FOOD FOR THOUGHT

Here’s a report card your parents wouldn’t be too thrilled with: The American Society of Civil Engineers graded North Carolina in nine subjects in its 2009 update to its Report Card for America's Infrastructure, and the state’s grades ranged from a B-minus in drinking water infrastructure to a D-minus in roads. Schools and storm water infrastructure each received C-minus grades; wastewater fared a little better with a C-plus. Overall, the state graded out with a C-minus. Condition and capacity factor into the grades, which are cause for concern given the state’s projected boom in population over the next couple of decades. Everyone’s homework assignment, of course, is to figure out how to pay for new infrastructure and renovations. At the county level, revenue sources such as local option sales taxes, impact fees and real estate transfer taxes could be part of the solution.

THE EYE OF THE STORM

Activity in the Legislature slowed on one front this week and picked up on another. The House deadline for public bills passed last Wednesday, slowing the introduction of new bills to a crawl. The House deadline for appropriations and finance bills is April 22, so bills will continue to trickle in, but the flurry of bill activity that marked recent weeks is largely over. As filings slowed, activity in committees picked up. House Appropriations subcommittees have begun reviewing the Senate’s budget but have yet to receive spending targets from House leaders. The House is waiting for the final April tax return numbers are so it will have a better grasp on the expected revenues for the biennium before issuing any spending targets.

BILL TO GIVE LME AUTHORITY TO STATE IS DISPLACED

The House Mental Health Reform Committee on Wednesday displaced H1188, Improve LME Accountability, an agency bill that would restructure local mental health director approval and board appointments. Specifically, the bill would authorize the DHHS Secretary to approve any local mental health director’s appointment – in county programs and area authorities. Currently, single-county program directors are appointed by the county manager, multi-county program directors are appointed via an interlocal agreement with the participating counties, and area directors are appointed by the area authority board, subject to the approval of the boards of county commissioners within the area program.  H1188 would also allow the governor to appoint one-third of the members of the area authority board, including that of a single-county area authority. Currently, the board of county commissioners appoints the single-county authority board, with multi-county boards having one commissioner from each participating county, and those members appointing the other members. Per H1188, the governor would make all appointments for vacancies occurring after July 1, 2009, until these appointees represent one-third of board members.

ELECTIONS GOVERNANCE BILLS POP UP

Two bills that would impact how elections are governed have been introduced in recent weeks. H1281, Election Director Oversight, is sponsored by Reps. Melanie Goodwin (Montgomery) and Alice Graham Underhill (Craven). It specifies that local elections directors shall “comply with all orders of the State Board and all directives issued by the Executive Director under G.S. 163‑132.4.” H1421, Election Amendments, sponsored by Rep. William Wainwright (Craven), transfers to counties the responsibility for annually maintaining the warranty of its voting equipment and for coding its voting machines. It also requires county boards of election to receive approval from the state Board of Elections before repairing or replacing any voting equipment. Currently, the State Board of Elections is responsible for ballot coding.

THE WAITING IS THE HARDEST PART

Sen. Dan Clodfelter (Mecklenburg) has long been a proponent of modifying the state’s tax structure to make it more accurately reflect a 21st century economy. The current economic recession has apparently made some of his colleagues more interested in the concept as well. When the Senate passed its version of the budget last week, it had a gap of approximately $500 million that needed to be filled with new revenues. Typically, the Senate would have passed its finance package prior to adopting its budget, but unusual times call for unusual actions. Several reports have surfaced that the Senate is considering a proposal to raise the additional $500 million in revenue by making significant changes to the state’s tax structure that would impact personal income taxes, corporate taxes and the sales tax. The state has long examined the possibility of broadening the sales tax base to include more services, which would enable an overall lowering of the rate. Initially, the Senate was expected to have unveiled its package this week, but nothing has emerged as of yet. Anticipation – and hype – are building. Newspaper editorial boards across the state are weighing in on the prospect of overhauling the state’s taxation system, and the Institute for Emerging Issues at N.C. State University, led by former Governor Jim Hunt, released its own report earlier this week urging a modernization of the state’s tax system. The Association is monitoring the issue to make sure that county sales taxes and other local revenues are not impacted negatively by any modernization effort.

TRANSPORTATION FUNDING BILL GETS A BOOST

The House Finance Committee approved a transportation funding bill Wednesday that would give every county in the state, except Mecklenburg, the option to levy either a half-cent or quarter-cent sales tax for transportation – if voters approve in a referendum. H148, Congestion Relief/Intermodal Transport Fund, is sponsored by Reps. Becky Carney (Mecklenburg), Deborah Ross (Wake), Bill McGee (Forsyth) and Lucy Allen (Franklin). Forsyth, Guilford, Wake, Durham and Orange counties would be given the option for a half-cent sales tax for transportation, similar to the one already in Mecklenburg County. The other 94 counties would be given the option for a quarter-cent sales tax for transportation, provided that the county or at least one municipality within the county operates a public transportation system. Only local governments that operate public transportation systems can receive revenue from the sales tax, which is divvied up on a per capita basis amongst all qualifying local governments in a county.

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.