(The Center Square) – The North Carolina Senate’s version of a state budget for the next two years breezed through three committees Tuesday with few changes or opposition.

The proposed budget, Senate Bill 257, includes income tax cuts, and a doubling of taxes for sports betting companies who operate in North Carolina from 18% to 36%.

The Senate spending proposal, unlike Gov. Josh Stein’s proposed budget, fully funds the state’s retirement plan. It also increases funding for the state health care plan by $318 million over the next two years.

It would raise teacher pay and funding for colleges and universities.

“This budget continues the success North Carolina has seen over the last decade and half,” Sen. Ralph Hise, R-Mitchell, one of the bill’s sponsors, told members of the Appropriations/Base Budget Committee.

The first year of the two-year proposed budget is $32.6 billion, the second year $33.3 billion, Hise said. It’s an increase of $1.3 billion, or 4% in the first year, and $733 million in the second year.

He described it as “modest growth” that still allows the state to replenish its “rainy day” reserve fund, which at the end of two years will be back at $4.75 billion. It will bring state funding for a new children’s hospital in Charlotte to $855 million.

It adds another $700 million for Hurricane Helene recovery, adding to the $1.4 billion already appropriated.

“It is also our understanding that Gov. Stein is working on another request for recovery needs,” Hise said. “But as yet, we are not at that place.”

Some of the state funds spent on hurricane relief will likely be reimbursed by the federal government, Hise added.

“We are hopeful the federal government will provide increased and expedited reimbursements,” Hise said. “But we must prepare to fend for ourselves.”

Under the proposed budget, most state employees would receive 1.25% raise the first year and a $3,000 bonus over the entire two-year period covered by the budget, said Sen. Michael Lee, R-New Hanover.

Correctional officers would receive a 5.25% raise with other state law enforcement officers also getting extra pay raises. Local law enforcement officers would receive $3,000 bonuses over the two-year period. Nurses employed by the state would also received higher 3.25% raises over the two years.

Teachers would receive a 3.3% raise over the two years plus a $3,000 bonus. With those raises, the average teacher pay in North Carolina will be $62,407, Lee said.

The proposed budget passed the Appropriations/Base Budget Committee, Finance Committee and Pensions, Finance and Aging Committee with only minor changes on Tuesday.

Louisiana needs legal reform, not only to address rising insurance costs, but to fix a civil justice system that has become increasingly hostile to businesses and consumers. Louisianans continue to face an untenable insurance crisis and – though a glaring one – this is only one example of an unpredictable civil justice system that fosters excessive litigation, discourages new business and innovations and drives up costs for all of us.

A healthy civil justice system should provide a framework to address wrongs and seek redress for injuries or damages caused by others. Our system in Louisiana has long been out of balance. Litigation has become ingrained in our culture, fostering a “jackpot justice” mentality. Lawsuits are not economic development, but they have become a cottage industry for a handful of big-time trial lawyers who spend tens of millions annually on advertising. A national study recently released by the American Tort Reform Association found that more than $20 million was spent on advertising in Louisiana during the first quarter of 2024, alone. Clearly, these investments are paying off.

“Nuclear verdicts” of $10 million+ are on the rise in Louisiana, keeping us on the Judicial Hellholes® list. Georgia, seeing a similar surge in these excessive verdicts, passed comprehensive legal reforms earlier this year to limit lawsuits and reduce consumer costs, with key provisions including restrictions on attorney fees, regulation of third-party litigation funding, and changes to trial procedures.

In the first quarter of this year, two precedent-setting judgments were handed down in Louisiana. Last month, the first of 41 coastal lawsuits was tried in Plaquemines Parish, resulting in a staggering $745 million damage award. In February, the 19th JDC awarded record damages of over $411 million to one individual in a single case.

If judgments remotely close to these become common, Louisiana will face a parallel crisis: along with current insurance unaffordability, many businesses will have to determine whether they can keep their doors open. New investments are likely to go to less litigious states that provide more predictability, while hardworking Louisianans will feel the effects of these missed opportunities for years to come.

Texas enacted sweeping reforms more than two decades ago, cementing its reputation as one of the top states for business attraction. Florida has also seen tremendous economic benefits through significant legal reforms passed in 2022 and 2023.

With all these successes in neighboring states, enacting comprehensive legal reform in Louisiana should be a clear priority.

Reducing frivolous lawsuits and increasing transparency across our civil justice system are crucial if the goal is putting Louisiana’s families and job creators first. Let’s get it done.

Lana Venable is executive director of the Louisiana Lawsuit Abuse Watch

(The Center Square) – South Carolina is ranked No. 29 in the country in economic outlook in the 18th annual Rich States, Poor States ranking.

Fifteen state policy variables are measured in the ALEC-Laffer State Economic Competitiveness Index, released Tuesday by the American Legislative Exchange Council. Better scores go to states spending and taxing less to attain higher growth rates.

A year ago, South Carolina was 24th. The drop of five spots was matched by four other states and eclipsed only by the 10-spot drops of Mississippi and Virginia.

South Carolina is No. 8 in economic performance rank, a measure that measures 2013-23 for state gross domestic product (11th), absolute domestic migration (5th), and nonfarm payroll employment (8th).

In the 15 variables, South Carolina is top five nationally in just three: estate/inheritance tax levied (none, tied 1st); minimum wage ($7.25 an hour, tied 1st); and right to work (yes, tied 1st). The state was 20th or worse in nine measurements.

The worst categories were each 44th: personal income tax progressivity ($21.43) and state tort system costs (2.54%)..

Among nearby states in the South, Tennessee was No. 2, North Carolina No. 4, Georgia No. 13, Florida No. 15, and Virginia No. 32.