1. RONALD RABIN
STATE SENATOR, DISTRICT 12
SENATE UPDATE
June 4, 2013
This past week I wrapped up my 14th Town Hall Meeting since taking office in January. This summer, I am
looking forward to making more stops. It is impossible for me to do my job unless I hear from you. That is the
purpose of the Town Halls, and as long as I am your Senator, I plan on continuing the “Town Hall Tour”
throughout the District. I believe that my first six months in office have been very productive and feel as though
I have been a part of many significant and important changes to our State’s direction due very much to the
insights gained from you at our town hall meetings. Below I have listed some of the legislation that has been
put forth and passed to help better the lives of every citizen of North Carolina. Enjoy the letter, and please feel
free to contact me with any questions or concerns.
District 12 Shining Stars
LEFT: Jack Runchy of Anderson Creek MIDDLE: Kelsey MaGaha of Campbell University RIGHT: Lee County Homeschool Group
I had the pleasure of having different constituents visit my office during this month. Jack Runchy of Anderson
Creek came to visit and was recognized on the Senate Floor for his 39 years of teaching. Kelsey McGaha also
came to visit, she is a student at Campbell University and has a bright future ahead of her. The Lee County
Homeschool Group stopped by for a visit as well. Mary Hana, on the far left, volunteered to be a Senate Page
a few months ago and comes by every so often with her friends or family to pay a visit. I thoroughly enjoy
having these young people stop by to chat and thank them for their active participation in their community.

2. Keeping Campaign Promises
You can view a complete list of bills I have sponsored or co-sponsored HERE
2013-2014 Biennial Budget
May has been a very eventful month. Our biggest accomplishment was the passage of the Senate version of
the 2013 - 14 biennial budget (SB 402). As I have often said, we in the Senate will not make everyone happy
with our decisions. However, that's how a republic operates. With our balanced budget law (which I would not
change) our revenue forecast determines how much we can spend and we must be realistic in that forecast.
When funds are limited, and our wants are limitless, we can only afford what we need. We have been able to
hold the line on most items in the HHS line, but unforeseen Medicaid costs made it impossible to increase any
budget area.
Filling a Hole in Medicaid
For months now, we’ve seen how unexpected, out-of-control costs in North Carolina’s Medicaid program are
undermining our ability to fund key priorities like education, transportation and public safety.
Last week, the Senate passed legislation to fill yet another Medicaid shortfall. Earlier this month, the N.C.
Department of Health and Human Services and the Office of State Budget and Management announced that,
because of a forecasting error made under the administration of former Gov. Beverly Perdue, the shortage was
even higher than expected, well over $300 million.
House Bill 980 authorizes the executive branch to redirect up to $401 million in additional state dollars to meet
our obligations to Medicaid recipients and the federal government through June 30, 2013.
It is the latest in a series of bills we’ve been forced to pass because of overspending in Medicaid. In 2012, the
General Assembly fixed a surprise Medicaid shortfall that totaled more than $500 million, and a recent report
from the Office of the State Auditor found shortfalls totaling approximately $1.4 billion over the last three years.
That’s why the budget we passed last week includes a special provision allowing the executive branch to
develop a comprehensive plan for Medicaid reform over the next several months. This action is the first step
necessary to bring about meaningful change to North Carolina’s Medicaid program.
We appreciate the governor’s leadership in spearheading this much-needed reform and look forward to
working together to fix our state’s broken Medicaid system.
Party Affiliations
I do support Representative Mike Stone’s HB 490 which addresses Lee County elections. In my opinion, all the
elected officials who spend taxpayer dollars should declare their party affiliations because it gives voters and

3. taxpayers an idea of how the dollars might be spent in the future. I believe party affiliation is an important
indicator in this regard.
Presenting the Largest Tax Cut in State History
Last week, Senators Bill Rabon (R-Brunswick) and Bob Rucho (R-Mecklenburg) presented Senate Bill 677, the
Tax Fairness Act, to the Senate Finance Committee. A three-year plan to put over a billion dollars back into the
pockets of North Carolina’s hardworking families, the Tax Fairness Act encourages job growth by providing
needed tax relief to job-creating businesses.
With the fifth worst unemployment rate in the country and the highest tax burden in the Southeast, we need a
bold, comprehensive plan for tax reform to revive our state’s economy. And we can’t afford to wait.
Too many North Carolinians are out of work. Too many families and small businesses are being penalized for
their hard work and success. Too many of our citizens are paying excessive taxes. Too many businesses are
choosing to locate in neighboring states.
We need reform that simplifies and updates our state’s outdated tax code, and makes North Carolina more
competitive with our neighbors to attract new businesses and jobs.
As a member of the Finance Committee, I am working hard on this bill because I believe it is time to remove
the greatest impediment to North Carolina’s economic recovery and return our state to prosperity and that
impediment is our our-dated 1930s tax system.
Here are some the highlights from the current proposed changes:
 Reduce the top state personal income tax rate from 7.75 to 4.5 percent over three years and reduce the
tax rate on lower income earners from 6 to 0 percent immediately upon implementation of the plan.
 Reduce the corporate income tax from 6.9 percent to 6 percent over three years.
 Reduce the combined local and state sales tax from 6.75 percent to 6.5 percent and expand the sales
tax base to include services. Business-to-business transactions within the expanded base will not be
taxed.
 Reduce the business franchise tax by 10 percent.
 Eliminate North Carolina’s death tax
 DOES NOT tax Social Security if that is your only source of income.
 DOES NOT eliminate Federal deductions for mortgage interest.
School Property Transfer
Senate Bill 236, Counties Responsible for School Construction, has created quite a controversy. As a sponsor
of that bill I would like to share some of my thoughts. The language of the bill does not diminish the role of local

4. boards of education in so far as the design of the building and education-related facilities are concerned. On
the other hand, it removes non-education related tasks from already full plate of responsibilities of educators.
Other provisions of the bill provides for there being a mediation process should local boards of education be
dissatisfied with the board of commissioners plans. In fact, the language of the bill says that this transition is
not mandatory but may be done at the discretion of the government. It is enabling legislation, not directive.
I am looking forward to representing you in the month of June. Please continue to send me your inputs so that I
can make the best decisions on your behalf. As always, my door and my phone lines are always open.
With kindest regards, I am
Sincerely,
SENATOR RON RABIN
DISTRICT 12
526 Legislative Office Building
Raleigh, NC 27601-2808
Phone: 919.733.5748
Fax: 919.754.3150
Ron.Rabin@ncleg.net
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