Memorandum
To: / Jennifer Roberts, Mecklenburg County CommissionersFrom: / Bill Scoggin, Chris Hollis and Daniel Baum
Date: / June 11, 2010
Re: / 2010 Short Session: Week Five Report
Overview
Early this week, as expected, the Senate voted to “not concur” with the House’s budget proposal. Quickly after this vote, a conference committee was appointed by the leadership of the Senate and House to begin negotiations on the budget. On the Senate side, the committee consists of every Senate Democrat and three Republicans: Sen. Stan Bingham (R-Davidson); Sen. Fletcher Hartsell (R-Cabarrus); and Sen. Richard Stevens (R-Wake). On the House side, the committee consists of all House Democrats with the exception of three. Speaker Joe Hackney (D-Orange) was not included as he traditionally only votes to break a tie, and two House Democrats who voted against the budget: Rep. Earl Jones (D-Guilford) and Rep. Nick Mackey (D-Mecklenburg). Additionally, ten Republicans were included as members of the conference committee from the House.
Late Thursday afternoon, the conference committee announced its schedule for the next two weeks, rules for conference committee negotiations, and released spending targets for each subcommittee. Each subcommittee will meet next week to review the differences between the House and Senate proposals while remaining within the spending targets. At the end of next week, the subcommittees will submit reports to conference committee chairs, which will work through the week of June 21st to develop a final conference committee report that will be voted on by both chambers.
Below we have prepared a chart which outlines the differences between the conferees’ spending targets and the proposed budgets of the Governor, the House and the Senate. These are then broken out further by what each budget proposed to spend by subcommittee. The difference between a proposed subcommittee budget and the spending target for that subcommittee is listed on the line below. If it is shown as a negative balance (in parentheses), the proposed budget would need to be reduced by that amount to meet the spending targets. For example, the Governor’s proposed budget for Education would need to be reduced by $21 million in order to meet the spending target. In other words, the Governor’s proposed budget for Education exceeds the spending targets by $21 million.
Education / HHS / JPS / NER / General Gov. / TotalGovernor / $ 10,789,985,290 / $ 3,934,609,900 / $ 2,117,520,725 / $ 443,180,532 / $ 441,151,870 / $ 17,726,448,317
$ (21,623,664) / $ (1,736,274) / $ (20,725,813) / $ (30,182,435) / $ (5,153,053) / $ (79,421,239)
Senate / $ 10,871,248,043 / $ 3,915,632,709 / $ 2,096,794,912 / $ 452,017,032 / $ 433,734,701 / $ 17,769,427,397
$ (102,886,417) / $ 17,240,917 / $ - / $ (39,018,935) / $ 2,264,116 / $ (122,400,319)
House / $ 10,685,416,387 / $ 3,970,055,721 / $ 2,117,226,859 / $ 453,502,672 / $ 436,738,215 / $ 17,662,939,854
$ 82,945,239 / $ (37,182,095) / $ (20,431,947) / $ (40,504,575) / $ (739,398) / $ (15,912,776)
Conferees’ Spending Targets / $ 10,768,361,626 / $ 3,932,873,626 / $ 2,096,794,912 / $ 412,998,097 / $ 435,998,817 / $ 17,647,027,078
To remain on schedule, the conference subcommittees must report to the conference committee chairs by the end of next week. Then the chairs of the conference committee must develop a final budget by June 28th with a vote by the House and Senate on June 29th. While this is a vigorous schedule, both chambers have kept up the pace. Excluding an unforeseen calamity, we expect the schedule will be maintained until the budget is ratified and sent to the Governor.
Legislative Agenda Items
1) Expand the Board of Equalization and Review - This bill has been introduced three times in the Senate: S 1347 by Sen. Clodfelter; S 1367 by Sen. Dannelly; and S 1431 by Sen. Graham. Rep. Ruth Samuelson has sponsored this in the House as H 2041.
2) Allow Mecklenburg County to enter into leases of greater than 10 years for energy efficiency equipment - S 1114, which combines requests for this legislation by Chapel Hill, Carrboro, and Mecklenburg County into one bill, remains in House Local Government II. Additionally, Rep. Becky Carney and Rep. Ruth Samuelson have introduced this agenda item as H 2040. Sen. Malcolm Graham previously introduced this as S 1335.
3) Restore Charlotte Mecklenburg Library’s eligibility for sales tax refunds - The Revenue Laws Technical Corrections bills, S 1177 and H 1810, include this language in Section 4(a). S 1177 remains in House Finance, along with H 1810.
4) Allow Mecklenburg County to maintain current EMS protocols – We are working with members of the delegation to move this legislation forward as part of other eligible bills.
5) Allow Mecklenburg County to publish the names of delinquent taxpayers on its website - Sen. Clodfelter introduced this agenda item as S 1381, which is a public bill. In addition to this legislation, we have been directed to include this as an item for study during the interim.
Appropriations Agenda Items
1) Restore state aid to counties for DSS. This funding is not restored in the Senate’s budget.
2) Restore funding cuts to Area Mental Health and reform the distribution formula for mental health funds. The House Money Report partially restores Community Service Funds on page G-2 while the Senate Money Report fully restores the funds on page G-3.
3) Restore the per diem payment for state prisoners housed in county jails. This funding is not restored in the House, Senate or Governor’s budget. It is likely it will not be included in the conference report.
4) Restore funding for the NC AIDS Drug Assistant Program. - This is included in the House Money Report on page G-6. It’s also included in the Senate Money Report on page G-6 and in the Governor’s Recommended Budget on page 127. It will likely be included in the conference report.
Support Agenda Items
1) Support legislation that provides incentives to local governments that develop Regional Planning Organizations. - This is included in the Senate budget on page 104. There are also two stand-alone bills H 1701 or S 1333, which are listed below.
2) Unfreeze magistrate positions to allow for the hiring of a magistrate in North Mecklenburg.
3) Support the request of the Charlotte Mecklenburg Board of Education for local flexibility regarding staff spending and the school calendar. The Senate budget authorizes LEAs to implement furloughs to balance their budgets on page 140.
Bills of Interest
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H 1659 - Rep. Paul Stam (R-Wake) - An act to amend the constitution to prohibit public condemnation of private property to convey an interest in that property for economic development - House Appropriations. This bill was amended and approved by House Judiciary II this week, and was sent to House Appropriations for further review.
H 1691 - Rep. Roger West (R-Cherokee) - To modify the use of 911 funds - House Finace. This bill was approved by House Public Utilities this week, and re-referred to House Finance.
H 1701 - Rep. Jennifer Weiss (D-Wake) - To establish the North Carolina Sustainable Communities Task Force - House Appropriations.
H 1717 - Rep. Ray Warren (D-Pitt) - An act to modernize the North Carolina Alcoholic Beverage Control System - House State Personnel/State Government. This bill was approved by House Alcohol Beverage Control this week and referred to House State Personnel/State Government. It is scheduled for a committee hearing on Tuesday June 15.
H 1747 - Rep. Jim Crawford (D-Granville) - To require a local government that provides public water service to revise its local water supply plan to address foreseeable future water needs when eighty percent of the water system’s available water has been allocated or when seasonal demand exceeds ninety percent - House Environment. This bill was approved by the House Water Resources committee and was sent to House Environment.
H 1765 - Rep. Pryor Gibson (D-Anson) - To authorize the Department of Environment and Natural Resources to use injunctive relief to ensure compliance with interbasin transfer laws and to provide that an applicant for an interbasin transfer certificate shall pay the costs associated with all required public hearings - House Finance. The House Environment committee approved this bill and it was re-referred to House Finance.
H 1771 - Rep. Kelly Alexander (D-Mecklenburg) - To authorize local governments to make special assessment levy surcharges to water rates, and levy property taxes to fund the installation of water conservation systems - House Finance.
H 1866 - Rep. Becky Carney (D-Mecklenburg) - To strengthen the regulation of the towing of vehicles from private lots in Mecklenburg County - House Local Government II.
H 1906 - Rep. Garland Peirce (D-Scotland) - To direct the Department of Commerce to work with local governments to convene and organize Regional Economic Recovery Housing Alliances - House Commerce.
H 1919 - Rep. Jim Gulley - To authorize the Town of Matthews to participate in public-private projects outside the downtown area - House Finance. The House Local Government I committee approved this legislation this week and it was re-referred to House Finance.
H 2026 - Rep. Hugh Holliman (D-Davidson) - To Establish the North Carolina Mobility Fund within the North Carolina Highway Trust Fund - House Rules.
H 2055 - Rep. Bob England (D-Rutherford) - To provide that a local government that has been submitting premium payments to the State Health Plan is not liable for contributions to the State Retirement System - House Insurance.
S 1112 - Sen. Don Vaughan (D-Guilford) - An act to modernize the North Carolina Alcoholic Beverage Control System - Senate Judiciary II.
S 1136 - Sen. Bob Rucho (D-Mecklenburg) - To strengthen the regulation of the towing of vehicles from private lots in Mecklenburg County - Senate Transportation.
S 1169 - Sen. Dan Clodfelter (D-Mecklenburg) - To authorize the Department of Environment and Natural Resources to use injunctive relief to ensure compliance with interbasin transfer laws and to provide that an applicant for an interbasin transfer certificate shall pay the costs associated with all required public hearings - Senate Environment.
S 1212 - Sen. Dan Clodfelter - To repeal the Local Government Other Post-Employment Benefits (OPEB) Fund and to allow each unit of local government to establish a separate OPEB trust fund that may then be invested by the Department of State Treasurer - House Pensions and Retirement.
S 1292 - Sen. David Hoyle - To require a local government that provides public water service to revise its local water supply plan to address foreseeable future water needs when eighty percent of the water system’s available water has been allocated or when seasonal demand exceeds ninety percent - House Water Resources.
S 1295 - Sen. Bob Rucho - To authorize the Town of Matthews to participate in public-private projects outside the downtown area - Senate Finance.
S 1297 - Sen. Ed Jones (D-Halifax) - To direct the Department of Commerce to work with local governments to convene and organize Regional Economic Recovery Housing Alliances - Senate Commerce.
S 1325 - Sen. Margaret Dickson (D-Cumberland) - To modify the Inventory Property Tax Deferral - Senate Finance.
S 1333 - Sen. Floyd McKissick (D-Durham) - To establish the North Carolina Sustainable Communities Task Force - Senate Appropriations.
S 1348 - Sen. Don East (R-Surry) - To give counties temporary flexibility to use school construction funds generated from the NC Education Lottery for any education purpose - Senate Appropriations.
S 1382 - Sen. Dan Clodfelter - To make various changes to the way the Judicial Department may pay expenses - Senate Judiciary I.
S 1423 - Sen. Debbie Clary (R-Rutherford) - To provide that a local government that has been submitting premium payments to the State Health Plan is not liable for contributions to the State Retirement System - Senate Pensions and Retirement.
Old
H 402 - Rep. Martha Alexander (D-Mecklenburg) - To eliminate the requirement of an elected official recommendation for notary public applicants - Senate State and Local Government.
H 524 - Rep. Paul Luebke (D-Durham) - To modify the annexation statutes - House Finance.
H 649 - Rep. Susan Fisher (D-Buncombe) - To permit disclosure of certain tax information of local governments to the State Treasurer - Senate Clerk’s Office.
H 666 - Rep. Martha Alexander (D-Mecklenburg) - To clarify that DWI Treatment Courts are a type of Drug Treatment Court - Senate Judiciary I.
H 699 - Rep. Marian McLawhorn (D-Pitt) - To authorize all local government to give annual notice to chronic violators of their public nuisance ordinances - Senate Clerk’s Office.
H 813 - Rep. Rick Glazier (D-Cumberland) - Uniform Apportionment of Tort Responsibility - Senate Judiciary I.
H 1134 - Rep. William Wainwright (D-Craven) - The Open Government Act - Senate Judiciary I.
H 1353 - Rep. Pricey Harrison (D-Guilford) - To prohibit local ordinances that restrict the use of clotheslines - Senate Commerce.
H 1476 - Rep. Rick Glazier (D-Cumberland) - To clarify when a claimant against an entity protected by governmental immunity has an adequate remedy at law - Senate Judiciary I.
S 117 - Sen. David Hoyle (D-Gaston) - To clarify that a local government may not impose a moratorium on development approvals for the purpose of developing and adopting a new or revised development ordinance - House Commerce.