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2008 Congressional Issues
Support Remote Sales Tax Collection
North Carolina sales tax losses from untaxed Internet sales are projected to approach $1 billion in 2008. Congress should authorize states
that participate in the interstate sales tax compact to require remote sellers to collect existing state and local sales taxes. The compact has streamlined sales tax administration and collections, dramatically lowering vendor compliance efforts and costs.
Support Additional Federal Funding to Offset County Impacts of Federal Facilities and Land Holdings
- Fully Fund Impact Aid Program ($1.7 billion) and Revise Formula to Equalize Available Funding
The Impact Aid law, now Title VIII of the Elementary and Secondary Education Act of 1965 (ESEA), was authorized initially to offset school district revenue losses due to tax-exempt local federal property. The current impact aid formula has been modified throughout its history and no longer aligns federal funding with impacted student populations. Due to a questionable “heavy impact formulae,” eligible NC school districts receive only two-thirds of their expected allotment. Impact Aid is up for reauthorization.
- Fully Fund Federal Payment In Lieu Of Taxes (PILT) at Authorized Levels ($358 million)
The federal PILT program partially reimburses local governments for revenue losses attributable to tax-exempt federal lands. Congress appropriated $228 million in 2008 for PILT, a reduction from 2007 levels, after several years of increased funding. North Carolina counties should receive $3.8 million through a fully-funded PILT program, but appropriated levels only provide $2.5 million. Federal land holdings in North Carolina exceed that of nearly every other state east of the Mississippi River.
Overturn or Delay CMS Rule Change Redefining Public Hospitals
The Centers for Medicare & Medicaid Services (CMS) have initiated a rule change that redefines public hospitals to limit existing federal funding to wholly owned government hospitals; North Carolina public hospitals are largely owned and operated by public authorities. NC hospitals stand to lose $320 million in federal Medicaid funds when this redefinition becomes effective May 25, 2008. HR3533 and S2460 would delay its implementation.
Oppose Federal Preemption of State Law Regulating Collective Bargaining of Public Employees
In the fall of 2007, the U.S. House of Representatives passed HR980, which provides collective bargaining rights for public safety officers employed by states or local governments. N.C. county employees already enjoy strong due process in personnel matters - federal intrusion in local decision-making is unwarranted. S2123,
the companion bill to HR980, would preempt state collective bargaining law.
Increase Federal Funding for County Infrastructure Needs
North Carolina is experiencing unprecedented drought conditions, impacting economic competitiveness and health and safety. At the same time, explosive in-migration is rapidly increasing the K-12 student population, requiring new and renovated school facilities. Over the next five years, N.C. local governments face $8 billion in water and sewer needs, with counties facing $10 billion in school construction and renovation projects. HR2470 and S912 would increase federal support for school capital needs while encouraging greater private investment.
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