Notable Activity
The Legislature reconvened this week for a flurry of activity across a variety of initiatives, from overriding vetoes issued by the governor to passing House Bill 125 — referred to as a “mini budget” — to update some state spending figures. Legislators admitted they are not sure when (or if) they’ll next meet to pass legislation, but have reserved dates each month through the end of the year in case they choose to reconvene to override additional gubernatorial vetoes or pass more policy or spending bills.
Vetoes
Republican majorities in both the House and Senate secured enough votes to override eight of Governor Stein’s vetoes. While six bills remain with their vetoes intact, the General Assembly has no deadline to try and override them, so there remains a chance the majorities in both chambers may revisit them later. Of the bills overridden, one has an indirect impact on county elected officials:
House Bill 193 – Firearm Law Revisions adds local elected officials to the list of individuals protected under offenses prohibiting assaults or threats against executive, legislative, or judicial officers, and increases penalties for such offenses.
Mini Budget
House Bill 125 – Continuing Budget Operations, referred to as a “mini budget,” makes adjustments to the previous year’s budget to keep state government operations functioning. Funding changes included:
Education
- Funds enrollment growth for community colleges and for the four universities that participate in the NC Promise Tuition Plan.
- Appropriates funds to continue capital projects within the UNC System.
- Approves scheduled salary step increases for state employees and public school personnel, per statutory pay schedules.
Health
- Reduces funding for LME/MCOs by $18.5 million recurring, while still requiring the same level of services as the previous fiscal year.
- Reduces funding on a one-time basis for the operations of the new County Administration Reimbursement System (CARS). These funds are not anticipated to be needed this fiscal year, as the system has yet to be implemented.
- Appropriates $600 million to North Carolina Department of Health and Human Services (NCDHHS), Division of Health Benefits, for Medicaid Rebase to account for changes in enrollment, services and capitation rates, federal match rates, and management contracts. Note: NCDHHS had estimated this need to be $820 million.
Other
- Appropriates $142 million for the Agricultural Disaster Crop Loss Program to address statewide agricultural disasters in 2024.
- Appropriates $118 million in non-recurring funds to the North Carolina Department of Commerce to support site acquisition and improvements for an airplane manufacturing facility in Guilford County.
- Funds the state auditor’s new Division of Accountability, Value, and Efficiency (DAVE), which will focus on increasing efficiencies in state government.
- Directs $100 million to the State Health Plan to address a $500 million shortfall.
- Funds the State Board of Elections to create seven new positions and to provide $1.5 million for litigation expenses.
- Funds 40 new full-time driver’s license examiner positions this year and another 21 next year. New Division of Motor Vehicles offices will be added in Brunswick County, Cabarrus County, Fuquay-Varina in Wake County, and Garland in Sampson County.
- Requires the Department of Public Instruction, the Department of Information Technology, and the Department of Environmental Quality to eliminate vacant positions to achieve budget reductions.
Other Budget Bills
Senate Bill 245 – Expand Remote Driver’s License Services made various changes to driver’s license law, but also received a last-minute amendment to add more state funding that was not included in the mini budget. Funding was as follows: $5 million for electronic filing software across the court system, $15 million for cybersecurity, $1.4 million to the State Bureau of Investigation, and $3 million for the State Highway Patrol. The bill passed only in the House and now must return to the Senate for approval.