Several Democratic lawmakers filed a bill Thursday that would place a $3.9 billion bond for schools, colleges and universities, and water and sewer infrastructure on the November ballot.
Under House Bill 1088, taxpayers would be asked to approve $2 billion for public schools to begin to address an estimated $8 billion in construction and renovation needs.
In addition to the $2 billion for schools, the lawmakers want to spend:
- $800 million on water and sewer infrastructure.
- $500 million on community colleges.
- $500 million on the UNC system.
- $100 million on the Museum of History and NC Zoo.
“2020 has seen the end of the longest economic expansion in history,” said Rep. Wesley Harris, a Democrat from Mecklenburg County who is one of the bill’s primary sponsors. “Unfortunately, we failed to take advantage of this growth to adequately fund the infrastructure needs of our state, which are the true drivers of long-term economic growth. Instead, our legislature chose tax cut after tax cut.”
Rep. Julie von Haefen, a Wake County Democrat; Rep.Raymond E. Smith Jr.; a Waye County Democrat and Rep. Kandie Smith, a Democrat from Pitt County also co-sponsored the bill.
The $3.9 billion bond proposal mirrors one previously floated by Gov. Roy Cooper.
Last year, Republicans backed a pay-as-you-go plan approved by the House and Senate to pay for infrastructure needs. It was vetoed by Cooper.
Republicans backers of the pay-as-you go scheme argued that it would get money to school districts quicker and save more than $1 million in interest payments.
“It allows you to spend more money on where you would like for it to be spent,” Sen. Harry Brown, an Onslow County Republican, said in 2019.
Democrats argued that the pay-as-you-go scheme would take money from the state’s general fund better spent on increasing teacher pay or fully funding the N.C. Department of Health and Human Services.
“As we approach a year with expected revenue shortfall, we must preserve every dollar in our general fund that we can, while still making sure we are able to fund our critical infrastructure needs,” Harris said.
Lawmakers expect state revenue shortfalls of between $2 billion and $4 billion because of the COVID-19 crisis, which closed the state’s economy.
North Carolina’s AAA bond rating from major rating agencies would allow the state to issue debt cheaper than nearly any other state, Harris said.
“This proposal begins to close the gap in our infrastructure needs, preserves our general fund for other pressing expenses, and the capital projects will be a job creator as our State’s economy begins to recover from the COVID19 crisis,” Harris said.