House budget proposal maintains lottery funds at $100M, includes phase out of Medicaid $500K benefit | Eastern North Carolina Now

Press Release:

    The House released its initial budget proposal Tuesday, with appropriations subcommittees meeting for several hours to review and amend the proposed committee substitute by subject area. The full Appropriations Committee meets today to consider and possibly amend the budget.

    As of this writing, and knowing that we've not captured fully all the amendments proposed and adopted in the subcommittees, we wanted to report on those items of critical importance to counties.

    First and foremost, the House follows the Senate and Governor's recommendations to appropriate $100 million in county school construction lottery dollars. A new special provision accompanying the House's lottery provision would prohibit these funds from being pledged for debt authorized on or after July 1, 2014.

    The House agrees with the Senate to phase out the $500,000 net Medicaid Relief Swap benefit to counties. This benefit, not the hold harmless itself, would be phased out by $125,000 each year over four years.

    The House accepts the Senate's plans to provide additional funding and oversight for county child protective services programs, but turns back the Senate's proposal to limit state-funded school nurses to Tier 1 counties.

    Of concern to counties, and an issue that we had thought was resolved, is a directive once again to NC-DHHS to contract for the statewide management of non-emergency Medicaid transportation. This could effectively disrupt an important funding stream to county human services transportation networks and lessen their efficient operation by separating Medicaid transports from all other human service trips. A 2011 budget provision called for a similar outsourcing of NEMT management, predicated on a cost/benefit analysis by NC-DHHS. Following an RFP process, several potential vendors submitted proposals—the lowest bid price of $1.80 per member/per month for only one state region (the others at $1.95) proved higher than our current statewide system at $1.73. A national analysis showed North Carolina had the second-lowest rate of the 19 states responding. In light of the higher costs associated by outsourced management, and given the importance of maintaining the coordinated transportation network, NC-DHHS Secretary Wos informed the General Assembly that the department was unable to contract out NEMT management. We urge you to contact your House and Senate members and ask that they remove this provision (Section 12H.31).

    Like the Governor's and Senate's proposals, All state misdemeanants, including DWI offenders, would be housed in county jails through the voluntary Statewide Misdemeanant Confinement Fund program.

    Teacher salaries would increase on average by 5%, with all teachers making at least $33,000. A special provision would allow school boards to use any state allotment funds to supplement teacher pay. All other state employees would receive a $1,000 annual salary increase ($1,236 with increased benefits).

    The House concurs with the Senate's rejection of shifting the workers' compensation claims payment for state-funded school employees to local school boards, along with shifting claims payment for local school tort claims, mainly arising from school bus accidents.

    The House largely rejects the Senate's plans for Medicaid reform, and does not cut teachers' assistants in grades 2 and 3. The SBI would be transferred to Public Safety; the State Crime Lab would remain in Justice. County forestry contributions would remain as is.

    An amendment in the House Education Appropriations Subcommittee would authorize virtual charter school pilots—county funds of $790 per student would go to these pilots. Committee discussion noted that $790 is the lowest allocation by a single county—N.C.DPI records show seven counties whose general fund appropriations are below $790, with $408 per pupil being the lowest in 2012-13.

    Contact:

     - Johanna Reese, Government Relations Director

     - David F. Thompson, Executive Director