FY12/FY13 State Budget: Counties facing significant impact

This serves as a compliment to our more recent post on the municipal revenue impact of the State Budget now planned for debate and vote in the North Carolina House of Representatives next week.

The NC House will debate and vote next week on the State Budget for the coming biennium (FY12/FY13). In order to balance the budget in light of a substantial deficit and a pledge by the now-GOP majority to eliminate a “temporary” sales tax increase passed in 2009, the proposed budget makes significant cuts to funding for services provided and administered at the county level. The NC Association of County Commissioners (NCACC) has prepared a summary of the county-oriented impacts, which include:

  • $72 million reduction in school capital funding from corporate income tax proceeds;
  • Reductions of individual (per pupil) allotments and select special-purpose education grant programs;
  • Reduces More at Four and Smart Start by 20%;
  • Reduces statutory appropriation for Clean Water Trust Fund from $100 million to $10 million;
  • Diverts $16.4 million from the Parks & Recreation Trust Fund and Natural Heritage Trust Fund;
  • Transfers the Employment Security Commission to the Department of Commerce;
  • Proposes moving state misdemeanants with sentences of less than 180 to County jails, and proposed subsequent judicial fee increases to accommodate shift;
  • Reduces library funding by 15%;
  • Eliminates funding of County-based veterans affairs programs;
  • Require that local government support functions of the Department of Revenue and the State Treasurer be paid for out of local sales tax revenues. This proposal would reduce local sales tax revenues by two-tenths of 1 percent (0.2%);
  • Eliminates the Health and Wellness and Tobacco Trust funds;
  • Diverts Golden Leaf Funds for the biennium to the general fund;
  • Calls for a comprehensive review of state, university, and school compensation plans

Additional updates on legislative activity of interest to county governments can be found at the NCACC’s Legislative Information Page. You can also check out their “The Week in the General Assembly” videos on their YouTube channel.

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