Mecklenburg County Board of Commissioners N.C. Government Relations Update February 26, 2010 Rebecca...
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Transcript of Mecklenburg County Board of Commissioners N.C. Government Relations Update February 26, 2010 Rebecca...
Mecklenburg County Board of Commissioners
N.C. Government Relations Update
February 26, 2010Rebecca Troutman, NCACC IGR Director
Sharon Scudder, NCACC Executive Counsel
Items for Consideration
1. Budget Update: County Perspective2. Transportation Policy3. ABC System Reform4. Retirement System5. Collective Bargaining:
Member/Candidate Survey6. E911 Funding7. Judicial Actions?
State Budget in Brief (S202)
• General Fund budget = $19 billion; adopted 8/5• Revenue available = $17.6 billion before tax/fee
increase• Continuation budget = $22.1 billion• 3 continuing resolutions to keep state govt
operating
– 20% deficit resolved by 40% in cuts, 30% in stimulus $, 8% fees, 22% new taxes
– 2200 fewer positions, $3.1 bil cuts
The Good, the Bad, the Ugly (S202)
Good !
• Medicaid relief swap continues– July 1: out of Medicaid funding business
• Mecklenburg:– 2009 = $10.6 mil benefit– 2008 = $2.6 mil benefit
– Oct. 1: remaining ¼ cent Art. 44 ceded to state; Art. 42 flips to pt delivery
• Jan. distribution reflects changes• Local sales = 2%; 1.5% pt delivery, .5% per capita
The Good, the Bad, the Ugly (S202)
Good !• School construction lottery funds intact
– Perdue returns Feb. payment of $37.6 m– Budget at $147.2 mil; $162.3 2008-09 actual– Tech. corrections directs 2009-10 excess to
counties w/ tax rates < statewide avg.– Special provision doesn’t replenish lottery
reserve– Mecklenburg = $16.8 mil
The Good, the Bad, the Ugly (S202)
Good !• Expansion items target county legislative goals
– School nurses, daycare admin, NCFAST, community colleges, mental health crisis beds
• Maintains DMV registration/property tax collection system development– System in development; July 2011– Estimated gain to counties = $53.4 m annually – Mecklenburg = $7.8 m
Property Tax Collection Rates, All Property v. Motor Vehicles97.78% 98.02% 97.63% 98.36% 98.38%
86.69% 87.66% 87.23% 88.30% 87.22%
80%
85%
90%
95%
100%
2004 2005 2006 2007 2008
Property Excluding Motor Vehicles Motor Vehicles Only
Importance of Collecting Property Taxes with Vehicle Registration
Mecklenburg = 85.96 v. 98.52
The Good, the Bad, the Ugly (S202)
Good !
• What’s not in budget!?!– County housing of state misdemeanants
sentenced 90-180 days ($21 mil)– Local funding of law enforcement certification– LEA liability for school bus accidents
• What’s in budget!?!– Full funding of CJPP & JCPC
The Good, the Bad, the Ugly (S202)
Bad !
• Redirects corporate tax set aside from ADM Fund (school construction) to state education = $60 mil+ loss– 2 yr redirection unless….
• Senate proposal to eliminate
– Mecklenburg = <$11.7 mil>
• Withholds 2/3s beer & wine reimbursement for 1st year = $7.7 mil loss– Senate proposal to shift in perpetuity
The Good, the Bad, the Ugly (S202)
Bad !• Shifts child support enforcement to 28 counties
currently serviced by state regional offices = $4 mil+ cost increase– NCACC monitoring transition….
• Cuts $40 mil per year from state-funded mental health services; add. cuts via Medicaid– Turned back forced spending of fund balances; more
reporting
The Good, the Bad, the Ugly (S202)
Bad !• Repeals state reimbursement for jailed
misdemeanants at $18/day and extraordinary medical expenses = $10 mil+ loss
• Takes 10% of court facility fees for “collection” costs = $3 mil+ loss
• Eliminates state lease payments for probation offices = $1.2 mil loss– NCACC special provision to limit coverage
The Good, the Bad, the Ugly (S202)
Ugly !• Original proposal to force mental health
agencies to spend down fund balances to replace state cuts—rescinded in tech. corrections
• Legislature to study consolidation & administrative efficiencies of county DSS
• DHHS to undertake public health improvement plan
Counties Hurting Too
• 88 counties cut overall budget– 65 cut school appropriations– 200+ layoffs– 1000 positions eliminated– 16 counties with mandatory furloughs– Travel freeze, hiring freeze, delay of capital,
use of fund balance
First 6 Mos. 2010
• Governor orders 5% avg. reversions = $500 mil– Excludes schools
• DoR increases 1-time corporate tax collections– Offsets declining state revenues– Sales taxes off by 11%
• Medicaid expenses projected 10% above budget by year’s end– Enrollment up, using more services– Mitigated by fed. clawback decrease
Counties Hurting Too
• Sales taxes down 8%+ through March
• Food stamp/Medicaid caseloads soaring
• Sales assessment ratios above 100%
• Additional property tax exclusions & exemptions, and eligibles, decrease funding
State Budget Picture Today• Revenues through January are $35 million
short of forecast– Collections near target with $472 mil in 1-time
corporate collections, $272 mil above budget– December/January estimated payments 5% (or
$20 million) below expectations– January net withholdings are down 4.7% ytd, &
2.4% below a $5 billion target– January sales collections showed some
improvement
Next 6 Mos.
• Unofficial revenue deficit = $500 mil• Revenue slowing refunds to maintain cash
flow• OSMB to review & revise? year end
estimate– Sales taxes to remain 8% below FY2009– Further reversions (schools?), rainy day
funds, other funds?
• Lower base for next year’s budget?
Lottery
• Sales up, $50 mil more revenue
• Current provision directs all to counties with effective tax rates < statewide avg.
• Expect legislative fix– All counties receive same per ADM
• DPI revising chart with new (2009) data– Change in 2010 allocations– Mecklenburg = $1 mil+
School Funding
• GA granted indefinite extension of local sales tax set-aside for school construction
• NCACC exploring– Ability to opt out via statutory provision?– Clarifying that set aside doesn’t apply to food
tax in 40 and 42• Save counties $45 million
Mental Health
• New provider model – CABHA– Critical access behavioral health agency– Medically necessary services, 2 or more services,
LME endorsement– Phase out community support services
• New LME model – Medicaid Waivers 1915 (b)– Supports capitated, at risk Medicaid – Modified version of Piedmont BH
• 1 – 2 new LMEs in 2010-11• Risks v rewards
Tax Modernization
• Senate attempt to restructure state/local tax structure– Broaden income/sales base; lower rate
• House sought more tried and true
• Largely House position but…– Special budget provision to authorize
senate/house finance to meet out of session
Tax Modernization
• Senate/House finance meeting monthly
• Largely focused on sales taxes– Services: yes or no
• Forecast?– Not in election year unless….
2nd Year Biennium• Balanced budget but…………
– Governor orders budget cuts at 3, 5, 7% options• County programs?
– New revenues in place through 2010-11• No tax modernization
– Lower base? Lower revenue growth projections?– Continuation of fed. enhanced Medicaid?
• County concerns– State-shared revenues: video programming, e911,
beer/wine (again)– Service shift?
TRANSPORTION• Governor
Perdue’s Transportation Conversation: Secondary Roads– Ability to pay?
• Intergovernmental Advisory Group Update
Transportation Legislation
• S758 (Transfer Secondary Roads to Counties)– Budget did transfer maintenance to highway
construction
• H148, Intermodal Transportation legislation passed, counties can hold referendum to increase their sales tax for the specific use of mass transit. – ½ cent for Regional Transportation Authorities– ¼ cent for all other Counties– Up to $7 Vehicle Registration Fees
ABC System
• Governor’s BRAC• Privatization• Salary & Ethics
Concerns• NCACC
Recommendations• Legislative Study• Politics
Retirement System
• Retirement Board Voted to Increase the Employer Rate by 1.55% - 6.35%
• 2009 Pension Value Declined $4.79B
• Smoothing Period: Rate may increase over the next 5 years– Employee rate increase?
• Future of Retirement Commission
Collective Bargaining
• Are the Unions Organizing?– Federal Attempt in December – Public Employees
• Our Legislative Goal:– Collective Bargaining for Public Employees –
Oppose legislation authorizing local governments to enter into collective bargaining agreements with public employees, or mandating dues check-off programs.
• Coalition for NC Jobs – Member/Candidate Survey
911 Funding Flexibility• Legislative Goal:
– E-911 Funds – Support legislation to preserve county revenue from E-911 charges and allow counties greater flexibility in the use of the funds; and restructure the 911 Board created by G.S. 62A-41 to add additional local government representation.
• 911 Board Study – Subcommittee Commissioner Brain McMahan, Randy Keaton, Christy Shearin, Lee Worsley
• Legislative 911 Committee• NCACC Strategy: 911 Center Visits / Draft
Language
• Dispute over Board of Elections hiring part-time employee when position not specifically approved
• Writ of Mandamus issued by Superior Court Judge requiring County to pay employee and attorney fees
• Considerations regarding Local Government Budget and Fiscal Control Act, NCGS 159-28
• Future control of expenditures at risk
Graham County Board of Elections v. Graham County Board of Commissioners
• Declaratory Judgment Action filed against 7 counties – Claim failure to provide capital funding to charter
schools violates NC Constitution• Charter Schools statutory creation provides 10
charter with 5 year renewal process• Charter Schools are relieved of many funding
duties, teacher requirements, curriculum constraints, transportation requirements
• Are operated by private nonprofit groups • Risk of much more competition for county funds
Charter Schools Funding Case