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June 17, 2015

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Senate Releases Budget
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Senate Releases Budget

The Big Picture - The Senate released its budget on Monday
revealing sharp differences with the House on major spending items
including Medicaid, teacher assistants and state employee raises.
Overall, the Senate spent less than the House and increased spending
by 2% while the House increased it by approximately 5%.

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The Senate chose to use the additional $400 million in revenue to

reduce taxes even further and to increase the rainy day fund. These
choices are particularly stark in a context of steady budget cuts since
2009. The cuts have left every state agency starved for funding
increases and struggling to provide adequate services with budgets that
have not returned to pre-recession levels. While neither plan fully
addresses these problems, the House plan is preferable overall.
It Could Be a Long Hot Summer - The Senate has set major policy
changes in both the Revenue and spending side of the budget. This
sets the stage for a long hot summer as the two chambers negotiate
their differences.
Some of the biggest differences between the House and Senate center
around:

Budget Links Below

Senate Budget
Senate Special
Provisions

Major cuts to Teacher Assistants - The Senate proposes to reduce class

sizes by hiring new teachers at the same time it cuts 13,881 Teacher
Asst. positions. Starting pay for new teachers is raised to $35,000 and
while the average increase in teacher pay is 4%, the most experienced
teachers can expect little to no increase.
A complete change in how Medicaid is organized and elimination of
Community Care of North Carolina (CCNC). The Senate moves
entirely away from CCNC, the provider led award-winning structure
for medicaid delivery. Medicaid would be transferred to an outside
agency that would be overseen by a board appointed by the House,
Senate and the Governor. This is a totally different approach from the
House.
State Employee salary increases - The House provides 2% pay raises
to state employees and the Senate does not. The Senate plan allows
for some targeted increases in positions that are hard to fund.
A reduction in the personal income tax rates and a change in corporate
taxes that will reduce revenue by $971 million for the biennium and
$1 billion annually after that. This will further restrict the revenue
available at a time when state agencies are starved for sufficient funds.
North Carolina will be one of the few states that is not moving closer
to pre-recession funding.
A redistribution of how sales tax income is allocated between rural and
urban areas.
Further Tax Cuts Jeopardize Our State's Health - Further tax cuts
are bad for North Carolina's future. Our state cannot sustain yet
another billion dollar cut and keep needed state services in justice,
public health, education and mental health in a healthy condition.
Click Here to find your Senator and let him or her know that you value
a healthy North Carolina and that further tax cuts jeopardize our state.
Scroll below for items in:
Courts
Law Enforcement
Pay Raises
Corrections
Juveniles
Indigent Defense
Jails
Justice
Mental Health/ DD/SA
Minority Health
Veterans
COURTS
Technology - After a plea for funding by the new Chief Justice, Mark
Martin, the House increased funding for Court technology by nearly

$19 million over the biennium . The Senate did not. Instead, the
Senate appears to be including Court technology needs in a statewide
consolidated technology plan. At this writing, it is unclear what that
might mean for the courts and even if such a plan might be litigated
since the Courts are a separate branch of government. This is a matter
of top priority to the Courts, so stay tuned for more information.
House and Senate differ.
Superior Court Judges Cut/ Business Courts Added - The Senate
cut 3 Superior Court judges and added funds for Business court judges
and staff. This appears to be a preference for Special Superior Court
judges who are assigned to Business court. The House funded the
Business Courts without cutting existing Superior Court Judges.
Senate funds at lower level.
Family Courts - We're glad to see Family Courts continued in the
Senate budget. These Courts need to be expanded statewide; they
have proven to be an effective way to expedite family issues in less
time through a process that helps families. Senate and House.
Special Asst US Attorneys - Minority Leader Sen. Dan Blue
wondered in committee if the $713,514 allocated for this item would
place 6 state-funded DAs in federal offices. The answer appears to be
yes and the purpose is to transfer state cases into the federal system
where the feds will pick up incarceration costs. We'd prefer to see
these prosecutions take place within North Carolina.
LAW ENFORCEMENT
Use of Force Training - Funds for Use of Force training are spread
across the all state and local law enforcement agencies. This is a
much-needed step. House and Senate.
Samarcand Training Facility - Start-up funds are allocated for this
facility designed for Corrections personnel. Minor Differences.
PAY INCREASES
There is no 2% pay raise for all state employees as was provided in the
House. There is a provision for targeted raises to continue staff in hard
to hire positions. Senate Only.
There are STEP increases across Asst. and Deputy Clerks, Magistrates,
and the Highway Patrol. House and Senate
Correctional officers received increases amounting to $25 million by
2017 that are associated with position reclassifications based on
custody levels. House and Senate
CORRECTIONS
Community-Based Services - TECS (Treatment for Effective
Community Services) and substance abuse services are funded at the
current levels in both the House and Senate. This fund is being
renamed to Recidivism Reduction Services (RRS) and should have
sufficient funding to continue the 5 pilot Re-entry council sites. House

and Senate.
The Broaden Access to Community Fund includes $1.359 in
much-needed substance abuse funds that will be carried into 2016.
This is a non-recurring allocation initially proposed by the Governor.
Senate is at a higher level.
Education Funds Reduced- The Senate decreases the Inmate
Education budget by 5.6%. even though education has a positive
impact on reducing recidivism. House and Senate.
Prison Mental Health Funds Reduced - The Senate provides the
funds to open 72 mental health beds by 2017. It does not provide the
House level of funding to provide behavioral health treatment units at
8 close custody prisons. House and Senate.
Instead, it provides one behavioral treatment unit at Maury
Correctional plus positions at the Diagnostic Centers to improve the
assessment of inmates' mental health status. House is at a higher
level.
Electronic Medical Records - Corrections is moving in the direction
of electronic medical records which will hopefully provide both
prisons and communities necessary information to improve treatment.
Fewer funds are allocated for an outside vendor in the Senate. Senate
is at a lower level.
Increased Electronic Monitoring - The Senate provides a 17%
increase in electronic monitoring in 2015-17 with a total of $4.9
available for this purpose. The increase appears to be related to
additional electronic monitoring for post-release supervision.
Supervision alone - without treatment or services - has not been shown
to reduce recidivism. Senate is at a lower level.
JUVENILES
$2 million is allocated for Level II beds in contracted and state-run
facilities. This increases the total available for juvenile community
programs by 11%. Senate Only.
INDIGENT DEFENSE
Capital Defender's Office Cut - One of the few budget cuts is aimed
at the Capital Defender's office. Seven positions are targeted for an
18.9% reduction. This is a costly move in the wrong direction as IDS
has been able to show that dollars are saved by using salaried staff in
this position. Senate Only.
Private Appointed Counsel Increase - Indigent Defense has been
struggling with a shortage in private appointed counsel funds and this
7.1% increase is welcome. Senate Only.
No funds for Automated Kiosks - The Senate chose to study the
option of automated kiosks for meetings with public defenders. The
House funded a pilot site at $1.6 million. Senate lower than House.

JAILS
Misdemeanor Confinement Fund - The Misdemeanor Confinement
Fund for sentenced misdemeanants confined in local jails has been
completely transferred to the General Fund in an amount of $22.5
million. The fees that supported the Misdemeanor Confinement Fund
will now go the the General Fund. Senate and House.
JUSTICE
Crime Lab Technicians - Six new technicians are added to the crime
lab making it possible to increase the lab turn around time. House and
Senate. Senate and House.
Forensic Analysis Outsourcing - The Senate allows $750,000 for
outsourcing toxicology and DNA analysis - both of which have been
backlogged. Senate Only
MENTAL HEALTH/ SUBSTANCE ABUSE AND
DEVELOPMENTAL DISABILITES
Alcohol and Drug Abuse Treatment Centers - These treatment
centers are being incorporated into the LME/MCO structures. As a
result they will not receive direct general fund appropriations. There
funds will be allocated through the LME/ MCOs. Senate and House.
Foster Care Expanded to 21 - Funds are included to expand Foster
care to age 21. This is a positive move for 18 - 21 year olds who are at
risk for becoming involved in the justice system. House has higher
funding levels.

Behavioral Health and Public Safety Study - The Legislative Study

committee will study the intersection of Justice and Public Safety and
Behavioral Health. Senate and House.
LME Balances Reduced - The Senate has been unhappy with LMEs
retaining balances that Senators consider too high. As a result, they
cut funds to LMEs by $185 million which will require them to spend
down the balances. Senate Only.
Non-Profit Competitive Grants Process - The Senate retains the
grant process for non-profits to apply for programs providing a variety
of statewide services. TROSA (Triangle Residential Options for
Substance Abusers) was not earmarked for funds in 2016 -17 as it was
in the House. Senate and House - different approach.
TASC Increase -Treatment Alternatives for Safer Communities
(TASC) is increased by $1.86 million. Senate and House.
Three-way Psychiatric Beds - This increases funding for psychiatric
beds in community hospitals by 7%. Unfortunately, it does not fund
operating costs; when the same situation existed in the prison system,
the beds were not able to be used for patients with psychiatric needs.

Senate lower than House.

Minority Health and Human Relations Commission
Two targeted eliminations that have a negative impact on the minority
community are the Office of Minority Health and the Human Relations
Commission. The Senate eliminates 3 positions in Minority Health
and transfers grant administration to the office of the DHHS secretary.
Recent events around the nation continue to demonstrate the need and
importance of effective Human Relations Commission.. Senate and
House.
Veterans Services - A New Department
The focus on merging, saving and cutting does not extend to Senate
and House proposals to establish a new Department in state
government. This will be the Department of Military and Veterans'
Affairs; it will be a small Department with the function of coordinating
and highlighting services for Vets. Senate and House.

Contact Us
Reach us by Mail:
Carolina Justice Policy Center
PO Box 309
Durham, NC 27702

Or by Telephone:
(919) 682-1149

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