2019-2021 Senate Budget

NC Senate 2019-2021 Budget Proposal

The Senate approved its version of the 2019-2021 fiscal biennium state budget this week, which included many county priorities. The Senate’s budget plan provides new funds, in addition to the lottery, for public school and community college capital projects, repeals the ability for school boards to sue counties over appropriations to the public school capital outlay fund, raises the amount of funds available through the state’s broadband grant program, and requires collection of sales tax by online marketplace retailers. Leaders from the House and Senate will shortly begin deliberations to reconcile each chamber’s respective budget plans, and present a compromise spending plan to the Governor, most likely by the end of June.

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  1. School Capital Revenue
  2. K-12 Public Schools
  3. Community Colleges
  4. Justice and Public Safety
  5. Broadband

State Capital Infrastructure Fund

  • Authorizes $1.67 billion from State Capital and Infrastructure Fund to K-12 schools for new construction, renovations and repairs through the 2028-29 fiscal year
  • Sets out the maximum amount of SCIF proceeds each school district could receive through 2028-29
  • Appropriates $145.4 million in 2019-20 and $121.1 million 2020-21
  • Dollar for dollar matching requirement for Tier 3 counties for new construction; match not required for repairs and renovations
  • Directs the Department of Public Instruction to develop a priority list of projects and capital needs to administer the proceeds from the newly established K-12 Building Fund and to prioritize projects according to greatest need and the ability for disbursed funds to be expended and projects completed expeditiously
  • If a local school district is not in compliance with K-3 class size law, funds received must be used for capital expenditures needed to comply with the K-3 class size law
  • Funds received may not be used to retire debt in existence prior to July 1, 2019
  • Authorizes $500 million from State Capital and Infrastructure Fund to community college system for new construction, renovations and repairs through the 2028-29 fiscal year
    • Sets out the maximum amount of SCIF proceeds that community colleges could receive through 2028-29
    • Appropriates $46.6 million in 2019-20 and $36.3 million 2020-21

Lottery

  • Allocates 27% of the total lottery revenue for school capital purposes as follows:
    • $100 million each biennium for the Public School Building Capital Fund
    • $95 million in 2019-20 and $109 million 2020-21 for the Needs-Based Public School Capital Fund
  • Raises amount Lottery may use for advertising from 1% to 1.5% of total annual revenues
  1. Health and Human Services
  2. Agriculture/Environment
  3. Economic Development
  4. Finance
  • Appropriates $210 million from the Medicaid Transformation Reserve to prepare for the transition to managed care for Medicaid beginning November 1, 2019 in 27 counties and February 1, 2020 in the remaining 73 counties; Funds will go to payout of remaining fee-for-service claims, program design, enrollment broker requirements, NC FAST and NCTRACKS upgrades, data management, Prepaid Health Plan readiness, and other administrative costs
  • Delays deployment of child welfare and aging components of NC FAST in counties that are not pilot counties until at least October 1, 2019
  • Directs funds for NC FAST upgrades, including 24-hour/7-day access
  • Increases the recurring reduction to LME/MCOs by $15 million each year of the budget
  • Increases the state-county special assistance personal needs rate and the foster care and adoption assistance rates; Counties pay 50% of the cost of these programs
  • Provides $70,000 each year for continuation of the McDowell County community paramedicine pilot program
  • Directs $40 million in each year of the biennium to purchase additional local inpatient psychiatric beds or bed days
  • Directs $300,000 to establish a two-year child welfare and behavioral health pilot project for children in foster care in Davie, Forsyth, Rockingham and Stokes counties
  • Directs $750,000 each year to DSS to provide 50% match for new quality assurance positions in participating counties