In response to Gov Perdue’s “borrowing” from various state funds to provide money for tax refunds, Republican leadership in the House and Senate announced they are planning to attempt to override Perdue’s veto of SB 13.
According to a press release issued by both the offices of Thom Tillis (House Speaker) and Phil Berger (President Pro Tem of the Senate):
Senate President Pro Tempore Phil Berger (R-Rockingham) and Speaker of the House Thom Tillis (R-Mecklenburg) today announced the Senate and House will attempt to override the governor’s veto of SB 13, the Balanced Budget Act of 2011, which would give her the authority she requested to cut $400 million in the current fiscal year and target another $400 million in immediate savings. The Senate plans to vote on an override later this afternoon.
Included in their statements is the assertion that Perdue’s temporary grab of about $100 million from the state’s Employment Security Commission reserve fund is unconstitutional. Backing up their claim is a letter from Gerry Cohen, the director of the non-partisan Legislative Drafting agency of the General Assembly. According to Cohen
It is clear to me that Article V, Section 5 of the North Carolina Constitution clearly forbids applying those funds to any other purpose, including supporting General Fund appropriations. Whether the account for the Employment Security Commission Reserve Fund has had its funds replaced by the promise to repay is in my opinion irrelevant, the monies may not be expended for any purpose other than that provided by law.
Berger and Tillis claim that if SB 13 becomes law, the current cash flow problem of trying to find sufficient money for state tax refunds will be solved.
No specific news yet on a timetable or other plans for an attempted override of HB 2.
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