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Below is an update on the activity at the NC General Assembly this week.
Budget Update
On Wednesday, Senate President Pro Tempore Phil Berger (R-Rockingham) and House Speaker Tim Moore (R-Cleveland) announced an agreement on total spending for the 2023-2024 state budget. Leadership has agreed to a 6.5 percent increase in the first year and 3.75 percent in the second year. Based on last year’s spending numbers, this is an approximate $2.8 billion increase. This year’s budget process will begin in the House. The current goal is for the House to have their version of the budget completed by the first week of April. The Senate will then complete their version before the two chambers negotiate in a conference committee to finalize the final proposal. The goal is to have a budget completed before the end of the fiscal year on June 30.
State of the State
Governor Cooper delivered his State of the State address on Monday night. The Governor acknowledged the State’s great economic success and commended the bipartisan accomplishments of state leadership, including an agreement on Medicaid expansion. He also voiced the need for the General Assembly to invest in childhood education based on the still ongoing Leandro case and urged against more corporate tax cuts. Governor Cooper also announced a comprehensive behavioral health plan that was officially released on Wednesday.
Lieutenant Governor Mark Robinson delivered the Republican response. Lt. Governor Robinson touted the accomplishments of the NC General Assembly under Republican leadership. He also emphasized the importance of the state’s workforce, education, and law enforcement. His full response can be viewed here.
Medicaid Expansion
The legislature’s Medicaid expansion deal was presented to the Senate Health Committee on Tuesday. The Senate gutted and amended the original House plan (H76, Access to Healthcare Options). The bill would do the following:
- Provide Medicaid coverage through NC Health Works to adults aged 18-64 with incomes up to 133% of the federal poverty level;
- Enact various workforce development measures to promote employment among Medicaid enrollees;
- Remove the following from certificate of need review:
- Psychiatric beds and facilities;
- Chemical dependency treatment beds and facilities;
- Replacement equipment up to $3 million, indexed to inflation;
- Aggregate total of $3 million for all the equipment at a diagnostic center that individually exceeds $10,000;
- Early and Periodic Screening, Diagnosis, and Treatment services to children under age 21 at home health agencies in compliance with federal law.
- Exempt ambulatory surgical centers and MRI machines in counties with a population greater than 125,000 from certificate of need review.
The Medicaid expansion provision would be contingent on passage of the state budget. The bill was approved by the Senate Health and Finance Committees this week. We anticipate the bill to pass in both chambers next week.
