State News

House spending plan heads to full budget panel

Posted June 2, 2010 4:01 a.m. EDT
Updated June 2, 2010 5:17 p.m. EDT

State budget

— The North Carolina House's largest committee on Wednesday considered a spending plan for state government that attempts to preserve more teaching jobs with lottery profits.

The House Appropriations Committee listened to details of an $18.9 billion budget for the year starting July 1. That's about $100 million less than the Senate budget approved two weeks ago.

The budget proposal was read before the full House Wednesday afternoon, setting up possible votes on Thursday and Friday.

The House plan uses about $90 million more in lottery money to keep teachers hired in primary grades. It also includes no new broad tax increases - just like the Senate.

The House budget provides mostly targeted small business tax breaks. The Senate plan reduces the income tax rate for those firms.

The proposal likely will include contingencies to cut another $500 million in spending if Congress doesn't add stimulus-related Medicaid funds back to a jobs bill the U.S. House passed last week. Lawmakers in North Carolina and other states had been counting on the stimulus money to plug holes in their budgets.