Covenant with North Carolina ’s Children
Bi-weekly Update
July 8, 2008
*Due to the Fourth of July holiday
In this update:
NC Child Care Coalition 2008 Session Update
Juvenile Justice Update
NC Child Care Coalition 2008 Session
Alert # 13
Monday July 7, 2008
STATE BUDGET AGREEMENT REACHED LATE ON JULY 3
Background
Shortly after both the State House and Senate adjourned on Thursday, July 3 for the Holiday weekend, President Pro Tem Marc Basnight and Speaker Joe Hackney met for the last time to iron out a few items in the budget where House and Senate budget conferees could not find a consensus. When agreement was reached the Conferees signed on to what is called the Conference Report on the Budget and then left town. Note: Both the “Money” Report and the budget is on-line. The end of this alert will direct you to the two documents.
What Happens Next?
The adoption of the Conference Report for the $21.3 billion budget plan for fiscal year 2008-2009 will receive its first of two votes on Monday night, July 7 (the second and final vote will be the next day and then the budget will be sent to the Governor for his signature). Note: There can be no changes to the Conference Report on the floor of the House or Senate. It is just a straight up or down vote (with speechifying, of course).
What Happened with our N.C. Child Care Coalition Priorities for 2008?
On a positive note, three of our four priorities (Smart Start, T.E.A.C.H., and the child care subsidy waiting list) all received higher funding, although increased child care subsidy funds to serve more families from the waiting list were accomplished through federal block grant transfers; not increased state general revenue funds. The one item not included in the budget was any change in child care subsidy market rates. Without significant support for new state subsidy funding, a rate increase was next to impossible this year. We will continue to work on this item. Here are the details on our issues:
Smart Start: An additional $500,000. In the end, the Conferees took the lower amount, the House position. Note: The $500,000 is added to the new $4+ million appropriated for 2008-009 from the long session budget. The line item for Smart Start can be found in the “Money” Report, item # 21 on Page G-3.
T.E.A.C.H.: The amount was the same in both House and Senate budgets, $100,000. The amount will help the program keep up with inflationary costs. The line item for T.E.A.C.H. can be found in the “Money” Report, item # 19 on Page G-2.
Child Care Subsidy: The budget reflects the position of the House on subsidy; state funding reductions and increased TANF block grant transfers for child care subsidy. The line items for Child Care Subsidies can be found in the “Money” Report, items 16 & 17 on Page G2. The special provisions can be found in the budget document (House Bill 2436, Modify Appropriations Act of 2007). First: CHILD CARE FUNDS MATCHING REQUIREMENT. The special provision was the same in both House and Senate; increasing the local match requirement from 15% to 20% if local purchasing agencies request additional funds above $25,000 over their initial allocation. The Department will continue to evaluate the effect on local purchasing agencies and whether the
matching requirement should be adjusted [in future years]. The provision is on page 47-48.
Second: The Block Grants (for child care) remain the same as the House version related to the TANF transfers. Pages 84-90 cover the Block Grants that include child care subsidy. Note: For those who really follow the Block Grant numbers carefully, you will see a change on page 90, line 13, 04. Quality and Availability Initiatives. Both the House and Senate versions had $27,000,000. The amount should have been $27,298,901 and was corrected by the budget conferees.
Other Items of Interest to the NC Child Care Coalition
More at Four: The Governor got most of what he wanted, but not all of the $41 million requested. More at Four will receive an additional $30 million in recurring dollars. The line item for More at Four can be found in the “Money” Report, item # 26 on Page F – 4. Note: the explanation (“the snappy” in legislative jargon) under this item reads: “Expands program that provides high-quality pre-K services to eligible four-year olds.” The Governor’s proposal stipulated a rate increase for all slots. The House budget stipulated a small amount increase and the Senate version reflects this current language. The budget leadership went round and round on this issue: slots? rates? They decided to go with the Governor’s suggestion to give him and the More at Four office flexibility on how to allocate the new money. We made it clear to the Governor’s “people” that a rate adjustment is critical. They understand the need so let’s see what they will do. More at Four Study. The conferees went with the Senate version to require an annual More at Four study but they did revise the language for the study. The study can be found in the budget document on Page 28.
Tax Changes: 1) The House plan to increase the state Earned Income Tax Credit to 5% from the
current 3.5% was delayed one year to taxable years beginning on or after January 1, 2009. 2) The Small Business Health Benefits Tax Credit, due to expire January 1, 2009, was extended to January 1, 2010. Note: There is no change in the value of the credit. Previous versions had increased the credit value. Both tax changes can be found in the budget document on Page 207.
Where Can I Go to Read These Fascinating Documents? www.ncleg.net
New Conference Committee Substitute on House Bill 2436, Modify Appropriations Act of 2007, approved by conference committee, July 3, 2008 (the Budget document, 237 pages)
New The Joint Conference Committee Report on the Continuation, Expansion, and Capital Budget s for House Bill 2436, Modify Appropriations Act of 2007, July 3, 2008 (the “Money” Report)
Does This Mean the Short Session is Over?
NO! Once the budget is passed there usually is at least a week or more of legislative activity, including passage of a “technical corrections” bill, an “appointments” bill, and lots of other policy bills that were eligible for this session but have not made it through the entire process yet. This can be a very scary time at the Legislature. Eternal vigilance is required.
Will I Be Hearing from the NC Child Care Coalition Again This Session?
Yes! There will be more alerts (if needed) as well as a short update on the final days of the session and whom to thank. Then a longer report will be written and sent out to the Coalition after a little rest and recuperation.
Juvenile Justice Update
In the Juvenile Justice area several items are included in the negotiated budget:
The funding for JCPC programs was restored to its current level as a recurring item in the budget.
$500,000 was added to the JCPC funding as a recurring budget item.
A feasibility study was authorized to determine the effectiveness of JCPC programs. This study is to be conducted by the Sentencing Commission in conjunction with DJJDP.
The formula by which JCPC funds are distributed is to be studied and recommendations submitted to the legislature.
The Governor’s Crime Commission was authorized to conduct a study regarding raising the age of jurisdiction of the juvenile court to age 17.
Advocates for juvenile justice were told before and early in the session that we would be fortunate to succeed in getting the full JCPC funding restored.
Numbers 1, 2, 4 & 5 represent a significant victory for the many people and organizations that worked on this area. Number 3 represents a continuing frustration by the legislature to get what they perceive as appropriate information from the department.
Covenant with North Carolina 's Children, Inc.
(919) 649-2449
info@nccovenant.org
PO Box 28268
Raleigh, NC 27611
www.capwiz.com/cwncc
*Blog Editor Note* NASW-NC is a member and co-lobbies on issues for this coalition.
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