Notable Activity
The General Assembly is slated to return next week to take up a myriad of issues, though details of what they’ll work on, and for how long, are still uncertain. As a result, we’ll cover a range of topics that may move and what their implications may be for counties.
Regulatory Reform
Every year, the General Assembly works to pass a bill with various reforms to state regulatory processes, often with little to nothing in common among the various changes. This year’s version, House Bill 926 – Regulatory Reform Act of 2025, follows the same trend. NCACC has concerns about a provision in the bill that would prohibit waiting periods for developers who refile applications immediately after withdrawing the application or receiving a denial. Local governments need tools to ensure that applicants file complete and accurate information for applications and do not waste staff time by resubmitting incomplete applications.
Helene Recovery
A joint commission on western North Carolina recovery will meet next Wednesday to continue their hearings on how recovery progresses post-Helene. North Carolina Treasurer Brad Briner, government staff from western North Carolina, and an unnamed nonprofit involved in recovery will testify instead. The meeting is expected to focus on information sharing and is not likely to directly address any new funding or legislation to help recovery efforts.
House Bill 118 — Disabled Veterans Tax Relief Bill
Property tax relief continues to be a hot topic this legislative session. House Bill 118 – Disabled Veterans Tax Relief is a good example of the legislation resulting from those concerns, and NCACC has heard it has support to move forward. We continue to educate lawmakers about the detrimental effect the bill will have on county budgets, especially those with large veteran populations, and are calling for state funds to replace any lost property tax revenue because of changes in the property tax structure. NCACC and all our counties support veterans, but counties rely on those property tax revenues to provide services to their citizens, including veterans.
Medicaid Funding
The North Carolina Department of Health and Human Services (NCDHHS) released a letter in early August identifying a $300+ million funding shortfall for Medicaid expenses (called rebase). If left unaddressed, it would lead to the NCDHHS cutting reimbursement rates to all participating Medicaid providers by 3% (up to 8-10% for select providers), and the elimination of some Medicaid-eligible services. Legislative negotiations are still ongoing, so it is uncertain whether Medicaid rebase will be fully or partially funded.
Legislators have until October 1 to appropriate the full funds or allocate partial funds to delay and reduce the total rate reduction outlined by the NCDHHS. Should those reductions go into effect, local health departments and local education agencies (LEAs) will receive the 3% provider cut. LEAs often enroll with Medicaid to provide services such as audiology, speech/language therapy, counseling, and physical therapy.