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Source: PRESS RELEASE, 12/17/12
Gov. Bev Perdue this weekend submitted to Gov.-elect Pat McCrory her proposed biennial budget for fiscal years 2014 and 2015. The proposal adjusts the continuation/base budget and allows for expansion in several key areas.
The budget reflects several priorities that are important to North Carolina and are expanded investments Gov. Perdue has focused on during her term.
“Over the last four years, we took decisive action to head off severe financial crises that many other states have experienced,” said Gov. Perdue. “As the economy continues to recover, we need to preserve and maintain our long history of fiscal discipline, but at the same time, we must continue our tradition of investing in North Carolina and its nearly ten million residents.”
North Carolina is a national leader in fiscal management. Over the past four years, we have taken difficult actions that have allowed us to continue this tradition. Because of strong leadership and disciplined decisions, North Carolina continues to be one of only eight states to hold a AAA credit rating from all three major bond rating agencies.
State revenues are meeting projections and are expected to exceed expectations by fiscal year end, in addition to an un-appropriated fund balance of $213 million from the current fiscal year.
Early Childhood Education
Investing in education is critical to the success of our citizens and our state. We must prepare all of our students to thrive in the 21st century global economy, including our very youngest students.
· $8 million in recurring funds for assessment tools for grades 8, 10, 11 and 12 to guide the use of individualized student instructional strategies in English, writing, math and science.
· $2 million in recurring funds for student reading camps for students who did not demonstrate proficiency on the 3rd grade End-of-Grade (EOG) test.
· $50 million to expand NC Pre-K program by adding 9,175 all “at-risk” four-year-olds to high-quality pre-kindergarten classes.
· $15 million in funding to expand student access to the Smart Start program.
Jobs and Economic Recovery
Robust economic development investments will help ensure North Carolina’s continued transformation to a technology-driven economy.
· $5 million for the One North Carolina Small Business Program, a program that helps small businesses leverage and obtain highly competitive federal technology and innovation grants.
· $1 million for The Main Street Solution Fund is recommended for additional funding. This program provides grants to small communities for downtown economic. development projects, historic preservation and public and private improvement projects.
· $1 million for the Broadband Connectivity Incentive Grant Program to encourage private sector expansion of broadband service in underserved areas of the state.
Justice Reinvestment
Over the last two years, Gov. Perdue worked with the N.C. General Assembly to enact the Justice Reinvestment Act.
· The Governor recommends $13.5 million in 2013-14 and $20 million in 2014-15 to further implement the Justice Reinvestment Act by adding additional probation/parole officers and increasing post-release supervision.
Eugenics
North Carolina is the first state in the nation to advocate compensation for the victims of sterilization. Gov. Perdue strongly believes in compensation for verified victims.
· The Governor’s budget includes $10.2 million over two years to compensate 200 verified victims in the amount of $50,000 each.
Aging and Adult Services
Gov. Perdue feels very strongly about the need to continue investments in services for the aging that improve quality of life, elder care, and independence.
· $39.7 million for the adult care and group home resident populations. These funds will be used to pay monthly stipends to adult care and group homes for residents who are no longer eligible to receive Medicaid-reimbursable personal care services.
· $2 million is recommended for the Home and Community Care Block Grant for funding of services such as in-home aides and meals.
· $500,000 is recommended for Project C.A.R.E. and its Alzheimer’s support services.
· $200,000 is recommended for the Long Term Care Ombudsman Program.
Clean Water Management Trust Fund
The Clean Water Management Trust Fund (CWMTF) provides funds to protect and preserve the state’s natural resources and to clean up pollution in state waters. The CWMTF helps finance projects that specifically address water pollution problems and focus on upgrading surface waters, eliminating pollution, and protecting, preserving, and conserving unpolluted surface waters, including enhancement or development of drinking water supplies.
· $10.75 million for each fiscal year of the biennium. A recurring base budget does not exist for this program. If funds are not appropriated by the N.C. General Assembly for the 2013-15 biennium, there will be no continued funding for the CWMTF.
Industrial Commission
A recent review of the state’s handling of worker’s compensation claims recommended a number of changes.
· $1.5 million to implement policies, procedures and processes that identify noncompliant businesses and ensure they obtain and maintain required worker’s compensation coverage.
Salaries and Benefits
Gov. Perdue’s budget proposal provides the following salary and benefit provisions:
· A one percent salary increase for state-funded public school, community college, university system, and state agency employees effective July 1, 2012.
· A one percent cost-of-living adjustment to retirees in the Teachers’ and State Employees’ Retirement System and Consolidated Judicial Retirement System effective July 1, 2012.
· Contribute $36.9 million in each year of the biennium to the Teachers’ and State Employees’ Retirement System and Consolidated Judicial Retirement System.
· Funding to cover required State Health Plan premium increases of 1.9 percent in both years of the biennium.
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