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HomeMy WebLinkAboutMinutes 03-23-2026-Legislative Breakfast 1 APPROVED 4/21/26 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS LEGISLATIVE BREAKFAST March 23, 2026 8:30 a.m. The Orange County Board of Commissioners met for a breakfast meeting with the Orange County Legislative Delegation on Monday, March 17, 2025 at 8:30 a.m. at the Whiffed Human Services Center in Hillsborough, NC. COUNTY COMMISSIONERS PRESENT: Chair Jean Hamilton, Vice-Chair Amy Fowler, and Commissioners Jamezetta Bedford, Marilyn Carter, Sally Greene, and Earl McKee COUNTY COMMISSIONERS ABSENT: Commissioner Phyllis Portie-Ascott COUNTY ATTORNEYS PRESENT: John Roberts COUNTY STAFF PRESENT: County Manager Travis Myren, Deputy County Manager Caitlin Fenhagen, and Clerk to the Board Laura Jensen. (All other staff members will be identified appropriately below) LEGISLATIVE DELEGATION PRESENT: Representative Renee Price and Representative Allen Buansi Chair Hamilton called the meeting to order at 8:37 a.m. The Board of County Commissioners, legislative delegation, and staff introduced themselves. Commissioner Carter introduced the legislative issues packet. She thanked staff for their work in preparing the information. She explained how the packet was developed. Commissioner Carter reviewed the items on the Board's list of priority legislative issues: AGRICULTURE (NCACC Legislative Advocacy Goal Category) - GOAL—Seek legislation to protect and expand farmland preservation programs. Commissioner Carter said the county was seeking support from the state to continue to invest in these programs to preserve farmland. GENERAL GOVERNMENT(NCACC Legislative Advocacy Goal Category) - GOAL — Seek legislation to increase funding for preserving and repairing existing affordable housing. HEALTH AND HUMAN SERVICES (NCACC Legislative Advocacy Goal Category) - GOAL — Seek legislation to expand behavioral health treatment resources and crisis system capacity. Commissioner Carter said the county currently lacks the capacity to help people stay out of the judicial system, and live safely in the community. She said the county is constructing a crisis diversion facility with no committed state funding. She said without a facility, there are long waits for treatment and limited options for patients. She said the county's PORT and CARE Teams rely on grant funding which will on June 30, 2026. 2 JUSTICE AND PUBLIC SAFETY (NCACC Legislative Advocacy Goal Category) - GOAL—Seek legislation expanding state funding for essential medical, mental health, substance use, and social services for people incarcerated in local detention facilities. Commissioner Carter said this legislation is important because the county bears the full cost of providing these services for medical and behavioral care, and needs continue to rise. PUBLIC EDUCATION (NCACC Legislative Advocacy Goal Category) - GOAL—Support legislation that invests in school operational and capital needs. Commissioner Carter said the lack of adequate funding is putting a major burden on budgets and county tax bills. She said Orange County is committed to covering as much of the gap as possible, but they are trying to be cognizant of property tax bills. She said 55%of resident tax bills are directly attributed to K-12 operational spending. She said due to the special district tax, it is 63% in Chapel Hill-Carrboro City Schools. She said one way to alleviate property tax burdens is for the state to increase funding. TAX AND FINANCE (NCACC Legislative Advocacy Goal Category) - GOAL—Support legislation that preserves County funding and taxing authority and instead funds potential expanded exemptions through the state budget. Commissioner Carter said the Board will discuss this goal further due to the special select committee on property tax reform and recent developments. Chair Hamilton opened the floor for discussion. Representative Buansi said there are some representatives coalescing around the idea of a constitutional amendment to put on the ballot. He said it sounds like it would be a mandate for the general assembly limit property taxes. He said there hasn't been discussion of what that might mean. He asked if the commissioners had heard from other counties on the topic. He said there is a lack of funding for crisis diversion programs and there hasn't been a lot of movement on the other side of the aisle, but it is something that Democrats care about and are still pushing for. He said for farmland preservation,there is some agreement on both sides of the aisle to put in more funding. He said Representative Ray Jeffers signed on to a bill to appropriate more money for the Department of Agriculture to create a grant program for farmland preservation trust fund. He said he hoped it would be part of a state budget. He said not having a state budget creates a lack of predictability and uncertainty for residents, schools, and Medicaid recipients. He said the Medicaid bill imposes more frequent recertifications and creates a huge administrative burden for counties that is not reimbursed due to a lack of a state budget. He also discussed the North Carolina Housing Trust Fund,and that he and other Democrats are pushing for more investments for the repair and construction of affordable housing units. He noted the expiring funding for the workforce loan program, which would require $80 million to continue supporting housing construction and repair, especially in rural counties. Representative Price said everything listed in the priority list relies on funding from a state budget. She expressed appreciation for the development of the legislative goals packet. Regarding the agriculture goal, she said one thing to consider is first time farmers and getting them involved. Regarding affordable housing,she asked if the county is working with Central Pines, because they used to have a weatherization program. Chair Hamilton said it might be something to look into. 3 Commissioner Greene said she would bring it up with the organization. Chair Hamilton said even with all the different groups involved, such as Habitat and the Department on Aging, there is not enough funding, especially to do the major repairs required for some of the homes. Representative Price said she thought some funding was funneled through to Central Pines for this purpose. Chair Hamilton said that whenever money is funneled to another entity,there are overhead costs. Commissioner Carter said there is an estimated $2 million in unmet needs for home repairs. Commissioner Bedford said just under $500,000 in HOME funding has been committed to home repairs. She said that they are finding that some of the homes for low-income seniors are more dilapidated than expected. Commissioner McKee gave an example of a home that required more extensive and expensive repairs than providers expected. He said that the availability of funds for any one individual is limited by the total funding. Commissioner Bedford said its overall cheaper to repair a home than to build new. Representative Price said there are ongoing efforts to take power away from municipalities and counties. She encouraged the county to pay attention to regulatory reforms and consider their impacts on local governments. Representative Price asked about the timeline for the crisis diversion facility. Caitlin Fenhagen said the facility will break ground in 2026 and hopefully open in 2027. Representative Price highlighted her collaborative efforts with colleagues such as Zach Hawkins on initiatives concerning individuals with intellectual and developmental disabilities. She also referenced the governor's task force, which is focused on addressing mental health issues within detention centers. Representative Price said opportunity scholarships put a big burden on public education. Regarding tax and finance,she said that many legislators do not understand the tax system and are having to be educated on how it works. Commissioner Carter said they need to get the message to legislators that if property taxes are a prominent concern, public education is a huge part of that. She said they need the support for public education, so counties can allocate dollars for other mandated services. allocated funding for services more effectively. She said a proposed constitutional amendment is low on specifics but is tapping into the energy felt across the state regarding property taxes. Commissioner Bedford said there is a concern that the county could not meet its mandated functions. Commissioner Carter said there were discussions at the National Association of Counties legislative conference, where state association directors from multiple states discussed a national movement to remove taxing authority from municipalities and counties. The association executive directors strongly encouraged counties to band together and go to their delegations to amplify voices on these concerns. Representative Buansi added that if lawmakers are serious about addressing affordability, property tax is only one piece, and there are other tools the state could provide. He noted that counties and towns have very limited ways to raise revenue, and the state could help by restoring abilities like school impact fees that Orange County previously had. Vice-Chair Fowler noted that property taxes and sales taxes are regressive, while income and corporate taxes are progressive. She said that would naturally assist lower income residents. Chair Hamilton said this part of a broader national debate on the role of government and how services are provided. She said it will be important to educate the public on the services provided by counties. She asked the legislative delegation how the county should get those messages across. 4 Representative Price said it will be difficult for Orange County or any similar county to speak to legislators and get them to listen. She said the county should focus on working with the state association. She said the state is headed towards a fiscal cliff. She said tax breaks for seniors to help them stay in their homes restrict the revenues for counties with a higher percentage of seniors. She said changes to the Homestead Exemption disproportionately affect Tier 1 counties. She said the state should consider changes to the uniformity clause. Representative Buansi said NCACC has powerful communicators that work with legislators. He said they have advocacy days to educate legislators on county services. He said the school board depends on county funding, and suggested engaging with the educator's association to speak to legislators. Representative Price said it hasn't been done in recent years, but it has happened in the past. Vice-Chair Fowler said education wasn't in the top five originally, but she wanted it included because the if the county is spending on education, it can't spend money on other items. She said in some smaller counties, the largest employer is the school system so more state funding will help them. She noted that private schools don't have to accept every single person. She said they get to choose,and they don't choose folks with disabilities or people who are expensive to educate. She said it is critical to fund public schools. Commissioner Greene said there is a movement to starve government, and one way to do so is to give voucher money, schools suffer, and more parents want to send their kids to private school. She echoed Vice-Chair Fowler's point that if there was more money for schools,the county could spend funds on other things. She said it is also true for housing. She said the Housing Trust Fund is starved. She said Virginia has 10 times the funds for housing than North Carolina. She said local governments there draw on those funds to subsidize housing. She said if there was more access to funding for subsidized housing, then the county would have funding for other items. Commissioner Bedford said the impact fee case is continuing to be appealed, but a recent jury found in favor of Orange County. She asked how changes in majority leadership might change the General Assembly. Representative Buansi said it is not yet clear who will be the next leader of the majority. He hoped a successor would be more collaborative. Commissioner Bedford said the registry of unmet needs for people with IDD has grown with Medicaid innovation waivers. She said due to the way the waivers are allocated, it's difficult for Orange County to get any because of our small size. She said while increases in direct care wages were helpful, inflation outpaces those increases. She said it is difficult to find employees in that field. Representative Price said there are some legislators working on these issues, and she gave examples of how elected officials experienced crises with their own family members which led them to work on mental health. She said people will need to admit what is happening with Medicaid and come to the table to develop legislation. Commissioner McKee he plans to petition the Board to instruct staff to develop a possible amendment to the long-term homeowner's assistance program to provide relief to low-wealth, older homeowners for half of their taxes on their houses. He said he would like to see a constitutional amendment to require a budget within 180 days after the opening of the legislature. Representative Price said there is a bill being drafted to address the budget delay. Chair Hamilton asked what the chance is of having a budget in the current fiscal year, and what happens if there isn't a budget. Representative Buansi said anything that was in the 2023 budget continues. He said that there are a lot of non-recurring expenses that will roll off. He described some of the non-recurring expenses, including funds for people with intellectual disabilities and to assist people with medical transportation needs. He said the chance of not passing a comprehensive state budget is high. He said there is the possibility of passing mini budgets to address specific needs. 5 Representative Price said it is going to be very difficult to pass a budget this year. Chair Hamilton asked when the short session ends. Representative Price said the short session begins in April and will end at the end of the calendar year. Representative Buansi said the bulk of the work will be done by the end of the July, but legislators may meet again between then and the end of the year to vote on specific issues. Chair Hamilton asked when the next comprehensive budget cycle will begin. Representative Buansi said January 2027. Commissioner Bedford said SNAP benefits and error rates are affecting DSS funding. She estimated it would be a $680,000 to$900,000 hit to the county budget. Travis Myren said that would be for administrative costs. He said benefit contributions would not be affected until the following fiscal year. Commissioner Bedford said she would like the state to continue participating in SNAP because this directly impacts the economy and people's health. She said she supported increasing the salaries for state legislators to encourage more people to serve. Vice-Chair Fowler highlighted two goals on the larger agenda packet: - Support legislation to establish a Medicaid code to reimburse behavioral health urgent care (BHUC) services at a sustainable rate. She said this will help with funding the new crisis diversion facility. - Seek full funding for public Pre-K education which benefits both students and the general public through improved life-long health/mental health, achievement, and other benefits. She said this would have long-term benefits for the students as well as the public. She said due to lower birth rates and declining school enrollment,there is likely room in schools for younger children if funding is available. She said this would also help with providing childcare and getting more people into the workforce. Commissioner Carter the NCACC is pressing for a delay in changes due to HR 1 so that the impacts to counties are postponed. She thanked Representatives Buansi and Price for their service. Commissioner McKee noted the challenges that legislators face in the General Assembly. Representative Price expressed appreciation for her staff's assistance. Representative Buansi thanked the commissioners for their efforts. Chair Hamilton thanked Representatives Buansi and Price for attending the meeting and listening to the county's concerns. Chair Hamilton thanked Commissioner Carter, Commissioner Portie-Ascott, Greg Wilder, Travis Myren, and Caitlin Fenhagen for their work on the list of legislative priority issues. Adjournment The Board adjourned the meeting at 9:54 a.m. without a formal motion. VOTE: UNANIMOUS Jean Hamilton, Chair Recorded by Laura Jensen, Clerk to the Board Submitted for approval by Laura Jensen, Clerk to the Board.