NCACC Agriculture Steering Committee Legislative Update October 2013

AG Goals AG-1: Adequately fund agricultural research and extension services. – Support legislation to fund the agricultural and research extension offices through the University of North Carolina system, principally at N.C. State University and N.C. A&T State University. Extension offices are located throughout the state and facilitate programs that assist residents in a wide variety of programs focused on agricultural economic development. Adequate funding of these programs benefits the agriculture economy in every county. AG-2: Support and promote conservation of working lands and farmland preservation. – Support legislation to promote and preserve working farmlands by including these lands in the state tourism plan, by retaining the current authority for the present use value system, by maintaining funding for the Ag Development and Farmland Preservation Trust, and by exploring the impacts of transfer of development rights. 2

New NC Laws Affecting Counties S321 Inmate medical costs H343 Court Fee Amendments H664 Cell Tower Local Approval H834 State Human Resource Changes S372 Omnibus County Legislation H74 Regulatory Reform 3

More new laws S76 Hydraulic Fracturing H857 Design-Build Authorization S305 Vehicle Property Tax Fees H589 Election Reforms S208 LME/MCO Advisory Board H392 Public Assistance Benefits 4

NC State Budget Impacts on Counties & Communities 5

Key County Budget Issues Lottery Funding – Statutory language guaranteeing 40% of lottery funds to counties eliminated – Approp. allocation maintained at $100 M Article 44 Hold Harmless payments – Extends for 1 yr at 50% $4 M Federal HAVA Funds – State MOE in yr 2 6

Public Education Restores $376 million LEA flexibility cut – Reduces teacher, instructional support, & supplies allotments by $310 million Eliminates teacher tenure – Replaces w/ 1-4 yr performance contracts Increases SRO funding & requires new safety procedures – Authorizes sheriffs to establish volunteer SRO 7

Human Services Rebases Medicaid funding by $484 M – 2013 & 2014 cost overruns consume surplus – Directs DHHS to develop Medicaid reform plan Increases local psych bed funding & creates telepsychiatry program Increases county food & lodging fees 8

ENR & Commerce Eliminates Rural Center funding, redirects Golden Leaf to general fund, phases out regional ED funding – Creates Rural Economic Div in Commerce & local government grant program – Creates Water Infrastructure Authority in DENR for all water & wastewater grants pgms. – Authorizes Commerce to devise public/private partnership for ED 9

Justice & Public Safety Replaces state lab equipment, enhances DNA testing, expands toxicology capabilities Reinvests prison closure savings for probation & parole Increases magistrates to enable 4/county Upgrades VIPER 10

Tax Reform 11

Tax Reform H998 Slightly broadens tax base – Applies to service warranties – Includes amusements, movies – Eliminates sales tax holidays Leaves intact county rate & county refund

Tax Reform H998 Caps non-profit refunds at $45 million – $13.3M for local – Applies to no NP now County impact = +$10 million in ; all winners; $30 million when fully implemented

Tax Reform H998 Revenue Laws to Study: – Authority of cities and counties to impose privilege tax – Impact of eliminating NP sales tax refund – Feasibility of expanding sales tax base to add. services – Simplification of franchise tax

Waiting in the Wings… S287 Electronic Legal Notices S236/H726 School Construction S463 Jail Dormitory Standards H585 PREA Compliance H648 Second Primaries 15

During the Interim Studies! – Local environmental ordinances (S74) – PILT (S372) – DMV Tag Agents (S305 & Budget Act) Interim committees Governor’s Transportation Plan Development 16