Senate Republican Leader
Senator Phil Berger
26th Senatorial District
Phone Number: (919) 733-5708
North Carolina Senate
Room 1026, Legislative Building
Raleigh, NC 27601 

FOR IMMEDIATE RELEASE 
July 24, 2007

Senate Republican Leader Phil Berger (R-Rockingham) and House Republican Leader Paul Stam (R-Wake) today held their weekly press conference.  They discussed the length of the 2007-2008 legislative session now at 103 legislative days (182 calendar days since the start on January 24) and counting.  Republican leaders again expressed concern about the continuing failure of legislative Democrats to pass the state’s budget. 

The state’s fiscal year began on July 1; local governments and boards across North Carolina have had their fiscal year budgets in place for more than three weeks.  Yet the State of North Carolina, upon which many of those local entities depend for monetary support, has yet to adopt its budget.  Democrats hold significant majorities in both houses of the legislature and have control of the Governor’s mansion as well.  Most press accounts attribute the budget stalemate to a failure of those elected Democrats to reach an agreement on which new or higher taxes they will authorize.  The situation has reached the point that Governor Mike Easley (D) has taken the step of “appropriating” money for the state’s public education system.  Some have questioned the Governor’s Constitutional authority for such action; there have also been questions about the particular programs that the Governor has selected. 

“The Governor’s action in issuing an Executive Order for funding certain education programs is a confirmation that the Democrat controlled General Assembly has failed in its basic responsibility to adopt a budget for the state,” said Senator Berger.  “Republicans proposed a workable budget almost a month ago that adequately funds state programs and cut tax rates.  Democrats continue to debate, behind closed doors, which tax they want to hike at a time when the state is enjoying the second consecutive year of budget surpluses in excess of a billion dollars.” 

Senator Berger also released a letter being sent to State Treasurer Richard Moore inquiring about the Treasurer’s position on the legality of Easley’s action.  Article 5, Section 7 of the North Carolina Constitution provides that the Treasurer may only expend money for appropriations authorized by law.  Case law interpretations of that provision indicate that the legislature is the only appropriate authority for appropriation of money.

“Much has been said about the fact that this session of the General Assembly has done very little of substance, especially in light of the length of the session,” continued Berger.  “The ‘do-nothing’ label seems to be confirmed by the Governor saying there is a need for him to take action, even though there are substantial questions about the legality of the Governor’s course of action.  I expect to hear back from Treasurer Moore.  The people have a right to know how he views the exercise of Executive power in light of the Constitutional language in Article 5, Section 7.” 

The text of Senator Berger’s letter to Treasurer Moore follows this release.

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July 24, 2007

The Honorable Richard Moore
Department of the State Treasurer
325 North Salisbury Street
Raleigh, NC 27603-1385

RE: Executive Order No. 120, July 20, 2007

Dear Treasurer Moore,

I am forwarding to you a copy of Executive Order No. 120 issued by Governor Easley on July 20, 2007.  In that order, the Governor directs the expenditure of funds for certain programs including the More at Four pre-kindergarten program and Disadvantaged Students Supplemental funding.  I understand and share the Governor’s frustration with the General Assembly’s failure to pass a state budget.  We are now more than three weeks into the new fiscal year.  However, Article 5, Section 7, of the North Carolina Constitution provides “No money shall be drawn from the State Treasury but in consequence of appropriations made by law . . . .”  I further understand that case law, including the case of White v. Hill, 125 N.C. 194, 34 S.E. 432 (1899), holds that there can be no money validly drawn from the state treasury without legislative authority.  Please advise as to what action the Treasurer’s office intends to take to provide funding for the aforementioned Executive Order. 

Thank you for your response to this inquiry and for your service to the people of North Carolina.   

                                                              Sincerely,

                                                              Philip E. Berger