House and Senate leaders announced compromise language for adjustments to the state budget today.
The League has done a quick analysis of the bill, and the only effect that the conference agreement on the budget has on municipal revenues is a reduction in Powell Bill funds of less than one percent, which would result from capping the gas tax at 37.5 cents in FY 12-13. This change would affect FY 13-14 distributions.
In addition, the conference agreement calls for a three percent reduction in public transportation operating grants. It also eliminates all of the $29 million in funding for the Regional New Starts and Capital Program, but provides $25 million for development of Charlotte's Blue Line rail project.
In other transportation-related provisions, the agreement would shift funds for the Garden Parkway and Mid-Currituck Bridge projects to the Mobility Fund, require tolls on most ferry routes beginning in July, delaye any possibility of tolls on I-95 until 2014, and place new ethics rules on MPO and RPO members.
The agreement also makes a $3 million reduction to the Rural Center's Infrastructure Program and a $1 million reduction to the Clean Water Management Trust Fund. Both reductions would limit the funding available for local projects.
Here is a general update on the budget agreement from The Insider publication:
A $20.1 billion budget deal announced by House and Senate leaders Tuesday will include a 1.2 percent raise for state employees and teachers, $251 million to restore cuts to public education, cuts the state gas tax and includes several provisions of an education reform proposal by Senate leader Phil Berger. The bill includes no money to repay victims of the state's eugenics program or for the Teaching Fellows scholarship program. A vote on the bill could come as early as Thursday in both legislative chambers. (THE INSIDER, 06/20/12)