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May 31 Jones Street Update

This week, the Senate approved their $24 billion budget proposal (House Bill 966) for the next fiscal year. While there are numerous similarities between their expenditures and the House’s, there are also some areas which will have to be negotiated during the conference committee process.

Below is an outline of some of the provisions contained in the more than 900 pages of the legislation and companion spending report of interest to NC REALTORS®.

MONEY PROVISIONS

Agriculture, Natural, and Economic Resources Items

  • Coastal Storm Damage Mitigation Fund:
    • Hurricane Recovery provides funds for beach nourishment and other projects related to coastal storm damage. This is supported by a transfer of nonrecurring monies from the Shallow Draft Dredging and Aquatic Weed Fund. = $20,000,000 in each year
  • Emergency Programs Personnel Fund:
    • Establishes 4 new positions beginning October 2019 to prepare for and respond to emergency situations.
  • Economic Development at the Department of Commerce
    • OneNC Fund: Reduces year 1 by $2,510,466 of nonrecurring funds based on projected expenditures (brings total budgeted to $6.5 million). The proposal does provide $9 million in funding to the program in year 2.
    • Job Maintenance and Capital Development Fund: Reduces year 1 by $3mm in nonrecurring funds based on projected expenditures (brings total budgeted to $4.5 million). The proposal does provide $7.5 million for the program in year 2.
    • Film Grant Program: Transfers film grant balance of $32mm to multiple other areas over 2 years. This transfer leaves $35mm in the program, which are already obligated to two film. Finally, the plan changes the annual allocation to the program from $30mm recurring to $14mm recurring and $16mm nonrecurring
  • Economic Development Partnership of NC: Provides $ 18,835,966 in recurring funds over the next two years.
  • Tourism Advertising Funding: During the 19-20 fiscal year, the plan provides an additional $1 million in nonrecurring funds to the program.

Justice and Public Safety

  • Disaster Recovery Fund: Provides $28,268,000 in nonrecurring funds during the 19-20 fiscal year.

General Government

  • Housing Finance Agency Administrative: Provides $10,660,000 each year over the next two fiscal years.
  • Workforce Housing Loan Program: Provides $10 million each year over the next two fiscal years.

Education

  • Funds school construction through the pay-as-you-go model.

POLICY PROVISIONS

Disaster Recovery: Expand Uses/Golden L.E.A.F. Hurricane Florence Allocation. – funds allocated to the Office of State Budget and Management for Golden L.E.A.F. (Long Term Economic Advancement Foundation), Inc., for infrastructure may be used for the replacement, improvement, or construction of new infrastructure to support hazard mitigation.

Financial Literacy Requirements: Requires that the State Board of Education shall require during the high school years the teaching of a full credit course focused solely on Economics and Personal Finance (EPF). A passing grade in the course shall be required for graduation from high school. The EPF course shall provide instruction on economic principles and shall provide personal financial literacy instruction that shall include, at a minimum, the following:

1.      The true cost of credit.

2.      Choosing and managing a credit card.

3.      Borrowing money for an automobile or other large purchase.

4.      Home mortgages.

5.      Credit scoring and credit reports.

6.      Planning and paying for postsecondary education.

7.      Other relevant financial literacy issues.

Film Grants: Modifies the requirements for qualification for the grants in the following ways:

“The funds are reserved for a production on which the production company has qualifying expenses of at least the following:

For a feature-length film:

1.      One million five hundred thousand dollars ($1,500,000), if for theatrical viewing. (Previously was $3 million)

2.      Five hundred thousand dollars ($500,000), if a movie for television. (Previously was $1 million)

3.      For a television series, five hundred thousand dollars ($500,000) per episode. (Previously was $1 million).”

These changes reduce the overall expenditures of a production to qualify for the grant program.

Extends Historic Rehabilitation Tax Credit: The proposal extends the sunset of the credit until January 1, 2024. It also requires that any properties which receive the credit be put into service by January 1, 2032.



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