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McCrory foresees compromise on budget, taxes

RALEIGH Gov. Pat McCrory declined to say Wednesday whether he would veto a state budget that includes provisions he disagrees with.

The Republican governor told the Observer he believes he can compromise with leaders of the GOP-controlled General Assembly.

McCrory doesn’t like some parts of the Senate budget that could be passed by that body Wednesday. Among them: a proposal to eliminate special Superior Court judges, transferring the SBI from the Attorney General’s office to the Department of Crime Control and Public Safety and the lack of pay increases for state employees.

“I’ll probably follow the same line I did as (Charlotte’s) mayor,” the governor said. “I never showed my cards this early in the process.”

He said he hopes to work out differences “through dialog as opposed to immediately using the veto card as leverage.”

“I don’t think that’s the way you should do business,” he added. “I have used the veto before at the local level I wouldn’t be afraid to use it at the state level.”

McCrory also said he hopes to negotiate a compromise over tax reform with Senate and House leaders. Both chambers have offered reform plans that would reduce the corporate income tax while expanding the number of services subject to a sales tax.

The House and Senate plans differ in key areas. But both would result in lower overall revenues for the state. McCrory campaigned on “revenue neutral” tax reform.

“We’ve all determined we going to have to work together to come up with a consensus on what the plan should be,” he said. “I think the final plan will be a combination (of) what … I am seeking and what the House and Senate are seeking.…

“I do think it needs to be revenue neutral.”

Morrill: 704-358-5059
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