Yesterday, the NC House of Representatives began its formal process of developing its version of the state budget for FY2021-23 yesterday, more than a month after the beginning of the state’s fiscal year. Several House appropriations subcommittees met yesterday morning to discuss plans for various parts of the state budget. Some nonprofit highlights of the parts of the House budget that were approved by House appropriations subcommittees yesterday include:
- $40 million in one-time funding for North Carolina’s food banks;
- About $22 million in increased funding (over two years) to arts nonprofits through new arts council grants;
- About $16 million in new funding (over two years) for nonprofit museums;
- About $6.8 million in additional funding (over two years) for nonprofits that provide services for survivors of human trafficking;
- About $13 million in new funding (over two years) for nonprofits serving survivors of domestic violence and sexual assault;
- $20 million in one-time funding for Habitat for Humanity;
- $8 million in one-time funding for volunteer fire departments;
- $100 million in one-time funding for nonprofit private colleges and universities;
- $15 million in one-time funding for free and charitable clinics; and
- Smaller appropriations for dozens of individual nonprofits.
Overall, the House budget appears to provide significantly more funding for nonprofits than the Senate version. Much of this new nonprofit funding comes from American Rescue Plan Act (ARP) funds that are intended to offset some of the challenges nonprofits have faced because of the COVID-19 pandemic.
The full House budget will likely be released on Monday night, and the House Finance and Appropriations committees will review it on Monday and Tuesday so the full House can vote on it later next week. In June, the NC Senate approved its version of the state budget (S.105
). The Center will update its chart on nonprofit provisions in the state budget
next week to include a variety of House appropriations and provisions.
Once the House approves its version of the budget, the House and Senate will negotiate with each other and with Governor Roy Cooper on a final version of the state budget. Legislative leaders hope to have a final budget in place by the end of the month. Because the new state budget hasn’t been finalized, current state spending levels remain in effect for the beginning of the new fiscal year, meaning that state funding won’t be increased or revised to adapt to changing needs in the state.