Republican lawmakers have wrapped up their first session in control of the General Assembly in 140 years, steering state government and policy on a conservative course after decades of Democratic rule. House Speaker Thom Tillis, R-Mecklenburg, hammered the gavel at 12:22 p.m. on Saturday June 18, wrapping up nearly five months of work.  Republicans enacted a two-year state government budget two weeks ahead of the start of the fiscal year - the earliest in more than 30 years - and over the strong objections of Perdue, who became the state's first chief executive to issue a budget veto. GOP leaders managed to override Governor Bev Perdue's veto of the 2011-2013 state budget (HB 200) veto by keeping five House Democrats who supported their $19.7 billion spending plan.   Governor Perdue's proposed budget was very favorable to mental health, and included a $75 Million trust fund that would have included housing expansion

The new budget that takes effect on July 1, includes severe cuts to early childhood education, environmental protections, heathcare, social services and our public education system (K-12), to our community colleges and to our universities. It also makes many significant funding cuts to nonprofits and state programs.

 
The budget law cuts sales taxes by a penny starting July 1 to a base of 6.75 percent while making significant cuts to public education. The budget also extends the public school year by five days and aims to begin merit pay for teachers based on student performance "This has been a disappointing session for the people of North Carolina," said House Minority Leader Joe Hackney, D-Orange, adding that voters will decide whether Republicans have moved the state backward on education, health care and the environment.  

(excerpts from Gary D. Robertson, THE ASSOCIATED PRESS, 6/19/11)

Unfinished Business

Lawmakers are scheduled to return to Raleigh on July 13 to redraw legislative districts, consider whether to override any bills the governor might veto and deal with election laws. Democratic Gov. Beverly Perdue vetoed her seventh bill of the session as lawmakers left town Saturday, rejecting a measure that would keep school districts from remitting automatic payments to the N.C. Association of Educators. Other bills that Perdue staffers say she is considering sending back include measures that would:

• Require voters to show photo identification at the polls. 
• Place waiting periods and other regulations on women seeking abortions and the doctors who provide them. Women would be required to receive an ultrasound before a pregnancy is terminated. (The Governor has vetoed this bill)
• Rewrite the state's medical malpractice laws. The laws cap damage awards and give drug makers some protection from lawsuits if their products get federal approval.

In addition to the July redistricting session, lawmakers plan to come back in August or September to sort through a slate of possible constitutional amendments.

(excerpts from Mark Binker, THE NEWS & RECORD; THE NEWS & OBSERVER, 6/19/11). 

Click here to read the NC Budget and Tax Center's analysis of the newly enacted state budget. 

How did Mental Health Fare?

Mental health will experience belt tightening through a 2% cut in provider rates for those using Medicaid to pay for their mental health services.  This follows years of similar cuts to a fragile system.  The entire state will experience more change, but also more opportunities, through the passage of HB 916.  This bill will require that the entire state, through approved Local Management Entities, manage all public resources differently- through a waiver of medicaid traditional rules, including the fee for service billing model by providers.  This system must ensure: 

• easy access to care
• the availability and delivery of necessary services
• continuity of care
• fidelity to the PBH model
• the LMEs must maintain a local presence
• the LMEs must implement a process for feedback and exchange of information and ideas to ensure communication with consumers, families, providers, and stakeholders
• the LMEs must establish and maintain systems for ongoing communication and coordination regarding the care of individuals with mental illness

LMEs have all now applied to be considered (12 groupings) for waiver sites, and will hear in August of their status based upon a review process.  Those that are not approved by January 2013 will be required to merge with an approved LME.  County governments are not financially liable.  

This is an opportunity for engagement in shaping the service system to match the needs of those living with mental illness and their families- get involved in your LME's processes regarding formulation of their waiver service delivery system.

Remember that SB 756 - regarding bail bondsmen and pretrial release programs?  Your calls and emails worked!  Following Representative Insko's successful amendment to this bill (at our request) the bill did not make it through the hoops it must go through to get passed at the end of the session.   If it is taken up again, it will be with our helpful amendment. 

Housing
Affordable housing programs were also cut. The NC Housing Trust Fund received only $7.8M in funding, a 22% cut in funding from last year and a nearly 50% reduction compared to its funding 5 years ago.  

NC Housing Trust Fund
The NC Housing Coalition had a  big initiatives for the 2011-2012 legislative sessions  to secure a dedicated revenue source for the NC Housing Trust Fund. Introduced by Sen. Eric Mansfield, Sen. Debbie Clary, and Sen. Rick Gunn, SB 462, "Distribution of Excise Tax on Title Instruments", would change the distribution formula for the Excise Tax on Conveyances (also known as the deed stamp tax) so that a portion of the revenue is dedicated to the NC Housing Trust Fund.  

The bill did not pass this year, but is still alive for the 2012 Short Session. 

Thanks for your advocacy-your calls and your emails really do make a tremendous difference. NAMI is becoming very well known at the General Assembly- thanks to you- our grassroots.