In recent years, state lawmakers haven’t exactly left Raleigh with a lot of pomp, circumstance, and
finality.
Instead, they have typically concluded virtually all of their business at some point and time, but then left the door open for a return with readjournment dates that sometimes result in actual legislating but more often open and close without any action.
This year, that “mostly concluded” date came on October 25.
As previously mentioned in these pages, the expectation was that a final budget agreement would be good for cities and towns, even as NLCM and its members returned to some familiar legislative battles over local land-use authority after something of a hiatus during the pandemic years.
That state budget was finally agreed on in early October, and as thought, it once again treated municipalities well regarding local infrastructure investments. Still, a handful of policy provisions were not so welcome.
The $30 billion state spending plan, which Gov. Roy Cooper allowed to become law but without his signature, includes over $3 billion in local infrastructure spending. Among those appropriations are individual earmarks of $1.9 billion for drinking water and wastewater and an increase of $15.5 million for street funding under the Powell Bill in each year of the two-year budget, bringing the total to $185.8 million in the second year.
Other major funding items include:
- $30 million to the Disaster Relief and Mitigation Fund and the Transportation Infrastructure Resiliency Funds.
- $107.8 million for industrial megasite readiness and preparation.
- $10 million for local governments to evaluate areas of less than 1,000 acres for industrial development sites.
- $10 million to local governments for coastal storm damage mitigation.
- $30 million for local and state parks and beach access, with another $12.5 million going to the Parks and Recreation Trust Fund to provide matching grants for park facilities for persons with disabilities.
- $17.5 million for trail development programs.
- $35 million to the Housing Finance Agency for multi-family affordable housing.
The legislation also makes changes to the Criminal Justice Fellows Program in an effort to increase the number of graduates available for law enforcement jobs, as well as provides the NC Police Chiefs Association with some funding to assist local agencies with employee performance and wellness programs.
Concerning policy provisions include one that will subject local governments to oversight by the Joint Legislative Commission on Governmental Affairs, a legislative oversight body traditionally focused on state operations and one that would prevent retail plastic bag bans or fees, as well as penalties for retailers due to shopping carts being taken and discarded away from retail sites.
Also troubling were some provisions affecting local zoning authority in some specific circumstances in Dare and Wake counties.
Over the course of the legislative session, NCLM had pushed back successfully on statewide bills undermining local zoning authority. They included efforts by homebuilders and other groups to utilize a national housing affordability crisis to upend local land-use regulation and planning in a variety of bills.
Specifically, bills would have eliminated extraterritorial jurisdiction, abolished single-family-only zoning, and required that accessory dwelling units, or in-law suites, be allowed in all residential neighborhoods. In each, the efforts of NCLM members and staff worked to stop the legislation.
To some degree, that was because NCLM was prepared for these fights.
A report on housing, produced in association with the NC County Commissioners Association, used real data from local planning and building inspection departments to show how much growing jurisdictions across the state are doing to address housing and increase density in areas where appropriate. It also demonstrated the efforts that local governments are undertaking to improve inspection processes and included recommendations for similar procedures to duplicate those efforts.
But on another front, local elections, legislation was approved that undetermined local decisions on election districts and whether elections would be held on a partisan or non-partisan basis. Although these bills affected only a few jurisdictions, the use of local legislation to accomplish what has proven difficult through statewide legislation is a concern that NCLM will need to monitor in the future.
Positively, a number of municipalities saw occupancy tax authority granted, which will allow more cities and towns to both enhance tourist attractions and market those attractions.
The publication of this issue of Southern City should coincide with a detailed review of all legislation affecting cities and towns in our annual End-of-Session Bulletin. If you have not seen that publication, place contact staff and we will direct you to it on our website.
What follows is a look at our Legislative Goal Accomplishments included in the End-of-Session Bulletin.
GOAL: Create an adequate and permanent funding stream for local infrastructure.
Passage of SL 2023-134, the state budget bill, included over $3 billion in local infrastructure spending. Among those appropriations are individual earmarks of $1.9 billion for drinking water and wastewater. (Sec. 12.2)
GOAL: Expand state transportation funding streams for construction and maintenance of municipal and state-owned secondary roads.
Passage of SL 2023-134, the state budget bill, expands state Powell Bill funding by 10%, to $170 million in the new fiscal year. (Sec. 41.5) The budget bill also includes $30 million for the Disaster Relief and Mitigation Fund and the Transportation Infrastructure Resiliency Funds. (Sec. 5.9)
GOAL: Expand incentives that encourage regionalization of water and sewer, as well as other municipal services, when appropriate.
Passage of SL 2023-134, the state budget bill, sets aside another $10 million for the state Viable Utility Reserve in undirected funds for distressed water and sewer utilities, as that program continues to work to address utility systems’ deferred maintenance needs, including through regionalization plans.
GOAL: Expand incentives and funding for local economic development.
Passage of SL 2023-134, the state budget bill, provides $107. 8 million to assist in economic development megasite preparedness, helping local communities create sites attractive to new businesses. Another $10 million from the bill would go to evaluate areas of less than 1,000 acres for industrial sites (Sec. 11.2)
GOAL: Expand federal and state resources for affordable housing.
Passage of SL 2023-134, the state budget bill, $35 million to the Housing Finance Agency for multi-family affordable housing.
GOAL: Enhance state systems and resources for local law enforcement officer recruitment, training, and retention.
Passage of HB 140 Civilian Traffic Investigators allows cities to employ civilian investigators to investigate motor vehicle accidents, freeing up sworn law enforcement officers to meet other public safety needs. Passage of SL 2023-134, the state budget bill (Sec. 18.3) includes additional funding within the Criminal Justice Fellows Program and modifications designed to increase the number of graduates.
