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Patricia Yancey
pyancey@bellsouth.net
THE OUTCOME OF THE
NEGOTIATED BUDGET

ADOLESCENT PREGNANCY PREVENTION CAMPAIGN OF NORTH CAROLINA LEGISLATIVE UPDATE
Wednesday, July 9, 2008
LEGISLATORS HAVE APPROVED THE BUDGET AGREEMENT.  A FINAL VOTE
OFFICIALLY APPROVING THE NEGOTIATED BUDGET BILL OCCURRED TUESDAY, JULY 8.  RECORDED BELOW ARE SELECTED ITEMS IN THE NEGOTIATED BUDGET. 
 
Negotiators reached an agreement on the budget just before legislators left for the July 4th holiday.  The first vote on the agreement was taken Monday night, July 7 and final approval occurred Tuesday, July 8.    The budget bill has been sent to the Governor who is expected to sign the measure.  
 
The final agreement contained some surprising changes, most of which resulted from the fact that revenue collections were less than anticipated -- approximately $70 million less.  The shortfall forced  top legislative leaders to renegotiate, alter and eliminate funding for several important items including altering funding for APPCNC and teen pregnancy prevention initiatives.  Funding for APPCNC and the teen pregnancy prevention initiatives, which had been recurring, was made non-recurring in last-minute efforts to make adjustments to accommodate the shortfall.  
 
APPCNC's funding and the money for teen pregnancy prevention initiatives were among several items that had been slated for recurring funding before the "budgeting process" moved totally behind closed doors and before the announced shortfall.  Unfortunately, when items are not identical in both budgets, alteration such as this is always a possibility during the conference process.  The good news is that APPCNC will receive additional state funds although non-recurring, all pregnancy prevention programs that were slated to receive funds will be funded, and there will be no "continuation budget review".  There is money for school-based health centers, but further clarifications may have to be made so existing centers will be able to use the funds. 
 
NOTE listing of items recorded below.  

 

 

 ITEMS IN MONEY REPORT FOR HB 2436: MODIFY APPROPRIATIONS ACT OF 2007

 

Item #48 Teen Pregnancy Prevention Initiatives -- $400,000 non-recurring funds.  This money, although non-recurring will save prevention programs in New Hanover, Anson, and Person Counties -- programs that are up for renewal of grant funds.  In addition, other programs that have been approved for funding will be funded, and the overall program will be made whole.  This funding will have to be requested again in 2009.       

 

NO "continuation budget review."  The base state funding of $1.79 million for teen pregnancy prevention initiatives/programs will continue to be recurring funds.  Those funds will not be made non-recurring as was the case in the House's version of the budget. 

 

Item #13 Expand Adolescent School Health Centers  --- $250,000 Non-recurring  --

The money report contains an explanation that uses language that was included in the House's version of the budget rather than the language in the Senate's budget.  The conferees had agreed to the Senate's language so that it was clear that the money could be used for existing and new school-based/school-linked health centers.  (This item will need further clarification.) 

 

Item #47 Adolescent Pregnancy Prevention Program  --- $250,000 Non-recurring -- This is one-time grant-in-aid for the Adolescent Pregnancy Prevention Campaign (formerly Coalition) of NC.   This money will have to be requested in 2009. 


 
When it became clear that an agreement on the budget could not be reached before the fiscal year ended at midnight, on Monday June 30, legislators enacted HB 2437.  The measure extended certain budget provisions until July 15; however, funds could not be allocated for budget reductions that had been agreed to in the House's budget and the Senate's budget -- items that were in agreement and not in controversy at the time.  All block grant funding was included in HB 2437, and, therefore, approved on June 30.  
 
Recorded below are the high priority pregnancy preventions items that were included in the block grant section of HB 2437.  Also recorded below is the resolution of the Maternal & Child Health Block Grant issue.
 
 
 

BLOCK GRANT ITEMS INCLUDED IN HB 2437: CONTINUING APPROPRIATIONS

 

 

THESE ITEMS WERE IN AGREEMENT IN BOTH BUDGET BILLS -- HOUSE'S AND SENATE'S 

 

TANF Block Grant - Item #22 Transfer to Social Services Block Grant for Teen Pregnancy Prevention Initiatives --- $2,500,000

 

This item was approved in HB 2437, and the TANF money will be transferred to the Social Services Block grant and used as it has been in the past:  $1.5 million to local teen pregnancy prevention and parenting programs and $1 million to local health departments for out-of-wedlock birth prevention.  Before a cut in 2001, the funding for these two items totaled more than $3.8 million. 

 

TANF Block Grant - Item #13 Teen Pregnancy Prevention Initiatives  --- $450,000

 

This item was approved in HB 2437, and the funding will offset the Medicaid funds cut in 2007.  With the additional $450,000 in funding, Adolescent Parenting Programs (APP) in ANSON, SCOTLAND, FORSYTH, and WILSON counties will be funded.  In addition, Adolescent Pregnancy Prevention Programs (APPP) in CHATHAM, GUILFORD, FORSYTH, and SCOTLAND counties will be funded.  


THIS ITEM WAS DIFFERENT IN THE HOUSE'S AND SENATE'S BUDGET BILLS 

 

MATERNAL AND CHILD HEALTH BLOCK GRANT --

Item #01. Children's Health Services -- $7,415,569

Item #02. Women's Health  -- $7,504,019

Item #10. Immunization Program -- Vaccine Distribution -- $310,667

 

The impact of this funding allocation is that it does not transfer funds from the Children's Health Services and Women's Health line items of the block grant to the influenza vaccine for children line item #10.  The block grant funds that provide primary health care for vulnerable populations not covered by Medicaid will not be cut. 

 

NOTE:  The issue relative to this funding was that the House's budget transferred funds from two line items (Children's Health Services and Women's Health) and put that funding into flu vaccines. The transfer of funds was not necessary because currently, in North Carolina, federal funding is available to provide flu vaccine free of charge to all children who are (1) uninsured, (2) underinsured, (3) Medicaid eligible, (4) Alaska Native or (5) American Indian.   All other children for whom free flu vaccine is not available are children who are fully insured for influenza vaccine.  APPCNC gets some funding from the Maternal & Child Health block grant. 

 

 

 
AN EXTENDED SUMMARY OF ITEMS INCLUDED IN THE BUDGET WILL BE FORTHCOMING. 
  
Thanks for your contacts to legislators.  You really made a difference!

Patricia Yancey

Director of Public Education

Adolescent Pregnancy Prevention Campaign of North Carolina