The General Assembly was on legislative break this week, but lawmakers are expected to return to full agendas next week. In anticipation of their final push to end session by late June or early July, below are some of the larger topics that will likely take much of their time and energy.
State Budget
House and Senate leadership continue to state that negotiations between the chambers are progressing now that a loose framework has been agreed upon, though little detail has been released. While there seems to be consensus on larger spending priorities, details are still being worked out. Expect to see many local and statewide funding priorities included in the bill, and with the recent budget surplus announcement, legislators will have more funding to distribute than previously thought.
Property Taxes
Now that both the House and Senate have approved a constitutional amendment that would place a limit on property tax levies, a lingering question is whether the House will take up a property tax reappraisal mortarium championed by Senate leader Phil Berger that quickly passed out of the Senate. It is worth noting that just because both chambers agreed to support levy limits doesn’t mean they’ll both agree on this moratorium. Another bill to watch — Affordable Housing Exemption Modifications has moved over to the Senate, and its passage would bring financial relief to many counties that are being negative affected by the existing loophole.
Veto Overrides
Heading into session, the General Assembly had six gubernatorial vetoes on its agenda that the Republican supermajority was keen to override if it could get enough votes. Last week, the House found enough to override the veto on House Bill 87, which allows tax breaks for donating to private school scholarship funds. The Senate likely already has the votes necessary to follow suit and is expected to take up its own override soon. While five gubernatorial vetoes remain, it remains to be seen whether the House can convince enough members to commit to overriding any more.
Regulatory Reform
Every year, the General Assembly passes a bill comprised of various, often unrelated, changes to state regulations. Some of these reforms are requested by various state agencies, while others come from interest groups or are based off legislators’ own research and conversations with constituents. Oftentimes, those reforms can impact how counties provide services, direct growth, and plan for the future. This year’s bill has similar provisions — authorizing residential development in industrially zoned areas that may have been reserved for economic development, limiting local governments’ ability to interface with employers with union employees, and allowing by-right construction of accessory dwelling units on single- and multifamily properties.
Because regulatory reform bills are a combination of so many different changes, it is easy for additional provisions that could impact counties’ ability to do their work to be added to the legislation without advanced warning. NCACC will keep a close eye on any future changes, additions, or replacements that could be detrimental to local governments. This bill is one to watch until it either passes out of both chambers or lawmakers end session without its passage.
Legislation Filed This Week
None this week.