State Rep. Jamie Boles says now is not the right time to pass along millions of dollars in tax increases.

The House's version of the budget contains $780 million in tax hikes. Democrats contend that they are needed to save thousands of teaching jobs and avoid deep cuts to other state programs. The budget also slashes spending by about $3.5 billion.

Boles was pleased that the sentencing services program has been restored -- at least for now -- to the House budget, and that it may be possible to spare Samarkand Manor from closure.

"This is no time to offer tax increases to the people, especially the moderate and low-income people," he said. "We need to cut the fat out of government."

Boles, like all of his Republican colleagues in the House, oppose tax increases. Most of the battle about the budget appeared centered among the dominant Democrats.

"This is a great opportunity for the state of North Carolina to offer its citizens a realistic budget of cuts in an overgrown government of the past," Boles said.

Boles, a Southern Pines funeral home owner, said businesses and individuals know they cannot operate with more money than they take in, and the state should do the same. He said this is a good time for the state to get back to the constitutional intent for a balanced budget.

As an example of unnecessary budgeting, Boles mentions the multiple programs targeting school dropouts. He said the state should concentrate on one good program, instead of funding six to 10 separate programs with the same goal.

"Let's use taxpayer money efficiently and use it to get the best results," he said.

At this point, nothing is a sure thing on the state budget. Gov. Beverly Perdue presented her budget in April, the Senate presented an entirely different budget in May, and the House has its version. Ultimately, it will be up to a joint committee of the House and Senate to work out a budget to be given final approval by both chambers and the governor's signature.

This means that school funding and other projects close to home are yet to be resolved. The tax package would increase the sales tax and apply it to new items and services, create a higher income tax rate for the state's wealthiest residents and increase the tax on liquor. It also calls for new filing rules for corporations.

"We should put up new signs that say 'Welcome to North Carolina small businesses where we will put you out of business,'" Boles said. "This is a travesty."

However, Boles said he has restored the sentencing services item to the state House and hopes to save Samarkand Manor from closure.

Sentencing services is a program that actually saves the state money by directing certain persons away from prison incarceration and into less expensive programs, such as drug abuse prevention counseling. It is a program supported by District Attorney Maureen Krueger.

The Senate version of the budget calls for closing Samarkand Manor, a historic institution for troubled youths in Eagle Springs. In addition to employing a number of local residents, Samarkand is regarded as something of a historic landmark in Moore County.

Boles has been fighting to prevent Samarkand from being closed. But he admitted that the future of all these projects remains uncertain because many hurdles remain.

One of his key concerns is the expected use of federal stimulus money to balance the budget. He doesn't think that was the intent of the American Recovery and Reinvestment Act of 2009.

"Two years from now we'll be worse off because we won't have `Big Brother' to bail us out," he said. "Let's do the right thing and get back to our core mission and cut out a lot of pet projects."

Boles said a prime example of pet projects is the series of events making headlines from N.C. State University in recent weeks. He was referring to a cronyism controversy involving the hiring of former first lady Mary Easley for a high-paying salary at State. The controversy has led to several resignations, and more recently to elimination of Easley's job.

In addition to sales and income tax increases, the budget plan would extend the sales tax to such things as warranties, installations and repairs and other services, as well as to retail goods. Boles disagrees with all of the increases.

Boles said the budget process is frustrating in other ways. Last week, the Appropriations Committee, of which he is a member, was meeting at the same time as the Finance Com-mittee. He said it makes sense for the body that spends money to know how much money is available to spend, which is what the Finance Committee does.

He is also critical of the governor's budget, which did not take into consideration the latest tax revenue statistics showing that the state had collected 40 percent of projected income taxes as of April 15.

"Our government has grown too fast," he said. "Like every other household, we have to rein in our expenses and live within our means."

Despite his frustration, Boles admits that the House is working hard to find a budget solution. The House did not adjourn until 11:30 one night this week and was in session Saturday trying to finalize the budget.

Contact Florence Gilkeson at 947-4962 or by e-mail at florence@thepilot.com.