Last week, the North Carolina General Assembly completed most of its work for the 2020 session – and among the flurry of late night meetings and last minute bills that are typical of the end of session, there was some good news for Western North Carolina’s rivers and streams. Legislation approved by both chambers of the General Assembly included two modest but important appropriations: $200,000 to help the Department of Environmental Quality better respond to pollution spills, and $100,000 to MountainTrue to expand our water quality testing efforts focused on E. coli pollution.

Both appropriations occurred because they were on MountainTrue’s legislative agenda, and because we’ve worked closely with our legislators for the past two years to secure them.

The funding for DEQ goes back to a petroleum spill in the Watauga River several years ago that MountainTrue’s Watauga Riverkeeper responded to and worked to resolve for months. At the time, spill response by DEQ was delayed because the source of the pollution could not be determined, and DEQ only provided funding to clean up gas tank spills if their source was known. In the absence of any other funds, DEQ did not have the resources to respond quickly, making a bad situation worse.

MountainTrue met with DEQ senior management on the issue, and then began advocating for a state appropriation to DEQ to clean up spills of undetermined origin. After meetings with WNC legislators Rep. Chuck McGrady, Sen. Chuck Edwards and Sen. Deanna Ballard in 2018 and 2019, the funding was included in the legislature’s final budget. Unfortunately, it was not allocated due to disagreement about the state’s spending plan between the legislature and Governor Cooper.

This year, however, the appropriation was included in separate legislation – again with the crucial support of Rep. McGrady, Sen. Edwards and Sen. Ballard. Governor Cooper is expected to sign this legislation into law.

The same bill also includes $100,000 for MountainTrue to expand our water quality testing in the French Broad, as well as other WNC rivers and streams. Our water sampling has brought widespread attention to water quality issues in the French Broad, and the public health impact of bacterial pollution.

E. coli bacteria makes its way into our rivers and streams from sewer and septic leaks and stormwater runoff — especially runoff from animal agricultural operations with substandard riparian buffers. E. coli can indicate the presence of other more harmful microbes, such as Cryptosporidium, Giardia, Shigella, and norovirus. Contact with or consumption of contaminated water can cause gastrointestinal illness and skin, ear, respiratory, eye, neurologic and wound infections. The state’s investment will allow MountainTrue to do more sophisticated analysis and help us pinpoint the sources of E. coli and related pathogens.

We won these victories because you, our members, made it possible for MountainTrue to fight for WNC’s communities and environment in the legislature. We are the only WNC environmental organization with a permanent presence at the legislature – and that’s because of you all! 

As for the rest of the summer, lawmakers are expected back sometime before July 11 to take up some unfinished business, including veto overrides, before recessing for the rest of the summer. They are scheduled to return in early September to address additional funding for the COVID-19 pandemic. We’ll keep you posted when there are more updates. Until then, we are grateful to be able to celebrate these victories with you!

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With unemployment growing, the economy slowing and North Carolina’s tax revenues plummeting, legislators have made some key decisions that will shape how they are likely to deal with the state’s mounting budget challenges.

While the state’s revenues for the 2020-21 fiscal year won’t be in until the July 15 tax filing deadline, budget analysts expect revenues to be short $1.6 billion for FY19-20 and another $2.5 billion for FY20-21. Together, that is about an eight percent hit to the state’s $24 billion annual budget.

Complicating the budget picture is a long list of unknowns, including:

• Just how big are the deficits North Carolina is facing? So far lawmakers are using estimates. Actual revenues won’t be known until July 15 – two weeks after the new state fiscal year is supposed to begin on July 1.
• Can federal COVID-19 relief money be used to fill the state’s budget hole? North Carolina has $2 billion in federal COVID-19 relief money in reserve; state lawmakers are hoping Congress will give them permission to use those funds to address the state’s budget shortfall. But if and when that might happen is anyone’s guess. Complicating matters: under current federal law, all of the state’s federal COVID-19 funding must be spent by December 31, 2020.
• Will Congress provide more help to states? The US House of Representatives recently approved a COVID-19 relief bill that would provide billions to help states balance their budgets, but support in the US Senate is lukewarm.

Look for Governor Cooper to wait until midsummer to spell out his budget plans.

For their part, GOP leaders at the legislature have opted not to produce a FY 2020-21 budget at all; they will leave the current budget (approved all the way back in 2017) in place. Instead, lawmakers in both chambers have agreed to approve 18 separate bills with a variety of appropriations for a discreet list of projects and programs. Their priorities include capital projects at various state universities and funds to address enrollment growth at public schools. The money for these bills comes from a number of sources, including unspent federal COVID-19 relief funds and monies from other sources that are expected to be unspent when the state’s fiscal year ends on June 30.

After completing these bills in the next few weeks, legislative leaders plan to go home. That would appear to leave balancing the budget to Governor Cooper – unless Congress gives the state a windfall of federal cash to balance the state budget. If that happens, it is unlikely that the state’s budget writers will allow Governor Cooper to decide how such a large amount of money is spent, and they would likely reconvene to appropriate those dollars. If help from Congress does not arrive, lawmakers also have the option of staying at home and leaving the politically difficult task of balancing the budget to Governor Cooper, just a few months before his reelection.

The lack of a budget development process at the legislature is a mixed bag for the environment. For starters, it leaves organizations like MountainTrue with no way to engage lawmakers about much-needed investments to protect our natural resources. On the other hand, it avoids – or at least postpones – the steep cuts that the legislature would likely propose for regulatory agencies that protect our air and water if they attempted to draw up a new budget.

As the legislative session continues, MountainTrue will continue to track the budget process and look for opportunities to fund some of the WNC projects we have promoted in the past – while also opposing any effort to cut state agencies that protect our water and air from polluters. We appreciate your continued support for this work and invite you to follow our policy work in Raleigh on all of our social media outlets. Thanks!

When the North Carolina General Assembly convenes its 2020 session tomorrow, it will do so in a state – and a world – that was unimaginable when lawmakers finished their work for 2019 just a few short months ago. 

Back then, legislators were looking forward to a 2020 session fueled by a robust budget surplus, made unusually large as a result of last year’s budget stalemate that left hundreds of millions of unallocated dollars in the state’s General Fund. 

That, of course, was all before the impact of COVID-19 on millions of North Carolinians and thousands of North Carolina businesses. Now, legislators can expect a reduction in state tax revenue of $1 billion or more and debates about how to respond to the pandemic, when and how to restart the state’s economy and what to do about the state’s suddenly frail finances. 

The Rundown

With the legislative session beginning tomorrow, here is a quick rundown of where things stand in Raleigh and what MountainTrue’s priorities are for the session.

• Despite limits on public gatherings across the state, the legislature will go into session with strict limits on the public’s in-person access to legislative proceedings. 
• Lawmakers are increasing electronic access to committee meetings and other legislative gatherings so that the public can monitor the process. You can access those by clicking on the audio icon for the committee or legislative body you wish to tune into here.
• Credentialed media will also have in-person access to the General Assembly.
• Legislative leaders hope the session will be very short, perhaps a week or two, and focused only on COVID-19 bills and appropriations.
• Bills leftover from the 2019 session or new issues unrelated to the pandemic are unlikely to be considered.
• The COVID-19 agenda is still developing – a House Select Committee on COVID-19 began making its recommendations last week, and more are expected to become public before the session begins.
• Governor Cooper will also send a list of COVID-19 requests to the legislature for consideration. 
• The North Carolina Senate has not met formally to develop recommendations for the session, but is expected to have its own list of pandemic response proposals. 
• Once lawmakers complete their work, they are expected to adjourn and reconvene some time midsummer. 

The legislature is not likely to take up the state budget during this spring session. The delay of the state’s tax filing deadline to July 15 means that lawmakers won’t have an accurate estimate of revenues for the 2020-2021 fiscal year until later in July. 

Despite the tax filing delay, budget analysts in both the Governor’s office and the legislature predict that the pandemic’s impact on the state budget will be significant – in the range of a $1 billion to $2 billion reduction in state revenues for FY2020-2021. 

The state’s overall budget totals about $24 billion annually. While the state has considerable fiscal reserves, the reduction in tax income and the cost of the COVID-19 response and recovery will result in significant budget reductions for the coming fiscal year. Click here to view a recent presentation by Governor Cooper’s budget director about the pandemic’s impact on state finances. 

MountainTrue’s Priorities 

As the only WNC environmental group with a permanent presence in Raleigh, MountainTrue will be active during both the upcoming spring session and the summer session expected later this year. For starters, we will be on the watch for any effort to roll back clean air, clean water or clean energy laws. In WNC, so much of our economy depends on our natural resources, which must be protected if we are to bounce back from COVID-19. Towards that end, we will also oppose any effort to balance the budget with cuts to state agencies that enforce environmental rules. These agencies are already woefully understaffed and underfunded after years of budget reductions. 

MountainTrue will also continue to support key investments to protect WNC water quality and increase public access to our rivers. We have just finished a round of teleconference meetings with two key WNC legislators who have power over budget appropriations: Rep. Chuck McGrady and Sen. Chuck Edwards. Topping our list of priorities are funds for water monitoring and pollution detection for WNC rivers and streams, as well as new investments in public access along the French Broad, Green and Watauga Rivers. While these investments may not seem pressing, outdoor recreation will likely be one of the earliest, safest and most popular forms of recreation available when the pandemic abates. It’s important that our region has improved infrastructure, both for our residents and visitors, to boost our local economy when widespread recreation is safe again. 

Taking a step back, we know that many of our supporters face extremely difficult challenges as a result of COVID-19. We also realize that many of you may not have the time and energy to think about North Carolina politics and policies and their impact on our environment and our economy right now. And that’s okay. That’s why MountainTrue is here: to be a permanent, trusted, informed voice for our region and its natural resources. We thank all of you who provide the support that allows us to do this important work.

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1/22/20

If you missed the General Assembly session last week, don’t feel bad. It lasted all of a day and produced, well, not much at all. 

Republican leaders in the House and Senate brought lawmakers back to the capitol, hoping to override Governor Roy Cooper’s veto of the legislature’s version of the state budget. House Republicans succeeded in overriding Governor Cooper’s budget veto last fall using tactics that left many Democrats crying foul.

But completing an override takes a three-fifths vote of both the House and the Senate. And Senate Republicans have had trouble finding even a single Democrat to join them in voting to override the Governor’s veto.

Governor Cooper and Republicans in the General Assembly have been at loggerheads over the budget since last summer. Cooper insists that the legislature expand healthcare coverage via the state’s Medicaid program. GOP leaders in the General Assembly have refused and put most of their political efforts into finding the votes to override Governor Cooper’s veto of their budget. 

That effort failed last week when Senate Republicans could not find the single Senate Democrat they need to collect a three-fifths majority for the veto. Without that single vote in the Senate, the effort to end the budget stalemate collapsed and the General Assembly adjourned until the beginning of the 2020 session, which will begin April 28. 

So, to review: North Carolina does not have a budget. The legislature went into session to address the budget issue. The session lasted a day. North Carolina still does not have a budget. 

In the absence of a spending plan for the state, any recurring funding from the last approved budget (fiscal year 2017-2018) continues. That’s why government offices are not shut down. But the absence of a budget leaves hundreds of millions of dollars unspent on education, health and human services and the environment – including open space conservation, water quality projects, clean water investments in the French Broad and other rivers, as well as new staffing needed to maintain the state’s environmental protection efforts. 

Prospects for an end to the budget stalemate are nowhere in sight. In fact, last week GOP Senate President Pro Tem Phil Berger said that the legislature may not even approve a budget for FY2020-21 – its most important task for the 2020 session. 

Instead, Senator Berger said, the General Assembly will leave the 2018 budget in place and, perhaps, approve smaller appropriations bills during the 2020 session. The bills could contain less controversial parts of the budget, such as the use of federal block grant funding. The General Assembly approved a number of these “minibudget” bills last year – some of which Governor Cooper signed, while vetoing others. 

Here at MountainTrue, we are already beginning to prepare our agenda for the 2020 session. We will share the details later this spring, but you can expect it to include new investments in water quality monitoring, improved public access for hiking and paddling, help for the region’s farmers to pay for fencing around streams and other water quality protections, and sustainable energy policies that protect consumers and address climate change. 

Thank you for making our voice in Raleigh possible!