With the state’s citizens and businesses suffering from the effects of the international financial crisis, House members acted decisively this week by approving our version of the budget. The plan we propose will create jobs, encourage economic activity, provide job training and higher education opportunities and protect core services, such as health care for the most vulnerable residents. We will also continue our push to conduct government business more transparently, to spend wisely and to eliminate waste and fraud. The following information highlights just some aspects of the budget that address these important issues. These items are still subject to change as debate in our chamber continues and the bill then moves on to conference committee. I hope you will find it useful.
Thank you as always for your interest in state government. If you have any questions about this information or anything else that I can help with, please contact me. I am always glad to be of service.
Jobs
_Tax credits for small businesses –
_ Tax Benefits for Investments in Small Business - $3.6 million.
_ Tax Benefits for Small Businesses That Provide Health Insurance – ($250/employee) - $7.2 million.
_ Tax Benefits for Putting People Back to Work ($1000/employee for businesses with 25 employees or less) - $7.2 million.
_ Provides additional funding for the One NC Fund to enhance the competitive position of North Carolina when recruiting national and international business and industry projects. Three percent of these funds shall be used for small business expansion - $10 million.
_ Funds the One NC Small Business Fund program, which provides matching grants to businesses that qualify for federal incentives funds - $1.5 million.
_ Appropriates funding for Job Maintenance and Capital Development Fund for employment in Tier 1 counties - $5.5 million.
_ Provides funding for the Main Street Solutions Program and the creation of one two-year time limited position to administer the program. This program provides grants to active Main Street Communities and designated micropolitans with populations between 10,000 and 50,000 people. Grants are to be used to support downtown economic development, historic preservation initiatives, and other public and private improvement projects that will support small businesses and job creation - $2 million.
_ Provides funds to help create additional export opportunities for NC companies in Asian and South American markets and to increase North Carolina investment interest from Asian and South American companies - $200,000.
_ Provides funding for marketing North Carolina as a tourist destination - $1 million.
_ Provides funding to support the seven Regional Economic Development Commissions - $5 million.
_ Provides funds for the Biofuels Center to develop North Carolina's biofuels industry - $5 million.
_ Provides nonrecurring matching funds for a US Department of Energy grant for energy research and green jobs - $500,000.
_ Provides nonrecurring funding for the Indian Economic Development Initiative - $100,000.
_ Provides funds for small business loans for those who have limited access to credit - $750,000.
_ Provides additional funding for the Biotechnology Center to develop the State's biotechnology industry - $4.27 million.
_ Provides additional funding for the Rural Center's Building Reuse and Restoration Program to strengthen the capacity of rural communities to compete for and attract new and expanding businesses. Funding for small-scale regional community development projects is also included - $3.13 million.
_ Provides funding to the Rural Center to continue the Small Business Assistance Fund - $1 million.
_ Provides funding for the Rural Center to provide assistance to farmers via grants up to $20,000 in three areas: 1. Improving energy efficiency on the farm; 2. Developing new markets; 3. Developing new products - $1 million.
_Provides funding for Got to Be NC Marketing to promote North Carolina agricultural products - $300,000
Education
_ Prevents layoffs of any instructional personnel in K-12 by adjusting the lottery receipts budgeted for Classroom Teachers - $126 million.
_ Restores proposed cuts for assistant principals - $4.5 million.
_ Provides on a nonrecurring basis for the purchase of replacement textbooks for emergency situations. The State Board of Education shall develop rules and guidelines for the allocation of these funds - $5 million.
_Funding for UNC Need-Based Financial Aid - $12 million
_Full funding for community college enrollment growth to be used to hire additional faculty and student support staff - $85 million
_ Eliminates 26 positions in order to find efficiencies and reduce redundancy in the Department of Public Instruction Technology Services area. The reduction includes departmental NC WISE positions, Offices of the Chief Information Officer, Chief Technology Officer, Technology Business Services, and Project Management. NC WISE has been deployed, reducing the need for personnel – ($2.8 million).
Fiscal Responsibility
_ Abolishes 47 positions in the UNC system that have been vacant two years or longer – ($2.5 million).
_ Reduces funds available within the Division of Child Development in anticipation of saving money related to better management and tracking of child care subsidy expenditures. The new system will reduce expenditures associated with fraudulent and inaccurate payments – ($6 million).
_ Eliminates State appropriation for the purchase of vaccine for which health care providers and local health departments should be billing health insurers for reimbursement. North Carolina health insurers reimburse for the full series of standard immunizations recommended by Centers for Disease Control and Prevention (CDC) and the American Academy of Family Physicians, as well as those required by the North Carolina Immunization Program – ($15.9 million).
_ Provides savings in overall Medicaid expenditures through the expanded efforts of the Community Care Network of North Carolina (CCNC). DHHS contracts with CCNC to manage use of Medicaid services. Savings will be generated by expanding CCNC's care management programs in hospital discharge, mental health; palliative care, and pharmacy. The improved Informatics system will enhance data integration, analytics, and reporting, increasing performance and cost savings – ($26 million).
_ Generates savings by implementing various pharmacy program improvements, including collecting drug rebates on certain prescription drug claims; stopping reimbursement for lost prescriptions; requiring prior approval on rand drugs when 'medically necessary' is written on the prescription; creating a specialty drug network for dispensers of certain high cost drugs; requiring prior approval on all requests for the drug Synagis; and eliminating the ineffective FORM pharmacy program – ($5.6 million).
_ Generates savings by adding mental health drugs to the Preferred Drug List (PDL), which were previously not part of the PDL savings, and also requires prior authorization but only for offlabel prescribing of mental health drugs – ($10 million).
_ Eliminates Medicaid reimbursement of 'never events' in hospital inpatient settings. 'Never events' are certain types of medical issues that develop or are acquired while a person is in a hospital, but should have been prevented. The policy change brings Medicaid in line with Medicare reimbursement – ($5 million).
_ Generates savings through new Program Integrity initiatives, including Medicaid SWAT teams for on-site investigations, strengthening Medicaid fraud laws, innovative technology to detect fraud and abuse, and prepayment reviews for questionable providers – ($36.2 million).
_ Generates savings by doubling the Medicaid Investigative Unit staff at the AGO to expand the prosecution of Medicaid fraud and abuse. Additional staff will ensure increased prosecution and additional Medicaid funds recovered from fraudulent providers – ($1 million).
_ Consolidates the Division of Pollution Prevention and Environmental Assistance, the Customer Service Center, and the Small Business Ombudsman into one Division, the Division of Environmental Assistance and Outreach. This consolidation eliminates four positions – ($230,000).
_ Reduces the appropriation for medical services for inmates based on capping fees paid as a percentage of billed charges. This reduction applies to inpatient and outpatient hospital services as well as professional services – ($20.5 million).
Accountability
_ Reduces personnel and operating expenses for aircraft operations. This reduction eliminates two pilot positions and one mechanic position. The sale of 10 eliminated aircraft is expected to result in over $1 million in one-time revenue – ($1.2 million).
_ Eliminates the Marine Fisheries Division's three helicopters and associated operating expenses in accordance with the recommendations from the Program Evaluation Division's Study of State Aircraft. The aircraft will be sold, generating one-time revenue of $35,000 – ($60,218).
_ Provides funds to expand the Medicaid Fraud Criminal Investigation Team. The expanded unit will consist of sworn investigators, attorneys, program assistants, financial investigators, and administrative support personnel. This investigative unit is responsible for obtaining convictions of community service providers that commit fraud, recovering restitution and civil penalties for the benefit of the Medicaid Program and the Civil Forfeiture Fund, and deterring fraud – $3 million.
_ Appropriates funding for four positions and operating expenses to ensure the State Ethics Commission has resources for design, implementation, training, and technological support for an online/electronic personal and financial disclosure system (Statement of Economic Interest, or SEI), and to meet the gift ban requirement - $547,600.
_ Provides funding for the Good Government package, including an attorney and software development - $450,000.
Notes
_Citco Fund Services (USA) Inc. plans to create 258 jobs in Mecklenburg County over the next five years. The company will invest $3 million to open its first North Carolina office thanks in part to a state Job Development Investment Grant.
_The North Carolina Department of Cultural Resources is proud to announce three fun-filled days – 2nd Saturdays – in June, July & August, at all NC State Historic Sites and Museums. Over 100 free events have been planned across the state on June 12th, July 10th and August 14th. 2nd Saturdays will combine arts, music and heritage with food, agriculture and fun at all 37 museums and historic sites. For more information about events and locations, please visit: http://ncdcr.gov/2ndsaturdays-venues.asp
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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Regular Reports On What Is Happening In the NC General Assembly of Interest to citizens in District 51 by Representative Jimmy Love
