Bill Refutes Governor's Decision to Deny Funds

Legislators approved the bill Monday with a vote of 73-5. It must now be signed by Gov. Mike Easley.

Reps. Joe Hackney and Verla Insko, both D-Orange, voted for the bill.

The bill is in response to Easley's Feb. 5 announcement that he will withhold $200 million from municipal governments to help alleviate a $1 billion state budget deficit for the 2001-02 fiscal year.

The bill directs the governor to use all other means necessary to fill budget holes before dipping into local money.

Several counties, including Cabarrus and Alamance, filed suit against the state as a result of the governor's action.

Cabarrus County Commissioner Coy Privette, who initiated the municipalities' lawsuit, said the bill is a step forward for local governments. Privette said that if Easley signs it, there will be no reason to continue the lawsuit.

"I'm interested to see if the governor signs the legislation," he said. "If he does, he's admitting that he's wrong."

Charlotte Mayor Pat McCrory, chairman of the N.C. Metropolitan Coalition, a nonprofit group created to represent the state's largest cities and towns, said the bill will aid local governments in a lawsuit. "The bill is a strong signal to the governor not to take funds the state collects for local governments. The precedent was set for this six or seven months ago by the taking of this money, and the bill will help when -- not if -- this issue goes to court."

But Rep. Cary Allred, R-Alamance, said he does not think the legislation will ultimately be effective. "I don't think this version has any teeth," he said.

Allred said the only way to halt the governor's ability to withhold local taxes is an amendment to the state constitution.

Insko said that as a former Orange County commissioner, she understands the difficulty the board has had with major cuts from the state. She added that while the compromise is acceptable, she would prefer it contain stronger language similar to that in the original House bill.

But many local officials say they see the bill as an encouraging sign for regaining withheld funds. Chapel Hill Town Council member Jim Ward said he thinks the bill's passage is a positive step. "It's designed to better protect local funds. It does not completely protect them from what the governor chose to do recently."

The State & National Editor can be reached at stntdesk@unc.edu.