The House will hold budget-focused meetings this afternoon and throughout the week. Speaker Tillis stated during a press conference today that the analysis process is almost complete and next week, the House should vote on key spending reduction provisions. The reduction in spending is likely to hold around $2 billion with cuts anywhere from 12-16 percent. While they’re roughly a week behind in the budget schedule, Speaker Tillis affirmed that they want to get the budget to the Governor by June 1 as originally planned.
Both Speaker Tillis and President Pro Tem Berger agreed there should not be any major policy surprises in the budget bill, though policy issues that have been debated extensively and passed in either the House or Senate may show up in the final version. A reduction in the corporate income tax rate is likely to be incorporated; however, the reduction will probably include a phase in period. In addition, Tillis and Berger want to build a solid rainy day fund and comply with the current rainy day statutory requirements (percentage of over-collections allotted to rainy day fund). They’d also like to set aside funds for maintenance and repair costs as well as pension plans, something Governor Perdue had previously ignored in her budget analysis.