Memorandum
To: / Jennifer Roberts, Mecklenburg County CommissionersFrom: / Bill Scoggin, Chris Hollis and Daniel Baum
Date: / June 4, 2010
Re: / 2010 Short Session: Week Four Report
Overview
House Budget Approved
Early this morning, the House gave final approval for its version of an $18.9 billion spending plan. Deliberations began early Wednesday morning in the House Appropriations Committee, which heard amendments until Wednesday evening when the committee approved the bill and sent it to the House floor. On Thursday the House convened session at 10:00a and debated the budget until 5:00p, when the second vote was held. More than 30 amendments were considered during floor debate of which 19 were adopted. At 12:01a this morning, the House convened and quickly held the third and final vote to approve its budget, and then adjourned until next week.
The House's budget does not include new taxes or expand the existing tax base, but provides tax breaks for certain small businesses. State employees and school teachers will not received raises next fiscal year, along with the elimination of various positions throughout state government. The House (as with the Senate and the Governor) is counting on receiving an extension of the ARRA Medicaid formula that would provide $490 million in federal funds, even though the US House failed to include this provision in recently approved legislation. If the extension fails to pass, the conference committee will have to find a way to cover that gap.
As we mentioned last week, it is almost certain the Senate will vote to “not concur” with the House’s changes, and a conference committee will be appointed next week to negotiate a compromise. As currently projected, the conference committee is scheduled to meet for approximately three weeks (June 7- June 25) and both chambers will approve the negotiated compromise, known as a conference report, by June 29. We would all welcome this, but history does not indicate it will be this soon.
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 passed the Senate this week and was sent to the House where it was referred to House Finance.
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
As the House completed budget its final budget at 12:00am this morning, we have not been able to review it thoroughly, so this week’s update is based on a cursory review.
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
New
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 Judiciary III.
H 1691 - Rep. Roger West (R-Cherokee) - To modify the use of 911 funds - House Public Utilities. This bill is scheduled for a hearing in committee Tuesday June 8 and Wednesday June 9. We have received your comments and will work with the committee.
H 1701 - Rep. Jennifer Weiss (D-Wake) - To establish the North Carolina Sustainable Communities Task Force - House Appropriations. This bill passed the House Environment committee this week and was referred to House Appropriations.
H 1717 - Rep. Ray Warren (D-Pitt) - An act to modernize the North Carolina Alcoholic Beverage Control System - House Alcohol Beverage Control.
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 Water Resources and Infrastructure. This bill is scheduled for a hearing in committee Tuesday June 8.
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 Environment. This bill is scheduled for a hearing in committee Tuesday June 8.
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. This bill passed House Environment and was re-referred to 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 Local Government I.
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. This bill was approved by the Senate Finance committee, passed the Senate floor and was sent to the House.
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. This bill was amended and approved by the Senate Environment committee and passed the Senate floor. It is awaiting a committee referral in the House.
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 382 - Rep. William Wainwright (D-Craven) - To authorize the Division of Emergency management to develop a voluntary medical registration program - Senate Health Care. This bill is scheduled for a hearing in committee Wednesday June 9.
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.
S 269 - Sen. Dan Clodfelter (D-Mecklenburg) - To establish a pilot program of speed cameras in work and school zones - House Judiciary III.
S 354 - Sen. Ellie Kinnaird (D-Orange) - To direct DHHS to adopt a policy allowing a certain income disregard under the Medicaid program - House Appropriations. This bill was pulled from House Appropriations and re-referred to House Aging.
S 386 - Sen. Dan Clodfelter (D-Mecklenburg) - To facilitate fiscal planning by requiring counties and local school administrative units to report anticipated expenditures of the Public School Building Capital Fund - House Appropriations.
S 388 - Sen. Dan Clodfelter (D-Mecklenburg) - To clarify the collection of offender fines and fees - House Finance. This bill was amended in committee. It now removes certain ARRA grants from the definition of public funds for which a credit for investing in renewable energy property is not available. The Senate concurred with the House’s changes to this bill, and it was ratified and sent to the Governor.
S 871 - Sen. Dan Clodfelter (D-Mecklenburg) - To clarify the calculation of the Medicaid swap hold harmless - House Appropriations.
Other
The House budget includes a few provisions of interest:
Section 10.5 - Page 50 - Extends the administrative allowance for county Departments of Social Services.
Section 10.7 - Page 50 - Establishes term limits for county commissioners and county managers who serve on area mental health boards.
Section 10.17 - Page 55 - Eliminates state funding for child support offices, but authorizes the transfer of equipment to county governments.
Section 10.20 - Page 60 - Extends the reporting date/evaluation of consolidation of administrative functions of county Department of Social Services.
Section 14.6A - Page 106 - Clarifies the definitions of the Main Street Solutions Fund.
Section 28.7(a) - Page 130 - Establishes the NC Mobility Fund to fund transportation projects of statewide and regional significance that relieve congestion and enhance mobility across all modes of transportation.
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