The NC General Assembly finalized the 2016-2017 state budget on the last day of the legislative session, also the first day of the new fiscal year. Counties will benefit from the inclusion of $40 million in additional funds for behavioral health initiatives, including recommendations from the Governor’s Task Force on Mental Health and Substance Abuse. Strong advocacy work by NCACC and member counties, including a letter of support from the association board, contributed to these recurring and non-recurring funds being included in the final budget.
The budget contains noticeably more earmarks than in recent history, not surprising in an election year with several tight statewide races. State employees receive a 1.5 percent salary increase and a .5 percent bonus, and the legislature set aside $28 million for one-time merit bonuses (including a $12 million shift of funds from a market adjustment reserve fund). While state retirees received an increase, local government retirees did not. The Emergency Response and Disaster Relief Fund (rainy day fund) grew by $10 million.
To read a more detailed report about budget items of interest to counties, click here.