NC Budget Update
by Cady Thomas
Yesterday evening, the Senate released their proposed budget and heard the bill and amendments in the Senate Appropriations and Base Budget Committee this morning. The Senate Finance Committee will hear the finance portions tomorrow at 8:30am which include the tax changes and reductions in H 334 which passed the Senate last week.
The overall Senate budget spending is just below the $25.7 billion spending number agreed to between the House and Senate.
Of note for CRMCA are the following sections and provisions:
- Funds the Be Pro Be Proud Program to be run through the Department of Labor (p203 of S105) and is funded at $5 million in FY 21-22
- DOT Funding Starts on J 32 of the Money Report and includes a total budget of $2.63 billion in FY 21-22 which is a 12.6% increase.
- Highway Trust fund will receive $1.6+ billion in FY 21-22 and $1.7+ billion in FY 22-23 which are increases of 26.1% and 11.4% respectively.
- Adds $300 million in nonrecurring funds to the DOT Reserve in FY 22-23
- DOT Revenue forecast is up 17.2%
- Highway Maintenance is funded at $1.8 billion (14.8% increase)
- Bridge Repair = $344 million
- Pavement Projects = $680 million
- Resurfacing = $570 million
There are also several special provisions relating to NCDOT which were included based on State Auditor Beth Wood’s suggestions. They are:
- Creates a budget office within DOT (p376 of S105); and
- Eliminates the requirement that DOT have a cash balance below $1 billion in order to issue bonds for just FY 21-22 (p377 of S 105).
The Senate is expected to pass their budget by the end of this week and then the House will start their process. Once the House and Senate approve a final budget, it will go to the Governor who has not yet commented on the Senate’s budget. However, Governor Cooper’s proposed budget was $27.3 billion and included Medicaid expansion.