teachers have our most valuable asset at their hands all the time, and work very, very hard and deserve the increase we've given them. I just don't understand how we think that moral amongst the other state employees while one group is getting the 5% and another group is getting 3% one time bonus, it doesn't apply on their retirement, how do we justify that in a budget cycle? >> Well, Senator, thank you for the question it is- >> I'm not sure you're grateful for it at all. >> [LAUGH] >> Well, it's a question on a lot of people's minds, and I think it is a matter of priority. The governor wants to invest in teacher pay above other sectors of employees in North Carolina. It's investing in the future of the state and I think that trying to get to $50,000 for the first time in history is a priority for the governor and as the highest priority in this budget. >> Thank you Mr. Chairman I don't have a follow up. >> I appreciate the senator's question. >> Representative Insko >> Thank you Mr. Chairman, in my question has to do with Medicaid. Can we get access to the outstanding liabilities in Medicaid? I know that a lot of provider bills don't come in, but you have actually an outstanding liabilities too. Then the other question has to do with you're cutting Medicaid this year partly because of the per patient cost has gone down, which just let me say is in disguise that that is partly due to the good work of CCNNC, Community Care of North Carolina. And since if we put that program in place, the per patient cost has gone down almost every year, and that's partly because it costs less money to provide healthcare for healthy people. So once we get the people over the hump of being overly ill those goes down. But in addition, there are some reductions in services that are going on in Medicaid. For example, the CAPC program, the hours for the children that are in that program, are being reduced. So, could we also get a list of the reductions in services and the outstanding liabilities? [BLANK_AUDIO] >> I think it may be an unfair representation to say that we're cutting Medicaid. >> Right. I agree there's a reduction of cost. >> Well, the gentlemen may complete his answer. >> And thank you for the question. I don't believe that we're cutting Medicaid. The negative Percentage you saw on the slide, was fueled by the rebates, which is driven by low enrollment. With respect to line items, reduction in hours at facilities. I don't have that level of detail today, but if you're not satisfied, after the the SHSS presentation, if you would just simply call or email either myself or [UNKNOWN] who handles DHHS, we can get you whatever information you need. >> Representative Dobson. >> Thank you Mr. Chairman, one quick question on the. I have a lot of correction officers in my district, so I'm really, really glad to see that. Can you talk a little bit more about the 10 million and what's your proposal is for. Where that is gonna go is that a percentage increase across the board? Is it for specific correction officers can you talk a little bit about that? >> Yes Sir, thank you sir I believe it's I believe it's just a continuation of a plan that has already been in place. It's just another injection of $10 million into that and that's right. Yeah. >> Thank you. >> Thank you. >> Representative Michelle. >> Thank you Mr. Chairman. I had two questions, but representative Insko took care of the first part right here. >> Thank you sir. >> I am a little bit concerned about this 5% average pay increase for teachers. You say you're trying to that they have a teacher pay will be more than $50,000 or the first time. I am trying to figure out how you get that $50,000 with the profits and increase, and what happens to those teachers who've been there more than 25 to 30 years who are On getting a bonus?
>> Thank you for the questions. So the salary will be increased on average to greater than $50,000. The way that you get to that 50,000 mark would be to combine the State portion plus local supplement when you average that across the state, it raises salary alone to over $50,000. >> May I have a follow up Mr. Chairman? >> Follow up. >> That raises another question because every locality doesn't have the same supplement. Some are a lot lower than others that are much higher. And I'm just trying to get to that $50,000 and what's going to happen to those teachers who are already at the maximum of $50,000 which is the ones you have given the bonus to. Yes sir again the $50,000 is gonna vary from district to district as to how much of that is supplement versus state dollars, with respect to the veteran teachers, they'll be getting a $5000 one time bonus. Which we believe is a pretty substantial investment and to those teachers. >>Representative Stam? >> Thanks, the very first question, a lot of words of wisdom there my question is, was but I will also point out that the state employees she's talking about had a negative pay raise over the last eight or nine years. In general, they live with is higher cost of living ans they receive supplements, and so I just wanna know what senator has those words of wisdom. I just couldn't hear. >> Tommy Tucker? >> [LAUGH] [LAUGH] >> Mr. Chair, well thank you all. I won't say a word, I'm a normal person who runs a business and I'm not a lawyer. >> [LAUGH] >> Senator, actually in translating, I think you He was trying to complement you, but that's the translation. >> I'm sorry, you can never ascertain that from someone with a crude cut. >> [LAUGH] All right, okay. Representative Richards, >> Thank you Mr. Chairman Mr. Heath. Thank you for your presentation, but my concern here is that there is appears to be no caller cost of living increase for retirees and those are the people that has made North Carolina what it is. So do you think the governor will be adjusting that or will they again not be considering his budget this year? Thank you for the question. The governor's proposed adjustment to the budget does not include a eclogue for retiree's. >> Representative Shepard? >> thank you Mr. Chairman, my question was the same, I was wondering what discretion was given as far as a echolar for retiree's, I might as well And I guess you answered that. It was in discussion given to cover for retirees. >> It's been an issue. I don't know that I'm able to comment on what level this discussion is getting to. >> Representative Pellington/g. Thank you Mr. Chairman, congratulations on your new job. I have a two fold question. One of them is, your predecessor, I asked last time he presented the governors budget and I'm sure he didn't tell you but, if you could next year try to address this subject As I believe correctional officers in the environment they have to work in should be over 25, if you're a law reinforcement retirement, very stressful job being around the dregs of society that sort of thing. So would you address that next year when you come back? >> Okay, follow up Do you have further questions? >> I do.>>[CROSSTALK] >> The other one relates to the cost of living adjustments for state employees and teachers. Let's just go back to a teacher that retired 20 years ago, they were making next to nothing And here we are not rewarding them and I have a serious problem with not giving state employees and teachers a cost of living adjustments. It's not a question, it's a statement Thank you. >> Representative Verla. >> Thank you, Mr. Chair. My turn. Mr. Heath, was any consideration given to the teaching assistants situation.
I've been in all my schools in my county, and they are stretched between two and three classrooms at this point and we've been increasing the amount of testing last few years, three to achieve other Reasons, any consideration given to restoring some of the teaching assistant so we might have at least one to a classroom or one to every two classrooms instead of two, three or four? >> Thank you for the question, there are no proposed FTE increases for teachers Assistants the existing teachers assistants would however get the bonus. >> Senator Bryant. >> I have two questions Mr Chair, and the first is perhaps for staff but Mr Heath may know the answer Is it related to call on for retirees. Just refresh me. Were does that money come from? Does it come from the retirement fund or the general fund and is there any legal reason that it has been typically tied to caller for state employees offer. When we give it to one, we give it to the other, we don't give it Give it a one, we don't give it to the other. Is there any legal reason? It has to be connected and where does the money come from? That's my first question. >> There's no way that we can refer to staff, but there is no legal reason to tieing together has been more of a tradition over a period of times. In terms of the money, it It's realized either within the pension or it is appropriated. Director Heath you may want to respond further or have any of your staff respond to the senators question. >> Thank you senator I'll defer to that response in a few if you haven't follow up my- >> Just follow up. So if we were to give a caller this year, is there money within the pension fund to cover it? Would it have to be appropriated? Is it related to out contribution. How would that be funded? >> It would be funded In terms of what's available in the pension funds, the staff would have to comment on that maybe they can get you that information later. And otherwise it would require an appropriated. >> Thank you one additional question. >> Additional follow up. >> In the education budget when we talked about I saw in the slide 80% of the teachers will receive a salary increase and then I noticed in the budget documents that talked about funding a staff increase in the budget document so I was trying to determine how are the 80% who will get The salary increase is determined and on page 42 in the note book it says. There will be an additional 68 million for the teachers who move to the next step is that part of this 80%? Help me reconcile those two things and let me know who will get the money How will we determine it? >> Sure, the 68 is in there on item 3 on page 42, 68, million and then what's actually appropriated is only about 12. Based on that is because Retirements so a lot of teachers will retire and move off that, and that's up to 12 million dollars. The 80% of teachers who will get pay increases are those who are not at the max already, so if you're a teacher with 25 years or more, you're already at the max and so those teachers would get a bigger bonus rather than a salary increase. >> Just one more little follow up on that Mr. Chair? >> One more follow up. >> Okay. So you're saying every teacher whose not at the max/g will move up a step, is that what we are saying? And then the people at the max/g will get the bonus? >> So. It gets a little complicated and the education adviser will be presenting on this a detail. >> Okay. >> but yeah everybody will be moving up. And everybody will get an increase every year. So long as you''re not at the max/g already. And then there are certain years that data supports teachers tend to leave the profession. So you'll see higher amounts given at those years as an incentive to keep people in the profession. >> Representative Floyd. >> Thank you Mr Chair I have two questions and the Second question may be but for the chairs to concede it. The second question.
The first question is bonuses. Why is it that we give the employee bonuses. Could it not be looked at as bonus instead of bonus, owners who rolled back a percentage, so it can go towards the end of the employee retirement that at one time seems to mean that the employee would benefit more if it went into his or her salary. And then subtract the taxes from there. [BLANK_AUDIO] >> Thank you for the questions. The availability for non recurring dollars was greater than the availability for recurring dollars. So that freed up the option for bonuses or the option for salary increase which is funded by recurring dollars was not available in all cases. >> Second question Mr. Chair. As the chairs and committees go through the budget discussion, is it some kind of way that the chairs will look at across the board increase for all state employees and then retiree's? It just a question to the chairs. >> I'm very certain that, that option will be considered strongly. >> Representative Blackwell >> Thank you Mr. Chairman, I have a question relating to the governor's proposal regarding state employees. I've been flipping around here and I am having a hard time finding it, and I think you've seen your slides, but maybe not in here. In understood that there was the proposal for continuing the salary adjustment for the correctional officers as I think we've pretty much included in the budget last year, but now giving it the extra money to continue that. And I understood the funding of the step increases which would be permanent ongoing increases for state highway patrol, assistant clerks, magistrates and FBI or something. What I'm not clear on is the proposal as it related to other state employees, and the extend to which it is only a bonus that is not continuing and doesn't count toward retirement. And the extent to which it might some portion of it for the average state employee would actually permanent and help them on their retirement path. >> Thank you. So, for teachers, SPI agents, the correctional officers, those who are specifically mentioned in PowerPoint. Other than those, the generic state employee would get a 3% average Average bonus, one time money doesn't go to retirement. It's just a one outlay of non recurring dollars. With respect to the 27 million dollars that's being invested in the salary adjustment fund, that would be officers taking the resources with the new state wide compensation and classification system working in consultation with agency has to determine, who most needs a salary increase to get them as far along the way as possible to the market rate. That would be recurring dollar increases just like a pay raise and it would contribute to their retirement and so on and so forth. >> Follow-up Mr. Chairman. >> Follow-up. >> I understand I think that, it's not in the Governor's proposal, but I have a question, and if you can't answer it, maybe I can get it later. Is it technically possible if the General Assembly determining had the funds to so? To Take the bonus that is not a commitment to on going raises, but to somehow include it for retirement purposes on it like a one time basis. >> I have to get back to you on that. I'm sorry I don't know. >> Representative Hagar >> Thank you very much chairman. My question is on the revenue side, I believe that our last surplus was dominated by capital gains. I was wondering if you could kind of break down the revenue between capital gains income and sales tax. >> We have that information, I do not have it in front of me, I wanna say it's in the budget book. [BLANK_AUDIO] One of my staff could help out on the page number,>>[ INAUDIBLE] [BLANK AUDIO]
>> The revenue portion of the book you can find on page 32 in terms of details for the surplus. It's mainly driven by higher than expected personal income tax collections. And a complete breakdown of that information, capital gains and other sources won't be available until we get more complete data in the next year or two, a lot of that data is lagged. But we do know again wage growth being higher, withholding growth being higher, estimated payments higher than expected. So that personal income tax collections are the main driver for that surplus. >> And let me just mention for the record, that was Nate Huffman from West Indie. So When we are referring to staff let's make sure everybody identifies themselves for the record, that would be helpful. >> Director Heeth. >> That's page 32, got it, thank you. >> And I would point out that we are hopeful that the final consensus broadcast With respect to revenues will hopefully be available from our economist maybe sometime next week. Or late next week or earlier the better. >> Nathan Coughlin LSPM, yes we are working very hard to try to complete that as soon as possible. Thank you >> Chairman Brown.>> Thank you Mr. Chairman. Thanks for this presentation. Good information. I think one of the governor's priorities has been to create a pot of money to shore up salaries across state government, which I think is Is a great strategy, because I think what has happened over time with pay raises that were all across state government for everyone, a certain percent, whether it was 1% or 2% pay raise for every state emplyee. What has done over time is created for stamps for employees because of differences in market are probably overpaid and some are definitely underpaid. And that has created and exasperated over time when that happens. And I know the governor has made a priority to kind of show that up and I think that's a good thing, because hopefully, it will make it easier to hire someone of those people and it's hard to fill positions. How much money, I know this budget, I think it's 27 million, I think you had to help again sure up some of those salaries. Do you have a number that we truly need to maybe sure up those. And the other piece I guess is, one of the key things I think as a legislature,I always always consider is a lifelong term liability that state has to consider and when you start [INAUDIBLE] you start talking about other things. What you do basically is create a situation with a long time liability of the state continues to grow and you gotta manage that, and I'm sure that's part of the discussion as well but again I think showing up these salaries is key moving forward, and just a little thought on how much money you think we need to make that happen, or have you got to that point? [BLANK-AUDIO] >> Thank you Senator. And I wish I did have that number. I just don't and I would differ to State Human Resources. I believe that they have been or will be presenting on their state-wide classification compensation system, and I believe part of that effort was to identify a number like that for [INAUDIBLE] >> Mr. Jeremy. >> Sander Tillman. >> Thank you Mr Chair Thank you Mr. Chairman. I have two questions. One. Do you know where we rank in North Carolina in principal pay regarding the rest of the nation? In comparison to the rest of the nation, do you know where we rank with principle pay? >> I could differ. I did not [CROSSTALK] >>Well, I have the answer. >> [LAUGH] We are 50th. We are 50th. Now I noticed that the governor is now mentioning teachers and principals in the pay. Tell me specifically what it does for principals, I missed that a while ago, I saw a number on there but I wasn't sure whether it was bonuses or across the board or a combination. >> We do have that information. I'll defer to Adam Bruggeman, who is the Assistant Budget Officer for Education. >> Gentleman's recognized >> Adam Bruggeman OSBM. What's provided in the governor's budget for principals is a step increase and a 3.5% bonus The bonus. At one time bonus and a [UNKNOWN] Okay. Thank you.
>> Thank you. Representative [UNKNOWN] >> Thank you Mr. Chairman. Question on page 90, regarding what is referred to as a tip reporting application in school system under school, promoting safer schools. It's item 7 on page 90. [BLANK_AUDIO] And that appears to be it's non recurring. So it appears to be setting up a tip line within the school system. Sounds a lot like a crime stopper's program, which has been very successful but first of all is non recurring funds. So it seems as though we're setting up some Something where we're expecting if it's a successful project where are we expecting the money to come from in the future. >> [BLANK AUDIO] So I'll defer to trace, I believe there is a recurring component to that but I'll defer to Tracy Wildol/g if that's all right Hello, Tracy Little, assistant state budget officer for justice and public safety, representative [UNKNOWN] in response to your question, there is non recurring funds, 958,000$ to deliver the app which has been piloted to all middle and high schools across the state, there is also So, recurring funds included in the committed amount to maintain that in an ongoing basis. [BLANK_AUDIO] >> Follow-up. >> No follow-up. Thank you. >> Thank you. Representative McGilreth. >> Thank you Mr. Chair. Thank you Mr. Heath for being here. I have a question Question about the benefits package, because salary is not just by itself. We differ from other states in our benefits package, which I think we have a very good benefits package. The State of North Carolina. Do you have the calculation as to what an average benefits package for an employee and also Before retiring years, and I would also like to see over the past ten years, how much that has increased as far s costing the state and also costing the employee and also again, how much of that has gone up over the past years and I would like to get a comparison of Of the South East States even in the Pennsylvania etc. Cuz I have friends who are teachers in Pennsylvania and New York, and they've had to pay part of their healthcare costs. So I'd like to see if we can get a comparison of that, because I think it's important that we talk about the benefits package and not always salary, cuz that i part of salary thank you. >> Thank you Representative, there is on page 22 a breakdown of some of the atoms that go into total compensation. Total compensation does include a fairly robust investment into benefit package, for example with teachers, salary would go into 50,000 and then with the benefits it would be over 67,000 similar ratios would be across state employees with respect to the more detailed component of your question regarding ten year comparisons, if you'd get with me or with OSPN/g staff, we'd be happy to try to provide that for you. Thank you. >> Senator Davis. >> Thanks Mr. Chair, right here. [LAUGH] >> I wanna first start With a comment and then just ask a couple of questions, but my comment is, I just wanna be on the list ergo some concerns and terms of the state employees, but moving into the first question, it is more curious based on the Governor's proposed budget here You include the local supplements into that figure that brings the teacher salary to the 50,000 range. If you exclude the supplements, do you know what the average salary would be, excluding the supplements? >> I don;t know what that is, because Supplements are included in their salaries. >> Okay. I was trying to understand and in particular, two along that same lines, was there any consideration in just looking then how that would break out, especially in in rule counties and those who actually have lower supplements. >> Thank you for the question, there is variety among the counties, it fluctuates, [UNKNOWN] and [UNKNOWN] are gonna have larger supplements
than some of the rural counties but The figure that we put out was the average so >> And then just one follow up >> Follow up okay, and you also speaking specifically math and sciences in terms of recruiting and retention efforts. Again what would that look like in terms of What has been consideration terms of what that would look like in terms of these counties are ready that would not be able to offer her supplement and actually tried some of these teachings into their communities. >> So the investments and governor's proposed budget are primarily Primarily, to increase the pipeline of teachers basically through scholarship programs. So, I am not sure if that answered your question, but [BLANK_AUDIO] >> Representative Horne. >> Thank you Mr. Chairman and thank you so Over here. >> on education I wanna thank you, I applaud the aggressive nature of the governor's proposals in education. I'm sure we'll have plenty of discussions on some of the details but I have three areas of interest First, I am going to try and combine them almost into one question. The three areas of interest are technology and the continuation of access from education into commercial sector, which I think we all acknowledge that Internet access is critical to education, but it's also also critical to economical development and how do we tie education and economic development together or, what provisions, what thinking, what can we do, through the use of technology tie our education in our commercial sector together so that we get some continuum of effort and along that line, I know I know that the governors budget includes investment technology in K12 but the continuum of education around the technology investment to ensure we have that wifi access e.t.c. for community college university system across the board, so again we're looking at continuum of effort and that brings me to my second part Which is early childhood education as part of the continuum of education. We have early childhood education efforts with HSS and in our traditional education area. We've heard in some earlier testimonials before of a committees of the The large number of various organizations non government involvement in childhood education and felt the confusion that exists because of the number of efforts and how it's broken up. So, I am looking for some advice from leadership, comes down to money from you all on tying that together, my last issue is, I'm looking for how you approach the [UNKNOWN] abuse deterrence that you've mentioned and I couldn't find much detail as I through this very quickly, so it's technology, Early Childhood Ed, and [UNKNOWN] >> [LAUGH] >>You'll have me in committee next week chairman. [LAUGH] Okay. [LAUGH] Representative Boles. >> Thank you Mr. Chairman for coming this morning. Following up on Senator Davis, can you explain, my county has a higher supplement of teacher pay pay than our surrounding counties, can you count those surrounding counties if I understand what you're saying, will get a higher proportion of state funds for their teachers than [UNKNOWN] because we are paying a higher supplement and will it be to our advantage to not pay as much a higher supplement to get a higher teacher [INAUDIBLE] state funds. If you elaborate on that as far as the supplement of teachers pay, if you're trying to bring it up and also, are you gonna automatically give the The bumps with no performance recording our record. And then I have a second >> Thank Sir, I think there is a misunderstanding there, the dollars will remain constant. The difference will come from the local supplements so you will
not be punished if you had a higher supplement than a county with a lower supplement, and I think everybody wins if the supplements are higher. >> Follow up? >> Yeah, so the surrounding counties that have a, ours is right at 2200 and our surrounding counties are 700 so you're saying that our surrounding counties are gonna have to increase theirs. >> Yes sir. >> Okay. Can you explain a little bit about the supplement as far as getting all statewide across the same pay? >> So the supplements are up to the counties and school districts, their Their [UNKNOWN] paid, as much as little as the can and then there is state appropriations that also feed into the salaries. When you consider both of those sources across the state, some high, some being lower, they will average out to $50,000 okay. >> Follow up? >> Yes and so this is all based on average we still know performance or accountability. >> So, in terms of performance space pay we do have 6 million dollars invested to a differentiated pay pilot program, that will be limited in scope and we're gonna hopefully try it out in this budget. But we felt like the feedback from The teacher community was number one priority was to raise basic pay. And so the governor was laser focused on doing that, and we've tried to do something bold and historic by giving it above 50,000 for the first time. >> And I thank you for bringing that to the attention. And I have this the third, page 90. Number three, increase salaries of qualified state highway patrol troopers, I guess that's an increase in stealth. How many are eligible for this? >> I believe the number is 643. >> Okay, and then follow up. >> Follow up. >> What happens to the other 1100 troopers that we still have? >> I believe that those troopers are at the top of the pay scale already, which is why they are not qualifying for the staff increases but I would defer that is correct. >> Just clarify. We have 11000 already maxed and at the top and we just need to bring the other 600 up. >> Yes sir, 11,000 are already at the max/g, 643 will move along step increases and they will all be getting average 3% bonus. >> Okay, just a comment. >> Yes sir. >> I think the concern as far as we keep hearing the $3,000 per employee bonus, and I think that's fine, then we're able to say well we've increased from 47,000 what you're making now, to 50,000 the next year, we are back down to 47 is that correct? >> I would characterize it as, they've always been at 47,000 and then to reward their hard work they're being given a 3 percent bonus for this year [INAUDIBLE] dollars Thank you. >> Thank you. Senator Heiss. >> Thank you Mr. Chairman. I guess I hear a lot of comments about how all this additional recurring money people wanna have to spend and within this budget, but my biggest concern is that the biggest source for the additional recurring revenue you have now is from the Medicaid re-base that's coming in I think you came as a reduction about $318 million. But we saw in February, the increases in [INAUDIBLE] and Medicaid that bought us actually back up to our protected levels of enrollment and I believe March is now in. And we've seen increases again in enrollment coming in which would shift a lot of that surplus this year to non recurring funds, and potentially not have that impact on the rebates number that's out there and And so I just wanna seeing the additional month now and those types of things of enrollment numbers, where do you think this rebase numbers is gonna come into and when do you think we'll have a consensus agreement on what the rebase adjustment will be? >> Thank you senator so you know of course this is a point in time budget, but OSPM has worked in close consultation with DHHS who
control the data. And we've come to a consensus among that group that 319 million is the rebase number for this year's proposed budget. I think that data will continue to come in. Numbers will continue to come in, both in Medicaid and revenues and that's all I can offer at this point. >> Okay. >> Chairman Lambert. >> Thank you Mr. Chairman add my appreciation to very well presentation that gets us started. I wanna shift the focus a little bit away from education to healthcare. We have a great medicaid reform plan moving forward, but it will take several years to get that fully implemented be much more efficient in the long run. What's in here in terms of rate changes for providers I'm particularly concerned about long term care, those providers who are actually taking care of the more fragile patients in our state, many of them have not had increase in 15 years, and I know there's some concern among those care givers and I wondered what's in here for great changes for providers like those assisted living, long term care, home health providers? [BLANK_AUDIO] >> Thank you Representative Lamberth. I am gonna defer to Pam Kilpatrick who is the DHSS Assistant State Budget Officer for that response. >> If I may Mr. Chairman. Pam Kilpatrick/g office of the state budget management. Representative Lamberth in the governors recommended budget for next year, there are no explicit rate adjustments being proposed. What we see is the medicaid, rebay/g something we look forward to walking through the assumption and what's driving those numbers when we present that to the HHS committee tomorrow. There's also investments in service expansions, but in terms of the rate reductions or rate increases there are no changes. The medicaid agencies still working through implementing some of the rate adjustments that have been authorized in previous appropriations acts. So nothing new by way of policy change. >> Thank you representative Charles Graham. >> Thank you Mr. Chair and thank you Mr. Heath. In your earlier presentation you talked about the governor's Desire to have additional funding for drug treatment corps/g. >> Can you elaborate what his thinking is on that? I know we have a few in the state. Is that overlooking it? Going state-wise, what's the thinking? >> Thank you sir. I don't know the details of where we're going statewide. I believe that was one of the recommendations from the governors mental health task force. And I believe that the investment is approximately 2.5 million dollars into that item. Pam do you have any further detail on that? I'm sorry Tracy. This is something that is sort of a cross over item working closely with the closely with the court system. So Tracy Little who handles public safety. >> Tracy Little assistant state budget officer, office of state budget management, representative Graham an answer to your question, as director Heath mentioned this was a recommendation from the governors task force on mental health and substance Misuse and what we are looking at is working with the court system to identify what is the best model and approach to make sure that the investment the state makes is actually producing the results we all want. Part of the recommendation is to ask the administrative office of the corps To conduct or contract for an assessment and evidence based assessment so we can identify an appropriate model. And then stand up the corps leveraging the existing programs that are already in existence. And coupled with that problematic model in case management piece will be treatment dollars that That will come from the department of Health and Human services for those individuals who are participating in the specialty corps. >> Thank you. >> Thank you. Senator Randon. >> Than you Mr. Chair and thank you Mr. Heath for being here today, on page 42 you have clarified that school Administrators, Principals and assistant principals. Why we say they stay up plus the $3000 bonus are there other categories that stadium ploys who will receive step increases plus the $3000 bonus. >> Yes, I believe The state troopers that are eligible and [BLANK_AUDIO]
assist Deputy clerks Amatrix also will. >> Follow up. >> Follow up >> So you are saying those employees who have statutory pay plans will get steps in their statutory pay plans and the $3000 bonus? >> Yes Ma'am. >> Thank you. >> And let me follow up on the senate The senators question Mr. Director, is that it $3000 bonus or 3% up to $3000. >> Thank you Mr. Chairman, so that is an average 3% sized per agency to up to 3000 $3000 the agency had work and consultation with the office of State Human Resources and how to allocate that amount. >> Just a block amount. >> Essentially yes, it's just been sized. >> Thank you Representative Hunter. >> Thank you Mr. Chairman, my question is on creating text books for tablets, this sounds great but there is a rule in North Carolina, I think any plans for expanded broadband [BLANK_AUDIO] >> Expanding broadband outside of the Education spirit of broadband generally. >> Yes. >> I am not aware of any additional appropriations for broadband specifically in the governors adjustments for the budget, and I don't know that there's any investment in In the base budget on broadband. > Follow up? >> Follow up. >> My question is, this kids will be able to use tablets in school but not at home for homework. In some of our areas we do not have that capability as far as internet [BLANK_AUDIO] Thank you, I believe that was a comment more than a question. I thank the gentleman. Senator McKssick. >> Over here sir, thank you for your presentation. A couple of quick questions And I appreciate what the governor is doing in terms of teacher pay and also understand the difference in shirt of teacher employees and I o think teachers do need a boost and employees as well. One thing that is giving me concern, is our low performing schools. And I prefer to them as low performing because in their grading systems They received these naps/g. The thing that I haven't seen any attention given to are resources allocated to is trying to help this under performing schools to meet their obligation to these student. Was there consideration given To helping out that particular target population, because we want these kids to perform , get the skills that they need to be successful,and be qualified for jobs tomorrow. But the substantial percentage of our schools have fallen to that classification that I hate to miss the Target population focusing on too much, simply upon teacher pay. So can you help me with that? >> I would like to be as responsive as possible, could you please articulate a question that I can respond to. >> Sure That you give consideration to actually targeting money and resources to these under performing schools or programs or initiatives that provide the schools with the resources either pro grammatically or in terms of technology or whatever would it be potentially necessary Perhaps they help this institutions out better feeding our students. I don't see that in here and I'm trying to find out if consideration was given and I guess it wasn't a priority or whether it was just not really ever thought about as this budget was developed? Develop. >> Thank you Senator. This is an adjustment to the based budget that has already been passed for the biennium. I'm not sure how allocations are made within educational resources to unperforming school districts. I think the focus of the governor was to invest Invest in teachers so that our classrooms have the best teacher as possible. >> Follow up Mr.
Chair. >> Briefly, let me just advise the committee, we're gonna go for about another seven, eight minutes. We need to be out of here about 22, so I've got I've got a couple more people on the list if we can keep this short and then wrap it up then again we'll be in committees shortly. The gentlemen recognize. >> Yep. Let me shift gears a bit, cuz I see you do have six positions here for the NC Connect Bond program. >> Yes sir. >> And I'm trying trying to get some sense in terms of the roll out of the bonds and priorities will be given within the bond package that was put before voters in terms of what we can reasonably anticipate since that is part of your budget and you've got six new people that you're hiring to oversee this effort, what is the time frame? a proposed time frame for seller bonds and what this priorities will be and how will this team that you put in the budget work toward moving that forward expeditiously. >> Thank you sir, so, there actually going to be 11 positions in this budget that will in one way or another support the bond initiative. There will be six and department of administration to supplement the capital resources that they have. It's going to be three with an OSPM and it's gonna be two with a community college system. In terms of timing. OSPM is working closely with the department Department of Administration, the first big benchmark date was last Friday the 22nd I believe, which was the due date for agencies to submit cash flow associated with project needs. We've gotten all that ion save for the University system. They are working that through their central office. That information is gonna be keyed in to centralized software so that we can manage these projects. We anticipate having proposals before the counsel of state early this summer if not late spring and then shovels in the ground shortly or there after. >> Thank you. I've got four members on the list if we can have short questions and brief answers that will be helpful. Representative Quinn . >> Thank you I can't remember A budget presentation where we had teacher pay blended with state resources and supplements as an average representing sort of rural counties in Western North Carolina are supplements aren't what the Longer urban areas supplements are, plus supplements have been locally where they had revenues of been string and where rural candidates have been weak in their economies, those supplements have been short. And so is there numbers here That represent what the states averages are that are uniform across the state. [BLANK_AUDIO] >> If you bear with me. Thank you for the question [BLANK_AUDIO] I am not gonna be able to go for it on spot, but there is some data about teacher pay, the components that go into teacher pay/.. I understand that That vary across the state, but the fact of the matter is that part of teacher salary in North Carolina and [SOUND] and so supplements have been included in teacher salary and this budget presentation It's included in their paychecks so we thought that it was important to include it in this presentation. >> Follow up? >> Briefly please. >> The next question is, you're using averages here and you're blending them and so forth, will there be a difference if you Used median in these numbers, there'd be a significant change? >> I have not run the numbers on median but I think average is a pretty standard way to present information of this sort. >> Okay. >> Okay. Can you do that, I mean is it? >> We'll get the, what well do Representative [UNKNOWN] is we'll get your questions and we'll get the information out to you. >> Thank you.
>> To qualify that. Senator Robins? >> Thank you Mr. Chair, I'm over here, as you can see, I want to I wanted to echo first what Senator McKissick said about low performance schools and hope that we in the General Assembly will pay a little bit more attention to what's necessary to improve those schools as well. But my question is in terms of page 84 and the Governor's proposal Proposal for the $30 million for his mental health and substance use recommendations, and I wanna know how that's gonna be administered and I wanna preface it with a statement that a recent report in the Huffington Post said that the percentage of women in Incarcerated has increased by 800% over a 10 year period and we see that a lot in North Carolina and the fact that that is co-related with substance abuse and the lack of appropriate treatment programs where there's a very Obviously it's a revolving door. So I want to know how this money, that is int Governor's budget, is going to be administered and how does it relate to the needs we have. We've already looked in our committees in terms of some of the deficits we have But how would this money be administered in the Governor's budget specifically. >> Yes Ma'am, thank you for the question. I'm probably not gonna satisfy the level detail you require with this response but it's gonna be administered through DHHS. Some of the drug treatment Treatment court is gonna be in conjunction with the court system, primarily through DHHS. >> Follow-up Mr. Chair? Just one follow-up. Is any of that going through the LMEs, MCOs or it's gonna be specifically and DHHS will determine where that money will go into what to what populations? >> Thank you for the question, I'll have to defer, I don't know the interactions with [UNKNOWN], DHHS on this particular initiative. I'll defer to [UNKNOWN]. >> If I may Mr. Chairman, [UNKNOWN] offers a state budget management Um, Senator, yes, a good portion of the Governor's task force recommendation's, the $30 million will be administered through LME MCOs. We talked earlier about the piece that would go to the drug treatment courts and the service dollars associated with that, five million, and then there's $25 million dollars for the other initiatives. You ask a specific question about how this would be targeted toward women and incarceration and other issues and I can tell you that from a budget perspective, I don't have a good answer but I know that tomorrow when we talk in greater detail detail about this which is one of the key policy initiatives in the governor's budget, we will ask the department and secretary [UNKNOWN] since they led this across the legislative, judicial and executive branches if they could tell us what consideration specifically was given to women in a broader kind Context, there is $9 million recommended in the proposal for PO8/g addictions, which was one of your earlier questions and substance abuse as well. >> Representative Barney/g, wave off, okay? >> Send her over. >> Representative Blackwell? >> Just one question. >> Actually I just wanted to make a comment Make a comment, if I may. Given the several questions and comments relating to supplements and the average teacher pay, just as I've been interested in state employee compensation for a log time, I've also been working with teacher compensation for a good while. And I hope I'm not mis-stating this, but I'm gonna tell you what I understand to be the case from the information given me. Most of the discussion around teacher compensation is derived from the National Education Association which annually Comes up with an average teacher compensation figure for each State. I know of no other source for that information other than the NEA. I've been trying to get it but I don't know anywhere else you get it. My understanding is that the NEA across Of the Nation in calculating average teacher pay includes all forms of pay. So the supplements, if you're gonna be comparing our average with the National average using NEA,
you have to include the supplements. You can make an argument, that we have a look at this average This aggregated stuff and take that into consideration, but if your're gonna compare apples to apples, averages in this State with the average Nationally, I think that's probably why supplements are included. It's further my understanding, that there's also variance across the State though not between the Districts in terms In terms of what's available, some teachers get National Board Certification increases, some get advanced degree extra pay. All of those things go into calculating the average so there is nothing in my mind irregular about including for this purpose Purpose the supplements they're also very, just as the EDA/g does. >> Members, we thank Chairman Heath for coming and making his presentation and listening to the questions. I would just as a point of clarification, I got a couple of notes up here with respect to where the This presentation is, if you look under the Appropriation committee website and go down, at least, I know on the House Committee, go down to the heading that says Join Appropriations, and you'll find it under that tab. So you have to go to a few tabs there and you'll find it and [INAUDIBLE] is recognized for a final for final comment.>> Thank you. It would be remiss if I did not say thank you to the budget team at OSPM/g. I've only been with them a short time and they're some of the hardest working and brightest individuals I've come across. So, thank you very much to my team. >> Chairman Brown has recognized [SOUND] >> [APPLAUSE] >> Drager/g, Heath, I wanna thank you for being here today. For some, you've only been on the job, what, a couple of months, I guess, if that. To stand in front of this group and to try and answer these questions, I know was not easy because I know you're in the learning stage as well and had to step in and try to I had to learn this stuff on the fly and it's a very difficult job but I wanna thank you for standing here and trying to answer these questions and I know you're still learning, and it my be difficult for you to answer all of them as well as you'd like to but people need to understand that two months on the job, there's a lot to learn Thanks for doing that. >> Thank you. >> [APPLAUSE] >> And with those comments, the committee is adjourned. [BLANK_AUDIO] [Blank_audio]