This year, the General Assembly was forced to make difficult and unprecedented decisions regarding the state budget. We cut more than 500 line items and eliminated more than 50 programs to shrink our state budget by $2 billion compared to last year.
This smaller budget includes federal stimulus money ($1.3 billion) and additional tax revenue ($990 million), which together cover about half of our more than $4 billion shortfall. The other half is covered by real, tangible cuts. We are in no way growing government.
The information below shows both how we have significantly cut spending across the board and how we have tried to preserve or expand vital programs in our state.
Budget Reductions
We made significant cuts across the board in the state budget this year. While we have worked hard to preserve necessary programs and services, there were just some programs that we could not continue or fund in full. The following information highlights just some of the difficult decisions we have had to make this year.
Overview
_State Employees: The budget eliminates 2,191 state employee positions, 726 of which are currently filled.
_Education: Funding has been reduced for about 100 programs; 23 programs have been eliminated.
_HHS: Funding has been reduced for about 125 programs; 13 programs have been eliminated.
_Natural and Economic Resources: Funding has been reduced for about 75 programs; five programs have been eliminated.
_Justice and Public Safety: Funding has been reduced for about 80 programs; 10 programs have been eliminated.
_General Government: Funding has been reduced for about 80 programs; two programs have been eliminated.
_Transportation: Funding has been reduced for about 30 programs; one program has been eliminated.
Education
_We have saved a significant amount of money by delaying the adoption of math textbooks in grades 6 through 12. - ($48 million)
_ We have reduced General Fund support for More at Four. - ($5 million)
_We have had to cut funding for local school systems across the state. Local education officials will decide how manage the cut, and the state will allow systems some additional flexibility in moving money around to protect classroom instruction. - ($225 million)
_We have eliminated funding for all 200 Literacy Coaches. - ($12 million)
_We have reduced funding for non-instructional support personnel in public schools. Non-instructional support personnel include clerical assistants, custodians, and substitute teachers, among other items. - ($10 million)
_We have reduced funding for public school transportation, which supports salaries of transportation personnel as well as the maintenance of yellow buses. - ($15 million)
_We have reduced funding to the following non-public school organizations: Communities in Schools, Schools Attuned, ExplorNet, Teacher Cadet, NC Network, Science Olympiad, Teach for America, NC Math & Science, and Project Enlightenment. - ($4.6 million)
_We have reduced funding to a number of UNC Centers and Institutes. – ($12 million)
Health and Human Services
_We have reduced funding for Smart Start. – ($16 million)
_We have reduced service funds for supplemental state-funded services provided to CAP/MR-DD patients. State funds are still allowed for room, board, and other services. – ($16 million)
_We have reduced funding for state operated services within the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services that are not part of the core mission of DMH, DD, and SAS. – ($4.5 million)
_We have reduced funding for community services within the Division of Mental Health, Developmental Disabilities, and Substance Abuse Services that are not part of the core mission of DMH, DD, and SAS. – ($4 million)
_We have eliminated state funding for the following programs: Kidney Disease Purchase of Medical Care Program, Epilepsy Purchase of Medical Care Program, Adult Cystic Fibrosis Program, and the Cancer Purchase of Medical Care Program. – ($3.3 million)
_We have reduced Division of Public Health contract funds that (1) do not meet the Division’s core mission, (2) do not provide a direct service, (3) have had unobligated funds in the past, or (4) have not met the goals or deliverables in the contract. – ($4 million)
_We have reduced funding for NC Reach. NC Reach is an education assistance program for adoptees and foster youth. – ($3.2 million)
_We have reduced state aid to counties associated with county administration of public assistance programs. – ($5.5 million)
_We have reduced Medicaid provider rates. This reduction applies to all public and private providers except for federally qualified health centers, rural health centers, school-based and school-linked health centers, state institutions, hospital outpatient, pharmacy, and the non-inflationary components of the case-mix reimbursement system for skilled nursing facilities. – ($76.4 million)
_ We have reduced prescription drug expenditures by using more generics and better managing costs. – ($25 million)
_We have reduced appropriation for community support services within the Division of Medical Assistance. – ($65 million)
_We have reduced funding for some children’s group homes. – ($15.9 million)
_We have consolidated case management services throughout the Medicaid program. – ($41 million)
_We have frozen Community Alternative Program (CAP) slots for disabled adults and people with mental retardation and developmental disabilities. – ($6.7 million)
_We have reduced medical assistance payments by increasing payment by third parties and increasing cost avoidance through better utilization of technology and other Medicaid cost-containment activities. – ($20 million)
Natural & Economic Resources
_We have reduced operating expenses within the Division of Agriculture and Consumer Services. – ($345,873)
_We have reduced operating expenses within the Department of Labor. -($155,877)
_We have reduced operating expenses within the Department of Environment and Natural Resources. – ($724,866)
_We have reduced operating expenses within the Department of Commerce. – ($333,615)
Justice and Public Safety
_We have eliminated state funding for the Center for the Prevention of School Violence, which does not serve the core mission of the department. – ($481,225)
_We have eliminated pass-through funding to Boys & Girls Club, which was used as part of a match for grant funds that the club no longer receives. – ($400,000)
_We have reduced state-funded Eckerd Wilderness Camp contract, which will close two of the seven camps. The North Carolina Eckerd Wilderness Camps serve boys and girls, ages 10 through 17, with behavioral problems. – ($2.8 million)
_We have closed the Samarkand Youth Development Center. – ($2.6 million)
_We plan to close seven prisons, which will be staggered over the course of the 2009-2010 fiscal year. – ($8.4 million)
_We have eliminated Community Work Crews, which provide labor for state and local governmental entities at no cost, as well as providing occupational development for inmates; 127 associated officer positions will also be eliminated. The DOC may charge actual cost to governmental entities for these services. – ($4.8 million)
Transportation
_We have reduced aviation and ferry funds. – ($4.15 million)
_Administration funding is cut throughout the Department of Transportation. This funding is used for salary and operating expenses in the administration of the NCDOT, Division of Highways, and the Division of Motor Vehicles. – ($9.2 million)
_Funds for the Drivers Education Program in the Department of Public Instruction are also reduced. – ($1.1 million)
_Funding for various operating accounts is reduced in the State Highway Patrol. - ($3.7 million)
General Government
_We have made reductions to various operating accounts in eight divisions across the Department of Administration. – ($104,647)
_We have made reductions to various operating accounts within the Department of Cultural Resources. – ($552,985)
_We have reduced various administrative services within the Department of Cultural Resources. – ($193,640)
_We have reduced funding for the following expenditures within the Department of Cultural Resources: Tryon Palace, Maritime Museum, the Museum of Art, the Arts Council, State Library Services, the Museum of History, and the Roanoke Island Commission. – ($1.9 million)
_We have reduced funding for the Volunteer Safety Workers’ Fund within the Department of Insurance. – ($2.5 million)
Preservation/Expansion of Vital Programs
Although we have made significant cuts across the board, we must continue to invest in job creation, education and health care if our state is to remain strong. The following information highlights just some of the ways we have tried to preserve vital programs in North Carolina.
Education
Despite a lack of funding, we have done our best to protect education in North Carolina. The following information highlights just some of the ways this budget will help to preserve the quality of education in our state.
_Overall education spending increase between House budget and final version - $285 million
_We have allocated funds to prevent the elimination of 3rd-grade teaching assistants - $130 million
_We have allocated funding to protect K-3 teaching positions - $139 million
_We have provided funding for 12 additional Learn & Earn high schools that will be operational in FY 2009-10 - $3.6 million.
_We have allocated funding to expand the District and School Transformation Initiative, which is part of the state’s redesigned framework for delivering technical assistance and other support to low performing districts and schools. - $ 2.5 million
_We have provided recurring funding for additional dropout prevention grants. - $13 million
_We have fully funded enrollment growth in community colleges. - $58 million
_We have fully funded enrollment growth in universities - $44 million
_We have allocated funding to re-establish and place renewed emphasis on vocational and technical education programs at community colleges. - $4.5 million
_Financial aid for UNC system - $35 million
_We have increased the state’s contribution to the Teachers’ and State Employees’ Retirement System. - $21 million
Health and Human Services
The following information highlights just some of the ways that we have tried to preserve essential programs in Health and Human Services.
_Complete last phase of three-year takeover of Medicaid from counties, freeing money for local governments - $252 million
_We have expanded the Children’s Health Care Program (Health Choice) - $17 million
_We have restored funding for Local Mental Health Management Agencies - $10 million
_We have provided funds to keep the Dobbs Youth Development Center open - $2.26 million
_We have provided additional funding to the State Health Plan cover medical costs and to reduce the premium rate increase for the next two years from 10 percent to 8.9 percent. - $132.2 million
_New local inpatient beds for the mentally ill to treat people closer to their homes
and relieve state hospitals - $12 million
Justice and Public Safety
The following information highlights just some of the ways we have tried to preserve and fund important programs pertaining to justice and public safety.
_We have restored funding for 132 jobs in state courts - $7.5 million
_We have restored funding for 155 Victim Witness Legal Assistants - $7 million
_We have provided money for the Private Attorney Fund to address backlog of unpaid claims carried over from last fiscal year. Recurring continuation increases for the Fund are reduced. - $7 million
_We have allotted funds to expand Chief Probation Parole Officer Positions to fund an additional 18 positions. - $1.4 million
_We have restored 400 proposed job cuts in the Department of Corrections - $15 million
Miscellaneous
_We have allocated funds for maintenance to the state highway system. The increase in funding is necessary to prevent further deterioration of the State highway system. - $41.1 million
_We have provided funds to Water Resources Development Projects to pay for the state’s share of the projects. Funds will provide a state match for $57,700,000 in federal funds. - $4.9 million
Prepared with the assistance of the Speaker’s Office of Communications
From the Office of Representative Jimmy L. Love, Sr. July 30, 2009
Budget writers continue working diligently with Gov. Perdue this week to come to an agreement on a budget for the next two years. While there is still work to be done, I am confident that we have moved significantly closer to a consensus.
The House also took up a number of key bills this week. We have worked hard to pass legislation that will prevent racial profiling and reform North Carolina’s probation laws. We have also improved the State Fair Housing Act and our predatory lending laws. The following information highlights just some of the important work we have done here in Raleigh this week.
I hope you will contact me if you have questions, or if I can be of service. Thank you as always for your support and your interest in our state.
Public Safety
_State lawmakers have approved legislation that will reform probation in North Carolina by giving probation officers more tools to keep offenders from getting into further trouble (SB 920). If enacted, probation officers would be added to the list of persons who are allowed to access the juvenile records of certain offenders. The legislation would also make warrantless searches and drug screening regular conditions of supervised parole and would add additional controlling measures for offenders subject to intermediate punishment. The bill will now be presented to Gov. Perdue to be signed into law.
_State lawmakers have passed a bill intended to help prevent racial profiling by law officers by changing how they collect traffic statistics (SB 464). The legislation also provides that when a law enforcement officer arrests an adult who is supervising minor children, the minors must be placed with a responsible adult approved by the parent or guardian. If it is not possible to place the minor children with a responsible adult within a reasonable period of time, the officer shall contact the county department of social services. The bill now returns to the Senate for a concurrence motion.
_The General Assembly has ratified legislation that clarifies that people who use defibrillators in emergencies aren’t liable for damages unless they displayed gross negligence (HB 1433). The bill will now be presented to Gov. Perdue to be signed into law.
_The General Assembly has ratified legislation that would strengthen domestic violence laws by providing protection for the pets of abused persons. (SB 1062). Opponents of the bill say that the legislation is evidence of political correctness going too far. However, proponents of the legislation contend that the bill is meant to protect human beings more than animals. In domestic violence cases, there have been some instances in which abusers threaten violence toward a family pet as a means of manipulating their victims. In extreme cases, abusers have tortured or killed pets. The bill will now be presented to Gov. Perdue to be signed into law.
Protecting Homeowners
_The Statutory Homestead Exemption would be significantly increased under a bill that has been ratified by the General Assembly and sent to Gov. Perdue to be signed into law (HB 1058). The legislation increases the exemption from $18,500 to $35,000.
Improving Government
_The General Assembly has ratified legislation that will require all cities, counties and other local units of government to adopt a code of ethics for their governing boards (HB 1452). The legislation would also require members of those boards to receive education on ethics laws applicable to local government officials. The bill will now be presented to Gov. Perdue to be signed into law.
_The House has passed legislation that would expand the definition of economically distressed counties to include the 80 poorest counties in the state as determined by a number of factors (HB 1514). If enacted, the legislation would also increase the maximum expenditure of funds from the Industrial Development Fund from $5,000 to $10,000 per new job created or per job retained up to a maximum of $500,000 per project. The bill is now in the Senate Committee on Finance.
_A bill that would improve North Carolina’s absentee voting laws, especially the ability of military and overseas voters to cast timely ballots, has been approved by the House (SB 253). If enacted, the bill would open up absentee voting 10 days earlier in even-numbered years to 60 days and not later than 50 days before the primary or any other election. In the case of municipal elections, voting would open no later than 30 days before an election. The bill will now return to the Senate for a concurrence motion.
Miscellaneous
_Legislation that would establish requirements for certification of persons performing lead-based paint renovation work in certain residential housing and child-occupied facilities has passed the House and is now pending in the Senate (HB 1151). If enacted, the legislation would also require accreditation of renovation trainers and renovation training courses.
_The General Assembly has ratified legislation that would establish the Drug, Supplies, and Medical Device Repository Program in the North Carolina Board of Pharmacy (HB 1296). The program would allow donations of unused drugs, supplies, and medical devices to uninsured and underinsured patients in this state. The donations would go to a free clinic or pharmacy and be redistributed. The bill will now be presented to Gov. Perdue to be signed into law.
_State lawmakers have passed a bill that will provide the same protections to search and rescue animals as those provided to law enforcement agency animals and animals that assist the disabled (HB 1098). Under the legislation, any person who knows or has reason to know that an animal is a search and rescue animal and who willfully kills that animal will be guilty of a Class H felony. The bill will now be presented to Gov. Perdue to be signed into law.
_North Carolina residents over age 18 would be allowed to get a motorcycle learner’s permit without taking a rider safety course under a bill that has been approved by both bodies of the Legislature (SB 64). Under the bill, the learner’s permit would be valid for 12 months and could be renewed for one additional six-month period. The bill will now return to the Senate for a concurrence motion.
Notes
_The Offshore Energy Exploration Study Committee, which was created by the General Assembly earlier this year, held a public hearing in Wilmington this week to hear public opinion on exploring for energy resources of the coast of North Carolina. The committee was established to consider the financial and environmental implications of oil and natural gas exploration off our state’s coast. The committee’s final recommendations are due in May.
Please remember that you can listen to each day’s session, committee meetings and press conferences on the General Assembly’s website at www.ncleg.net. Once on the site, select "Audio," and then make your selection – House Chamber, Senate Chamber, Appropriations Committee Room or Press Conference Room.
Prepared with the assistance of the Speaker’s Office of Communications
The House also took up a number of key bills this week. We have worked hard to pass legislation that will prevent racial profiling and reform North Carolina’s probation laws. We have also improved the State Fair Housing Act and our predatory lending laws. The following information highlights just some of the important work we have done here in Raleigh this week.
I hope you will contact me if you have questions, or if I can be of service. Thank you as always for your support and your interest in our state.
Public Safety
_State lawmakers have approved legislation that will reform probation in North Carolina by giving probation officers more tools to keep offenders from getting into further trouble (SB 920). If enacted, probation officers would be added to the list of persons who are allowed to access the juvenile records of certain offenders. The legislation would also make warrantless searches and drug screening regular conditions of supervised parole and would add additional controlling measures for offenders subject to intermediate punishment. The bill will now be presented to Gov. Perdue to be signed into law.
_State lawmakers have passed a bill intended to help prevent racial profiling by law officers by changing how they collect traffic statistics (SB 464). The legislation also provides that when a law enforcement officer arrests an adult who is supervising minor children, the minors must be placed with a responsible adult approved by the parent or guardian. If it is not possible to place the minor children with a responsible adult within a reasonable period of time, the officer shall contact the county department of social services. The bill now returns to the Senate for a concurrence motion.
_The General Assembly has ratified legislation that clarifies that people who use defibrillators in emergencies aren’t liable for damages unless they displayed gross negligence (HB 1433). The bill will now be presented to Gov. Perdue to be signed into law.
_The General Assembly has ratified legislation that would strengthen domestic violence laws by providing protection for the pets of abused persons. (SB 1062). Opponents of the bill say that the legislation is evidence of political correctness going too far. However, proponents of the legislation contend that the bill is meant to protect human beings more than animals. In domestic violence cases, there have been some instances in which abusers threaten violence toward a family pet as a means of manipulating their victims. In extreme cases, abusers have tortured or killed pets. The bill will now be presented to Gov. Perdue to be signed into law.
Protecting Homeowners
_The Statutory Homestead Exemption would be significantly increased under a bill that has been ratified by the General Assembly and sent to Gov. Perdue to be signed into law (HB 1058). The legislation increases the exemption from $18,500 to $35,000.
Improving Government
_The General Assembly has ratified legislation that will require all cities, counties and other local units of government to adopt a code of ethics for their governing boards (HB 1452). The legislation would also require members of those boards to receive education on ethics laws applicable to local government officials. The bill will now be presented to Gov. Perdue to be signed into law.
_The House has passed legislation that would expand the definition of economically distressed counties to include the 80 poorest counties in the state as determined by a number of factors (HB 1514). If enacted, the legislation would also increase the maximum expenditure of funds from the Industrial Development Fund from $5,000 to $10,000 per new job created or per job retained up to a maximum of $500,000 per project. The bill is now in the Senate Committee on Finance.
_A bill that would improve North Carolina’s absentee voting laws, especially the ability of military and overseas voters to cast timely ballots, has been approved by the House (SB 253). If enacted, the bill would open up absentee voting 10 days earlier in even-numbered years to 60 days and not later than 50 days before the primary or any other election. In the case of municipal elections, voting would open no later than 30 days before an election. The bill will now return to the Senate for a concurrence motion.
Miscellaneous
_Legislation that would establish requirements for certification of persons performing lead-based paint renovation work in certain residential housing and child-occupied facilities has passed the House and is now pending in the Senate (HB 1151). If enacted, the legislation would also require accreditation of renovation trainers and renovation training courses.
_The General Assembly has ratified legislation that would establish the Drug, Supplies, and Medical Device Repository Program in the North Carolina Board of Pharmacy (HB 1296). The program would allow donations of unused drugs, supplies, and medical devices to uninsured and underinsured patients in this state. The donations would go to a free clinic or pharmacy and be redistributed. The bill will now be presented to Gov. Perdue to be signed into law.
_State lawmakers have passed a bill that will provide the same protections to search and rescue animals as those provided to law enforcement agency animals and animals that assist the disabled (HB 1098). Under the legislation, any person who knows or has reason to know that an animal is a search and rescue animal and who willfully kills that animal will be guilty of a Class H felony. The bill will now be presented to Gov. Perdue to be signed into law.
_North Carolina residents over age 18 would be allowed to get a motorcycle learner’s permit without taking a rider safety course under a bill that has been approved by both bodies of the Legislature (SB 64). Under the bill, the learner’s permit would be valid for 12 months and could be renewed for one additional six-month period. The bill will now return to the Senate for a concurrence motion.
Notes
_The Offshore Energy Exploration Study Committee, which was created by the General Assembly earlier this year, held a public hearing in Wilmington this week to hear public opinion on exploring for energy resources of the coast of North Carolina. The committee was established to consider the financial and environmental implications of oil and natural gas exploration off our state’s coast. The committee’s final recommendations are due in May.
Please remember that you can listen to each day’s session, committee meetings and press conferences on the General Assembly’s website at www.ncleg.net. Once on the site, select "Audio," and then make your selection – House Chamber, Senate Chamber, Appropriations Committee Room or Press Conference Room.
Prepared with the assistance of the Speaker’s Office of Communications
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