ncacc winter 2012 update
DESCRIPTION
Presentation, NC Association of County Commissioners Winter 2012 Legislative Update, presented at Winter 2012 NCLGBA Conference, 12/7/12TRANSCRIPT
N.C Local Government Budget AssociationDecember 7, 2012
NCACC Legislative Update
Johanna H. ReeseDirector of Government Relations
2012 Election Results
Executive Branch
• Gubernatorial party switch• Turnover throughout cabinet agencies• Large transition team at work• Relationship with legislature?• Council of State – little turnover
NC General Assembly
• House majority up by 9 to 77-43• Senate majority up by 2 to 33-17• Both chambers have veto-proof
majorities• House – 43 freshmen; 69 members
serving 1st or 2nd term• Senate – 14 freshmen; 30 members
serving 1st or 2nd term
NC General Assembly
• 578 years of legislative experience lost• Democrat minority in both chambers
predominantly African-American• 8 current or former county commissioners
won seats – 1 in Senate; 7 in House• 25 total former commissioners in GA
County Changes121 – New Commissioners
304 – Republican County Commissioners
270 – Democrat County Commissioners
6 – Unaffiliated County Commissioners
54 – Republican majority boards
44 – Democrat majority boards
2 – no majority
What This Means?
• New Relationships!• Get to know your legislators• NCACC outreach
• Lots of education!• County orientation for new legislators, new
state agency heads & administrators• New commissioners up to speed on critical
county issues
2012 Legislative Issues
Human ServicesConsolidation (H438)
• Provides option to all boards of commissioners to restructure human services– Under BOC or create consolidated human services
board• Advisory health board req’d if no consolidated HS board
• BOC to consolidate health or DSS or both– No mental health, public health authority or
hospital• Maintenance of effort for health approps.
Human ServicesConsolidation (H438)
• 5 counties to date initiated consolidation– Montgomery, Buncombe, Brunswick,
Edgecombe, Bladen• 6 counties pending SOG consultation• Others awaiting new commissioner
transitions
Adult Care Home Transition
• Federal policy issues regarding adult care homes– Personal care services & State/County
Special Asst institutional rates create institutional bias
– Certain adult care home pops w/ 50%+ mentally ill lose Medicaid funding; need to transition to community housing
Legislative Response to ACH
• Creates “Transitions to Community Living Fund”– $50 M to transition mentally ill to community &
backfill (temporarily) loss of PCS Medicaid funds to adult care homes
– Implement 1915 I waiver for special care units only
Group home population excluded….
Legislative Response to ACH• Restructures State/County Special Asst. In-Home
program, effective Feb. 15, 2013– All counties must participate (9 did not)– All counties must maintain 2011-12 approps in
2012-13– All counties must maintain filled slots or fill vacant
slots• In-home rate = adult care home rate• No new county service $; case mgt $ may be
needed
Action to Date
– Blue Ribbon Commission on Transitions to Community Living formed• Housing & Transitions Subcommittees appointed
– DOJ MOU agreement to buy 3,000 transitional housing spaces, 1-time transition supports, community services• Transition coordinated by LME-Mco
Action to Date
– All IMD assessments completed• 4-5 homes exceeding 50%; 250 clients• All providers filed temporary restraining orders
– All PCS assessments completed• 9300 clients no longer eligible• Letters to be mailed in next week
– Special session to deal with group homes?– State/county special assistance as funding
source?
Non-Emergency Medicaid Transport
• State budget directs NC-DHHS to develop & issue RFP for non-emergency Medicaid transportation– Dept must study impacts on human services
transportation system prior to RFP• NCACC shared county concerns re
interruption of coordinated county network
NCACC Preparation for Next Biennium
NCACC Legislative Goals
• All counties asked to submit goals thru Sept. 17
• Goals vetted by NCACC steering committee, legislative goals committee, NCACC board of directors, all counties via NCACC Legislative Goals Conference
NCACC Legislative Goals Process(Adopted Goals Remain in Place for 2-Yr. Biennial Session)
Oct
CountiesSubmit Pro-posed Goals
Goals Referred
to SteeringCommittee
Steering Comms.
Consider & Recommend
Steering Comms.
Consider & Recommend
Goals Referred to Legislative
Goals Comm.
Legis. GoalsComm.
Considers & Recommends
Legis. GoalsComm.
Considers & Recommends
Goals Referred to Board of Directors
Board Considers
& Approves Goals
Board Considers
& Approves Goals
Goals Referred
to Member
County Boards
New BoardsTake Office,Consider &
Select Delegates
New BoardsTake Office,Consider &
Select Delegates
Delegates ApproveGoals at
Legis Goals Conference
Delegates ApproveGoals at
Legis Goals Conference
Dec Jan, 24-25Dec
General Assembly Convenes Jan. 30, 2013
July - Sept Nov 14-15
Steering Committees
• Tax & Finance• Education• Environment• Agriculture• Justice & Public Safety• Health & Human Services• Intergovernmental Relations
Process thus far….
Leg. Goals submit 58 to NCACC Board
Steering committees submit 71 to Leg. Goals
Committee
189 goals via 34 counties & 3 affiliates
County Top Ten (so far…)
• Reinstate ADM & lottery funds for school construction.• Oppose shift of state transportation responsibilities.• Preserve existing local revenue base.• Oppose unfunded mandates & shifts of state
responsibilities.• Ensure adequate mental health funding.
County Top Ten (so far…) cont.
• Limit amount that providers can charge counties for inmate medical care to no more than what is allowed by Corrections.
• Protect county revenues in tax reform consideration.• Authorize greater county oversight of electronic gaming.• Expand use of 911 funds, protect & enhance current
funding streams & maintain full operational flexibility & autonomy.
• Exempt public institutions from state & local sales taxes.
2013 Legislative Issues
Fiscal Modernization(i.e. Tax Reform)
• House & Senate leadership and staff working for several months
• Attempted a number of times before• Legislative goal of “Revenue Stability”• NCACC goals to be part of conversation and avoid
shifting of responsibilities to counties• Corporate & individual income tax, sales tax, tax on
services, property tax…• Exemptions & Exclusions• Chances of success???
Unemployment Insurance
• $2.4 billion debt to federal government – whose debt?
• How to repay debt• How to prevent this happening again• Annual v quarterly repayment of benefits• Surcharge on taxable payroll• Will be addressed this session
What Else?• Contingency Fee Audits• Electronic public notices• Electronic gaming oversight• ABC privatization
What Else?
• Pretrial Release• ETJ• Hydraulic Fracturing
(Fracking)• Water Supply
NCACC Budget & Tax Survey
Survey Results Overall• Slight improvement in county budget
environment– 69 counties reported budget increases– 50 counties reported increasing school
funding• Property values exceeding market growing
concern• Loss of lottery dollars backfilled with
county fund balances
2009 2010 2011 2012 2013$9.4$9.6$9.8
$10.0$10.2$10.4$10.6$10.8$11.0$11.2
N.C. CountiesBudgeted Expenditures
Bil
lio
ns
Real Property
Sales/Assessment Ratio > 100%
Total = 67
Max = 1.42
Total >110% = 16
Total >115% = 11
New This Year?
• Capturing charter ADM to factor current expense per pupil
• Document pre-trial release programs & animal control management
• Looking at employee retention, retirement rates
• Assessing major revenue & services challenges
County Funding of Schools• Current expense avg = $1746 per student
– $1,685 with charters– $1,730 in 2012
• Loss of state lottery funds—county actions– 64 dedicate to debt service; 51 pledge 100%
to debt service– 26 use county fund balance, 14 reduce
funding to other programs, 39 delay or cancel school projects
Pre-Trial Release
Preparing for the Future• Baby boomer retirement?
– 8% avg turnover rate• 61 reporting same in past 5 years• 4 increased• 9 decreased
– Positions impacted?• Child welfare• Jailers, LEOs
– Anticipate retirement?• <5% - 20 counties; 5-10% - 29; 10-25% - 24;
>25% - 6
Pending Retirements?
Governing in the New Normal
• Revenues improving but…– 70 counties concerned with stagnant revenues– 45 counties concerned with over-reliance on property
taxes– 51 counties concerned with declining market value of
property tax base
• New revenue sources?– Sales tax
• Expand base to services
– Sweepstakes
Governing in the New Normal
• Spending pressures from:– 56 counties reported stagnant salaries & benefits– 50 counties reported rising demands for services
• Emphasis on social and human services in response to economic climate
– 40+- report backlog in capital, maintenance, equipment
Recent Court Case
Lanvale Properties v Cabarrus County
• Recently decided by NC Supreme Court• Cabarrus County AFPO• Required developers to pay a school
impact fee• Court invalidated; county does not have
authority
Questions / Comments
Thank You!