Presentation, NC Association of County Commissioners Winter 2012 Legislative Update, presented at Winter 2012 NCLGBA Conference, 12/7/12

1. N.C Local Government Budget Association
December 7, 2012
NCACC Legislative Update
Johanna H. Reese
Director of Government Relations

2. 2012 Election Results

3. Executive Branch
• Gubernatorial party switch
• Turnover throughout cabinet agencies
• Large transition team at work
• Relationship with legislature?
• Council of State – little turnover

4. 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

5. 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

6. County Changes
121 – 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

7. 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

8. 2012 Legislative Issues

9. Human Services
Consolidation (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.

10. Human Services
Consolidation (H438)
• 5 counties to date initiated consolidation
– Montgomery, Buncombe, Brunswick,
Edgecombe, Bladen
• 6 counties pending SOG consultation
• Others awaiting new commissioner
transitions

11. 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

12. 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….

13. 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

14. 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

15. 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?

16. 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

17. NCACC Preparation for
Next Biennium

18. 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

19. NCACC Legislative Goals Process
(Adopted Goals Remain in Place for 2-Yr. Biennial Session)
Goals Goals
Counties Steering Legis. Goals
Referred Referred to
Submit Pro- Comms. Legislative Comm.
posed Goals to Steering Consider & Considers &
Goals
Committee Recommend Recommends
Comm.
July - Sept Oct Nov 14-15
Goals Referred to Board of Directors
Board Goals Referred New Boards Delegates
Considers Approve
to Member Take Office,
& Approves Goals at
County Boards Consider & Legis Goals
Goals Select Delegates Conference
Dec Dec Jan, 24-25
General Assembly Convenes Jan. 30, 2013

20. Steering Committees
• Tax & Finance
• Education
• Environment
• Agriculture
• Justice & Public Safety
• Health & Human Services
• Intergovernmental Relations

21. Process thus far….
189 goals via 34
counties & 3 affiliates
Steering committees
submit 71 to Leg.
Goals Committee
Leg. Goals submit 58
to NCACC Board

22. 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.

23. 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.

24. 2013 Legislative Issues

25. 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???

26. 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

27. What Else?
• Contingency Fee Audits
• Electronic public notices
• Electronic gaming oversight
• ABC privatization

28. What Else?
• Pretrial Release
• ETJ
• Hydraulic Fracturing
(Fracking)
• Water Supply

29. NCACC Budget &
Tax Survey

30. 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

32. Real Property
Sales/Assessment Ratio > 100%
Total = 67
Max = 1.42
Total >110% = 16
Total >115% = 11

33. 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

34. 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

35. Pre-Trial Release

36. 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

37. Pending Retirements?

38. 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

39. 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

40. Recent Court Case

41. 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

42. Questions / Comments
Thank You!