Action for Children North Carolina | www.ncchild.org
Legislative Update
February 15, 2013  
Unemployment Insurance Cuts and No Medicaid Expansion Pass; Governor Will Sign    
 
Dear Champion for Children: 
 
No Medicaid/No Exchange Bill Has Passed Both Houses  
S.B. 4, prohibiting Medicaid expansion in N.C. and the formation of state-based Exchange passed the N.C. House this week. After asking the Legislature to slow their progress on S.B. 4 last week, in order to give leaders time to understand the full ramifications of the drastic bill, Governor McCrory switched courses this week, releasing a statement in support of the bill.
The federal government would cover 100 percent of the expansion for the first three years and 90 percent after that. North Carolina will be one of a few states that are deciding not to expand Medicaid at this time. The Senate will consider House changes to the bill during Monday evening's legislative session.

N.C. Unemployment Insurance Program Skewered
The bill to refuse federal dollars for North Carolina's unemployed workers and cut benefits to struggling families flew through the Senate this week, as quickly as it passed the House last week. H.B. 4 will be signed into law by the Governor. Unemployment insurance is critical, particularly during difficult economic times, to ensure economic security for children in struggling households.  

   

The bill:

  • limits amount of maximum benefits per week to $350  
  • reduces duration of benefits from 26 weeks to 12-20 weeks, on a sliding scale
  • eliminates some reasons people could receive unemployment insurance 

The Senate turned down four amendments that would have added protections for the unemployed, such as pushing back the implementation date from July 1 to January 1; returning benefits back to current levels once the debt to the federal government is paid off in three years; cutting benefit amounts and benefit duration less; and adding to the categories that constitute "good cause" for leaving a job.

  

The move by the North Carolina legislature to cut its own residents off unemployment insurance has attracted national attention. Acting U.S. Labor Secretary Seth Harris released a statement on Monday, saying that the federal agency doesn't have the power to stop the state from moving forward with the plan but cautioning that families stand to be hurt by it. Over the rest of this year, 170,000 unemployed North Carolinians will lose $780 million in federally-funded benefits that would have gone straight into local economies across the state.  

  

National news outlets have reported on the bill, reiterating that the cuts will be the deepest in the nation. North Carolina currently has the 5th highest unemployment rate in the country. 

 

Threat to State Earned Income Tax Credit (EITC)

The Finance Committee passes a bill making updates to the revenue code every year. This year H.B. 82: Internal Revenue Code Update would cut the EITC, a refundable tax credit for low-income, working families, from 5 to 4.5 percent of the federal EITC, which will reduce payments to N.C. families by $11 million. The bill would also sunset the EITC at the end of 2013, which would mean $100 million coming out of the pockets of low-income, working families.  

 

The EITC has traditionally had strong bipartisan support and many consider it the best tool for fighting poverty. These dollars are usually spent immediately in the local economies across the state, spurring economic growth. More than 883,000 North Carolinians claimed the credit in 2010.  

 

President Obama Outlines Plan for Early Education in State of the Union  
In his State of the Union address, the President proposed a plan for universal pre-K for low- and moderate-income children (under 200 percent of the Federal Poverty Level). The program would be a state-federal partnership, with the state providing matching funds for federal dollars. The program would have high quality standards, and it would grow the Early Head Start program and extend the infant home visiting program (Nurse-Family Partnership). 

 

Revenue Update  
Revenues coming into the state during the current fiscal year are expected to exceed the budgeted amount by nearly $103 million, legislative officials said Tuesday. Despite the revenue improvement, House Speaker Thom Tillis said lawmakers would continue to look for places to cut headed into the 2013-14 fiscal year. During the next two years, legislative fiscal analysts anticipate "modest" growth, but at no time are revenues expected to grow faster than the long-term average of 5.5 percent.

  

Budget Update 
The legislative budget committees started working this week. The expected budget schedule is as follows:
  • Governor's budget: mid-March
  • Senate budget: process will start mid-April, and a budget should pass by May 9  
  • House budget: by the end of May
  • Conference budget: by mid-June 
Relevant Bills Acted on This Week
Key bills affecting children that were acted on this week at the General Assembly are listed below. For a full list of bills that affect children, please see the lists updated weekly on our Policy Action webpage.

Economic Security

H.B. 99: Caregiver Relief Act
Would require businesses that currently must comply with the Federal Medical Leave Act (FMLA) to also provide time off for employees to care for a broader group of relatives, including grandchildren, siblings, grandparents, parents-in-law and others. Filed and serially referred to the Committee on Health and Human Services, then Judiciary, then Appropriations.

H.B. 100: Healthy Families & Workplaces/Paid Sick Days
Would give all N.C. workers paid time off for personal illness or to care for an ill family member. Referred to the Commerce Committee and, if favorable, Judiciary.

Child Safety

H.B. 109: Require Safety Helmets/18 and Under
Would allow adults to operate or ride as passengers on motorcycles without helmets, provided the operator of the motorcycle has had a license for at least a year or passed a safety course and is covered by sufficient medical insurance. Does not change helmet laws for children. Filed.

S.B. 91: Prohibit Expunction Inquiry
Would prohibit employers, educational institutions or government units from requesting information from an applicant for employment or admission regarding an arrest, charge or conviction that has been expunged from the applicant's record. Filed. 

H.B. 18: Youth Skin Cancer Prevention Act
Would raise the minimum age for use of tanning beds from 14 to 18. Use of tanning beds, particularly in childhood, has been linked to skin cancer. Scheduled to be heard Tuesday in Health and Human Services Committee, but the bill has been serially referred to the Regulatory Reform Committee, which may stall it.

H.B. 105: Require Pulse Oximetry Newborn Screening
Would require newborn screening for all infants for certain heart conditions. Endorsed by the Child Fatality Task Force. Referred to the Committee on Health and Human Services.

H.B. 75: Kilah's Law/Increase Child Abuse Penalties (S.B. 70) 
Would increase penalties for felony child abuse. Referred to the Judiciary Committee. 

Education

Expresses the intent of the Legislature to move from funding textbooks to funding only digital learning media by 2017, to take a survey of internet connectivity in public schools and to allow a portion of lottery funds going to education to be used for digital learning in schools. Advocates have concerns about the ramifications of these bills for the many children without internet connectivity at home. H.B. 44 passed the House. H.B. 45 was referred to the Appropriations Committee. H.B. 97 was referred to the Education Committee.

Aims to funnel high school and community college students towards career and technical education (and thus away from higher education). Passed the House and presented to the Governor to sign into law.

H.B.74: Periodic Review and Expiration of Rules
Would direct all rule-making boards, commissions and agencies to review and re-adopt all rules by a certain year (2016 for HHS rules). This is obviously an enormous task, and advocates are concerned about the ramifications for child care regulations. There are many necessary regulations that keep children safe in child care centers and ensure that the state is in line with state and federal law. In specific, the state's five-star rating systems for child care centers could be placed in jeopardy. There are reservations on the bill from the legislature, so more work may be done on it. Referred to Committee on Regulatory Reform. 

Other

Eliminates the Committee on Drop Out Prevention and other boards and commissions, and "reorganizes" others, with the result of greatly expanding the Governor's ability to appoint members. Would put an immediate end to the current terms of several state commissions, allowing the current Governor and legislative leaders to appoint replacements immediately. The bill would allow the Chairman of the State Board of Education to be appointed by the Governor rather than elected by the members of the Board, and would eliminate 12 special Superior Court judge positions, which currently alleviate backlogs in the system.

Referred to House Committee On Commerce and Job Development and, if favorable, Rules, Calendar, and Operations of the House. Expected to move quickly through the House and perhaps have other Boards and Commissions added to the bill for elimination.  

Friday Conference Calls 
Action for Children and the Covenant with North Carolina's Children hold Friday morning conference calls to update you on the week's happenings at the General Assembly. Updates include bills and budget actions. To join:
  • Fridays, 11 a.m.
  • Dial 1-800-582-3014 and enter passcode 882011141# 
Click here to add this call to your calendar.

    

 

Calendar and Events

 

National Alliance on Mental Illness-NC 

2013 Statewide Crisis Intervention Team Conference

Promoting Resiliency in the Face of Crisis
February 19, 2013
McKimmon Center, Raleigh

Click here for more information.