SENATOR JERRY TILLMAN

SENATE MAJORITY WHIP

SENATE UPDATE
June , 2011

Democrats Mad

Stop and think about it. Wouldn’t you be mad? They lost their majority in both the House and
the Senate. They can no longer call the shots. Their power evaporated in just one election…
They are not adjusting to the back row well at all, yet they are employing the only tactic they
know, blame Republicans for everything. I believe at the end of the day the public will see our
schools (public, community colleges, and universities) all open their doors this fall and serve
their students as well as ever, maybe better. You will see the reforms we are instituting in K-
12; the addition of 1,100 teachers in the primary grades, reduction of regulation, increased
flexibility and accountability, and I could list many more. It is past time we do things another
way and stop throwing money at a broken system, and at the same time return $1.3 billion to
the taxpayers. This I can promise you, the same old same old would continue without a
change of the guard in Raleigh… Ask yourself one question. Who put us where we are
today? Only the uninformed will buy the rhetoric they are selling, you will see… Yes, the
Democrats are mad, wouldn’t you be… and the world will not end July 1st.

Givers and Takers

If you are a giver (producer, taxpayer, job creator, etc.) you will be pleased with our 2011-
2012 budget. There will be others, takers (who pay little or no tax and expect government to
be big brother and do it all), who may be disappointed. With the limited resources we had to
work with, tough decisions had to be made. I hope you will agree we made the right ones.

It is always easy to spend someone else’s money. Families, businesses, and individuals do not
have this luxury. If they try it (borrowing their way out of debt) the consequences will be
grave. If government does it the consequences will also be grave. You will see…

Note: The Federal Government has already gone down this path, North Carolina will not… If
I can help it…

Sales Tax

On Wednesday June 1st Republicans offered an amendment to continue a 0.75 cent sales tax.
After telling everyone on the planet how we could not live without it (sales tax) only three
Democrats voted for it; Nesbitt, Kinnaird, and Dannelly. I guess only 3 Democrats really
believe their own propaganda. You tell me…

Governor, Make up Your Mind

It seems like each time we send the Governor a significant piece of legislation she can’t hold
to agreed upon principles. The latest two being the health care reform bill and the budget bill.
Each time we try to accommodate the Governor with changes she requested she later reverses
and wants something different. It was the same thing with the budget. This wishy washy
attitude on the part of the Governor is frustrating to Republicans, and several Democrats who
won’t say it publicly…

Governor, all we ask is that you stick to your word and stop changing the rules every time the
wind blows… We will see…

Note: The Governor was quoted recently as saying she was trying to be a “team player” in the
legislative process. Governor, your definition of “team player” and mine ain’t exactly the
same…

Worker’s Compensation Laws to Change

I told Representative Dale Folwell of Winston Salem earlier this session; “I don’t know if
anyone can get a worker’s comp bill through the legislature, but if anyone can, it’s you.” Last
Wednesday the House voted 110-4 to pass his worker’s comp bill. Dale Folwell is a bulldog
who, once he tackles a bill, will not let it go. This legislation began on a rocky path with
plenty of opposition and many a hurdle to cross. I believe the Senate will vote to pass it and
send it to the Governor…

My hat’s off to a tough minded legislator who does his homework and does it well on both
sides of the aisle. Good work Dale…

Long Session to End Soon

We are looking to conclude this long session on June 17th, thus making it one of the shortest
long sessions in modern history. Also worthy of note:

• The budget was passed the first week in June. Another record?
• There was no budget conference committee needed. Another record? (This alone
saved 2 to 3 weeks, maybe more)

The legislature will need to convene for a week or so on July 11th to complete the redistricting
process and another week in late August or September to complete a constitutional amendment
calendar.
Budget Highlights

Below are some budgetary highlights for the community college and university system:

Community Colleges

• Fully funds enrollment growth ($34.1 million FY 2011-12 and $47.7 million in FY
2012-13). The Governor only partially funded enrollment growth. The Senate budget
fully funds regular enrollment growth, and also begins funding enrollment growth for
equipment funding.

• Provides flexibility to the Community College System by taking management

flexibility reduction in FY 2011-12 of $50.7 million and in FY 2012-13 of $58.5
million. (Previous Senate Committee Substitute included a management flexibility
reduction of $53.2 million in FY 2011-12 and $61.0 million in FY 2012-13.)

• Increases curriculum tuition by $10 per credit hour in FY 2011-12 and an additional
$2.50 per credit hour in FY 2012-13, taking corresponding General Fund reductions of
$47.4 million and $60.4 million, respectively.

• Eliminates categorical funding for allied health, technical education, and heavy
equipment program (a reduction of $22.7 million). A related special provision revises
current curriculm and continuing education funding formulas; weighing higher cost
programs more heavily than less expensive programs. Additionally, funding for basic
skills education is reduced by $10 million (12.4%).

• Reduces institutional and academic support by $8.5 million, eliminating funding for
one of 5.5 general institutional positions in the funding formula.

• Reverts $7.6 million of accumulated customized training program fund balance to the
General Fund, leaving sufficient fund balance for the projected budget of %15.9
million in each year of the biennium.

Special Provisions:

• Eliminates various tuition waivers, including for prison inmates. Directs that funds be
transferred from NCCCS to the Department of Correction to pay for tuition and fees
for prisoners.

• Provides additional flexibility to the CC System, including excepting NCCCS from the
APA, increasing their cap on capital projects, and granting local boards of trustees
more investment flexibility.

UNC System:
 • Fully funds enrollment growth in FY 2011-12 ($46.8 million). The Governor only
partially funded enrollment growth.

• Allows UNC to decide where to cut by taking most reductions via management
flexibility reductions:

o FY 2011-12 management flex: $414.0 million

o FY 2012-13 management flex: $423.2 million
o A special provision limits how the reduction may be implemented. (Previous
Senate Committee substitute included a reduction of $434.6 in FY 2011-12 and
$436.4 in FY 2012-13).

• Reduces the UNC Hospital subsidy by $26.0 million nonrecurring in both years,
leaving $18 million. (Previous Senate CS included a nonrecurring reduction of $19.0
million in both years).

• Makes the Center for Public Television (UNC-TV) subject to a continuation review.
Funding is reduced by 12% for FY 2011-12 and $29.2 million in FY 2012-13. These
funds provide for maintenance, housekeeping and similar cost associated with the
increase square footage.

• Replaces existing aid to private college students with a new program for needy private
college students. Additionally, funds the Education Lottery Scholarship for UNC and
Cc students. Finally, begins the process of funding UNC need-based financial aid
program scholarships with current appropriations, increasing the program’s stability.
(Previous Senate CS provided $20 million less for the new private school program.)

Special Provisions:

• Multiple special provisions give UNC additional operating flexibility and authority to:

o Spend up to $1 million of operating funds per project for capital needs;

o Invest institutional trust fund money outside of the State Treasurer’s purview;
o Sell timber from unimproved timberlands owned/managed by NCSU;
o Purchase campus safety motor vehicles outside of the Motor Fleet
Management’s purview;
o Self-perform energy savings projects at NCSU rather than contracting with an
outside vendor.

Quote

“Be more concerned with your character than your reputation, because your character is what
you really are, while your reputation is merely what other think you are.”
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SENATOR JERRY TILLMAN

SENATE MAJORITY WHIP
628 Legislative Office Building
Raleigh, NC 27601-2808
Phone: 919.733.5870
Fax: 919.754.3339
jerryt@ncleg.net

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