Legislative Update
N.C. Local Government Budget Association

Asheville, NC
December 13, 2013
Chris Nida, Policy & Communic...
Agenda
• 2013 Session Overview
• Look Ahead to 2014 Session
– Interim studies

•
•
•
•

Federal Issues
NCLM Policy Develop...
3
2013 Long Session
Overview
Session Overview
• Building relationships was a major key to
success
– Town Hall Day, Advocacy Goals Conference,
District ...
Tax Reform

Municipal Revenue Change ($ millions)
HB 998 Version

FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19

H...
Session Overview
• Local control issues took center stage
– Annexations and deannexations
– Transfer of assets
– Regionali...
Session Overview
• Transportation reform
– Divides statewide transportation revenues
between three “tiers” of projects: St...
Looking Ahead: 2014
Short Session
Looking Ahead
• Unknown future for House leadership
• Senate leadership likely to remain intact
• Several important issues...
MEC Rulemaking
• Mining & Energy Commission
– MEC is currently making rules related to hydraulic
fracturing; topics of int...
Interim Studies
Privilege License Study
• HB 998 – Tax Simplification and Reduction Act
– HB 998 authorizes several tax reform-related stu...
Environmental Review
Commission (ERC) Studies
• HB 74 – Regulatory Reform Act of 2013
– Four studies authorized by HB 74:
...
Legislative Research Commission
(LRC) Studies

• The General Assembly will also be studying the following
issues, which ha...
Interim Committees
Revenue Laws Study Committee
• Outstanding issues related to tax reform
– Expansion of sales tax to admissions
– Utility f...
Joint Legislative Committee on
Local Government
• Heard presentations Monday related to local debt
– Representatives from ...
Federal Issues
Federal Issues
• Biggert-Waters Act
– Passed in 2012 and designed to ensure solvency of the
National Flood Insurance Progr...
Federal Issues
• Water Resources Reform and Development Act
– US House version of the bill does not allow for
extension of...
Federal Issues
• Marketplace Fairness Act
– Passed by US Senate to allow local governments to
collect internet sales taxes...
NCLM Policy
Development
NCLM Policy Development
• Legislative goals set by membership in even-numbered
years
• Membership may submit goals June – ...
Stay Involved
Stay Involved
• Consider joining a policy committee:
– Tax & Finance
– Planning & Environment
– General Government

• Get ...
Stay Involved
•

Connect with the League’s legislative communications
–
–
–
–
–
–

•

LeagueLINC Grassroots Online
LINC Bu...
Bill tracking
•

•
•

•

Provides NCLM staff summaries of
key legislation, with links to NCLM
bulletins and memos for more...
LeagueLINC Bulletin
Sign up for the League’s LeagueLINC
Bulletin, published weekly during the
legislative session, by emai...
NCLM Budget & Tax
Rate Survey
Preliminary Results
Revenues Better Able to Support
Spending and Increased Tax Rates
100%
80%
60%
40%
20%
0%
FY 07-08

FY ...
Preliminary Results
Budget-Balancing Strategies FY 2013-14 and FY
2012-13, All Municipalities
Reduced Employee Benefit Lev...
Questions and Comments?
Chris Nida, Policy & Communications Specialist
Office: (919) 715-3945
Mobile: (919) 609-8671
cnida...
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NCLM Legislative Update for 2013 Winter NCLGBA Conference

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NCLM Legislative Update for 2013 Winter NCLGBA Conference

  1. 1. Legislative Update N.C. Local Government Budget Association Asheville, NC December 13, 2013 Chris Nida, Policy & Communications Specialist N.C. League of Municipalities
  2. 2. Agenda • 2013 Session Overview • Look Ahead to 2014 Session – Interim studies • • • • Federal Issues NCLM Policy Development Stay Involved NCLM Budget & Tax Rate Survey 2
  3. 3. 3
  4. 4. 2013 Long Session Overview
  5. 5. Session Overview • Building relationships was a major key to success – Town Hall Day, Advocacy Goals Conference, District Days!, All Hands on Deck • Tax reform and budget among the critical achievements this session 5
  6. 6. Tax Reform Municipal Revenue Change ($ millions) HB 998 Version FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 House 2.2 32.0 34.2 36.5 38.7 40.9 Senate 2nd Reading 3.3 -69.0 -130.0 -112.3 -99.8 -163.9 Senate 3rd Reading 3.6 25.0 13.7 -25.5 -9.5 -10.1 Final Agreement 5.3 13.5 14.3 15.0 15.7 16.4 6
  7. 7. Session Overview • Local control issues took center stage – Annexations and deannexations – Transfer of assets – Regionalization of utilities 7
  8. 8. Session Overview • Transportation reform – Divides statewide transportation revenues between three “tiers” of projects: State (40 percent), Regional (30 percent), Division (30 percent) – Projects selected through combination of datadriven criteria and local input 8
  9. 9. Looking Ahead: 2014 Short Session
  10. 10. Looking Ahead • Unknown future for House leadership • Senate leadership likely to remain intact • Several important issues on the horizon: – Public records – Transportation funding – Hydraulic fracturing • Session convenes: Wednesday, May 14, 2014 • Town Hall Day: Wednesday, June 4, 2014 10
  11. 11. MEC Rulemaking • Mining & Energy Commission – MEC is currently making rules related to hydraulic fracturing; topics of interest to local governments include: • • • • Baseline testing of groundwater and surface water supplies Water management Waste management Setbacks 11
  12. 12. Interim Studies
  13. 13. Privilege License Study • HB 998 – Tax Simplification and Reduction Act – HB 998 authorizes several tax reform-related studies, including: • The authority of cities and counties to impose a privilege tax on businesses and the various State privilege license taxes. – Both reform and elimination of the privilege license tax were proposed during the session 13
  14. 14. Environmental Review Commission (ERC) Studies • HB 74 – Regulatory Reform Act of 2013 – Four studies authorized by HB 74: • The statutory models for establishing, operating, and financing certain organizations that provide water and sewer services in the state • The technical review of plans by non-professional engineers • The state stormwater programs, with a specific focus on how partially impervious surfaces are treated in the calculation of builtupon area under those programs • The circumstances under which cities and counties should be authorized to enact environment ordinances 14
  15. 15. Legislative Research Commission (LRC) Studies • The General Assembly will also be studying the following issues, which have relevance to local governments: – A review of all issues related to water quality in Jordan Lake – The establishment of a property owner protection act, including awarding attorney’s fees to property owners in the event of litigation against a local government – Allowable uses of local government public enterprise system funds – Responsibility for maintenance of infrastructure on foreclosed or abandoned properties – Policies and roles related to wetland and stream mitigation 15
  16. 16. Interim Committees
  17. 17. Revenue Laws Study Committee • Outstanding issues related to tax reform – Expansion of sales tax to admissions – Utility franchise tax changes – Expiration of tax credits • Dept. of Revenue staffing • Tax & Tag Together 17
  18. 18. Joint Legislative Committee on Local Government • Heard presentations Monday related to local debt – Representatives from LGC, NCACC, bond attorneys, and lenders addressed committee – Raleigh CFO Perry James presented city perspective – Relatively few questions from committee members 18
  19. 19. Federal Issues
  20. 20. Federal Issues • Biggert-Waters Act – Passed in 2012 and designed to ensure solvency of the National Flood Insurance Program – Many property owners, especially in coastal areas, have seen significant flood insurance rates due to implementation – Homeowner Flood Insurance Affordability Act proposal supported by NCLM and NLC 20
  21. 21. Federal Issues • Water Resources Reform and Development Act – US House version of the bill does not allow for extension of federal cost-sharing partnerships for beach renourishment – Carolina Beach first in the nation to expire, beginning in 2014 – House and Senate currently in conference committee 21
  22. 22. Federal Issues • Marketplace Fairness Act – Passed by US Senate to allow local governments to collect internet sales taxes – Has not received hearing in House – US Supreme Court elected not to hear a case on the issue – Supported by NCLM and NLC 22
  23. 23. NCLM Policy Development
  24. 24. NCLM Policy Development • Legislative goals set by membership in even-numbered years • Membership may submit goals June – August • LACs/RAC votes on goals to forward to the Board of Directors • Member review November – January • Advocacy Goals Conference January 2015 24
  25. 25. Stay Involved
  26. 26. Stay Involved • Consider joining a policy committee: – Tax & Finance – Planning & Environment – General Government • Get involved at the national level through NLC • Town Hall Day – June 4 26
  27. 27. Stay Involved • Connect with the League’s legislative communications – – – – – – • LeagueLINC Grassroots Online LINC Bulletin – Weekly during session LINC’ed IN Action Alerts News & Notes ECOLinc Newsletter Let us know how we can help – Arranging visits, setting up meetings, etc. – LeagueLINC@nclm.org 27
  28. 28. Bill tracking • • • • Provides NCLM staff summaries of key legislation, with links to NCLM bulletins and memos for more information Look up bills by number or topic View the priority of the issue for the League See up-to-date information on each bill, pulled from the N.C. General Assembly website 28
  29. 29. LeagueLINC Bulletin Sign up for the League’s LeagueLINC Bulletin, published weekly during the legislative session, by emailing LeagueLINC@nclm.org 29
  30. 30. NCLM Budget & Tax Rate Survey
  31. 31. Preliminary Results Revenues Better Able to Support Spending and Increased Tax Rates 100% 80% 60% 40% 20% 0% FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14 Projected revenues better able to support your spending requirements than previous year Tax Rate Increase 31
  32. 32. Preliminary Results Budget-Balancing Strategies FY 2013-14 and FY 2012-13, All Municipalities Reduced Employee Benefit Levels Brought back in-house services previously… Imposed/raised impact or development fees Reduced service levels Shifted/shared responsibilities with another … Contracted out additional services Imposed a hiring feeze for part or all of… Raised Tax Rate Reduced the number of municipal employee … Appropriated more fund balance than in … No pay raises for employees Reduced actual capital spending below… Reduced proposed spending/programs Cut spending specific programs/departments … Increased existing fees and charges for services Implemented new fees and charges for services 0% FY 13-14 FY 12-13 10% 20% 30% 40% 50% 60% 32
  33. 33. Questions and Comments? Chris Nida, Policy & Communications Specialist Office: (919) 715-3945 Mobile: (919) 609-8671 cnida@nclm.org 33
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