Legislative Update from Rep. Iler — April 12, 2023

Last week at the North Carolina General Assembly was dominated by the passage of the biennial budget out of the House of Representatives, but other important issues were discussed and debated.  However, the state and national news coming out of Raleigh overshadowed even the historical state budget.

     The House was the first chamber to assemble the two-year budget before passing it over to the Senate.  House Bill 259 – 2023 Appropriations Act includes record appropriations based on the population growth of the state, plus inflation and increased economic activity.  In the 2023-24 fiscal year the General Fund budget allocates $29.8 billion and in 2024-25 allocates $30.9 billion on state services, while retaining some of those totals in reserve. 

     Some of the major expenditures of the state are: Education at 58% and 59% of the total in each respective year, followed by Health & Human Services at 24.4% in each year.  Justice & Public Safety equals 12.1% and 12.2% in each respective year.  These 3 divisions take about 95% of the General Fund, and leave 5% for Agriculture, Natural and Economic Resources, IT, all other agencies, and reserves.  Note: HHS includes over $5 billion for Health Benefits/Medicaid, or 75% of their budget.  Also, Education includes K-12, universities, and community colleges with K-12 getting $11 and $12 billion in each respective year, almost 70% of the total budget for Ed.

     The Transportation Fund is separate from the General Fund.  It is supported by motor fuels taxes, highway use taxes, and DMV fees.  It includes $5.3 billion in 2023-24 and $5.6 billion in 2024-25.  Some of the major additions are: $1 billion additional in the General Maintenance Reserve for highway maintenance of roads, bridges and roadside environmental, $773 million additional for road and bridge construction, and $300 million additional for General Aviation airports capital improvements, among other additions.  Brunswick County has two of the 62 General Aviation airports.  The Powell Bill fund, funds to municipalities for street maintenance within their limits were increased to a historic level.

     The budget bill, House Bill 259, passed by a strong vote of 78 – 38 on the final ballot and went to the Senate almost a full month earlier than usual.

     A news flash statewide and nationally overtook the good news of the budget.  A Democrat Representative, Tricia Cotham of Mecklenburg County, joined the Republican Party, giving the party a supermajority of three-fifths of the NC House. Her statements made state and national news. 

     We will be on an Easter break this week, so there may not be an additional newsletter from me for two weeks.  Further information on our activities is available at www.ncleg.gov.