House officials say that they have reached agreement with Senate leaders on a $21 billion state budget proposal.
It's possible the spending plan could be available later tonight, though votes won't take place until Monday at the earliest. The House and Senate have both adjourned for the day, Dan Kane reports.
One key agreement that helped settle the negotiations came on tax breaks.
A House finance committee co-chairman said budget negotiators have agreed to postpone two tax breaks to free up $30 million in revenues for the state budget. Gov. Mike Easley has called for holding off on the tax breaks after new revenue projections showed a possible $70 million budget hole.
Rep. Paul Luebke, a Durham Democrat, said House leaders have agreed to hold off on increasing the Earned Income Tax Credit for lower income working families, saving $14 million, and Senate leaders have agreed to push back a repeal of the state gift tax, saving $16 million. Both items would take effect a year later.
House Speaker Joe Hackney and Senate leader Marc Basnight have announced a joint news conference at 4:15 p.m. today.
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Re: House says budget agreement in hand
So the senate only agreed to help fill the budget hole if the house agreed to screw the poor. Forgive me, but with gas at $4 a gallon, wouldn't an EIC raise be much more important right now than the repeal of a gift tax that only affects gifts over $12,000? How about we reinstate that 8.25% upper income tax bracket? Is the extra $200 a year for someone making $500,000 a year really going to hurt them as much as the reduction of the EIC credit would hurt someone making $10,000 a year?
I guess we see who the legislature is REALLY working for.