Light some firecrackers on revenues

Urgent need to talk to your legislators

Prospects for new revenue sources for infrastructure needs looked extremely bright last week, with legislators seemingly on the verge of authorizing a local option real estate transfer tax or sales tax as part of the budget’s Medicaid relief package. The real estate transfer tax was on the table and getting serious discussion as a viable option. A proposed agreement fell apart on Thursday, and the House and Senate are reportedly back to the drawing board.

The prospects for local option revenue sources are getting dimmer, and your help is needed to revive them. Although budget negotiations will continue among the leadership, the House and Senate will not be in session for the remainder of this week. Most legislators will be home for the July 4 holiday and a long weekend. This is a prime opportunity for them to hear from you.

Please urge legislators to adopt a balanced budget package that provides for financial relief for counties from Medicaid expenses, keeps municipal revenues in place with growth, and provides much needed new revenue sources to address the significant investments that must be made in roads, school construction, water and sewer facilities, stormwater control, land and water conservation and affordable housing. Authority for a long-term revenue source for infrastructure should be part of an overall plan to address the state’s infrastructure needs in both the long-term (revenue sources) and the short-term (bond issues).

The costs of city and county infrastructure must come from somewhere. Without a new revenue source such as a real estate transfer tax, property taxes must rise. Most citizens would rather pay a small percentage upon the sale of property instead of increased property taxes on an annual basis. The General Assembly has previously authorized the transfer tax for seven counties, and it has worked well in the six that have implemented it.

We believe that a revenue source based on growth is reasonable. Our state’s population is exploding and our citizens deserve clean water, adequate school facilities, less traffic congestion, open spaces and affordable housing. We can’t achieve these things if we wait. Failing to act means falling further behind. What is wrong with letting the citizens vote on reasonable alternatives to higher property taxes?

By Thursday we will have a spreadsheet posted on the League’s website, www.nclm.org, with information on the amount of revenue that a transfer tax would raise for your city or town.

Please contact your Representatives and Senators and ask them to allow residents the authority to vote on either a small increase in the local sales tax or a modest local land transfer tax to fund crucial and growing infrastructure needs. Tell them there is nothing wrong with letting the citizens decide whether such a tax should be imposed to help with their community’s needs.

Come to Raleigh
You are also invited to attend a press conference to be held by our coalition, the Partnership for North Carolina’s Future, next Tuesday, July 10 at 10:00 a.m. in front of the Legislative Building. The Partnership will be urging action in this session on our public facility and infrastructure needs. It would be very helpful to have a large number of municipal officials present and lobbying the members of the General Assembly.

Union bill pops up
In a surprise move today, HB 1583 – Restore Contract Rights To State/Local was voted out of the House Judiciary II Committee. This bill would eliminate the current prohibition on collective bargaining by public employee organizations. Money was added to the provisions to keep it eligible, and the bill will now be sent to Appropriations. Our members support equitable treatment of municipal employees but we oppose bills that would, in effect, force collective bargaining on municipal governments.

Gang bill advances
In a positive development, a committee substitute for SB 1358 – Street Gang Prevention Act cleared the Senate Judiciary I Committee today and now must go to Finance and Appropriations. Legislators are beginning to hear more from local officials about the importance of combating the growing gang problem, not just in big cities but also in small towns and rural areas. Yesterday, local officials gathered for press events in Salisbury and Greensboro to draw attention to the need to pass gang legislation this year. This is a priority issue on the League’s advocacy agenda and that of the Metropolitan Coalition. Our thanks to Sen. Malcolm Graham, sponsor of the bill, Sen. Dan Clodfelter, who carried the bill today in committee, and the members of the committee.