[BLANK_AUDIO] [SOUND] Good morning everyone. If you would take your seats please. Welcome to Senate Appropriations and Base Budget Committee, we're going to be going over the Senate's budget today, in your packet memos you'll see a set of rules pertaining to amendments, but I would like to read those rules. So everyone will know that line of today. We were planning on meeting till 10:30. We'll take amendments till 10:30 and at that point in time we'll take approximately an hour break and we'll go over the amendments, and then we'll come back here and start from there. Before I do that let me do this then, let's welcome our pages today. And if I mugger/g your name I apologize it for our pages so, some of you got some tough ones. Matthias Malelonus/g, is that close? [LAUGH] Thank you sir. Jack Saby/g, welcome. We have Anna Scott Wingfill/g Hold on a minute [INAUDIBLE] Is from Senator Smith and jack is from Senator Berger and Anna is from Senator Berger. And then we have Jared Forbes from Senator Hartsell. Hope Harrington from Senator Barefoot. Where's Hope at? Oh she's over there waving okay. Chris Stanon McLamb from Senator Brown. Obery Frie from Senator Apodaca, Obery. Oh she's a [INAUDIBLE], okay. We have Michael Hughes from Senator Apodaca. Michael, he's another doc, okay. We got Will Furthing welcome Senator Apodaca/g and Conrad Ruff. [UNKNOWN] [UNKNOWN] Senator Heis, welcome all and hope you've learned something today and hope you'll come back join us at some other time. And the our sergeant at arms today we have John Inlow/g, he was behind me he moved. [LAUGH] Okay. We have Dona Blake. Dona where are you at? Back there. We have Jim Hamilton. There's Jim, okay. Steve McKay. Steve. Terry Burnhat/g, thank you all gentlemen for all you all do. At this time I'll go into the rules and then we'll sort of move forward from there. Item one, money can only be transferred from among items within the same sub-committee section. Item two, amendments for money as being transferred along items within a sub-committee must clearly identify the items programs that are being increased and or decreased Were decreased. Item number three non recurring reductions can not be made to fund recurring additions. Item number four amendments that's been reversions are not allowed. Item number five amendments that increase or create new measurement flexibility reserves are not allowed. Item number six, amendments that increase spending in the sub committee budgets are not allowed. Item number seven amendments that are not allowed for funding for an item comes from Statewide reserves. Item number eight, amendments that are just close from the compensation increase reserve or the state retirement contributions many items are not allowed. Item number nine says this is a meeting of full appropriations amendments that address finance, portions of this bill will not be heard. Item number 10 , amendments must be in writing, the original sign with 100 copies available Available for distribution. And repeat the time frame again to be considered a proposed amendment must have been logged in to the committee clerk in room 643 by 10:30 AM on Wednesday June the 1st 2016. I would ask my co chairs if they would like to have a comment? If not we'll sorta move forward with the agenda as we have it. I wanna say the Senate has worked and I wanna appreciate the sub chairs and the members on this budget. I feel like we have a good sound physical budget. One of the best one's I think we have seen in a long time and at this time I'd introduce our This is our senior Chair Senator Harry Brown to go over it, thank you senator Brown >> Thank you Mr. Chair. First of all I wanna thank all my subcommittee chairs and my full chairs for the long hours and hard work. And I also wanna thank the staff The staff is amazing to me how they hang here the hours they hang in to try to put these staff together in a short a time period
and just the expertise and knowledge they have amazes me, but they do a great, great we sure couldn't do this without them. What I will try to do is I'm going to try to touch on A few pieces and then I'll have my subcommittee chairs talk about their particular subcommittee pieces as they move forward. The Senate budget includes appropriations of 22.225 billion which is a $490.3 million above the amount enacted for Fiscal year 1516. This is a 2.26% increase and these are some of the highlights. Users recurrent revenue for our recurrent expenses, no recurring revenue is used for recurring expenses. It adds 583.9 million to the savings reserve To bring the total held in the rainy day fund to 1.7 billion right percent of operating which is a statutory goal, provides 50 million to the lottery reserve for school capital needs and provides for a steady of school capital needs by the program evaluation division. It provides ten million for the For the mental health task force reserve upon further legislation and a report from the Governor's task force. It provides 10 million to the state emergency response and disaster relief fund, it leaves 71 million in reserve for future benefit needs and provides further direction to the state health plan to lower the Unfunded liability and keep costs low, it leaves 186 million unappropriated into medicaid risk reserve to address potential liabilities. Under capital r and r it provides 117.5 million for repairs and renovations of state owned facilities and changes that Formula back to a 50-50 allocation between university and other state facilities. It provides the required state match for water resource development projects by providing five million in funds.These funds will match the 37.5 million in non state funds. It pays the full amount of Funds owed to the federal government for Wilmart and Harber deaconing/g. The 37 million in funds will pay off a 30 year debt saving the state over 44.7 million in interest payments. I will have to say the full chairs found out about this loan that was obligated back in the 90s With payments supposed to begin next year and we decided to pay that off and save the state those 44.7 million dollars over time. A quick provision, because of that particular finding We got provision that limits the ability of agencies in campuses to enter to debt and debt like arrangements within the general assembly approval. Exceptions are made for items that have existing statutory processes. We don't have to deal with that anymore. [BLANK_AUDIO] The budget It also includes recurring net appropriations of 441.86 million, and non-recurring net appropriations of 92 million for salary increases, bonuses and retirement contributions. This increased the total net appropriation for recurring salary expenses To approximately 11.4 billion across all sub-committees. It's a 3.6% recurring increase over a fiscal year 15/16, and recurring net appropriation for retirement contributions to 1.5 billion. It provides each employing Agency with funds to provide salary increases and merit base bonuses. It grants staff increases for assistant and deputy clerks, match [INAUDIBLE] and highway patrol. It appropriates 16.9 million to continue implementation of custody level pay for correctional officers It increases assistant public defenders, assistant district attorneys minimum salaries to 40,000 from $38,628. On average it provides a 6.5% salary increase to teachers which is an estimated new salary average of 51,000 Some $ 47 this year, with a plan to raise the average to close to $55,000 next year. And it also grants [INAUDIBLE]increase in preschool educators. [BLANK_AUDIO] It creates a thorough grade reading teachers performance pallet program and Provides 10 million annually for bonuses paid through the program.The program we use averse student growth index scores for rating to determine bonus,eligibility.The
program is authorized for two years.Five million is allocated as bonuses to the top 25% state wide.And 5 million is allocated To be spread among the LEA's for distribution to the top 25% in each LEA. The school base administrators is the grand step increase it also provides a seven million dollar bonus. Which will be allocated at $500 for Assistant principals and $2000 bonus for principals. It funds all state retirement systems and actuarially determine levels and it keeps the 71 million reserve for the future benefits needs in reserve and authorizes the budget director to reallocate the funds to the state health Planned at the state treasure and board make changes that reduce future growth and state contributions, that's a quick touch on some highlights and Mr. chairman that I would like to turn it back to you, maybe see if there is any question to let the Before we get started, Senator Brown, we need to get a motion to accept the PCS presented. >> Mr, Chair, I move that we adopt the PCS for purposes of discussion. >> Okay. Any discretion on this motion? All in favor of accepting the PCS please let it know be known by saying aye. >> Aye. >> All oppose motion's passed. Is there a discussion you want the sub chairs to >> Let's go ahead and let the sub chairs, then we'll open it up >> Okay. All right well we'll start with as always the needs and the budget with education. Senator Tillman >> [INAUDIBLE] >> [INAUDIBLE] Senator Senator Barefoot, Tag teaming are you? >> We do all the real work. >> Thank you Mr. Chairman. For the first time since we have been in control at the helms, we've begun to do things for education. We started with some Steps that we could afford and we've moved steadily forward and not only in pay but in recognizing that we need to pay teachers a good solid living wage and we've got that within the next two years we'll be at this right at $55,000, that a few years ago was on This is a historic step in this state by any measure, democrat or republican. But we've also began to recognize that growth is a very important thing for teachers. And we are going to be very soon paying teachers for growth when they can take this students from one level to another in growth we are going to pay them extra And they should be especially those third grade teachers who can do that. And I think we'll move forward with that not only with third grade teachers but on down the line with many others, we've began to recognize the role with the principle we'll be paying them in this budget some bonus money and also a step increase but they are the lowest in the south east and among the lowest In the nation you don't have a good school without a good principle so we are recognizing that, and then in the future we are going to set aside some money to pay principles that can go and turn around schools. And there are principles who can do that but you got to pay for that just like anything else. So I'm encouraged by those moves that will recognize something besides just Across the board increases. We are going to move once we got this infrastructure fixed and this budget fixes it we can then move into those areas so I'm very encouraged about that but Senator Barefoot you've got a lot of the big tales of this budget. >> Thank you Senator Tillman and for all the work you put in on this I'll begin by building on The senators comments in general this education budget continues the Senates commitment and the legislatures the lower class sizes and the early graves, it rewards teachers for doing a great job teaching students how to read. It confronts the national teachers shortage crisis by creating new ways to increase the teacher Pipeline to our schools it supports innovation and higher education about the community college and the UNC system and continues our commitment to expand educational opportunities to parents and students. So what I'm going to begin by doing is hitting some highlights of the education budget and we'll take take questions after that, the net appropriations for this particular budget is 12.58 billion for about the K12 community college and UNC system, that's approximately 414.5 million above last years enacted budget which totals a 3.41 increase of over last years budget, to begin with the committee report items highlights in the K12 section the budget fully funds K12 in Roman growth by providing 46.8 million dollars in the upcoming fiscal year it increases
funding for second grade teachers by providing providing 27.1 million and recurring funds and modifying the second grade teacher allocation ration from one teacher for 17 students to one teacher for 16 students. It establishes a teacher assistance tuition reimbursement pilot program in five five counties to support 25 TA's for the educational course of the transition to classroom teaching in their school districts, it also as been mentioned provides 10 million to establish a program to read high performing third grade reading teachers, the bonuses will be provided to teachers amongst the top 25 in the state on growth, based on growth as well as the top 5 percent in their respective school district again based on growth. In the special provision section some of the highlights you will see is we've directed the department of health and human services along with the department of public instruction to collaborate and come up with a state wide vision for early childhood education in the state of North Carolina. DHHS and DPI must work together on creating a process of preschool transition plan for every child in the NC pre K or childcare subsidy programs It also establishes up to five local alternative teacher preparations to provide innovative route to licence for initially licensed and lateral entry teacher candidates. This was a policy that came to us from some of the larger school districts, superintendents in our state as to how to fill some of the. Vacancies they have. Turning to the community college system in the committee report, you will see that we provide $1.6 million to fund 3 new multi-campus centers at Asheville–Buncombe Tech, at Durham Tech and at Mitchell Community College. We also Increased funding for equipment by $15 million for equipment purchases throughout the community college system. And the other innovative thing we do which was requested by the community college system was provide them $500,000 to begin the process of planning on how to provide curriculum at a competency Base level rather than seek time. If you look at the special provisions we modify the performance matrix for community colleges to improve the assessment of student success incentives for college performance, we also create tuition waivers for the youth apprenticeship program to help Encourage businesses, K12 high schools and community colleges to work together on our [UNKNOWN] to access programs. Within the UNC system, turning there we provide additional funds for enrollment growth in the amount of 31 million. We expand internship Opportunities at historically black colleges and universities. We have reduced some of the advancement cuts that were made and that's been a long standing request by the UNC general administration. We expand the western school of medicine Ashville campus by appropriating an additional Three million recurring. This is joint project between MayHAC and the UNC School of Medicine. What I've learned is Western North Carolina has a doctor shortage too, and so we're taking care of the whole state there. We also convert a portion of non recurring funds for the East Carolina School [UNKNOWN] Medicine to recurring. And the other thing we do is provide some of the dollars needed to help facilitate the opening of the Western School of Engineering and Technology which was part of the Connect NC Bond packages and as an extension of the North Carolina School of Maths and Science. Lastly in that section, we establish the opportunity scholarship grant reserve fund, appropriating 34.8 million in non-recurring funds to move that program to forward funding. Within the special provisions in the UNC system, we have delayed the implementation of the NC Gap program by one year, to require UNC to create plans to improve student completion rates in the next academic year. And give the president and the board the ability to come up with ways to help some of our schools who are struggling. What is probably Familiar to most of you guys is the access to affordable education as part of the budget as well. This alters tuition and fees, creates a scholarship program and a guaranteed tuition and fee option at our university campuses. We also require the UNC schools to establish K through 8 laboratory
schools There are constituent institutions that offer education preparation programs. The schools will be operated in local school administrative units with low performing schools. And again, we moved the opportunity scholarship program to forward funding. So with that we'll take any questions Chairman, we're all right to the very end and let the staff committees go through and then we'll take the questions at the end as the chair's preference. >> Okay, thank you Senator Tillman, Senator Barefoot Health and Human Services Sen Hise, are you having your colleagues join you or are you gonna do it by yourself? Senator Tucker and Senator Pate. Okay, let Senator Hise do it. Welcome Sir. >> Thank you Mr Chairman, members of the committee as we move forward the senate budget for this year is a net appropriation in Health and Human Services of $4.6 billion. But that is 171.2 million below the amount enacted for 15/16. A 3.4% decrease, some of those will go through actually will say Health and Human Services tier. It's good to be not stealing from every other area of the budget to fund For medicate this year as we have done so many times in the past to make it happen and a lot of work have gone into placing us in position to be able to do that this year. As far as the report first beginning in central management and support we do a continuation of a 3.2 million dollar Reduction in contractual services to the department. We are supporting the establishment of our residency program Cape Fear Valley Hospital this was also in the house proposal but it is as we are continuing to face a doctor shortage in North Carolina we are seeing more doctors pass away Or retire from the field every year than we are graduating for my medical schools, you are seeing a theme across the board as you harbor the Western Carolina Center earlier to expand residency options and this funding is one of the best ways in which we can do that particular for Central Eastern North Carolina as we come in. We are also as we begin to transition to the new medicate system that we coming in, we are beginning to expand our analytics capability and our data management this will be much more a requirement and function of the department going forward and as so we put 1.25 million on a none occurring basis to establish Some of the analytics palettes in the central management. A division of aging and adult services two things to highlight here to expansion areas we have that are coming in that were part of the state plan on Alzheimer disease and related dimentias. We did provide funding for the care project which is the [INAUDIBLE AUDIO] services for families who are taking care of their loved ones, and bring considerable saving to the state. We have provided some funds to make that more possible by allowing them to take time and provide services for their loved once at the same time. And continued development of the benefits of the individuals now who utilize the 211 system in the state, making sure that system is prepared to deal with individuals that have Alzheimer to make sure the services and supports that could be provided them are available when individuals call in to that system. Division of social services. As many of you are as aware we had a quite a few problems with the child protective services in the state when we went through a federal review while we've had that they didn't fail to report there were seven markers that the feds were looking for and we did not meet any of the seven markers. That they were looking for so this is something we've had to put significant investment in. Trying to get the point to where we don't lose children when they cross county lines and others. And making sure we have those plans available. You will see that funding, the child welfare improvement program 8.6 Enhancing oversight of that and accountability, we are actually putting staff in the department to do that. For the first time and taking that away the feds have never seen this as solely a county responsibility, and it's time we didn't either. We are coming in well as some improvement plan and other changes for the child welfare system. The department of public health ,we're provided 1 million recurring funds to the laboratory and we've increased the new born screening fees to the actual cost of providing the new born screening fees, thanks for coming in,
I believe that it's $44 what it cost the state to complete that process Thanks for coming in. One of the special provisions I know that that the house had eliminated the office of minority health instead, we've kept the office of minority health but required that their grant funding be used for evidence based programs to address the health disparities affecting the minority population and we've Had the secretary to approve the process they go through in order to release those grants high up to the public. Division of mental health, thanks for coming in, for the fifth year in a row the senator has once again closed the right school, that's/g for coming in that provides limited services in a small region Of the state while making services unavailable and the rest of the state thanks for coming through, and we've also provided 1.6 million to operate and upgrade the control substance reporting system, this will allow similar to what we have in other states and hopefully begin to get us the information we Need to turn the tide on prescription drug abuse in this nation and get something that we can actually have positioned utilizing for their prescription writing so that we know what should be out there, enable to identify problem prescriptions. Special provisions in that area are the Dorothy at digs property Last year we told the department to come out and tell us what they can do with 25 million of those funds, and the report we got back is that there was only 12 of those funds that could be utilized within this year so despite other attempts to exhaust those funds we continue to protect those, but we're going to allow 12 On those funds for adult services, to go out into the community to provide mental health beds in the community that will bare the name of Dorothy at digs when they are established that it's consistent with the manner which we receive the funds in this state and continue in that conservative principle to make sure those funds aren't just blown away [INAUDIBLE] on services. We also do about 2 million in the same process for childrens' beds for mental health services. DMA which is Medicaid, one of the things I'll say quickly on DMA we're going in when we did Medicaid reform last year, this concept of setting individual rates for different providers Anything except enrollment, we have now transferred that authority to the department. So it is no longer the legislature in the process of discussing what the rate for an individual service would be. Or saying report does somewhat the rate should be for us to take action later. That is solely within the discretion of the department and it's budget. Thanks for coming in. So in DMA the base budget is reduced by $318.5 million to impact. That is some catch up and enrollment. We have seen enrollment kinda come back up to expected levels. Predominantly that is a decrease in utilization of services that those funds in and that is what we Project going forward to continue to be that from what we had previously budgeted. We did expend such per cap DA to help Alzheimer's patients to cover the cost that will be in a million dollar expansion starting January 1st. We have reinstated the coverage of adult eye exams For individuals so that we can continue to find glaucoma and diabetes and other things and vision issues that exist in the medicaid population for adults. That is a cost of $2.1 million.Thanks for coming in and we are funding 30 new positions to assist with the transition and get us in place for Operations as we make a new department at a cost of 1.38. Two special provisions to hit real quickly. The first one is we heard from the auditor at this time of oversight that if a claim is incorrect or mis-billed by less than $150 our policy is to ignore that That was coming in. So if we overpaid a provider less than $150 we just let it go. That was kinda too expensive to recover. We've seen many other states have tremendous success in finding funds and recovering what we've overpaid in that process, so we're asking the department To enter into a contract that would split the proceeds returned, the final net proceeds returned, from collections in those contracts. And we put some choices in to clarify DHHS administrations. Thank you and I look forward to the discussion.>> Thank you, Senator Hise At this time, we'll have our NER, Natural and Economic Resources. We have Senator Cook, Senator Brock and Senator Wade. All three of them I guess are coming up. >> Good morning.
>> Good morning Mr chairman first I wanna thank my co-chairs Senator Brock, Senator Cook and we certainly wanna thank the big budget chairs cuz they kept us on straight and narrow here when we were trying to make put our budget together. So we'll start out with the budget for NER Is $484.5 million, it is 13.8 million above the budget and active last year and it has a 2.9% increase. Agriculture it provides 3 million for firefighting plane and have the equipment It provides $680,719 for international marketing, it provides a million to agricultural development and farmland preservation trust fund and it provides 500,000 for AWRA which is agricultural water resources Assistant program. And labor it provides 300,000 to support operational needs including IT expenses. Environmental quality, it provides 149,002 positions in the division of Marine fisheries, it restores 2 million to the division of air quality. And it restores 15.4 million transfer gas tax revenue to the commercial laws fund. Wildlife resources commission, it restores 2.1 million transfer of gas tax revenue to the boating safety account. Now Now, we'll move to commerce and state aid. It provides $334,981 to support operations of the department and not the expenses. It provides 156,000 to support a position in the Economic Development Partnership of North Carolina. It provides 6 million for a public infrastructure project in Johnstone county, it provides 500,000 to Brogdon/g hospital re-devlopment project and 400,000 for the HotPoint furniture market. Natural Cultural resources, it provides $69,269 and three positions for the archaeological research center. And the reason for this is some of the members that went out and did those archaeological findings for us are retired persons who are pretty much retiring for for the second time and so we needed to define those positions again. Provides an additional 5 million for clean water management and it also provides 200,000 for a state wide children's digital library. Also we have a new pilot program for future farmers of America, it air marks 300,000 of the tobacco trust fund for this programs. It eliminates the funding to the mercury pollution prevention account, it also allows for the real space management allows DEQ to more rapidly use 500,000 for low risk licking petroleum clean up, in other words what we're trying to do is get this property back on the roads of economic development. It does the same thing For landfills that allows the EQ to use 5 million for low risk orphan landfills and to rapidly reduce the number of contaminated sites. It expands the allowable uses of the aquatic weed control. The next provision Is called the development of new comprehensive nutrient management regulatory framework. This provision does six things. One it immediately terminates the Jordan Lake pilot project. It repeals the three year delay Of the Jordan Lake rules established in 2015 budget. It addresses concerns of the Riley and Appanoose Basin Association with implementation of the Falls Lake rules. It lays out new statewide strategy development for water quality improvement. It continues to ensure drinking water remains safe by leaving regulations in place during new rule development. And it assists economic development by normalizing nutrient all set credits offered by the state. It amends the Marine Fishery Commission,
it has the department of Environmental Quality with the assistance from the department of transportation to categorize all wetlands and stream mitigation credits currently under state ownership. It reduces the size of the North Carolina Tourism Board form 29 to 15. It allows parks and zoos to enter into a public-private partnership for the operation of a hotel. And it changes the name of the natural grassroot Science centers to the NC Science Museum grant program, and it allows all museums that received funding in 2015/16 to be eligible for the competitive program. Last but not least it provides the zoo [INAUDIBLE] construction for projects under a million dollars that the zoo is able to have basically fund where they can move more rapidly on repairs at the zoo. [INAUDIBLE]>> Okay thank you senator [INAUDIBLE], thank you Senator Brock/g, Senator Kirk/g. Okay, well have general government. Senator Davis and Senator Sanderson. >> I'm sorry [INAUDIBLE] I got ahead of myself. Thank you Senator Randleman for pointing that out. So we have justice and public safety Senator Randleman and Senator Newton and Senator I don't know if they all wanna come up. >> Thank you Mr. Chair. >> You're welcome. >> And to begin with I would like to thank Senator Newton for his service and also Senator Bingham and our staff, we can never forget our staff because they put a lot of hours into helping us create and get our budgets together. The 2016 to 17 senate budget projects its in public safety, includes net appropriations of 2.5 billion, it represents like 49.2 million dollar increase or 2% above the enacted budget for 2015 and 16, and I'm gonna get over a few items in the budget. On page 11 items 8 or 9 it provides two million dollars to equip and operate the western crime lab in [INAUDIBLE]. In addition it provides $640,000 for equipment at the triade/g and Rayleigh crime lab that facilitates, on the I 11 item 10 it provides 2.2 million to renew a contract for outsourcing a forensic analysis services to alleviate the back log in toxicology, and DNA at this state crime lab. And hopefully this will be the last time that we will have to renew this contract because we're told that at the end of this contract they should catch the crime lab up and they should be able to function normally. On page I 17 number 14 it provides 3.5 million in non recurring for that [INAUDIBLE] defense services to reduce the pack shortfall. Their budget is roughly somewhere a little bit over 61 million so we had already included 4.4 million. This is an additional 3.5 million. In the special provisions there are several provisions related to the function and future of the office of energy and defense services. There is also a provision that directs IDS in conjunction with the administrative office of the courts to conduct a pilot program using a set fee schedule for payment of attorneys representing any Indigent clients. The IDS has also been directed to study, and if feasible, establish satellite or regional capital to centers offices. In addition, they are asked to study the prosecution of capital cases to determine whether there is a more efficient way to identify potential capital cases and And how the state may more effectively utilize local counsel in those cases. And Mr. Chair I will see if my co-chair would have any comments. >> Okay. Thank you Senator Randleman. You all good? All right. Thank you all very much. Now Senator Davis and Sanderson, we're general governor Senator Davis, I assume you are gonna do the presenting. [BLANK_AUDIO] >> Thank you Mr. Chairman. >> You're welcome. >> And like the previous sub-committee chairs I would like to pay tribute to our staff and to my co-chairs Senators Sanderson. I'll go over the highlights of the budget.
Our budget for general governor increased by about $22 and a half million for 15-16. And this is 6% increase. And the highlights of the adjustments I will Summarize for you. First of all we'll go through the committee report items in the department of Military and Veteran affairs, J4 item 2, We provide funding for 4 FTE's to support the 4 North Carolina Veteran cemeteries. And this is $200,000 to include salaries and benefits. And J4 item 2, we provide $10,000 non recurring for the renaming of the Light Mountain Veteran's Home to Zebulon Doyle Alley State's Veterans Home. Under department of insurance J20 item 10. We provide a million 5 for the equipment in IT infrastructure for the the Albamoto/g building, as most of you know that they will be occupying that building probably in June of next year and this is to give them the IT infrastructure needed. J21 item 11 provides $145,000 for an actuary position to work in our captive insurance operation. In Item number 12 continues the transfer of $158,000 none recurring from the department of transportation to the department of insurance for the state's fire protection program. J22 to 24 it continues the non recurring transfer of vehicle inspection fee funds from the department of transportation Transportation DMV to department of insurance for the continuance of the rescue squad workers relief fund and the volunteer rescue EMS program. State budget and management J48 item 21 provides funds of 278,000 for staff to administer And manage the North Carolina connect bond projects that will include three FTE's assigned to their respective agencies as this bond progresses. We have Office and State budget and management special projects J54 item 22 provides five million for a region career and technical education center. And J55 item 23 provides 50,000 to renovate areas of the museums of the work saws In the auditors office we give them item 25 it provides additional funding for expert witnesses, item 26 that funds the security guard for the building shared by the auditor the secretary of state and the department of labor. And then the secretary of States office we create six new positions for the securities division to assist with the purchasing and the selling of securities products. J74 item 33 to 34 transfers the current funding and all positions within the youth advocacy and involvement office to the Council for women which will be renamed the council for women and youth involvement. J75 Ivan 35 to 36 it restores the human relation commission funding and position. In the Ethics Commission J75 provides funding for on going maintenance to the electronic system that accepts Statement of economic interest filings and provides ethics training, it also provides $850,000 none recurring to allow the Ethics Commission to build a new and updated system that will allow online amending and filing of SEI files. In the department Of revenue J82 it provides a none recurring receipt funding for the Department for the operations and maintenance of this automated tax collection system. And then the state controllers office J87 item 43 it provides a none recurring funds for the beacon positions supported by highway fund Transfer and Mr. chairman now I would like to turn it over to Senator Sanderson to discuss this special provisions. >> Okay thank you Senator Davis, welcome Senator Sanderson. >> Thank you Senator Davis Mr. chairman just to briefly go over special provisions found in the general government portion of the budget. Section 20.1 rename Names as has been previously mentioned the black mountain veterans home to the Zebulo/g Doll Alley veterans home. Section 20.2 requires the department of military and Veterans affairs to study the feasibility of creating a North Carolina military hall of fame to recognize contributions of North Carolina's military service men and women. Section 20.3 specifies that the North Carolina Veteran's Cemeteries are to operate on a Monday through Friday schedule with exceptions
for state or federal holidays. Section 22.2 directs the Department of State Treasury to report on organizational structures, co-operation of the Able program, this report shall include other include other state's models of administration in North Carolina's options that will allow the program to operate within its current appropriation of $540,000 recurring and $50,000 non-recurring. The report will be presented to the Joint Legislative Oversight Committee on general government. Section 23.1 maintains the insurance, a regulatory charge for insurance companies at 6.5%. Section 24.1 allows the Chief Information Officer to have access to full voter registration record created by divisional motor vehicles for the purpose of validating that registration section 25.1 directs the program evaluation division to contract with an outside entity to perform an assessment of school construction needs for certain counties, identify these low wealth counties to determine which counties have the highest school construction needs at the same time with the least amount or the least ability to raise revenues to meet those needs. Section 27.1 directs the office of State Budget and Management to study changing the department of state treasures budget by moving functions from receipt support to general fund support for the purpose of improving accountability of the treasury's budget. Section 27.4 directs OSBM to not reverse certain grants for capital projects. Section 32.4 directs OSBM to work with the department of ministration and department of HHS services and identifying available funds to cover contract for the division of public health state laboratory [INAUDIBLE] contract for year 16/17. And it then directs the DOA that the DOA shall not renew the maintenance contracts after it expires in one year, DHSS may then enter into the maintenance for the service. Section 32.5 transfers the functions and staff for a full time FTE's or these advocacy involved office to the council of women to become the council for youth involvement. All current functions of the AIO or YAIO will continue through the new council and should be done so in a non partisan manner and she'll not disseminate or advocate parts and principles or ideas. And finally section 32.6 directs that domestic violent center and the council for women to develop a potential new grant funding formula for the domestic violence funds and to present proposal to the general government oversight committee. Also places the [INAUDIBLE] on new guarantees for next physical year while this formula is being studied, Mr. chairman that's against my review of special condition. >> Thank you senator [INAUDIBLE], Mr. [INAUDIBLE] Davis, okay we'll move on to transportation, we have senator [INAUDIBLE] and senator [INAUDIBLE] is presenting Members I'd like to remind you we have just a few moments over 30 minutes to have your amendments submitted up to the committee clerk. So if you have some amendments you plan on writing please have them up here by 10:30. Thank you. Welcome Senator Raven. >> Thank you Mr Chairman. Good morning. >> Morning. >> Members of the senate the following of the synopsis of the budget of the department of Transportation for this year. Combine revenue is up relative to fiscal year 15 by 4.7% for fiscal year 17 the increased revenue is due to four things, DMV changes in the 2015 budget, increased consumption of diesel fuel, or diesel oil I should say. Increase highway use, tax collection from the brisk sale of new and used cars and increased DMV revenue from drivers licenses and truck licenses. Relative to the 2016 budget the highway fund revenues are up 5.2%, and the highway trust fund revenues are up 4.5%. The money report is as follow, it increases recurring funding by $13.8 million to freight and rail crossing safety improvement program and increases recurrent funding by $14.8 million for general aviation airport development. As you probably know, there's 52 general aviation airports in the state and these have been lacking over the years. It appropriates $5 million to advance and promote DMV modernization initiatives.
Targeting cost center responsiveness, wait time reduction, driver license offices and due process improvement for medical reviews. Some of those will be covered in the special provisions so stay tuned now. Consolidates the three maintenance accounts to give division engineers more flexibility in meeting their maintenance needs. Here to four we have three separate silos if you will that division engineers were Restrained by in taking care of their everyday practices and using the funds in a timely fashion and the individual division needs. So this is a good step forward. It increases funding by $10 million to increase the litter prevention and removing and it increases recurring funding by $32 million to the STI fund. Special provisions. The cashflow to the Highway Fund and Highway Trust Fund by provision is simply [INAUDIBLE] provision that the money is supposed to be. We eliminate portion of the DMV transaction fees, set aside for the mercury pollution devices. Revenue from the $0.50 fee of the vehicle, tiddling and other DMV Transactions are dedicated to the mercury switch. [LAUGH] We increased funding to the North Carolina historical site by $20,000 from $40,000 to $60,000 annually. This is the group that puts up historical markers along the road. We have a lot of history in this state so we're glad to do that. That was a request from the governors for the budget by the way. We revised the DOT bidding process to increase transparency and as I mentioned the funds for litter prevention and removal, we're trying something new this year. We're appropriating $10 million as I stated in the money portion, $5 million of this is going to be divided equally among the 14 divisions Divisions and the other $5 million is going to be put in a grant form. We're going to use the tier structure, so that the less fortunate or lower income counties in tier one will have to do a 25 that match to two or 50 cent match and two or three would [INAUDIBLE] for one match for that five million dollars of [INAUDIBLE] we'll see how that one works out, a highlighted provision is that we are repealing the light rail funding cap and we're planning on a priority boarding past for ferries of $150 for priority boarding. Which means if you want to go to the front of the line and be assured that you're going to catch a ferry for $150 you can arrive late and still catch that ferry, we have revisions to the DMV medical review program that has been a bit of a problem, people can have their licence or loose their licence for their privileged to drive for medical reasons. They're easily, but sometimes when those medical conditions have improved or no longer exist it has been problematic and they're being able to get those privileges returned and so we're trying to streamline and get that better. And I mentioned the maintenance account and etc. Of note is that we have a provision to clarify just who's in charge at the DOT, and so that is, we have a provision there to specify the authority of the chief and division Engineers and so hopefully going forward we will know who beats the drums and we'll know who is accountable. And Mr. chairman that is, a view of the transportation budget, welcome some questions for the chair so desire. >> We'll take questions at the end Senator Rabin But thank you for that presentation. Yes sir. This time we have information technology Senator Hass you presenting same on this?
Welcome back. [LAUGH] You're welcome. Thank you Mr. Chairman and again members of the committee. The information technology budget, well not a large budget for appropriations, it's a $43 million budget. This also depends funds from each of our other agencies, the government IT fund about 189 million in that, those were coming in and how they Allocated. We're kinda working on the transition of moving this to a department and the funding and how that occurs, trying to show up some of those changes that have happened recently with divisions and creations of new departments and moving things across the department. So the first is there is a transfer, to increase The transparency in the budget of the department, we're eliminating four and a half vacant positions that have been vacant for more than 180 days and are sending an emphasis to the department that if you now choose to continue those positions, they need to be filled. Those who are coming historically all of the money in IT Did not revert because it was coming from a reserve funds so as they are transitioning to a department, now they have to look each year and if they are not spending those, those would be available for general fund coming up. Too large things, we are providing the funds for the SBI's license to the Mimics Data Analytics tools system, through And we are also providing funds for the P20 school works and common core follow up data system under GDAQ Not under DPI. Their is no point of creating a whole new agency the expertise we already have in GDAQ in making sure that it's controlled and functioned in that manner. We are also beginning a cyber security apprenticeship program for disabled veterans. We are gonna begin this believe with five disable veterans that we are going train who have already completed some course work predominately the community. aAnd I get cyber security certification for them as they work in the department. For those This is an ongoing program we are now allow the department to fund through it's budget and right making in years and the future. So they have more flexibility to expand that program and move it out. But this was a recommendation and the governors program and something we found to be very supportive of and what's it's doing. And And we are also instructing the department to use it's cash balance that it currently has to provide great credits to specific agencies. that's where we are coming in. So as we gonna kind of set these rates some agencies after the budget found out they were gonna owe a lot more a lot less in their IT department. Then they thought prior to their budget and we are just trying to show that up. We've allowed the department to use it's cash balances to show that up. We are requiring OSBM to establish a general fund budget code for the department of IT. This first time will be coding it under that process and allows OSBM to realign the budgets. For the agency we are transferred we solace particularly in department of administration with the department of military and veteran affairs as well natural and cultural resources when they kind of came out of their department. We've had some confusion on allocating IT funds and how those were allocated so this merely allows those OSBM to adjust the budgets. to keep that whole, we did provide funding for the ERP system that's in the department actually said on what the response does that they could fund the additional amount out of savings for consolidating the department. So that's the funds we've used for that. Our process here but we can begin working realigning air systems to prepare for an ERP and more importantly we exempt the state controller. The SBI, the state highway patrol and the division of emergency management from IT oversight and consolidation. This actually differs from last year, this is now a recommendation of the governor and the department and moving forward as to what areas should not be included under DIT and we have agreed to follow that recommendation. I don't have anything else for this. >> Okay, well thank you Sen Hise. Thank you for the presentation to all the sub committee chairs. We appreciate it. Members you have a approximately 20 minutes to turn in your amendments. 20 minutes for amendments deadline at 10:30 this morning. At this point in time we will open the floor for questions from members. [BLANK_AUDIO] Senator Bryant. >> Thank you >> Yes Ma'am. >> The first question is about page F19 item 38, the Western School
of Medicine in Ashville, could you, someone, staff maybe update me on this project has there been something in this steady and what would this western school of medicine do or consist of? >> [INAUDIBLE] you wanna turn that [CROSSTALK] >> I wanted the Chairs whoever would be best, whoever you you all deem best to talk about that. >> Senator Apodaca. >> Thank you. >> Please repeat your question Senator Bryant. >> I was asking about the Western School of Medicine I just went for me with that project sort of what the history of it and what would the Western School of Medicine be comprised of? Yes sir >> I didn't know when to jump in or not, Senator Bryant if you'll recall last year we established the eight million dollar recurring annual appropriation to create a facility of Mayhec which is our area of provider to have more residents pass through in order to get more healthcare in the mountains. I know we have a tendency in this general assembly only to worry about East or North Carolina, but we have our own issues in West or North Carolina with And no doctors and so this was put in last year in order to get more positions more resonance passing through to deal with the specialties of OBGYN general surgery and psychiatry. This is an effort to move forward it is not a new medical school Because we can sit here and debate all day, whether new medical schools work or not. I could say they don't, we need one medical school in this state in needs to be in Chapel Hill with two branches. But we're not going to reinvent that today, so this is an effort to get more docs in Western North Carolina It's an existing program and it is been welcomed with open arms and it looks like it's going to be very successful. >> Thank you Mr. Chair could I just follow up? >> Yes ma'am follow up. >> Senator I just didn't remember last year if being called the UNC School of Medicine's ask for campus, that's what threw me off. I do remember the May Head Appropriation I just have a similar question and perhaps Senator Apodaca can advise on this. On the western school of engineering and technology, I didn't know if this was university level wanted a cooperative high school counter program or exactly what is going on there? >> I can help you with that also, yeah okay Senator Bryant if you remember in the bond issue we funded a new school of math and science and this is the equivalent again for western North Carolina,. So we're trying to catch western North Carolina up with the other parts of the state, thank you for your question, so this is our new math and science school for lack of better terminology in Okay. Sen Bryant, you have no follow up? >> I do. Not a follow up, another question. >> Okay. >> In the Health and Human Services, in the special provisions there was a study on page 90 in the HHS section under the miscellaneous sub part 12.1, I guess, there was a study to establish an optometry school at Wingate. And so I was just curious. I didn't see any money tracking this provision, but I just had since this morning to look at this. So is there money related and is this something we're funding, thinking of a public funded project or public private something? What's the vision there? >> Senator Tekra will take that question, for [INAUDIBLE]. >> Thank you Mr. Chairman. Senator Brant there is no money there. The Optometrist in the state are ageing out. There are no schools for optometry really around us or in the state. Private universities have jumped on pharmacy and PA schools And so Winget has agreed to entertain the idea of privately funding the school and then the requirement of the state would be recurring appropriation about $900,000 a year to establish a free clinic, so that the Optometry students at Winget, should the school come to fruition, be able to treat Medicaid patients for issues which arise to determine whether they have glaucoma, high blood pressure
or diabetes from the eye exam so that's why its there. No ma'am there is no money This is just a study so we can get some numbers together to see what it's gonna take, and to see if Winget university can get a private backing to set up an optometry school. >> Senator Nash you wanna add to that? >> I did, a little more than two and a half years we made some changes to scholarship We asked the university system as well as the private school's in the state to find their candidate for an optometry school, and have not gotten any response from the university system, or others as to any of those campuses ability to establish fund and maintain an optometry school,this was the first First opportunity we've seen where [UNKNOWN] came up and had that opportunity we felt like we could jump on but we felt like we needed a lot more information and wanted to put study in. Before we can do that, I just wanted to emphasize we have seen the need significantly for an optometry school in this state but we have not yet found an institution willing Take on that direction until this. >> Senator Bryant. >> One more. On page 116 under the special provisions under the deobligation of CDBG, I notice, actually in both the House and Senate budget, that the House Bill 108 provision which was the Proposal of a site development loan fund for municipalities or counties who needed a loan fund to develop economic buildings and facilities for economic development projects, it was eliminated in both budgets. So I'm wondering if there's some other source for that that either the Chair or staff can advise me off or what's the suggestion on that because I keep getting calls from my economic developers about this HB108, will this happen, what's the process? >> Senator Brown, you wanna take this? >> Senator Bryant We tried to take out a lot of provisions that had bills associated to them that's why you don't see this quite as thick as normal because we did try to do that. Hopefully that bill will be heard in committee. It's still alive and we'll have a debate on that particular bill. >> Thank you. >> Further questions Senator Bryant, are you good right now? >> I do have one more, Mr. Chair. >> Yes, ma'am. >> And this is on the status of pre K and child care subsidy from reviewing, I'm assuming that it's status quo, but I'm not sure. Could staff or the Chairs advise what does this budget Do for pre-k and childcare subsidy. >> Senator Hise will entertain that question. >> Predominantly that is correct. There is some change o using federal funds that were available in the block grant this year to cover some of the slots that were covered by the state funds last year but overall you'll see those levels consistent with what you've seen in previous years. Thank you. Members, you have 10 minutes approximately to turn your amendments in if you have not done so. Senator Robinson. >> Thank you, Mr. Chair, I do have several questions. Back to [INAUDIBLE] that's looking at At this last night. Back to page 85 where you have adult. Now I guess this is Senator Hise, Medicaid covers for routine eye exam and I'm glad that's back in. Was any attention given to funding of dental for under-adult Medicaid? >> Senator Hise, would you like to address that question? We have not expanded your change general services I will note that they are curved out of the capitated system so it's hard to make those decisions to create another stand alone paper service type program as we are going through since they are not in that process but again this is also only So only coverage for exams and not for services for us as well but under the cost we had that was the ability we had to make that adjustment. >> Follow up Mr chairman. >> Yes Madam follow up. >> You said only cost for exams not services at [INAUDIBLE] so how will services be covered? Services covered right now there are a variety of options that individuals can use there is a lot of none profits out there that provide our glasses and others for individuals that are in we don't think that fully meets the need that's would coming in but this is much more about the health of individuals from identifying Diabetes and other things that can come through having an eye exam than it is about correction of vision. >> Senator Tucker would you like to add to that? >> Yes sir Senator Robinson has followed it too we did look at providing glasses for the prison system as well which would have quieter a more appropriation plus it would take about a year year to get
up to speed so in a long session we'll look at from a public policy standpoint, offer an exam and possibly offer new glasses. But right now this is just for the exam. Your point's well taken to be able to diagnose something and then tell somebody that they can't see but not provide any glasses since I know where you're going. We did look at that cost an the time frame so we'll have to look at that later on as far as the provision for glasses. >> Okay. Thank you. Sen Robinson. >> Another question in that area, and it may be just the same. And I noticed under the section, page 73 And I believe in the house budget the funding was dedicated to diabetes and I see here is general in terms of the department being able to allocate funds. Focusing on help disparages in general. I'm I correct Senator Hise or Tucker. Is it general. Specific to diabetes. >> Senator Hise you wanna address that question. >> Page three and four. >> I believe that the requirements of the general funds that are in that may adjust may control the diseases that come through I may wanna clarify with staff on that for what it's coming. We actually did maintain the office minority held than that for establishing where the house it completely eliminated it and placed it under other programs. > Senator Robinson would you like staff to address that question. >> I would I wanna know if it's specific to diabetes or is it general. [INAUDIBLE] >> Okay, Steve who in your team would like to address that? Oh , I'm sorry. Okay, go for it, I'm sorry. [INAUDIBLE] >> Denise Thomas, Fiscal Research. Senator Bryant, the office will remain and the funding would - >> Robinson. >> I'm sorry, Senator Robinson. The funding would go to What the same purposes that it's being used now for a variety of chronic diseases, and HIV, infant mortality, cancer etc, is just that instead of putting out the guiants/g to community based organizations now is directing the secretary to come up with a methodology for dispersing that funding for those purposes Okay, thank you Denise. >> Thank you Mr. Chair, I have a couple on education. >> Okay. >> If we'll go back to page 44 in the provisions NC/g gap, I guess this is Senator Burr or whoever you desire, in terms of NC/g gap tell me what's happening to that in this area. I thought I heard that it was gonna be taken out but that doesn't say so here. Tell me what's going on with the NC gap. >> Senator Barefoot would you like to address that question? >> Sure, thank you Senator Jackson. What happens with NC gap is the program is delayed for one year and what what we ask if we look at section 11.7 B on page 44, it directs the President of the University of North Carolina in consultation with the board of governors to adopt a plan to improve student completion of [UNKNOWN] degrees then include specific targets for each constituent institution's completion rates that's effective for the 2017/2018 year and basically they have to come up with those pointers and they have to start to work towards that. And if they don't then [UNKNOWN] will go into effect for those institutions. >> Okay. >> Follow up Mr. Chair. >> Follow up >> So the short answer to it is that NC gap isn't gone, is gonna be a matter of what the board of governors decide and it still can impact those universities that it was intended to initially. >> Senator Barefoot. >> Thank you Mr. Chairman, no it's not gone it's still there. Although I would clarify by saying it's not a matter of necessary with the board of governors decide, this specifically says the president of the University of North Carolina system in consultation with the board of governors shall adopt a plan to improve those working with the constituent institutions. So for instant gap to go into effect, it's dependent upon those institutions And the UNC system the president coming up with a plan to improve those schools. >> Okay thank you senator Barefoot. >> One other, maybe two questions.>> Okay so we->> If we move on- >> Pardon me just one second. We have about four minutes left for amendments members if you have not turned them in. Thank you. Go ahead Senator Rob. >> Thank you Mr. Chair. If we move on to access to affordable college education, you know I wasn't gonna leave that out. If we look at page 45 Senator Apodaca, we having 2018/19 funds but there is nothing in the money report. There's nothing for covering that cost between 18/19?
Or is it just that it would be impactful in 2018, and so it wouldn't be, you tell me. I don't wanna answer my own question. >> You answered your own question senator, it's 18/19, this is what 16/17 dealing with [INAUDIBLE] but it is committed to. Then it was, I think, 300,000 for the Cheetos/g White Scholarships to set those up. And have them ready to go next year. >> Okay. >> Follow up Mr. Chair. >> Yes Ma'am, follow up. >> I thought I heard you say something earlier about some provision for planning for that for the first year. I didn't see it in the money report and I'm looking at that. >> Isn't it there on the scholarships [INAUDIBLE] >> Where is it? >> [INAUDIBLE] Yes Mark [INAUDIBLE] >> Yes Mark Warner of fiscal research. Senator related to that provision there is $300,000 appropriated to UNC general administration for the [INAUDIBLE] scholarship to help administer that scholarship program, but that's the only appropriation for 16/17 In the committee report page is page F20 item 42 but then for the rest of the appropriation associated with that, they would happen after physical year 16/17. So it wouldn't appear in this [INAUDIBLE]. >> Okay Mark. Senator Robinson. >> Yes, just for clarification. So I thought I saw an original bill Senator Apodaca that for the provision in terms of the $70 million in 18/19 there was money in 17/18. Whichever that year is. The year prior for the university in terms of planning, especially since understanding is supposed to come back with some recommendations themselves. Is there no other fund in there in terms of hiring someone to develop that whole program? >> Senator Apodaca Senator we felt like thy had sufficient staff and all, and ample money in order to do that on their own without additional monies. >> Okay. >> Just one final question. >> Okay. Senator Robinson. >> And could staff update me and bring forth in terms of the focus growth money that earlier was in the budget. I don't see it in the continuation budget. Is focused growth money for minority institutions and smaller universities? Is it still a part of our budget? And where is it? I see the enrollment growth is pushed into UNCs budget, but tell me where the focus growth money is, if it's there, and if it's not tell me when it ended. >> Okay. [INAUDIBLE] Oh okay. Fiscal research division. Senator I believe the focus growth institution designation was eliminated but we'll check into that and get back to you in terms of the specific date. >> Good. >> Thank you Brett. Thank you Senator Robson. Senator [INAUDIBLE] >> Thank you Mr. Chairman. I'm trying to Muddle through this thing, but I find an interesting provision, on page 63 and I'm trying to understand it either staff, probably staff could explain to me this forward funding idea based on Senator Robinson's question. This froward funding idea in the opportunity It is scholarship programms. Specifically it looks like, top of page 64, we're appropriating $134 million in 2026. I may have been in Mars or something for a while, but I'm just trying to figure out What we're doing. Not only forward funds for ten years appropriations to reserve. I'm just trying to figure out how that works if we know we can't do it. One legislature cannot bind another. So I'm wondering what concept is in the staff could help me with that I might be a little better informed and may be not >> Answer that question. But to your statement about one legislature abandoning another one. You and I have a conversation what happened happened in 1999. They were paying for today. [LAUGH] Okay Mark. Yes, [INAUDIBLE] of [INAUDIBLE] research.
So on the committee report page F20 item 45, there is the initial appropriation to the reserve for the opportunity scholarship program. This appropriates $34.8 million to a reserve that will be used to fund scholars Ownership's for the next year. So what the forward funding reserves does is it sets up a pool of money that will fund scholarships for the subsequent year so that actions of the general assembly of current year don't impact scholarship awardees. And then what the provision does is it sets up a A statutory appropriation that increases the amount of money appropriated to the reserve for scholarships available in the subsequent year. It increases that up by $10 million each and every year up to capped amount of $144.8 million in physical year Is 728th, so [INAUDIBLE] action by the general assembly and one of those in a subsequent year, that appropriation would occur. >> Okay, so [INAUDIBLE]- >> Let me interrupt just one second the amendment/g time is over with folks so if you didn't get it in I'm sorry. Senator [INAUDIBLE] follow up. And you perhaps would enlighten me on the reference to 1999 I did't quite grab it. >> Okay- [CROSSTALK] if you'd like for me to I'll be glad to. In 1999, I don't know if it was particularly DOT or the helm administration government that deal with the federal to do the dragnet at the Wilmington harbor and And that is actually, it was a post, you know no interest no principal until they had finished. And it is anticipation we found out a few weeks ago, actually last week, they anticipate finishing this year so our payments will start. So that is $37 million that you'll see that That will actually going to pay the federal government off in process of saving 41 million over the 30 years of the night. >> Are you suggesting then, because I understand the arithmetic that Stan just explained. Are you suggesting that this is a contract as apparently the deal in 99 wasn't I don't know don't know anything about it but it sounds very similar to a contract which can obligate to long term. But I'm wondering how this general assembly can obligate another general assembly to appropriate two years from now because if that's the case it's an interesting concept and it seems That would satisfy the issues that Sen Robinson is raising about the scholarships at the universities. So if we can start that kind of process there ought to be some equity in the way that we do it since the university is totally public the he opportunity scholarships are non public but there's no contractual basis for it. So I'm just trying to get the precedental value of what we're beginning to do here. Because when I see that we go from this to appropriating $100 million more When probably most of us are gone without any real explanation for it on an ongoing basis. It concerns me somewhat, so if the Chair could share with me why we do this unique thing in this area but we don't look at it for the university or other things. We could do it in public education for that matter. >> Mr Chair Senator Brown. >> Senator Blue as you know this will have to be revisited every single year and the next legislature can decide that they wanna end this programme.They can make that decision.This is a long term plan,it's in place and is laid out but again it's up to the general assembly Assembly moving forward to continue with this plan if that is so they desire to. >> Follow up. >> Yes Senator Blue. >> What Senetor Brown that being the case. Do have any objection to doing the same thing with respect to senator Apodaca's wonderful idea regarding scholarship? >> Actually no. >> And regarding the $500 But because that would have leave all of this concern and all of the agitation that you see arising, responding to his concept, and if we're gonna do it we ought to do it in some uniform way it seems to me. So you wouldn't object to it? >> [INAUDIBLE] >> Since the time for amendment has passed, I'm sure Senator Apodaca can figure out a way to amend the budget to address that pressing issue. >> Well Senator Blue, I'll just say I'm sure in this budget, we're hoping the House will take it as it is as ideas and confer and send it back but I sort of have my doubts on that.So I'm sure we'll go into conference and we'll have an opportunity to look at some of those things Senator Ford, I believe I had you next.
Unless Senator Brock wanted to address what Senator Blue/g was saying. >> Yes - >> Do you mind Senator Ford? You wouldn't - >> I was gonna tell them about it, he's hard at hearing [INAUDIBLE] >> I think the issue that we have is that it was a surprise of the Wilmington project to us that it hasn't been and our history in the past to obligate future general assemblies to expanding, so it was a surprise to the chair and everyone just learned not long ago of actual project and it was just kind of peculiar how it happened and we checked to see if it was, it was first I ever heard of something happen that way, we can call on It was 99 so it was Governor Jim Hunt, Jim Blanchard and Mark or Tony here in the senate, so I think that we should talk to them and find out what they did and try to work that situation out. >> Senator Ford. >> Thank you Mr.Chairman. Just real quickly here, one question is really Relates to any committee on varied to small businesses and access to credit in capital. We heard a number of different individuals come and testify before that committee, to express to us the difficulty in small businesses in this state being able to get commercial loan Homes. And I thought that there was a general consensus in the committee that the state needed to, in some meaningful way to address to capital for small business owners in the state. And so when I looked at the budget this morning, I noticed in the commerce State Aid the support center budget Vision for $2.5 million was eliminated and so I'm wandering Ms.Chairman, is there somewhere else in the budget that will deal with access to credit and small lending in the budget that perhaps I don't see. And if you could bring that to my attention I know that I would appreciate it, as well as the thousands of other small businesses who are looking for access Was to credit in capital in this state would be appreciated as well. >> Senator, to my knowledge there's no type of funding in the budget for that. We tried to keep as much policy out of this budget as possible and Senator we don't have anything to deal with it, we were hoping to bring forward to committees and send it through the full process. can be discussed Senator Brown would you like to add to that? >> Yes there is a bill alive that's gonna be discussed and that would hopefully address that issue. >> Okay other questions? If not, not seeing any from the members, Senator Davies do you have just have a quick question, [INAUDIBLE] remind me what we do with retirees in this budget? As far as a column/g there is no column/g in the Senate budget sir. >>Okay. Senator Brown this would have to be the last question, because there's an education meeting going on and we have to go and recess to go over the amendments shortly- >> Okay, I thank you. >> Okay Just remind me. I know there's some combination of merit, increases and bonuses for state employees. Can staff or chair remind me of who gets that, what's the parameters? Can I get a sort of answer? Reminder on that Senator Brian, you wanna do that? Or I can take a stab at it. >> Well I'll try if you want me to. >> Go ahead please. >> All right. Let me find my sheets so I can get my numbers exactly right. We've got 95 million in recurring dollars That will be allocated out to the agencies. Given the inflexibility to give those dollars out based on performance, based on hard to fill positions, just some criteria that they can try to shore up their particular budgets And there's also 85 million in bonus money that can be allocated out in the exact same way. And this will be given to the agencies with discretion. There's also report requirement where the agencies have to report back to us how those moneys were allocated and there's also a provision that says this cannot be in across the board So, we've talked about this before, there are a lot of positions in State government that aren't at market and our thought has been to try to shore that up as much as possible and this is no way to do that. >> And to add to that we done it in a sort of block grant fashion so that we go through the agencies and those directors and managers we felt use of personal best they didn't get in the bonuses. >> And having said that Mr. Chair also if you'll notice everyone that's eligible for a step increase got those step increases in this budget, so this is on top of that. >> That is correct, okay. >> Excuse me, where is the step increase provision? I missed that.
Is it separated by agency or in the reserve? >> It's in the agency salary piece is where it's at. >> Okay. >>And each one of the budgets sections. At this time we'll take a. recess to 11:30 and we will reconvene at 11:30. Thank you members. [BLANK_AUDIO]