Crossover should easily arrive on time, or very likely a bit
early this year. It has to do with
leadership seeing its shadow or something.
Rumors suggest a short morning of floor sessions next Thursday and out
the door they will go.
As scheduled, there will be no legislative activity on
Monday and Tuesday, February 27 & 28, so we expect a light week for
hearings then, and as you can see below, and extremely light week for hearings
coming up, since much of the time (particularly in the House) will be spend on
the floor. So rather than talking about
hearings, let’s look at some of the major county issues and discuss their
status.
SB2206, social service funding, was amended slightly by the
Senate Appropriations Committee to allow for spreading federal penalties and
charges among the counties as is currently done, and to correct a technical
issue in language. The bill was then
given a strong Do Pass recommendation, and will likely be voted on by the full
Senate next Monday. Senate Leadership
and the body itself continue to appear very supportive of this concept. When it gets to the House side, we will have
a bit of a different reception. While
many, many of the House members see great value in this proposal, Leadership
has not yet embraced the concept. We
expect this to be a major discussion item at our County Officials Academy next
month, and we are hopeful that we will have a lot of county folks available to
communicate this to their legislators face-to-face.
SIRN (Interoperable Radio) Funding is addressed by two
bills. HB1178 provides an additional 50-cent fee on phone service to be
dedicated to the LOCAL costs of a statewide system – our estimates are that
this generates about $9.5 million per biennium.
SB2204 would add an administrative fee on criminal ($100) and
non-criminal ($40) traffic violations, dedicating the funds to the STATE share
of the system. This one is tougher to
project, but possibly $6 million would be generated. Senate passage of an increase cost for
speeding (over a 5/1 Do Not Pass recommendation) was surprising to many, and
this may see stronger opposition in the House.
While the two together produce insufficient funds to totally implement
the system immediately, there is enough over the long-term to phase in the
entire system over time.
The removal of the “sunset” on the ability for counties to
retain the civil penalties on overweight (fat) trucks on county roads (SB2045) has
been very well received. This bill
received unanimous support in the Senate, already crossed over, and has already
received a unanimous Do Pass recommendation from the House Transportation
Committee.
Most major budgets, and particularly HB1012 addressing the
Dept. of Human Services, have seen some very significant cuts in both dollars
and authorized FTE’s. Although not
addressed on the House floor as yet, the appropriations work indicates impacts
to most programs, with the largest hitting the nursing homes – as that is the
largest single piece of the overall budget.
It does appear that the House will continue to keep the concept of
Medicaid expansion alive, moving it from a stand-alone bill to this budget as
well.
As with all budgets, the comments have been that nothing can
be final until the March budget projection is approved and released. This data will drive all final budget
decisions. Although income tax collections
remain strong, the three months of sales tax collections since the last revenue
projections have been disappointing at best.
Another big budget generating considerable concern for
counties is SB2015 – Department of Corrections and Rehabilitation. While the don’t have funding that flows down
to counties, there have been repeated attempts to shift incarceration costs to
the counties in a manner similar to last session. Several amendments for this budget have
included the “quota” concept proposed last session. Counties have resisted these attempts and the
final version does not include that language, however it does include the “right
to refuse” language put in the bill last session.
The NDDOT Budget, SB2012, did not have much debate on
funding levels, as they are only slated to get the federal dollars and whatever
the highway distribution fund generates.
However, that does not mean that budget was without controversy. With the restriction in funds, the DOT looked
for cost cutting measures and has proposed to reduce the number of section
shops by 8 and reduce the number of satellite driver’s license sites they
service by 9. The driver’s license site reduction
caused nary a ripple, but the “optimization” of the 8 section shops created a firestorm. Although some of
the staff and equipment from them would be consolidated into other sections, there
would be a net reduction in five staff and four trucks suggesting a $4.4
million savings. Sections proposed for
closure are in Starkweather, Finley, Mayville, Courtenay, Fessenden, Litchville,
Gackle, and New England. Understandably, legislators from those
areas fought hard in the Appropriations Committee and on the floor of the
Senate to restore those sites, but ultimately were not successful. The
DOT budget will therefore go to the House without those sections funded, but
the issue will undoubtedly be debated on that side as well.
In the state employee compensation area, the legislature
appears to be moving in a slightly different direction than originally proposed
by the Governor. Although this doesn’t
directly affect counties, we realize it does have an indirect effect on local
decision-making. The executive proposal
to require state employees to pay 5% of their health insurance was reversed (so
far) but the 1% salary increase proposed for the second year of the biennium
has been eliminated (so far). Again,
these decisions will be revisited after the new budget projection is
final. Not likely to get revisited was
the decision to kill the proposed increase in NDPERS retirement
contributions. This “final step” in the
NDPERS board’s effort to stabilize the fund for the long term (30+ years) will
be moved down the road some more.
A number of poor property tax proposals (PPTPs) were
defeated in the “first half”, but unfortunately not all of them. A broad rewrite of the property tax exemption
for churches (HB1424) was passed (56/34) in the House and if made into law
could turn this exemption upside-down.
It would allow churches to maintain income-producing property as long as
the income was used for “religious purposes”, and it would require the tax
assessor to proof they were not using it in this manner, rather than the other
way around. This would be a huge shift
in policy for the state.
And, of course, we have to address “caps” in the second half
of the session. While one cap bill was
defeated, HB1361 was passed by the House (56/34). This bill, sponsored by the Majority Leader
and the Chair of the Finance & Tax Committee, would limit all local
governments (except schools) to 3% increase in taxes, unless a citizen vote was
held to increase that limit. It was identified
that if schools were held to the 3%, it would cost the state $34 million more
in school aid, so they delayed their involvement for two years. For all the reasons we have discussed in the
past, this is very bad public policy, and the research would suggest it is
largely ineffective if not counter-productive.
For those interested, some of this research is posted on the “testimony
page” of our legislative blog. We will
be looking for a good turnout when this bill is heard in the Senate.
The concept of repealing the confusing “Truth in Taxation”
notices and implementing a single unified notice prepared by the county has
some traction, passing the Senate unanimously.
This bill (SB2288) was extensively amended at the request of County
Auditors, and it will force the completion of centrally assessed property about
a month earlier to facilitate greater accuracy in budget estimates. Recognizing there are still concerns about
the bill, this will be one that needs thorough review and more discussion as it
moves to the House.
This report is getting awfully long for a blog post, and we
still haven’t talked about county health funding, drug testing for TANF
clients, indigent burials, wind generation taxation, GPT funding, recorder’s
fees, infrastructure financing, large trucks, ag trucks, tarps & mud flaps,
tiling, guns, drugs, protestors or marijuana.
All these and more will be addressed at the County Officials Academy
March 6-7 in Bismarck. Pre-registration
is open until Feb. 24th (link below). SEE YOU ALL THERE!
Hearings for Next
Week
Time
|
|
Comment
|
Room
|
||||
Monday 2/20
|
|
|
|
||||
9:20
|
S
|
DHS bill to update language regarding develop.
disabilities
|
Senate Human Services
|
Red River
|
|||
9:40
|
S *
|
DHS to recover SPED overpayment
|
Senate Human Services
|
Red River
|
|||
11:00
|
J
|
24/7 records to be given within 30 days
|
House Judiciary
|
Prairie
|
|||
Tuesday 2/21
|
|
|
|
||||
8:30
|
J ***
|
Medical Marijuana implementation
|
Senate Appropriations
|
Harvest
|
|||
9:00
|
S *
|
DHS bill updating language and creating a
voucher program for substance abuse
|
Senate Human Services
|
Red River
|
|||
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