2011 Congressional Issues for North Carolina Counties

Oppose Federal Budget Cuts to Counties without Corresponding Cuts in Federal Mandates
North Carolina counties recognize the tremendous financial pressures to reign in federal spending. Counties have also cut their budgets and programs significantly over the past two years to manage declining revenues, and have suffered state cost shifts and funding reductions as well. Congressional consideration of federal budget cuts should include a significant overhaul of program mandates and unnecessary regulations.

Support County Government Preference for Service Delivery
North Carolina counties are nationally known for sound fiscal management practices and strong professional oversight. Strict adherence to generally accepted accounting principles, regular financial and program audits, and proven experience in running federal and state programs efficiently and effectively position county governments as the preferred provider for delivering critical community services. As Congress begins debate over federal program and service reductions, it should also look to consolidating and streamlining local service administration and program delivery. Directing federal funding streams to be administered by a strong local government partner with a proven track record of service coordination would maximize taxpayer dollars for programs while lessening administrative costs and duplication.

Support Remote Sales Tax Collection
North Carolina and its counties, like most other states, are losing hundreds of millions of dollars annually in sales tax revenues through untaxed remote sales, principally through remote Internet sales. Per rulings by the U.S. Supreme Court, North Carolina cannot compel remote vendors to collect sales taxes on its behalf unless a company has a physical presence in the state – a nexus.

Untaxed remote sales also disadvantage local “main street” merchants who must charge and collect sales taxes while remote sellers are not required to do so. While opponents of remote sales tax collection unfairly decry “tax increase,” these revenues are already due and payable by law.

NCACC urges our congressional delegation to support legislation to authorize those states who comply with the Streamlined Sales Tax Project (SSTP) Agreement to require remote sellers to collect existing state and local sales taxes. The SSTP has streamlined sales tax administration and collections, dramatically lowering vendor compliance efforts and costs.

Oppose New EPA Ozone Standards for Primary and Secondary Designations
The EPA proposed new national ozone standards on January 6, 2010, to reduce the current primary ozone standard from .075 parts per million (ppm) to a level with the range of .06 ppm – .07 ppm. EPA also proposed establishing a separate secondary standard to protect in particular plants and trees. Since 2008, the EPA has twice reduced its ozone standards, making local area attainment increasingly difficult despite measured improvements in air quality. Loss of attainment of federal air quality standards endangers federal highway funds and subjects business and industry expansion to additional federal permitting requirements.

Oppose Federal Preemption of State Law Regulating Collective Bargaining of Public Employees
Past legislative efforts would mandate collective bargaining rights for public safety officers employed by states or local governments, thereby preempting existing state law that prohibits public employee collective bargaining. North Carolina county employees already enjoy strong due process in personnel matters, and federal intrusion in local decision-making is unwarranted. Federally mandated collective bargaining would increase operational costs for county governments, would create an adversarial relationship between management and employees, and would create two classes of employees – those in unions and those not in unions.