opportunity, less support in school, less ability to achieve. I don’t think you’re going to find those neighborhoods in North Carolina and I don’t think this budget is the aspiration of citizens of North Carolina and I certainly want to dispel that myth. If the goal of this budget is to have a well-educated, safe and healthy citizenry, which is another statement I heard, we failed on all three accounts. We start out saying the goal of this budget is to have a well-educated citizenry, and then we demonstrate our priorities by having the cuts we have. It may not be laughable, because it’s so sad. But it certainly shouldn’t be our effort to put that forward to the citizens of North Carolina. They’re not going to buy that. Your money goes where your priorities are, whether you like it or not. You want to have a market-driven economy? You invest in the market where you get the best returns. That’s in the citizens and the future of North Carolina. That’s in our education system. It’s not in some wild-eyed scheme that says we’re going to give you extra money after you’ve come to North Carolina, and become fat, dumb and happy off of the benefits we’ve provided, by giving you a workforce, by providing an environment where you can thrive as a business, and you’re going to take your profits and send them offshore, wherever. That’s not providing for the future. If we’re going to have a future, we have to have a future workforce. We have to have future innovators. We have to invest in North Carolinians. Unless we’re just going to be a stop along the way for four national corporations and big businesses to just stop by to get tax cuts. The issue of telling teachers that you know, we’ve got a reserve and so maybe in the second year, yeah, yeah, that sounds good. I’ll say that. Maybe in the second year we’ll get you a pay raise. And what I want you to do is take that maybe and go pay your mortgage or maybe

you can take it and invest it and get a return on it. Or, maybe not. Most likely not. You won't buy any groceries with it, that's for sure. You won't buy any gas with it, that's for sure. You won't get out the door of any store with a maybe. We're talking about supporting education now. Today. I had a friend tell me today, he said, you know, life is short. He said life is short, you'd better enjoy it. You'd better make a difference while you have the chance. So, what we've said now, and I've said this when the budget that passed out of the House came, I said I only ask one thing for the citizens of my district, District 29, and I get elected by the same number of registered, voting aged population that you do, they deserve the same respect. I engaged in a process, 2-1 margins on every committee. You all earned that right to pass that budget. But I ask just one thing on behalf of the people in my district in North Carolina, I ask that you not go sell out. I ask that you stand by the budget that you said you were faithfully creating. I asked that, that’s the only thing I asked. I said look, you won the election. You won the right to make the budget. You have the responsibility now to carry it out. I asked one thing, I said don't go in there and roll over on the citizens of North Carolina, who trusted in this process. Don't go in there and sell us out. Because we trusted in a process and worked through it, and now we've got a bill we can't even recognize. Looks nothing like what you sent over there, and now someone is saying we'll fix it later. This is later. This might be as late as it gets for some of you. This is later. Well, let's put it off till the last three days of session, and then say well we'll come back later, we've got a reserve, we'll fix it. Well, first of all, you don't have a big enough reserve, and second of all, you're going to be the same people, sitting in the same seats, pushing off the same decision, avoiding the same responsibility, and making a false promise to yourself. You made a budget. You didn't fight for it. This is not it. It's back in front of you. Fix it. Don’t come back in two years and fix it, don't come back in six months and fix it. You're getting paid now. You went through the process, you said this was what was best. How about upholding the honor of this house. How about upholding the honor of the oath you took to represent your citizens. If you believe in what you did, in developing your budget, why can't we prevail upon you to stand by yourself now? Why can't we prevail upon you to stand on your own principles? I heard a lot made about eugenics being in this budget. Should have been in the budget long ago, yes. Now, eugenics was about the physical destruction of people's bodies. This budget, by the stranglehold it puts on education, effects the same principle on the minds of our citizens going forward in the future. And we won't be able to pay restitution for that. There won't be any reparations. There won't be any survival. There won't be an opportunity, because no one will even think enough to say something wrong was done. Because we won't have the intellectual ability, the intellectual capital sufficient to do that. So I appreciate that someone said that eugenics is in this budget. Remember all of you came through North Carolina's education system at a time where you were taught to think about your fellow human being. Taught to think about righting the wrongs of the past. And that's the only reason it got here this time. But you're setting us on a course where we won't have children who can think. We won't have educators who care, and we won't have a North Carolina that we'll want to live in. Now, I know that I said that I'd be short, but maybe I, like you, have changed my mind. Finally, I want to talk about this environment for the private sector. That we're supposedly creating an environment for the private sector, and the private sector is going to save us from ourselves. The private sector wants well trained employees. They want well trained technicians. They want people who can think, and imagine, and create. And that’s not the budget we have for education. We've let our children down. We've let our grandchildren down. We let the institutions of this state that we drew on, and

To achieve our success on, we have let them down. We have given nothing back in this Budget. And every morning when you get up hopefully and you look in the mirror and ask that question "What have i given back to North Carolina". We know what you have taken, we know you are successful, we know you have benefited from those sacrifices. And I hope no one in here thinks they made in on their own, I hope no one is that delusional and they went to the university of North Carolina and they build the whole ??. I hope they don't believe that they were the ones responsible for the instructors and for those suppliers and so forth been there. I hope that you realize that you are a part of a greater North Carolina and you do your part to keep it going. I ask you to show some courage again, I asked before and we see the results. but I ask again because I know we believe in redemption and we believe in second chances and second chance is here now. Do the right thing on this budget, Vote No and take it back and be true to yourself. I am not asking you to adopt my principles. Be true to yourself at least that would be a step in the right direction. Don't worry about me, worry about you now. And of course you just set North Carolina on. Again I'd ask that you vote against the adaption of this conference's rule. [SPEAKER CHANGES] Representer of Durham, Please state your purpose. [SPEAKER CHANGES] To speak a second time on the motion. [SPEAKER CHANGES] You recognize to debate the conference report a second time. [SPEAKER CHANGES] Mr. Speaker reminds the house of Courage, Principles, Really?! What I have been hearing from those speakers is more of a desire to re write history rather than to make any history. And how much more money do you want? Remember when you left this house, we had a five billion dollar gap. About two and a half in unemployment insurance and two and half to the general fund. We had higher unemployment then we have today. And after all those decades of being incharge with your education policy, with your Governors, with your house and senate. We did the national test show we were for fourth graders on reading and comprehension. 66% were not reading and comprehending at grade level. So how can you can lecture us as "No, you are doing it wrong Republicans". What were your results?! And how much more do you want to spend? That's what gets me every time. We are investing more than 20.6 billion dollars in the state of North Carolina from the general fund. If you add up all the money including the federal money coming in, it tops out at 50 billion dollars. So you want to add a couple of more 100 million here and there? That would be nice. But then you want to get back into ?? ??. Do you realize in this state there are savings reserve account, prior to engagement of this budget is 1.1 billion below where it is supposed to be. Do you realize that six year repair and renovation fund is behind 4.7 billion dollars? Do you realize that the medical retirement obligation of this state is in the whole over 26 billion dollars. Let's get real. The only answer i ever hear is, raise more money, raise more taxes, don't cut the tax rates, Keep them high, raise them more. That's not the answer. The answer is reform. The answer is being responsible with the budget. The answer is making responsible investments. Responsible investments in education. Working to improve the policy of this state. Making sure our universities continue to be strong and our communicologists continue to be strong and this budget does that.

...spoke very eloquently on Medicaid. You can't invest more than what we're investing the healthcare of this State. And what we provide in this State. Somebody needs to appreciate that. We're doing the best we can and just as in public safety, we were reforming transportation. Reforming the effectiveness of how our commerce is done in this State. Ladies and gentlemen of the House, this is a good budget. A strong budget. A responsible budget. A reasonable budget. A budget that deals with the realities and not the rhetoric. And I commend it to you. [SPEAKER CHANGES] Representative Larry Hall. Please state your purpose. [SPEAKER CHANGES] Speak on the conference report a second time. [SPEAKER CHANGES] You're recognized to debate the conference report a second time. [SPEAKER CHANGES] Well, I'll say it again. I'll be short this time. Now, we're going to talk about education and I keep hearing, I haven't heard anybody object to the continued refrain about someone wants to raise taxes. And of course that hasn't been said by anyone on this side of the aisle, so I'm not sure where that flight of fancy is coming from. But when we ask for responsible budgeting to be done, we certainly have the revenue right now without making cuts to provide an adequate education to our children. Now some of you, again, folks who are historians and Representative Stam and many others in the Chamber who are constitutional scholars and historians, etc., would know about a little something called the Constitution of the State of North Carolina. And of course it says the General Assembly shall provide by taxation and otherwise for a general and uniform system of free public schools which shall be maintained at least nine months in every year and wherein equal opportunities shall be provided for all students. And so it's a pretty lofty goal and one reason North Carolina achieved this status. And when you read through the constitution you're going to see a lot of things about our duty for education. You're not going to see something that says let's have a comprehensive branding strategy and provide funding for the Department of Commerce to develop a comprehensive branding strategy to support North Carolina. And spend $800,000 from somewhere in this budget. Now if it's tax neutral, it's revenue neutral, it didn't increase taxes to support the budget. But $800,000 magically appears for a comprehensive branding strategy. And then $1.5 million a year after that. Now I don't know who's getting the sweetheart deal. I don't know who's the comprehensive branding strategy expert in here or in this State. I don't know who it is that made whatever move was necessary to get that. That's something we've never had before. It's never been shown to be studied. Hadn't had a committee report on that. Recurring $1.5 million. I don't know who's getting the hook up. Somebody's getting the hook up. Somebody in here knows who's getting the hook up. $1.5 million, I'm going to change my profession and I'm going to be a branding strategist from now on. I need to get part of that action. That is the kind of budgeting that we're talking about that does not serve North Carolina. And what's that? Thirty or forty teachers. First year. Seventy or so teachers the next year. And then recurring, that we're taking out of our classrooms. And we say we need to do this. We have to make this cut. We have to have these 70 teachers go on unemployment or be unemployed and take that opportunity away from our children because we need to have this branding strategy, $800,000 worth the first year and we got to maintained this thing at $1.5 million as far as the eye can see. We got to have this, we don't need education. We can make that trade off. Doesn't require us to raise any taxes. But this is the kind of decision we're making. Ladies and gentlemen, I think you should do better. I think you did better initially. And once again, I'm going to prevail on you. Look at what you've done here. Look at what you've accepted. Look what's been shoved down your throat. Stand up for your people. Stand up for the people who elected you. I hope, once again...

That you’re not going to sell us out as members of the House and I hope you’re not going to sell out your voters who expected you to come up here and do better than this. I don’t think they’ll see any benefit from this branding strategy. I don’t think they’re going to see the 800,000 dollars back home. I don’t think they’re going to see the1.5 million on a recurring basis. But I know the’yre going to see the effect of not having teachers in the classroom, not having instructional supplies and not having [SPEAKER CHANGES] Speaker? [SPEAKER CHANGES] Representative McElraft, please state your purpose. [SPEAKER CHANGES] I wonder if Representative Hall would yield for a question? [SPEAKER CHANGES] Representative Hall does the gentlemen yield? [SPEAKER CHANGES] I’d be glad to yield when I complete my statement to the gentle lady. So now, you have the opportunity to quantify it. If you ever wanted to know, how do you fix this in your mind? You think about the teachers that you’re going to lose in your districts and then you think of this branding strategy that’ll be like, as they say, pornography, you’ll know it when you see it. You don’t, [SPEAKER CHANGES] The gentlemen’s time is expired. Does the gentlemen yield to Representative McElraft? [SPEAKER CHANGES] I’ll yield to Representative McElraft. [SPEAKER CHANGES] Representative McElraft, does the lady wish to state her question? [SPEAKER CHANGES] Yes, Mr. Speaker. I just wanted to ask Representative Hall if he understands that the branding was asked for by Commerce so that they could market the state of North Carolina for jobs. It’s all about jobs and do you understand that those jobs than do bring in taxes which will then hire teachers. If we don’t have our jobs in North Carolina do you understand that we won’t have enough money to pay teachers and that’s what the branding strategy’s about. [SPEAKER CHANGES] Well, if I can respond Mr. Speaker? Well, I certainly appreciate the fact that the Department of Commerce asked for a honeypot to dip out of and again I don’t know who’s getting the hook up for it. But I do challenge the idea that the Constitution anticipated that we would create in some other entity of state government the responsibility to fund and pay for public education. I do oppose the idea that we will say we’ll create some other jobs and then that will create some other revenue later on that then we’ll start to spend on our public education. I think the constitution anticipated that we would pay for our public education as we go. That we would make the sacrifices because it was so important they put it in this Constitution. Every state doesn’t have that responsibility, North Carolina has it in our Constitution and it’s been our saving grace to this point. But I think, and I appreciate your question, because you have shown the creativity that people now have in order to get around their Constitutional responsibility to support education. [SPEAKER CHANGES] Further discussion, further debate. If not, the question before the House is the motion to adopt the Conference Report for Senate Bill 402. All in favor vote aye, all opposed vote no. The clerk will open the vote. The clerk will let the machine count the vote. 66 have voted in the affirmative, and 52 in the negative. The Conference Report has been adopted for Senate Bill 402. The Conference Report remains on the calendar. Representative Shaeffer is recognized to send forth a Conference Report. The clerk will read. [SPEAKER CHANGES] To the President of the Senate, Speaker of House Representatives, the Conference report resolves the differences between the Senate and the House Representative on House Bill 937, or bill entitled, an act to increase penalties. The conferees recommend Senate and House representatives adopt this report. Conferees for the Senate. Senator Newton, Chair. Senators Harrington, Brock and Randleman Conferees for the House of Representatives, Representative Schaefer, Chair. Representative Burr, Faircloth and Cleveland. [SPEAKER CHANGES] Without objection, to be added to today’s calendar. Representative Glaizer is recognized to send forth Conference Report. The clerk will read. [SPEAKER CHANGES] To the President of the Senate, Speaker of House Representatives. The Conference report resolves the differences between the Senate and the House Representatives on Senate Bill 683, a bill entitled an act to create a safe harbor for victims of human trafficking for prostituted minors, modify the membership of North Carolina Human Trafficking Commission. The conferees recommend Senate and the House representatives adopt this report. Conferees.

the Senate. Senator Goolsby, Chair. Senators Barringer and Kannaird. Conferees for the House of Representatives, Representative Glazier, Chair. Representative Condrad, Davis, and McGrady. [SPEAKER CHANGES] Without objection, to be added to today’s calendar. [SPEAKER CHANGES] Mr. Speaker. [SPEAKER CHANGES] Representative Moore, please state your purpose. [SPEAKER CHANGES] Motion pertaining to today’s calendar. [SPEAKER CHANGES] The gentleman may state his motion. [SPEAKER CHANGES] There was another conference report that was read in earlier today. I believe it was for Senate Bill 337, but also ask that that be added today calendar. [SPEAKER CHANGES] Would the gentleman state the subject matter? [SPEAKER CHANGES] I believe its the NC charter school advisory board. Conference report on that. It was calendared for tomorrow, but I think the thought was to try to dispose of as many of these bills today as we can. [SPEAKER CHANGES] Representative Moore, the 337 is on the calendar. That’s correct, there was one withdrawn and I guess procedurally, without objection will be added to today’s calendar. Members, we do intend to dispose of other bills on the calendar and three conference reports or two that were added and one that was reintroduced, but the Chair is kind of looking at the will of the body to maybe take a brief recess. The clerk tells me don’t do that just yet so the clerk will be at ease. The clerk’s never at ease, but the House will be at ease. Ladies and gentlemen, apparently there was a technical problem with the server on the budget conference report. We’re just trying to confirm that we did record it electronically, that’s what we’re holding off on, then we’ll take a brief recess. We have confirmed that the vote was recorded. Ladies and gentlemen, we will take an almost 30 minute recess. We will come back at 5:45. Ladies and gentlemen, if you’ll wait a moment. The rules Chair will be announcing a rules meeting in the recess so we will do a 45 minute recess, we’ll reconvene at 6:00. [SPEAKER CHANGES] Mr. Speaker. [SPEAKER CHANGES] Notices and announcements, Representative Moore, please state your purpose. [SPEAKER CHANGES] Mr. Speaker. The House committee on Rules, calendar and operations will meet immediately after recess down in room 1228, and also, if I can make a request, Mr. Speaker, whenever we go into recess. If we could recess subject to messages from the Senate and receipt of conference reports, committee reports, the whole list, essentially. [SPEAKER CHANGES] The House will be in recess subject to ratification of bills and resolutions, receipt of messages from the Senate, conference reports, receipt of committee reports, re-referral of bills and resolutions, appointment of conferees. We will return at 6:05 PM. [SPEAKER CHANGES] Mr. Speaker. [SPEAKER CHANGES] Representative Glazier, please state your purpose. . [SPEAKER CHANGES] To see if Representative Moore would yield for a question. [SPEAKER CHANGES] Representative Moore. [SPEAKER CHANGES] I’ll yield. [SPEAKER CHANGES] The House will come to order. [SPEAKER CHANGES] Thank you, Mr. Speaker. Thank you, Representative. I wonder if you could just tell us what’s on the calendar for rules. [SPEAKER CHANGES] We’re going to continue with the bills that weren't reached this morning and we have added a bill that’s going to be made into a studies bill. We may or may not, I mean as you can see it’s pretty short. We’re going to keep plowing through what we have. [SPEAKER CHANGES] Thank you very much. [SPEAKER CHANGES] The House will be in recess until 6:05 PM.