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Budget season at the General Assembly continues to heat up as Governor Cooper released his proposed two-year spending plan this week. The base budget is roughly $27.5 billion for the next two years. Governor Cooper’s plan raises spending to just under $33 billion in 2023-24 and just over $34 billion in 2024-25. The governor's budget priorities assume Medicaid expansion occurs this year and includes increased salaries for teachers, school administrators, and state employees, as well as investments in workforce development, economic development, physical and mental health, and enhancing public safety and violent crime prevention.
Other highlights of the governor’s proposal include:
- Average teacher raises of 18% over two years and various other retention and recruitment efforts for teachers, as well as salary increases for other school employees.
- 8% cost-of-living increases over two years for all state employees, as well as various other bonuses and other retention and recruitment efforts.
- $1 billion for construction and renovation of public school facilities via the State Capital and Infrastructure Fund, in addition to lottery funding directed for school capital.
- $200 million for community college repairs and renovations and an additional $100 million for capital and equipment.
- $4.5 billion dollars in public education spending to fully fund the Comprehensive Remedial Plan (also known as the Leandro Plan).
- $50 million for school safety grants.
- $554 million to meet workforce needs through various workforce development and training programs.
- $1.4 billion for mental health services throughout the state.
- $325 million for various projects and programs to spur economic growth.
- $160 million for affordable housing programs.
- $99 million for hurricanes and natural disasters recovery.
- Leaves nearly $7 billion in state reserves and does not raise taxes.
Governor Cooper’s full spending plan, highlights, and other data can be found here.
House and Senate leaders have agreed on the amount the General Assembly plans to spend over the next two years, announcing a 6.5% budget increase to $29.7 billion this year and then another 3.75% increase to $30.8 billion next year. General Assembly leadership has indicated it is their hope that the House passes its budget in early April, with the Senate approving its own budget in May before a compromise budget is approved and sent to Governor Cooper sometime in June ahead of the start of the new fiscal year July 1, 2023.
Medicaid expansion continues to inch closer to the finish line of becoming law. This week, House Bill 76 Access to Health Care Options passed the Senate and now returns to the House for a concurrence vote with Senate changes. The bill includes appropriations to aid counties in preparing for and implementing expansion including:
- $4 million to counties to prepare to implement Medicaid expansion
- $1.667 million per month for each month that Medicaid expansion is effective for fiscal years 2022-2024
- $29.6 million for fiscal year 2024-2025
- $31.2 million for fiscal year 2025-2026
A $50 million appropriation for eligibility determinations and inmate medical care that was included in the version of the bill that passed the House was not included in the version passed by the Senate, but additional funds are likely to be a part of continued negotiations. The legislation also contains provisions aimed at reducing the administrative burden of county departments of social services through increased automation for re-determinations and new applications in NC FAST as well as in the federally facilitated marketplace.
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Senate Bill 317 Addressing the Workforce Housing Crisis - Creates workforce housing developments and, except as provided in the legislation, prohibits a local government from implementing or enforcing a zoning regulation, including development standards regulating lot widths, setbacks, density, or building design elements, for workforce housing developments.
To qualify as a workforce housing development, a development must meet the following criteria:
- Be at least 10 acres.
- No fewer than 20% of the lots will be one- and two- family dwellings and conveyed as workforce housing improved lots.
- At least 50% of the workforce housing improved lots in the development will be conveyed to owner-occupants that qualify for lender financing based upon an income amount that does not exceed 80% of the most recently published area median income (AMI), as provided by the federal Department of Housing and Urban Development. The remaining workforce housing improved lots may be conveyed to owner-occupants that qualify for lender financing based upon an income amount that does not exceed 100% of the most recently published AMI.
- Workforce housing improved lots will be conveyed subject to the following:
- The owner-occupant moves into the dwelling within 60 days.
- The owner-occupant will maintain the dwelling as the principal residence for at least a majority of a calendar year after moving into the dwelling.
- The lot will be used solely for single family residential purposes, as defined in the legislation.
The bill provides that, unless geographically impossible, a local government may require that a workforce housing development provide and maintain a vegetative buffer zone not exceeding 20 feet in width, including existing trees and shrubs, along the perimeter of the development between development and any adjoining properties. However, a local government may not impose any type of vegetation requirement, including the removal, preservation, or use of trees and shrubs, in any area of the workforce housing development beyond the vegetative buffer described above.
The bill also allows a local government to restrict the issuance of certificates of occupancy for the development to ensure that the workforce housing improved lots are constructed in a ratio roughly proportional to the other lots in the development.
The draft legislation also requires that a local government receiving a permit application submitted pursuant to this legislation be approved or denied the application within 45 days of receipt. During the initial 45-day period, the local government must communicate with the applicant to resolve questions and issues with the application. If the local government requests additional information or requires that the application be resubmitted with changes, the local government shall review the requested information or resubmitted application and issue an approval or denial within 15 days from the receipt of the requested information or resubmitted application. If the local government does not issue a written approval or denial within 60 days of the initial application submission, the application shall be deemed approved.
The bill also prohibits local governments from imposing impact fees or water or wastewater system development fees on workforce housing improved lots (the at least 20% as referenced above).
House Bill 409 Regulation of Accessory Dwelling Units - Requires local governments to allow the development of at least one accessory dwelling unit for each single-family dwelling in areas zoned for residential use that allows for development of detached single-family dwellings.
Please forward these pieces of legislation to your county manager and planning department for review. Thoughts, concerns, and suggestions for improvement can be sent to NCACC Legislative Counsel, Adam Pridemore, at adam.pridemore@ncacc.org.
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National Opioid Settlement Updates
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Counties Continue to Sign On to Receive Second Wave of National Opioid Settlement Funds Ahead of April Deadline
Counties across North Carolina continue to sign on to receive funds from a new wave of recently announced opioid litigation settlements with CVS, Walgreens, Walmart, Allergan, and Teva. The NC Department of Justice announced these five new national opioid settlements last month, and the funds will total an additional $600 million to North Carolina state and local governments. This is in addition to the first round of settlements, which resulted in $750 million being distributed to the state and local governments – with 85 percent going to local governments.
The distribution formula will mirror the original NC Memorandum of Agreement allocation model counties signed in 2021. To receive the settlement funds, counties need to take the following actions:
- Each board of county commissioners must approve a resolution (sample available here) joining the settlements. Approving the resolution will authorize county staff to sign the settlement paperwork.
- County staff need to sign all five settlements and the Supplemental Agreement for Additional Funds (SAAF). Docu-sign links will be provided to county staff (manager or attorney) to sign the agreements. Counties have until April 18 to join and sign the settlement agreements.
We're more than half way there!
More than 50 counties have signed on to the wave two agreements so far. To see a map of counties that have signed on, along with materials and resources, visit www.ncacc.org/opioidsettlement. Resources are also available at www.morepowerfulnc.org/opioid-settlement/wave-two-settlements/. For more information and additional support, send a message to opioidsettlement@ncacc.org.
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March 27 'Opioid Strategies' Webinar Focuses on Early Intervention Programs
The NCACC and NC Department of Health and Human Services are co-hosting a series of webinars on evidence-based, high-impact strategies that local governments may pursue to address the opioid overdose epidemic utilizing funds from the national litigation settlement.
Registration is available for the March 27 session (3 – 4:30 p.m.), which will overview early intervention programs.
The most recent session, held February 27, provided an overview of reentry programs. The session will soon be added to the library of on-demand webinars from the “Strategies to Address the Opioid Epidemic” series available at ncopioidsettlement.org.
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Apply Now: CDC Overdose Data to Action Funding
On March 7, 2023, the Centers for Disease Control and Prevention (CDC) National Center for Injury Prevention and Control (NCIPC) announced a new Notice of Funding Opportunity (NOFO) for drug overdose surveillance and prevention efforts. This funding opportunity, designed specifically for localities and territories, will help ensure broad resources and support to combat the evolving overdose crisis at all levels of government. This award will support a 5-year cooperative agreement to expand and strengthen overdose surveillance and prevention efforts to reduce fatal and non-fatal overdoses involving opioids and/or stimulants and polysubstance use. Applications are due May 8, 2023. Visit CDC’s OD2A funding announcement webpage to access funding opportunities, webinar links and meeting passcodes, archived materials, and frequently asked questions.
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New Charging and Fueling Infrastructure Discretionary Grant Program
The Charging and Fueling Infrastructure Discretionary Grant Program (CFI) was created by the Bipartisan Infrastructure Law (BIL). This new $2.5 billion (over five years) program is intended to strategically deploy publicly-accessible electric vehicle charging and alternative fueling infrastructure in the places people live and work – urban and rural areas alike – in addition to along designated Alternative Fuel Corridors (AFCs). The overall CFI includes two funding categories: 1) Community Charging and Fueling Grants (Community Program); and 2) Alternative Fuel Corridor Grants (Corridor Program).
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Local Elected Leaders Academy Programs
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March 23 – When Differences of Opinion Escalate: Conflict Resolution Skills for Local Elected Officials
In this workshop, you will strengthen your ability to effectively manage conflict in a variety of settings by identifying when differences of opinion are about to escalate, add tools that help in deescalating conflicts, and practice five methods for conflict resolution.
May 12 – Use of Social Media for Local Elected Officials
The rules and practicalities of social media use for local elected officials can be confusing and confounding. In this 75-minute online class, you’ll learn about some bright lines of good and bad practices and improve your awareness of some of the murky areas around free speech.
May 16 – Working Together: Counties, School Boards, and Local Funding for Public Schools
This one-day course provides an overview of the governance and funding structures of public schools in North Carolina. It focuses particularly on the relationship between counties and local school administrative units.
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NOTE: When registering for LELA programming, use the code NCACC-SOG-LELA to receive the 20 percent county commissioner discount.
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Franklin County
The Franklin County Board of Commissioners presented five first responders with certificates of appreciation due to them using life-saving measures to save a man's life. Click here to read the county news release.
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Hoke County
NCACC Health and Human Services Steering Committee Chair and Hoke County Commissioner Allen Thomas spoke on a panel for the Medicaid Managed Care: Addressing Health Disparities & Improving Access to Health Care program. Click here for social media coverage.
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New Hanover County
The New Hanover County Board of Commissioners held a work session to discuss the development of a new five-year Strategic Plan for the county. Click here to read the county news release.
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NCACC is seeking information on new county programs and announcements to share. Please email communications@ncacc.org with your county’s news and to be included in the NCACC Weekly Update.
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Classifieds & Additional Items
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Visit the NCACC Job Board for County Career Opportunities
Visit www.NCACC.org/jobs to view the NCACC online jobs board to view current openings or post a job opportunity. North Carolina counties can post positions for a discounted rate and may upgrade their position to a premium job posting to have their listing included here in the Weekly Update.
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