SENATOR JERRY TILLMAN

SENATE MAJORITY WHIP

SENATE UPDATE
March 30, 2011

DENR

The Department of Environment and Natural Resources is being given careful review. It is
about time. Senator Don East, Co-Chair of the NER (Natural and Economic Resources)
Committee says DENR is anti-business and is in need of down sizing. I believe Senator East
is right. The majority of complaints I receive from business leaders, the home and commercial
construction industry folks, and farmers relate to the heavy handed and callous approach
proffered by DENR. We have thousands of regulations and rules which promote a
disincentive to those trying to provide jobs in an already slow market.

North Carolina needs every agency doing its best to promote job growth. When any agency
fails to do this we have a problem. I believe you will see a change for the better and see it
soon. We will see…

State Budget

Recent revenue figures are not encouraging. There are some upticks in economic activity, but
not nearly enough. Job growth is almost non-existent with the unemployment rate hovering
around 9.8% which is higher than the National Average. The real unemployment rate is closer
to 20%. Most people I know understand this fact. You can’t spend more than you take in.
Republicans will not tax and spend our way out of a $3 billion hole. This has been tried before
and it never works. Businesses and families alike have one option, stop spending more than
you take in. Responsible government has to do the same. You will see… Of course you will
hear a great hue and cry when cuts are made. Especially to education, which is near and dear
to my heart. It well may take 2-4 years to fix the mess we are in. I did not vote for any of the
bloated budgets and tax increases of the past 8 years. I will vote for the budget which
realistically addresses the problem. Wait and see…

McCrory vs. Perdue

A recent poll by the Democrat leaning Public Policy Polling Group shows Republican Pat
McCrory leading Democratic Gov. Bev. Perdue 50% to 36%. Of those polled, 52% said they
disapprove of Perdue’s job performance while 30% approve. What does this mean? At this
early date, not much, but as for me, given the choice I’d rather be leading. At the end of the
day, second place is a poor consolation prize.

Senate approves health plan reforms that will save millions

Raleigh, N.C. -- Faced with rising health care costs and a multi-billion dollar budget deficit,
the North Carolina Senate on Thursday approved responsible changes to the state health plan
that will help shore up hundreds of millions of dollars without cutting jobs.

Senate Bill 265 passed tentatively. It keeps costs low while mitigating impacts to rank-and-
file state employees. Among other changes, the bill:

• Moves the state health plan to the state treasurer's office. The General Assembly is one
of the few legislatures in the country that oversee the state health insurance. Moving
the plan will put it under the same authority as the state retirement system.

• Requires state employees to pay a modest monthly premium for quality coverage.
They will pay $21 per month for the best coverage plan, and about half that amount for
a basic option. The premiums are about 5 percent of the cost of coverage.

• Maintains access to low-cost medicine. It keeps $10 co-pays for generic prescriptions.

For years, the state health plan has teetered on the verge of financial collapse. The treasurer's
office, with experience running the state's pension system, is a good fit. Private-sector
employees have long paid premiums for their health care. This is a strong step toward
ensuring the plan's future stability.

The State Employees Association has endorsed major components of the bill, such as moving
the health plan to the treasurer's office.

Gov. Beverly Perdue's budget proposal also called for premiums for state employees.

Health care costs are skyrocketing and taxpayers cannot afford to take more money from the
general budget to pay for health insurance. We’re doing everything we can to keep everyday
costs low. This is a high-quality health care product and a very attractive benefit.

Senate Republicans quickly passed a medical malpractice bill earlier in the session that will
help lower health care costs and increase access to care. Senate Bill 33 will cut down on
unnecessary tests and procedures doctors administer to avoid excessive lawsuits. Those extra
costs are passed down to taxpayers through higher insurance premiums and taxpayer-funded
programs for the poor.

Senate elects eight members to UNC Board of Governors

Raleigh, N.C. – The North Carolina Senate today elected eight individuals to four-year terms
on the University of North Carolina Board of Governors, the policy-making body responsible
for the supervision, management and governance of the 17 institutions in the UNC system.

Below are the new members:

• W. Louis Bissette, Jr. of Asheville, a retired attorney

• Fred Eshelman of Wilmington, Executive Chairman and Founder of Pharmaceutical
Product Development, Inc.
• John C. Fennebresque of Charlotte, an attorney with McGuireWoods LLP
• Ann G. Goodnight of Cary, Director of Community Relations for SAS Institute
• H. Frank Grainger of Cary, an officer and part-owner of Fair Products Inc. and Tritest
Environmental Lab
• Peter D. Hans of Raleigh, senior policy advisor with Nelson Mullins Law Firm
• Thomas J. Harrelson of Southport, Vice President of AECOM
• Philip D. Walker of Hickory, Senior Vice President for BB&T

The University of North Carolina system provides the best public higher education in our
country. We commend these individuals for their commitment to serve and make the system
even stronger.

The UNC Board of Governors is comprised of 32 voting members. The General Assembly
elects 16 members every two years -- eight from the Senate and eight from the House. In
addition, there are non-voting members with varying terms including former chairs of the
board, former governors and the president of the UNC Association of Student Governments
(or that student's designee.)

Civitas Poll: Voters Support Legislature in Federal Health Care Fight

Raleigh, N.C. – Support is with the General Assembly who passed the Protect Healthcare
Freedom Act. More voters agreed with the lawmakers who passed the legislation than those
who supported Gov. Bev Perdue’s veto of the bill, according to a new poll released today by
the Civitas Institute.

Voters were asked whether they agreed with the Legislature passing the bill or the Governor
vetoing the measure. Forty-seven percent of voters agreed with the Legislature and 40 percent
with the Governor. Twelve percent said they did not know.

Unaffiliated voters agreed with the Legislature by a 53 percent – 38 percent margin.

Republican voters agreed more with the Legislature 59 percent to 26 percent), while
Democratic voters largely agreed with Governor Perdue’s veto of the measure by a 59 percent
to 26 percent margin.

Of those voters who said they agreed more with lawmakers who passed the bill or did not
know, 60 percent said that Governor Perdue’s veto of the Protect Health Care Freedom Act
made them less likely to vote for her in 2012. Just 7 percent said it made them more likely to
cast a vote for her.

“The health care issue remains a polarizing one with voters and Governor Perdue risks
alienating swing voters when she vetoes a bill that is not unpopular with voters,” said Civitas
Institute President Francis De Luca.

Quote

“Be a yardstick of quality. Some people aren’t used to an environment where excellence is
expected.” Steve Jobs

SENATOR JERRY TILLMAN

SENATE MAJORITY WHIP
627 Legislative Office Building
Raleigh, NC 27601-2808
Phone: 919.733.5870
Fax: 919.754.3339
jerryt@ncleg.net

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