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Gov. Stein vetoes school choice tax credit effort, signs squatter legislation

Gov. Josh Stein raises his hands while speaking at a wooden lectern. The background is dark blue curtains, with the U.S. and North Carolina flags standing on either side of Stein. He wears a gray suit, white shirt, no tie.
Mary Helen Moore
/
NC Newsroom
Gov. Josh Stein this week vetoed a bill allowing North Carolina residents to receive a tax credit for donations for school choice scholarships and signed legislation describing how squatters should be removed. Here, Stein is shown speaking at a July 29 press conference in Raleigh.

Legislative Republicans wanted to be the first state in the nation to opt in to a Trump Administration effort to provide tax credits for people who fund school choice scholarships.

They'll have to wait a little longer. On Wednesday, Gov. Josh Stein vetoed House Bill 87, an effort to opt in to the new federal tax credit program enacted by Congress' sweeping tax and spending bill earlier this year.

The legislation allows people to receive a dollar-for-dollar tax credit on up to $1,700 donated to nonprofits awarding scholarships that are both approved by the states and recognized by the federal government. States must agree to participate in the program.

Stein, a Democrat, wrote in his veto message that the legislation is unnecessary.

"Once the federal government issues sound guidance, I intend to opt North Carolina in so we can invest in the public school students most in need of after school programs, tutoring, and other resources," Stein said.

The veto is Stein's fifteenth this year. So far, the General Assembly has overridden eight of those, with a handful of House Democrats giving Republicans the votes they need.

Senate President Pro Tempore Phil Berger, R-Rockingham, said in a statement that he anticipates overriding Stein's veto on House Bill 87.

"Either you support school choice, or you don’t. Gov. Stein could have made North Carolina a leader in school choice and parental freedom by signing the Educational Choice for Children Act, but instead, he's attempting to usurp the General Assembly's authority to set tax policy," Berger wrote.

Stein also used his veto as an opportunity to restate his support for public schools, writing that he supports choice in the form of "magnet and accountable charter schools."

The governor expressed concern that the federal government is slashing funds for public schools while giving a financial boost to private schools.

"Cutting public education funding by billions of dollars while providing billions in tax giveaways to wealthy parents already sending their kids to private schools is the wrong choice," Stein wrote.

Squatter bill signed

Senate Bill 55 detailed how property owners can have squatters removed, with strict timelines for hearings and removal. Stein's signature wrapped up a back-and-forth that broke out just before the legislature took a summer break in late June.

"I’m pleased the legislature has improved this bill by removing the problematic puppy mill provision and concentrating on protecting property owners from squatters," Stein wrote.

Stein also signed a stopgap spending measure into law Wednesday, despite concerns about its impact on the state's Medicaid program.

Originally, the squatter language was in House Bill 96, legislation that received significant bipartisan support in the House.

But when it went over to the Senate, Sen. Danny Britt, R-Robeson, added a provision preventing local governments from regulating pet shops. Back in the House, that language raised concerns that it could be supporting the sales of dogs bred in puppy mills.

Ultimately, House Bill 96 passed. Stein vetoed it, stating he supported the squatter language but not the pet shop provision.

When the General Assembly returned in July, Senate Bill 55 took only the squatter language from the original legislation, omitting the controversial pet shop language.

Rep. Julia Howard, R-Davie, introduced the new version of Senate Bill 55 on the House floor on July 29.

"This is the squatters bill that we passed almost unanimously out of this chamber and sent it over to the Senate, and in their wisdom they messed it up and added a provision that had nothing to do with the squatter provision," Howard said.

Adam Wagner is an editor/reporter with the NC Newsroom, a journalism collaboration expanding state government news coverage for North Carolina audiences. The collaboration is funded by a two-year grant from the Corporation for Public Broadcasting (CPB). Adam can be reached at awagner@ncnewsroom.org
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