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 Commissioners304 – Republican County Commissioners270 – Democrat County Commissioners6 – Unaffiliated County Commissioners54 – Republican majority boards44 – Democrat majority boards2 – 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
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.
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
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 onlyGroup 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 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) Goals Goals Counties Steering Legis. Goals Referred Referred toSubmit 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
Steering Committees• Tax & Finance• Education• Environment• Agriculture• Justice & Public Safety• Health & Human Services• Intergovernmental Relations
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
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.
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
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
Real Property Sales/Assessment Ratio > 100% Total = 67 Max = 1.42Total >110% = 16Total >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
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