FY12/FY13 State Budget: So far, municipal revenue impact is minimal

The House Appropriations Committee of the North Carolina General Assembly approved a bill for the State’s Budget this past Wednesday. Next week, the full House will debate and vote on the State Budget. The Senate will review the bill once it is approved in the House.

This week’s email bulletin from the North Carolina League of Municipalities (NCLM) covers the impact of the budget, and aligned changes with state revenue, on municipal governments. So far, cities and towns appear to be coming out better than counties, though much remains to be done with debate now expanding to the floor.

The budget proposal does impact municipal governments in some ways, particularly with respect to transportation:

  1. Reduction in the time over which Powell Bill funds can be accumulated from 10 years to 5 years;
  2. Division of Powell Bill payments into two installments (October 1 and January 1); with no clarity regarding interest;
  3. Elimination of Powell Bill funding for the seven municipalities that do not maintain any of their own public streets;
  4. 4 percent cut to most public transportation grant funds;
  5. Elimination of funding for State inmate work crews that aid local governments;
  6. Reduction in the Clean Water Management Trust Fund appropriation from $50 million to $10 million;
  7. $4 million reduction is grants for local parks and recreation programs; and
  8. 15 percent reduction in state aid to libraries.
  9. 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%).

(h/t Karl Knapp, NCLM)

For additional information on the Budget proposal, you can see it on the General Assembly website (H200). You can also learn more about this and other bills and their potential impact on municipal governments by visiting NCLM’s Legislative Overview and checking out additional posts at the NCLM Legislative Advocacy Blog.

Leave a Reply