subcommittee appropriation chairs released their budget recommendations
committee today with some Chairs indicating they would be willing to
amendments. At the
time of this writing
the Transportation Appropriations subcommittee does not have any
the recommendations in this update will be in the final House proposal. The Natural and
Appropriations subcommittee plans to reconvene after session today so
the items contained in this report may change.
House budget differs from the Senate most significantly in that it does
include any policy changes that do not have an appropriation impact. Therefore, there is
minimal restructuring and
reorganization of government contained in the House budget as compared
House budget items are highlighted in Red.
Natural and Economic Resources
- The Senate budget creates a new Water
and Land Conservation Fund and Grant Program which combines the former
Heritage Trust Fund and the Clean Water Management Trust Fund. The appropriation in the
first year of the
biennium is $12 million and the second year is $14 million. The members of the newly
board will decide how grants are allocated between land conservation
House budget moves the Clean Water Management Trust Fund under
the management of NCDENR rather than a stand-alone special revenue fund
the administration of an independent board.
The CWMTF direct appropriation is $4
million in the first year and $9
million in the second year. In
the Trust fund will receive 25% of the deed stamp tax proceeds received
State ($9 million) and special license plate funds ($4 million). These dedicated revenue
supported the Natural Heritage Trust Fund which is being eliminated.
appropriation for CWMTF (2013) at $10.75, the House budget proposal is
more favorable than the Senate budget but it provides more funding than
current year budget. PENC
House proposal for the CWMTF.
Senate budget creates a new Division
of Water Infrastructure in DENR which combines the former
Division of Water
Quality and the Division of Water Resources.
The budget also creates an Authority
to oversee grants and loans
provided by the new Infrastructure Fund.
One of the gubernatorial
appointments to the Authority shall be a
Professional Engineer from the private sector.
Water Infrastructure Authority will receive a General Fund
appropriation of $4
million in the first year and $5.5 million in the second year to fund
sewer database and planning and supplemental grants to assist local
WIA will also
administer the Drinking Water and Clean Water Revolving Funds (state
match is fully
funded) and the Community Development Block grant Infrastructure Grant
(all federal funds).
House budget differs
from the Senate
in that it does not create a new Division of Water Infrastructure
in DENR and does not create a new Authority.
The Revolving Funds, for which the match
is fully funded, will be
administered in the same manner as they are currently as will the
Senate budget creates a new Division within
the Department of Commerce
for the purpose of addressing the economic development needs of the
rural Counties. The
Rural Center, as
we know it, will be eliminated but its duties and funding will be
under the newly created division in Commerce.
new Rural Economiv Development Division will be responsible for
administering the economic development grants and loans awarded by the
Rural Infrastructure Authority.
Rural Economic Development Division will receive an appropriation of $7
in the first year and $10.4 million in the second year of the biennium. The current annual
appropriation is $21
million. Up to 3%
of these funds will
cover administration. Additionally
Division will oversee the Industrial Development Fund – Utility Account
Community Development Block grant for Economic Development funds
FTEs and additional funding from the regional offices will be
the Rural Economic Development Division in an effort to enhance
presence in rural areas.
House budget keeps the
Rural Economic Development Center intact compared to the Senate budget
would have established rural economic development programs under the
of Commerce. The
Rural Center is funded
at the current level of $16.6 in the first year and an additional $3.4
dollars in the second year. The
Center may spend $2.2 million on administration in the first year and
million in the second year. Of
remaining amounts, the Rural Center
spend $10.8 million in the first year and $13 million in the second
year on the
Jobs Infrastructure Program and $3.6 million in the first year and $4.3
in the second year on the Critical Needs Program.
this time, with the
ongoing reorganization of the Department of Commerce, there is not
information to determine if rural economic development programs would
administered under the independent Rural Center or under the Department
PENC takes no
position on how these grant programs are administered.
However, PENC supports the House
it relates to the funding proposed for this purpose.
- The Senate budget transfers the Energy
office from the Department of Commerce to the Department of Environment
Natural Resources under the Division of Energy, Mineral and Land
House budget does not transfer the Energy Office to DENR.
takes no position on
the State Energy Office.
DOT Privatization. The
Senate budget seeks to further increase
the outsourcing of DOT’s Preconstruction and Technical Services Units.
year’s adopted budget mandated that NCDOT increase its outsourcing to
requirement would remain in effect.
However, this would exclude the cost of
activities performed by the Turnpike Authority, the Structures Design
Management unit, and the Bridge Program.
Excluding these activities would
increase the privatization percentage
by an additional 5%.
the Senate budget requires that the Right of Way, Project Development
Environmental Analysis and Roadway Design units increase their total
outsourced activity by 5% in 2013-14 and by an additional five percent
following year from the current baseline from 2012-13.
House budget increases
NCDOT’s outsourcing of all activities performed by the Preconstruction
Technical Services units to 65% in the first year and up to 70% the
year compared to the Senate that proposed 60%. Like the Senate proposal, it excludes
the cost of activities performed
by the Turnpike Authority, the Structures Design and Management unit
Bridge program bringing the total outsourcing requirement to 70% in the
first year and 75% in the second year.
budget requires that the Right of Way, Project Development and
Analysis units increase their outsourcing by 7.5 percent in both years
to the Senate that proposed 5.0%.
House version requires that a minimum of 15 filled positions be
meet the requirements of these provisions.
supports the additional
outsourcing requirements recommended by the House.
House budget also would
increase the number of design build projects by 5% each year based on
cost of construction compared to the Senate which did not make any
recommendations for increasing design build projects.
- The Strategic Mobility Formula (HB
allocations have been included in the Senate budget proposal. Some of the differences
from the House
version of HB 817 include:
Garden Parkway and Cape
Fear Skyway can only be available for Statewide funding if they become
interstate designated routes. The
Route” is eligible.
- “Economic competitiveness” is deleted
from the funding criteria at all levels:
Statewide, Regional and Division.
- Public transportation and passenger
rail cannot be considered at the Regional Level – only at the division
- No state money is included for bike
pedestrian improvements but Powell bill money can be spent on these
- STPDA funds received by MPOs
(frequently used for Bike/Ped projects) for regions with over 200,000
population are included in the funding allocation.
House budget did not
include any provisions, other than the shifting of funds, related to
Mobility Formula, preferring instead for this legislation to be enacted
stand alone bill – HB 817 which is currently being deliberated in the
the House budget does
not contain any reduction to the bike and pedestrian capital project
although the Regional Bicycle Planning Grant Program is eliminated. It is assumed
that the House version of HB
817, and its exemption of STPDA from the formula allocation, reflects
intent on this issue. Their
with the Senate on this item will be worked out in the House/Senate
committee that will ultimately be appointed to work out the differences
Transportation items include:
million is appropriated from the
Highway Fund for a Shallow Draft Navigation Channel Dredging Fund. The
House budget recommendation is the same.
- Fees for Electric/Hybrids have been
included for a total of $1.5 million per year. The
House budget does not include fees for Electric/Hybrid vehicles.
NCDOT staff by 339 positions –
all of which are vacant.
Reduces NCDOT staff by 631 vacant positions.
- Adds $3.1 million in the first year
$4 million in the second year for Economic Development. The
House budget appropriates $10.3 million in the first year and
$4.0 in the second year for Economic Development.
$6.5 million in the first year shall
for aviation related economic development projects.
- Allows for tolling as long as it does
not reduce the number of existing general purpose lanes. Tolling
is not addressed in the House budget.
the Turnpike Authority Board
but creates a Turnpike Committee of the NCBOT.
Turnpike Authority Board is not eliminated in the House budget.
Other Items contained in the
House Transportation budget and not the Senate:
perform a life cycle cost analysis and report back to the Joint
Transportation Oversight Committee no later than September 1, 2013. The Senate did not make a
- Allows counties to
use sales tax revenue for roads – similar to Pennies for Progress in
- Authorizes a study
of the Global Transpark infrastructure and NC Ports Authority.
Freight Rail and Rail Crossing Safety Improvement Fund in the amount of
million in the first year and $6.4 million in the second year.
The fund receipts are derived from
dividend payments issued by the NC Railroad Company and department-wide
recommendations are not final and are subject to amendments by the full House
appropriations committee which begins meeting on Tuesday. Therefore, if there are items you would like
to see addressed or changed, please let your House members know immediately and
copy me on your e-mail firstname.lastname@example.org.
You may find the list of your House of Representatives here: http://www.ncga.state.nc.us/gascripts/members/memberList.pl?sChamber=House.
updates on the House budget will be provided early next week so that you will
have time to compare the House and Senate budgets.
status report on bills we are working on or monitoring, including various tax
proposals, will also be provided on
feedback and input is always welcome.