We worked long hours this week as we move closer to adjourning this year’s legislative session.
Our work has helped move to forward legislation on ethics, ban video gambling, extend economic incentives to business, and expand DNA testing in the criminal justice system. We still have a number of important bills to consider before session comes to a close, but I anticipate that we will remain here through Saturday
before returning home.
Once the legislative session has come to an end, I will update you on the details of the major legislation that has been approved over the past few months. This week, I wanted to provide some additional information about the budget that Gov. Perdue signed into law last week. This information highlights items included in the budgets for Health and Human Services, the Judicial Branch, General Government, and Transportation. Figures in parentheses represent decreases in funding. Some of these are cuts in services, while others represent savings expected from more efficient operations.
Thank you as always for your interest in state government. If you have any questions about this information or anything else that I can help with, please contact me. I am always glad to be of service.
Health and Human Services
Provides funding for small rural hospitals for assistance with operations and infrastructure maintenance – $1 million.
Provides state funds to continue to serve people in the AIDS Drug Assistance program who are enrolled as of July 1, 2010. These funds will allow eligible individuals who are on the waiting list as of July 1 to be enrolled. To the degree that funds are available, additional people will be enrolled in the program – $14.2 million.
Provides savings in overall Medicaid expenditures through the expanded efforts of the Community Care Network of North Carolina (CCNC). DHHS contracts with CCNC to manage use of Medicaid services. Savings will be generated by expanding CCNC’s care management programs in hospital discharge, mental health; palliative care, and pharmacy. The improved Informatics system will enhance data integration, analytics, and reporting, increasing performance and cost savings – ($45 million).
Generates savings by adding mental health drugs to the Preferred Drug List (PDL), which were previously not part of the PDL savings, and also requires prior authorization but only for off-label prescribing of mental health drugs – ($10 million).
Reforms the In-Home Personal Care Services program to provide care to those individuals at greatest risk of needing institutional care. Reform transitions eligible recipients into new program for adults needing extensive assistance with two or more activities of daily living – ($50.7 million).
Eliminates Medicaid reimbursement of ‘never events’ in hospital inpatient settings. ‘Never events’ are certain types of medical issues that develop or are acquired while a person is in a hospital, but should have been prevented. The policy change brings Medicaid in line with Medicare reimbursement – ($5 million).
Generates savings through new Program Integrity initiatives, including Medicaid SWAT teams for on-site investigations, strengthening Medicaid fraud laws, innovative technology to detect fraud and abuse, and prepayment reviews for questionable providers – ($40 million).
Generates savings by doubling the Medicaid Investigative Unit staff at the AGO to expand the prosecution of Medicaid fraud and abuse. Additional staff will ensure increased prosecution and additional Medicaid funds recovered from fraudulent providers – ($1 million).
Streamlines functions within the Child Support Section and reduces operating funds to coincide with the elimination of 16 state Child Support Enforcement offices – $1.3 million (20 filled positions, 13 vacant).
Mental Health
Provides funding for community services administered by Local Management Entities, fully restoring cuts made last fiscal year – $40 million.
Increases funds available to purchase local hospital bed capacity for crisis response within communities, bringing total funding to $29 million – $9 million.
Increases funds available for training direct care staff and front line leaders in patient care – $534,795.
Reduces state funds for the Whitaker School; the program will become a Psychiatric Residential Treatment Facility in which services are Medicaid reimbursable – ($1.9 million).
Judicial
Reduces the Administrative Office of the Courts central administration budget – $1.1 million.
Provides funds to expand the Medicaid Fraud Criminal InvestigationTeam. The expanded unit will consist of sworn investigators, attorneys,program assistants, financial investigators, and administrative support personnel. This investigative unit is responsible for obtainingconvictions of community service providers that commit fraud, recoveringmrestitution and civil penalties for the benefit of the Medicaid Program and the Civil Forfeiture Fund, and deterring fraud – $600,000.
Reduces the appropriation for medical services for inmates based on capping fees paid as a percentage of billed charges. This reduction applies to inpatient and outpatient hospital services as well as professional services – ($20.5 million).
Consolidates administrative functions between Brown Creek Correctional Center and Piedmont Correctional Institution and eliminates four duplicative positions – ($149,038).
Establishes an operating reserve and creates 554 positions to staff the Central Prison Hospital and Mental Health Facility – $5.3 million.
Establishes an operating reserve and creates 227 positions to staff the hospital and mental health facility at NC Correctional Institution for Women – $3.7 million.
Provides funds for community work crews at prisons throughout the state. These crews provide labor services for local governmental entities – $1.6 million (43 positions)
General Government
Appropriates funding as part of the Good Government package for fourpositions and operating expenses to ensure the State Ethics Commission has resources for design, implementation, training, and technological support for an online/electronic personal and financial disclosure system (Statement of Economic Interest, or SEI), and to meet the gift ban requirement – $492,702.
Provides funding for the Good Government package, including an attorney and software development – $421,000.
Reduces General Assembly operating budget – $2.2 million.
Provides funding for the Resolution Initiative II, which is estimated to collect an additional $110 million in revenue for FY 2010-11. The department has flexibility to apply these funds towards positions and/or operating expenses – $846,909.
Appropriates funding to sustain historical grants to military installations in order to provide community service and quality-of-life programs for military members and their families – $500,000.
Transportation
Eliminates 30 vacant positions – $1.9 million.
Provides funds to the Rail Division for grants to short line railroad companies for rehabilitation projects that strengthen North Carolina’s short line rail infrastructure – $2 million.
Adjusts funding in FY 2010-11 for the secondary road improvement program based on revised projections for motor fuels tax revenue – $3.8 million.
Provides funds to the Highway Patrol for matching funds for the Public Safety Interoperability Communications grant from the US Department of Commerce. The grant will assist in the further development of the Voice Interoperability Project for Emergency Responders (VIPER) network – $4.7 million.
Increases appropriation for the Intrastate System for FY 2010-11 consistent with new revenue estimates – $5 million.
Increases appropriation for the Urban Loops for FY 2010-11 consistent with new revenue estimates – $2 million.
Notes
AMARK Corp., an industrial contractor, will expand with a new fabrication facility in Pasquotank County. The company plans to create 43 jobs and invest $1.9 million, including lease payments, during the next three years in Elizabeth City. The project was made possible in part by a $126,000 grant from the One North Carolina Fund.
IBM Lender Business Process Services Inc., a wholly owned subsidiary of International Business Machines Corp., will hire 600 workers during the next two years and invest $3.7 million to open a managed business process service center in Research Triangle Park. A state Job Development Investment Grant helped make the project possible.
On Wednesday, members of the House and Senate honored the life and memory of former Senator James R. Turner with a Senate Joint Resolution (SJR 1460). James Turner was appointed to fill a vacant seat in the State Senate in 1979 and served the General Assembly with honor and distinction for the remainder of the term. James Turner died on October 8, 2009, at the age of 75, and is survived by his wife of 42 years, Dr. Carolyn Simpkins Turner; a daughter, Susannah Turner Harvell; a son, William Joel Turner; and grandchildren, Blythe Turner, Will Turner, and Jack Turner.
Meetings/Events
I plan to attend the following meetings/events:
NC DOT Public Hearing High Speed Rail, Norlina-July 13
Lunch & Learn-NC Institute Minority Economic Development, Henderson-July 15
Cantaloupe Festival, Ridgeway-July 17
Woodland Shrimp Festival, Woodland-July 17
Please invite me to attend your county, city, community or civic, etc. meetings or events.
As I’ve said many times before, I hope you will continue to let me know how you feel about the issues that are being debated by the North Carolina Legislature and the challenges you and your family are facing
each day.
By working together, we can make Northampton, Vance and Warren Counties and all regions of North Carolina a better place to live, work and raise a family.
Please remember that you can listen to each day’s session, committee meetings and press conferences on the General Assembly’s website. Once on the site, select “Audio,” and then make your selection – House Chamber, Senate Chamber, Appropriations Committee Room or Press Conference Room.