Government Affairs Update: NC Finance Officers Association Meeting Highlights
"Explore key updates from the N.C. Government Finance Officers Association's summer 2012 meeting, covering legislative hot topics, state budget impacts on counties, education reforms, and health and human services additions."
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Presentation Transcript
N.C. Government Finance Officers Association Summer 2012 Meeting Government Relations Update Rebecca Troutman, NCACC IGR Director
Budget & BeyondLegislative Hot Topics for Counties Looking Back State Budget Human Services Flexibility County Broadband Grants Contingency Fee Audits Fracking LME Governance Court Cases of Interest Looking Ahead NCACC Legislative Goals Statewide Tax Reform 2013 Tax Rate Survey
State Budget Impacts to Counties H950 & S187
State Budget H950 Overall $20.2 B total $230 M > 2012-13 certified No new taxes, fees; increase per over- collections, reversions, special fund balances Year-end general fund base revenue growth at 6.2 % declines to 4.3% in 2012-13 Most excess dollars to Medicaid 1.2% salary increase & 1% retiree COLA UNC opt for defined contribution S187 Tech Amend adds 5 days leave
H950 Education Impacts Sets county lottery funds at $100M Allocates per pupil Statutory allocation if any overage Increases K-12 funding by $143.2 M to reduce flexibility cut to $360 M total 1.2% teacher salary increase no flexibility in use Includes some components of Senate s Excellent Public Schools
H950 Education Reforms Reading literacy concentration No automatic promotion Must read at grade level in 3td grade or retained Schools must publish literacy success/failure & A-F grades NC Teacher Corps In lieu of Teaching Fellows Recruit & place college grads & mid-career
H950 Health & Human Services Adds $9 M for local psych bed additions & expands capacity in Broughton & Cherry Cuts community mental health by $20 M nr Adds $4.9 M nr for county health depts. for health & wellness activities New $ contingent on Medicaid funding sufficiency Budgets $4.4 M for guardianship transition
H950 Health & Human Services Federal policy issues regarding adult care homes Personal care services & State/County Special Asst institutional rates create institutional bias Certain adult care home pops w/ 50%+ mentally ill lose Medicaid funding; need to transition to community housing
H950 Health & Human Services Creates Transitions to Community Living Fund $50 M to transition mentally ill to community & backfill (temporarily) loss of PCS Medicaid funds to adult care homes Implement 1915 I waiver for special care units only
H950 Health & Human Services Restructures State/County Special Asst. In-Home program, effective Feb. 15, 2013 All counties must participate (9 do not) All counties must maintain 2011-12 approps in 2012-13 All counties must maintain filled slots or fill vacant slots In-home rate = adult care home rate No new county service $; case mgt $ may be needed
H950 Health & Human Services Directs NC-DHHS to develop & issue RFP for non-emergency Medicaid transportation Dept must study impacts on human services transportation system prior to RFP
H950 Natural & Economic Resources Staffs Mining & Energy Commission Restores DENR regional offices Funds Clean Water & Drinking Water Clean Water Trust Fund appropriations reduced to $10.8 M & made nr
H950 General Government & Transportation No add. funds to draw down federal HAVA Does require vendor maintenance certification of county tech. staff DoT to prioritize paving unpaved roads Provides personnel for combined vehicle registration/property tax system S187 delays new/increased ferry tolls 1 yr Caps gas tax for 1 yr
Local Human Services Administration (H438) Key Elements: Provides option to all boards of commissioners to restructure human services Under BOC or create consolidated human services board Current law only permits counties with pops. >425,000 to restructure Advisory health board req d if no consolidated HS board BOC to consolidate health or DSS or both No mental health, public health authority or hospital
Local Human Services Administration (H438) BOC may consolidate health or DSS agency or both Under manager s supervision Employees under SPA or not To receive fed. & state funds, as of 7/1/14, counties must: Maintain county health AV funding at 2011 levels Have health depts accredited (current req.) Creates incentives for regionalism
County Broadband Grants (S572) Key Elements: Authorizes any county to enter public/private partnerships for broadband investments Grants to expand service to unserved areas Only to qualified providers & via public notice Counties can only use unrestricted general fund revenue for grants
Contingency Fee Audits (H462 & S847) Key Elements: Prohibits contingency fee contracts for 2 years, beginning July 2013 Prohibition sunsets July 2015 Legislative leadership agrees to study audits Scope, use, impacts, problems Flat fee, hourly fee audits continue
LME Governance (S181) Key Elements: Limits area board size 11-21 by 10/2013 Prescribes 10 board categories Consumer/family, expertise in managed care organizations across legal, financial, and services disciplines Composition to represent participating counties Boards of county commissioners make appts. LMEs >= 1.25 M pop flexibility for board size/compensation
LME Governance (S181) Key Elements: Area board members subject to attendance, training requirements Single county authorities no longer under county financial control Counties precluded from leaving LME for 2 yrs, pending DHHS rules Assigns public guardianship solely to county DSS Transition funding in budget Study via tech corrections
Fracking (S820) Key Elements: Creates Mining & Energy Commission 1 voting county member apptd by President Pro Tem Charged with developing regulatory program for oil & gas exploration Authorizes fracking but no permits pending subsequent legislative action NCACC, NCLM & NER develop recs re local regulations Set backs, placement, light & noise restrictions Can t have effect of prohibiting fracking
Other Legislative Issues of Interest H925 Annexation Reform Result of Litigation Replaces petition process with referendum by registered voters in the to-be-annexed area H5 Local Deannexations County Zoning Fix: H1169 Allows a County, by ordinance, to reinstate zoning prior to the annexation
Other Legislative Issues of Interest Sweepstakes H1180 (not enacted) Counties have no express authority to assess privilege licenses or other fees Supreme Ct. to rule Pretrial Release S756 (not enacted) Proposed waiting period before PR/arrestee contact Justice Reinvestment Act $21 M fund; $3.9 M spent
Court Cases of County Interest
Charter Schools Sugar Creek Charter School v. Nash County (Sugar Creek II) Supreme Court denied Petition for Discretionary Review COA decision stands Current statutory provisions preclude charter schools from seeking capital funds
Penalties/Forfeitures Richmond County Board of Education v. Janet Cowell, et. al. Complaint for Declaratory Judgment Challenges $50 improper equipment fee going to SMCF as cost of criminal action Asks court to declare penalty and redirect to school board
Williams v. Pasquotank May 3, 2011 COA unanimous opinion - when considering whether governmental immunity applies to a function of government, the task being performed is proprietary and private when any corporation, individual, or group of individuals could do the same thing. Supreme Court arguments - awaiting decision from Supreme Court
NCACC Legislative Goals All counties asked to submit goals thru Sept. 17 NCGFOA to brainstorm needs Goals vetted by NCACC steering committee, legislative goals committee, NCACC board of directors, all counties via NCACC Legislative Goals Conference
NCACC Legislative Goals Process (Adopted Goals Remain in Place for 2-Yr. Biennial Session) Goals Referred to Legislative Goals Comm. Goals Referred to Steering Committee Legis. Goals Comm. Considers & Recommends Steering Comms. Consider & Recommend Counties Submit Pro- posed Goals July - Sept Sept - Oct Nov Goals Referred to Board of Directors Delegates Approve Goals at Legis Goals Conference Board Considers & Approves Goals New Boards Take Office, Consider & Select Delegates Goals Referred to Member County Boards Dec Dec Jan 2013 General Assembly Convenes Jan. 2013
2013 Statewide Tax Reform Legislative commitment to reform NC tax structure Legislative leaders invite proposals for property tax reform, sales tax reform Conversation may include shift of responsibilities, authority
A Challenge for Counties Preparing for the 2013-14 Legislative Session 6 number of open Senate seats created by redistricting 9 number of Senators retiring, primary loss 12 number of Legislators seeking higher office 14 number of open House seats created by redistricting 24 number of Representatives retiring, primary loss 42 number of new faces in 2011-12 ~50 total number of potential new faces for 2013-14 Retirees include Owens, Justice, Stevens, Hackney, Brubaker, McGee, Folwell, Garrou, Purcell
2012-13 County Tax Rate Survey Rate Changes $0.0352 ($0.0117) $0.0600 ($0.0300) Rates $0.6208 Sales Assess 104.5% Effective $0.6396 Avg Avg increase Avg decrease High Low $1.0300 $0.2790 142.4% 88.1% $1.1418 $0.0000 Summary of Actions Increases = Decreases = No change = Interim = SA above 100% Total = Max = Total >110% = Total >115% = 11 15 73 1 100 67 1.42 16 11
Questions / Comments Thank You!
