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Senate | June 17, 2015 | Chamber | Senate Session

Full MP3 Audio File

Senate will come to order, Sergeant-at-Arms to close the doors, members will gather their seats. Members and guests in the gallery please silence all your electronic devices. Leading the Senate in prayers, Reverend Peter Milner, Senate Chaplain. All members and guest in the gallery will please stand. Let's pray. Almighty God, Lord preside over all that we do here, we acknowledge our dependence upon you as the creator, the ruler, the father, the judge, the sustainer, and today we need to hear from you. Intercede here Lord, pitch a tent here in our hearts, in this space. Give us the imagination to see what you see, to turn our course according to your heavenly design. Thank you again for calling us here to be servants in the service of others. And it's for Jesus' sake we pray, Amen. Senator Berger is recognized for a motion Than you Mr. President. The journal of Tuesday June 16th 2015 is been examined is found to be correct, I move that we dispense with the reading of the journal and that it stand approved as written. Objection the journal for June 16th, stands approved as written. Senators we have a leave of absence granted today for Senator Barefoot. Mr. President. Senator Apodaca what purpose do you rise? Motion relative to calendar. Senator Apodaca has the floor for a motion Thank you Mr. President, members house bill 289 NC money transmitters act is on today's calendar. Move that it be removed and set for next Tuesday Objection so ordered. Thank you Mr. President. Mr. President also a motion. You have the floor senator. Rules be extended to the end of staff to be allowed to join the members on the floor during this session. Senators, we do have a Nurse of the Day with us today the Demetria Craig of Chapel Hill is here. Nurse Craig, please stand and be recognized, thanks for joining us today. Senators, upon the motion of Senator Smith of Columbus and Robinson County, the Chair is happy to extend courtesies of the gallery to the North Carolina Association of Teacher Assistants, Lacey Atry[sp?], Michelle Ivy, Francis Atry[sp?] William Johnson, the State incoming president Regina Davis, Emma Walker, Candice Herring, Chris Brown, Marjorie Moore, Andrea Cranfield, Donna Thompson and Teresa Sawyer, the State Teacher Assistant of the Year. If you're with us in the gallery please stand and be recognized. And so, it's upon the motion of Senator Glass Robinson of Guilford county the chair is happy to extend, courtesy of the gallery through recent high school graduates of Guilford county for the third annual [**] graduation recognizing the 31, 000 [**]undocumented students in our state. If you're with us today, stand to be recognized. Upon the motion we have Senator Sanderson and the Senate Chaplin. The Chair is happy to extend courtesies to the gallery to Dr. Andrew Peterson, Vice President for Education, Innovation and Global Outreach with Western Seminary. Dr. Peterson if you're with us, please stand. Upon the motion of Senator Daniel Bucuoni, the Chair's happy to extend courtesies of the gallery to Mr Cordy Burd[sp?], Mr Stoney Story[sp?] and Mrs Jennifer marky[sp?] with the North North Carolina Home Donors, please stand and be recognized if you're with us today. And upon the motion of Senator Daniel Bucuoni, the chair is happy to extend courtesies of the gallery to Mr Paul Simpson, in spring William Bud[sp?] of Burke county 4H  if you're with us please stand and be recognized. Ratification of bills clerk will read. Enrolling bill, enrolling clerk requests the following bill duly ratified for presentation to the governor. Senate Bill 682 in an act of limit use of

contingent base contracts for audit or assessment purposes, and the following bill duly ratified properly and prepared for presentation to the Office of Secretary of State. Senate Bill 218, an Act removing certain restrictions on satellite annexations for the Town of Franklin, in the City of Archdale, and to remove certain described properties from the corporate limits of the town of Murphy. Senators that takes us into our calendar for the day. Public Bills second reading roll call, House Bill 97, Clerk will read. House Bill 97, 2015 Appropriations Act. Senator Brown is recognized to speak to the bill. Thank you Mr. President. First of all, I want to thank the staff as we work through this budget, and contently amazed at just how hard they work, how confident they are and just amazed again, the talents that they have in helping us putting this budget together. Also I want to thank my Chairs, Senator Jackson and Senator Harrington for long hours it took for us to put this together our sub committee chairs, the same, a lot of hours put in to put these budgets together. With that I'll stop my remarks. This marks our third opportunity since 2011 to develop a two year budget for the people of North Carolina. Four years ago we went through this process under very different circumstances. Back then, we had inherited a record $2.5 billion budget deficit because of some irresponsible decisions from past state leaders. But since that time, we've worked very hard to avoid repeating the mistakes of our predecessors and found responsible budgeting decisions, major tax reforms and historic tax cuts implemented over the past four years, we now have a $400 million surplus this year. Today I'm proud to talk about a Senate budget that maintains our spending discipline, maintains our commitment to pro-growth tax reforms, and continues the policies that help us give a multi-million dollar surplus. This is a balanced budget that spends $21.47 billion. It includes an overall increase of about 2%. It keeps State government spending in line with population growth and inflation. It also comes within less than a 1/4% of the Governor's proposal. This budget is structurally sound, sustainable and protects North Carolina's long term fiscal health. It uses recurring revenue revenue for all recurring expenditures. It adds $500 million to the Savings reserved to bring the total held in the Ready Day Fund to $1.15 billion. It provides $300 million for repairs and renovations for State-owned facilities that's far more than any other year in recent memory. It includes a medicaid risk reserve to address potential liabilities and provides 330 million to fund the transition for medicaid reform. It adds funds for all agencies to actively budget for workers compensation and provides for a $5 million work compensation reserve to pay old claims. And it makes good on repeated promises from state leaders of both parties to end the transfer of hundreds of millions of dollars from the Highway fund, to the general fund, to ensure that money is finally being spent on building and maintaining safe roads and bridges. also recognizes that a major reason we have the surplus, is thanks to the families and businesses that helped grow the state's economy. That's why it provides significant tax relief to them, and reduces the personal income tax for more than $3 billion for over the next five years alone. And an incorporates the senate's comprehensive plan to make North Carolina more competitive for new jobs. Finally, it smartly invest in public education. It talks steps to ensure that highly qualified teacher are at the head of every classroom which is proven to have the greatest positive impact on student achievement. It fulfills the commitment to increase starting teacher pay to 35, 000 dollars, which will make North Carolina a region leader and help us recruit the best. and brighest to the teaching profession. And it increases funding for classrooms teacher positions to reduce the class sizes in kindergarten third grades. This budget had 6, 756

new teachers over two years. You know voters expect us to keep our promises by setting our priorities, living within our means, and letting our citizens keep more of their own money, I think we can say we've done just that. Those are the highlights, and now I'll turn the floor over to Senator Jackson to explain the senate's plan for salaries and benefits. Senator Jackson you're recognized. Thank you Mr. President. Members, in our salary and benefit package in this budget, we looked at it long and hard, and our budget bills on the proposals offered by the House, and our Governor to create a package that we believe will help North Carolina move and attract, retain highly effective employees. Our salary adjustment fund sets aside $34 million to provide targeted market based pay raises helping to ensure that the State can compete with the private sector for qualified individuals. Our teachers' salaries, our plan fulfills the general assembly's commitment, and promise to increase starting teachers at salaries to $35, 000. It offers a step increase to teachers, assistant principals and principals, and ensures that all classroom teachers are paid for through recurring dollars, and since my time in the general assembly that has never been done. We've used lottery funds to pay for our teachers, and I think we're trying to send the message to the teachers across North Carolina, we believe they're very important to us, and we believe they need funding for the general fund, and not through the lottery. It increases each tier of the teacher's salaries schedule, and provides a 4% salary increase on average. We also maintain the $1000 bonus for our most experienced educators, and our plan ensures that no teacher will make last this coming year than it did last year. Our budget also provides 21.3 million each year to raise community college and structure salaries, it offers a step increased to the state troopers, our courts and our magistrates, and it invests more than $38 million to assist in increasing our correctional officers salaries. On the benefit front, allow budget, the senate budget takes steps to improve our long term financial services by beginning to address the state's $26 billion dollar unfunded liability will re-tally medical and putting new standards in place to further stabilize the state's Health Plan. We believe our salaries and benefit package, represents a balanced approach that continues to make good our promise improve fulfill the state's obligations in a physically responsible manner. And with that Mr. President, I would like to ask that Senator Harrington have explanation on our capital section. Senator Harrington you have the floor. Thank you Mr. President. I'm proud to join my Senate colleagues in putting forward a balanced responsible budget, and in particular, a budget that takes bold steps in the capital area. This budget smartly invests 300 [xx] in renovations, which will be spread equally among our state government and university buildings, an investment that is long overdue, and will address serious deficiencies in our state infrastructure. Take care of what you have and finish what you start is something I learnt while I worked in transportation. It applies equally in the capital area. We've heard the UNC has close to 4 billion in repair and renovatin needs so we have to prioritize taking care of our existing infrastructure, but we must also start thinking seriously about new capital planning over the long term. That's why this budget sets up a new responsible capital planning commission, in the department of ministration to provide better cost estimates for state construction and more responsibly allocate planning dollars to potential new projects. This process will inform future General Assemblies regarding the capital project estimates, while creating a review process to reduce extraneous building cost. We're also investing in serious immediate needs across our government including a $3.5 million for repairs and renovations to the USS Battleship, 5 million for water resource development projects across the state, and funding for serious asbestos related repairs to the General Assembly roof. I will now ask Senator Gunn to discuss some of the incentive pieces of the budget. Senator Gunn is recognized. Thank you, Mr. President. A pleasure to stand before you today and talk about what we're going to do in economic sense in North Carolina. This Comprehensive Economic Development Plan will help all of North Carolina grow and compete for new jobs. it very responsibly stands the tools to create new businesses, and it also answers the governor's

call for a balanced approach by making sure every area in our state is more attractive for job creation. The bill does several things. First it will extent the JDIG Program for an additional two years, and it will also will provide immediately $5 million and one term funding to enable the State Department of Commerce to catch up on their ground awards. This is a really exciting part I think for me, it creates a new economic development tool for attracting major manufacturing projects like automobile and aerospace industries that commit to investing at least $750 million and at least 2000 new jobs for North Carolina. It also adopt safeguards proposed by the House to ensure that job recruitment dollars are administered responsibly, and available through out the entire year. it responds to concerns that our rural areas have received limited support from state in its programs, and by establishing more generous JDIG and One NC Grants to companies that are located in our poor communities. And finally it eliminates the hard cap on incentives in urban counties found in previous Senate proposals as requested by the governor. We think that we have put together a very balanced program for economic incentives to move the state forward, to create jobs, and at this point in time Mr. President I would like to call on Senator Rucho to talk about the changes to our tax policy. Senator Rucho is recognized. Thank you Mr. President and members of the Senate. A portion that I will cover will be issue dealing with the personal income tax. Let's just remember one thing we did the most historic tax reduction for 2014 in the history. And the result of that, we talk about 400 million dollars, what were the real results is we created 1.2 billion dollars more revenue than the previous year. It isn't just about cutting tax rates it's about changing the way we do business away from a income tax based revenue stream to a consumption based pro-growth model which actually rewards savings, investment, job creation and economic growth which is why we came here from the beginning. Under the circumstances that we are today, we're taking our next step dealing with the tax reform package Senator Raven in a few moments will explain some additional parts but I will talk about the personal income tax and some basics pension ladies and gentlemen we will reduce in 2016, reduce the personal income tax rate to 5.5% and in addition to that we'll raise what is the standard deduction, or probably a simpler term the zero bracket, which is the level upon which any taxpayer receiving that bracket or that value will pay no North Carolina taxes. It presently stands at 15, 000 married and filing jointly. This proposal will start at 17, 750 and will between now and 2020 move it to $18, 500, and I'll repeat that's $18, 500 of no tax, there will be no tax liability on that dollars. That is a very important part of what we're trying to do this time as we continue methodically reducing the tax liability on the citizens, and that's the middle class, and the small businesses in the state of North Carolina because in reality that's a regular, large class for them. On the screen that you'll have, there is a sheet that I have on there describing this change, and also the impact on the zero bracket, and if you'll just take a moment to look at that screen, you'll see what the effective rate is, and what that really means is the percentage of what the tax liability is for the individuals going from $20, 000 up to $200, 000, and I'll ask each member in the Senate to pay close attention to the effective rate, and as in somebody that is earning $20, 000 will effectively pay zero income tax. If you look and I'm not going to go through all the lines, but if you look it up to $60, 000 AGI you will see

that, that individual even with the PIP rate of 5.5% will pay less than 4% income tax which is very helpful and if you look between 60, 000 and down you'll see that rate significantly less than the PIT rate, which means the middle class and the lower income individuals have a real plus as far as what this tax package is doing. As we proceed forward with this we'll be talking about itemized reductions, the zero bracket as I mentioned you earlier is what anybody that doesn't itemize, and that is a significant number of the tax payers I believe it's about nearly 75% of them. The other individuals may choose to itemize and in doing so we altered the way we doing this and allow those individuals to be able to take a maximum of $20, 000 under the schedule A itemized issues. It does broaden that ability, it takes up some concerns that were brought in dealing with the medical deduction, and ladies and gentlemen I'll say to you, every single person will have some relief on the medical deduction, but 93% of those individuals will have that problem completely resolved. So that is a step in the right direction of what we're trying to do is have a fair and simple tax system in the State of North Carolina that will be a pro growth economic model to be followed by many other states in the country. As we continue forward, we'll talk about the issue dealing with base expansion and let it be clear as we do base expansion into the service area, and each of us have talked about this on a number of occasions, but as we move into taxing, sales tax on a broadened sales tax based on services. This is not something that just came about in the last two and three years. Going back to the 1950s, each of the governor, the legislature, each of the commissions have said we need to broaden the sales tax base if we're going to be able to meet the needs of the State of North Carolina into the future, and also be able to receive sufficient revenues in a fair manner and not just tax it on manufacturers. As we continue on, we're going to be able to broaden the sales tax base or expand it into installations, repairs and maintenance, veterinary in pet services and in advertising. You all received financial chart during finance that clearly shows what the value was of each of these areas. Another relevant point dealing with sales tax and that is a phase down of the non profit sales tax refunds over a five year period of time which will ultimately leave the cap at $15 million, and what that is $15 million of purchases. And what that also helps as far as non profits is, we will protect the one on the lower level and the others we'll be able to pay their part of the share of the operation of the state of North Carolina. This will be over five year period the time of reflect the exact changes if you look at 2017, 18 and in the like as we move the zero bracket from from 17.5 to 17.75 to 18 and so forth, that $40 million that is saved from the phase-down of the nonprofit sales tax refund $40 each time actually allows the individual taxpayers, the middle class and small businesses to actually more tax relief as at zero bracket is finally raised to $18, 500, and this will be over a five year period of time. The critics in the past have said, when we did that historic tax cut, that our tax cuts would have caused the sky to fall and everything else that would have possibly happened negatively, and in reality we did create $1.2 billion of new money. This tax reduction on the personal income tax will again move North Carolina Carolina forward will continue to see those revenues increase and unfortunately when the

critics continue talking about it they never once said "well may be worked after they resolved the $1.2 billion" they've been quite but the never said they were wrong, and I'll live you with one last comment. There were folks that compared North Carolina to Kansas. Kansas also had some significant historic tax changes and, so the critics will understand clearly, you can't compare North Carolina with Kansas, we did the tax changes, we has surpluses one of the main reason why Kansas did not have succeeded in this effort, is because they never got their spending under control, they continued their excess to spending and ended up with deficits. North Carolina is doing the right thing as Senator Brown alluded to earlier, we're being careful we don't follow the same pathways our predecessors, and we want to make sure that North Carolina remains positive and has an opportunity for prosperity for every individual. This is the critical step in my judgement, and I would hope that everybody would support the tax reduction on the personal income tax. And I believe Senator Rabin will be talking about the next tax issue. Senator Rabin is recognized. Thank you, Mr. President. Thank you, Senator Rucho. I'm going to discuss the corporate tax and the franchise tax proposal in the budget, ladies and gentlemen. The Senate's approach has been that we need to balance the efforts to recruit new business with improving the tax climate in this state for the existing businesses so that they can hire more workers also. On the corporate tax side, this bill keeps our promise to all corporate income taxes by allowing the rate to fall to 4% in 2016 and 3% in North Carolina is already expected to meet the revenue targets currently in place and will trigger these reductions, so we are removing the triggers. This will provide certainty that North Carolina's corporate income tax rate will be the lowest in the south-east, which is a huge factor in decision making process of companies coming to our state and in companies remaining in our state. It also moves to calculate the corporate income tax on the basis of single sales factor over three years so businesses are not penalized for making large capital investments North Carolina. On the franchise tax side, it streamlines the franchise tax process and cuts that tax by 33%. This cut is effectively a statewide property tax, and removes the double property taxation on these industries. And now we will hear from Senator Brown please on changes to the sales tax provision. Senator Brown is recognized. Thank you, Mr. President. It's been most discussion on how sales taxes is distributed across the State, and I'll get into what the bill does as far as that goes. As many of you know right now 75% sales taxes collected at point of sale, 25% is allocated per capita. What this plan will do is phase in over a four year time frame to where 20% will be point of sale, 80% per capita. It also eliminates an adjustment factor that probably should have been eliminated many many years ago where one county receives $1.49 for every dollar it collects, and then you have a county such as Columbus that gets 81 cents for every dollar it collects, a very unfair adjustment factor, it eliminates that. Also as far as how the county distributes to the cities whether it's per capita or [xx] basis, this leaves that exactly as it is today and lets the county in the cities continue to work through that process. Back in 07 when we did the Medicaid swop which was I think everybody would argue at this point was a huge win for counties and cities. We held them harmless, the cities and the counties harmless this does the same, it continues to hold both the cities and counties harmless through that agreement. As far as progress school capital outlet goes under Article 40, 30% has to be used for opposed school capital under Article 42 60%, what this will do it will change that and replace it with a requirement that counties use, reports of this sale tax revenue and distributed for use for public education and community college purposes. Though there is, some counties may not need it for new capital,

so it gives them more flexibility on how those dollars can be spent on education within those counties. And the last piece, for several years we've had an option where counties could levy a quarter cents cells tax through a referendum. This will change that and increase it to a half cent, it will have to be done through two separate referendums, a quarter cent at the time and we'll allow those counties to raise additional revenue which hopefully will help them in keeping property taxes lower in those counties. I think next will be Senator Soucek to talk about education. Senator Soucek is recognized. Thank you Mr President, the guiding principle for our education budget continues to be how do we get highly effective teachers in the classroom to serve our K12, our community college or university students. That is one thing if not the most important things we have in state government is looking into the future, whether it be education, skills, training, workforce development and those are the principles on which we build this budget. We have exceeded now the 12 billion mark when we look at what we fund education in North Carolina. Over 50% of the budget. I heard said if you look in, if you want to find so much priority if you look to check book you see what they spend their money on. Over 50% goes toward education, that's clearly a priority. Even when you look at general fund money being sowly the funding source for our teachers salaries, that shows you where our priorities are I will [**]. Because it's critical to mention again that not only are we just raising the starting teachers salaries to 35, 000 an year. But I should go around the salary schedule we have increased those amounts as well for teachers getting raises their, and reducing class size. Which is going to be putting more teacher in our system in the [**] which has been shown by multiple studies to be the greatest place where class size is effective, and you can have a highly qualified teacher, highly effective teacher in front of those students. Gets them of for the start that they need to for their entire K-12 and university future. I highlighted a few points on the budget as we move along. We're increasing K-12 funding by 453 million, community colleges by 5 million, and UMC system by 160 million. We're fully funding a Roman growth for K-12 community colleges, and the university system. We're going to continue major education reforms as we clarify into law Leandra court ruling, that every child in the State has a constitutional right to receive a sound, and basic education. We're providing $58 million over the biennium for textbooks, and $12 million to fully fund the requirements for the Excellent Public Schools Act as we look at way to achieve with that critical milestone in K-12 will be able to read by fourth grade, which shows the potential for success or for failure right at that age group. We want to make getting to forth grade without critical skill of learning how read. A couple of areas in community college which are critical are, we'll look at work force development. One of the consequences of the booming economy that we're seeing in North Carolina, is that there're greater opportunities for some of our workers, and teachers in the community college system. Through out a couple Nursing, welding, there opportunities for employment in the outside are increasing, but we need their valuable skill to continue to train the workforce for the future. So we've given $21 million dollars in the budget so that community college system can target those critical needs in the structures for workforce development, and be able to pay them to be able to retain that quality instructor for the future workforce development. As well as beginning to fund some of the, some enrollment, which is a continuity in our community college system for workforce development as well as continuing education which has been a critical aspect, a critical request. Couple last items we got the increase support for opportunity scholarship almost $7 million a year, and we had to make some adjustments for our instate tuition for veterans as the federal rules have changed we have compensated and changed, so that our veterans continue to get the support they need for education for GI bills and be able to continue that vital resource with our National Guard and attribute[sp?] soldiers, and finally a funding, we increase funding for the National Guard Tuition Assistance Program for those soldiers, thank you and Mr. President I ask you to recognize Senator Hise to explain HHS. Thank you Mr. President, members of the senate I also want to take a moment just to thank our incredible staff and health of human services, there's no way we could have taken on this lift without the work they've done and also my co chairs Senator Payton, Senator Tucker in this process. I want to begin the Medicaid budget just by referring you to item which is 90 on G21, this is the rebase. If I add those numbers together to you and over this biennium we expect

Medicaid to grow at $800, 760, 000. That is the growth in Medicaid will be more than we spend on general government over the biennium. To put that in perspective for you, you'll hear from Senator Davis in a moment. We have got to control this out of control system and that is why we propose reforming Medicaid in this budget. We propose creating a new health benefits authority that has a fiduciary responsibility to the budget we pay and can eliminate the overruns and uncertainties that we've seen over so many years here in the General Assembly over so many different administrations We also create that we are moving away from the fee-for-service system. No longer will we pay for health care based on how many X-rays you can do, how many nights stay you can do. We will set aside funds on a per-member per-month basis to provide for the entire health care of the individual and allow both manage care organizations and provider led organisations in this state to be able to compete in North Carolina's market and provide those services to recipients. We've created recipient where each recipient will have choice of up to five providers for who they feel will give them the best services and operations. We're also working to bring in this state a functioning health information exchange. The IT service this state so that every Medicaid recipient will have all of their medical records able to be transferred between all of the recipients providers of Medicaid within this state within two years. It is an aggressive timeline, but it's time for us to do this work. We have also provided for an audit of the department each year. We did the first audit, and the full audit of the department in nearly 20 years. We found a lot of valuable information in that audit and it's a process we need to continue. We also made changes to CCNC by eliminating that contract. As we reform the system we now have entities that will be responsible for managing the care of patients, and no longer need a partial coordinating care system within the state, but as a result we put those funds back the providers. We increased rates for primary care doctors by 22 1/2%. We've increased rates for OBGYN by 26% putting those funds actually at the level where services are provided, to make sure those individuals can do their jobs as medical professionals. We have eliminated the certificate of need in this state, it's a big policy change. We no longer believe that bureaucrats are the capacity in control over health care in this state, and we actually allow the market to begin to reduce cost because we have competition between health care providers. Few things outside of Medicaid I just wanted to highlight. We were able this year in holding additional recurring funds to precaid holding child care subsidy and putting in a market rate increase for children 0, one, and two years old that would bring the rate we pay those facilities up to the market rate and I'll tier one and tier two counties. We have increased foster care to age 21, and I thank Senator [xx] for all of her work on this here in the general assembly, so we're no longer cutting people off on the system soon as they turn 18 and making sure they have no keys for success. We've taken the services from the office of the minority hill, and the physical activity nutrition branch, and we've eliminated the administrative calls there and put those funds to actual on the ground services, to fulfill those purposes, not just spend more than 20% of those funds on administration and on department, we've put major investments into the office of medical examiner, nearly $7 million because we've shored that up. So we're not having individuals not even attend the criminal scenes that they're writing reports on, and

so that we can avoid issues like we did in Watauga County where a report because it was not filed and not send back led to other people passing away. The HHS budget was no small lift, we have taken abroad strong stand for how we see that the healthcare and Medicaid and this department needs to function, and I'm proud of the work we did and I thank you for your support, and I ask that you would now recognize Senator Brock to cover the NER budget. Senator Brock is recognized. Thank you, Mr. President. I'm just going to give you a quick highlights of the NER budget. For the Department of Agriculture, we ploughed a straight line and we kept funding strong for it because it is the supporting agency of our state's number one if we go look at [xx] and some of the issues that we accomplished there, we provided 14.9 million in additional funding to the Clean Water Management Trust Fund, provided $2 million for military buffers through the Farmland Preservation Trust Fund, and we put additional 4.8 million in funding over the biennium to our Parks and Recreation Trust Fund. Three economic development in our budget, we appropriated 15.4 million over the biennium to meet the obligation of our JMAC Program. We provided $6 million over two years to support early staged tech companies through our North Carolina small business fund, we've supported job creation in little areas by providing additional $10.8 million to the world economic development division, and we provided an additional $1million of the biennium to the high-point furniture market which in the P Mart North Carolina is equivalent to having or hosting three Super Bowls. For the coastal economy we've provided $16.6 million for coastal dressing needs, an additional funding for our deep graph[sp?] to help our ports to market our products here in North Carolina, across the ocean. We also provided additional money to the oyster and aquaculture development to help our industries there on the coast. One of the bigger issues that we had in our budget is the consolidation of the ports, the aquariums, and the zoo into new Natural and Cultural Resources Department. This move will make sure that we create efficiency in our agency, to make sure that we deliver to the citizens in North Carolina a great time in this area. And also to make sure that what was formally known as [xx] is now a complete regulatory body and let them focus on those issues of keeping our air part of inner streams clean. The and [**] consolidation, I'll jump ahead to IT to talk about what we did in IT. Officers will chair that as well, want to chair that with Senator Hise and Senator Tarte. Then we look for consolidations in our IT that has long been neglected in the state and if we move in here in the 21st century with increased efficiency, a comprehensive strategy, a long term strategy for these divisions. And to make sure that we have a better interaction with our employees in the agency or state employee and the citizens of North Carolina. And I failed to mention the my support of my co-chairs Senator Wade, and Senator Kirk[sp?] in the [xx], and our staff that helped us. Because we have the best staff in the world that helped us put this budget together. And that Mr. President I'd like to turn the floor over to Senator Randleman who will handle JPS Randleman is recognized. Thank you Mr. Speaker, excuse me President. Let me begin by thanking our staff because they have worked with us tirelessly. And also I would like to thank my coach here, Senator Boehner and Senator for Newton. This is a tough process and it takes a lot of work and discussions to get to the point that you actually have a budget. The JPS budget begins on page I-1 and provides an additional of 44 million for the states criminal justice agency. And I'm very glad to stand here today and tell you that we are increasing funding for the court systems rather than cutting funding. Consistently, through out the JPS budget provides to adjust work mans compensation, we have included training for law enforcement and adult correction by funding training facilities and appropriating  use of force training program. Also we have funded the use of force simulators for all law enforcement agencies and adult corrections. We have provided additional funding to purchased State Highway Patrol vehicles and wheels for the State Bureau of Investigation. We begin to address the mental health needs in our State

Prison System by funding 72 additional mental health unit beds at Central Prison. We establish a mental health behavioral treatment unit at a closed custody prison, and provide additional positions at the prison diagnostic centers. We provide funding to expand the bed capacity for adjudicated juveniles, and contracted in state operated facilities. We have a waiting list of delinquent, and undisciplined youth who are going into this facilities, and we need to get those youth off of the street so they won't be reoffending. We have included additional funding for the private assigned counsel fund for the representation of indigent defendants, this is 4.4 million. We have increased the yearly budget for the court's operations, the interpreters, expert witness, state course based on about 4.8 million. The provisions are mostly [xx] or they follow the money, but I would like to call attention to two, the Office of Energy and Defense is being transferred to the Administrative Office of the Courts, and also the AOC is being required by February 1 2016, to establish a strategic plan for implementation of its eCourts Technology Initiative. We are funding the eCompliance, which is a program that the AOC has adopted, and they're ready to roll that out statewide within the next two years, so we have included funding for that, but we do need to have a plan on the table to fund the eCourts Initiative. So Mr. President with that said, I would ask you to recognize Senator Davis to continue with General Government. Senator Davis is recognized. Thank you Mr. President, and ladies and gentlemen of the Senate. First of all I'd like to thank my co-chair Senator Sanderson and our very capable staff. Our total funding for general government is going to increase a little over 1% this next year, and slightly less than 1% the following year. The big things that's happening in general government budget is that the Department of Culture Resources is being transferred to purview of Appropriations Committee on natural and economic resources. Also in all department under our purview we have tried to reflect the workman's compensation reserves to reflect the claims of the last two years, to try to bring them based on reality. First of all I'll like to talk about the Department of Military and Veterans Affairs. This creates and funds a Department of Military and Veterans Affair by pulling in veterans service program from the Department of Administration. And both field and vacant positions from the Department of Administration, from the Governor's Office, from OSBM and Office of State Human Resources. And there're a lot of moving parts there, and if you're interested in any of those you can refer to the budget. I will not mention those individually. Also it provides funding for base closure, and realignment support to the tune of about $1.675 million. Funds the new gazebo cemetery for the two fiscal year that are biennium, and after that the cemetery will be receipt supported. In the Office of Administrative hearing, it adds that the administrative law judge to be located in Lanesville, and the local Government entities are responsible for the clerical staff and for the space. Office of State Treasurer, it funds the ABLE Act which is a federal program similar to a 529 Program that's going to serve our disabled community, and this is very specialized, and the Department of Treasury needs some capable people to operate this program. It provides funding and two positions for the local Government entities. We have some local Government entities that are in real financial trouble, and the Treasurer's Office is and be proactive in trying to address those needs to keep them from falling into default. It provides three positions to upgrade and operate the orderly[sp?] system to address the increasing demands that we have with retirees, there's quite a wave of retirees that we're going to be facing in the next few years. The Department of Insurance, it adds the authority to hire an actuary to assist with our new Captive Insurance Market, and it puts the State Capital[sp?] Program transfer under continuation review. State Board of Elections, it provides an additional $100, 000 non recurring for the continued implementation of the Voter Information Verification Act. It also reduces the operating budget of the State Board of Elections by 2% to reflect their actual expenditures. The General Assembly, it funds the annual required contribution for the Legislative Retirement System. Also, we have administrative reduction to this office of a $10, 000 each year, that was part of the Governor's budget. Office of State Budget Management, it reduces their budget for IT maintenance agreements to reflect actual expenditures.

Also it provides funds for the North Carolina Symphony to a tune of about a million and a half dollars only the difference this year is that's going to be recurring money rather than non recurring. Office of the State Auditor needs some additional money for expert witnesses. They have special audits that require expert witnesses and this helps to fund those. Housing Finance Agency, it provides General Fund support for the Workforce Housing Loan Program and the total funding for each year for this program will be $10 million. The Ethics Commission it provides $50, 000 for our own going ethics commission investigation. Office of State Human Resources provides software funding to create a combined compensation and classification system for state employees. In Department of Revenue it allows the department to use receipt funds for the maintenance and system hardware upgrades to the tag and title vehicle registration system. Also it provides funding to enter into contract with a vendor that will provide tax fraud analysis using the government data analytic center. For the state controller the place that becons position's transfers from the Department of Transportation under continuation review. Also we transfer money from the Flexible Benefits Programs Accounts to a general availability. That concludes my presentation Mr. President, I now would like to refer you to Senator Meredith who will discuss the transportation budget. Senator Meredith is recognized. Thank you Mr. President member's of the senate, I'd like to go over the highlights of the transportation budget, I'd like to first recognize staff thank them for their hard work and also Senator Bill Rabon allow these ideas, and he would not take credit for them but were some of his ideas and I want to thank him for his outside of the box thank you because it has made our transportation budgets one of the best budgets that we've seen in the state. Senator Raven thank you. With that back to the command projected revenues related to the FY15 budget is up 7%, for FY16 it will be 4%, for 17 this money will be to use the additional highway revenue is directed towards maintenance priorities and ports and modernization 139 million targeted to structurally deficient bridges, 70 million is injected into pavement preservation, 67 million is aimed at improving the condition and safety of secondary roads state-wide, 70 million begins the modernization of Wilmington and the Morehead City Ports we will increase the funding for the STI by 334 million, adjust the caps on the town pipe projects, stabilization fund for state A to municipalities. Adjust distribution of the revenue from the motor fuel tax to the tax rate and increase and adjust the DMV fees based on the inflation. That concludes the transportation budget, thank you Mr. President. Thank you senator. Do we have any further discussion or debate? Mr. President. I wish or maybe I should just shut up and sit down. I have an amendment I'd like to run. Senator Jackson you can send forward your amendment. Clerk will read Senator Jackson moves to amend the bill. Senator Jackson is recognized to speak to the amendment. Thank you Mr. President. Members this amendment basically is in our budget and is also in general statute that you can spend $300, 000 agencies can of General Fund money for repair and maintenance. All this amendment is doing is adding the words, they can also spend Non General Fund as well up to the same amount that which will be receipts, and I'd ask for your support. Thank you. Do we have any discussion or debate on the amendment? Hearing none question before the Senate is the adoption of amendment one. All in favor will vote aye, oppose will vote no, five seconds to be allowed for the voting. Clerk will record the vote. Don aye, Robinson, Brian aye, Robinson,  Jackson, Senator Jackson aye, Raven, Harnett aye, Senator Robinson 48 having voted in the affirmative, and zero in the negative amendment, one is adopted the bill as amended is back before the body. Do we have any further discussion or debate? Senator Barringer for what purpose do you rise?

To send forward an amendment. You can send forward your amendment, Senator. Clerk will read. Senator Barringer moves to amend the bill. Senator Barringer is recognized to speak to the amendment. Thank you Mr. President. Ladies and gentlemen, the purpose of this bill is to encourage the partnering of our economic centers with our lower wealth counties. Wake, Dunn and Mecklenburg and the tier three counties will have incentive and the tier one and tier two counties will have incentive to partner with us so that we can make North Carolina an even better economic center. We need to work together as a team. I thought about this long and hard as I was crafting this amendment, and we had had our coaches here, we had coach Krzyzewski and we talked about the wonderful Dean Smith, and the thing that they had going for them is that they create teams and what this bill does will create economic teams in North Carolina. At the options of these areas, they can partner together and if Wake, Durham or Mecklenburg or one of the tier three counties partners with a tier one or tier two counties, two things will happen. First of all, the employment cap will be dropped from 250 to 200. So between the two areas there will be 200 jobs created, and that would qualify for this particular program. The second part of it is, is that 2/3 of the benefit would go to the low wealth counties with 1/3 of the benefit going to Wake, Durham or Mecklenburg or the tier three county. In return or as part of that, the fund diversion of the tier one or tier two county would be applied. So what that would mean is there will be more money for economic development and incentivizing us working together as one North Carolina. I'll be happy to answer any questions you have about this amendment, and I really appreciate your support. Senator Gunn, for what purpose do you rise? Speak to the amendment.   Senator Gunn has the floor to speak to the amendment I'd like to thank Senator Barringer for bringing this forward. I really do think from a practical matter, we will have the situation for you may have one part of your business that could very well be better served in an urban area, but at the same time bring some much needed jobs to some of our rural communities in tier 2 and tier 1. I think this just makes a lot of sense, and I see where it could benefit the entire state, and I would like to appreciate your vote on this. Senator Ford, for what purpose do you rise? See if the amendment sponsor will entertain a question. Senator Barringer, do you yield for a question? Yes, Mr. President. What does partnering look like? Well, it can take many forms and that's a very open-ended question, but I actually got the idea from Currituck and Alamance County working together to bring jobs both to Currituck and manufacturing jobs to Alamance County, and so that's where I got the idea, but it would be a matter of Wake, Mecklenburg or Durham or the tier 3 reaching out and partnering with tier 1 or tier 2 counties to come up with that plan. The thing about it is, I come from Currituck, and Currituck has been in serious economic development business with our Chamber of Commerce and now with our city for as long as I've been there, more than 25 years. We have contacts, we have done this before, we have experience. The tier 1 and tier two counties, many of them are just getting started with this, and one of the wonderful things that this would bring is the synergy between these counties, the tier 1 and the others. Mr. President, follow-up? Do you yield for follow-up Senator? I do. I'm not sure what she just said, but it sounds good. Is that a question? I don't think there's question there Senator. Senator McInnis, for what purpose do you rise? To speak to the amendment. Senator, you have the floor to speak to the amendment. Thank you Mr. President and fellow members of the Senate. I want to thank Senator Berger for bringing this important amendment forward. I represent three counties in the bottom 10% of our state economically. We need jobs in rural North Carolina. We are not eligible for many of the high tech jobs because we're bringing our workforce forward with our community college as well as our high schools. This amendment will allow our tier one counties to partner with the more prosperous metropolitan counties to bring jobs to rural North Carolina. I ask for your support on

this important amendment, thank you. Senator Tucker, for what purpose do you rise? Just to speak briefly to the amendment. You have the floor Senator. Just in answer to my good friend from Mecklenburg County Senator Ford, what I see this amendment meaning is a corporate office could reside in Charlotte and the manufacturing facility can simply be in Union County. So, it's a collaborative effort between counties to be able to have the managing entity in one place and the manufacturing entity in another. Thank you Sir. Any further discussion or debate? Senator Waddell, for what purpose do you rise? Question for the bill sponsor. Senator Barringer, do you yield? I do, Sir. In looking at the bill the way it's written would this in any way be an idea for an equalization of wealth as a result of the jobs that come into these counties? May I? Thank you Mr President. What it will do is it will allow the partnering so that we can share our resources and our expertise so that all parts of North Carolina who choose to participate in this can get themselves on their feet and then we can work together for one North Carolina. Follow up. Senator Barringer, do you yield to a follow up question? I do. Is this a voluntary experience so that both partners share equally int the benefits of what is to be gained? Absolutely, this is just another tool that is out there for our counties to work together to improve our economic situation. It is completely voluntary and I hope that many areas will take advantage of it thank you. Any further discussion or debate on the amendment? Hearing none, the question before the Senate is the adoption of Amendment two all in favor vote aye, opposing vote no, five second will be allowed for the voting the clerk will record the vote. 49 having voted in the affirmative and zero in the negative amendment two, this adopted the bill as amended the bill back before the body. Any further discussion or debate? Senator Brown what purpose do you rise. Send forward amendment. You can send forward your amendment the clerk will read. Senator Brown moves to amend the bill. Senator Brown is recognized to speak to the amendment. This is a very simple move, it's just a technical change and section 32.2 of the budget if [xx] says the report and the date of report, this section needs the national data on the actual report, so thats all it does is give the dates in line. Do we have any discussion or debate hearing none questions for the Senators, the adoption of amendment three. All in favor will vote I, oppose will vote no, five seconds to be allowed for the voting. Clerk will record the vote. Jackson? I. Clark? I. Raven? Tucker? I. I. Mc Kissick? I. 49 having voted in the affirmative, and zero in the negative, amendment three is adopted. The bill as amended is back before the body. Do we have any further discussion or debate? Senator Blue, for what purpose do you rise? Send forth an amendment. Senator Blue, you can send forward your amendment. Clerk will read. Senator Blue moves to amend the bill. Senator Blue is recognized to explain the amendment. Thank you very much Mr. President, and before I comment informing on the amendment. Let me take this opportunity to publicly thank Senator Berger, Senators Berger Brown, Harrington, Tucker and Jackson for coming before our caucus. Last week you gave us a broad overview of where the budget would probably be going in to. Give us an idea of some of the things that might be in it. We found it very helpful. Let me say also that Senator Brown, I think adequately describe the situation that we found ourselves in, four years ago in 2010. When you put together your first budget, the only issue that I would take with it is it wasn't because of irresponsible decisions by prior state leaders, but primarily because of irresponsible decisions by prior federal leaders who helped us set the situation that got us into the washed up recession since the great depression 1930s. Let me say one thing as I address this amendment, and this directed to the 50 people in the Chamber,

minus myself, who can vote on it. This amendment is about something varying something, and I would ask you to just momentarily take off any recognition of me as a Democrat offering this amendment, or who I am or anything else, just close your eyes, and listen to the logic of what I'm going to say, and separate it from the person who's going to say it. This amendment is about a sales tax in Wake County, thats all it's about. Go back 25 years. 25 years years ago and if you had ever heard, or most of you had never heard of the following names which are common place in this county. SAS, SAS we call it. Red Hat, CertiRx, Cree, Quintiles, and even the name on a lot of these computers you have Lenovo. Those are companies that hire 40-50, 000 people in the Triangle Region, and reaching beyond Triangle Region now. 40 or 50, 000 people from companies you have never heard of, and in fact, most of them never got any of these incentives that you're talking about to locate here. Or I could throw in GlaxoSmithKline, and take the numbers up to 100, 000 people that are hired in this region that you never would have thought about 25 years ago. The reason that I say that is this region now has over 2 million people, the Raleigh-Durham metropolitan area, 2 million people. 25 years from now, the demographers suggested there would probably be somewhere in the range of 3.5- 4 million people in this region. So, 25 years ago we created the Triangle Transportation Authority, just 25 years ago. We created ours before Charlotte created the Transportation Authority that subsequently built the trains, and do the transportation down in Charlotte. Mr. President? Senator Apodaca, what purpose do you rise? Senator Blue, I do hate to interrupt you. May I ask Senator Blue a question please? Senator Blue, do you yield? I do. Senator Blue, we're working on that same amendment right now with Senator Alexander, can I ask you if you two would put your heads together, and see if we got it to your liking. I would gladly do that. Thank you. Thank you. Do we have any further discussion or debate? Senator Smith-Ingram, for what purpose do you rise? To debate the bill. Senator Smith-Ingram hold on one second. Can we get amendment. Hold on. Senator Blue, would you withdraw that amendment for now so that we can that off of the or displace it? I do. I'm sorry I thought I'd conveyed that thought. Thank you, Senator. Alright Senator Smith-Ingram, you have the floor to debate the bill. Thank you. In North Carolina, we have 9.9 million people whose lives we must protect. Drivers education protects those lives. Our budget now as proposed eliminates driver education programs, and this challenge we are faced with students having to be taught Drivers Ed by parents. Parents who have their children's well interested mind that don't have the aptitude, the attitude and the experience to be able to fully teach Drivers Ed the way that it needs to be taught, in order to protect these students, to protect the families, protect the millions of peoples in our State, and the millions who will be driving through our State. It is proven, and the evidence shows that, drivers education for novice drivers decreases fatalities, and fatal collisions to the tune of 47% for 16-year-olds, 40% for 17 year olds. Drivers education is important in supporting, and making sure that everyone is safe. For this reason, I'd like to send forth an amendment. You can send forward your amendment. Senator, Clerk will read. Senator Smith-Ingram moves to amend the bill.

Senator Smith-Ingram is recognised to speak to the amendment. The amendment seeks to do three things. First, it will restore driver education requirements for people when they graduate, the driver's licensing system, it appropriates $27 million to DPI to fund driver's education, and it maintains the transfer of driver's education to community colleges in 2016-2017 of this fiscal year. I would like to leave before my colleagues that there was a State who did attempt to have parents to teach Drivers Ed. That State was Texas, and the comprehensive studies I've been able to pull on such short notice, the and findings of over 500 of the young drivers in the statewide survey as well as all of the state corridors has demonstrated that while the parents are highly motivated to be their child's primary driving instructor and have the best interest of their children and mine, as I said earlier these parents having their secret trust in their entire future in one of their most, their greatest asset on earth still with that vested interest in their child doing well are unable to provide the defensive training that new drivers need, as well as an understanding of alcohol, drug use, and let's not even start discussing the challenges that we have faced across the nation with technology and children driving while texting and tweeting. We have adults who drive while using their cellphones. So the challenge for us is that we need to provide adequate driver's education, I commend this amendment to you and ask you to support it so that we don't have the situation where we have those drivers are the only drivers who have the affluence, the money to pay for a commercial driving program, we have parents who don't have licences and who have transportation challenges and may not be able to even provide that training for their students. We are starting these up where we have very low-income families, hard working families who will not be able to accommodate this. Let's put this back where we have had it, it has worked well, I understand the need to move once from, we no longer want to break those funds from the highways but we certainly can find the funding so that we can protect nine million people in this state and the million of others who would be coming through. Senator Hise for what purpose do you rise Senator Brown for what purpose do you rise? Thank you Mr. President, to speak to the amendment. Senator Brown you have the floor to speak to the amendment. Senator Smith-Ingram I appreciate you bringing this up and I can assure you there was a lot of debate on this particular issue. One key piece as discussed is upon the same place now has about a 40% success rate, and for us that was an alarming statistic. And also if you look across the LEAs it was pretty obvious that they were being handled in different manners just no consistency at all, and so the proposal in the budget funded for a study to see if the community college could take over this program.community college now does motorcycle training, heavy duty truck training, they're all involved in this category, also the budget lifted the cap that's in place now to get through this particular year. Senator Hise run an amendment that gave a lot more flexibility to how we can get through this particular year, we're trying to address the issue but again a 40% success rate is unacceptable we think, so I'm going to have to ask that you do not support the amendment as we try to get our community college involved. Mr. President. Senator McKissick for what purpose do you rise? Speak on the amendment. Senator McKissick has the floor to speak to the amendment. I stand to speak in favor of this amendment, I think it's a common sense amendment. We've got 58 community colleges, we got 100 counties, a lot of people are separated from our community colleges you don't take them wild to develop program, a comprehensive one. It's not as convenient as it would be in your local high school all our counties have at least one high school, most of them many many more, we need drivers education accessible, we need it hands on, we ether need it at low cost or no I'm concerned not just about those kids who want to have that rights of passage to adulthood, but I'm concerned about that single mom who has two or three kids, and one of them desperately needs to get that licence so he can provide supplemental income to

put food on the table, pay the rent. We need to make certain that when we institute policies in this State, that it doesn't hurt the least among us. We need to be sensitive to the fact that it's not always easy to get that community college campus, and get that hands on training. If we get the success rate to stand at 40%, we certainly need to do better, but that's about instituting meaningful significant changes programmatically so they get quality of driver education that they need. Not to come up with a program for only those that might be able to spend 300 more or able to get Driver's education in this State. Senator Hise, for what purpose do you arise? Said Senator Smith- Ingram would yield for question. Senator Smith, do you yield? I do. Thank you Mr President. Seriously, I understand what you're trying to spin the funds on, but if you could give me some clarity on where you're taking these funds from as I'm looking through the mail, it just says you will arbitrarily pick tax reductions instead we'll just have a less reduction in taxes, or we'll increase more taxes from that without a real set of what you've done with rates, or what we've done with those operations. So I was wondering if you could give me an explanation of that. Okay [xx] Senator Woodard, thank you.  Senator Clerk. If we could have somebody help Senator Smith-Ingram with her microphone, trying to get somebody from staff trying to get the microphone unstuck please that would be helpful too. I'll do my best to answer your question, but as the amendment shows in page 5 line 35, as well as page 6 and line 6, what we are attempting to do is hold off on the corporate income tax triggers. I do believe that we can just hold off a little bit on those tax satisfies for the huge corporations, and be able to provide that funding that is necessary for our students, so that our students can receive a proper education of how to drive safely, so that it saves their lives and the lives of many people. And I know we said before only 40% but one life is worth it to me, and I hope it is to all of our colleagues here. Senator thank you. Do we have any further discussion or debate on the amendment hearing none, question for the senate adoption of amendment five all in favor will vote Aye, opposed no five seconds to be allowed for the voting, the Clerk will record the vote. Alexander, Senator Alexander, 16 having voted in the affirmative and 32 in the negative, amendment five fails, the bill as amended is back before the body. Senator Sanderson, for what purpose do you rise? Send forth an amendment. Senator Sanderson, you can send forward your amendment clerk will read. Senator Sanderson moves to amend the bill. Senator Sanderson is recognized to speak to the amendment. Thank you Mr. President. Members of the Senate, under the general government section of our budget the section 27.3 there's a process that has been put in place to help streamline our seized vehicle disposal program. The intent of the this streamlining was to ensure that of the more the money realized during the sale of these vehicles, reverted to the local schools systems and not be spent on storage and towing fees, this amendment will make sure that any financial institution who may have a link on that vehicle that is being seized has enough opportunity to be notified that the vehicle is being sold so that they may be a part of the sales process, and I ask you for your support for the amendment. Do we have any discussion or debate? Hearing none the question before the Senate is the adoption of amendment six, all in favor will vote aye, opposed will vote no, five seconds to be allowed for the voting, clerk will record the vote. Alexander Senator Alexander aye, 49 having voted on the affirmative, and 0 in the negative amendment six is adopted the bill as amended is back before the body. Senator Smith, for what purpose do you rise? To send forth an amendment. Senator Smith, you can send forward your amendment. Thank you Mr. President, and ladies and gentlemen.

Hold one second Senator, One second. The Clerk will read. Senator Smith moves to amend the bill. Senator Smith, you're recognized to explain the amendment. Thank you. This amendment just restores the North Carolina Museum of Natural Science archival to its original funding. I thank the Senate for including $150, 000 of that funding in the budget. This Science Museum just opened in February. It is a brand new museum located in Columbus County, and it serves it's not only White Vale in Columbus County, but the entire region. They have had great success in attracting students from around the region to this Science Museum. This is part of the National Science Museum here in Raleigh, but a lot of our counties in this region, the students are just unable, we're poor rural counties and the students are not always able to get to Raleigh to participate in the museums here. This has been a wonderful addition to the STEM education process in this region. Its even attracted some tourists as they drive through Columbus County to go to the beach. So, it has been an excellent museum so far in the few months that it has been open, and this amendment is just to be sure that we restore the funding to the full level so that it can completely get on its feet, operational and continue to serve the citizens of the region in southeast North Carolina, thank you. Senator Brown, for what purpose do you rise?.  Speak to the amendment. Senator Brown has the floor to speak to the amendment. Senator Smith I appreciate your passion and the guy behind me has got the same passion so I'm here from both sides here. Senator Raven represented Columbus county at one time, he's from there so I understand it as well. This reason[sp?] was not on the senate budget and we had a conversation and decided to try to continue to help fund this Museum in Columbus County for the last several years this museum has been on the chopping block because there is no local support in dollars for the museum or very few, and actually Senator Smith, we were going to put a matching grant tied to this and we decided just to give the money so hopefully because it's a small cut, this will get the local community involved in trying to help keep this facility open, and get behind a little bit more so it was kind of a compromise, and I appreciate your passion, but I'll have to ask you to not support the amendment. Do we have any further discussion or debate? Senator Smith, for what purpose do you rise? Just to address a question Senator Brown brought up, and I do appreciate. No, No. Senator Senator Smith, do you want to speak to the amendment? To the amendment? Yes. Thank you Senator. I do appreciate the fact that there's been a debt added in. I would like to say that the people of Whiteville did raise over $100, 000 to be able to move this museum, to the science museum to Whiteville, so there has been local participation. Unfortunately that area of the State just doesn't have the ability to raise $100, 000 every year, so I just wanted to address the fact they did contribute, and I do appreciate the fact that it has been added to the budget. Mr. President? Senator Barack, for what purpose do you rise? To speak to the amendment. Senator Barack has the forward speak to the amendment. Give a little more background on this, this used to be Museum of Forestry that we tried to sell to the town of [xx] for a dollar they did not take it. We have 518 museums across the state, and they are, all of them don't receive funding, and the problem that we have that certain ones gets funding and other ones do not. And we're trying to create a competitive ground process to where those that work hard back in their homes and work to raise money and get the community involved that will benefit the most, instead of relying on donors coming from Raley because some protocol policy. We have a lot of museums that do a lot of good job, do a good job across the state and I appreciate your passion that this is something that we we've got to look at a fair way to distribute the money and help all across North Carolina to have a few simple and I urge you to vote against the amendment. Any further discussion, or debate? Hearing none, question for the Senate is adoption amendment seven all in favor vote aye oppose will vote no, five seconds will be allowed for the voting and the clerk will record the vote. Alexander aye, [xx] aye, 19 having voted in the affirmative

and 30 in the negative, amendment seven fails the Bill as amended is back before the body. Senator Randomen[sp?] for what purpose do you rise? Send forth an amendment that should be on the dashboard. Senator you can send forward your amendment clerk will read. Senator Randomen[sp?] moves to amend the bill, Senator Randomen[sp?] is recognized to explain the amendment. Thank you Mr President, on page 349 we would like to add on an effective date to the provision that is dealing with the specialty courts and the clerks haven't been given consent to conduct specialty courts, and I would ask for your support for the addition of this effective date. Do we have any discussion or debate on Amendment 8? Hearing none, the question before the Senate is the adoption of Amendment 8. All in favor will vote Aye, opposed will vote No, five seconds to be allowed for the voting, and the Clerk will record the vote. Blue, Alexander. 47 having voted in the Affirmative and 0 in the Negative, Amendment 8 is adopted. The bill as amended is back before the body, any further discussion or debate? Senator Bryant, for what purpose do you arise? Send forward an amendment. You can send forward your amendment Senator. Senator Bryant, would you mind coming forward and signing the amendment for us please and then we'll get it scanned in? The Clerk will read. Senator Bryant moves to amend the bill. Senator Bryant is recognized to explain the amendment. Mr. President and members of the Senate, this amendment amends the bill on page 441, lines 46 through 443 line 20, and it's the section of the bill dealing with the retirement system and it is a provision that eliminates the opportunity for educational staff who take a leave of absences to work full time in several state organs, several organisations and this provisions have been in place since 1983. The North Carolina education association of the state, farmers association, the state farmer association, the highway employees association, the state employee credit union, alumni association of the state affiliated universities and colleges and local professional organisations are related to the school boys and the professional educational organizations. These organizations since the 80s have been able to have their if an employee leaves the state system to go work for that association, and wants to buyback employment, or buyback retirement benefit, in the state system they have been able to do that over that time. They raised an issue about whether this arrangement somehow violates federal law. There is no clear cut violation of a federal law, in this regard. It seems like to me, it's another effort to in particular target our teachers organizations, and make it harder for them to function, and support our teachers in their professional development and professional affiliation in the State, and for that reason I'm putting forward this amendment to remove that provision, to maintain the opportunities for our employees to serve these organizations that do support the major functions of the state in the areas of education, the credit union, the fire service e. T. C and there is no reason at this time to illuminate this provisions that have been in place since the 80s and that's the reason for the amendment, I would ask your support of these organizations and our state employees who would leave, take a

leave of absence to work and come back to the state after that. Thank you. Senator Hise for what purpose do you rise? See if Senator Bryant will yield to a question. Senator Bryant do you yield for question? I will. Senator Bryant, I just want to see if you can, I actually want to change this if you get current policy for me. We allow state employees to say work 26 years for the state and then go leave and work for one these private entities for four years and then still get that credit, and they can buy that credit towards their retirement which would give them full retirement? Will they have, in the provision they have several options that are provided in the statute for what they can do when the leave. One of those options is the option to buy back that retirement, there're also other provisions where the salary can be paid and maintained, if they're, first of all this has to be approved by their employer, that's the first step. It's not like an absolute right, but with the approval of their employer, they can maintain their participation in the retirement system, and yes and through either direct payment or bank [xx] service. Follow up, Senator Brian do you yield for follow up? Yes and that's to the extent that I can know maybe the details of all this. Senator Brian, if the salary they're being paid at this private entity say for those four years is significantly higher, than what they as a state employee, do you know which four years they would base the high four[sp?] salary on? That level of detail I don't know, I would have to ask staff to answer that question for you. Speak to the amendment. Senator Hise, you have the floor to speak to the amendment. Thank you Mr. President, and where this current policy came from, I haven't been involved in the development, we have a serious problem when in our State retirement when we're allowing people to leave the work of the State, go work for a private entity or others, and then buyback into the system at the actuarial rate not what their future cost would be. This is something that will be a burden to every state employee and to us when we're having to come up with more funds to fully fund the state retirement because it allows people to use service not in the state to pay for those years. I'd appreciate your opposition. Mr. President. Senator Apodaca, for what purpose do you rise? Speak on the amendment. Senator Apodaca has the floor to speak to the amendment. Thank you, Mr. President. As usual Senator Hise is right on target the question Senator Bryant asked was about people going outside of the government employee position and being able to come back and purchase time when they worked at ABC widgets. So I ask you to vote against this amendment. This will firm up our retirement plan, and it is a very good addition in the budget, thank you. Do we have any further discussion or debate on the amendment? Hearing none, the question before the Senate is the adoption of Amendment 9. All in favor will vote Aye, opposed will vote No, five seconds to be allowed for the voting, the Clerk will record the vote. Rucho No. Alexander. 17 having voted in the Affirmative and 31 in the Negative, Amendment 9 fails. The bill as amended is back before the body. Senator Cook, for what purpose do you rise? You want to change your vote? Yes Sir. Senator Cook Pushed the wrong button sorry.   Changes his vote and the final count was 16 32. Do we have any further discussion or debate? Senator Robinson, for what purpose do you rise? To speak on the bill. Senator Robinson has the floor to speak to the bill. Thank you ladies and gentlemen. Someone has said, and I paraphrase that the test of a civilization is how it treats its elderly and I'd say its children. The test of any budget is whether it adequately meets the needs of the people we're elected to serve, and the challenge of education is, does it prepare our students for jobs now, and in their future? After years of devastating cuts to education at all levels this budget simply does not make a meaningful investment in our children's education. Just weeks after we lost another large manufacturer, Volvo to South Carolina of all places, for their $500 million auto plant we're again seeing that we didn't get the message. We refuse to invest

in North Carolina once excellent public education system. Let me remind you of a few facts, North Carolina currently ranks 46th in the nation in per pupil spending. As written, this budget will make very little progress and leave North Carolina is one of the worst states in the southeast, it's my state and I don't like the way that feels. We'll trail South Carolina than West Virginia, we're currently spending $1, 300 less than South Carolina with no plan to catch up, secondly this budget fails [xx] comprehensible approach to teacher pay. And the teacher pay crisis in North Carolina, know we say that we're raising the beginning salaries of teachers and some impact to the others and I know teachers got a little bit, they simple no plan to raise our teachers to the national average and under this plan, our best teachers will continue to leave the profession in North North Carolina and take jobs in other states, and I don't think those states are as good as we are. But our teachers are leaving us with our most veteran teachers receiving no pay raise almost at all. Now while textbook funding is 59.6 million and I'm sure the schools, thank you for the increase. That's a far cry from the $111 that were in that fund in 2008/9, and even that wasn't quite enough. Even if our children do not have the text books and the technology they need to learn, how do we expect them to accomplish the challenges that are in front of them? How do we expect them to compete in this global economy? And how do we intend to train workers to feel happy paying jobs but the industries we plan to attract? Yes I agree with research and I have history in terms of promoting that. The smaller class sizes make an impact on teaching and the child's ability to learn. But in the essential element in that is that en grace case rule three. Individual license instruction is critical for those children who came in unprepared, without the resources that your children and my grand children, and others have in early child development to really get ready to learn so that teacher can address their needs. To teaching assistance, curbing 8500, 90 to teaching assistance is not the answer to the falling schools who are now being rated D's and F's, to reach these children who are already so very far behind. A strong public education system is essential, you and I agree, to improve in our economy but we're loosing jobs to South Carolina and other states. And companies are making a more significant investment in education in the workforce training, and they are passing us by. The only way to change this perception is a pass budget, that is simply more than ready and actually gives our teachers, students, and local schools the resources they need and the support they need. They real equation for quality public education is good teachers Teachers assist us to support those kids who have to get a little further and the resources like textbooks. At this point Mr. President, I'd like to send forth an amendment. Senator Robertson you can send forward your amendment, clerk will read. Senator Robinson moves to amend the Bill. Senator Robinson is recognized to explain the amendment. Thank you Mr. President. What this amendment does is to repeal the schedule corporate tax giveaways. Schedule to drop from 5% to 3% over the next two years and it fully funds over a six year period to get all North Carolina teachers, including our most veteran teachers to the national average rather than cooperate handouts, we must focus this budget on supporting our children, and our classrooms in order to invest in North Carolina's future. I hope you will join me in supporting this amendment. Mr. President? Senator Apodaca for what purpose do you rise? If Robinson will yield to a question. Senator Robinson, do you yield?

Senator Robinson will yield. Senator, sorry I heard so many misstatements a minute ago, I forgot her name. In 2010, Senator tell me how that was a last year while in charge, please tell me how much you allocated for textbooks? I can help you. [xx] When we were in charge, I was not down here. Okay Well the democrats, I came thank you, Mr. President.   Time to make an impact on education.   Senator Brown, for what purpose do you rise? Speak to the amendment. Senator Brown has the floor to speak to the amendment.   Senator Robinson, I appreciate your passion for education just like all of us. I think K-12 education has been a number one priority in this legislature for my 11 years here, and I think it will continue to be as long as I'm here. When I look at teacher pay I look at last year, we spend $282 million more in teacher pay. This budget is another $152 million more in teacher pay. Over $400 million more in teacher pay in two years, unprecedented in this State. I'm not sure how you can talk about what this legislature has done, and I look at what this budget does as well. We had almost 7, 000 new teacher positions in this particular budget, reduced class size to 1-15 and raised 133 something that nobody, I think, thought can ever be done in this legislature, to take care of our kids. Provisions in this budget deal with Leandra, and talk about how we should take care of those aliases that are suffering to meet the needs of our schools and kids and those particular reasons. Sarah Boras worked tirelessly in trying to make sure that students in the third grade can read the level, because all studies show that if a student can't do that, they can't be successful. I guess I'm stunned. That you can say that this legislation hadn't done anything to take care of teachers and education, K-12 education in general, when that's just not true. This project spends more on K-12 education, than ever in the history of this State, ever and I just don't think it's accurate information that you are talking about, and I feel pretty certain this was a major step to take care of our teachers beginning teachers now make $45000  they did make 30900 dollars, again I just don't understand what you are trying to accomplish here. Mr. President. I'm not through, I'd ask you not to support the amendment and again cause I just don't think your information is accurate. Senator Stan for what purpose do you rise? To see if Senator Brown will  yield for a question? Senator Brown do you yield? I will. You just said that North Carolina is spending more on public education at any point in history, is that correct? Otherwise that is accurate. Okay so Follow up question. Senator Brown do you yield for. I do, if we were to factor in things that are normally factored in terms of how much you are spending on something such as the number of students there are in the schools and what the inflation rate is, do you believe that North Carolina are spending more today on K12 that any other point in North Carolina history Senator Stan I do know this that in the past four years we've increased spending and [xx] education by more than a billion dollars, the highest increase in a four year period the highest increased ever in this state. You can work with percentages, you can play with it but numbers on actual dollars on K13 education are the highest they have ever been in the state. Mr president follow up question. Senator do you yield. I do. In 2008/9 North Carolina spend 5, 588 in the state dollars on a per student basis in 2007/2008 dollars. Today under your proposal budget next year North Carolina will spend 4614 dollar on a per student basis in real dollars which number is larger? 5, 587 or 4, 600? Mr President can I ask Senator Stan a question. Senator Stun do you yield? Senator Stein, what was that number in 2009, 2010 under the last cruise ship before we took control. On a real basis it was $5, 030 which is approximately $417 more than what is proposed in this budget. Again Senator Stein I would say when we inherit a 2 1/2 billion dollar deficit, had to work through that to get to this point and funding K through education I think is unprecedented Again teacher pay is at the highest

level its ever been, again 7.7% increase on average last year, over 4% average increase this year, again the highest total ever in this state, you can play with some numbers again but to me total dollars spent in education tells it all and I think over a billion dollars more in four years is a pretty good track record. I think all of us can be proud of Senator Apodaca for what purpose do you rise? Speak on the amendment please Senator Apodaca has the floor to speak to the amendment Thank you Mr. President, members Senator Brown always kind of makes me nervous when someone stands up that probably never made a payroll in their life, probably not till you signing in front of a cheque but start talking about real dollars, real dollars, adding inflation, arbitrary figures, this and that. That is dangerous because we deal in actual dollars, that's what the world deals in actual dollars. Now we can do fairy, I'm not, sit down I'm not yielding we can deal in fairy tales and we can deal  I feel like I'm an Allison in wonderland with the some of the terminologies coming out of that back row, but anyway that being said sent forth substitute amendment Senator you can send forward your substitute amendment clerk will read. Senator Apodaca moves to amend the bill. Senator Apodaca is recognized to speak to the amendment. Thank you Mr. President, members. Senator Hise brought this to me, there is a problem on the Cherokee Indian reservation. They need the ability to match funds with the feds in order to take advantage of some grants. This will allow them to do that and I was sorry to say it was left out of the budget and I ask for your support, thank you. Do we have any discussion or debate on amendment 11? Senator Stein for what purpose do you rise? To debate the amendment. Senator Stein has the floor to debate the amendment. To vote for this amendment would be be to kill Senator Robinson's extremely valid and appropriate amendment which would dramatically increase teacher pay. Senator Apodaca for what purpose do you rise? Are we talking about teacher pay, are we talking about Cherokee Indians reservation? Keep your comment to amendment number 11 senator, thank you. The consequence of Amendment 11 is to vote against teacher pay, I urge you to vote down this amendment. Any further discussion or debate? Senator Blue, for what purpose do you rise? To debate the Cherokee Indian Reservation. Senator Blue, you have the floor to debate Amendment 11. Thank you very much Mr. President. Because I think that Senator Apodaca is on to something, not necessarily with the content of this amendment, but if he looks closely at it he will find that over the past several years the Cherokee Indian Reservation is spending more to educate kids on that reservation than we're spending statewide on children in North Carolina. Do we have any further discussion or debate? Mr. President. Senator Apodaca, for what purpose do you rise? Speak on the amendment again please. Senator Apodaca has the floor to speak to the amendment. Thank you. I'm glad Senator Blue brought that up. I remember in, let's say 1980, when we graduated at Cullowhee. My wife had a teaching degree, and the Cherokee Indian Reservation making a debt time was being in 2500 or $3000 more year than there are teachers, so this didn't happen, thank you Any further discussion or debate on amendment Senator Smith Ingram for what purpose do you rise? To debate the amendment Smith Ingram you have the floor to debate the amendment Yes, I want to thank senator Apadoca for sending forth this amendment I also hope that this opens up our understanding and our minds about the first American and the challenges that they face giving proper recognition and the support so that they can move forward and be able to take part in some of this federal grants and so anything that so let to remind you that there are native American tribes who are also seeking recognition I have one group in my district the [xx] who are seeking state recognition so that they can move to federal recognition so as we debate this amendment let look forward to supporting the task [xx] and the other first American as they seek to do just for the charity do we have any further discussion or debate on the amendment? Senator Robinson, for what purpose do you rise? To speak on the amendment.   Senator Robinson, you have the floor to speak to the amendment.   Certainly want to thank my colleague there for bringing forth the amendment, and I'd like to remind us all that Cherokee Indians are students too. They are a part of the student we're talking about today, thank you.   Do we have any further discussion or debate on the amendment? Hearing none, Mr. President. The question before the Senate   Mr. President. Senator McKissick, for what purpose do you rise? To speak on the amendment.

  Senator McKissick, you have the floor to speak to the amendment.   Simply want to make one observational note. One thing the Cherokees are allowed to do under federal law and what we have entered into in terms of compacts with them is gambling. Gambling brings in a lot of proceeds and a lot of revenues, and it lets you spend money on many things. I respect their Native American comes in the western part of the state. I respect your capacity to spending generously on education and to provide for those that reside within their reservation. But I also make a special note of saying, we need to think about how we want to raise money to spend on education. We've legalized gambling in terms of the lottery, we want to make sure all that money gets to education. But how far down this path do we want to go. Any further discussion or debate on the amendment, hearing none the question before the senate is adoption of amendment 11 all in favor of it vote aye, opposer vote no, five seconds to be allowed for the voting and the clerk will record the vote. 33 having voted in the affirmative and 16 in the negative. Amendment 11is adopted, amendment 10 it fails, and the bill as amended is back before the bodied do we have any further discussion of debate. Senator Alexander for what purpose do you rise? To send forth an amendment that's on the transport. Please send forward your amendment the clerk will read. Senator Alexander move to amend the bill. Senator Alexander is recognized to explain the amendment.  Fellow Senators, thank you for your attention today, I've got an amendment here and what this does, it allows Wake county to be able to offer all their [xx] option to allow to their voters between now and December 1st of 2016, the option of having a half-cent sales tax referendum for transit I would appreciate your support. Do we have any discussion or debate. Senator Blue, for what purpose do you rise? Excuse me one second Mr. President. I had not had an opportunity to read. Well Senator Alexander do you yield to the question? I yield. Senator Alexander I'm sorry I haven't had a chance to read this in the draft, does this have anything to do with Wake county being able to levy the half cent sales tax? Yes, Senator Blue what this allows the county to do if they choose is to put in before their voters in a referendum the option that the voters themselves have an opportunity to decide whether or not they want to have a one half cent sales tax, and then the voters decide whether or not they want that. Does it. Senator Blue [xx] ask for follow up. Will he yield for another question? Senator Alexander will you yield for follow up. Yes absolutely. Does it in any way restrict Wake county on the triangle to answer authority from using federal and state funds in any way differently than any other authority or any other county expenditure? Senator Blue I'm afraid I do not have an answer for your question sir. Let me ask you this so that I'll understand this. Senator Blue would you to [xx]. If I could Alexander do yo yield for a follow up? I do, yes. I got the feeling that we're going to be here at least for a few minutes longer. Could you temporarily displace this amendment say exactly what this amendment does so that I'll understand what's happens here? Certainly senator, will be happy to do that.   Thank you. Senator Alexander displaces amendment 12, do we have any further discussion or debate? Senator Van Duyn for what purpose do you rise? To debate the bill. Senator Van Duyn has the floor to debate the bill. As Senator Brown said this budget represents our priorities, it's a signal to the people of North Carolina about what we think is important, and unfortunately what this budget says is that it's not them. We have the opportunity to reaffirm our commitment toward the working families of North Carolina who are still struggling to make ends meet, by investing in their futures. Our schools are struggling, out teachers are feel under siege, our children are sharing textbooks and waiting for access to technology. I applaud the gains made in education particularly around decreasing class size, there is still much more to do. Giving a tax credit to corporations who tell us over and over again that what they really need is a well educated work force makes no sense. Paying for a corporate tax cut by cutting teacher assistants makes no sense. We had an opportunity to do more for our children. We had an opportunity to work for our educators becoming allies

rather than adversaries by putting education first. That's what business wants us to do, that's what North Carolina families want us to do, but instead we cut corporate taxes. I would like to send forth an amendment. Senator Van Duyn, you can send forward your amendment. Clerk will read. Senator Van Duyn moves to amend the Bill. Senator Van Duyn is recognized to explain the amendment. What this amendment does, is it restores the funding for teacher assistants and pays for it by putting off the corporate tax cut. In 2008 we funded 22, 500 teacher assistants, today we have 15, 364, this budget cuts that number in half leaving less that 7, 000. We've all visited elementary school classroom they're hubs or activities with children clustered around various project this children come from diverse backgrounds with different abilities and challenges, with teacher's assistant provide an opportunity for the classroom teacher to multi task focusing on what is most important, a struggling student needing extra attention, or a child working through a mandated the teacher assistant provides a second set of hands and eyes creating an instructional team that make sure every child is engaged a none task, for our youngest children they provide help and emergency and with little one's minor emergencies happen everyday. They also provide a relief fund for teachers under stress and anyone who has spent time in a classroom with children under eight knows what kind stress I'm about. We need to make education a priority and we need to fund it adequately before we take funds away to give them to cooperation though tax cuts they haven't asked for so I urge you to support this amendment. Do you have any discussion or debate on amendment 13? Senator Suecheck for what purpose do you rise? To debate the amendment. Senator Suecheck you have the floor to debate the amendment. Thank you Mr. President. I've heard over over again about this drastic cuts to education. Some thing that I'll remind every one is that we are fully funding a Roman growth here and we look at teacher assistants we have a fine amount of money and we want to spend that money the best we possibly can to educate the students in the class room. And when we look at important thing about the way we fund teacher assistance is not by position like it is with teachers, you don't cut positions. What we're doing is reducing the amount of funds per student that's available. Now it's an important distinction because there are lots of other different ways to fund teacher assistants and these are done all the way around the state. We have local funds, low wealth funds, exceptional children's funds, so we in the last few years the flexibility we've given school systems to spend their money around. The ability to hire teacher assistants is still within their capacity. They have to choose what their highest priority are and we've seen around the state with the funds that get with its flexibility that often times they don't spend on [xx] they spend in other things because that meets the individual need of the school systems. And probably the most significant thing when we look at the teachers we're trying to fund the most effective classrooms. And we have not cut teacher's assistance funding in a classroom in as much as transfer this money to reduce class sizes, because in K-3, the statistics show the best thing you can do is get a great highly effective teacher in those K3 classroom. I want to have some small class size where all the study say that number around 15 to 17 where that teacher can Impact each one of those students life for transferring that money to highly effective teacher and over the biennium would be hiring over what 3200 teachers? That is where we're going to be affected. That's how we're going to be working towards the future which everyone here wants to do, the very early graves giving these kids that start that they need to go to high school college and become great productive citizens. So, what we're talking about here is reducing class size, putting teachers in the classroom, raising teacher pays that we have to starting teachers coming at [xx] that's something I can do when I want to do, fulfilling this promises for pay increases, attracting and retaining those great teachers, reducing class sizes that is what this amendment is doing and that why I support it and ask that you would support this amendment Senator Tillman for what purpose do you rise? Speak briefly on the amendment Senator Tillman has the floor to speak on the amendment. Senator Brown it was a couple years ago we had

more money in for teacher assistance and I believe it was 90 million was not used in the teacher assistant, money, I just used that money elsewhere in the budget. That was 90 million that you could have hired more teacher assistance whether they did it, I don't know where they spent it, and they have total flexibility now. You can take gas and oil money and buy teacher assistance. We gave flexibility two years ago which a resurfing[sp?] tenant told me I can do more with the same amount of money if I've got total flexibility. You can take textbooks money and any other kind of money with local as Senator Soucek said, and buy teacher assistants. They've had that option now for a couple of years, they used that option to take $90 million and spend it elsewhere, that's what happened with a lot of teacher assistant money. Any further discussion or debate? Senator Robinson, for what purpose do you rise? To speak on the amendment.   Senator Robinson has the floor to speak to the amendment. Thank you, Mr. President. Ladies and gentlemen, let me remind you that with that flexibility years ago some of our school systems had to use that flexibility to hire additional teachers. So Senator Brown, you're right they need additional teachers, but that does not supplant the need for children who come in unprepared. If you have a class classroom of 15 or 17 children with various needs some from lower socio-economic backgrounds who never even had a book some who may have picked up somebody's iPad but don't really know how to access learning or the things your grandchildren and mine would do. Children come in also with a lot of developmental issues that they had not been assessed earlier and that has to be dealt with. Other kids come in with barriers from the community everybody doesn't have a successful family so what does one teacher, in a classroom of 17 children, with diverse issues, even some in foster care who have never had one stable home. What does one teacher trying to address and teach what they need to do, I agree. Senator Burger, they need to teach because they need to read, they need to do math, they need to learn. What does that teacher do without some assistants to help those other children, negotiate those problems, assess their needs and get them the help they need. So they have a level playing field. That's a need for teacher assistants. We're not saying in all the grays, but pay through three your critical years I agreed they need to read by three, but somebody else has to help them. One teacher can't do it by themselves. I ask you to support the amendment. Do we have any further discussion or debate on the amendment. Senator Walter for what purpose do rise? To speak to the amendment. Senator Walter you have the floor to speak to the amendment. A couple Thursday's ago we adjourned I drove up to South elementary school in Caswell County to visit with some of the students there. I was visiting one of the classrooms and I watched the interaction between the teacher, her assistant and the students. And I was there at the end of the day and as the bell rang, I watched the assistant walk out with her class students in her class, to the bus stop and to the kiss and go lane, I guess they call it. Then the assistant walked on to a bus where students are waiting, and I asked the principle I said, is she driving the bus? And she said yes in Caswell County, in Person County and a number of rural counties around the state, these teacher assistants are also our bus drivers. Check and see if it's true in your district is well, so when you eliminate over 5000 teaching assistants this year, 8000 next year, you are eliminating not just the teacher in that that assist in that classrooms but other functions as well. Now we can talk about what these superintendats, what these LEAs do with the money, but Senator we can play with numbers all day I know my superintendents use their money for teaching assistance and these two rural counties it's a big deal to have them there and we present the lowering class size in grades one through three and the teachers assistance as a it doesn't have to be, it should be both ends, we don't need to pick winners and losers, we need to pick winners. We need to lower class size and we need teachers assistant in this lower grades I urge you to support the amendment, Any further discussion or debate on the

amendment, hearing none. Requesting further sentence in the adoption amendment 13 all in favor vote aye those oppose vote no, five seconds be allowed for the voting and the clerk will record the vote. Brisson[sp?] no, Alexander no, Rabin no, Blue Aye, 16 having voted in sorry Apadoca, senator Apadoca, no Thinks that everybody 16 having voted in the affirmative and 33 in the negative amendment 13 fails the bill as amendment is back before the body. Senator Curtis for what purpose do you rise? To send forth an amendment amendment Senator Curtis you can send forth your amendment This amendment just changes Hold on one second senator let get it read in here the clerk will read. Senator Curtis is recognized to explain the amendment. This amendments this changes the date of the requested study from department of health [xx]. They requested thirty more days to do this study Do we have any discussion or debate? Hearing none the question before the senate is the adoption amendment 14 all in favor vote aye, oppose will vote no five second for the voting, clerk will record the vote Rucho, Aye. Soucek, Aye. Blue, Aye. Alexander, Aye. Ford, Smith-Ingram, Aye. Clark, Aye. Rabin, Aye. Waddell, Aye. Clark, Aye. Ford, Aye. There we go, 49 having voted in the Affirmative and 0 in the Negative, Amendment 14 is adopted and the bill as amended is back before the body.   Mr. President.   Senator Waddell, for what purpose do you rise? To speak to the bill. Senator Waddell, you have the floor to speak to the bill.   Ladies and gentleman of the Senate, I have spend more than 30 years in education, from pre-school teacher to college professor. Dedicated my career, volunteer work to education. So I come before for you today to talk about the veteran teacher. The veteran teacher is a very important person in our education system. These are the teachers who've chosen teaching as a career path and that's what we want teachers to do. I traveled throughout this state and neighboring state recruiting teachers to our system, and promised them that if they stayed with us, it would be worth their wow. They would be a veteran teacher, I'd be greatly rewarded. Little did I know things changed. I watched last year as recruiters came from Texas to Mecklenburg recruiting teachers and paying as much as $10, 000 more. I was saddened to see that knowing that just five years ago I traveled throughout the state recruiting, trying to bring the best and the brightest file system. Think about in 2008, North Carolina was firmly inline with the nation average in several education expense categories. It could honestly offer both teachers and students in North Carolina one of the best educations in the state. As I spoke with those in business and industry who were interested in moving to North Carolina most of the major question they always ask is our school system, what kind of school system do you have? They ask about teachers ask about teacher pay. I want to be proud when I say that we are moving toward the national average because I'm hoping that we will be. So we ought to attract the best teachers in the country, we have to move towards that national average and pay a fair rate. Neighboring states have raised their rates closer to the national average and we're seeing a boost in our applications. Now they have come here and recruited our teachers,

and five years ago I was among the recruiters going there to recruit their recent college graduates. On the other hand, this session I filed the bill shortly after I arrived here to increase the steps, to include raises for our most teachers just like most of our democratic colleagues that bill is sitting right now and I'm hoping that it will move forward, so that we can rip the success that it will bring. We came to this legislature and we promised our voters they will make this state a better place and that we will make teaching a career path not something that you can work five years and move to something else. We must keep our promises, last year the state budget included a teacher pay raise in for some it was like 7% and for others it may have been greater, but I'm sad to say that our veteran teachers did not receive praises, advances, finances and comparison on that scale. One of the ways that we increase what we do we must look at what we're paying, and make sure that our teachers are not underpaid, and we must support pay raises so that all teachers get North Carolina in this state move to the national average, and in doing so we must look at this budget to make sure it happens. We have good teachers, we have great students, they contribute to this economy and make it what it is. Thank you. Senator Smith Ingram for what purpose do you rise? Thank you Mr. President to further debate the bill. You need to have the floor to speak a second time senator. I'll like to debate the bill as we are talking about education and the challenges that we are imposing with this budget. I am looking at the text book funding that was allocated by this budget while it is at 59.6 million dollars that's a far cry from the 100 and million dollars that it was previously at the appropriation 0809 and even that number then, was not enough [xx] the cuts we have made to textbook funding does not adequately address the problems that we have created. Without the resources they need to succeed, how can we expect our children to be able to be competitive, to be able to compete, be able to produce and become productive citizens. And the reason that I put compete before produce is because they have to be competitive to be able to get into a job where they can produce and then become tax paying citizens, companies need an educated work force that doesn't start as adults, it starts in our education system. As a teacher, I know first hand that even without the pay raises and without the your assistance children are struggling without the tools they need to learn and succeed. Now earlier there was a discussion about the success of the drivers they have program and the number was reversed in 2012, 2013 this successful pass rate was 68% and not the 40% previously discussed thereafter, in 2013, 2014, it was 63% pass rate and I just've looked it up to verify it. I am not talking to you about what I read, I am not talking talking to you about what I heard, I'm talking to you about what I experienced everyday as a public high school teacher. Our students need technological resources, they need textbooks and we need to adequately fund them. I have a nephew who is a college student 6 foot 7 great basketball player, but he's majoring in engineering as well and we are proud of him. Every platform that he uses blackboard, that are in our colleges across North Carolina, our students need to be adept and abreast of technology how to use it, how to apply it and electronic learning applications. We don't need to wait until they get to college to give them that experience, it has to start earlier in order for our students to be successful. That brother has a sister who is my niece, who attends school in Northampton County, North Carolina. Her school has the one-one laptop Chromebook Initiative. For her peers that don't have internet access at home, they are empowered and equipped

to download the platform be able to take it home, be able to access their digital resources still complete their homework, but better than that, the students who don't have the support at home can have that seamless learning throughout the academic year well into the Summers by being able to have that experience and access electronic learning. my niece and my nephew have a father, my brother in-law who is just so wonderful, he is trying to get his promotion from an E 7 to an EA in the military, he has to take an online course so that he can be promoted from E7 to E8 that is not offered I'm the point I am trying to make and get us to understand, that if we want a skilled workforce and productive citizen we have to start early on at every level to apply the textbook resource that they need as well as the technology resources what we are asking for is simply common sense strategic investments that we know will improve the quality education for our students. We know South Carolina is beating us for jobs in part because they are doing far more for their teacher as well as their children their students in the classroom and we must to better with that I would like to send forth my amendment forward to your amendment senator clerk will read.  Senator Smith-Ingram moves to amend the bill Senator Smith-Ingram is recognized to explain the amendment. What this amendment will do is repeal the scheduled corporate tax give- a-ways schedule to further cripple our education spending in the coming years and instead it's going to put the right things in the right place and thus the resources needed in the classrooms across North Carolina so that we can return our great state to excellence in education. I know so that we can do better for our students today, I implore you to support this amendment to ensure that we get back on track as leaders in this nation and public education. Mr. President. Senator Brock for what purpose do you rise? Speak to the amendment. Senator Brock has the floor to speak to the amendment. In our about 2008 and had some teacher assistants for my county that were here, one of them was teacher assistant of the year, and I've got family that are assistance. Let me just tell you, and I always hear about 2008, Senator Stein pay attention. Let me set the record straight about 2008. That stimulus money that you're counting, one time money from the federal government that you're counting over and over again. We're dealing with real dollars here in North Carolina, we don't print our own money. So let me get that straight, when everybody uses that as a watermark is 2008 Mr. President. Senator Stein. [xx] a question. I do not yield. And we're talking about water truck plans water trucks, automobile manufacturing. We want to look at the South East when the Democrats were in control, I think it's ON14 Bar Buca[sp?] had a better batting average than that, and let me tell you about what's happening in North, rather some of the reasons why I won't vote. Something we addressed in the issue of budget the single sales factor. Mr President. We're working on the port. Senate Waddell for what purpose do rise? To speak to the amendment I believe a point of order is in order here. There's nothing about the amendment here, this is about textbooks and technology. And the corporate income tax but I'm getting there senator. Senator Brock continue keep your focus on the amendment. I am, along with the sales tax, the way we look at corporate income tax, the way we tax in North Carolina is how we develop our workforce. And there's a lot of things when we're talking about water trucks jobs here in North Carolina, and it goes down to the very bottom. The bottom line is the bottom line. I urge you to vote against the amendment. Do we have any further discussion or debate on the amendment. Senator Smith Ingram, for what purpose do you rise? speak to the amendment. Senator Smith Ingram has the floor to speak to the amendment. As I challenge my colleagues to learn from my experience I want to share with you what more allocation, greater allocation for textbooks and technology will allow I've taught chemistry as well and it's wonderful senator Hise you can this, to be able to teach this reiterate principle, and gets to this to understand even for those students who lives in an area that challenge that they

don't have outfitted labs that we were exposed to at science and math. We can with technology provide a virtual laboratory experiment where I can able to increase the contents of the reactants as well as apply pressure, and increase the temperature and virtually before their technology, student can participate laboratory experience to further reiterate the effect of the system of stress which is what the [xx] principle teaches. Not only that once I've taught the instruction that lead the lab of facilitated the warning the student can then go home and have the supplemental materials on that hand to hand or on their con books on the technology that's provided by the school systems they can do their homework as well as extend their learning and explore other learning content in the same area. We dealing with school system across the state meaning of them in rural areas that are challenged there was a market reduction and performance during the rescission year when we scale back dramatically on the appropriations for textbooks and technology, I want to share a few more numbers with you. When you look at how are we really funding text books, I've already shared that, we'd gone now from the 59.6 million to the previously 111 million that it wasn't, and none was it here 5 years ago, 6 years ago, or whatever, but I'm here now and I want advocate for these student who need access to resources. We have had a $38.4 million cut in text books and technology appropriations while we have had a student population increase of $16, 000. Mathematically we just can not say we are providing funding at adequate levels. Not only do the technology resources and text book help students, but it also helps our beginning educators. Well, I think when our beginning educators come us, they do not have a lot of resources, they do not have a lot of supplemental materials. We recently changed our standards to go with the common core. So some of the material that is there is outdated, or it's not standards specific. When we provide adequate funding, we allow these resources to go in the hand of these teachers who are starting out and who need these supplemental materials to facilitate and accommodate learning. Last, but not least I challenge you to understand that technology is the wave of the future. Every student who's going to attend university, every student who is going to get a vocational job, every student who is going into the military, needs to be able to access and understand electronic learning technology and we need to equip them and empower them on this level so that they can become all that they can be. I urge you, I beg you to please support this amendment. Senator Apodaca what purpose do you rise? Speak on the amendment. Senator Apodaca has the floor to speak on the amendment. I'd like to give three numbers $453 Million, that's extra money we are putting in K12, over the next two years. second number, $5 Million, that is extra money above and beyond previous spending levels of the community college system. $160 Million, that is the amounts we are putting into university system, over and above what's been put in last year, over the next two years, folks, there is never enough as we've heard, but this is doing what we promised North Carolina we will do, I have not had one of these entities say, I don't want the money, there are all saying we can work with this, I ask for you to defeat this amendment and let's move on. Mr. President?   Senator SMith for what purpose do you rise? To speak to the amendment a final time. Senator Smith-Ingram you've already spoken to the amendment. Is there any further discussion or debate? Hearing none for the senator's adoption of amendment 15. All in favor of it, I, oppose the vote, no. Five seconds to be allowed to vote and corporal record the vote. Newton, no. Tillman, no then you'll know. 16 having voted in the affirmative and 33 in the negative, amendment 15 fails the bill as amended, is back before the body. Do we have any further discussion or debate? Senator Alexander, for what purpose do you rise? To send forth an amendment, I think it's already on the dashboard Senator you can send forward your amendment. This is an update of the Senator Alexander one second please. Excuse me, I'm sorry Senator Alexander

this is a replacement of the amendment that you send forward earlier, correct? That's correct Mr. President. Which you withdraw the earlier amendment say that we can add this new amendment on place. I would like to withdraw the previous amendment and add this amendment Mr. President. Thank you Senator, clerk will read. Thank you Senator Alexander move to amend the Bill. Senator Alexander is recognized to speak to the amendment. Thank you Mr. President. Fellow senators this is a Bill that's similar to the one I had a while ago but it's better now and I appreciate the input from Senators Harrington, Blue, Rucho, Meredith and Rabon probably I've left the senators this is lower than the amendment itself but nevertheless what we're trying to do is to allow Wake County to be able to have a half sent referendum whereby the members of the county get an opportunity to vote on this and it's something they have to do between now and December the first 2016, I ask for your support Do we have any discussion or debate on the amendment. Senator Blue for what purpose do you rise? To debate the amendment. Senator Blue you have the floor. Thank you very much Mr. President, ladies and gentlemen of the senate I support this amendment as far as it goes and we've worked out the details and I appreciate the Senator Rabin putting a provision in, but this fixes half of our problem and I'll talk to you about the other half momentarily. Senator Stein, for what purpose do you rise? To see if the amendment sponsor will yield to a question. Senator Alexander, do you yield? Yes. I have a question about line 12, about No State Funds may be used for light rail projects. As I understand it, all the Triangle Transit folks aren't talking about light rail, they're talking about rail rapid transit, but my question is what are State Funds? Are State Funds the increase in sales tax revenues or are they any state appropriation that would go to it? Because five years ago we were doing, no eight years ago we were doing commuter rail and not light rail. Three, four years ago we were doing light rail and not rail rapid transit commuter and now we are, and what I don't want to do is because we don't know what's going to go on five years from now and I wanted to just to make sure that as it relates to the sales tax portion that might come to Wake County, it retains whatever flexibility it has under current law if you use those funds in a way to promote transportation. Senator Stein, as I understand it the Sales Tax Funds, Wake County will be able to do as they deem appropriate with and the other has to do the state appropriations, and we've had extensive conversation with people from Wake County and the City of Raleigh and they're happy with this, and it excludes light rail but it does not exclude commuter rail. Thank you. Yes Sir. Do we have any further discussion or debate on Amendment 16? Hearing none, the question before the Senate is the adoption of Amendment 16. All in favor will vote Aye, opposed will vote No, five seconds to be allowed for the voting, the Clerk will record the vote. Newton, Aye. Brock, Aye. Curtis, Aye. 49 having voted in the Affirmative and 0 in the Negative, Amendment 16 is adopted, the bill as amended is back before the body. Senator Blue, for what purpose do you rise? Send forth an amendment. send forward your amendment the clerk will read. Senate Blue move to amend the bill. Senate Blue is recognized to explain the amendment. Thank you Mr President members of the senate the point that I was raising in the amendment that I sent forth address two issues, one had to do with the ability of Wake county to join Durhum and Orange counties and use a referendum asking the citizens to join with then and having a absent sales tax and be able to do one time rather than multiple elections, the amendment that Senator Alexander sent fourth and you just so kindly voted for takes care of that part of the problem, there is another problem in this bill created just for Wake county now, in Wake county the finance portion of the bill by senator Brown re-allocates sales tax from Wake county to the other counties on a statewide basis. Wake County's sales tax was growing at a rate of about 6 1/2 - 7% annually. The loss is calculated at about 3 1/2% annually because that's the state average. Every other county even after they're getting the extra money from the sales tax is given the option if they choose to have an additional one quarter sales tax, if they submit it to their voters by referendum. All but two counties in the state can do that. One of those counties will be Mecklenburg County because it has public transportation, I mean the rail line.

Anyhow it's got what would be a subway if it were underground. The Blue Line, I'm sorry, the light wheel, the Blue Line that's a good one for it and the reason that that was important last Friday afternoon about 3:00-3:30 I was coming from Lamberton and when I get off the main street 95, to get on the 40, I notice the traffic it's stopped, started to bake up some of you may have been caught in it. Until a keen off interstate 40 at Herman Road which goes to Van town valley traffic was backed up to 30 miles and so that's why this light real is so important for us to participate in. But also with Wake although to some degrees we may be held homeless based on how we're now, being the only county that won't be able to access an extra quarter cents sales tax that seems pickingly unfair. Again the citizens of this county are deciding their faith I'm glad to see this young folks high school students, these Pages in here this week because for 25 years I went into the high schools and we were taught the EL civics of whatever the classes were and all of them learned and are still learning that's the government closest to the people that the best and so the people of Wake county would choose to put a an extra one quarter sales tax on themselves to fund the activities in this county, not relating to transportation they ought to be given that option like the other 98 counties are given. They also learned that fundamental principles is you keep your word, we just went through this debate about the light rail and 10 months ago, just 10 months ago this general assembly gave Wake county the ability to have this vote if we have in and still had the ability to do the extra [xx] and sales tax. [xx] but now we've given every other county in the State the ability to a quater cent sales text. The only thing that this amendment does, is give Wake county the same ability that all of the other counties have, to impose that extra sales text have to get redistributed the sales tax that Wake County is currently receiving, just that simple. I hope you will vote for the amendment.   Do we have any discussion or debate on the amendment? Senator Rucho, for what purpose do you rise? To speak on the amendment.   Senator Rucho has the floor to speak to the amendment.   We all experienced 1224 last year when we tried to work through and establish a ceiling on the half a point for the local option, and that was done so that what we could do is provide flexibility for all 100 counties to be able to utilize that half a percent on whether it be transit which probably 80 of 100 counties would never have used, and so we provided flexibility for them to use it on education or for general purpose. And so each of them still have, the ones that do have it, have that half cent opportunity Senator Blue talks about the fact that Wake County is the only one that will not be able to do the other quarter cent, that's not accurate. Mecklenburg, Guilford, and no other county will exceed the half cent cap, it just won't be in the system, and therefore that will allow for all of them to treated in a very similar manner. And then the last point that needs to be looked at is, we do base  expansion, the amount of sales tax base expansion that will occur will add some additional resources for that one half cent that will likely exceed the one-quarter cent that would be there anyhow. So I would say to you members of the Senate please vote down this, and then we can have a system where every county will be able to be treated the same, and with the good bit of extra flexibility to be able to add on the the one-quarter or one-half whatever it is under the cap that they're eligible for. Do we have any discussion or debate on the amendment? Hearing none, the question before the Senate is the adoption of Amendment 17. All in favor will vote Aye, opposed will vote No, five seconds to be allowed for the voting, the Clerk will record the vote. Curtis, No. Newton. 18 having voted in the Affirmative and 30 in the Negative, Amendment 17 fails. The bill as amended is back before the body, do we have any further discussion or debate? Senator Brock, for what purpose do you rise? Send forth an amendment. Senator Brock, you can send forward your amendment.

The Clerk will read. Senator Brock moves to amend the bill. Senator Brock is recognized to explain the amendment. Thank you, Mr. President. The amendment that you have before you on the dashboard, is it up yet? It's now up. OK. thank you, the amendment that you had before us is, last week we were talking about the grand expenditures that first started and a governor could do with open book even Governor [xx] went back as far as opening up State government to have greater transparency. We passed an amendment yesterday in Appropriations that allowed it for state agencies and something of the last 24 hours I've heard from a lot of people would like to see that on a local level as well. Many of our local agencies, our local government have budget off their set track their expensive fee,  daily or weekly this are just asking for this on a monthly bases so that the North Carolina, the shareholders can take a look at the expenditures in the State. I'm open for any questions, I just urge your support. Do we have any discussions or debate on the amendment? Senator Hise for what purpose do you rise? To see if Senator Brock will yield for a question. Senator Brock, do you yield? I will. Senator Brock, this looks at expenditures and others for county and both local governments. Are you sure that all of those counties actually have their expenditures on a monthly basis that are put together and that they don't just do quarterly or annual year audits so that they could even comply with this? Well, hopefully they're reconciling their checkbook on a monthly basis at least and while they could have this information, and will be actually submitted to the Local Government Commission, and part of the amendment is to make sure that we work with them, it doesn't start till April 2016 to make sure they have this process in order. Any further discussion or debate? Hearing none, the question before the Senate is the adoption of Amendment 18. All in favor will vote Aye, opposed will vote No, five seconds to be allowed for the voting, the Clerk will record the vote. Rucho, Aye. Van Duyn, Thank you. Newton, Newton Senator Newton. Aye. Senator Smith. Aye. Rucho is aye. 47 having voted in the affirmative and two in the negative, amendment 18 is adopted, the bill as amended is back before the body do we have any further discussions or debate?  Mr President. For what purpose to you rise? To debate the bill. Senator Brian you have the floor to debate the Bill. Thank you Mr. President, members of the senate. This is the time when we can help our North Carolina families who've been left behind with taxes increasing and incomes declining, many of our families now have to work multiple jobs to stay afloat, that is why our North North Carolina Pre-K matters so much. Senator Bargo[sp?] one of the most important things we can do to make sure our most at risk children get that great reading target, is to make sure as many of them as possible have an opportunity for North Carolina Pre-K and quality child care. This budget misses the mark increding the funding for over 500 current Pre-K slights, in already under funded program that is absolutely crucial in ensuring that all children, not just the privileged have the opportunity to succeed. North Carolina pre-k is consistently in the top five now top three nationally by the national institute for early education research we are now serving 5000 fewer children than we are serving in 2008 and 2009. In the arena of childcare subsidy this is the most important work support we can provide for working families and in particular women especially in those families with multiple job and sometimes part time jobs including in shift work. You have to be working and going to school to get this subsidy. The working are going to school to get this child care subsidy. The income eligibility changes that we implemented in the last biennium have eliminated a 3, 400 children from program who previously had quality child care and after school care which would help them develop some of the basic skills, the socialization needed for success in school. As of April we had a waiting list of 29, 583 children that even, though we have lowered

the eligibility to poorest families. We are also serving 9, 000 less children in childcare subsidy than we served in 2010. So what are the facts 46% of US children attend pre-care as compared to 70% in other developing countries, this is a issue of regional and national global competitiveness, 90% of brain growth occurs before kindergarten, kids who start behind, stay behind. 90% of the children who are poor readers and the first grade will still be poor readers by the third grade when we need them to hit those targets. One third of children entering kindergarten in North Carolina cannot recognize the letters of the alphabet, apply basic math concepts and are not properly socialized to adapt to the school classroom format, so that hinders the ability of that teacher to teach and Senator Robinson has already emphasized that. We do know that students who participate in high quality childhood programs are more likely to graduate with a four year degree, and that the majority of reading problems faced by today's children, adolescents and adults could be avoided had they had really, access to these programs in their early years of childhood. One of the biggest findings in the Excellent Schools Act, the FA through F grading systems was the impact of poverty and economic class differences in academic results. These programs are the most direct tools we have to close the achievement gap. Despite the $400 million surplus we have, this budget continues to prioritize tax rates for corporations and wealthy rather than insuring a successful future for our children, for that reason I am sending forth an amendment that will make four changes and this one is signed. Sen. Bryan you can send forth your amendment.  I think it's signed I hope it's signed. Sen Bryan hold on one second, let's get it scanned and read in here. Okay. Clerk will read. Senator O'Brien (xx) the bill Senator O'Brien is recognized to explain the amendment. This amendment makes four changes increases Pre-K funding for 1500 slots in the first year and 3000 slots in the second year. It tweaks the eligibility to make the 200% poverty limit, a level that we currently have applied up to age 8 which will cover them through the 3rd grade target reading target and that would be important, allowing our pro-rating of co-payments for part-time workers, then change the co-payments just allows them to be pro-rated and for the childcare subsidy you provides for 5, 000 additional slot each year cutting that waiting list down  by about 20% and also getting us closer to the targets, the participation we've had previously. I ask your support for this amendment amendment, thank you. Senator Apodaca for what purpose do you rise? Mr. Speaker to speak on the amendment. Senator Apodaca has the floor to speak to the amendment? Kind of feel like, here we go again. Oh! I got a bingo in the back row. Okay, I get it. Mr. President we spent this money doing gracious that have done all those amendments since fourth we've got to raise the tax rate up, that's about 12/ 15 % giving it body that came through the door $10, 000, 20, 000 a lot of places ain't having as many children as they've had in the past I know one of the counties in my district, they stopped delivering babies because there is so few children being born now, and many of our rural areas are seeing a decline in population, I'm actually having some schools that only have So as we go down this road is not just one swoop fixes everything but we have gone over and over how much additional monies we put in education, so I don't think there is any more discussion we need to make on that. I'd like to send forward a substitute amendment.  Senator you can send forward your amendment? Clerk will read. Senator Apodaca moves to amend the bill.  Senator Apodaca is recognized to explain the amendment.  Thank you Mr President, members this came to surface last

year, I believe one of the local newspaper did a segment on that call QABA which stands for Qualified Access Benefits Arrangements, what we have is the treasurer office a few years opened up for. pension benefits to be paid at a higher rate to those that were making X amount of dollars. The House last year let at sunset in December, 2014, we did not. That meant to be eligible, folks had to retire by this day. There's a request from the Treasurer's Office last year to extend the sunset out which the House wanted to but again we didn't. It appears some employees felt they didn't get the information from the Treasurer's Office about the sunset so they didn't have a chance to consider whether to retire. This amendment is a narrow fix, it extends the retirement window to august 1st, 2016 in order to allow employees time to fully consider and plan what they would like to do. Then this one that closes, I ask for your support. Do we have any discussion or debate on the amendment? Senator Bryant, for what purpose do you rise? To speak on the amendment. Senator Bryant you have the floor to speak to the amendment. I just wanted to emphasize to you members, voting yes on the amendment is voting yes on this amendment is voting against early childhood education, meeting to achieve chart targets for our at risk students in North Carolina and I know something is in the water in the area where senator Apodaca is but the waiting list that's cutting down on their child bearing, we need to examine that but the waiting list for these programs are in the 30 something. Both are approaching 30, 000. Thank you Senator Apodaca for what purpose do you rise? To speak on the amendment Senator Apodaca has the floor to speak to the the amendment. The summit clarifies something, if you vote yes, for this amendment, you're voting for [xx] fix, you're not voting for anything else, I ask for your support. Any discussion or debate on the amendment, hearing none none, question for the Senate is the adoption of amendment 20, all in favor vote aye, oppose will vote no, five seconds to be allowed for the voting, clerk will record the vote. Daniel. Aye. 33 having voted in the affirmative and 16 in the negative, amendment 20 is adopted amendment 19 fails the bill as amendment is back before the body do we have any further discussion or debate, senator McKissk for what purpose do you rise? To speak on the bill. Senator McKissk has the floor to speak to the bill. When I look at all the time that has gone into this bill I know that staff here can work delicately with the [xx] of various appropriations committees, and a lot of time went into contemplating what to put into it. Certain portions of the [xx] Bill which intriguing things I find I can probably support. What I do find deeply disturbing are some aspects of it that I think really sends North Carolina perhaps in the wrong direction and perhaps even with some of the policies that are good policies, that might have unintended consequences. And when I say that, we've heard a lot today about education, we've heard about reducing the student/ pupil ratio in our classroom. I heard Senator Suitkirk[sp?] talk about hiring an extra 3200 teachers. The thing we have to think about if we really going to accomplish that we are really going to do all those things. Do we have enough classroom capacities in all of our elementary schools to house all these new teachers? Attain the consequences some of these rural counties even some of our urban counties we may have to pack them into trailers in the back of the school or we may not have room at all. When we adopt policies, we got to look at it overall, in terms of what it for our state. I look at some of the policies that are in Health and Human Services, and I understand that our committee Chairs work keep me in that part of that budget. Some of the work they did on Medicaid I think certainly is enlightening and it's worth of serious consideration. At the same time, I look at the impact it can have on some of our rural hospitals when you talk about getting rid of Certificates of Need, they're important rural hospital to urban hospitals. When I look at the impact it can have on having a uniformed rule in re-reimbursement rate when I look at getting rid of sales tax refunds. I know that for one hospital over in Durham that could have over $42 million impact. When I talk to hospitals over in Granville County, small rural hospitals, they're talking about those Certificates of

Need having a tremendous impact if somebody sets up a facility right across the street in the hospital and takes away the most profitable part in their operations and they're less providing [xx] care which these payment, these working impact payments have dissipated in recent years. It could result in the closing of hospitals, just this week watching the news that mayor from Belhaven again matching up to Washington, arriving in our nation's Capital because of the closing of that health center in his community. I don't want to see that happen throughout our State, but that triple whammy could have a devastating impact you might say its unintended, but at the same time it's going to happen, and of course if it's not unintended that means it deliberate and if it's deliberate then somebody sitting there was deprived hard that articulate the type of policies that result in those types of potential outcomes. That's still disturbing to me. I look at what's happened in terms of what's proposed for economic incentives we've got some in games in this state that have been out there for many, many years quitting jobs and opportunity and economic vitality having spin-off effects. Not just here in North Carolina up in all over. Establishing our brand and our identity but when I look and I see that you are now causing out special category for those employment centers of Mecklenburg county and Durhum county if for Wake county. I went back to look and to see what the would have meant we adopted those policies going back a decade earlier well, if you look at the data what is actually mean is there are 49 companies the probably would have come 8, 435 jobs that being have come 1.8 billion in actual investment that may have come and if you look at the multiplier fact there are three to four times that, that's $8-10 billion to the economic impact that's 50% of our budget close to it those things to me are deeply disturbing because not only are we turning our back perhaps on people like Volvo or Mercedes but if you look at that data, that data that is out there it says to me that we are instituting and adopting policy that would turn our backs on employers that come in to the States. All those things are deeply concerning, all those things said to me that we need to rethink some things we look at the fact that our biotechnology center that was established to get that industry going in the state that's done tremendous good and synovice[sp?] all types of bio technology opportunities and businesses, it's unfunded we won't be helping it out anymore. Now look at things like the [xx] institute, no longer being funded, some of the things I see in here in terms of policies [xx] certification, or embraced by programs that [xx] institute introduced and shared with all of us and some other things they have done in the past. So I get concerned when I get calls from all the district attorneys, from nearby counties, saying to me if they can be able to replace people may have to leave a people that may not be the best prosecutors but in fact like to replace some of these  folks but now, there's no longer allocation to their offices, now it's all going to be done in Rally administrative offices [xx] bed conserving to me. those are policies and initiatives that I think we need to rethink. But one of the things that I think we can do and ought to do, to help consumers in this state, is to bring back the sales tax holiday. The sales tax holiday, yes. That day in August when so many people in this state, regardless of their background, regardless of their income levels, went out and bought school supplies, when out and bought the laptops, or the tablets, or the calculators went

out there and stimulated our economy. That sales tax holiday was something that our businesses looked forward to more businesses, it's something our consumers look forward to. You see, well how significant was it in North Carolina, well North Carolina, that sales tax holiday, was a sec as big as sales of this day just behind Black Friday in sales that we generated. By estimating sizes we are looking at $230/$240 million dollars alone. And for that in mind, that I send forth an amendment Senator MCkissick you can send forth your amendment the clerk will read Senator McKissick moves to amend the bill Senator mcKissick is recognized to explain the amendment. This amendment will allow us to reinstate that sales tax holiday. So, how can we do that? There's one way we easily do it, you might notice in the budget this repeal of privilege licence fee that the banks pay, But it is not every bank in the state, it's only about 50 or 60 banks in the state that contributes for it, it's $12 million that comes in from there, and there goes a small amount that, well I would put it like this, if we were to take that 12 million and redistribute it to those consumers and those business but that still sets holiday that would help our economy substantially. In addition we're looking at a franchise tax rate decrease to dollar hunt down to a dollar, we increase it just by one cent, makes up the difference to about $15 million it's all I ask you to return that money to pockets to consumers in this state, you want to put money back in their pockets, it's an opportunity to do it you want to help those small and large business a like this is an opportunity to do it, if you want to generate economic vitality. this is an opportunity to do it and it's something that will be embarrassed by those of every political pursuation and every economic group because we all benefit so I ask for your support, Senator  Apodaca for what purpose to you rise? To send for the substitute investment.   Senator Apodaca you can send forth your amendment clerk will read Senator Apodaca moves to amend the bill, Senator Apodaca is recognized to explain the amendment Thank you Mr. President members as we were reviewing the budget bill we discovered on page 71 line 43 by 48 were written incorrectly they should be written to say at the beginning beginning in 2016 and then drop down to line four on the amendment and its say each even number year dealing with the support I ask for your support. Now by the way by voting for this it will cancel the former amendment. Is there any discussion or debate on amendment 22. Hearing none, the question for the senate is adoption of amendment 22 all in favor vote aye oppose will vote no, five seconds be allowed for the voting, clerk will record the vote.  Smith, Senator Smith no. 35 having votedin the affirmative and 14 in the negative amendment 22 is adopted amendment 21 fails, the bill as amended is back before the body. Do we have any discussion of the debate? Mr. President. Senator Stein, for what purpose do you rise?   To debate the bill. Sen. Stein, has the floor to debate the bill. Thank you Mr. President members of the senate, budgets as we all know represent priorities and priorities of this particular budget are upside down Fundamental problem with the budget is that it's funds over the next five years $3 billion and tax giveaways to large profitable corporations if fix pants in our school kids in North Carolina's middle class. And your leadership North Carolina has a found a 46 in the country and poor people in base line and K12 and is noted be Senator Robinson earlier behind South Carolina, Virginia and now they are neighbors. The budget not only compares fully against our neighbors it compares fully against our self as a state in prior years, now one Senator was concerned about using the base line of 0809 even though in that year we did not use a dine of

recovering money on public education, so I use this a base line 0708 for the recession. That year in 0708 North Carolina spent $900 more on each kid's education on a real bases. Now real bases means a county for inflation. Another one of my colleagues had some discomfort with the notion of inflation so what I would do now is compare this budget to a baseline of [xx] before the recession of use nominal dollars, non-inflation adjusted dollars and compare it. That year we spent $125 more on each kid's education in North Carolina, not even taking in counter inflation. This budget spends a fraction of what we've spent traditionally on text books, 100 million we spent [xx] and that was before we had years of back log. If any of you any time in public schools you know they haven't been buying textbooks for about the past four years, there's incredible need of textbooks. This budget does not make it enough, in fact it only does half as much as what the House dedicated to textbooks. We're adding 35, 000 new student to our public schools next year, and even though we're adding that you all are taking out 8, 600 teacher assistants. A little context could help I think. In 08/09 we are 22, 500 teacher assistants, 22, 000. Substantially fewer students 22, 500 TAs. Today we have 15, 364. Under this bill, you all are getting rid of 56% of those!  So then there will only be left 6, 772 TAs, that's a 70% reduction over the last seven years. I think that Senator Robinson did a very strong job of underscoring the importance of TAs. Imagine a kindergarten classroom with 17 kids and 1 adult. 1 child needs independent tutoring, another kid who has some special needs needs to go to the bathroom. There are 15 other kids who need to be educated. How is that one adult in that kindergarten classroom supposed to juggle all those competing needs? We are creating a recipe for teacher burnout, and for academic failure for our kids. This plan all but ignores our veteran teachers. Teachers over 15 years get 1.7% pay increase. Teachers over 20 years get a 1.1% increase, and teachers over 25 years get a 0% increase, in other words, that means nothing. Unlike the budget, this Bill does nothing to reward teachers who are [xx] who increase their knowledge and gain a masters degree in the field of their teaching if the goal of the budget is to chase out upstate to South Carolina, Virginia, Heck even Houston Texas comes here to recruit our teachers. If the goal is to chase out our experienced teachers to other states, you will likely succeed. On our community college students, this budget raises tuition again, 128 bucks that's a 6% increase. Since 2010, 2011 a year you all took power, general assembly is increased community college tuition $624, that's a 35%  increase. Medium family income in North Carolina, compared to the rest of the country is far we are now 47th in the nation, in medium family income. Our middle class families are working harder just to stay in the same place. They need relief and yet you are adding to their burden, by raising the cost of going to community college, which is their best opportunity to get a leg up in today's economy. Senator Smith Ingram noted, about the fee on driver Z exact same thing you are putting a $300 fee on middle class families so that they have to pay for their driver Z now, that is a $26 million middle class tax in this budget. On the universities, this budget actually cuts funding on a past [xx] basis at higher education. The universities are the best engine for economic growth we have in North Carolina, it is what that distinguishes us from other states. It continues your trend of

under investing in higher education, the budget mandates, 34 million in unspecified cuts to the university system over that's on top of 490 million in unspecified cuts over the past four years a grand total of $525 million in cuts, unspecified to the university system. We are moving backwards when we need to be moving forward, it is no wander we are loosing to other states of the university. Senator Brain talked about how the budget continue recent history in making it harder for young kids to succeed in life. Early childhood education is critical to our kids future success let us apply the best investment we can make of the state before the recession state funded 33800 slots for pre-K today we are down to 28400 slots 5400 few with them before the recession. Look I know economic growth in North Carolina has been anemic this year we are below the national [xx] were well below South Carolina. I know we're not growing the way we should but we have positive growth we're coming out of the recession, we should be trying to undo the damage the recession worked on our people, so does the budget make that for this 5400 slots and pre-k that we lost? This budget actually cut another 500 slots in pre-k, North Carolina pre-k, this budget does not get North Carolina to the national average in teacher pay, this budget does not provide teachers and student the textbooks and technology that they need, this budget does not hire more teachers assistance in fact it fires 60% of them, this budget does not award teachers who are in a masters degree, this budget does not keep a lid on tuition on community college students, it raises tuition. This budget does not invest on our university system, it cuts it on per student Basis, this budget does not help our children start school healthy and ready to learn, it actually cut the number of Pre-K slots. Why? Why are they doing all this things, because the budget includes perhaps better ways to launch profitable corporations and this year, it is more than 100 million and next year it is more than 500 million, over the next five years it is $3 billion, we will as a a state when we build our economy from the middle out, not the top down. This budget does exactly the opposite, it engages North Carolina in a race to the bottom by gushing out of space shareholders, if this spends of our school kids are teachers in the middle class. Let us vote this budget down and try again. Senator Apodaca for what purpose do your rise?  Mr. President after listening to that campaign speech and untruths I feel compelled to To gather to the restroom can we take a 10-minute recess please.  We will stand and recess for 10 minutes until 10 to 3. Senate will come to order, Sargent at arms will close the door as members will gather their sits, members and guests in the gallery make sure your electronic devices are silenced please. Senators upon the motion of senator Alexander Wake County, the chair is happy to extend courtesies of the gallery to 41 members of the American Legion Student Troopers who are with us. Thank you for joining us in the senate please stand and be recognized. moving back to House Bill 97, do we have any further discussion or debate? Senator Brown for what purpose do you rise? speak briefly to the budget. Senator Brown has the floor to speak to the bill. Senator Stein I had to respond a little bit some of your comments earlier and you're right when we talk about budgets and parties and where we spend it. I was looking at some numbers 08 note 9 we spent a little over $8.3 billions in [xx] through 12 education.

Since our first year it was 19 in the senate and again with that all priority and the first year you were here in the senate you cut $800 million educating 313 education and $7.5 billion dollars the second year you were here we decided to cut close to $300 million that is that was 7 point close to $10.3 billion dollars almost 1.1 billion dollars two years first two years you were here billion $1.1 billion first two years you were here. Since that time and 11, moving forward. Through the recession, working through the recession we have been able to raise that back over adds up to about $8.4 billion burn in this year so from 7.3 to 8.4 billion is what we have been to acomplish in funding and you notice for all and you have to work and you know who you are going to talk about numbers it can work two ways again obviously in back in those couple of years why was body public education we decided we are continuing with the session two and a half billion show to try to take care of that cart and stop adding bug to public education I think we have a very good job over there. Senator Stein what purpose your rise to debate the bill. Senator Stein you are the first to speak to the bil lthe first time I appreciate this comment Senator Brown, a couple of responses if I may, one is that the statesman education in 0910 and 1011, was actually 7.9 billion and 7.7 billion, which because we had recovery funds of approximately 800 million which we applied to public education, that's how we chose to use those recovery dollars. Now since that time, OK a little more context, the national recession that was caused by federal policies, that year in 08/09 we had a $4.5 billion deficit, 22% of the entire budget was in a deficit. So yes we cut some to public education, but we cut as little as possible. The difference is now, is that we are no longer in the recession. Today again the growth is anemic here in North Carolina, 1.2% but it's still growth, and there is money to be spent and what you are all choosing to do is to spend it on tax giveaways to shareholders of large corporations to the tune of $3 billion That's a choice you don't have to make, you can actually spend some of it there but let's at least hire back some TA's let's at least fill some [xx] let's at least get teachers to the national average, let's at least stop raising tuition on community college students, let's at least invest more in our university systems that's the choice we have today. The choice we faced four, five years ago was a four nap billion dollar short fall in the middle of the worst rescission since the great depression Senator Brown for what purpose do you rise?  Can I ask Senator Stan a question? Senator Stan do you yield? I do Senator Stan I understand I think you said four and a half billion [xx] so I guess you took fixed two billion of it and left two and a half billion for us, so with the two and a half billion we found a way to raise standing, but the 2 billion you fixed you cut through [xx] spending, I'm I getting that right? No you're not, because in in real dollars inflation You are counting [xx] dollars right? No I'm now counting the dollars that you faced and real dollars you all had 7.3 It's 7 billion and [xx] and then in year 2013, 7.18 and today it's 7.1 so we are spending less and real dollars then it was after the recession, after you took power I think you are I was told about interest and the concept of inflation, if any of you want to lend me some money, 1000 dollars today and 10 years from now I'll pay you back a 1000 dollars I'm happy to do that Sen. Brown propose you ayes. Can I ask Sen. Stan another question? Sen. Stan do you yield. I do. I think if poor people are standing I want to make sure I understand this as well because looking at

the numbers I think a 9, 10, 11 when you were talking about some of those. Yes. Once you include some federal dollars and that for people spending as well. I was. You were, so there are not apples to apples comparison is that correct? That's why I used this 708 when I was referring to  Sen. Brook so that all recovery dollars were out and in those 708 we were spending $5511 per student and today in those same dollars we are spending 4613 and if you don't like inflation, we are spending 5389 with is about $175 less than what we are spending as 708 per student. Mr. President another question. Sen. Stan do you yield for a favor? I do. If you takeout the $400 so we get an ample spending what will that be pespouded[sp?] in your first two years is here. I don't know the point is. It will be last. I know the answer. I'm fine with your answer it will be less. No is no because we chose to use those recovery dollars for the highest priorities which was making sure we invest in our school kids even at the time of the worst session and 75 years. Mr. President. Senator Apodaca propose you rise? Senator Rucho you have a question? Senator Rucho do you yield? Yes Sir. Senator Rucho I've been dealing with the budget for the last month or so, seeing who we could harm according to some folks. What is the unemployment rate? Sir it's about 5.3% which is 5% less than it was when we started. Oh! Okay thank you. Mr. President. Mr. President. Senators one second please, I think senators have a big budget in front of us, we still have a long way to go. We've covered a lot of history, but let's focus on today's budget, and stop going back in time because we have a lot to talk about just a day. So lets stay on truck with what we are doing in today's project. Senator Barringer for what purposes you rise? To speak on the bill, yes bill. Senator Barringer has a floor to speak to the bill. Ladies and gentlemen of the senate, I've learnt, and I've heard Senator Tillman said just on the floor that in every bill just about we vote Now the things that we like and the things we don't, and I will be honest with you if this would be final job divide by, I am not sure exactly how to vote, because the option things such as the sales tax distribution that does give me a lot of concern, however, there are some really. Really good things in this budget. Over half one of half of the $22 billion that we are going to be spending of our citizens money is being invested in public education. It is also a very sound and fiscally responsible budget. We are funding reserves for our rainy day so that when wind times come again and they always do, they are in the bible, we will be ready. The funds that are surely needed for the deferred repairs and renovation we've not been able to do on our public buildings and out university buildings are funded in this budget. and you know, we're not going to raid the Highway Trust Fund anymore, we're going to use it for what it's being collected for, building infrastructure, our highways in North Carolina, and Senator Robinson I agree with you that a society is judged I think the most on how we treat the least among us. And there's two things in this bill that I want to make sure that you're aware of. I know that Senator Davies mentioned that the ABLE Act is fully funded in this bill. This will allow families with disabled children to be able to plan for their futures, and that is in this bill. And I will tell you Senator Pate, one of the best compliments that anyone has ever given me came from you when he said, Senator Barringer, we didn't know anything much about foster care till you got down here and started harping on it, those were his words I want to talk a little bit more about foster care because it's in this budget. And it's an important piece of this budget. And this morning when I got up at 4 o' clock trying to figure out what I was going to say and how I was going to say it, I wanted it to be meaningful and so I want to share with you the story of another little girl that I encountered during my days in foster care, and I'm going to call for Shannon[sp?] and I can close my eyes and I can picture exactly the first time I laid eyes on Shannon[sp?] She was a little wisp of a girl look like to be about 2 or 3 years old. She had wispy blond hair the biggest eyes I've ever seen on any human being, but the thing that was the most remarkable was her skin it was absolutely flawless and merely transparent, she reminded me of an angel. I forgot to know Shannon I she wasn't two or three years old, she was six years

old, and that look that I was seeing was not an angelic look, it was the look of a child who'd been diagnosed and suffered from failure to thrive. She'd been abused to the point at age six, she decided she didn't wnat to live anymore, and it wasn't in any kind of rebellion, life just wasn't worth living for that child. But the good news about her is that she was placed in a foster family it was not in our home, but she was placed in a foster family that fought like the Dickens to get that child want to live again and they did. Now I'm sure you're asking why am I talking about a little five or six years old when what's in the bill that is so important is that we're not going to age out, we're not going to cut these children off at the age 18. But the reason I'm talking about Shannon is there are 10000 Shannon's in the foster care system now, and we're bringing a man they don't have a family any more, and we're giving them a foster family, we're giving them and then on the 18 birthday we are turning him out on the street. Turn on the math, asking where were you on your 18th birthday, now that was rhetorical I I'm not sure if some of you can remember and I'm not sure if some of you want to admit it. But I remember exactly where I was on my 18 birthday, I was most likely because I was a teenage girl working in a family restaurant on December 1st on Wednesday. And it was my 18th birthday and I was in that restaurant. And when you think about a family restaurant picture and Senator Daniel is in your district it'd not there anymore, it's called the country kitchen on Marion street in Shelby and it looked like the blue bird dinar form Mulberry even the plastic flats and the whole thing. Or for those of you who are not familiar with [xx] imagine how many of you if you've ever saw my big fat great wedding, it was like my big fat sudden wedding, we were all family and we are all working. But I was swollen because I 18 years old that day and I was [xx] to work. And I was working beside my mother, and I was working beside my aunts, and my cousins and we are all in their working do you know I thought I should have been out celebrating because I was 18. But here is the deal, In my age at this point, I realized I was the lucky as 18 year old person in the world. Because the day before that I had a family and I was working in a family restaurant, on my 18th birthday I had a family, and I was working in a family restaurant. The next day Thursday, I got up and went to school, my life didn't change at all, not at all. I had a few birthday wishes, but birthday cake my life didn't change at all. These children in foster care at age 18, their 18th birthday is not party, their 18th birthday is not even working in their family restaurant, it's catastrophe, it's a catastrophe and I want to thank the sponsor, the co-sponsor, there are many of you co-sponsor that build Senator Herrington[sp?, Senator seen how she worked really hard on this too, we got to do better for them, This bill allows these children the option for not making him do it but the option of staying in that family or going to college or going to community college or workforce program until they are 21 and ladies and gentlemen that's one of the very best things we can ever do I urge your support I thank all of you who have supported this so far and I appreciate you listening. Sen. Cook what purpose do you rise? To debate the bill Sen. Cook you have the floor as senator Berger just said this budget has a lot of good things, most tax payers will be helped by this budget, our education Will be improved, health and human services will be improved, their is a lot of good things, this budget encourages the development of North Carolina's agriculture industry, it spends a little over $2 million  to support ouster development on our coast which will resort in $70- 100 million  future industry. This budget provides an additional 16.6 million over the biennium for dredging of our coastal inlets including deep draft dredging at our state ports. A resent economic study of the Oregon inlet under the Burner bridge and the other banks indicated that I consistently open the Oregon inlet will produce 4348 jobs and $548.4 million of economic impact annually.

for all this I am grateful. However, the sales tax redistribution proposed in this budget will unfortunately place a large burden on two other counties that I represent Derick county and Carteret. The potential reduction of sales tax revenue in Derick County would be $10.2 million in a few years. This reduction represents 10% of their budget. The municipalities in there will also be facing several million dollars in reduction. Carteret is looking at a caution reduction of $2 million. These Caswell counties have seasonal economies and that means the population growth is 10 fold in the summer. This growth means these counties must provide services with their large seasonal populations. Much of the money used to provide the actual services required comes from allocated sales tax revenues. The reduction of these revenues will put these counties in a very difficult situation. Overall, this is a good, but the sales tax reductions aspect is destructive to two counties that are in my district. I know the budget will pass. I can only hope the conference between our two houses will be able to correct this problem, thank you. Senator Smith what purpose do you rise? To debate the bill. Senator Smith you have the floor to debate the bill. I was very disappointed to see that the senate budget did not concur with restoring the historic preservation tax credits. These tax credits create economic opportunity To your cross out state turning all buildings into new centers of development. Since 1998 projects using state and federal historic tax credits have brought nearly one and a half billion dollars in private investment into our state. The tax credits have helped to transform historic factories have to lease hospitals, farms, houses and storefront into energetic office spaces in gauging event event venues and created small businesses. Official say 2483 projects have been held by the start tax credit and projects have been carried out in 90 of North Carolina's 100 counties. A non-Patterson study of the state historic tax credit program projects that the credits would attract two and a half times more jobs at the same cost to the state treasury as an equivalent across the board tax. These tax text business credit were used by business and home owners who owned historic properties listed in the national register of historic places to preserve their buildings within the defined guidelines, the tax credit are taken after the projects are completed when the owners file their taxes. No state money's are used upfront for these credits, but rather owners pay less at the time taxes are due. Non-economic impacts of the historic Tax Credit Incentive Program including, quality of life enhancement such as the re-use of iconic neighborhood schools, downtown revitalization, and affordable housing. Buildings rehabilitated with those historic tax credit are often land-marked buildings in communities and vital to the communities identity and attractiveness to residents and visitors alike. If there's safe communities by reversing crime and rehabilitating they can't our devastated buildings gives criminals fewer places to hide and engage in their criminal activity and it decrease angry bride for caring for building that would detract from neighborhood stability and property values. The economic and impact of this projects comes in the short term through the construction phase employing construction workers in the community and long term that they operate businesses that locate in the nearly rehabilitated to historic buildings, the economic imp[act last longer after the tax credit are exhausted with the additional revenue generated back to the state general fund through withholding an income taxes from the construction workers and the permanent home site employees and from sales taxes from the

construction materials and the only side sales of good, this rehabilitation To provide a direct net benefit to the state general fund, they not only bring they can under utilize building back to life but also dramatically increase their property values and local property tax revenue from them, for example the lake Forest biotech place down town slime that was located in what was old Archie to back a warehouse property tax evaluation went from 3.7 men to 59. 4 million a 16 fold increase the credit well understood by banks and financial institutions and is considered to be an equity and building the would otherwise have zero value pre-rehab there is no other less risky more efficient way for our state to encourage our heritage buildings than the state historic tax credit. Out of state investors have been attracted to North Carolina for this innovative particularly for reuse of abandoned manufacturing properties currently all of our neighbors have state historic tax credit programs In my two rural counties, this tax credit is essential for restoring our small towns and industrial buildings. Our communities have suffered tremendously from the loss of textile [xx] backup business, and many down towns have been deteriorating. To restore building is a risky venture without the incentive of the historic tax credits, I know we passed a bill earlier this year that will allow counties to fund search development, and I approved that bill but is as stated at the time, this does not replace the historic tax credit because most of North Carolina's counties, simply don't have the funds to do this Mr. President Senator Apodaca what is your eyes? Mr. President we are going to have to displace this amendment an amendment okay now I am just speaking on the bill Okay cause we voted that down once I'm just wondering why we are re-arching history Senator Smith you can continue. While the tax credits are accredit, I'm contending they are not a handout but in any way. The tax savings afforded the developer in this legislation to make a historic renovation possible. The revenues supposedly losed are certainly regained many times over an increased property value building reinvestment, job creation and just an overall sharpening arm for this distressed down-towns. I would hope that they can be added back to the budget through the Conference Committee Sandra Parker for what purpose to you rise? Speak to the bill. Sandra Parker speak to the bill Ladies and Gentleman, the senate and Mr. President, thank you for the opportunity to speak on this bill, we have listened today the negativity of this budget and the things we are not doing, Senator Smith, there are things in this budget that I don't overwhemingly like and perhaps I can support historic tax at some point in time, but we have failed to mention one thing that we know that Senator [xx] if we could fund education, if we could fund textbooks. Senator Smith Ingram we can do all this things since 2011 we have spent 2.4 billion dollars on state funds on medicate. Medicate ladies and gentlemen is 1000 pound gorilla in the run, that prevents us from extending additional dollars to all categories that you've spoken about today. Medicate reform is in this budget. Senator [xx], Senator [xx], myself and staff have worked very hard to come up with a plan. No matter who's in control, no matter whose the governor, if we don't get our arms around this, we're not going to be able to fund a lot more things. No matter again,  who is control. We base this year in this budget is $ 311 million. Next year is $ 439 million. The following year who knows what. The house has come forward with a plan to take five or six years to reform Medicaid. Well I submit to you in 4 - 5 years Medicaid rebase would be billion dollars. We have the King Bowell decision coming up in the Supreme court. If those folks lose their subsides there could be another hundred thousand people, that do want Medicate, and ladies and gentlemen Medicate is an entitlement. We have to fund it and we have no choice. And when we fUnd Medicare with no choice, we take away

from other good things, that my colleagues on the back row and all of us who are here I would like to fund  many things than we did, but I can tell you that Medicaid is critical, and Medicaid reform is critical in this budget, to me having worked on it, and looking at the potential numbers five and six years down the road, here is the most important thing we do in this budget, therefore, I commend this budget to you and we will be, even though there are some things in it, I may or may not dislike I commend to you and we get a handle on Medicaid, and I commend this budget to you for your support. Thank you. Mr. President. Sen. Brock, for what purpose do you rise? To send forth an amendment. Sen. Brock for the amendment. Clerk will read Senator Brock, moves to amend the bill Senator Brock is recognized to explain the amendment. Thank you Mr. President, last year the Senate budget we put in a provision, currently the local school boards are the only elected officials go to mandatory training year round. No other elected officials have mandatory training like this, we just allow this option. Maybe some of them can go to the School of Government if they want to. If not, it will probably help save a bunch of our counties a lot of money, instead of sending our school board members to school year around, I urge your support.  Do we have any discussion or debate on the amendment? Hearing none, the question before the senate is the adoption of amendment 23, all in favor vote aye. Opposed will vote no. Five seconds will be allowed for the voting. The clerk will record the vote. Apodaca, ay, Stein 44 having voted in the affirmative and 4 in the negative amendment 23 is adopted. The Stein aye, amendment 23 is adopted, the bill as amended as back before the body Senator Turker for what purpose do you rise? Discuss the bill. Senator Turker has the floor to speak on the bill Thank you, I just first of wall want to share the same comment that Senator Ballinger and Turker that we all recognize this thing in this bill that posses heartburn and always will be. But this, my comments are really directed to the pages. Because you're watching and and singulating the most important activity we do in the senate is to create this document. Since Thursday this document then recreated four times. This document's been gone for over five months. It has knocked several days of work, and says over that time of the hundreds of people that have worked on this you have hundreds of men hours of work that has gone into creating this. As the Senator O'Brien pointed out, it's about priorities. For those of you, and when you get old enough to go to to college, you maybe fortunate enough to go to Harvard like Senator McKissick and Senator Tine and you'll encounter a professor in their MBA program by the name of John Cotter and he just signs the leadership. And I'm going to give you that definition about like the define, I want you to look at the very inner circle in this room. This is the leadership that has guided the creation of this document. And [xx] defines leadership as the ability to persuade and influence others in a common vision and direction, and watch this budget do. Let's not talk history talk about where we're right now. We start coaching teachers in education. I wasn't very good on recess, I usually went out and played, but on this one I looked up a number, and non of you think required me to to do math Senator Ingram because I don't do math very well, so this is just a hard number. In three years since being here, we were ranked 48th in starting teachers salary we pass this budget or something close to it, we would move to 23rd, that puts us all the way from the bottom to over halfway in the top two quarter that is the fastest movement that's gone on in two decades, you look at what senator Rucho has done in the tax policy that we put in place, we had a two deficit, we have a $400 million surplus. We could argue whether those are accurate or not, but it's the same people calculating, reporting those numbers. What Senator Tucker reported, that we haven't even gotten into two major organizational restructuring, restructuring a government organization departments, HHS what we would is Medicaid which will prevent with about a 98 degree of certainty that we would never have a $2 billion overrun, even this entitlement grows and it's the solution this gentlemen have been able to create in this path helping them, that is an amazing protection to us and our budget process as we go forward. We've done things around Rainy Day Fund, R&R, things that we've not been able to fund that we've turned and completely done 180 degree ability to fund and plan for the future. So we don't have things biting us, unbeknownst  to what we're doing it. The other big area is going to be IT.

Everybody, we're playing with I Pads, or texting each other of the time. IT is absolutely fundamental to the success and efficiency of running the state and getting it crossed. Restructuring IT which is in this bill, under senator Haisen, Senator Broake internet work, will in first year, reduce our spend $30 million.  We are doing what we promise to do, which is what the senators mention, to reduce the size of the government and still things going on.  The last thing I want to leave you with is the time is this document, when we pass this or decline it today in the next 2 days this week, this actually isn't the budget that is going to become low that why you understand the process this is going to be forward working in conjunction to our college in the house who has put this to us who continued be negotiated modified then proved cause it is a great it does great things for the state and is going to get better over the next few week that we ultimately on the budget that we announce in this law thank you. Senator Lowe what purpose your rise. To speak on the bill. Senator Lowe has the floor to speak to the bill the North Carolina film industry saw another banner year in 2014 with more than 316 million spent in state on movie, television, and commercial production. As stated by Guy Guster, North Carolina Film Office Director, the film industry pumped money into to the economy of more than 1/3 of our counties. The benefit was felt in Haywood, Onslow, Guilford, Forsyth, Mecklenburg, and Wilmington, and Charlotte. It was a boast for the workforce, the business that provided goods and services and the residents from Asheville to the Outer Banks, who'll speak with pride in seeing their communities in the spotlight. The film industry is also a major part of North Carolina School of the Arts which is in the City of Winston-Salem and there's also a hope that we can create a larger staging area on the old Rentals Tobaccos company property which will generate more jobs and business productivity. More than 50 production registered with the film office and filmed in North Carolina in 2014. In 2015 less than 3 has registered and filmed. I have also been told that in Wilmington North Carolina in 2014 more than $150 million was impacted to that economy, so for this reason we're seeing time and time again high quality and good paying jobs pass over our neighbours in other Southeastern states. If we truly want to attract business to the State we have to continue to support initiatives like the film industry so that we can build a better economy in North Carolina. I am certainly concerned that we find a clear cut way to have a more robust grant program in conference when this is discussed, thank you for your time. Senator Lee for what purpose do you rise? To speak to the bill. Senator Lee has the floor to speak to the bill. Senator Row there's no one in this chamber I think has felt the impact of film more than the hand of the county in my district, all the way it does benefit the state as a whole. We've had one recent production and spent $24 million, but 544 vendors in North Carolina in period of 32 two weeks.  We had another production that spent 9 million with 310 vendors in13 weeks. I can go through these statistics over and over again and like some of the others senators have sat in this room, this is a package and I'm hopeful that as we move through the conference process that we can not just increase dollars under film grant program but there's some other tweaks to the statute that we could make that could help a stable crew base in North Carolina, not only, we've lost some of that so hopefully we some of that back and then maintain it. One thing it's not talked about when you talk about film is a lot of folks talk about California and big productions, but I will tell you that the Film Grant Program in North Carolina is the only business incentive program for small business. If you get a small business for film.com it will show you over 700 businesses that directly benefit from the film industry in North Carolina, I can go on and on, UNCW has now a film school program which is an excellent and incredible program

that's putting out great graduands, but I'm too hopeful that during this [xx] process that we can see some additional support for such great industry thank you. Senator Jackson for all purpose you arise? Speak to the bill. Senator Jackson has the floor to speak to the bill. Let's talk about something we all agree on. Everyone in this chamber agrees that we have to work harder to broaden the reach of our state's prosperity. A little while ago we had a strong call from Senator McInnis, he said we need jobs in rural North Carolina, and he's right. North Carolina has a remarkable economic future ahead of it, and we owe it to everyone to make sure their story is part of that future, no matter where they live. It's a humbling challenge, and tackling it will need striking a balance between leveraging our high growth areas, and lifting our lower growth areas. Senator Gunn talked about taking a balanced approach. Senator Barringer talked about a team effort. We may not know all the answers but we know that's the way forward. was apart of this budget that attempts to grab this issue by the horns and really give it a pull, and it deals with how we allocate sales tax. There's a big debate about whether this proposal strikes the right balance, a lot of folks including myself were concerned about the long term consequences of pulling this hard on this lever, but for a moment, lets put that question aside. Regardless of what you think about the reallocation idea, and I shared the concern voiced by Senator Barringer and Senator Cook, the worst case scenario is not that we pulls tens of millions of dollars out of our high growth areas. The worst case scenario is that we pull that money out, and then we don't get the economic development we need in our lower growth areas, we can limit the risk of that scenario recurring by addressing one line in this bill. This might comes as a surprise to most of you, but right now the new sales tax revenue that would come into the [xx] counties can't be spent on economic development, it's a placing of the statute the way it's written. The language of the bill is very clear, some page 495, those [xx] received by a county from the allocation must be used for public education, and community college purposes. Now those are good purposes, but if the highest aim for these funds is economical growth, and we should at least give these counties the option to use those funds for economic development. With that in mind, I's like to submit an amendment. Sir you can for the amendment, clerk will read. Senator Jackson moves to amend the bill. Senator Jackson recognized to explain the amendment. This amendment only add three words to the bill, and economic development, it doesn't restrict the use of these funds in any way doesn't cost an extra penny, all this amendment does is give our counties the option of using these funds for economic development. Richmond and other and Rockingham have different economic futures, let's allow them to decide whether these funds should best for use for public education, or economic development. Senator Brown for what purpose do you rise? To speak to the amendment. Senator Brown has the floor to speak to the amendment. Senator Jackson you and I briefly met to talk about this earlier today and, the way the language was written was an article 40 that 30% had to be used for public school capital and article 42, 60% had to be used for capital. In the bill we loosen that up to say that it had more flexibility to say they could be used for public education or community college purposes. So listing that from education, what you're asking I guess is to extend that to economic development, I guess the question I would have to ask and have a little hard time with, is from all the talk I've heard today about education money, I'm not sure why you would want to cut education money after listening to all the talk today, again this is making it flexible for education, I think again cutting education dollars for economic development, I'm not sure this is the place to do it, so I'd have to ask you to vote against this amendment Senator Jackson for what purpose do you rise? To speak to the amendment. Senator Jackson has the floor to speak to the amendment. The share of the pie that's going to go to the rural counties under this proposal is going to go to from 25% to 80% it's going to more than tripple. There's not going to be any money taken from public education. This is an opportunity to create jobs in rural North Carolina, for all the talk I've heard about creating jobs in rural North Carolina here's an opportunity to do it, it doesn't cost you any money games, three words could change the future in rural counties across the state tens of

millions of dollars for jobs in rural North Carolina won't cost you anything and public education wins. Senator Apodaca for what go purpose do you rise? Speak on the amendment. Senator Apodaca has the floor to speak to the amendment. I want to talk about something I know a lot about, and that's cutting up pie. If he got a pie, and you cut that pie into two pieces, they're going to be pretty big pieces. Now if somebody else say that and a government comes over and wants a piece of that pie, and I got to cut up in three pieces, well, we're all going to have less pie. That's just a reality so vote for this amendment and against education that easy. Any further discussion or debate on the amendment? Hearing none 23. All in favor of it vote aye. Opposed will vote no. Five seconds will be allowed for the voting. The clerk will record the vote 15 having voted in the affirmative and 33 in the negative, Amendment 24 fails, the bill as amended is back before the Body. Senator Tucker, for what purpose do you rise? Send forth an amendment. Senator Tucker, you can send forward your amendment. Yes, on the dashboard, Sir. [xx] read.   Senator Tucker, moves to amend the bill. Senator Tucker is recognized to explain the amendment. Ladies and gentlemen, this is a reflection of what our priorities are, this amendment would help fund transportation for the Project Healing Waters Fly Fishing Program. Project Healing Waters Fly Fishing Program. This is a program that has been enhanced by a high school friend of mine who at 15, jumped in a swimming pool was paralyzed and has been paralyzed help others who are in the same situation. So what this is, is a funding of $25, 000 for 2 years in a row, for transportation, for disabled veterans. The invariable in senator Meredith it's district at the Peckmen center they teach disabled veterans how to fly, and then they will take these dollars to use however to transport these disabled veterans after they learn how to cast, and fluffish[sp?] which I did not know how to do. We will use these Dollars to transport them to Western, North Carolina, the live trout streams in Virginia and Pennsylvania. And this will help these program greatly and I ask for your support for this amendment, and this budget, thank you. Is there any discussion or debate on amendment 25? Hearing none, Senator Davis propose your's? Will the gentleman are you up for a question? Senator Tucker do you yield for a question? Yes sir. I'm just looking in disappearance with this to be administered through the department? But the newly developed department. Well, the new department is not been formed yet, and we'll be transferring funds from DOA to the new department. And so, when that transfer takes place, this funds will be transferred to the Project Healing Waters at the same time. Any further discussion or debate? Senator Tillman for the purpose of your eyes. Question for the Senator from Union Yes sir,  Are we starting a new program or are we doing a two year deal? I know we were funding it 25 thousand for the transportation of this folks for two years, after that two years, will this be a continuing program at a community college? Or what happens after that? I was setting up a new program for a moment? Very well sir. No sir this are non recurring dollars, it'll be for the two years, and then the [xx] Department of Military Affairs are under their Governor's cabinet if he can chose to fund this project or many others this is only two years and non-recurring funds, so we are not setting up a new long term program. Thank you, Senator. Is there any further discussion to the debate? Hearing none, question for the senators is the adoption of Amendment 25. All in favor vote aye, opposed will vote no. Five seconds to be be allowed for the voting, clerk will record the vote. No, Aye, Clerk, Aye, 49 having voted in the affirmative and zero and the negative amendment 25 is adapted bill as amended is back before the body. Senator Brown for what purpose do you rise? To speak the second time on the Senator Brown has the forward to speak a second time.

Several times a day there's been a little bit of mention about How sales tax is going to be distributed across the state. And I just wanted to talk about this a little bit because I think this session has been come over passion for me then probably anything that I've heard in my 11 years of being at the senate. You may have read Bryant Lane, Bryant article and some of us commented on this about how this would do more to help North Carolina in anything that we've enacted or tried to put in place and many, many years. And I truly believe that's true. For us to just think there is not two North Carolina's I think we are really fooling ourselves. Because I can promise you they are two and whether a fortunate or unfortunate I am not sure but I've gone one county Oslo which is a growing county doing well and I got one county that if it's not in the bottom two three as far as four counties go, I feel sorry for those who blow it. So I can truly see a difference in what a wealthy county can do and what a poor county can do. I can tell you, if you go to senate Smith Ingram, Senator Smith, Senator Davis, both Senators Davis, Senator Mclnnis, Senator Hise, Senator Black, Senator Randleman if you go in those Districts and kind of just take a look at what's going on in some of those poor low wealth counties and spend maybe a week, maybe a few days is all it will take, I think you will get a better understanding of what's really going on in some of those low wealth counties. I've been doing a little survey on some of the school situations in some of those counties in the last few weeks and just give you some examples some of them with mode problems or having situations so they can't use classrooms, that's just one example. One example I know in Jones County the gym got condemned and the county found enough money to build a gym to replace it but they couldn't build a school, and I had to borrow money for 20 years to pay for the gym. Some of you have counties, Senator Waddell, Senator McKissick, similar to me. You've got a fairly wealthy county and some of these poor low wealth counties, and I can tell you I think you feel like I do when you go from one to the other, it's truly a dramatic difference. The thing that you got to remember is in all 100 counties certain things don't change. One is the county is responsible for school construction. Another they're responsible take your supplements, another they have to build their jails and court houses, they have governed Suwanee just like any other county, and I can tell you in most of those counties, I got six schools in Johnston county, two of them are still, they have no way to run a burn referendum because once in property tax, we have $75000. So try to think that putting a burn referendum to gather to build a school. $75000 it's what one cent generates. I'm not saying that this sales stacks pays to fix all the problems, because they are so great but I can tell you if we don't take some kind of measures to address this issue, this problem will not get better, it will only get worse. Northampton county, [xx] of their budget is on sales tax, that's a [xx] because I have nobody spending money in their county, they all leave Northampton county and go spend money somewhere else, and the some system is set up today, a county that they had spended in, just to keep 80 percent of those dollars, and Northampton county continues to lose population and struggle and can't do things. It's one of this issues where sooner or later I think we will have to fix the problem I'm not sure how you fix it I just know that the longer you put it out the cost to fix it, will get greater and greater and I know the divide will get greater and greater and what will probably happen is how to light my county [xx] losing its population. Senator SMith-Ingram you got counties losing population and those people will continue to just leave and go to other areas in the State because there's nothing there for them, they

have no reason to stay and I've looked at some of the dollars that have moved around and everybody fights for their reporting district like you're supposed to I understand but sometimes up here we do things maybe it's the right thing to do and in my opinion and in this session let's be one of the most important things we do this session because I promise you it is a serious, serious problem in the state on getting worse, Senator Clerk you're having a unique situation in Dare County, I understand that but Dare County gets a dollar 49 cents for every dollar it collects, I don't know how that happened in past history, how it got called up, how they got that special fees but and Senator Smith she's got Columbus County it begets 81 Cents for every dollar it collects, how fair is that? That is not fair to Columbus County, a full county this sale, would you say Columbus County is worse off than Dare County? I think most would, and yet Dare gets a dollar 49 farmers gets eight cents on the dollar, how fair is that? Is not fair at all. This is a tuff issue, going forward, I thought it should be 100%, because it's that big of a problem, and working and trying to negotiate what people can live with 8020. And for some counties that will help, this is not going to fix all the problems but it's a help with only a larger counties is saying giving up a little bit, but I believe that no [xx] and just about every case I believe that [xx] to be [xx] it's less than 1% of [xx] of property tax. In most cases is like one-tenth or two-tenths of one cent of property tax, is what I'm asking people to give up, to help some of these four counties and if we don't help them, we're going to help them in another way it's probably going to cost us more in different ways. Again, I don't happen to be more passionate about one thing than I am in this particular issue because I can truly see the difference, and I think Senator McKissick, Senator Woodard, I think you know exactly what I'm talking about because you've got the same situation. Senator Cook, you've got it. The county you live in Beaufort County, totally different than Dare County, you're dealing with it there. You got six counties that benefit in this, one it breaks about even, one it loses is what you got. So I just wanted to talk about it because I know it has been a tough issue, it's been in the news a lot, but I just appreciate your support on this, and again, I just can't tell you what it will mean to some of these poor counties. Senator Ford, for what purpose do you rise? Debate the bill. Senator Ford has the floor to debate the bill. Thank you Mr. President, ladies and gentlemen of the senate I was not going to speak this afternoon, I know it's been long but a couple of things that senator Brown said that really stuck with me because I have a tremendous amount of respect for him for what he's been able to do in his private life and his representation of the counties that he represents, and I listen to him tell passionately about his account of this and I know he cares about the cities, but guess what folks? So do I. I happen to represent a portion of Mecklenburg county and this portion of the bill, senator I am not afraid to tell you it's not a little bit of money, it's $42 million and you can shake it off and debate it about the numbers all what they are, you can then find with senator Rucho because I got them from him but this plan attempts to make weak. county strong by making strong counties weak. You're taking resources from the urban counties, from men and women who get up and go to work every day, who pay their taxes and who try to be good citizens. I've been here this is my second time, I understand that we've got some counties that need some help, but taking it away from the counties who have resources. And I'm quite surprised as Republicans that you would be involved in the redistribution of wealth. You're talking about a socialistic principle taken from somebody who has to give to somebody who doesn't, and the well, reality is, what are these low wealth counties want to do with the money? What jobs that they want

to create, how are they going to figure this out if they haven't figured it out already? I struggle with trying to help and I want to help, I want to be a resource, but to do it in this way is not the best way because you're hurting one county to help out another. And so, Senator if you want some ideas I'm open because what you could do, you could use state resources to help out lower counties. we're giving away billions of dollars in corporate tax giveaways that they did not ask for. We are already competitive in the South East with our corporate tax rates, going down to 3% sounds good, but folks it's going to have an economic impact that is going to trickle down to our cities and to our counties by the way of a property tax increase, we're not solving problems here, we're creating them. Ladies and gentlemen of the Senate I know we're better than this. If we slow this thing down just a little bit, we can provide some collective solutions together, work as a team, I don't want to walk against you. You see my voting record this session, I want to work with you but in this instance you're pushing me too far. You're causing me to have to bring some unnecessary financial burden to Mecklenburg County, and I can't go home, and I can't do that. Senator Brown for what purpose do you rise? Can I ask Senator Ford a question? Senator Ford do you yield for a question? Absolutely. Senator Ford we passed out some charts that really showed all the counties, and I just want to make sure you look at those charts because I've looked at it and through the phase in for Mecklenburg County, Mecklenburg County Improve the phase only this is $8 million and that's 8 million out of a $1.7 billion budget, which is like less than one tenth of 1% of their budget, I have just learnt make sure you had seen the numbers correct. Thank you I think for the question but the information that I received like I said from one of your colleagues in leadership shows an 18% loss at $32 million at the 820 plan how would you guide to straighten that out? And so if is a discrepancy I'm open again, I want to be flexible and where I can take this back to Mecklenburg County to help sell it to benefit low wealth counties I am open to it but at $32 million sir it's not an option. Senator  Apodaca for what purpose to you rise?  To speak on the bill Senator Apodaca has the floor to speak to the bill.  Thank you Mr. President here again we have Math issues on the back row eight to 32 to wherever been helped by some of people I'm sure the ones that dislike it the most are the one's that live in the big six, the ones that live in the small counties that are struggling we just go to the big cities and spend our money. You know, we got to help everybody folks, and the definition of economic development is not just handling people money. I mean seems like that's what many of our folks in commerce like to do. We will handle money if you come to us. There's a whole lot more to that. Somebody mentioned education, well we do have a good education system, I disagree with those in here that say it's not, we spend a lot eat money on education, we've heard the [xx] standing around but let's be honest I think it's either seventh or eighth in the nation with actual tax dollars that we spend towards education forks that's a pretty good record it really is it's not good for us to stand round to make something add something to this because that runs people out, everybody was talking about why run business office, we do this, we're going to run business it is often we do that [xx] still coming and our image outside North Carolina and I encourage that that you have traveled around, because, I live right on the border of South Carolina, and the [xx] article Senator Tillman of the day about the teachers leading South Carolina it was amazing but in here you would think all our teachers are going there, also had an arresting statistics that had been able to verify. I think what how many win [xx] to about

45 or something  that's cool, that's cool so you know I'm from Texas and I don't want to live in [xx] so I prefer [xx] moved there well I'm not but as we talk about courts of our state I want to talk about West of North Carolina for a moment you know, we do a pretty good job here looking at Central North Carolina. And Lord knows we do a pretty good job of looking after Eastern North Carolina, but but we seem to neglect the west some time. And one way we neglect the west a little bit, and I think Senator can back me on this one. We have a shortage of doctors. We have a true shortage of family physicians and general all surgeons, as does a lot of the United States, and a lot of other places. But in North Carolina, Central North Carolina does pretty well medically. East and North Carolina, has East Carolina University of Brody Medical School, and we are giving them an additional $8 million. Be sure of that. What I'd like to do for West and North Carolina, is to have more residents in the surgery program, and the General Practitioner Program or the Family Medicine, whatever you want to call it. And I want to thank the budget writers, they were generous enough to find this, luckily about $6 million, May heck Senator [xx] and I we think a lot of May heck to do a great job in West and North Carolina, they said they need 10 million, to boost the program up, to the level that needs to be and to really make a difference with doctors in West and North Carolina, so I have being looking high and low of a place to find a little more money and I think I come up with something for ammendment. Senator [xx] Senator [xx] to send forth the ammendment. The clerk will read So after that I move to remove the bill Thank you Mr President, members I was working for a [xx] money and if there's one thing in North Carolina we have no shortage of these lawyers, so I think we should take $3 million from the University of North Carolina Carolina Law School and put it towards the MAHEC Program in Western North Carolina for more doctors. And I just aks for your support thank you do we have any discussion or debate on the amendment? Senator Jackson for what purpose do you rise? Speak to the amendment. Senator Jackson has the floor to speak to the amendment as a graduate they would be deeply ashamed if I didn't even speak to this and I don't know what to say really because it's a worthy idea, you're trying to do a good thing, but come on now y'all in all seriousness if this is a worthy goal, if this is something we need to get behind, let's find a way to do it that doesn't bury the state's flagship law school Senator Hise, for what purpose do you rise? To speak to the amendment. Senator Hise has the floor to speak to the amendment. Thank you, Mr. President. Members of the Senate quite simply we can lay out report after report that has come to oversight committees and others where we have a shortage of healthcare providers in this state, and most importantly we have a shortage of healthcare providers that will serve in rural areas. Some from other institutions don't have a good record as serving in rural areas. Now quite frankly we all know that the law school can absorb this nothing will change. That's their funding. We don't have this shortage of lawyers that are out in this state. I've never been all across by district never heard if we just could get some more lawyers in my district or that we could fix this problem. But quite frankly that's true with medical professionals. It's why that we've tried to work on even extending the scope of nurses, so they could begin to provide some of those services in rural areas in western North Carolina, but a crowning jewel in some of this small communities could be to get one more primary care physician that will practice in their area and provide those services, and so I ask for your support for this amendment. Mr. President. Sen. Bill, for what purpose do you rise? Inquiry Of the appropriations chair, the lead chair Senator Brown, do you have a question?

I do Senator Brown as the appropriations Chairman and having gotten the report from the sub committee on education, have the chairs of education, consulted and then confirmed about the impact that this will have on the overall, UNC law school budget and you know what that positions and what is yours. Sen. Bull, I have not. The only thing I can say is with amendments I have seen today, I think they can be true on a lot of the amendments I've seen today, so I don't know this one is any difference than several I've been able to see today.  Follow up. Senator Brown, do you yield for a follow up? Yes What is your position on this amendment. Do you favor the adoption of this amendment?  I'm trying to figure that out as we debate this amendment. Mr. President Senator McKIssick what purpose do you rise? Likewise to see if Senator Brown will yield for a question. Senator Brown do you yield? I do Under the rule Senator Brown that has been established, if you wanted to take some [xx] that was in education, you need to stay within the education budget to get for one component education, reshift it, reprogram it to another, likewise we're now talking about health care needs Senator McKissick I think many of your members have introduced amendments today that would do exactly what you are talking, and we decided we would let those go and just have them debated, and this one is no different that some you've introduced today as well Follow up if I could Mr. Speaker Sen. Apodaca for what purpose your rise? I need to shade some light on Senator McKissc's question if I might Senator Apodaca Can I answer your question please? Yes that's how we got help for [xx] Senator Abubakar do you have the [xx] Thank you Mr. President. Also I am senior chair of the education budget committee [xx] we've discussed it. Senator Mckenzie, there is a non item already in the budget in the education section appropriating monies to Mayshire so this is just an increase in that line item, it is staying withing the education budget and follows all rules set forth by the appropriations. If you just want to speak briefly on this. So just to give a forward speak to the amendment. Well I understand the need and support in concept the idea of providing opportunities for doctors, who are licensed doctors and practitioners into Western part of the States, recognize the fact that there may won't be insured I also know the University of North Carolina Chapel Hill is indeed that flag ship institution of our university system place that need resources that are required to meet their problematic needs, we have not heard from the Law School. At the same time, we know that when we make this type of random cuts, they frequently have unintended consequences. Now I'm not standing up to say that Law School can survive without it, I don't know if they could or if they couldn't, but I would prefer if this was an item that could be addressed when the conference committee actually meets and confers since it has already lined items for both within the budget as opposed to moving around at this late point in time. I also from observation would like to point out that if we were not repealing that privilege tax that the main authorities pay, they're already paying it, they've being paying it. That's $12 million, if we wanted to go back and adjust that line item in the budget, to create these extra $3 million, we could easily do that, if we allowed those 50-60 banks to keep paying it, we'd have an extra nine million after making these three million appropriation. That is a lot of creative ways that we can go in there and fund this need, put doctors in our mountains without having to shortchange another educational institution. One thing I'd also like to do Mr. President, is this, there was an amendment number 22, I'd like to change my vote on that from aye to nay. Senator McKissick changes his vote on amendment 22 from aye to nay and the final count was 34 to 15 Senator Pate for what purpose do you rise?

To see if Senator Apodaca would answer a question sir.  Senator Apodaca do you yield?  Yes sir. Senator Apodaca your amendment intrigues me and how you want to help out the medical situation in the west, would you consider a friendly amendment to your amendment that would allow for vote the school of Medicine to have a slight increase as well that way maybe we can keep 80% of their graduates in the east other than 70? If we need to put that in the additional 8 million we have already given them with some others, yeah I'd be happy to take a look at that senator. Mr. President if I may speak. Senator Apodaca has the floor to speak to the amendment. Thank you let me go a little dipper here into our analysis of the University of North Carolina School of Law basic fiscal analysis shows it's actually making money with what it's receiving for per pupil tuition and for what they are charging for out of state folks, they are making a profit. Also they have roughly a $40 million dollar foundation trust, whatever you want to call it set up, so I think we can rest assured they'll be able to turn out as many lawyers as they did last year, next year. I ask for you support.  Senator Curtis for what purpose do you rise? To speak on the amendment. Senator Curtis has the floor to speak to the amendment.  I ask our fiscal staff to tell me how many unemployed lawyers we had in this state and they were unable to do it, because many lawyers in solo practice and they just don't have that data, but there's plenty of anecdotal evidence that we have an over superb lawyers in this state. So I commend the amendment to you. Senator Jackson for what purpose  you rise? To speak to the amendment.  Senator Jackson I already have you speaking to the amendment.  Speak to the amendment second time? You can speak to the amendment only one time senator. To see if the amendment sponsor will yield to a question. Senator Apodaca do you yield? Does no yield. Yes I yield. Senator Jackson you have the floor. Senator Apodaca are you aware that Carolina School of Law has one of the highest employment rates within one year of graduation if all the law schools in North Carolina? Wait a minute I'm confused. I thought Campel had the best pass rate of any school in the state. I'm sorry on the part time, I apologize. No I wasn't aware of that. Follow up question. Senator do you yield for follow up? Are you aware that the money that they have in reserves in the fact that they're turning what you call a profit is what they are saving to build a new building because they are one that they are now is 50 years old and is having recruitment of the best students from the country and that they are trying to save coming back to the state to ask you for an appropriation by diligently saving that money to pay for their own building, are you aware of that? No, I wasn't. Follow up question. Senator do you yield? Sure, yes. Don't you think this sends a signal to schools North Carolina wall that they are all potential victims to this piniata politics, where the last minute we can make abituary cuts to anything what about this school medicine. What about the school social work? Don't all of those people now run the risk of arbitrarily cut without any implicit of the discussion at the No. Senator Blue for what do you rise? To debate the bill. Senator Blue has the floor to debate the amendment. Just briefly Mr. President and my colleagues. Law and Business are the two schools in the university in My attended university where students a higher tuition and pretty much cover their expenses. Unlike in medicine and the other schools. The understanding that you got, that there is a surplus of lawyers is quite erroneous the lawyers in this state are basically concentrated in the major urban areas, maybe we need Senator Brown to do an amendment to make some of them move in other parts of the statement but there's a shortage of lawyers. There's a shortage of lawyers throughout the state, when you consider the requirements in the especially the criminal justice system of the people we have to be represented, and then in the civil justice system of the people who need to be represented, if they're going to get fair representation and the benefit of the North Carolina and United States Constitution. I'm not opposed to taking from one budget to another. But I think it ought to be done in a rational way, that's why I asked Senator Brown about the questions of education sub- committee. They have looked at how soon what

the needs are in the various schools and the various parts of the Universities of North Carolina and decided that whatever the amount that is that was allocated to the UNC or the UNC law school a worthy amount, minimal amount needed because there is not a lot of waste in this budget. So I don't know what message we're trying to send but at least if there's some message, I feel a lot more comfortable knowing what it is but this is not a way to, no other amendment that I have seen Senator Brown has gone in. Because I think that the funding in the budget aimed at specific programs is needed in all of those programs, and none of the amendments that you heard from back here tried to take money out of any of the appropriations that you had made to them reduce in other programs because they didn't sit in all of these committees, they did not participate in the discussions, and did not know whether there were funds that could be moved around. I take it that you made wise decisions in the sub committees, and that where there was money available you scrapped it up and saved it, and where there was not you allocated funds to these programs that you thought they need. And that's why I thought that somebody on Education Appropriations should weigh in. I know that Senator Apodaca is the senior member when he shows up at the committee meetings on Education Appropriations, but I thought somebody who was actually involved in the nuts and bolts and the nitty gritty of determining what the needs of the various schools were, should participate in deciding whether we're ought to make out of this cut into this amendment. senator Vandine for what purpose do you rise? To debate the amendment. Senator Vandine has the floor to debate the amendment. Senator Apodaca I have great respect for you, I really, really do and you know how near and dear Mayhack is to me, I know those jokes, I know the work they do, but this quite frankly breaks my heart because it seems totally undeliberative and quite in fact punitive and I just not where they have his body and pains for you to say that, and so in spite of the fact of the way I feel about our need for doctors and How I feel about Net hack, I will not support this amendment because this is not the way we should be making laws. There's turns of stuff in this budget that we didn't get to deliberate about, and I don't think we need to be furthering these by publishously throwing things around and ask to stop. Very further senator Woodwad for what do you rise?  To speak to the amendment. Senator Woodwad has the floor to speak the amendment. Senator Blue and senator woodwad might take exception to you and see being the school in North Carolina, maybe a few in systems perhaps but none the less, I guess what concerns me at this is again is some the precious  nature of this and again, Senator Woodwad presented as with a Hampton's choice, because those of us to support May-hack and I would like to see more doctors, better health care in the rural counties, Senator Brown, thank you for pointing out I do represent to support to rural counties think I am the only senator to have a tear three, a tear two and a tear one county in my district but you have given us a bad choice here, because we not had time to look at this. For instance, do we know what percent of Carolina what students received financial aid. With this $3 million affect the pool financial aid that's available to them. What programs will they cut, North Carolina is excellent pro bono legal service program that is provided. you are aware that each spring break a group of Carolina students, law students, go to the mountains of the North Carolina and provide free illegal services to the residents of the mountains? You're going to have to view the website you can see pictures other than Missouri County, just this past Spring break, helping residents [xx] county prepare their wills. Is that program they get to cut out of Senator Apodaca's $20 million take away? UNC law school, the

programs to support women who are going through issues of domestic violence and need free legal counselling we even have time to talk about that or look at this. It didn't get through the education committee, I'd tell you that and I strongly feel that would be a reason place for this to go. Honestly this bills like the G Nickle Transfer Amendment and I would urge you to vote against it. Do we have any further discussion or debate? hearing none that oppose the senate, is the adoption of amendment 26, all in favor will aye, oppose will vote no, 5 seconds will be allowed for the voting. clerk will record the vote. 30 having voted in the affirmative and 19 in the negative amendment 26, has adopted the bill has amended is back before the body, do we have any further discussion or debate. Senator Hise propose your ayes. Speak to the bill. Senator Hise has the floor to speak to the bill Thank you Mr. President members so the senate I do get sense it's kind of lining down so I just want to take a chance and on medicating and kind of brings us back to the fold, we've had a lot of discussions here today about 2009, 2010, and for those have occurred I will tell you in the medicaid span for this year, I don't care what you do, you can inflate it, deflate it real dollar re aggression you can do an over on it medicaid expenditure are going up any way you want slice it and dice it [xx] matter of fact since that mythical year of 19th they've gone up 52%. This year we're spending . 5 billion on Medicaid. Held up a presentation of staff early that here we've spent 2.3 billion. You want to know where those other fronts are take a look at Medicaid. We've put forward an ambitious and aggressive plan to take control of Medicaid in the state, it's a more well though out plan but this isn't the first time we've been here in the senate budget having discussed this. We've done this for three years now. We've done every possible legislative study sub-committee commission everything we can come up with how we are going to work with. So I leave you with this, this time we don't go home until this is finished. Don't let us come back here and have another shortfall of five, six, seven million dollar growth in a program which is what is approaching and say, "Boy I wish we would do something about the system, we've proposed creating a new agency in Health Benefit Authority. Not one member of this body has come to me and say that's not what we should do that the current status quo is working for us that the current administration has got the program under control. I've not heard that from one person so I ask this time we finish the gang, we make sure that we reform the medicaid system so we can get on to other things that they are important to the state of North Carolina, Thank you. Senator Ford for what purpose do you rise? To see if Senator Rucho will yield for a question. Senator Richard do you yield? Senator Richard does not yield. See if we got anybody in here who will answer a question concerning the taxes that wouldn't be See if Senator Brown will yield for a question? Senator Brown do you yield? I will Section Senator Brown 32.18 entitled tax imposed on retailers, there is a tax that want to be levied for advertising services. My question is will that include bill boards? I have the forms of advertising yes. Follow up? Senator Brown, do you yield? Yes. So billboards would be taxed now. What about popup ads like the ones we see on the know. Sent forward is an understanding, it's all the forms of advertising. Thank you very much. Further discussion or debate? Senator Rabon, for what purpose do you rise? Speak on the bill. Senator Rabon on the floor, speak to the bill. Thank you Mr. President and members I don't need to stand up and talk too much as you well know, speak when I'm spoken to after hearing what you've said or questions that you've asked. collaboration of the day

was the aim of the device. To most what going on we have been talking about yesterday it has being were and what happened then. Well, ladies and gentlemen, I stand before you to say that this budget and this bill is not about yesterday, it's surpassed to tomorrow and I think it's a good path, it's a well thought out and a well planned path and in every search in it, I can find a reason for rationalize and not vote for it, but in every section in it, I can find a lot of reasons to support it and support a path for more, and the proper path for the folks in North Carolina, and so I think to all of you, sometimes it's tougher to stand up and do something that you don't want to do, and I do want to vote for this. But there're many in this room who don't want to vote for this. Some of my colleagues, that sit behind me right now. But I can tell you all, that you can be proud if you do support it because it is a well thought out plan, everyone in the state that we could involve, and bring in and talk to, or with the last few months, to make this a good plan and a good path to tomorrow, we have done. And so, I hope that everyone in this room regardless of how you vote or of how you have to vote, will go home tonight can say the North Carolina senate has come forward with a good budget and a good plan and a good path to tomorrow, and we're going to leave yesterday behind. Thank you all. if no further discussion or debate? Senator Blue what purpose your rise? To debate the bill. Senator Blue has the floor to debate the bill. Thank you Mr. President again thank you senators for listening and thank you most importantly for the last fair enough have 5 hours discussing this budget. I had that a lot of things said and I thought say that senator Reuben when he told us of finance state will be able to do whatever the amendment want to on the floor so it is on the way to question not being able to demand a bill on the committee and so I push it back and I push it initial for letting me be open for low best debate I know a lot of mandates has spoken a lot has said of amendments and to explain what compress is being able to say what is wrong in their mind on this floor and I appreciate that. But I want to go back to something that I said in response to senator Apodaca of all the activity that you have seen and all of the proposed amendments that were made nobody went in to try to take funds away from the areas that you've decided are important in moving forward. Because in this roughly $22 billion budget the tings that are funded are the  things that need to be funded. Now what I want to make clear though is that the agonies that you've had are from the democrats in this chamber have related to making a priority those things that are essentially important to the middle class of this state. Now, the only place that you saw efforts to reduce what you have done in this budget is to redirect this huge text give aways that you have in this budget. All of the changes that were proposed were aimed at redirecting funds, so that we address the concerns of the middle class people in this state, because, this economy is finally making a recovery, and we are saying it will improve all over the country. We are saying it will improve modestly in North Carolina. It's my position that the cause of the [xx] were still leaving the middle classes behind in this budget. And they feel certain sense of uneasiness about where we are ultimately going. Sure, you fund the things that we funded, and I commend you for that. we should fund them. We are an expanding economy now, we are not contracting, like we were in 2009, 2010, 2011, 2012, 2013 the period that some of you talked about. But there's some direction that can

be heard from where we were trying to go and I think that when I say we, I mean all of us as a state. In funding education, whether you are in the minority, or whether you are now in the majority, because we all know that real economic development and new progress in the state, hedges on what we do to build a middle class. Nothing builds economic activity, nothing bills prosperity like building of middle class, and so some of us have decided that it is better to use any excess revenue or whatever you might call it. We call it taxes or whatever the giveaways we're doing to large corporations who invest more deeply in education. To invest in a way that we can move more people into North Carolina's middle and we can sustain the middle class we had. You've heard me argue on this floor that America's prosperity came after World War II and we did the greatest things that we've done for education. The GI bill, nobody disputes that that is the greatest thing that this country has ever done to build it's middle class, so that we become the relevant nation in the last half in the 20the century after World War II. So that why you've heard arguments about what the spendings was about in 2008, and what it is now, not to say who was right and who was wrong in what happened during the great recession. I think that this budget when we consider the middle class still goes to far in shifting the text burden and a recovering economy to the middle class in the state and I tell you why over a five year period I believe this budget gives $2-$3 billion and tax credits or tax give a ways to this major corporations that Senator Stam talked about and I just think that those funds could be better spent in showing up our middle class and making sure the kids in North carolina gets the best education that is possible in any state in this country because as I look around I was wrong and I guarantee you that there is not a person who would say that his or her education isn't the fun that gave them the greatest opportunity the big competitor, whether you build businesses, whether you are professors, teachers I shouldn't say lawyers since you don't like them too well, wherever it is that you succeeded at doing, education is what gave you the foundation to do that, and leading that education probably was the teacher. That's why teachers pay is important not just to compare what it was in 2008 verses 2015. I may have shared the story with you and I ask Senator Tillman this because I made a little older than he is. I said Jerry what were you doing in 62 and 63, where were you teaching? He said he wasn't teachers then, he was still getting out of school, but you know in 63, when that 62 when I'm an elementary school kid, this General Assembly decided they were going to invest in education in a way that they hadn't invested in it in the past. Cost some politicians some heartburn but it put a tax on food, in order to get us elementary school kids who lived on dirt roads an opportunity to get the level of education that we otherwise woudn't, and I remember when the new textbook started to come into high schools I remember it as if it were yesterday. I remember when the bus came. I will recall when we replaced the old buses and the buses that we rode on would break on or slide on the ditch during all this dirt roads and that left an impression in my mind what that 62-63 legislator did and [xx] and leading it. And that's one of the reason that some of us feel so strongly about it they could have just as well not taken that risk, their are others in here who were in North Carolina schools at the same time and you'll have to agree you will remember the new books and the new staff coming in as we all wanted to beat Russia to put a man on the moon, but the other thing that I think we look at in this budget is that I would stay focused on the chief task I think that for too long in the session we focused on the side issues we focused on too many social issues. We should have been talking to each other about how we could strengthen the state could have gotten some other ideas how we

could have build schools in Jones county. Senator Brown because this that you're sending to John's county from these urban counties will not build the schools they need. It costs $4-$50 million to build a school in Wake County. And when we missed a building $900 million worth of schools help. And then these counties that get this additional revenue it's not going to take care of the problems, we're one state and it's the state's responsibility to make sure that every kid regardless of how poor the county is he comes from is comes from is going to have a quality school, so if it's county commissioner's responsibility to build schools and they can't do it, then we ought to do it on a statewide basis but those areas really needed if it's the county commissioner's school duty to get supplements and they can't do it, then we ought to make sure that we do whatever is necessary on a statewide to get the best teachers in those schools that have the greatest difficulty in attracting them. That's what I believe, and I believe that's the kind of discussions that we should have been having, to really make a difference long term. We all talked about earlier how Volvo had decided to go to South Carolina, I grew up in a county in the South Carolina border. In our ways I enjoy being able to look down in South Carolina and talk to my friends across the border in [xx] county about how much we were doing an education than they were in South Carolina and we were even in bad times. But Volvo going to South Carolina really raises a different issue with me and because it means that they've figured out in South Carolina how to create jobs and how to make use of education in a way better than we can and when we continue to lose in comparison to South Carolina, it should send an alarm, that there's something different that we ought to do. And so, I tell you that, when the governor and the speaker say, when they were quick to pass the blame for losing more jobs to South Carolina, said we never weren't in the game, I started wondering then, we need to do whatever is necessary to get in the game. And what came into me, because I've talked to a lot of people who are involved in economic development, who are involved in recruiting industry and who want to make sure that North Carolina stays competitive. And when the speaker said that is not just incentives that are holding North Carolina back, I said, you probably right. Incentives alone will not do it and give ways will not do it, because I think North Carolina governor, Nicky Hail hit it on the head and this is what she said, if [xx] well [xx] workforce and part of the school (xx) and that's the most important thing that we can do nobody has said that these tax giveaways is the reason that South Carolina beat us out on Volvo. And in fact if we look at it that probably has the least effect. I mentioned these new companies that have been created in the Park, in the Triangle Region in the last 25 years some have unfortuned 500 companies now didn't get any giveaways but they were drawn because of what we were doing in education and the partnership that have been developed especially in this region in the banks and financial institutions were drawn to [xx] for some of the very same reasons that's why there are the number two banking center in the country not because of giveaways and that's why we are one of the four hotspot for the technology that we do here in the research Triangle Park and so I thought I wouldn't say this today and would never say this in this Chamber, but I hope we've learned from South Carolina, the state that I used to look in askance and funny at and I hope that we've learned from them that this education and the economy do more than anything else. We have to grow our economy again through working families, through middle class families. So what we do ought be things to benefit those middle class and I didn't grow up in middle class but I do know that once you are part of it and you can get into it then you think much more expansively and you create more jobs and you do other things that make the economy expand, that's why I'm so much in favor of small businesses because that's where a substantial portion of the middle class is and that's the part of the economy that we could really make a difference at, and Senator Apodaca says we're not losing teachers of South Carolina, we're losing teachers to South Carolina, you go to Chalet, and you go to the boarders and you see teachers leaving North Carolina going to teach the South Carolina, it's

just a fact and we can accept it or we can dispute it but the facts are what the facts are, and we're losing teachers to other places. Now I still believe that we have to have a policy to get our teachers to the National average, and when you signal that policy across the country, the best and the start thinking that North Carolina is really where I want to be, they are not thinking about these are the things that we're making priorities, they are thinking about how you're evaluing senator Brown and see how you're valuing your kinds and how you really want to move them so that they can be competitive, we talk about competing with Boston and we talk about competing with Boston and we talk about competing with San Francisco if you or in a triangle, but you know really we're competing with Shanghai we're competing with Chicago. We competing with places all over the world, and that's the mindset that we have to have, and so we have to compete the teachers at some point, who see that their mindset and now more likely to come here when their salaries somewhere near the national average, so let's go over it, we have to work for it and we have not said even if we're raising starting teacher pay that is that something that we're aspiring to it, that's another reason that you've seen some of these amendments or proposed amendments on this budget. So we're asking for strategic investments that we know and prove the college of education for all of our students and implementing plans that may that happen. I mentioned the textbooks, and maybe somewhat over dramatic, but I think senator Smith Ingram pointed out the need for technology. We want to get to where we can use it as an alternative, but you can't do it if we don't invest in it, and especially in the rural areas of the State. My oldest son is 42 years old. When he was in the fifth grade in a public school in Raleigh that they were going to close they decided to make it a magnet, and they made it a magnet and we decided that he was going to go there because it was a neighborhood school, and they started investing in it, and these kids at five, six years old started learning how to make computers back in the late 70s, started learning how to make computers and for a 10-year period, they started winning national awards and doing everything else. The class that he was in got $2, 3 million worth of scholarships to schools all over the country, Caltech, MIT, all of the elite institutions because in Wake County they decided to do something that wasn't quite popular at the time, invest computers and start teaching these kids what the future was about. That's why we need to be aggressive, not just in textbooks, but in technology, that's where we all like to be sending some of these money, and that's what will help rural North Carolina quicker than anything else. You just have to give them high speed internet. That's not happening anymore, and it's not profitable for [xx] to do it, so we've got to do something to make it happen, and so those are the counties those are things that we were talking about, and so I hope that as we move on and debate in this budget, that we start thinking about if we can afford to invest in our students. We can can afford to invest in our middle class. We can afford to make it more attractive to start small and new businesses, but we have to make choices, we make choices between invest in this increased revenue that we recognizing in things like education more aggressively, and again I commend you for getting to a point, because there is more than ways in it, we've got to much, much more. And we got to work on the things that will build this middle class and the thing that makes it more specific than anything else and I'll close out with it is that I've had a graphic that I have been studying for the last few days and it makes point to me more than anything. It's a polygraph that I looked at, that showed where we were in 2008 again I'm not looking at it historical, just have something to say that you've done worse than we did then, but something that show where I think we were headed. And when you look at that graph, and you see some of the fundamental things that my colleagues here on the back row have been talking about. Now you look at things such as poor people spending this windows are real, and it going to be up in your dashboard now. You look at poor people spending, and you see where it was and where it goes even in this and I'm not going to get into the nuts and bolts of interest and

the value over time, and I understand that but that's not relevant to this discussion. You look at all this other factors that this bar graph points out and you see [xx] we have to go to start the momentum To get us where people were thinking we were in 2008. We were hot in 2008, and we were being listed all over the county the place to be and I would suggest to you that we need to get back there, and I will tell you that shows that we are spending on teachers, teachers assistant textbooks and all those things compared to the investment that we are making today, was much more robust and it was much ambitious. And I'm hoping we get back to that same level of ambition, because that shows the middle class of North Carolina that our priorities are their priorities, and their priorities are the ones that are going to make the state move forward. And lastly, [xx] TV story on June 12 last week, and this is what it said, and this is not to be condemning or anything else. The bill of economic analysis on the GDP for this for 2014, so that North Carolina's economic growth was 1.4%, growing, but we are below this year's national average growth of 2.2%, and short of a straight 2.3% growth even in 2013. It also said that it was below the regional average for the South East. which is 1.7% [xx] the regional average, for the other ten states in the South East. South Carolina back in person consider 2.2% growth rate, [xx] GDP grew 2.2 % and third has grown 2.7 %. So, we started this big corporate tax give-a-ways in earnest, last year a couple of years ago. And we're continuing them, if they were working my friends, these numbers will be going in a different direction. So it's a question of choice, we can either give it back to folk and let them take it away or we can invest it in our middle class or we can invest it in education and we can make a difference and make North Carolina, the most robust economy in this country and the place where people will never leave because we can create Wake county or Mecklenberg county, create the kind of economy, so they, there children,  their grandchildren and all of there [xx] can call North Carolina home forever  because they will  be able to do whatever God gave them the talent to do right here.. Mr. And for that reason, I'm not voting for that budget, although I'm like most of you, there is some good things in it, but I just think it's setting the wrong policies. Senator Berger, for what purpose your rise? To speak to the bill.  Senator Berger you have the floor to speak to the bill.  Thank you  Mr. President. Well members, the good news is, I think am the last speaker between you and the vote and the bad news is you have to put up with me for a couple of minutes. I  first of all I want to thank the stuff and thank the members for were working on this document and for bringing this to us. I know that everyone acknowledges and understands the amount of work that goes into this and it is appreciated. I'm here to ask you to vote for the bill and I'm here to ask you to vote for a number of reasons that I think are very good reasons. First of all, what we are looking at is a document that does not repeat some of the mistakes that we've made in the past. Now, listening to the governor the one was talking about the past but I spent 10 years on Back Road, and seems like every time we had a little extra money, that money got spent, and every bit of it seem to get spent each time and so this time we're looking at a situation a little different than the last four budgets we did. Last four budgets, we were looking at a real question of are we going to have enough money to cover the priorities that we have in the state and well low and behold because of the decisions that were made and because of the economy picking up some notwithstanding some of the comments we've heard about how bad things are. We're looking a budget last year that actually revenue-wise our

revenues it's up at least $400 million I suspect by the time we close the books this year it will be probably closer to $500 million extra so we've gotten a new kind of problem for us really is test for us as to whether or not we are going to go back to the old ways of doing things where their is money laying around we are going to spend it or we are going to may be do some things a little bit differently. So thats what we do, this budget grows at spending but it only grows it by 2%, well 2% is a lot of money when you are talking about real dollars on a $20 billion budget but 2% is more than we spent last year and 2% is enough to cover the growth in the state population and with reference to inflation. So what do we do with that extra money? Well, one thing we do is we put $500 million in the Rainy Day Fund, that fund will now be over $1 billion because we know that things are not going to continue to go in a direction of increased revenue, we're going to have another recession. In fact, there some folks that are saying we'll due for one now, even though a lot folks are wondering if we ever really got out of the last one. So we'll have a little over a $1 billion in the Rainy Day Fund. It puts $300 million in the Repair and Renovation Fund, that's a fund that's been ignored for too long. Our State buildings, our university buildings, our infrastructure is not getting the attention that it needs, so we put $300 million into that. Now is that enough, no, probably not but it's more than it's been put in the past and it's that will address some real needs that we have. We move money or actually we don't move money, we keep money and transportation that we tell folks who are raising money for transportation and for years we have been transferring money out of the transportation budget, and all of us that one time or another, we need to spend transportation dollars on transportation so we do that and that does is that actually addresses another real problem that we have. We have billions of dollars of needs and transportation. And we have not yet before had a paln for dealing with those needs, this will get us started on that, with what we're doing in the budget a little over $300 million annually more than that, we'll go into the transportation funding formula to address repairs, maintenance and projects. We will begin the process of returning North Carolina to its place as a good road state. By the way I think if you compare to South Carolina, we're still the good road state if you've been on the rural road in South Carolina well come back and get your car aligned and maybe replace a few things. The other thing that we do in this is we begin the real process of fixing something that has been a nagging problem for us for years, and that's Medicaid. Hundreds of millions of dollars every year have to go into the Medicaid re-base any instances hundreds of millions of dollars have had to go to address Medicaid over spends, and the reality is we they don't know at this point whether or not our Medicaid budget is going to be on target, whether we're going to have a surplus which we were told last year we had which turned out not to be so much of a surplus, so Medicaid reform will help us address that problem and give us the kind of predictability when they need so that we can begin concentrating on some other things. And then the other thing that we're doing, or another thing that we're doing is have a maybe we oat to think about the folks that sent the money here to begin with some folks like to refer to reduction in taxes as tax give aways the folks that pay that they think it's their money you know what I think they're right, it is their money and the more we can leave in their hands the better of they are, the better off we are as a state and the more prosperous we're going to be, and so tax reductions tax modifications are a good thing, and it's in this budget and let's talk a little bit about educations because that is something that we spend more money on than anything else something that we've had a lot of talk about. We've heard about teachers going to South Carolina, we've heard about

teachers going to Texas, we've heard about all sort of things, but if you look at the data teacher turn over in North Carolina this past year the year before, the year before that is not that much different than it has been historically. We always have a lot of turn over in teachers those retiring those deciding that they are not going to teach in a particular system they go into another system but the reality is the teacher turnover in North Carolina is no better or no more that has been historically we do something in this budget hopefully to address that because in many respects where we loss teachers is in the first 10 years of their carrier and that's where we have over the years been short changing our teachers the most we have not had the kind of beginning pay for teachers that we this budget moves us to $35000 a year, it's not a great deal of money but it makes us a leader in the region in beginning teacher pay. It also front loads career wise raises the teachers. Average is 4% over the entire teacher core most of it and [xx] to criticize it but most of it is front loaded. One of things is once a teacher or once a state employee has been in the job for 20 years the benefit to that individual to the retirement is so substantial for them to continue in another 10 years that those are not the teachers that we are loosing, we are loosing and the teachers and year four, and five, and six, and eight. And so what we want to do is we want to make sure that we do everything that we can to entice and encourage folks to come here to begin with, but to stay and make sure that we have those good teachers in the class room. We're doing something else and there are several other things in education. One, I've heard a lot of talk about teachers assistants, and I've been trying to get the the exact number, I think this is right, I may be wrong, but when we started having teacher assistants funded at state level in North Carolina, the average class size or the funding formula for our classes was one teacher for every 26 students. One for every 26 students, and that was in the beginning grades and all the way through. Well this budget moves funding for teachers in grades one, two, and three 1 to 15. It also does that in the second year of the [xx]. Now we've heard some folks talk about that being an unfunded mandate on our locality but if you're thinking like that you really haven't been in classrooms or you don't understand how things work nowadays because the funding formula provides for a number of teachers based on the number of students but a lot of our schools are going to larger classes with more professional personnel. So you can have two classes that has a total of 45 kids with three teachers, and those three teachers work with those 45 students. So it's not necessarily an increase in the mandate for classrooms. It is however, a mandate to have one teacher, one highly qualified teacher for every 15 being students that you're having grades one, two and three and that is when you compare 1 teacher or 26 students that we had before we started before as a huge improvements and it is a situation that data shows us or tells us that that one and highly qualified teacher for 15 students is the optimal number and it is based on the date that I've seen it is actually in terms of student outcomes a better circumstance than a classroom with 20 kids, a teacher and a teacher assistant, so we're funding those additional teachers and we're funding the reduction in the class size that gets us there. Economic development, senator [xx] I understand the challenges that you have expressed about Charlotte and I think I heard someone say that we've had the South Carolina in terms of our tax rates. Well, that's not quite so because South Carolina has a corporate rate of 5%, our corporate rate this year is 5%, but South Carolina has something called single sales factor. If someone in South Carolina, if you've got

a manufacturing facility and they're trying to decide whether to locate in South Carolina or North Carolina then purely on taxes regardless of incentives they're better off in South Carolina from the standpoint of the tax policy. This budget fixes that, makes a modification of that. Allows our corporate rate to go down to 3%, puts in single sales factor, gives us the opportunity to be competitive for those jobs without having to give away tax dollars, without having to provide as much in the way of incentives, but it also deals with that as well. It has an incentive piece as well, and it has something that will make us not just competitive but make us a leader in terms of our ability to attract and keep jobs. This budget sets the right priorities, it does it in a way that doesn't spend everything so that we put ourselves in a hole. It does it in a way that enables us to continue to build on the things that have been happening in North Carolina over the last four years and it does it in a way that helps us to keep the promises that we've made with people of North Carolina. I urge you to vote for the budget. Any further discussion today? Hearing non, question through the senate is passage of the Senate Committee Substitute to House Bill 97 as amended on its Second Reading. All in favour will vote Aye, opposed will vote No, five seconds to be allowed for the voting, and the Clerk will record the vote 30 having voted in the affirmative and 19 in the negative, Senate Committee Substitute Substitute to House Bill 97 as amended passes its Second Reading and it will remain on the calendar. As we wrap up today there's a lot of folks, excuse me Senator one second, a lot of folks in the Chamber. I'm going to ask everybody thats staff to remain here as we're full right now. So instead of having a bunch of mayhem before we adjourn please stay in your seats that is one of the Senate rules as well. Notices or announcements times, Senator Soucek, you have the floor. Yes, Mr. President. Thank you too Senator and conference report out of order. Senator you can send your report out of order. Senator Berger, for what purpose do you rise? The Clerk will read. conference report. The President of the Senate and the Speaker of the House of Representatives. The conferees appointed to provide the differences between the Senate and House Representative on Senate Bill 333, a bill to be entitles an act to require that The State Board Of Education includes specific data, in his annual report on teaching profession. The conferees recommended that Senate and the House of Representatives adopt this report. The conferees for the Senate. Senator Dan Soucek, chair, Warren annuals, David L. Curtis, DM4. [xx] for the House Representatives Jeffery Elmore Chair, [xx] P. Johnson, Craig Horn and Rick Glazier Bill 333 calendar for Tuesday the 23rd. Mr. [xx] Berger, for what purpose do you rise? Mr. President I noticed when I was making my remarks there seem to be a disturbance outside. I ask that we stand at ease until that situation could be taken care of. So ordered, The Senate will stand at ease until we can get the disturbance in the hallway taken care of. Senators, let's come to order. Sergeant at Arms, close the doors. Members, go to your seats. So Senators, just quickly as a reminder and a note here, because there's Senators, let's come to order. As a reminder there is activity going on out this door, so when you exit, just exit at the side doors that will make it easier for everybody. Do we have any notices or announcements? Sen. Jackson, for what purpose do you rise? To send forth a conferencial[sp?] report out of order. You just send forward your report out of order senator. Conference report does the president

understand the speaker house representative to conferee to point or resolve the difference between the senate and house representative on House Bill 640. The bill act to preserve North Carolina outdoor heritage for future generation and remain various wildlife resources commission. House bill 640 calendar for Tuesday the 23rd Senator [xx] for what purpose do you rise?  An announcement Mr. President? Senator [xx] you have the floor for announcement. Democrats will caucus briefly immediately upon adjournment any further, notices or announcements? Any further business come before the Senate is not the Chair recognizes Senator Burger for a motion. Thank you Mr. President I move that the Senate adjourned subject to standard stipulations set forth in Senate rule 24.1 the appointment of [xx], ratification of bills, receipt of house messages, receipt of conference reports to reconvene on Thursday June 18, 2015 at 10 AM, and members I believe the only thing we'll have on the calendar tomorrow will be third reading on the budget at 10 AM. The motion that the Senate do now adjourned subject to the stipulations stated by Senator Burger to reconvene Thursday June 18th at 10 AM Senator Brown all in favor say Aye, opposed No the Ayes have it Senate stands adjourned.