County and Municipal NCLM/NCACC Update Legislative Update Large City/County NC-IPMA Annual Conference, Finance Officers, MarchJan. 16, 2018
Overview Continuing Legislative Sessions Elections Interim Updates Pension System Short Session Goals Updates What s Next Short Session Preview
Continuing Legislative Sessions Legislature currently adjourned Since June 30 adjournment, have reconvened in August, October, January and February In February passed HB 90 addressed K-3 class size, Board of Elections composition, and pipeline funds issues GenX funding, judicial redistricting among issues not finalized prior to adjournment Will reconvene for short session May 16 th
Elections Redistricting shake-ups judicial races House introduced the original proposal to redraw judicial districts around the state Recent discussions surrounding whether judges should be appointed rather than elected Proposal for redrawing District Court, Superior Court, and prosecutorial districts unveiled Jan. 22 but not yet approved
Elections Redistricting shake-ups legislative races Lower courts have ordered legislators to redraw N.C. s congressional districts and use state legislative districts drawn in part by outside expert U.S. Supreme Court has delayed congressional ruling and may not decide until summer or fall State legislative case has been appealed to the U.S. Supreme Court Practically, all 2018 district lines are set Candidate filing ended Feb. 28
Elections Reactions to redistricting process Unusually high interest in running for NC legislature all seats are contested 18 legislators decided not to run for re-election to their current seats 14 Republicans 4 Democrats Of this group, three House incumbents announced they will run for Senate seats being vacated 19 open seats: 12 House, 7 Senate Strong partisan seats 37 House Dem, 56 House Republican 15 Senate Dem, 19 Senate Republican
Elections Hundreds of candidates 474 candidates for 170 N.C. legislative seats 217 Republicans 220 Democrats 36 Libertarians 1 Unaffiliated (if enough signatures are gathered) 59 candidates for 13 N.C. congressional seats Rep. Butterfield is only one with no primary Jones seat is only one with no general election opposition Rep. McHenry has five primary challengers
Elections Primaries take place before May 16 Short Session start Many incumbents face primaries 12 Senate incumbents 27 House incumbents Double-bunked incumbents are running in two Senate districts Ballard-Randleman Barrett-Krawiec
Interim Updates Interim committees may recommend legislation Environmental Review Commission solid waste disposal tax Legislative Research Commission Committee to Study Rates and Transfers/Public Enterprises Select Committee on Implementation of Building Code Regulatory Reform
Interim Updates Other topics discussed by interim committees GenX School safety Broadband service statistics Economic tier system Transportation $$
Interim Updates State agency initiatives and actions Hometown Strong Gov. Cooper initiative FirstNet Opioid fight/stop Act Census boundaries Opportunity Zones Hurricane recovery Water funding boost
LGERS Discussions regarding state and local pension systems continue SB 467 North Carolina Retirement Reform Funding level of LGERS has decreased slightly Treasurer has met with League, NCACC, others to discuss potential reforms to retirement systems
LGERS N.C. Retired Governmental Employees Association (NCRGEA) pushing for LGERS COLA State employees received 1% COLA in FY2017-18 state budget Asking members to reach out to local elected officials to make case for retiree COLA
LGERS 1% COLA = $20 million in additional contributions annually for next 12 years
LGERS Additional Treasurer s office issues Pension spiking State Health Plan Historical charters
NCACC Short Session Goals Update and Preview Priorities updated ahead of short session No NCACC goals are removed Direction from members gives us a focus for the short session given pace and timeline of the short session NCACC Board of Directors approved five priority/focus goals on February 7 th
NCACC Short Session Goals Update and Preview PE-1: Seek legislation to establish a new state-county partnership to address statewide public school capital challenges--including but not limited to maintenance, renovation, construction and debt--through a dedicated, stable funding stream that is consistent from county to county and sufficient to meet the school facility needs of all 100 counties. PE-2: Seek legislation to repeal the statutory authority under N.C. Gen. Stat. 115C-431(c) that allows local school boards to file suit against a county board of commissioners over county appropriations for education. TF-1: Support efforts to preserve and expand the existing local revenue base of counties, and oppose efforts to divert fees or taxes currently allocated to the counties to the state. Oppose efforts to erode existing county revenue streams and authorize local option revenue sources already given to any other jurisdiction. GG-3: Seek legislation, funding, and other efforts to expand digital infrastructure/broadband capability to the un-served and under-served areas of the state. PE-4: Support legislation providing flexibility to align K-12 and community college calendar.
NCACC Short Session Goals Update and Preview School Capital Challenges and Opportunities $8.1 billion need across the state These numbers were surveyed prior to K-3 class size changes NCACC survey went out February 6 th seeking updated data on school capital needs
NCACC Short Session Goals Update and Preview School Capital Challenges and Opportunities Three pronged approach to address funding and flexibility needed for school capital Increased lottery funding $105 million over two years and dedicated growth Funds a new Needs Based Public School Capital Fund Plan to get back to 40% (would be about $250 million today) Sales tax flexibility to shift articles for education funding instead of other uses $1.9 billion bond for school capital
NCACC Short Session Goals Update and Preview www.ncschoolbond.com Twitter Instagram Facebook @ncschoolbond #ncschoolbond
NCLM Short Session Goals Update and Preview Other possible Short Session topics of interest for cities: First responders benefits (fire & police) Vacant building receivership Constitutional amendments Eminent domain Taxpayer bill of rights Income tax cap Voter ID Right to hunt & fish
NCLM Short Session Goals Update and Preview How to keep up? Read the League Bulletin Bill tracker Contact us!
NCLM Short Session Goals Update and Preview www.herewegrownc.org
What s Next Short Session May 16 th Return Adjustments to budget Election-driven issues Interim committee recommendations Possible GenX? Possible judicial selection/districts? Wild card issue(s)?
Questions? Erin Wynia Johanna Reese NCLM NCACC ewynia@nclm.org johanna.reese@ncacc.org 919-961-6108 919-715-7654