The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Friday, June 28, 1996                 TAG: 9606280458
SECTION: LOCAL                   PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY PAUL SOUTH, STAFF WRITER 
                                            LENGTH:   94 lines

ASSEMBLY TO BEGIN ROUND 2 ON JULY 9 THEN, BASNIGHT SAYS, A 6% TEACHER RAISE WON'T BE NEGOTIABLE.

When the General Assembly goes back to work July 9, Senate leader Marc Basnight said Thursday, some issues are not open for compromise - including a 6 percent pay raise for teachers.

``The Senate is flexible, and will accept any reasonable proposals,'' the Dare County Democrat said in an interview. ``But there are certain absolutes. I think we should provide more money for education - to raise teacher salaries, to help prevent school violence and to fund technology.''

He said the Democratic approach would make ``a real investment in the future of our state.''

After a morning conference call with Basnight and the Democratic leadership in the Senate, Gov. James B. Hunt Jr. announced Thursday afternoon he would summon lawmakers back to Raleigh to break the budget impasse.

The two chambers are miles apart on what to do with some $700 million in revenue. The Republican-controlled House adjourned last Friday, leaving the state without a budget for the first time in its history. The major sticking point concerns teacher and state employee pay raises.

The Democratic-controlled Senate blueprint provides for a 6 percent increase for teachers, and 5 percent for state employees. The House version provides 4 percent for teachers, and 3 percent for state workers.

Originally, the House proposed a 3 percent raise for educators, but later increased it to 4 percent. Basnight said he fears that the Republican increase means cuts in other state programs.

``I don't know where their extra 1 percent is going to come from,'' Basnight said. ``Is it going to come at the expense of the community college system, or will it come from the universities?''

Basnight blames much of the deadlock on election-year politics. Rep. Robin Hayes, Hunt's Republican opponent in November, is widely credited for leading the House to adjournment.

``A lot of it is politics,'' Basnight said. ``You've got someone in the House who says we don't need to be spending money on education. But I don't see it as spending money. I see it as an investment in making our people competitive in the world economy. I know for a fact that there are teachers who have left Manteo or First Flight, or Currituck County, to teach in Virginia, or else they've left the profession altogether, because they can't afford to stay in teaching. We rank 42nd in the country in teacher salaries. It's critical that we improve that to keep good people in the profession.''

The Senate budget bill would also continue aid to the state's private colleges.

``We should hold the provision for tuition to private colleges,'' he said. ``It will save money for state universities, and also give relief to parents.''

The Senate would provide for $610 million, while the House would spend about $300 million. Basnight said the GOP proposal would gut key environmental and social programs within his district.

``We have money budgeted to staff a center for mentally retarded citizens in Tyrrell County,'' Basnight said. ``The people who will be most affected by that are folks who by no fault of their own were born mentally retarded. And it will hurt their families.''

Another key element of the Democratic plan provides funding for state waterway projects, including money for clearing Oregon Inlet.

``The House budget would virtually cut environmental funding in half, from $60 million to $29 million,'' Basnight said. ``That would wipe out dredging projects like the one from Wanchese to Oregon Inlet, and even small projects like Colington. If that happens, then the local governments are going to have to absorb those costs. And some of those projects are very expensive.''

With no budget in place, funding for as many as 600 state jobs could be lost, leaving those employees out of work. Last Wednesday, state budget officer Marvin Dorman told a meeting of Hunt's Cabinet that as many as 1,000 state and non-profit workers could lose their jobs.

``You've got a lot of state workers that make $12,000, $14,000, $16,000 a year, who go to work every day and do a good job for this state,'' Basnight said. ``But we rank 48th in salaries for them. If we don't provide them with decent salaries, and invest in education, the loss could be tremendous.''

Basnight would not predict how long the recall session will last.

``You can't put a timetable on these things, and you shouldn't put a timetable on them when you're working to do what's in the best interest of the people of this state.''

Basnight also tried to strike a conciliatory note with House Republicans and Speaker Harold Brubaker. However, Basnight said he asked the GOP-controlled House not to adjourn.

``I respect our differences of opinion,'' Basnight said. ``I don't believe Speaker Brubaker is doing this out of politics. He believes we shouldn't spend the money.''

Basnight also refused to speculate on how this legislative demolition derby would affect November's election. Democrats hold a slim two-seat margin in the Senate. ILLUSTRATION: DREW C. WILSON

The Virginian-Pilot (above) and The Associated Press

Senate leader Marc Basnight, right, discusses the General Assembly's

budget impasse with WNHW broadcaster Ken Mann on Thursday morning in

Nags Head. Basnight tried to strike a conciliatory note with House

Republicans, including Speaker Harold Brubaker, right, shown at a

news conference Thursday in Asheboro. by CNB