Goss Discusses Budget Crisis in Wilkesboro

By Joel Frady

With budget negotiations in Raleigh in full-swing, N.C. Senator Steve Goss (D - 45) took some time on the

morning of Saturday, June 20, to talk to constituents about the current crisis that North Carolina is facing and listen to questions and concerns. Approximately 20 people attended the meeting at the Wilkes County Office Building in Wilkesboro, voicing concerns about health care, education and tax collection.

Before taking questions, Goss addressed the situation at hand.

"To know that we are not nearly in as bad of shape as many other states is good news, but it's still a bad situation any way we look at it," said Goss. He noted that the crisis is "unprecedented."

"I'm an optimist by nature and sometimes it's difficult to think about these things," he said. He later noted "this is not a recession of the type we've known in our lifetime. It's the most severe economic downturn in our lifetime, no holds barred. That said, nothing can protect us from these downturns, but we can be better insulated if we have the right structure in place."

The situation developed incredibly fast, according to Goss, He said that the state had a "budget surplus of $125 million" in the fall of 2008, but when "the national economic collapse basically began with the stock market and the unemployment situation, the economy dropped dramatically. In three weeks, we went to a $1.5 billion deficit. It was amazing, it was just something no one had a clue could even possibly happen."

Since that time, the state's revenue has fallen between $4.6 and $4.9 billion. Goss said that it "got to the point that we were calling the Department of Revenue two to three times a week" to discuss the week's revenue.
"We're basically running a negative balance in the state right now," warned Goss. Continued revenue losses have made the budgeting process for the 2009-10 fiscal year difficult, as well: Goss said that the budget dropped $1 billion between the time Governor Beverly Perdue created her proposed budget and when the House of Representatives worked on their budget, and another $2 billion by the time the Senate worked on their budget. He noted that the state is set to receive $1.75 billion in funds from the federal government due to the American Recovery and Reinvestment Act of 2009.
In regards to "plugging the deficit" with the AARA funds, Goss said that it was something he doesn't like and "no one else I know likes." He later described it as "a temporary solution," or "a band-aid."
He added that "the problem is not just this year," and that it will probably take "three to five years before we get back to the revenue levels of 2008."

For the next year, Goss said that the budget proposed by the House contains "some unprecedented deep cuts" that might be "unavoidable." As negotiations continue, he said that he is focusing on avoiding unintentional consequences caused by the cuts and that his two biggest concerns are education and the Department of Health and Human Services.

"Believe me, I understand the impact of [the proposed cuts] because it's people's lives we're talking about," said Goss. He noted that "every job and every penny that we deal with in our budget is someone's life, someone's family."

Due to budget cuts, many capital projects have been put on hold. Goss said a new prison in Wilkes County that was scheduled to begin construction this year and create approximately 500 jobs has been delayed to as late as 2013, and the governor has already closed seven prisons in the state and consolidated prisoners.

"That was one suggestion some of us made early on," Goss said. "By golly, if we're going to have to face a difficulty like we're facing, let's double these prisoners up. We need to squeeze the cells a little more, and I have no apologies for that."

Goss also said that it's important for everyone in Raleigh to "think outside the box," mentioning a pilot program he is supporting in the Wilkes County School System. He said that they plan to "change the school year to 162 days" and "add 45 minutes to each day," which will theoretically save $976,000 and save a handful of jobs.

Goss added that they want to make sure that the program enhances the learning process instead of harming it, and that he would like to open the program across the 45th district. Still, he understands that "the needs are different from county to county and the saving would vary" and knows that the bottom line is to "do all we can for the children and save the jobs."

One of the primary concerns voiced at Saturday's meeting was the possibility of tax increases.

"Everything is on the table," Goss said, later adding that "nobody wants higher taxes, but nobody wants to lose any services either."

Goss also said that they hope to increase accountability of non-profit organizations that receive state funds and are working to prevent any pay cuts or furloughs to state employees. He noted that such actions damage moral and would put the employees in threatening situations.

"How would they pay their bills or buy their food?" he said.

Finally, Goss told the crowd that we "will need a tremendous amount of wisdom at the national level over the next three to five years" because "we have to see progress at the national, federal level before we start bouncing back."

The senator promised those in attendance that their "concerns will be heard in Raleigh" and that he held the meeting to "give people one more shot, before the budget is completed, to be heard.

"The only way I can deal with it is if I know about it," he continued.

Goss urged anyone with further questions or concerns to contact him by calling his office at (919) 733-5742 or e-mailing steveg@ncleg.net.