2007 Congressional Issues for Counties

Prohibit Requiring County Financial Participation in Medicaid
Support legislation introduced by Congressman G.K. Butterfield, H.R. 326 - Medicaid County Protection Act of 2007, which requires a state to fund the non-federal share of Medicaid costs. North Carolina requires its counties to fund 15% of the non-federal share of all Medicaid services costs, totaling over $517 million in 2007-08.

Support Remote Sales Tax Collection
Support legislation to authorize states who participate in the interstate sales tax compact to require remote sellers to collect existing state and local sales taxes. North Carolina sales tax losses from untaxed Internet sales are projected to approach $1 billion by 2008.

Fully Fund Federal Payment in Lieu of Taxes (PILT)
Support legislation to fully fund PILT at authorized levels - authorized funding is estimated at $344 million with $233 million actually appropriated. North Carolina counties are due $3.78 million in PILT but only receive $2.5 million.

Overturn CMS Rule Change Redefining Public Hospitals
Support legislation to overturn the Centers for Medicare & Medicaid Services (CMS) 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 and will lose $320 million in federal Medicaid funds.

Restore Federal Match for Child Support Incentives
Support legislation to restore the federal child support funding stream for incentives payments. North Carolina counties lose $6 million in federal support to offset $25 million in county child support administrative expenses.

Repeal Government Contractor Reporting & Withholding
Support legislation to repeal the reporting of vendor payments and the 3% government contractor withholding requirement for counties whose expenditures exceed $100 million beginning 1/1/2011 (Section 511 of P.L. 109-222). H.R. 1023 would repeal the withholding requirement.