Budget Talk

Legislative leaders, hoping to accelerate budget negotiations, prepared Thursday to remain in Raleigh while rank-and-file members returned home for the weekend. House Democrats planned to keep working with Senate counterparts later Thursday and Friday, and could remain this weekend if enough differences are narrowed, Speaker Joe Hackney said. "It's a sign that we're going to continue to urgently seek solutions to this," Hackney, D-Orange, told reporters. While lawmakers have been making competing offers for taxes and spending this week, they're still enough apart that they probably won't reach a deal before a stopgap spending measure for state government expires the middle of next week. Sen. Linda Garrou, D-Forsyth, a chief negotiator, said she's hopeful a quick settlement still can be reached. "I'm here to work this weekend," Garrou said. "I made plans to be here and will be here as long as we need to be here and make substantial progress."

Gov. Beverly Perdue, also a Democrat, has been trying to get the negotiations moving, contending that the state loses $5 million in new revenues and cost savings with each passing day after the new fiscal year began July 1 without a permanent two-year spending plan in place. She laid out this week a $1.6 billion menu of tax options she'd be willing to accept for the coming year, including a temporary one-cent sales tax increase for about a year and a two-year surcharge on individual income taxpayers making at least $500,000. Senate and House Democrats say they're still committed to raising about $1 billion this year to narrow a budget gap because they're worried they don't have the votes to generate more. Hackney said House Democrats would be interested in reaching an agreement using temporary taxes: "I think we've pretty much always been open to that sort of solution." If lawmakers can't reach a deal by next week, they'll have to extend the current so-called "continuing resolution" that directs Perdue and state agencies how to spend while the final budget is delayed. (Gary D. Robertson, THE ASSOCIATED PRESS, 7/09/09).