FOOD FOR THOUGHT

“We’ve got to do it before we leave,” – Senate President Pro Tem Marc Basnight (Dare) on relieving counties of the Medicaid burden (The Associated Press – June 3).

MEDICAID RELIEF DRIVES BUDGET TALKS

Legislative leaders remain committed to county Medicaid relief and have acknowledged that little can be done to settle differences between House and Senate budget proposals until the county Medicaid relief crisis is resolved. The Association’s executive officers, led by President Terry Garrison of Vance County, met with General Assembly leaders June 6 to advocate for Medicaid relief and received assurances that a compromise proposal for permanent Medicaid relief is forthcoming.

SENATE BUDGET: WHAT COUNTIES NEED TO KNOW

As mentioned in Legislative Bulletin #07-19, the Senate stated intent to completely and permanently relieve counties of Medicaid in its budget proposal, and House and Senate leaders are negotiating an exact plan for relief. In addition to Medicaid relief, major differences include whether or not to allow temporary sales and income tax rate increases to sunset, and capital funding. Among items that impact counties:

• Lottery proceeds for school construction. The Senate changes the allocation for operating funds, increasing the allocation for More at Four and lowering the allocation for reduced class size. This change will provide More at Four with the amount of funds expected – yet unrealized – in this year’s lottery revenues. The Senate appropriates an additional $37.5 million to offset the loss in classroom size reduction. Additionally, the Senate concurs with a special provision (Sec. 5.2) that authorizes the state’s budget director to decide which of the four permissible categories would receive any revenues in excess of the appropriation. The Senate concurs with the House in appropriating $350 million of anticipated lottery proceeds to education, with $140 million set aside for school construction. This is lower than the appropriated amounts of $425 million and $170 million for 2006-07, reflecting revised (and lower) sales estimates.
• Funding for courts. The Senate increases court fees by $37 million to fund more than 550 new court positions and provide recurring dollars for court technology.
• Funding for courthouse telephone systems. A special provision (Sec. 14.16) would require counties to fund the systems out of facilities fees. To free up recurring dollars and to ensure greater program oversight, the Senate substitutes non-recurring dollars for recurring in a number of programs, and requires a “continuation review,” to be led by the Appropriations Committee during off-session meetings (Sec. 6.21). Of concern to counties are the Criminal Justice Partnership and Juvenile Crime Prevention programs.
• Funding for the regional councils of governments: COG funding would be made non-recurring and reduced 5 percent.

Senate and House budget conferees – comprised of almost all Democrats in both chambers – began meeting June 7 in appropriations subcommittees on Education, Health and Human Services, Natural and Economic Resources, Justice and Public Safety, and General Government, to review spending differences between the House and Senate budget proposals. While today was an information session, subcommittees will reportedly begin in earnest to resolve line item changes beginning June 12. An in-depth analysis of the Senate budget is available online at www.ncacc.org/senatebudget_060707.html.

SOLID WASTE BILL NEGOTIATIONS ONGOING

Local government, business and state agency representatives continue to negotiate S1492, the “Solid Waste Management Act of 2007.” The working group, scheduled to meet again June 7, continues to discuss multiple proposals – a $2.50 per ton tax on solid waste disposal, double liners in sanitary landfills, an increase in permit fees, clarification of circumstances under which a permit may be denied, expanding the scope of environmental compliance review requirements – that would greatly impact counties’ ability to site and operate landfills. The bill is expected to be heard in the Agriculture/Environment/Natural Resources Committee within the next couple of weeks before moving on to Senate Finance.

BILLS OF INTEREST

The Association has created a section on its Web site to track bills of interest to county officials. Visit www.ncacc.org/legislation/about.html for updates on key legislation, including the bills listed below.