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Senate | May 22, 2013 | Chamber | Session

Full MP3 Audio File

The Senate will come to order. The Sergeant at Arms will close the doors. Members will go to their seats. Members and guests of the gallery will please silence all electronic devices. Leading the Senate in prayer is the Reverend O.D. Sykes of Swift Creek & Springfield Missionary Baptist Church. The Reverend Sykes is a guest of Senator Bryant. All members and guests of the gallery will please stand. [SPEAKER CHANGES] May we pray, Eternal and everlasting God our father we humbly bow before thee in thy presence recognizing your sovereignty and your position as creator over all that is. We acknowledge you oh God as the holiest among the mighty and the mightiest among the holy. Thank you for being our sustainer, provider and protector. We ask your continued blessings upon this state and nation as we live from day to day. I ask in Jesus' name that you would touch the hearts, minds and souls of all that have been elected to serve in this State's Senate. We pray that all the words that are articulated and all the actions shown will be done in a manner that is pleasing in your sight. We ask now that you forgive us for our sins and lead us not into temptation but deliver us from evil. Dear Lord you are welcomed here. You are wanted here. You are needed in this place. In the name of God the Father, God the son and God the Holy Spirit, In Christ Jesus' name we pray and praise, amen, amen and amen. [SPEAKER CHANGES] Senator Berger is recognized for a motion. [SPEAKER CHANGES] Thank you Mister President the journal of Tuesday, May 21, 2013 has been examined and it has been found to be correct. I move that we dispense with the reading of the journal and that it stand approved as written. [SPEAKER CHANGES] Without objection the journal from May 21st stands approved as written. Senators lets come to order. We do have most of the day with us today Maria Fry of Nightdale, North Carolina. Nurse Fry if you'll please stand and be recognized. Thank you for your service to the Senate. [SPEAKER CHANGES] Mister President. [SPEAKER CHANGES] Senator Apodaca for what purpose do you rise? [SPEAKER CHANGES] I move that the roles be suspended to the end that staff may join the members on the floor for the budget deliberations. [SPEAKER CHANGES] Objection so ordered. Senators upon the motion of Senator Rabin of Brunswick County the chair is happy to extend the courtesies of the gallery to members of the Carolina's Associated Contractors who are present in the gallery as part of their legislative day. If you have any of those members please stand and be recognized. Upon the motion of Senator Buck Newton of Wilson County the chair is happy to extend the courtesies of the gallery to the Wilson Chamber of Commerce Dynamic Leadership class Tommy ??, Michael Brown, Eric Davis, Mason ??, Willie Felts, ?? Noah, Brian ??, Daniel Vogleman, Pamela ?? and Ryan Simons, president of the Wilson Chamber of Commerce. If you are with us please stand and be recognized. Upon the motion of Senator Gladys Robinson of Guilford County the chair is happy to extend the courtesies of the gallery to the Social Action Task Force of the North Carolina Chapters of Delta Sigma Theta sorority, Zeta Phi Beta sorority, Sigma Gamma Rho sorority, Btelinx, Inc., the Nation Council of Negro women, the National Coalition of 100 Black women, The North Carolina Black Women Empowerment Network and the Gathering Women at the North Carolina General Assembly. If you're with us please stand and be recognized. Upon the motion of Senator Curtis of Lincoln and Iredell County the chair is happy to extend courtesies of the gallery to the group of 4-H students and parents from Lincoln County. If you're with us please stand and be recognized. Upon the motion of Senator Curtis of Lincoln

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Was a very much moving target and an additional 1.2 billion dollars or more will need to go into medicade over the next ??. Of the total spending, again 20.58 billion this year, 20.95 billion in 14/15, we have an unappropriated fund ?? of 106 million that will carry over, if you recall the april surprise was made up of 104 million dollars, but much of that we believe is one time collections as people accelerated the dividends and things of that nature at the end of 2012. The savings reserve will be 165 million in 2013/14 and the allocation 74 million in 14/15. There is 100 million dollars of R&R in 13 and 14 , 26 million on 14/15 and the budget authorises 100 million dollars of 2/3rds bonds for R&R. We fully fund the teachers and state employees and ?? retirement system , it establishes a policy of increasing contributions to the state health plan at the same rate as the CPI, so you see it at 1.8% in 13/14 and 2.2% in 14/15. There is a salary freeze that continues for all state university, community college and public school employees, and it also freezes statutory automatic increases in compensation bonuses for certain employees. There is a methodology in here where we go ahead and use the SG fund and basically take the 27 million dollars and take the global trans?? off of the books. In terms of capital, provides a state match for water resources, development projects as a department of environmental and natural resources - 6.9 million in 13/14, 5 million in 14/15, and provides funds to renovate a number of national guard armouries and facilities that are grossly in need of repair, with that Mr Chair, would Mr President like to go and yield to a sub committee chair. [SPEAKER CHANGES] Senator Tillman's recognised. [SPEAKER CHANGES] Thank you, Mr. President. I will speak briefly on the budget to the education portion. Senator ??, Senator Apodaca, staff, thank you all for a good team effort on this - we're spending, lets say investing 11.1 billion dollars out of the 25 and a half billion dollar budget, so we are putting a lot of resources there, the cuts were miniscule if you will, when you see your money reports etc you will see that the smallest cuts went again to the public schools and the largest cuts, which were small, went to the universities, and they range from 1 to 3, 3 and a half, 4% in each year of the ??. The community colleges, the universities, the public schools I have worked with, and Dan and I and Tom since January, they have all sent me, well, 2 out of 3, notes of congratulations and thanks for this budget . We worked out to give them flexibility, fully fund the enrollment for all 3 and to ?? to reform money and to continue the excellent public schools act money, and to put additional flexibility into the budget for the public schools, universities and community colleges, and they will be able to do things with the limited amount of dollars that we still have for the budget but I believe you will see in the details that the reform, things that are in there, there are things that have been requested, have been asked for and to give them more flexibility then ever before, thank you. [SPEAKER CHANGES] Senator Hose of Health and Human Services is recognised. [SPEAKER CHANGES] Thank you, Mr President, members of the senate. Let me begin by thanking Co-Chairman Senator Pate and the incredible staff that we have had working on this HHS budget, this was not the easy task as one might imagine, this is ?? we have gone, and additional increases this year required, in our payment portion this federal entitlement program, including the rebase, the affordable care act woodwork, the program integrity and contract cost for the increase enrollments, contracts and other ACA impacts. We are looking at an additional 1.33 billion dollars in required spending in medicade, a program who's current certified budget is 3.1 billion dollars. This has taken a lot of changes within the program and actually across state government and state budgets.

We've had to go through the departments budget for areas that they have had to make cuts. Particularly in areas where they've historically transferred money to fill the medicaid gap. We've had to close four of the sixteen child development service centers. Service centers that are already riddled with vacancies in operation. We've closed the three drug treatment centers in the state. ?? centers which operated at 158,000 dollars a bed. We closed the Wright School which operated at 112,000 dollars a bed for part time services. We've had to change the way drug payments are made - put pre authorizations on mental health drugs. We've changed provider assessments to a percentage rate. We've raised co-payments. We've also had other things to do. We had a department of justice settlement we needed to continue funding, which we did. We've moved funds and childcare subsidies from the pre-k program to the subsidy program to provide services for more children in the program and protected those funds through the block grant program as well. With block grants to non profits across the state, we've moved the politicization out of the process, taken those funds whole and moved them to the secretaries office where oversight of those nonprofits can be what it has not been historically. We've also expanded the care program with block grant funds provided for people who are caring for Dementia and Alzheimers patients and we've expanded the personal care service hours up to the limit of 130 for individuals with those same conditions so that we can address what occurred last year when those were cut back to 80 hours. We can address some of the issues that special care units are experiencing in the state. As we move, I'll be glad to continue any other questions but I think that's a good summary of where we stood in the HHS budget and I thank you all for your time. [speaker changes] Senator Jackson of Natural Economic Resources is recognized. [speaker changes] ?? Mr President, I believe Senator Brock is going to do the presentation today. [speaker changes] Senator Brock is recognized. [speaker changes] Thank you Mr. President. In N.E.R, we had a lot of moving parts and I want to thank our staff first of all for putting up with Senator Jackson and myself. They deserve an award for that but we had a lot of moving parts. And how to modernize, how to make government in North Carolina more efficient, more effective, our budget moved 7 million dollars into JMAC annually to make sure that we live up to the promises we do. We continue to put money into BRAC or our Base Realignment and Closing to show that North Carolina is still the most military friendly state in the nation. To protect that important investment, not only do we have in our economy but in the security of our nation. We created an economic development program so that the state can act in a quicker response to existing industries and industries that want to move here. So we can make it for more infrastructure so that when the companies want to move here and the companies that are here, they can expand more quickly putting more North Carolinians back to work. And because our rural communities are so important in North Carolina, its more than a piedmont crescent but more of North Carolina so that we launched a new rural economic development division when the state commerce led by the new assistant secretary that will focus on approving rural services and addressing the rural needs to make sure that all North Carolina moves forward and we invest in this. We also invest 55 million dollars over 2 years in our new rural infrastructure authority to be a streamline and efficient program that will offer one-stop shopping where our communities can get support and the resources they need. When we're looking at our competition in all of the other states, and also other countries, we've got to make sure that North Carolina is faster and efficient and effective. And that's one thing we do in North Carolina well here in some sectors and it's something that we are going to do in our state government as well. Our budget continues to make sure that we have the strong investment into agricultural water efficiency and domestic energy production to make sure that the shell gas expiration in North Carolina. We're going to put 1.5 million dollars over two years into agriculture. We're looking at putting money. We have 5 million dollars going into our research stations so that North Carolina and our 77 billion dollar industry in agriculture can continue to grow, and thrive and let North Carolina continue to be the leader in agriculture to make sure that we're using modern farming

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My Co-Chair, Senator Rabin, and our wonderful staff for continuing on the philosophy that we've worked so hard to continue with our philosophy of taking care of our current infrastructure and completing unfinished projects. The total transportation budget is 7.92 billion including 3.16 in revenues and 4.76 billion in federal aid and other receipts. The Senate budget continues efforts from 2011-2013 biennium to reduce administration, increase privatization, advance information technology projects, enhance DMV customer service, and target identified savings, and other available funds to maintain the highway system. The Senate budget also restructures prioritization and funding processes for key transportation infrastructure by collapsing various funding streams within the highway trust fund and distributing funds based on state wide, regional and divisional funding tiers. We also encourage local government, financial participation and totaling by awarding bonus allocations to participants. We expand the allowable uses of aid to municipalities. Allocations include bicycle and pedestrian projects and prohibit the use of State highway fund or highway trust fund revenues or bicycle and pedestrian projects. [SPEAKER CHANGES]: Senator Brock is recognized for information technology. [SPEAKER CHANGES]: Thank you Mr. President. If you look at the IT section of our budget and just the ITS section of the budget but if you add all the agencies together you are looking at 1.3 billion dollars in spending on IT in North Carolina and the focus this year and with the team of Karlynn O'Shaughnessy on staff and the rest of the team, which was Senator Hise and Senator Tarte, I appreciate working late into the night with these senators that pulled double duty and especially Karlynn, and it was a tough task but North Carolina we have to fix what is broken and with that our IT reserve is 67 million dollars over two years to improve security areas so we don't have the same issues as other states where security is breached and improve planning to develop a strategic plan for statewide architecture but also direct a CIO to develop an inventory of our server and server locations in the State. And as we started out this session we saw the problems we have in this area where a server caught on fire at the Department of Administration and it was located in a closet. We cannot operate as a State or a business when you don't have your IT secured and running as efficient as possible. We are working with the new CIO who is doing an outstanding job and make sure we avoid duplication in our agencies to make sure we're trying to save as much money as possible. This effort on IT is to make sure that we are spending the taxpayers monies wisely to make sure that we are not duplicating our monies. A new initiative we have is GDAC, which is Government Data Analytic Center, which will provide capability to analyze data from different sources to support decisions. This is what we're doing in business now. To make sure that when we put this together we're making the best decisions possible and this will actually help us in all of our agencies of all the data we are working to fuse it together. Also, something new is from the Governors that we are supporting is the Innovation Center. It's to work with vendors to make sure that the new products, new things that we have that are being developed that we can test them out, try them and how that can help our agencies and help us deliver services to the people of North Carolina. We have a lot of projects we've got to work on. We are way behind the curve. Years and years behind the curve of where we need to be on IT, and again, if we're going to be efficient and effective, we've got to work on these issues with all our agencies. Make sure that these new systems will deliver efficient and effective services to the people of North Carolina. Thank you Mr. President. SPEAKER CHANGES; Senator Brunstetter is recognized. SPEAKER CHANGES: Thank you Mr. President. I would just ask that members support the bill. SPEAKER CHANGES: Any discussion today? SPEAKER CHANGES: MR. President. SPEAKER CHANGES: Senator Stein for what purpose do you rise? SPEAKER CHANGES: Forward an Amendment. SPEAKER CHANGES: Senator Stein ?? an Amendment. SPEAKER CHANGES: Senator Stein moves to amend the bill. SPEAKER CHANGES: Senator Stein is recognized to explain the amendment. SPEAKER CHANGES: Thank you Mr. President, members of the Senate. This amendment presents a real clear and stark choice for us. It's how are we going to spend more than three-quarters-of-a-billion dollars, 770 million dollars? Are we going to spend it on tax breaks for the wealthiest among us that would be paid for by increasing the tax burden on middle class and working families?

and by cutting critical public services like education and economic development. The budget that is before us today, proposes to cut pay for that three quarters of a billion dollar tax break for the wealthy, by doing the following things. Firing 4800 teacher assistants in grades 2, 3, 3 - nearly 5000 TA's. Senator Berger has money in here to try to increase the reading performance of our young children by the end of third grade. I'd like to understand how firing 5000 TA's is going to get us toward that goal. At the same time it raises class size, but permanently eliminates approximately 4500 teacher positions. It eliminates the North Carolina Center on the Advancement on Teaching, which provides professional development for teachers. It permanently eliminates 275 student counselors, school counselors, media specialists and other instructional support. That's what it does at K-12. It also pays for this tax break for the wealthy by raising tuition on every community college student, by a total of 20 million dollars over the biennium. It fails to restore $63 million in cuts that we imposed on the community college system at the height of the recession. It imposes in additional $123 million in unspecified cuts to the university system, on the back of $414 million in unspecified cuts that were in last sessions budget that you all pushed. Senator told me to say that it fully funds enrollment growth at our universities, when we're taking $123 million on top of $414 million out of the universities, I think is a hollow claim. This budget cuts financial aid for 8400 students, who get it today, making access to higher education that much more difficult at precisely the time we need to be having more educated work force, not less. This budget cuts thousands of pre-K slots and jeopardizes the future of Smart Start, which is an award winning nationally acclaimed program that not only educates young children, but establishes the infrastructure for high quality pre-kindergarten education all across the state. It eliminates fundings for proven non-profit economic development organizations, it leverages public money with private resources to create jobs and economic activity in low-income communities all across the state, particularly focused in the rural parts of our state. 100% of the Rural Center budget gone. 50% of the Biotech Center budget gone. 100% of the Community Development Initiative gone. 100% of the Institute for Minority Economic Development budget gone. There are many others as well. This amendment that's before you addresses this fundamental error in judgement. As you can see it does the following things. It restores funding for all 4800 teacher assistants. It adds back 1100 teachers in the first year and 4500 teachers in the second year. It adds back 160 educational support personnel in our public schools. It continues funding of the North Carolina Center for the Advancement of teaching, which was completely eliminated, and serves to offer professional development for our educators. During the recession our LEAs had to make a lot of tough choices with the budget. We know that there are 11,000 fewer positions in our K-12 schools today than there were at the beginning of the recession. At the same time the number of students that are in our K-12 schools have exploded. We can't fix all that and probably shouldn't fix all of it, but the standard shouldn't be 'when I drive by a school I see kids walking in and out of that school every day.' The standard should be, 'what are we doing to improve the quality of our education for our children by having the right number of teachers, support personnel, and teacher assistants so that our kids are actually learning in school.' This amendment eliminates entirely the tuition increase on community college students so that education remains as affordable as possible. It restores $20 million in unspecified cuts to the community colleges. It restores need-based financial aid for

Students at our University system. It also restores thirty-six-and-a-half million of the unspecified cuts that you all are imposing on our University system, which, by the way are among the best economic drivers we have for creating jobs in economic stimulus in North Carolina. It increases funding for Smart Start by 15 million dollars, which would increase by 1,000 the number of slots of high quality, pre-kindergarten opportunities for young people across the State. It restores cuts to the economic developments groups in the second year fully funding the Biotech Center. Bring the recession two sectors encounter job growth in North Carolina, Biotech and Cleantech. Why you all would cut in half the support for an organization that is helping to create North Carolina to be about the third best node of Biotech in the entire country behind San Francisco and Boston is beyond me. It restores funding for the rural centers and the other rural economic groups that I mentioned earlier. Budgets are about priorities and this budget shines a bright spotlight on your misguided priorities because your proposal to cut three-quarters-of-a-billion dollars in tax breaks of the wealthiest among us at the expense of educating our children and growing our economy it makes no sense at all. You do not have to fire thousands of teacher assistants. You do not have to raise class size. You do not have to eliminate 5,000 teacher positions. You do not have to eliminate education support personnel. You do not have to raise tuition on community college students. You do not have to cut need based financial aide. You do not have to eliminate proven economic development organizations in this State. This opportunity allows you to correct that mistake. I encourage you to support this amendment. Thank you. [SPEAKER CHANGES]: Senator Rucho what's the purpose of your rise? [SPEAKER CHANGES]: To debate the amendment. [SPEAKER CHANGES]: Senator Rucho has the floor to debate the amendment. [SPEAKER CHANGES]: It's always great to hear Senator Stein stand up and make one of these impassioned speech and it reminds me of Disneyland where none of it's true and none of it's real. He talks about the fact that the enrollment is leaping up and up and all the things that ever go up insofar as education enrollment is what's guesstimated. The results for the past five years have all been flat. But lets talk about things Senator Stein and his friends seem to be touting all the time. You look at it and he says how wonderful things were. We've got this brand new car that thanks to Senator Stein and his friends they were able to give us over the last number of years and yet he says well, lets have this brand new car. We're going to fill up this car with high test gasoline and what he forgets to do is put four tires on it because it basically does nothing. You sit her and listen to what he's talking about and how he's going to save the world, let's talk about some of his successes. Oh, gracious, let's talk about income. Since 1997, North Carolina, under his tax and spend policies, which I have to tell you are considerably failed. Talk about the fact that income is declining since 1997 in whether you talk about per capita income or you talk about net household income, and you know what that means ladies and gentleman, that means thanks to Senator Stein and his friends everybody's paychecks have gotten less. Not only because of the environment of work but more importantly because of their tax and spend policy because they take the money from the people, hard working people, so they can use it on some of Senator Stein's projects. Let's also talk about the fact that his policy, something that he professes in all of these great programs and government assistance where he wants to make everybody dependent upon government. He wants to have a system where everybody is going to be taken care of by government. Don't worry you don't have to do anything and evidence is clear folks will get government assistance. They're eligible for government assistance. There is no incentive to be out there working. What Senator Stein forgets to understand very clearly is the fact that the best way out of poverty is a job. His system has delivered no jobs. Our system has provided jobs, at least 179,000 since July of 2011 and he keeps complaining about what we're doing. Let's really take a look at that. Another factor that Senator Stein has he talks about all the great things, all the jobs that he's going to create with an education. Well it's great to have an education. Most of us here are educated. Most of us are trying to - you look at the education system

??care of at-risk women of vision for the association and the sentence times index fell friends we have a lot of experience in the seventies of the so-comments from-behind-the-led invasion time is the mother of that says that he has his way out of its own meals tax-evasion division I-five-high school and the least we as they are designing-educating people us that you identified a division of the nations that have not been competitive economy has not just these one-size-fits- up is why the state, and he is a small as of $19.7 billion deficit deficit is finding his friends may visit of seasons were on the defendant-fifth edition misstated that has me that sometimes as an assistant major impact of a 16.7 and $230,000,000 surplus well as a satisfying of his friends that the system, E, at the time unsupportable an unsustainable was finally, the activity system and this is why this budget and economic policy of using this as early as this discussion on this, now that this man is done as a center NMS of the caucus this and all the vegetation is abiding by the president of the happy, the personal dramas are paid attention on the content of the future site along the Ingres five states is the same 87 anything about the education messages of love them all the time, people and events of the hospital and impossible at this time, and not satisfy the streets Friday that he was on the issue of the(SPEAKER CHANGES) NT well-policy and copper-aging policy and I know she said, as an insufficiency of the testers ms-DOS and his wife and stepson-¬as a contingency plan also to allow us to the Indian head likely that, for his finest making great strides in any of these things-site has limits on time-he has one and is raising a seven-but-equal level as people because when time he's the last people and businesses to be invited to be able to compete against Lopez 7000 statesmen lightly and ensure that the price of the times of ceo and the city's action: satisfied, some of that his forehead is finds the 8-19 thirties the system as it has and riled center and others as that of the state-of-five at the time speakers into the business-to-seven- Thailand that the syntax of all system that will outlast this has made it easier to set up some customers rest of the times that this is one of the things that you had a major on the only are the time seven-day start, in a matter of some of the retaliation for the events and that suffers that, please send them out-of-the-at the San Simeon house-senate, and of the several expressed in an existing, off U.S. Disasters of the 701 and 1913, the model and policies at the age of the business times and individuals that has passed as budget of the action had been seen a significant number of Johnson to the state of the lot is the founder of the the best way out, is a good job send me to modify the time is activated, the economy is this activity I'll do not know she is no doubts that money these events beyond the shot that happen, in the state of the delays in the house. Has this has anything to some in-the-777-7740 statement of ???.............

That's about as good a time and have the edge of the ms-DOS is the data about that, since then, as a defensive end-systems in-time that has access to them and that is evidence of a six-and-out-of-past-Mac time as possesses a pass that was the issue and that has been the school systems to them, and the investment is station and the vendors under the five-time that(SPEAKER CHANGES) Mannesmann Saturdays-that-that the timing is the sense of injustice and suddenly the Westside, via that I have a set of an ascendance of the seven-iron station that has the index based Macias and have that we have a given time and since then they find a non-CIA's and the hiring teachers-tax plan-center of education that the defendant of a child of this summer's, the a- up-and that the that's a that has as a dozen that I'll than as a day-that's a lot of them in the house times test would have ended, has not issued and has- act as symphony and other a 70 , as the attacks have added a bus at am a student of the smaller cuts child dns this has meant as many as half-and-a-night because of the NMS that time, she has a chance to have the chance that some of the past, the school's -that-specific estimate of that signed a 27 of its business that has been a day, that has ended and smells and then the estimates that this hasn't centers times-and soon as this-and-desist-that that's chance that the time he's not-so-chaos that they've had a file of example that we have 777 as a man and 1/2-events at the expense of the above-the people has happened this is not a daytime show-up of acts as a of accent that as the people of the state of at the end of this has a sense that I'm six to those that a system that, that this is the fact that comment at this child that this has happened and the fish does that this acts as a time as a-half and half- defense at the ethics and then I'll have access to the vestiges of the system to the site that is that the 70-a-child said the chaos of a 20-fifth of the friends end of this is a sign an citizens of the judge's-time stressed citizen's arrest-handedness PC Data Systems as president of course, for she wanted 5¢ operating income at the show, say I'm a common west race at a distance to the head as he and child center, the pressure ???...

rise? [SPEAKER CHANGES] Speak to the amendment. [SPEAKER CHANGES] Senator Parmon has the floor to speak to the amendment. [SPEAKER CHANGES] Thank you. What I would say to my colleagues is that I am a member of the Education Appropriation Committee and if I had had an opportunity to participate in the budget process, I would have fought for those things that’s in Senator Stein’s budget – I mean amendment – and I want to thank him for bringing those before. I did not have the opportunity on behalf of my constituents to fight for these, and I would ask you to support the amendment on that basis. Thank you. [SPEAKER CHANGES] Is there any further discussion or debate? Hearing none, the question before the Senate is the passage of Amendment 1. All in favor vote aye. Opposed will vote no. Five seconds will be allowed for the voting. Clerk will record the vote. 18 having voted in the affirmative and 32 in the negative, Amendment 1 fails. The bill, un-amended, is back before the body. [SPEAKER CHANGES] Mr. President? [SPEAKER CHANGES] Senator McKissick, for what purpose do you rise? [SPEAKER CHANGES] Send forth an amendment. [SPEAKER CHANGES] Senator McKissick, you can send forward your amendment. Clerk will read. [SPEAKER CHANGES] Senator McKissick moves to amend the bill. [SPEAKER CHANGES] Senator McKissick is recognized to explain the amendment. [SPEAKER CHANGES] This amendment is pretty straight forward. First what is recognizes is the fact that what’s embedded in this budget is simply an opportunity to provide tax base to the wealthiest of our citizens here in North Carolina, and it’s been contemplated we’re going to be increasing sales taxes, and it’s doing it at the price of sacrificing economic development that’s absolutely crucial to job creation, particularly in our rural areas, and if you’ll look at our rural areas, they are suffering today. They have higher than average unemployment rates, the opportunities for them to expand their tax bases is very challenging for them in these difficult economic times, coming out of a recession, and those factors very, very deeply concern me. What this amendment does is several things. First it looks at the funds that will be coming into Golden Leaf. Of course, we all know that when golden Leaf was established, it was to assist those economies, particularly in our rural areas, that were dependent on tobacco as their economic mainstream. Those that were employed in the fields, those that were growers, those that were being displaced tobacco workers. So in many respects that was what the master settlement was all about, and what we’re doing today and what’s proposed in this budget is to take the funds that’s not coming from government money – it’s coming from the cigarette manufacturers, and rather than dedicating it as it was always intended, to go to those tobacco-dependent economies in those rural areas of our state, it’s absolutely establishing a permanent roadblock – a roadblock that will be a part of our law, that diverts the purpose of the very funds that the tobacco settlement was all about. What this amendment does, it takes those funds that are coming in, and what we’re looking at in terms of their totality, it’s roughly about 137 and a half million dollars, and it basically takes 68 million 750 thousand, and it goes back to Golden Leaf. It also takes the remainder of it and goes into that special trust fund that was originally established. And what do we do with those funds? Once they are reapportioned in a way that’s fair, that’s reasonable, that’s equable, that’s consistent with the original master settlement, we put it where it deserves to be to assist those rural areas in our state, those tobacco-dependent economies, in helping them to rebuild the opportunities which they have lost. How does it do so? It goes back and it helps the Rural Economic Development Center, an institution which has impeccable integrity in terms of assisting our state, and particularly in the rural areas. If we go back to what they have done in recent years, just between 2007 and 2012 they created over 19,911 jobs. They’ve assisted communities with water and sewer projects, done over 518 grants, 149 million awarded, 557 million leveraged, 504,101 customers served. In terms of job-creating infrastructure, they’ve gone in and done 110 grants, 38 million awarded, 122 million leveraged, 134 new and expanded businesses, 6,361 jobs.

I could go on and on in terms of what they’ve done in terms of housing. 279 grants, $41 million awarded, $544 million leveraged. They are doing enormous work to help those tobacco dependent economies, to help rural portions of our state that need a helping hand to provide the water and sewer infrastructure, to provide the opportunities for job creation, to help those individuals that are suffering today in a very profound and significant way. It also looks at other opportunities for Golden Leaf. What is Golden Leaf? What have they done? Well, in 2010, there 20 economic development grants which generated 4709 jobs, grand total of about $16.4 million. Golden Leaf is doing a remarkable job. Golden Leaf has an established track record. Golden Leaf is making a difference in the lives of many in our state. That is the sort of thing that we should be doing. Of course, all of this is being paid for. How? On the backs of the hard working people of this state who are now...what are they going to be doing? They’re going to be paying more taxes in sales tax dollars. The wealthiest of this state are the only ones who are going to be getting the tax breaks. The wealthiest. Golden Leaf is the type of institution that’s out there that’s create 48,000 jobs. $2.9 million private investment. We also restore funding to a number of non-profits that are out there. There’s a group of entities known as...or what we affectionately refer to as the minority economic development package. Why are they important? For one reason, and one very significant reason. Many of them are helping minorities throughout this state who are disproportionately impacted by this recession, who in every set of statistics that you read and that you observe are showing higher than average unemployment rates. Those funds going into the Community Development Initiative, the Institute for Minority Economic Development, Land Lost Prevention, North Carolina Associated Community of Developers, as well as those that are not just looking at minority types issues, such as the North Carolina Farm Bureau and their Ag in the classroom. The North Carolina Indian Economic Development Initiative. The Regional Economic Development Commissions. The Support Center. It restores their funding. It restores funding for the biotechnology center. One thing we know is that we’ve invested wisely in biotechnology in this state and it’s producing substantial benefits in terms of job creation in additional investments by the private sector. We fully fund the cancer research center, because it deserves to be funded. Most of the lives of you in this room will be touched by somebody who has cancer. There’s no reason we should be backing away from that commitment that we have made as a state. That’s a mistake. That’s not the direction that we should be moving. We should not retreat. For all these initiatives that I’ve spoken of, all those about job creation, all those that are incentivizing private investment, all those that are creating economic benefits for many, jobs. We need to be doing it. Not providing benefits for the wealthiest in this state. That’s not what it’s about. So with that, I offer you this amendment, because it’s the amendment that will establish that moral compass. It’s the amendment that will help us recommit our resources as a state, recommit our efforts to restart this economy, recommit our efforts to help those that are least of us that are having the most difficult and challenging times, overcoming the impact of this long-term recession that we’ve all experienced. It will help us to renew our commitment to helping those that need a hand. We took the oath of office, that’s one of the obligations that we took. When we came here as legislators to debate and to look at our budget and to help establish priorities, we should be committed to making certain that our solutions, our budgets are fair. That they’re equitable, and that they do, in fact, help this economy to restore the types of jobs that we need when so many people are suffering. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Bryant, for what purpose do you rise? [SPEAKER CHANGES] To speak on the amendment. [SPEAKER CHANGES] Senator Bryant has the floor to speak on the amendment. [SPEAKER CHANGES] Members of the Senate, in order to reserve funds for the tax cut for the wealthiest of our citizens, you have eliminated the most successful model for public/private partnership we have in this state….

The economic development non-profits that are a part of this amendment. For 26 years, the rule center [?] has provided a phenomenal service throughout this state, and are the gold standard for water and sewer development-- not only in North Carolina, but nationally. The minority economic development non-profits have developed over 20 years of expertise in delivering our phenomenal economic development services to the most distressed areas where private developers and local governments dare not trod. This public/private partnership of the minority economic development groups, have provided over 11,000 jobs and generated $600 million to aid community development and housing development and help over 50,000 North Carolinians become more financially secure. And what are we doing? We're replacing this public/private partnership with two or three more government agencies that will be stretching across this state, at a time when, I thought, limited government was in, and public/private partnerships were also an important part of that strategy. To fund your tax cut, you have eliminated almost 10 million dollars a year in the CDBG grant for scattered-site housing, and small business, entrepreneur development. These funds are specifically targeted for working families in the 97 counties of this state that do not receive federal funds directly in CDBG grants. They now will no longer have this source for scattered-site housing for their most blighted areas and where they have the most urgent emergency needs for community development. In addition to that, you've cut $800,000 per year in the [??] and I'm rounding; it's probably closer to nine, to the housing trust fund. Some say, "Well, the rule center will have 100 million dollars left," but you know when you say that, that this $100 million is already committed in grants and loans that have been obligated, and it will only be available as those loans are repaid. So, by putting our regional staff in the rural areas is admirable, and I understand that strategy, and can support that strategy-- what it doesn't do is help build the capacity of these rural areas and small towns to develop the economic development projects that you are able to fund with the remaining monies that are left. The local boards in these small towns that turn over quite frequently, with the fast aging of the communities in our small towns and rural areas, and the emerging young leaders that need to be developed. We need the mediating support-- institutions that these private/public partnerships provide to help prepare these very communities that need the most help to participate in the economic development activities. To fund your tax cuts, and because you won't listen to us, and you won't hear us, and you won't open your eyes to see what we need in these rural areas, you are emasculating rural North Carolina and cutting us off from government by imposing what you think we need, rather than what we are telling you we need and opening your eyes to see what has worked and to open your eyes to see what the real needs are. You cannot help people by imposing on them help that doesn't help. This is offering them the help that will work. For that reason I ask you to support this amendment. Thank you. [SPEAKER CHANGES] Mr. President? [SPEAKER CHANGES] Senator Apodaca, for what purpose do you rise? [SPEAKER CHANGES] To see if Senator Bryant will yield to a question. [SPEAKER CHANGES] Senator Bryant, do you yield? [SPEAKER CHANGES] Let's go. [SPEAKER CHANGES] Do you yield, Senator? [SPEAKER CHANGES] Pardon me, I didn't understand. [SPEAKER CHANGES] Do you yield for a question, Senator? [SPEAKER CHANGES] Yes. [SPEAKER CHANGES] Senator, I have looked through this budget, and I've heard your talking points about tax cuts for the rich. Can you please point me to the page and the line number of that tax cut? [SPEAKER CHANGES] Senator Apodaca, I cannot, myself, point you to that page, because I have not been focusing on that, but I understand there is an almost-$700,000 reserved for-- 700 million dollars, I'm sorry-- reserved for a finance package. That's what I'm told.

and I have seen it in that I can't refer you to that page but I can get staff to refer you to that stage. It is finance package, page 1 of the general fund availability statement. [SPEAKER CHANGES] And what number - [SPEAKER CHANGES] 770 million dollars, sorry about that, line 26. [SPEAKER CHANGES] Follow her up. [SPEAKER CHANGES] Yes sir. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Bryant you ?? [SPEAKER CHANGES] Yes. [SPEAKER CHANGES] OK and the notation on that? [SPEAKER CHANGES] I don't understand what notation you're talking about? [SPEAKER CHANGES] What is it called, give me the page number? [SPEAKER CHANGES] Page 1, of the money report, page 1 of the money report. Line 26, under adjustments to availability. Over the by idium, it is 770 million dollars. Initially it's 217.1 hundred million. I guess that's the right, there's so many zeros I don't even know how to talk in these many zeros. [SPEAKER CHANGES] OK, follow up. [SPEAKER CHANGES] Yes sir. [SPEAKER CHANGES] Senator do you yield? [SPEAKER CHANGES] Yes sir. [SPEAKER CHANGES] OK, and, I don't see a notation for rich. [SPEAKER CHANGES] Well, my understanding of reviewing the proposals..we don't know the details, would love to know the details, but for what I have been, have seen in the proposals that have been put out in the press and what's been available from staff and from staff have put out from other sources, most of the benefit would be to those who are wealthy including estate tax cuts, elimination, etc. So that's what I mean. [SPEAKER CHANGES] And where is the follow up, where's that in here. [SPEAKER CHANGES] Senator Bryant do you yield for a follow up? [SPEAKER CHANGES] That's not in this book. That is where, we are happen to make- [SPEAKER CHANGES] Speak on the bill. [SPEAKER CHANGES] I would like to finish my response Mr. President. [SPEAKER CHANGES] Senator finish your response. [SPEAKER CHANGES] We're, without any information on what your tax proposal exactly is. We're having to make the best sense out of it we can based on the information available. Everything that is available from the Senate and the House or what and what you're saying, your speeches and press releases. [SPEAKER CHANGES] Mr. President, follow up, Mr. President. [SPEAKER CHANGES] Senator Apodaca, follow up question? [SPEAKER CHANGES] I'm confused Senator, where is the House budget in here. Where are we talking about the House tax cut. [SPEAKER CHANGES] I was just speaking in general, assuming that you are aware, assuming you all confer and collaborate on some level on these finance package tax proposals. I was just splitting the odds between the varying proposals, that's all. [SPEAKER CHANGES] Mr. President speak on the amendment? [SPEAKER CHANGES] Senator Apodaca ?? to speak on the amendment. [SPEAKER CHANGES] I feel like Alice in Wonderland. I mean we have all these accusations coming down about tax cuts for the rich, this does this, we got the House budget built in here. We heard the talking points of the Middle Class and the rich, ba ba ba ba, you know, let's stick to the facts we have in front of us. Let's vote against this amendment, thank you. [SPEAKER CHANGES] Senator Brown for what purpose do you rise. [SPEAKER CHANGES] Speak to the amendment. [SPEAKER CHANGES] Senator Brown has the floor to speak of the amendment. [SPEAKER CHANGES] First of all, Senator McKissick on your amendment you talked about Golden Leaf, and you talked about the rural center and I think Senator Bryant talked about the economic development partnerships. And what they mean to rural North Carolina, and what will be lost with some of these ?? First of all we captured the Golden Leaf's money for this particular year, but what you didn't say is Golden Leaf has 700 million dollar fund balance at this point. So they have 700 millio9n dollars, it's in their fund balance, that they could have out in the community, but they've decided to hold on to those dollars. So I guess one question I'd have to ask is what do you think they should have, a billion dollars, 2 billion dollars? What kind of fund balance do you think maybe they should have? Then we talk about the rural center. The rural centers got 100 million dollars, or over 100 million dollar fund balance, so again, is it 200 million, 300 million? What kind of fund balance should we let them have instead of getting those dollars out into rural North Carolina? In our budget plan we try to streamline the process to get dollars out to rural North Carolina. We actually spend more money for rural North Carolina in our budget. And you try to defend the status quo about rural North Carolina so I thought I would give Senator Bryant in particular, I thought I would look at some numbers and Nash County's got 11.8% unemployment. Wilson County is 12.2% unemployment. Let's just touch a couple other rural counties. Mitchell County, 13.7%, Avery County is 12.3%, Cherokee County is 12.2

Grand County 17.8, Swayne is 16.7, Rutherford 12.6, Robson Country 12.3, Scotland 16.1, so I guess our process is that we are doing now is that we are doing a great job for rural North Carolina. We have really affected unemployment in those counties, haven't we, with what we are doing today. I think it's time we look at some new ideas on how we attack these figures in rural North Carolina and come up with a new process, that streamlines that process and gets those dollars to rural North Carolina, to benefit those counties. And that's exactly what this budget does. It creates a new rural economic development division within commerce that focuses some dollars on rural North Carolina, and it also creates a new rural infrastructure authority which streamlines what dollars can be used for. Right now the rural center has expander what their dollars can be used for just like ?? leaf has. I don't think anybody can tell me anymore exactly what those dollars can be used for, because they continue to expand them, and expand them, and expand them, and I don't think they are helping rural North Carolina any more in a lot of ways. So we have tried to streamline a process, make it better, to get those dollars to those rural counties that truly do need help. I've got one, Jones County, I've got a rural county, I'll understand this issue as well as anybody. And I think that when I talk about these unemployment numbers, it's pretty obvious to me that that what we're doing today surely is working. [SPEAKER CHANGES] Mr President [SPEAKER CHANGES] Mr. Cook, for what purpose do you rise [SPEAKER CHANGES] To correct an error. I voted the wrong way in the last Amendment, I didn't mean to encourage the class warfare propaganda, I should have voted no. [SPEAKER CHANGES] Change Senator Cook's vote to 'No' on last. 1733 is the final number. [SPEAKER CHANGES] Mr. President [SPEAKER CHANGES] Senator Nesbitt, for what purpose do you rise? [SPEAKER CHANGES] To speak on the Amendment [SPEAKER CHANGES] Senator Nesbitt has the floor to speak on the Amendment. [SPEAKER CHANGES] Thank you, Mr. President, and members of the Senate. I'm pleased to hear that the tax plan that was rolled out by Senator Rucho and Senator Berger at a press conference is not the tax plan and that you have all abandoned that, that's the one we are talking about, it was analysed by people all over the state of North Carolina and I think editorialised by every paper in the state that is was a - I called it the largest tax increase on the working people and the middle class in the history of the state and I think people pretty well agree with that. It took about six billion dollars of the high earners and it put about five billion - [SPEAKER CHANGES] Mr. President [People talking over each other][SPEAKER CHANGES] Senator, if you agree [SPEAKER CHANGES] Are we talking about the appropriations act or are we talking about the phantom tax package that's not contained in here? [SPEAKER CHANGES] Senator Nesbitt. [SPEAKER CHANGES] Sorry, Mr. President, I'm talking about that phantom tax package that shows up on line 26 of the budget document as a reserve of 770 million dollars over two years - [SPEAKER CHANGES] Mr. President [SPEAKER CHANGES] And its phantom because nobody's ever produced a bill. [SPEAKER CHANGES] Senator Bryant, for what purpose do you rise? [SPEAKER CHANGES] ?? of order [SPEAKER CHANGES] Senator Byrant. [SPEAKER CHANGES] Are we not on Amendment number two? [SPEAKER CHANGES] We are, Senator. Senator Nesbitt if you will just keep your comments for Amendment two please. [SPEAKER CHANGES] Amendment number two takes this money to fund these programs, and senator Senator Apodaca spoke to it also, Mr. President. That's the Disneyland, that's the Alice in Wonderland, we've gotten into a situation down here where people hold a press conference, say what they want to say and don't produce a bill. The governor had a transportation plan he, he made a speech that send somebody to get the detail - there was none. There was no handout. ?? seen anything. We had a press conference about a tax shift in this state that was six billion or five billion on with no bill, so we got to assume that's the only thing we've seen, now if you've got a new tax package that takes care of the middle class and working people, tell us about it. But your reserving the money to do, I would assume, what you've said your gonna do, and you want to keep blaming everything in this budget on medi??, the problem with this budget is you start out and and take 770 million dollars in tax break -

For the wealthy and set it aside and say we're just not going to talk about that. And that's to make up the extra billion we can't make up to give these tax cuts to the wealthy. And so we're going to take them out of these programs. That's why we're (cross talk) [SPEAKER CHANGES]: Mr. President. [SPEAKER CHANGES]: Senator Apodaca what is the purpose for your rise? [SPEAKER CHANGES]: Senator Nesbitt do you have a question? [SPEAKER CHANGES]: Senator Nesbitt do you yield? [SPEAKER CHANGES]: Yes sir, I'll yield. [SPEAKER CHANGES]: Where does it say tax cuts for the wealthy? Show me wealthy. [SPEAKER CHANGES]: Senator Apodaca, all I can do is tell you, I can't make you understand. [SPEAKER CHANGES]: State your ?? senators . [SPEAKER CHANGES]: I've lived that the last eleven years. It's line 26 called finance package minus 217 million the first year minus 553 million the second year. You're taking 770 million dollars off the table so that it can't be considered for all these programs that you're cutting. Thank you Mr. President. [SPEAKER CHANGES]: Senator Bryant what is the purpose for your rise? [SPEAKER CHANGES]: I just want to speak a second time on the amendment. [SPEAKER CHANGES]: Senator Bryant has the floor to speak a second time to the amendment. [SPEAKER CHANGES]: And I want to say in all due respects to Senator Brown, who has been very nice, and I agree with a lot of what he is proposing to do, but in this rural economic development piece he knows we disagree on the approach and that is that we are putting some money in this rural new economic development authority again creating a new government agency. It's got to start from scratch. No relationships, no track record, no nothing to serve the most needed areas of our State at the most critical time in our economic recovery. I would also add that those numbers you read in the areas of my State would have been worse had it not been for the organizations that we are talking about today, and I was not talking about the partnerships as much as I was talking about the minority economic development organizations and I wanted to make that point and back to the hundred million dollars for the rural center you know and they have provided documentation and those funds are already obligated in existing grants and loans. Thank you very much Mr. President and members. [SPEAKER CHANGES]: Mr. President. [SPEAKER CHANGES]: Senator Stein for what purpose do you rise? [SPEAKER CHANGES]: Point of order. [SPEAKER CHANGES]: Senator Stein you have the floor for a Point of Order. [SPEAKER CHANGES]: I use this as a point to Senator Apodaca. I used my computer, I went to NCtaxcut.com and there's a great video of the President of ?? Burger. That's the tax cut that we've been referring to. [SPEAKER CHANGES]: Mr. President. [SPEAKER CHANGES]: Senator Apodaca. [SPEAKER CHANGES]: Inquiry of the Chair. SPEAKER CHANGES: Senator. [SPEAKER CHANGES]: Are we talking about videos on the computer or are we talking about the State budget. I can go on the Internet and find videos about a lot of things. [SPEAKER CHANGES]: Senators we're getting a little out of hand here. Lets keep our comments to the budget. Lets keep our comments to the amendment at hand please. Senator McKissick what is the purpose for your rise? [SPEAKER CHANGES]: Speak on the amendment. [SPEAKER CHANGES]: Senator McKissick has the floor to speak on the amendment. [SPEAKER CHANGES]: One thing I can say, and I think it is very transparent, we can all agree upon some of this data and information, is that the rural center has done an amazing and effective job. You cannot do what they have done, and I spoke earlier in specifics about water and sewer projects since 2007 518 grants, 145 million awarded, 557 million leverage, 504 thousand people served. You cannot do that the way it's proposed in this budget all for 4 million dollars. The numbers just don't work, but yet that's what is being put in as a substitute of the rural center to provide some rural infrastructure grants. You can't serve 504 thousand people, you can't make 145 million in grants on 4 million. It's a pitiful substitute. Talk about Golden Leaf, well, they set up something called Little Tobacco Trust Fund Entity and it's 2 million. Well, Golden Leaf should have had 68 million. What happened to the other million? If you subtract that 2 million from the 68 million it leaves you with 66 million dollars. It would certainly appear that if that's going to the general fund, if that indeed is embedded in these lines which I see in the budget in page 5 where you talk about the finance package hoping 217 million 100 thousand dollars in year 1 of the biennium and 553 million in year two of the biennium. If you look at those numbers and you take that 66 million and it's going

general fund and you hear what's been articulated consistently about the tax plan is going to consist of and we noticed to be about a hundred and forty seconds taxes impose. we know that for the person making the seven thousand dollars, you're less likely to pay the money even though the rate may come down to prompt the second does indeed look as if you given a tax increase to the wealthiest among us. the numbers speak for themselves. you cannot very say you're lowering the amount that these high income taxpayers pay as part of income and has been articulated as what's been wrong about finance time to time and again inarticulate summative if there could end up paying less article to have a more interview not felt well golden leaf to have that money and we know it is spreading. we talk about counties is look at the counties only going to the Rowlands, Caterpillar, Lee County, three hundred twenty two jobs person can be under twenty two jobs sent. Vance County, two hundred fifty six jobs glass works, sorry County, two hundred sixty jobs were scarce, Robert Downey, two hundred sixty jobs at our wiki based on county one hundred sixteen jobs, Ashley David County, five hundred fifty job. Tyler Anderson County part-time similarities are as you have requested to you on a synergistic value for Ashley furniture you, did you know what they are not project in detail. if you tell me this one all alone when that project. I'm not straightforward, each as transaction regular belief in fact, when Gary felt assisted in the funding of that initiative and chocolate creation of those jobs you carry in your district and I'm sure your constituents are thankful for these things which you contributed on that together and you deserve to be recognized for your contribution. I'll think that thank you [SPEAKER CHANGES] Ms. Jessica said that since he is about as far as I'm at work on Ashley Rogers exactly what were doing well, North Carolina, putting the money into infrastructure into the project, not into administration, not the bureaucrats are geographically but putting it into infrastructure items in the ground to get water, sewer, so the people of North Carolina can have jobs of Babylon 's jobs is exactly what the budget doing, and I urge you to vote against the amendment [SPEAKER CHANGES] suitability approach draws her to the floor is suitable for the Sabbath is the definition of insanity must continue to send you expect a different result that is referenced by the Senate to change the world that we currently do it because it is definitely not working as a friend and they were pushing that I have to understand that mythology is somehow cheat the same thing as murder and murder. somehow there I said it was like when I got up here is first selected in the last was the freshman class that the state was seven thousand dollars in debt and finances in the past positions and power was used to spend that amount. I was still going to go to in English taxes so that without I was on the definition of that management is a Democrat. that's the job him him him. this mythology cannot tax calculation necessary to him,which is better than anyone else that is different, so I had to Brooks and with an opposing party because they know that those things will continue throughout the rest of the state to continue to hear that the transaction prosperity resolution images in my benefits inside the problems it doesn't matter some positive changes in San Francisco as soon as we continue to chat on the North Carolina financial planning jobs because the segment where the private sector to pick up the slack is a further discussion of a similar letters were addressed

...speak on the amendment. [Speaker Changes] Senator [Rogers? Not on list] has the floor to speak on the amendment. [Speaker Changes] You know guys and ladies, we've had a lot of discussion here this afternoon. And I come from Robeson County, Fairmont. A town of 1900 folks with thirteen [??Debauket] warehouses. And there were a lot of rich people in that town, Senator Goolsby. And we're proud of our heritage and we worked hard for what we had. And our Master Settlement Agreement is not taxpayer money. That belongs to [??Debauket] dependent counties and the communities of North Carolina. It does not belong in the general fund. And we were getting off messages, Senator Rucho you turn around, I've been glad that you're for question. But this belongs to [??Debauket] dependent counties and the citizens of North Carolina that were affected, and not the general fund of North Carolina. [Speaker Changes] Mister President. [Speaker Changes] Senator Brunstetter, for what purpose do you rise? [Speaker Changes] To speak to the amendment. [Speaker Changes] Senator Brunstetter has the floor to speak to the amendment. [Speaker Changes] I think it's time this bill's sponsored a way in. Mister President, I told you when you got here there'd be days like this, didn't I. [Speaker Changes] [laughs] You did. [Speaker Changes] Members, I appreciate Senator McKissick bringing the amendment, but I would ask you to oppose the amendment. [Speaker Changes] Any further discussion or debate? Hearing none, the question before the Senate is the passage of Amendment 2. All in favor vote I, opposed vote no. Five seconds will be allowed for voting. The Clerk will record the vote. Seventeen having voted in the affirmative and thirty three in the negative, Amendment 2 fails. The Bill, unamended is back before the body. [Speaker Changes] Mister President. [Speaker Changes] Senator Nesbitt, for what purpose do you rise? [Speaker Changes] Send forth an amendment. [Speaker Changes] Senator, you can send forth your amendment. The Clerk will read. [Speaker Changes] Senator Nesbitt moves to amend the bill. [Speaker Changes] Senator Nesbitt's recognized to explain the amendment. [Speaker Changes] Thank you, Mister President. And members of the Senate, I bring you an amendment to actually create money and do a lot of good things for people while you do it. In essence, the amendment would go ahead and pick up the expansion of Medicaid. And interestingly enough, when I started looking at this, there's a net gain to the general fund of about 72 million dollars - it generates 93 million, costs 25. The rest of that money's available to the general fund and y'all can spend it or give tax cuts with it or whatever else you want to. In essence, this would actually generate 250 million over the next ten years, it would insure 563,000 people, create 23,000 jobs, Senator Rucho, sales taxes, income taxes, and the list goes on. And I bring this to you because it's 100 percent federally funded for the first three years, it generates income to the state, it helps these rural counties where they have an abnormally high percentage of people that are uninsured - you've gotten letters from the Hospital Association telling you that - and it will help bring our economy back. We need jobs desperately in this state and we're sitting here ignoring 23,000 good paying jobs in the healthcare field large and with a disproportionate share to the rural areas. I pitch that out there to you because I think it's the right time and the right place to do that. I would say to you, I know there will be some question about the management of Medicaid. And nobody's mentioned this, but I can remember two years ago, when Sector [??] wrote a letter, it was read on the floor during the budget, that you would have a shortfall in Medicaid if you passed the budget that you were fixing to pass. That there was no way DHHS could make that budget. And they didn't. And the problem with Medicaid is not Medicaid. The problem is your ability to properly budget. And to listen to the input you get from the people that are having to manage the [??].

So I urge you to do this. I think it is a, it’s, it’s good. Straight to the point. It generates an exter $68,000,000 for your budget or once again tax cuts. Whatever you’d want to do. And it helps a whole lot of people in the state of North Carolina. And it helps those rural counties that are getting killed in the rest of this budget. [SPEAKER CHANGES] Senator Hise for what purpose do you rise? [SPEAKER CHANGES] Speak to the amendment. [SPEAKER CHANGES] Senator Hise has the floor to speak to the amendment. [SPEAKER CHANGES] Thank you Mr. President, members of the Senate. We service over 1.2 million people on our Medicaid program in the state of North Carolina right now. We can’t begin to keep up with cost overruns, the inability to forecast. And I am beyond confused that someone can stand up and say the solution to that is to expand it by 50%. Because the Federal Government is so great they always keep their promises moving forward. This is a shiny object. Look here. Catch it. For two years we’re funded at 100%. Some of those other cost savings that are listed/g things we provide for individuals outside the Medicaid program such as AIDS drug treatment and others that say they can be picked up under Medicaid if we just expand it. That misses the point you can pick them up under the exchange as well. So I would adjust some of those numbers accordingly. But I think we’ve just made a huge mistake moving forward because it doesn’t end. The Federal Government starts stepping out of the way. They start stepping out of the way into 95%. And then 90%. And by 2020, you know that’s not in the law anywhere. And when they step back to 65%, we have another entitlement program that just exploded. There is no decision that I think we can make that would be more detrimental to this future of this state’s budget than to jump off this cliff for the rest of the country and to dive in. Our job and our responsibility is to control costs in this program. To speak to every Congressional member we speak and let them know that the only solution to this is to get it out of the Federal hands and block grant it to the state moving forward. But there is no solution here with the expansion. There’s a sol, there’s an option here that will destroy rural healthcare and will destroy North Carolina’s budget taking with it our education and judicial systems and asking the question why haven’t we spent more? Thank you members. I do ask you to defeat this amendment. [SPEAKER CHANGES] Senator Robinson for what purpose do you rise? [SPEAKER CHANGES] ?? Ask a question. [SPEAKER CHANGES] Senator Hise do you yield? [SPEAKER CHANGES] Absolutely. [SPEAKER CHANGES] Senator Hise, in number 59G12 I believe in HHS budget the exchange premiums, is it correct? Am I correct that you are proposing to transfer the coverage of pregnant women to the health exchange from Medicaid? [SPEAKER CHANGES] The health exchange is not under Medicaid. They are leaving the Medicaid program. We are reducing from 185 to 133 of the percentages in which individuals are eligible for pregnant women. And we are exchange moving them to private insurance. That is correct. [SPEAKER CHANGES] Okay. And my, follow up Mr. Chair? [SPEAKER CHANGES] Senator Hise do you yield? Yields. [SPEAKER CHANGES] Absolutely. [SPEAKER CHANGES] And with that transfer of those women to health exchange is there a guarantee while the state pays their premium, is there a guarantee on the limit of the out of pocket expenses those women may have to pay? [SPEAKER CHANGES] There is. [SPEAKER CHANGES] There is? [SPEAKER CHANGES] Is a guarantee? Can you tell me what that is? [SPEAKER CHANGES] If you’ll give just a minute to look [CROSSTALK] [SPEAKER CHANGES] Senator Apodaca for purpose do you rise? [SPEAKER CHANGES] Inquire

Senator, you have the floor. [SPEAKER CHANGES] Are we on the amendment, or back to the bill? [SPEAKER CHANGES] This is on the amendment, Medicaid, Senator. Go ahead, let him answer the question. [SPEAKER CHANGES] Give me a chance to look it up. Under the requirements for the exchange now set by the federal government by the Affordable Care Act, the federal government has determined that the out of pocket maximum for an individual on the exchange from 100% to 200% of the federal poverty level, which would cover this group, would be $1983 a year. [SPEAKER CHANGES] Okay, thank you Senator Hines. And my final question chair, and I'll get to my point. [SPEAKER CHANGES] For Senator Hise? Senator Hise yields. [SPEAKER CHANGES] Can a woman be denied coverage by private insurance if they are referred to the health exchange? [SPEAKER CHANGES] It is my understanding that under the, as the Affordable Care Act was originally rolled out and promoted to the American people, is that they could not be denied coverage on that system. Now if that's changed, that would be congress' choice and the President's, not ours. [SPEAKER CHANGES] Speak on the amendment. [SPEAKER CHANGES] Senator Robinson has the floor, speak to the amendment. [SPEAKER CHANGES] Members of this August body, while we all are, or you're looking at Medicaid, and who you aught to transfer out, I realize that low income people and pregnant women are not a priority to this body. However they are citizens of this state, and as we talk about who aught to be transferred off if it saves you four million dollars according to this budget, out of that large amount, of whatever you want to call the Santa Claus amount, then should women be denied access to coverage knowing that a private insurer may not cover the other kinds of conditions. We know for a fact that women who have smoking problems can be denied some types of services. And so what we do with this kind of amendment, I mean this kind of bill, and what the amendment would protect, is that these women, who don't have money to pay out of pocket, who can not afford even a thousand dollars, will not have health coverage, so when the babies are born, they will go without coverage, their children may add to the infant mortality rate that you have seen drop in this state. And so what we do, is we penalize the poor. We penalize the poor, regardless of what you say, to support people that are at the higher income levels of this state. I support the amendment. [SPEAKER CHANGES] Senator Hise, repurpose your aye's. [SPEAKER CHANGES] Senator Robinson, question. [SPEAKER CHANGES] Senator Robinson, do you yield? [SPEAKER CHANGES] No I won't. [SPEAKER CHANGES] Miss present. [SPEAKER CHANGES] Senator Apodaca, for purpose your aye's [SPEAKER CHANGES] May I ask Senator Robinson a question? [SPEAKER CHANGES] Senator Robinson, do you yield? [SPEAKER CHANGES] Out of respect I will Senator Apodaca, but if you tell me to get up in a hurry like you told Senator Brown, I'll sit down. [SPEAKER CHANGES] Senator, let's keep it going please. [SPEAKER CHANGES] This serious question just dawned on me. Now you're talking about women, who we all love. My mother's a woman, we all love women. We don't necessarily fight women here. But you mention that someone might be turned down for smoking. And it just dawned on me, that your seat mate was saying, golden leaf should go only to tobacco farmers. Well wouldn't this be a good medical purpose for golden leaf to participate in? [SPEAKER CHANGES] Senator Apodaca, are you asking me about the amendment, are you asking me about golden leaf? I'm not the expert on golden leaf. [SPEAKER CHANGES] Well you were talking about, follow up Mr. President? I was just going with your discussion about how someone could be turned down for smoking, for medical benefits, and I thought this might be a good tie in for a program to help those folks. [SPEAKER CHANGES] Well one good tie in Senator, Mr. President? [SPEAKER CHANGES] Senator Robinson, you have the floor. [SPEAKER CHANGES] One good tie in would be that the funding that was previously available from those funds to support health issues would continue, and that would address smoking cessation. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Rogers, repurpose your aye's. [SPEAKER CHANGES] I'll speak on the amendment. [SPEAKER CHANGES] Senator Rogers has the floor, speak to the amendment. [SPEAKER CHANGES] If I recall correctly, I said the money should go to tobacco dependent counties, not to tobacco farmers. Thank you. [SPEAKER CHANGES] Any further discussion today? [SPEAKER CHANGES] Mr. President? [SPEAKER CHANGES] Senator Brunstetter, repurpose your aye's. [SPEAKER CHANGES] Speak to the amendment. [SPEAKER CHANGES] Senator Brunstetter has the floor, speak to the amendment. [SPEAKER CHANGES] Thank you Mr. President.

I thought Senator Nesbitt's comment about appropriately budgeting for Medicaid was well taken; it's lessons we all need to learn. I remember that the two years prior to the last biennium, two of the largest bailouts in Medicaid history were in this state, and Senator Nesbitt and I, one of the things that we have done, in trying to tackle this Medicaid problem, is to take partisan politics out of it and just deal with the mechanics of it. To that end, you remember that last year, when we did the budget, we actually allocated in this body $170 million more than requested by the previous administration to cover Medicaid. So I don't think that anybody here is trying to minimize the impact of Medicaid. What we're trying to do is figure out to manage it. You couldn't manage it; we're having a heck of a time managing it too. The test way we're going to try to get that solved is to not play politics with it. With all that being said, I would ask Members to oppose this amendment. The President Pro Tempore: Is there any further discussion or debate? Hearing none, the question before the Senate is the question on the amendment number 3. All in favor vote aye; opposed vote no. Five seconds will be allowed for the voting. The Clerk will record the vote. 17 having voted in the affirmative and 33 in the negative, the amendment 3 fails, the bill is back before the body. Mr. President. Senator Woodard, for what purpose do you rise? Sen. Woodard: To send forward an amendment. The President Pro Tempore: Senator, you can send forward your amendment. The Clerk will read. Clerk: Senator Woodard moves to amend the bill. The President Pro Tempore: Senator Woodard is recognized. Sen. Woodard: Thank you, Mr. President. Ladies and gentlemen of the Senate, this is a straightforward amendment that places a strong and firm action of limited government into this bill. It takes three specific action. First, it prohibits people from registering as lobbyists if they are spouse of one of the state's elected or appointed public servants as outlined in GS-138a. Second, it prohibits the senior public servants in GS-138a from having their names placed in the title of any business. And third, it prohibits secondary employment by members of the council of state, members of the principal state departments, and deputy secretaries. This is a good-government amendment. The intent and the outcome of this amendment is to assure the voters and taxpayers of North Carolina that their public servants will not be unduly influenced by professional associations and personal access. I commend it to you and respectfully ask for your support. Mr. President. The President Pro Tempore: Senator Apodaca, for what purpose do you rise? Sen. Apodaca: To speak on the amendment. The President Pro Tempore: The senator has the floor. Sen. Apodaca: My, my, my, we can pick up the newspaper and make things personal. This is just pretty low. I don't know much more to say about it. With that being said, I move that the amendment be laid upon the table. Mr. President. The President Pro Tempore: For what purpose do you rise? To second the motion. The President Pro Tempore: The second is to lay on the table. We have one electronic vote, to lay upon the table. All in favor will vote aye; opposed will vote no. Five seconds will be allowed for the voting. The Clerk will record the vote. 31 having voted in the affirmative and 17 in the negative, the motion passes; amendment 4 lays upon the table. Mr. President, Mr. President. The President Pro Tempore: Senator Nesbitt, for what purpose do you rise? Sen. Nesbitt: For a point of order. The President Pro Tempore: Senator Nesbitt has the floor for a point of order. Sen. Nesbitt: Thank you, Mr. President, and I know the tabling motion's non-debatable, so I didn't want to get up in the middle of that, but once again I would ask the President to observe the decorum. I don't think it's appropriate to start slurring other Member's rights to get up in this body and argue points and offer amendments, and calling them low is as if, I don't know, there are words words than that, I guess. The President Pro Tempore: Thank you senator, I'll take that into consideration. Mr. President. The President Pro Tempore: Senator Warren, for what purpose do you rise? Sen. Warren: To offer an amendment. The President Pro Tempore: Senator, you may put forward your amendment. Sen. Warren: Thank you. The President Pro Tempore: The Clerk will read. Clerk: Senator Warren moves to amend the bill. The President Pro Tempore: Senator Warren is recognized to explain the amendment. Sen. Warren: Thank you, Mr. President. Members of the Senate, Senator Apodaca, and Senator Nesbitt. I think I'm going to be able to get through this amendment without mentioning a specific amount of money or where it came from, but it does follow along the lines that Senator Woodard brought forward about good government. We've heard a lot about government efficiency, we've heard a lot about government reform. I want to follow that up with what I think we all could agree, that our citizens deserve a state government that is a...

accountable. A state government they can have confidence in and one that focuses on accountability of taxpayer dollars with proper oversight. My amendment speaks to the proposed transfer of the state bureau of investigation to the governor's department of public safety. There's no justification nor cost saving that would result from this transfer. Earlier this week, the North Carolina sheriff's association as well as the North Carolina Police Chief's association spoke out against this transfer. I've heard from district attorney's in the state who oppose this transfer. There is a significant government accountability issue here. Having the Attorney General over the SBI creates a check and balance system with other law enforcement agencies as they investigate corruption, murder, robberies, and many other heinous crimes in our state. The SBI has a track record of helping District Attorneys prosecute and convict violent criminals and even prosecute elected officials and other public officials who have betrayed public trust. While serving as mayor for 15 years in my hometown, I've seen first hand, the professionalism and independence of the SBI. The key here is this: The public needs to have confidence that there is an independent agency not state police that's under the political control of the executive branch to investigate these criminal cases. For over 75 years, the governors of both parties SBI investigations have been independent of the executive branch. This transfer is not good for NC, it's not good for law enforcement, especially in our rural communities and it's not a good message for us to send folks at home. Even Governor McCoy yesterday said that he does not want the SBI under his supervision saying, and I quote, "I never asked for it and I've got enough on my plate." He also quoted as saying " I haven't seen the argument yet presented to me why that needs to be done." I agree with the governor. This ?? Bill, if it has merit, needs to be studied and reviewed. I urge you to support the amendment which simply says no transfer of the SBI to a department of public safety. Thank you, I urge your support. [speaker changes] Sen Apodaca, for what purpose do you rise? [speaker changes] Mr. President, I want to be careful here and not try to offend anybody. I was reviewing the Bill and I had found a grammatical error. I'd like to send forth a substitute amendment. [speaker changes] Sen Apodaca can send forward your substitute amendment. Clerk will read. [speaker changes] Sen Apodaca moves to amend the bill. [speaker changes] Sen Apodaca is recognized. [speaker changes] You got it up? This amendment merely makes a technical correction to the effective date and the quote marks were left out when it was printed. We need to put those in so it will be grammatically correct. I ask for your support. Mr. President. [speaker changes] Senator Nesbitt, for what purpose do you rise? [speaker changes] To speak on the amendment and to make a motion. [speaker changes] Senator Nesbitt has the floor to speak on the substitute amendment. [speaker changes] Thank you Mr. President. This amendment, as you all know, has the effect of killing the underlying amendment. An amendment which gives you that want to vote for this budget, an opportunity to get this out of it. This is bad government, and you're going against your own governor and everybody that's looked at this, for what reason, I can't understand. Nobody wants you to do this. So, I would suggest that you--we'll give you a chance to vote on it, but you will have had a chance to get this SBI transferred out of this budget, and that will not be excused when you go home. And with that Mr. President, I'd like to move that the amendment do life on the table. [speaker changes] Second.

[0:00:00.0] Senator Nesbitt moves that the amendment 6 lie upon the table seconded by Senator Blue that’s a non debatable motion we will take a vote on it. All in favor of amendment 6 will vote aye, all oppose will vote no, five seconds will be allowed for the voting. [SPEAKER CHANGES] Mr. President… [SPEAKER CHANGES] I’m sorry excuse me we are waiting on the motion to lie upon the table. Excuse me Senator, all in favor of the motion to lie upon the table will vote aye, all oppose will vote no, five seconds will be allowed for the voting, the clerk will record the vote. 17 having voted in the affirmative and 33 in the negative the motion fails and amendment 6 is back before the body. Any further discussion of debate? Hearing none, the question for the Senate is the passage of amendment 6, all in favor will vote aye, all oppose will vote no, five seconds will be allowed for the voting the clerk will record the vote. 31 having voted in the affirmative and 15 in the negative, amendment 6 the bill has amended is back before the body. Senator Robinson… [SPEAKER CHANGES] I need to change my vote to no. [SPEAKER CHANGES] Senator Robinson changes her vote to no. [SPEAKER CHANGES] Mr. President… [SPEAKER CHANGES] The final vote is… [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Walters… [SPEAKER CHANGES] I need to change no as well. [SPEAKER CHANGES] Senator Walters and Senator Robinson changed their vote to no. The final count 33 in the affirmative and 17 in the negative the bill has amended is back before the body. Is there any further discussion or debate? [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Blue for what purpose you ask? [SPEAKER CHANGES] To debate the bill. [SPEAKER CHANGES] Senator Blue has the floor to debate the bill. [SPEAKER CHANGES] Mr. President reminded the story as in different forms but one when I hear some of the justification for this current budget that reminds me of a fellow who burn down his house and then complaint that he was homeless. The justification for getting so much of that of what the state has done about and what is made attractive it holds on water it’s an empty reason by blaming the expenditure of the additional funds available in this cycle, the budget on medicate expenses, creating expenses in our rural hospitals basically assuring the ___[02:50] feel or be observed by bigger hospital networks over the next several years by not participating in meaningful way and medicate expansion but then cleaning that the current medicating is what creates the problem is what I call and I think that in some of the debates that we had earlier and debate is sort of point in pivot that is acknowledge that somebody made a point but then pivot to talk about what you wanna talk about. In this case we are not talking about the real reason for not doing for the people of the state what all be done is exactly that. I have looked and I have found it strange that we create the availability in the budget, we have 750 million dollars, 770 million dollars that’s not appropriated using standard terms of appropriations because it’s not designated anywhere, probably ___[03:54] of the Executive Budget Act and then say that you can’t reallocate that 770 million spend on a meaningful way is pivoting away from the real issue for the educators and there is a choice, there is ___[04:14] whether we like to have those roughly 10,000 teaching assistance and teachers, whether we have to give teaching assistance and teachers and people in education and highway patrol or hardworking state employees paying raises. Now, whether we allowed to enlarge class sizes, whether we allowed to do what more responsible business would do and that is eliminate the program that recharges managers after a while, middle managers especially, equivalent is quick NC ___[04:51] was doing. North Carolina Center for the advancement of teachers instead of give people who had been out in the schools for a while or… [0:04:59.7] [End of file…]

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mturk july 19 NC Senate-1 Is getting greater. The rural center money, the Golden Leaf money, and nobody mentioned I don't think the Clean Water Management trust money, which is another fund I think is extremely important to the rural areas of the smaller counties. Healthcare in smaller counties is getting pushed tighter. Education cuts for smaller counties. Redirecting, for instance, the lottery money, where for 10 years the lottery money that counties have depended on for construction is no longer there. They are having trouble. I had two counties today that I represent come by and speak about this specific issue and the fact that they can't raise taxes in their counties to take care of the school construction that they need. Education cuts, as I said, and thenwithin transportation, we have taken a lot of funds that small counties have relied on in areas for economic development, such as the small ?? fund, access funds, spot safety money, and put it all in a big pool. There was one item in the budget that I saw that had to do with the maintenance report, which has been an annual or biannual report that has gone out for many years, where the different divisions talk about what their needs are. In this one now they have got to add a piece that talks about congestion and traffic counts. This is obviously going to help the larger counties, the urban counties, more so than it will the smaller counties. I think it is shortsighted. Industries that would like to come here are going to have a harder time getting in the larger counties where land is hard to get. The larger counties have already got good jobs. The smaller counties are the ones that need it. And I think it's just another example where this budget does extend and widen the divide between the haves and have-nots. And I join my friend Sen. Blue in asking you to vote against the budget. Thank you. Speaker: Senator Hise, for what purpose do you rise? Hise: To send forward the amendment. Speaker: Senator, you can send forward your amendment. The clerk will read. Clerk: Senator Hise moves to amend the bill. Speaker: Senator Hise is recognized to explain the amendment. Hise: Thank you, Mr. President and members of the Senate. The amendments that you have in front of you are a two-part amendment. I'll explain the first two parts. The first one, as the last two members have addressed some of the issues of rural health care, I think this is another step forward and is something you will appreciate. We have variances in our base rates all across the state, based on the size of the hospital. Our budget currently moves those into four regional rates. This amendment takes that a step further and will set one base rate for all hospitals in the state. Our base rates do not consider that there is an adjustment to that per-patient mix. And then there is the assessments that come on top of that. But this will be a significant shift in making sure that more funds are available in rural areas across the state. The second part of this plan is something where we are dealing with a state plan amendment that was submitted without the consultation or approval of the general assembly nearly 2 years ago. We had sought in the budget to repeal that amendment. We have since heard from UNC hospital about some concerns that they have had with doing that. And this will amend that to allow that state plan amendment to be amended, but it will now only apply to faculty on their main campus, and not allow them to expand additional rates out all over the state in coming forward. So I ask for your support on this amendment. Speaker: Sen. Nesbitt, for what purpose do you rise? Nesbitt: Will the gentleman yield to a question? Speaker: Senator Hise, do you yield? Hise: I will yield. Nesbitt: Thank you, Senator Hise. I think all of the members on the floor have hospitals in their districts. Do you have anything that you can pass out for us or put on the dashboard or whatever to show us the impact that it has on our hospitals? Hise: Mr. President, it can be ?? on the dashboard. Speaker: Senator, we have that information on the dash. It's coming up on your dashboard, Senator. Give it one second to refresh. It should be up now. Senator, does everybody have that information in front of them? Senator Hise, you are recognized. Hise: Thank you, Mr. President. As you explained and I know some, depending on the size of your device, pulling this up, this will show for every hospital. I believe it's coming up that way right now. I'm pulling Region 4 only. For other pages, I don't know if it is reading page by page. I'll have to check. Speaker: One second, Senator.

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… our state ports are going to be a very key in the future economic prosperity of our state. Any property that we have that is in those areas needs to be looked at very closely. The fourth property is a property that is located in Craven County in the city of New Bern. It is a two acre plot that right now stands in the way of a major economic development program for the city of New Bern. We have a developer that has purchased property in both sides of this parcel. He has a desire to come in and to build condominiums and retail shops to create a lot of jobs. I would like to pull this piece of property out and to have it transferred, so that we cannot have to delay on this development and I would ask your support. And Mr. President, at the proper time I have a perfected amendment for this amendment. [SPEAKER CHANGES] Senator, no perfecting amendments in the Senate, just substitute amendments. [SPEAKER CHANGES] OK. This changes just the date on the original amendment [SPEAKER CHANGES] Senator just offer that as a separate amendment. [SPEAKER CHANGES] OK. Thank you sir. [SPEAKER CHANGES] Thank you senator. [SPEAKER CHANGES] Mr. President? [SPEAKER CHANGES] Senator Brunstetter for what purpose do you rise? [SPEAKER CHANGES] To speak to the amendment. [SPEAKER CHANGES] Senator Brunstetter has the floor to speak to the amendment. [SPEAKER CHANGES] Mr. President, Senator Sanderson’s gone over this with the applicable subcommittee chairs. They’re in agreement with it. I think it’s a good amendment, ask you to support it. [SPEAKER CHANGES] [SPEAKER CHANGES] Further discussion, further debate? Hearing none the question for the Senate is the passage of Amendment 8. All in favor vote aye, all opposed vote no. Five seconds will be allowed for the voting. The clerk will record the vote. Meridith, aye. Stein, aye. Packer, uh, Blue, aye. Forty-nine having voted in the affirmative, and zero in the negative, Amendment 8 is adopted. The bill as amended is back before the body. [SPEAKER CHANGES] Senator Robinson for what purpose do you rise? [SPEAKER CHANGES] To send forth an amendment. [SPEAKER CHANGES] Senator Robinson you can send forth your amendment. The clerk will read. [SPEAKER CHANGES] Senator Robinson moves to amend the bill. [SPEAKER CHANGES] Thank you Mr. President. [SPEAKER CHANGES] Senator Robinson you’re recognized. [SPEAKER CHANGES] Thank you. As keepers of the trust of this state, and responsible for delivering a budget to operate the services for the state, I think it’s imperative, and I know you agree, that we operate with transparency and we remain ethical. Years ago, prior to my coming and many of you, the State Ethics Commission was established. And in that Establishment, there is required a statement of economic interest that all of us, including appointees, have to sign. And in light of recent incidents, issues, whatever the public can assume, we have to remain above the foray. And so I commend this amendment to you which would require that failure, and willful failure to follow, that within 30 days after the due date, and some of this is already in the statute, a person currently serving as a covet person who has not completed a statement of economic interest within that 30 days, shall be subject to a fine as provided in this section. And in B that fine is $250. And C, failure by any filing person to file or complete a statement of economic interest within 60 days of the receipt of the notice, required in subsection A of this section, shall be deemed a willful failure to file. And not withstanding GS138A-45, the filing person, 45, the filing person must vacate the person’s office or position immediately. And that is something that all of you put in place, and I commend this to you. [SPEAKER CHANGES] Any discussion or debate? Senator Apodaca, for what purpose do you rise? [SPEAKER CHANGES] Mr. President, I move that we move Amendment 9 to the end of the calendar. [SPEAKER CHANGES] Without objection, so ordered. Senator Sanderson, for what purpose do you rise? [SPEAKER CHANGES] Mr. President, to send forth an amendment. [SPEAKER CHANGES] Senator Sanderson you can send forth…

... your amendment. [?] [SPEAKER CHANGES] This is ALB-69 version 2. Senator Sanderson moves to amend the bill. Senator Sanderson's recognized to explain his amendment. [SPEAKER CHANGES] Thank you Mr. President. This amendment simply corrects a date that was on the last amendment. It changes it from June 30, 2013 to August 1st, 2013-- the purpose of this date change is because the discussion that we had about economic development is very very time sensitive and we need to see if we can move on this and I ask for your support. [SPEAKER CHANGES] Is there discussion and debate. Mr. President. [The purpose of the "aye"]? [SPEAKER CHANGES] To support the amendment. [SPEAKER CHANGES] Any further discussion or debate? [?] The question for the senate is the passage of amendment 10: All in favor vote "Aye," all opposed vote "No." Five seconds will be allowed for the voting; the clerk will record the vote. [SPEAKER CHANGES] Blue: Aye Clark [?]: Aye 49 having voted in the affirmative, and 0 in the negative, Amendment 10 is adopted; the bill as amended is back before the body. Senator Sanderson, for what purpose do you rise? [SPEAKER CHANGES] To send forward [?] an amendment. [SPEAKER CHANGES] Senator Sanderson, you can send forward your amendment. [SPEAKER CHANGES] Thank you, Mr. President. Ladies and gentlemen, this is Amendment ALB-- [SPEAKER CHANGES] Senator, hold on one seconds, we're-- the clerk will read. [SPEAKER CHANGES] Senator Sanderson moves to amend the bill [SPEAKER CHANGES] Senator Sanderson is recognized to explain the amendment. [SPEAKER CHANGES] Thank you, Mr. President. Members: This amendment is an attempt to correct something that we have in our budget that concerns me deeply. This is-- and first of all, let me say that I appreciate the work that Senator Brown and others have done on this bill, this deals with increasing our boat registration fees to pay for dredging our inlets down on the coast; I will be the first to admit that our inlets, in North Carolina, are tremendously important to our economy; they bring in millions and millions of dollars every year in revenue for the state and for our local businesses. I also realize that for many many years, the federal government has helped us with these funds to dredge these inlets-- that money has ended and the state of North Carolina has to take up the-- to do those inlets. This amendment-- Senator Brown, in his budget, has put forth an increase in our boat registration fees to help cover the cost of this dredging, along with some money from other sources-- this is currently in the budget as a two-tiered level for boats under 26 ft; the increase is 10 dollars; and fifteen to twenty-five dollars for boats over 26 feet-- for boats 26 feet and over-- this is an increase from fifteen to fifty dollars. This amendment would [simply?] across the board raise the rates on boats-- or registration of boats-- from, everything would be 10 dollars instead of the fifty dollars. I would just ask for your support. This is-- at this point in time, it's something that I really don't think we need to put this much of a burden on our boat owners, and I would ask for your support in this amendment. [SPEAKER CHANGES] Senator Brown, for what purpose do you rise? [SPEAKER CHANGES] To speak to the amendment. [SPEAKER CHANGES] Senator Brown has the floor to speak to the amendment. [SPEAKER CHANGES] As a bill sponsor on this, I appreciate Senator Sanderson talking about this issue, but I just have to disagree in this case. One of the concerns I think most of you had was that our larger boats, particularly commercial vessels on the coast, needed to pay a little bit more. And, in the bill, a 26-foot boat or more would go from fifteen to fifty dollars on the registration fee. And what this amendment basically does is take that provision out. And I think it's important that we have those dollars to take care of the dredging issues, and I ask you to vote against the amendment. [SPEAKER CHANGES] Any further discussion or debate? Hearing none, the question for the senate is the passage of amendment 11. All in favor vote "Aye," opposed will vote "No," five seconds will be allowed for the voting, clerk will record the vote. Six, having voted in affirmative, and 44, having voted negative, Amendment 11 fails, and the bill, as amended, is back before the body. Senators, at this point in time, we're gonna move back to Amendment number 7, Senator Hise, would you like to be recognized again? [SPEAKER CHANGES] Thank you Mr. President. Members, I do believe that [??]

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?? stuff, as they have for many years. I intend to continue to work to find an alternative source of revenues to reduce this inequitable transportation burden. Thank you. [SPEAKER CHANGES] Is there any further discussion or debate? [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Sanderson, for what purpose do you arise? [SPEAKER CHANGES] To debate the bill. [SPEAKER CHANGES] Senator Sanderson has the floor to speak to the bill. [SPEAKER CHANGES] Ladies and gentlemen of the senate, I want to add my support to my neighbor and friend, Senator Cook, about our coastal ferries. I have ridden the ferries in Eastern North Carolina for over 40 years. One of the reasons I moved from Craven county back to ?? county was because there was a ferry in place to do that. My business is still in Craven county. For me to drive other than taking the ferry it's about an hour and fifteen minutes each way. That means I have to leave home very, very early in the morning to be there by 6:00. These ferries are vital to our constituents in Eastern North Carolina. They serve a great purpose, and no matter what we call these added fees, they are taxes on our people, and this is a time in Eastern North Carolina when we do not need any more taxes. And I, like Senator Cook will continue to work. I will support this budget, but I will continue to work to the end for these tolls, so that our folks can enjoy the same benefits with their highways that every other citizen in the state of North Carolina enjoy. Thank you, Mr. President. [SPEAKER CHANGES] Is there any further discussion or debate? Senator Ford, for what purpose do you arise? [SPEAKER CHANGES] Mr. President, see if senator Cook will yield for a question? [SPEAKER CHANGES] Senator Cook, do you yield? Senator Cook. [SPEAKER CHANGES] I yield. [SPEAKER CHANGES] Senator Cook, can you share with us how much the state subsidizes ferries? [SPEAKER CHANGES] I believe about 46, 47 million dollars a year. [SPEAKER CHANGES] Any further discussion or debate? [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Barefoot, for what purpose do you arise? [SPEAKER CHANGES] To send forth an amendment. [SPEAKER CHANGES] Senator, you can send forward your amendment. The clerk will read. [SPEAKER CHANGES] Senator Barefoot moves to amend the bill. [SPEAKER CHANGES] Senator Barefoot is recognized to explain the amendment. [SPEAKER CHANGES] Thank you, Mr. President. The budget before you contains the removal of a statutory exception in the turnpike authority, which protects the town of Garner and the residents of southern Wake county from having a proposed route of the 540 extension from being built through their community. As many of you know, the orange route is the preferred route and has been for 20 years in southern Wake county, but the Feds are requiring us to study the red route, which will greatly impact the town of Garner, approximately 13 neighborhoods, a church and other community fixtures if it is built. The senate voted in 2011 to adopt the provision that I'm asking you to keep in there, and I was opposed to removing a provision when it came before the senate early this session, and ask that you support the amendment. [SPEAKER CHANGES] Senator Brunstetter, for what purpose do you arise? [SPEAKER CHANGES] To speak to the amendment. [SPEAKER CHANGES] Senator Brunstetter has the floor to speak to the amendment. [SPEAKER CHANGES] Mr. President, I appreciate senator Barefoot bringing this amendment. I have talked to the sub chairs. I know that they are opposed to this amendment. I'd ask members to vote no. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the senate is the passage of amendment 12. All in favor will vote aye, opposed will vote no. Five seconds will be allotted for the voting. Clerk will report the vote. Graham, McLaurin, aye. Woodard, no. Eleven having voted in the [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Mr. President, would you change my vote to yes, please? [SPEAKER CHANGES] Senator Parmon, vote changed to yes. Senator Walters [SPEAKER CHANGES] Change my vote to no, please. [SPEAKER CHANGES] Changed vote to know. Final count. Is that the correct number? Eleven having voted in the affirmative and 39 in the negative, amendment 12 fails. Bill as amended is back before the body. Any further discussion or debate? Senator Apodaca, for what purpose do you arise? [SPEAKER CHANGES] Mr. President, let's bring back senator Robinson's amendment, if we can. [SPEAKER CHANGES] If we can pull back up amendment nine. It's on the dashboard. Is there any discussion or debate? [SPEAKER CHANGES] Has she spoken? [SPEAKER CHANGES] Senator Robinson, anything further? Senator Apodaca, for what purpose do you arise? [SPEAKER CHANGES] To speak to the amendment. [SPEAKER CHANGES] Senator Apodaca has the floor to speak to the amendment. [SPEAKER CHANGES] I think senator Robinson's amendment has a lot of merit. I just don't think the budget's the place to put it, I think it needs to be

Discussed thoroughly and looked at. I think it’s a major policy change that is probably needed, but with that being said, I do move that it lay upon the table. [SPEAKER CHANGES] Mr. President? [SPEAKER CHANGES] Senator Brunstetter, for what purpose do you rise? [SPEAKER CHANGES] To second the motion. [SPEAKER CHANGES] Senator Brunstetter seconds the motion lay upon the table. We’ll be voting on the motion to lay upon the table. It’s not debatable. One electronic vote. All in favor will vote aye. Opposed will vote no. Five seconds will be allowed for the voting. The Clerk will record the vote. Stein, no. 33 having voted in the affirmative and 17 in the negative. The motion to lay upon the table passes. Amendment 9 lays upon the table. The bill as amended is back before the body. Is there any further discussion or debate? Hearing none. I’m sorry. We’re going back to Amendment 7. Senator Hise has amendment. Senator Hise, would you like more time to explain the amendment? [SPEAKER CHANGES] I think I’m okay with explaining it at this point. I think everyone has the information they need so I’m willing to answer any questions. [SPEAKER CHANGES] Senator Nesbitt, for what purpose do you rise? [SPEAKER CHANGES] Thank you, Mr. President. To ask if Senator Hise would yield to a question. [SPEAKER CHANGES] Senator Hise, do you yield? [SPEAKER CHANGES] I yield. [SPEAKER CHANGES] And Senator Hise, these are honest questions. I got members back here trying to figure out what we’re doing. Did your amendment, which column on here represents where we are without your amendment? [SPEAKER CHANGES] Where we are without my amendment would be the first column that is highlighted, and the title of that column, and I’m on page 1, is Regional Net Impact. [SPEAKER CHANGES] And that’s based on what? What would you call? [SPEAKER CHANGES] Based on the current bill moving from the individual hospital rates to regional rates. [SPEAKER CHANGES] And that’s part of this bill? [SPEAKER CHANGES] That’s part of the bill as it currently exists. This amendment would move to a state-wide rate that comes forward so we the take disparity out. There’s some disparity that came up in between the regions in doing that, and instead now we wipe it out across the state and put one based rate in for all hospitals across the state instead of 4 base rates based on their regions. [SPEAKER CHANGES] Would he yield to another question? [SPEAKER CHANGES] Senator Hise, do you yield? [SPEAKER CHANGES] I yield. Yes. [SPEAKER CHANGES] And that new rate would be the state wide net impact? [SPEAKER CHANGES] Yes, that’s correct. [SPEAKER CHANGES] One further question. [SPEAKER CHANGES] Senator Hise, do you yield? [SPEAKER CHANGES] Yes. [SPEAKER CHANGES] And then the last column would be the net change, between those two? [SPEAKER CHANGES] Between those two. That’s correct. [SPEAKER CHANGES] And that, would he yield to another question? [SPEAKER CHANGES] I still yield, yes. [SPEAKER CHANGES] It was my understanding that the hospitals had worked something out about rates. Can you share that with us as to where they are in terms of what they wanted, or have they participated in your knowledge? That may have just been bad information. [SPEAKER CHANGES] I would suggest that the change in the base rate, probably as members would look across the board, would depend on the hospitals. As they move forward, there are movements across, but I think if you will look at this as a whole for that second column: State-Wide Net Impact. I believe that there are four hospitals in the state that are negatively impacted. All other hospitals in the state are positively impacted by a state-wide rate in moving forward. Also, remind members that on top of this for what a hospital is actually paid, every hospital can pay into the assessment, get the federal match on those funds, and get paid up to the Medicare rate for individual services. This is the amount coming out to the hospital when the individual is discharged. [SPEAKER CHANGES] Would he yield to one other question? [SPEAKER CHANGES] I will yield. [SPEAKER CHANGES] When I look at Region 1 Rate Model, I’m looking at the back of the second sheet, all the numbers are positive. [SPEAKER CHANGES] That is correct. Currently under the base rate, the regional rates, there were four regional rates, it was 2,887 dollars and 40 cent for Region 1, 3,356 dollars and 4 cent for Region 2. These are their ?? summaries. 3,324 dollars and 76 cent for Region 3, and 3,195 dollars 31 cent for Region 4.

as high as 7779 cent-29,949 and 19¢ -a 70 visit a site with the U.S., Scalia of the incentive enough that the CIA and the defense medical center and the staffs of in-residence, is when the committee percentile for that the agency said the that has happened in-hospital ?? that's the issue-for-four, 7995 is 2-3149 others and it is time-for-seven is a standard sentencing point races all-race-season has been too much time as percent of the end of the MSN segment has, of getting the impact of the statewide riled up-side impact of the state of mind-Bending after hospital, said Monday times as expensive as part of four when the-wheel of that hire teachers are heavy handed down side of the ?? that age, saying the state was Monday from the house business wire, the DS of three and 9:00 AM to 3 1/2 hour and everybody in the house have ?? to the well-versed on defense, that you have at times-esteem, the that's right for individuals of Indian strategy is the statements as we did $3149 this time for all-White House built inside of the section of the same for all-SEC an aside, many of the-closet number of except for-all sites and won and lost China has-been-study this out, as the best-in-of-the center, of the change and that night, and housing as the ID, as the-cuff and in that you will-spend the system in five events that China-and-fast-of-the-the-to-end system, as major west and east west of the house than we have any sense and-see-is of these firms and the state has shown that were slightly higher than seven-bit system for one 2nd, one JG-off of the seven-night, as higher than estimates is the sense that ?? that is China have updated the December and that unites happens, they sat there and high hands of the times acting saucepans at the expense of our house but I'm offline was the that that confines of the respect for him and that I'm in fact it's party of the air-to- end of the region on the set at 77 has collected time when citizenship classes and they don't have reached the end of the impact of the state, and has always at the civic center almost every hospital staff the sense that that the just-for-sensitive-fastest misuse of the year of ex-wife, Helen Costa of a bite of the region ?? ??.............................

Four at the top of the page. You with me? [SPEAKER CHANGES] Yes Sir. [SPEAKER CHANGES] What will be the net effect to Blayton County hospital if we adopt this? [SPEAKER CHANGES] Blayton Hospital will receive estimated next year $194,877 more dollars. [SPEAKER CHANGES] Correct. I think where everyone is confused Senator Hise is the net impact last column is the difference between. One way of figuring it is the region vs. the state the actual net dollars to the hospital is under the net impact column, the next to the last one. Correct, $194, 877. [SPEAKER CHANGES] That's correct. That's what they'll receive this year vs. what they would have received with the same... [SPEAKER CHANGES] And that would be for every column going down. Right? [SPEAKER CHANGES] Correct. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] Mr. President? [SPEAKER CHANGES] Senator Bryant, for purpose your aye's. [SPEAKER CHANGES] To ask Senator Hise a question. [SPEAKER CHANGES] Senator Hise, do you yield? [SPEAKER CHANGES] I'll yield. [SPEAKER CHANGES] Senator Hise, this is still confusing to me. In the budget bill you have, as it currently exists, we would be using the regional base rates. Would that be correct? [SPEAKER CHANGES] That is correct. [SPEAKER CHANGES] And that would be what would be in the column called regional net impact. [SPEAKER CHANGES] That's correct. [SPEAKER CHANGES] So if we pass this budget, that we currently have, Blayton County Hospital will be receiving $255,000 more than they were receiving from their individual DRG rate. Is that correct? Or am I lost? [SPEAKER CHANGES] That is correct. [SPEAKER CHANGES] Now you want to shift from regional to state. So Blayton Hospital is going to get $194,000, now $60,000 less or close to $61,000 less than they would have gotten under the regional rate, which is in the current budget. So it's no way we can say that we're helping Blayton Hospital because they're going to lose $61,000, if they want money, now I don't know what else they might want. But they will get $61,000 less under this amendment. Correct? Is that correct? [SPEAKER CHANGES] Senator, as I have answered the question before, we are changing the system as we are currently going. Compared to what the currently have under the system, they would receive $194,000 more. Compared to what they have under an interim stop in the system which created inequitable rates across the region, across regions, there's a $60,000 a year change for the entire hospital. [SPEAKER CHANGES] Ok, so it is the case that this shift from regional to state for most of the hospitals on this page will be a loss in money to them. [SPEAKER CHANGES] We have, We have never been on a regional rate, that is a new concept that we have established in this budget, moving forward. But the state of North Carolina had each hospital on their own base rate prior to us developing this process. [SPEAKER CHANGES] Senator Apodaca for purpose your aye's. [SPEAKER CHANGES] Senator Hise, Yield to another question. [SPEAKER CHANGES] Senator Hise, do you yield? [SPEAKER CHANGES] I will yield. [SPEAKER CHANGES] Senator Hise, with the Blayton example, say we don't vote this in, say the budget fails and we keep it exactly as it is when we walked in here today, what would Blayton Hospital get? [SPEAKER CHANGES] They would receive $194,000 less than they currently receive. They would receive $1,192,317. [SPEAKER CHANGES] Follow up? So in reality, if we don't vote this into the budget and pass this, Blayton Hospital is going to lose $194,000. [SPEAKER CHANGES] That's correct. if we don't get the changes to the base rate... [SPEAKER CHANGES] Thank you, so there's more money to them because of the amendment. [SPEAKER CHANGES] Senator Stein, for purpose your aye's. [SPEAKER CHANGES] Debate the amendment. [SPEAKER CHANGES] Senator Stein has the floor to debate the amendment. [SPEAKER CHANGES] Thank you Mr. President. What you all put in the bill, this regional rate. This was, I assume this was somebody's idea, or else it wouldn't be in the bill. But what you are asking us to do right now is to vote on an amendment that is going to cost our hospitals money. I mean look at Wakemed, they are losing 1.2 million dollars. Wakemed Carry is losing $240,000. I'm voting against this amendment, and I encourage you to do the same. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator McKissick, for purpose your ayes. [SPEAKER CHANGES] Ask Senator Hise a question. [SPEAKER CHANGES] Senator Hise do you yield. [SPEAKER CHANGES] He yields. [SPEAKER CHANGES] Senator Hise, I'm reviewing this table and...

you are taking to University Hospital were to write the heart of my district. likewise, a written University, North Carolina Hospital in Chapel Hill which we ought to be concerned about that. that's an institution and we share ownership in now or I want make sure I'm looking at this table correctly so can you specifically identify and tell me how much loss income will be reduced if this amendment is passed by the woman in question of interpretation that has a reason [SPEAKER CHANGES] three preliminary report University Hospital will also impact of four. three million dollars. three million… and a University of North Carolina Hospital, which we all share ownership in doubt. neither losses can be eleven million, or this person of [SPEAKER CHANGES] the amendment only while the loss would be eleven. two, when you say this is legitimate only maybe you can illuminate and clarifies seconded in some of its lost income. the second person of the amendment that would be repealed. [SPEAKER CHANGES] the site plan amendment that allowed UNC hospital for their fundamental state to accept Christ that were actually under Medicaid. Bexar got paid rates over the commercial rights are moving forward and hardware facilities. the bill is currently working on that spot completely out of this amendment instead of appealing that spot changes it so that it they can receive those rights only for faculty on there main campuses. so that is significant offset for UNC in that second apportionment something that asked for Mister President, and as the follow-up to yield downwind that would not apply to do with its four. three million and illusion is this is what this would apply to all human CNEs carillon thank you of what when I look at is one. three million designers because we like to speak to you because it is because no thank you especially I want my latest four. three million dollars in fact, the new combined that with potential additional loss income that they would have. there's do not receive sales-tax refunds as many the other hospitals will not be receiving the proposal as it is constituted a moose for it to have a substantial impact on these hospital 's bottom line in a very found a very significant way to create a time when they are not re mediating their disagreements. this booklet back. Donny, I would have deep concern about this and I think most of the hospitals will as well, particularly if you look at all these ones. it takes a supper loss. I can ask for passwords prefer to see if it also has real to another? Verizon alley of rice fields sunrise. I wanted to help, please serve as relates to count on is medical Centre, can you share with me what will be the maximum net impact to Carolinas medical Centre original landmark for Carolyn Michelson errands would be a wall under the record original rights of two million hundred ninety four thousand state wide. right it would be a loss of six hundred and forty three thousand dollars. I will know you will so I'm going to D8 negative six hundred and forty three thousand dollars escrow to the centre for six zero forest floors below. I really struggle with doing this easy piece on the straw hospitals. I think that we are piling on Africa time in our economy where we need to be happy him, as I have some serious challenges this in my opinion is not the way to go. I will be running against Senator, how to dress out to ask Passover has a question that he would yield their Isaiah fields, so perhaps I feel like you have to know and there is a major hospital located in my district, North east medical Centre. I found it listed anywhere on here and I will have no impact on his correspondence with the sometimes affiliated entities( I just don't know what's the impact is on North east has four hundred with doors. I'll have an answer to that. specifically, this will

of this has said is the system has not been some question: is there a CIA that when you pass a budget compromise to finance and I have a son that's the city hospital of the shoot me what it is a S weary his ??, and that is a city have not have the chance of its ActiveX of the summit is not optimistic that ?? at the end of the house bill's assist in the same as hospitals of central site and time-and-off in the rest of the Soviet films that specify that is obviously in china's about this hospital a son, where the artist and tests, and the activity, then, Thailand has been estimated that says they can send the message that states will send some form ?? at ?? if sat, that's as head of the ?? is fast the rest of us and the Reseda Center, events and has thrown time to that of the center has recognized as the as-as end of this end of the women's eight-cents-a-stymied for this defendant of high this fall if Liza to the academic centers for the USA in the East Carolina? That's one of them had a lot of the timing of endorsing commercial rights of more of 1,000,000,788 and seven, as one of the embodiment of the time I get this-continue to receive the highest times it wasn't just 16 and 7¢ posted the highest-percent-convention center, this news that the use of commerce and riled some more in the state of mind share of the hardware, students should have this session that it had rise, said his passenger, 30 of them by -day I'll a 6-100 and that the ?? that the ?? has scars of investments Chinese accent, zero and then entered his adopted the lesson that is backed by Israeli further discussion about sun has forced us-this-and a style with the active as to the state of the nation's first-year, when of Latino of Saddam Hussein want it to eight, of all time of them before and 7¢, remain an IP, that the affect the seventh avenue, Anaheim, Anaheim, and then the status of ?? acts that the message , saying as the man MSI and even-handedness web site and the hop into the night, the mandate that you do that than ms society, and that the status of this nighttime and the Latta, an admission of avenues as an up-and they were designed to China by snow ?? ??...............

that as Tyler says that this is not harmed in seminars and 1/2-off that child, said that that is not, buyers out and buying time designed as a comment, Mackay is not that it's all its code 717- hired a team was that the Federal-state &, putting these common set of tests would be a second time spent the half-day dollars, and some messages about how I'll end of the ATM, and the only one who has that as many of the state is the children of animal ??to end of the owners didn't happen is that the tile ad age of 18¢ in fact that I am not able to drive the data at his victims of 4% and-on the economy time-the-somebody's on a given to happen at the end of the modifier time 14 , and then Onassis ¬as the dining area that you have the respect and, as it is the data back some of his mouth of a once-time error of enough and that the demand of investments adding that the prohibition of SP and that ??that the fires of life for me in the designation the about-to-eye flight, 40% one that might not have it when I use the fourth time and the Honda of the event in the 1970s and I'm happy ending, 1/2-white you, have individual-China making seven as the party has in mind that the top of that made him one of the fusion from medicine to that of the China-and ½ and 1/2-hearted and mental health and the danger fight for the best deal we have this, why not more than- thou do not have made it tougher for 10 and the inside out China is a desirable as we did a lot about in the cavernous life with a two- and not in the week of a recession it was a two-and this country and, I'm so, the one that is not one of the day of the toreros might want to say that we've added a two- day at 7:00 PM that owns the time that the— that the other side that event,-, that's a bad hop-animal veterinarian system of our teeth that if they do that-order a time of the slayings have several leaders of the data is that an often take care of the institutions of people and the action items will often as he remains in it if a sender in this area and Sonora of the lack of snow at the whole idea of how does the ??DS-of addresses of his refusal to the Mac child, hospitals and rent a car ????????????????

The Federal Association has finally written a letter saying all of that. They cannot take care of this half million people that will not have insurance and will not be able to pay. And the safety nets are going away. I know Senator Apodaca spoke about a program he has in Henderson County. It’s one of the federally approved centers. I got one. A lot of us have them around. That money’s going way. They aren’t going to be there. The dish money that rural hospitals get now to help offset this, it’s going away, all under the Affordable Care Act. And we’re going to be left here with all of these uninsured people with no place to get any money to take care of them. And what we were trying to present to you, was the ease with which we could take care of these things that we consider necessities. I don’t consider over 4,000 teachers in the school fluff and fancy stuff. It’s teachers and that’s what gets our kids educated. Healthcare for people is not fluff and fancy stuff. It is an absolute necessity. And it’s something that this country is moving on in a direction to try to make sure that everyone has access to healthcare. And it’s not the time for North Carolina to throw an anchor out and say, except us. It won’t work. We can’t sit here in a vacuum and all the programs go away that are taking care of people now and survive. So it is about choices. You all have made the choice to take that 770 million dollars to do something else with and leave what we consider the needs of this state pushed to the side and I guess abandoned. I guess we’re not going to do any of those things in the future. Because we have a chance and we aren’t doing it. So we will, I will be voting against the budget and I urge you too, also. [SPEAKER CHANGES] Senator Berger, for purpose what do you rise? [SPEAKER CHANGES] Mr. President, to speak on the bill. [SPEAKER CHANGES] Senator Berger will speak on the bill. [SPEAKER CHANGES] Thank you, Mr President, and members of the Senate. I want to start out with just expressing my appreciation. And I think everyone in the Chambers will acknowledge that the members of the Budget Committee, particularly the Chairs of the Appropriations Committee, have spent a lot time and put in a great deal of work on what you have before you. And I appreciate what they’ve done and what the staff have done to get us to this point. As we all know, this is step two of what is in essence is a four step process. The governor makes his proposal, one house adopts a budget and the other house adopts a budget and then we get together and adopt a Conference Report. And so what we see in this budget, we hope will be much of what we'll see in that final product. Because it does a lot of good things. And it does many things that we need to do. And it does it in a way that we can say that we’re living within our means. That we are funding those priorities of state government that we have. That we are trying to take care of those people in our society that the state government has an obligation to help take care of. Now does it do it in a way that every member in this body agrees is at the appropriate level? Well, obviously not. We’ll see that reflected in the vote in just a few minutes. But I would say that predictions of dire consequences are not actually something that we should be all that concerned about in terms of their accuracy. I remember two years ago when we were faced with an even worst situation than we have now. That we were being told that we were engaged in an assault on public schools. That what we were doing by adopting a budget was going to decimate state government. That what we were doing was going to create all kinds of chaos and terrible situations around the state. Well, the last I looked, the schools were still open, we were still educating children

I was him with fraud number finds that that we need to do with you in a way that stacks the taxpayers of the state and makes it clear to MacCallum that we're not going to spend money that we don't have that we are not going to further Burton VL are because we think we like to spend the money of particular way are we going to stand prudently those dollars that they send us now we have a choice. are we can go back to where we were befuddled about it a few years ago, we can go back to the site. if we got it working the standard even if we haven't got it were to understand because quite frankly, that's what we were doing before the two thousand eleven budget and the interesting thing is that God will receive a number of amendments offered to die and a couple of those amendments have spent the money that was set aside to get back to the people the money to set aside for the finance package notes an interesting concept that really what we do not link back to them. it's its values to begin with all which is saying that when you take so much of buttons are low, but some folks have amendments to spend that money, as opposed to letting people keep it. and if you look at the Minnesota and often infectious if it has not spent that money twice, so, so that I will looking at is going back on this would be if she suggested that we go back the way we do things before limited things before I gave us budgets that really will boom or bust budgets of we would go over a few years, we have surpasses those successes with its data. we didn't have an economic man him reason. so now all then we would not really curtail spending. when we do is we see taxes rise emphasizes the raise even a form of permanent tax increases. interesting concept of temporary tax increases that have no options on and so well when we made a commitment to the voters that we were to get out of that cycle. in this budget gets us out of that cycle is on the path of adopting budgets that are predictable adopting budgets that showed equipment to live within our means and adopting budgets that for the first time in a long time. it was the prospect of giving the people of this state some relief from that as well as accounts, the highest taxes in the south east, and that's what we've got to do urge you to vote for the budget they froze after rebate and non-Christian) [SPEAKER CHANGES] the vascular results of number two seven oh four oh two on a second reading on paper about our buzz about no five seconds ago out of the voting record about Opera Doc and I ever I thirty three hundred voting affirmative and seventeen in the negative may substitute number two two seven two seven oh four two, as amended, passed a second reading and will remain on the calendar barely notices, announcements soon as the front of your eyes [SPEAKER CHANGES] thank you much Mr. president like a different analysis famous as the Democrat caucus immediately after session briefly as a round for merchandise at a NASA centre manager for Vanessa 's focus at nine o'clock tomorrow morning. I thought tomorrow morning this is a survivor. but Johnson him who knows what is evident to members. I just wanted to note that literature play a Senatorial statement from Doctor Senator Bob. Bob and I knowledge in honouring the hundred year possible activities adaptive Sigma Territoriality, and also just to recognize, even though they are now going back. we hope you met today. women leaders across the state, not only because the right to buy from our women's groups across the state advocating for issues of women and families and would join incrementing our organization as well as the other women's organizations for their commitment to women and families,community service scholarship and on and leadership Summit presenters any further business him of his 's announcements and then the governor

[0:00:00.0] The members on behalf of Senator Soucek, Senator Brock, Senator Stein and myself we would invite you all to come to Ronald Collins and watch us play the South Carolina General Assembly at approximately 6 o’clock, it might be 06:15 by the time the lobbyist get done. So, I will be glad to be on the same team with Senator Stein for about an hour tonight and then we resume… [SPEAKER CHANGES] Senator Brown for what purpose you ask? [SPEAKER CHANGES] An announcement. [SPEAKER CHANGES] Senator Brown has the floor for an announcement. [SPEAKER CHANGES] I need to correct the time tomorrow morning its 8 o’clock tomorrow morning republicans will come at 8 o’clock tomorrow morning. [SPEAKER CHANGES] Is there any further business come for the Senate? If not the Chair recognizes Senator Burger for motion. [SPEAKER CHANGES] Thank you Mr. President I know that the Senate do now adjourn subject to the referral and re-referral of bills and receive messages from the house and the Governor to reconvene on Thursday May 23rd, 2013 at 10:00 AM. And Mr. President could I amend that to also for the recite of conference reports to reconvene Thursday May 23rd at 10:00 AM? [SPEAKER CHANGES] The motion to the Senator now adjourns subject to the stipulations stated by Senator Burger to reconvene Thursday May 23rd at 10:00 AM seconded by Senator Brunstetter, all in favor will say aye. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] All oppose no, the ayes have it the Senate Stand adjourns. [0:01:29.9] [End of file…]