2017 IPMA

Conference Legislative Update

Hugh Johnson, Government

Relations Coordinator

Will Brooks, Civic Engagement &

Grassroots Initiative Associate

1

Outline

• Executive Branch Changes• State of General Assembly• Key Issues and Legislative Goals• Questions

Governor Roy Cooper• Has sworn-in 8 of his 10 Cabinet members• Secretaries for Revenue & IT remain• Special Session legislated confirmation

process has been challenged in Court Senate hearings ongoing Some consideration of subpoenae

Governor’s Cabinet• Dept. of Administration, Machelle Sanders• Dept. of Commerce, Tony Copeland• Dept. of Environmental Quality, Michael Regan• Dept. of Health and Human Services, Dr. Mandy

Cohen• Dept. of Natural and Cultural Resources, Susi

Hamilton• Dept. of Public Safety, Erik Hooks• Dept. of Transportation, Jim Trogdon• Dept. of Veterans and Military Affairs, Larry Hall

2017 State of the

General Assembly

5

2016 Elections

6

Election results

• N.C. Senate– Majority gained one seat for 35-15 margin

• N.C. House– Majority lost one seat for 75-45 margin

• Governor– Won by Democratic former AG Roy Cooper

– December legislation established confirmation process for cabinet nominees; currently being challenged in court

Demographics

• 40 women (27 House, 13 Senate)

• 35 African Americans (24 Senate, 11 House)

Occupations by Industry

• 61 business/sales (47 House, 14 Senate)

• 33 retired (24 House, 9 Senate)

• 33 law (22 House, 11 Senate)

• 12 health care (7 House, 5 Senate)

• 10 real estate (7 House, 3 Senate)

• 8 education (2 House, 6 Senate)

• 5 farming (4 House, 1 Senate)

Time Served

• 33 freshmen (24 House, 9 Senate)

• 16 sophomore (11 House, 5 Senate)

• Longest tenured Senator: Phil Berger

• Longest tenured Representative: Mickey Michaux

GA by the numbers

• 5 minister (4 House, 1 Senate)

• 3 self-employed (House)

• 2 construction (House)

• 2 homemaker (House)

• 1 financial/banking (House)

• 1 insurance (Senate)

Military Experience

• 6 Air Force (2 House, 4 Senate)

• 16 Army (10 House, 6 Senate)

• 5 Marine Corps (House)

• 7 Navy (6 House, 1 Senate)

County Caucus Members

• 31 former Commissioner (25 House, 6 Senate)

• 2 former NCACC Presidents

• 11 Former NCACC Board members

2017-18 County Caucus Chairs

County Government Experience

Jim Davis(Cherokee, Clay,

Graham, Haywood, Jackson, Macon, Swain)

Josh Dobson(Avery, McDowell,

Mitchell)

Becky Carney(Mecklenburg)

Valerie Foushee(Chatham, Orange)

Former County Commissioners

Newly Elected to House

Beverly Boswell

(Beaufort, Dare, Hyde

Washington)

Terrry Garrison

(Granville, Vance,

Warren)

Past President

Kevin Corbin

(Cherokee, Clay,

Graham, Macon)

Former County Commissioners

Newly Elected to House

Larry Potts

(Davidson)

John Sauls

(Harnett, Lee)

Former County Commissioners

Newly Elected to Senate

Dan Bishop

(Mecklenburg)

Cathy Dunn

(Davidson,

Montgomery)

Overarching 2017 Issues

12

Redistricting• Federal order last year called for redrawn state legislative districts,

new elections in 2017

• Temporary stay on order issued in Jan. 2017

• New districts, elections on hold until U.S. Supreme Court decides

whether to hear case

Overarching 2017 Issues

13

HB2

• Pressure to resolve issue

Budget

• Senate begins process this biennium

• Consensus revenue forecast predicts $550 million surplus

Overarching 2017 Issues

14

Regionalism

• Economic efficiencies

• Utility systems

• Economic development

2017 Session—What’s Next?

State Budget

• Governor’s 2-year budget

• Senate takes budget lead this biennium

• Projected $550M revenue surplus for the

fiscal year ending June 30

Key Issues

• Redistricting & Possible 2017 Election

• HB2

• Medicaid Expansion

• Education Funding

• Raise the Age

Advocacy Goals

County Top 5 Goals - #1

• PE-1: Seek legislation to establish

a new state-county partnership to

address statewide public school capital challenges--including but

not limited to maintenance,

renovation, construction and

debt--through a dedicated,

stable funding stream that is

consistent from county to county

and sufficient to meet the school

facility needs of all 100 counties.

County Top 5 Goals - #2

• PE-2: Seek legislation to repeal the statutory authority under N.C. Gen. Stat. 115C-431(c) that allows a local school board to file suit against a county board of commissioners over county appropriations for education.

County Top 5 Goals - #3

• TF-1: Support efforts to preserve

and expand the existing local revenue base of counties, and

oppose efforts to divert to the

state fees or taxes currently

allocated to the counties to the

state. Oppose efforts to erode

existing county revenue streams

and authorize local option

revenue sources already given to

any other jurisdiction.

County Top 5 Goals - #4GG-1: Support increased

state funding for

transportation construction and maintenance needs, and

support legislation to ensure

that the STI funding formula

recognizes that one size does

not fit all and that projects in

both rural and urban areas

are prioritized and funded.

County Top 5 Goals - #5

JPS-1: Support legislation

and funding to Raise the

Age of juvenile jurisdiction from 16 to 18 with the exception of

felony crimes.

Other Key Goals

HHS-1: Support increased state funding for behavioral

health services and facilities at the state and local level,

including dedicated resources for

community paramedicine projects.

Support Medicaid reimbursement to

EMS for behavioral health transport to crisis centers and structure

appropriate county participation in

behavioral health program governance.

Other Key Goals

GG-3: Seek legislation, funding, and other efforts

to expand digital infrastructure/broadband

capability to the un-served and under-served areas of the state.

Other Key Goals

GG-5: Support legislation to grant all counties

the option to provide notice of public hearings

and other legal notices through electronic means in lieu of required publication in any newspaper.

Other Key Goals

HHS-4: Support

legislation to align

oversight standards for

lawful body piercing with lawful tattooing.

JPS-4: Support

legislation increasing

penalties for

tattooing without a

permit.

Other Key Issues

Pension and Retirement Bills• H284—25 Year LEO Retirement Option

• Flexibility for LEO retirement after 25 years of service w/certain

reductions

• New age, year and % distributions for LEO take effect for retirements after January 1, 2018

• At the discretion of local government, they may provide a

separate separation allowance for LEO

• Explained to us a “cost neutral”

• S199—Law Enforcement Officer Retirement/25 Years

• Allows for unreduced retirement at 25 years for LEO• Effective January 1, 2018• $30M cost for LGERS employers

Other Key Issues

Pension and Retirement Bills• H176—Pensions Integrity Act-AB

• Treasurer’s office bill

• Expands fraud investigation office to include compliance activities “to help detect errors and ensure compliance and full accountability in the use of pension funds”

• Expands payment options and creates a longer interest-

inclusive option for funds owed under anti-pension spiking plans

• Amends retiree health deduction rules and grandfathers local

governments w/Agency approval prior to 1/1/17

• Governor’s budget• State employees raise greater of 2%/$800 and $500 bonus• 1.5% COLA for retirees and $7M to allow state LEO to retire at 25

2017 Municipal Advocacy Goals

Grow Jobs• Target investments to industries/areas of state that benefit the

most

Stabilize Municipal Finances• Increased revenue options

Build Infrastructure• Prioritize w/s, transportation funding

28

Multi-year effort to increase

• Legislations to authorize municipal-only quarter-cent sales tax introduced at League’s behest last session

29

• As spending pressures increase, property tax remains sole locally-controlled source of revenue

Municipal Revenue Options

Water/SewerFees

30

Quality Built Homes Inc. v. Town of Carthage

• N.C. Supreme Court ruling last summer potentially invalidated many water/sewer fees across the state

• Just before New Year Court of Appeals ruled that fees must be repaid going back 10 years

• In addition to prohibition going forward on fees covered by ruling

31

Utility Fees

Continue talking to legislators

• League has been raising issue with legislators, but local contact will make the difference

• Seeking solution both to fee issue going forward, and statute of limitations

• Contact Will Brooks (wbrooks@nclm.org) if interested in coming to Raleigh to discuss this and other issues

32

Utility Fees

• Asheville water case

• Issues regarding differing rates for inside v. outside customers

• Potential outside approval of municipal utility rates

• Infrastructure needs –incentivize mergers or regionalization

33

Other Utility Issues

• Treasurer aware of recent returns by system investments

– System has not recently met projected rate of return of 7.25 percent – Treasurer has committed to League to address any changes in projection gradually

– NOT related to unfunded liability in State Health Plan

– LGERS Board voted in January to follow League-supported contribution stabilization policy and increase employer contribution rates by 25 basis points

34

Retirement Systems

• Local debt issuances subject to referendum

• Local government “watch list”

35

Other Fiscal Issues

• Law enforcement officer retirement/25 year

• SB 199 Full retirement benefit

• Special separation allowance for firefighters

• HB 340

• Akin to current law enforcement officer benefit

• Governor Coopers’ recently released budget would spend $7 million a year to let state-employed officers move their retirement up from 30 to 25 service years

• If enacted statewide, it would require an annual $30M contribution by local govs

• Cooper urging legislators to change workers compensation law for firefighters

36

Related Bills/Proposals

37

Broadband

HB 68 / SB 65 BRIGHT Futures Act• Intended to provide increased broadband access

across state

• Establishes “BRIGHT” – broadband, retail online services, the Internet of things, GridPower, health care, and training/education – markets

• Amends definition of P3

• 2016 Legislation for Law Enforcement Recordings– Effective October 1, 2016:

• Police recordings are not public or personnel records• Court order required for full release of recordings, with some exceptions

38

Police and Community

• Changes could be coming in 2017- Police-involved shooting incidents led to

more scrutiny of law- League members have suggested changes

to the existing law

• League held forum in August on best practices in law enforcement training- At request of N.C. Legislative Black Caucus

HB 64 Municipal Elections in Even-Numbered Years

• Would move all municipal elections to even-numbered years by 2022

• Supporters argue it saves cost & increases voter participation

• League Goal: Support legislation that provides for municipal elections to be determined by local municipal authority.

39

Municipal Elections

SB 94 Elections Transparency • Would make all state elections

– including municipal elections – partisan as of Jan. 1, 2018

About Here We Grow

www.herewegrownc.org

40

41

Town Hall Day

County

Assembly

Day

http://www.ncacc.org/168/County-Assembly-Day

Wednesday, May 10

Questions and Thank you!

Hugh Johnson,

hugh.Johnson@ncacc.org

(919) 715-7659

Will Brooks,

wbrooks@nclm.org

(919) 715-8154