Budget allows votes on new taxes

Raleigh | Millions of dollars for Wilmington-area projects and institutions are included in a $20.7 billion spending plan tentatively approved Saturday by state lawmakers.

Also included is a provision that allows counties to ask voters for an additional tax on real estate deals. In New Hanover County, such a plan could raise as much as $20 million to fund projects like improvements to the troubled sewer system. A new tax, however, could also drive up the cost of homes in the area.

On Saturday, lawmakers voted along party lines, with Democrats for and Republicans against.

Final approval from the legislature is expected Monday, after which the bill will go to Gov. Mike Easley for his expected signature.

Here's a summary of items in the 321-page budget bill that are of particular interest to Southeastern North Carolina.

Referendums: When the budget bill becomes law, the county commissioners will be empowered to call referendums on whether voters want a special local sales tax and a new tax on real estate transactions. If voters approve, counties also could either raise the land transfer tax from 0.2 percent of the sales price to 0.6 percent or add a quarter-penny to the sales tax rate.

Rural governments: The budget will give $100 million to the N.C. Rural Center to help needy local governments, such as Sandyfield in Columbus County, build water and sewer systems.

Public defender's office: Lawmakers approved the creation of a new public defender's office in the New Hanover County courthouse in Wilmington. The new office, which will be staffed by full-time criminal defense attorneys and support workers, replaces a system that had appointed private lawyers to defend clients who could not afford representation.

District court judge: The budget also approves the appointment of a ninth District Court judge to work at the Wilmington courthouse and a new New Hanover County magistrate judge.

State Ports: The State Ports will get $7.5 million in state tax money to pay for improvements in Wilmington and Morehead City. At the Wilmington dockside, the money will used to improve Berth<0x00A0>8.

Dredging: Lawmakers approved $20<0x00A0>million for waterway work and dredging throughout the state, including $6.3 million for Wilmington harbor deepening and maintenance.

UNCW: The budget bill would allow the University of North Carolina Wilmington to borrow up to $34.5 million to build a new teaching laboratory at the South College Road campus.

Public water access: Lawmakers will create a new fund to acquire waterfront property along the coast for public and commercial access, and will authorize it to borrow $20 million to pay for the real estate purchases.

Film commission: The budget also will give $50,000 to each regional film development board in the state, including the Wilmington Regional Film Commission.

Mark Schreiner: (919) 835-1434

mark.schreiner@starnewsonline.com