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It's 505 and welcome in to a Wednesday edition of the Carolina Journal News Hour, News Talk 1110-993 WBT. I'm Nick Craig. Good morning to you. Yesterday, Governor Josh Stein signed six bills into law, one of them having a major impact across the Charlotte metro area. And the Charlotte Mayor Vi Lyles thanking the governor for signing House Bill 948, which is known as the PAVE Act, into law.
The legislation titled the Projects for Advancing of Vehicle Infrastructure Enhancements, also known as PAVE, would authorize the Mecklenburg County Commissioners to place a 1% local sales tax revenue on the ballot this November. If that 1% tax is approved by voters, the measures would fund a range of transportation projects across the area, including road improvements, bus systems, and rail development. The mayor of Charlotte said on X, quote, I want to thank at NC Governor for signing the PAVE Act this morning and recognize everyone who helped us move this legislation forward. This is a great example of how local and state Leaders can work together across the aisle to get something done. We still have more work to do, but this is a monumental milestone for Charlotte and Mecklenburg County.
One that we have been working towards for many, many years to create a better quality of life for our residents, end quote there from the Charlotte Mayer. Under the PAVE Act, 40% of the sales tax revenue would be allocated for road planning needs in the county's six towns. That's Cornelius, Davidson, Hunterville, Pineville, the City of Charlotte, Mint Hill, and Matthews, with an additional 40% being spent on rail projects, and the final 20% would be spent on the ongoing improvements to the bus program. The bill also creates a new 27-member transit authority to oversee how the transportation money is spent, and it will include members appointed by the governor, state lawmakers, Mecklenburg County, as well as some of those local towns and cities. No elected officials or lobbyists can serve on the board, and the group will focus on big projects like rail lines and bus services, and it must finish at least half of the red line rail project before starting on anything additional.
So the PAVE Act has officially been signed by the governor, and that will now allow... Authorize the Mecklenburg County Commissioners to place that on the ballot coming up this November throughout the municipal elections. One of the other major pieces of legislation signed by the governor yesterday includes House Bill 959. That is called the Protecting Students in a Digital Age Act, and it would, in fact, require school boards to adopt policies prohibiting student access to social media platforms in the classroom except when expressly directed by a teacher solely for educational purposes. The legislation, which is now law, would also ban TikTok on devices owned by school districts or through internet access provided by the school district.
The measure additionally integrates lessons into existing health and mental health curriculum to educate students on the dangers of excessive social media use. Representative Hugh Blackwell, the Republican out of Burke County, who was the bill's primary sponsor, said of The legislation: this is really an effort to further address what I think is generally recognized as the issue of social media. And the negative impact that It can have both educationally and for our mental and emotional support for our children. Stein also signed House Bill 67 into law yesterday. That's the Healthcare Workforce Reform Act, which strengthens access to health care and provides a streamlined process that allows physicians to become licensed in multiple states.
Representative Grant Campbell, the Republican out of Cabarris County, who is also a physician, said on X that the bill would address the state's physician/slash PA physician's assistant shortage and help meet workforce needs in the mental health and addiction care health space. With that, he also signed House Bill 412. That's the Child Care Regulatory Reform Acts. Supporters have said that this legislation would address affordable and access issues for families while reducing operational burdens on child care providers. At the heart of that piece of legislation is the proposal to decouple the state's Quality Rating Improvement System, or QRIS, from the child care subsidy reimbursement payments.
As it stands right now, or I guess I should say as it stood before this legislation was signed into law yesterday. The current model, child care facilities' star ratings, directly affected the reimbursement rates that they qualify for. The bill also requires that the Department of Health and Human Services develop a plan for the QRIS decoupling by May the 1st of next year. Additionally, DHHS has been directed to conduct a market rate study to establish new reimbursement rates pending approval from the state's General Assembly. Beyond the QRIS reform, House Bill 412 would also continue childcare subsidization grants and implement new deregulation amid, rather, aimed at reducing costs for providers.
Notably, the bill streamlined standards for workforce qualifications and facility operations, included by addressing definitions for lead teachers, staff-child ratios, as well as space and equipment requirements. One significant change would also bring religious child care facilities into the state, which currently operate under separate requirements. Under this now law, it would bring them into alignment with other licensed providers regarding subsidy payments and quality expectations. Proponents of the legislation argue that expanding the pool of providers receiving state subsidies would ultimately increase accessible child care options for families in need across North Carolina. The governor also signed Senate Bill 124, which is the State Hiring Accessibility and Modernization Act, as well as Senate Bill 321, Accounting Workforce Development Act, into law.
Those are the six pieces signed by the governor yesterday. We'll have more details on them coming up here in just a few minutes. It's now 5:12 on WBT. A big day yesterday in Washington, D.C., as the United States Senate passed Donald Trump's big beautiful bill. That, of course, sparked a lot of controversy with Republican Senator Tom Tillis over the weekend, announcing that he would not be running for a re-election after Trump torched him pretty heavily on social media.
One of the big arguments that Senator Tillis had against not voting for this legislation was some changes to Medicaid. To walk us through those details, Teresa Paca, CarolinaJournal.com, joins us on the news hour. Teresa, only three Republicans voted against the president's big beautiful bill in the Senate yesterday. One of them was Senator Tillis. He continues to have concerns about Medicaid.
What are you tracking? Sure, good morning, Nick. Thanks for having me.
So, as you mentioned about changes to Medicaid, will come if it does pass in the House, the big beautiful bill. And should stress this because there has been some confusion about if Medicaid is completely going away in North Carolina. The answer to that would be no. What this would be is for anybody who came on with Medicaid expansion, which was signed into law a little over two years ago by former Governor Cooper.
So, actually, they were looking to get around 500,000 people they I think estimated at the time would sign on. We're up to over 673,000 people at this point.
So, just to stress that in the beginning, is for anybody who came on board with Medicaid expansion, the whole Medicaid program does not go away in North Carolina.
So, yeah, there are some changes that will be taking place, and we can go through those.
So, but the Congressional Budget Office. Estimate. They have, and this is for the program across the board in the United States. Shows the bill would reduce federal Medicaid spending by about $793 billion, and that the Medicaid provisions would increase the number of uninsured people by 7.8 million.
So that's also going in there. There's also There's, you know, it is a complicated issue because they said some people get confused about it. You know, we had Senator Tillis stand up and say, hey, you know, I can't vote for this, and then we saw what happened.
So he put out a press release, and in that press release, he had an eight-page report that he compiled from data from the General Assembly's Fiscal Research Division, the state's Department of Health and Human Services, and others that estimates there will be a $32 billion impact over the next decade in North Carolina if this bill is signed into law. Obviously, that's a major economic impact. And Teresa, just to take a couple of steps back, I mean, Medicaid expansion is not necessarily a new discussion in the nation. Republicans in the General Assembly rallied against it for the better part of a decade up until just about two years ago when they officially signed on to this 9010 federal split and expanded that to, as you noted, now more than 670,000 individuals. To me, there was always this risk that if the federal government made changes to Medicaid, it could put those people at risk.
And I guess it's here sooner rather than later, I guess, for Republican lawmakers that just acted on this a couple of years ago. Oh, that's right. That's right. I mean, there was always that possibility. They kind of knew that going into it.
But, you know, and it's been going back and forth, back and forth in the state, you know, where they were talking about getting expansion for Medicaid. You know, Governor Cooper has talked about it. He kind of went after the Republicans for not agreeing to it. And finally, they came to this agreement under Senate leader Phil Berger and former House Speaker Tim Moore, who's now a congressman, to go ahead and get Medicaid expansion put into law. They agreed to it.
But yeah, there was always that possibility if this happened that, you know, Many people, over 670,000 people, would lose coverage.
So, yeah, like I said, Senator Tilla said, all this comes into being. painful decision decision is going to be either eliminating Medicaid coverage for all those people and also reducing critical services like in different hospitals across in the rural areas, especially where Medicaid is more prevalent. Yeah, that rural area thing was something that he harped on pretty handily, not only in that press release, but actually speaking on the Senate floor late Sunday night before the bill had officially passed, while the voterama was going on, as it's been so aptly named. He made some of those same concerns that this could not only hurt some of these more rural hospitals or health care systems, Teresa, but saying some of them might have to go away because they won't have any more funding coming from the federal government through Medicaid and won't be able to serve anybody anymore. Yeah, that's right.
You know, there was also, he mentioned in this report he put out, there's plans for maybe expanding for other programs, other hospitals.
Some hospitals now actually got to expand their oncology services, offering cancer treatments for the first time for people in rural areas and like OBGYN services for women. Even as far as going as hospitals on the eastern coast of the state, getting parts for HVAC for air conditioners, because they had old parts that they needed to replace. Under all this funding that they have right now, they were able to actually fly in parts.
So it's been, you know, that's what he has stressed that, you know, this is really going to hurt. And everybody actually, you know, people have said this is going to hurt. People in rural areas, especially when it comes down to it. We'll continue the Medicaid discussion with Teresa Opeca from Carolina Journal.com after this. You're listening to the Carolina Journal News Hour.
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Granger, for the ones. Who get it done? 22 minutes past the hour. Welcome back to the Carolina Journal News. Hour News Talk 1110-993-WBT.
Effective yesterday, July 1, also the 96th anniversary of its founding, the North Carolina State Highway Patrol has officially been elevated to an independent cabinet-level department or agency, a significant restructuring resulting from the enactment of Senate Bill 382, which passed back in 2024. Senate Bill 382 encompassed excessive changes to the state government structure. Notably, it reclassified the State Highway Patrol as a standalone agency, transferring oversight of the North Carolina Division of Motor Vehicle License and Theft Bureau to the State Highway Patrol as well. Under the bill, the now the State Capitol Police also operate under the direct Of the highway patrol commander. Senate Bill 382 also reallocated control over the state board of elections and transformed this authority to state auditor Republican Dave Bollock.
Former Governor Roy Cooper vetoed this legislation back on November the 26th of last year, but the Republican Control General Assembly overrode the veto from Governor Roy Cooper with the Senate voting 30 to 19 and the House voting 72 to 46 to enact the bill into law. According to what the governor said at the time, quote, this legislation was titled disaster relief, but instead violates the Constitution by taking appointments away from the next governor for the Board of Elections, the Utility Commission, and the commander of the North Carolina Highway Patrol, letting political parties choose appellate judges and interfering with the General Assembly's ability to advocate for lower electrical bills for consumers. The law also directed now Governor Josh Stein to reappoint Colonel Freddie Johnson to a new five-year term as the commander of the North Carolina State Highway Patrol. Cooper had originally appointed Johnson to lead the patrol back in April of 2021. Cooper and Stein unsuccessfully sued Johnson and state lawmakers earlier this year, arguing that the law violated the governor's authority in not allowing Stein to choose another candidate or to remove Johnson.
From the post. The court ruled that Stein had failed to prove that the act was, in fact, unconstitutional. Yesterday, Johnson addressed Highway Patrol changes in a department Facebook post stating, quote, Today marks an important day in both the history of our agency and the beginning of the future as an independent cabinet-level department. He welcomed the integration of the License and Theft Bureau as well as the oversight of the State Capitol Police, emphasizing the strength and capabilities and service that the unified agency will provide for North Carolina. Colonel Freddie Johnson said, I am personally excited for what the future holds with these changes and knowing that our success is certainly thanks to the people that collectively make up the state's largest law enforcement agency.
Thank you to all of our retired and current members, a part of our 96 years of excellence, sacrifice, and service. Today's milestone is only possible thanks to the work and sacrifices you invested into our life-saving missions. That officially did take place yesterday, contrary to claims from Governor Stein and Cooper that it was unconstitutional or illegal. A court ruled back less than two weeks ago that it, in fact, was not. And as the July 1st deadline has now come and gone, the State Highway Patrol is officially now a cabinet-level agency.
You can read some backstory on how we got to this point and some more on those legal challenges by visiting our website this morning, CarolinaJournal.com, the headline. Highway Patrol becomes Cabinet level agency after twenty twenty four veto override. It's now 527. You're listening to the Carolina Journal News Hour. Major discussions going on this morning in Washington DC and in North Carolina about the future of Medicaid under the Big Beautiful Bill.
Continuing our coverage with Teresa Opeka from CarolinaJournal dot com.
Now, the administration and many other senators across the United States Senate have downplayed this report from Senator Tom Tillis. He claims he talked to leaders in the General Assembly, Josh Stein, other departments here in North Carolina to come up with these numbers, yet that's still being downplayed from the administration. Do we know where the truth lies in all of this, Teresa? I mean, there's always both two different sides to a story. You've got what Tillis is saying, you've got what the administration is saying.
Does the truth lie somewhere in the middle from your research and analysis? You know, going back, you wonder, you're hearing all these sides, you know, coming down to this, coming down to that. But what's supposed to be nonpartisan is the Congressional Budget Office. They took a look at that. They had the estimate.
Also, there was the Kaiser, it used to be the Kaiser Family Foundation. I think now it's just KFF is what it stands for. They put out a report. There's also supposed to be nonpartisan. They've done all this research going on, and I, you know, like not siding with one side, taking a look at the actual figures.
And that's what they've come up with. You know, and it is a difficult issue. You're going to hear a lot from, oh, it's going to just obliterate Medicaid. No one's going to have health care at all, period, all this kind of stuff. Or then others are saying, no, no, everything's going to be fine.
It kind of does go somewhere down the middle because as we explain, Medicaid expansion would actually be dead in the water here in the state and maybe other states as well. But the Medicaid program would not be going away.
Now, it might be affected in some way. Mm-hmm. Not sure 100% on that because no one's really talked about that. This all is just strictly on Medicaid expansion. And it's for a couple of different reasons.
They're capping what hospitals are actually as a 3.5% provider tax cap. That's going to eliminate all or most of the health care access and stabilization program known as HASP in the state. That goes toward hospitals. Otherwise, the federal government would have to keep reimbursing at a higher rate, and they'd no longer want to do that.
So they capped it at that. And also putting more work requirements for people on Medicaid, which there already are, but now they're going to want to do this twice a year.
So that entails more equipment and more personnel. That's more funding. More funding the states are going to have to get include those two together. That's what's going to make Medicaid expansion go away if this is signed into law.
So yeah, there is nonpartisan research into this. Yeah, you talk about that work requirement. That's been a big sticking point for the President and some of his allies, this 20 hours minimum a week for able-bodied individuals. I believe the age is under 65 years old.
So that discussion there. But, Teresa, they also contend that with this expansion of Medicaid, there's a lot of fraud that's taking place and a lot of abuse of the system as it exists right now. But have you read any commentary or seen any analysis on some of those arguments made by the President and some others in the Administration? I believe I have seen some. I think there's been some in the news lately too.
So, yeah, they want to definitely cut down on fraud, cut down on waste and overspending. And that's primarily why the president is doing all of this. But of course, there's the critics on the other side saying you're going to cause people to lose health care. But there's always that chance, along with Medicaid, and also, like, when you go back to they call it the SNAP program, food stamps, there's been known fraud in that program as well.
So it has been an issue, and I think this is a way that they're trying to address it. Absolutely. This is still a very fluid situation this morning. Of votes expected on the big, beautiful bill potentially as early as later today in the United States House. We'll continue to watch those details and, of course, keep you up to date with the impacts here in North Carolina over on our website, CarolinaJournal.com.
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Welcome back to the Carolina Journal News Hour. News Stock 1110-993WBT.
Some concerning details this morning for the state health plan. This is after a new performance audit from North Carolina State Auditor Dave Bullock concurs with state treasurer Brad Bryiner and the North Carolina Health Plan's Board of Trustees that the state health plan is in serious financial trouble. This is very problematic as the state health plan provides health coverage to nearly 750,000 state employees and retirees. North Carolina State Treasurer Brad Bryiner and SHP administrators have said that the plan's projected deficit was more than $507 million in 2026 and between $800 and $900 million in 2027. As a result, the State Health Plan Board of Trustees voted at their May meeting to raise deductibles, among other changes.
The audit based on projections from 2024, which were used for the financial forecasting by the State Treasurer's Office, showed net losses for the State Health Plan of $199 million, $507 million, and $862 million for 2025 through 2027. Ultimately, the projections showed that the State Health Plan having a $949 million cash deficit by the end of 2027. State Auditor Dave Bollick said in a press release with this audit, quote, at the request of State Treasurer Brad Breiner, the State Auditor's Office provided our expertise with an independent examination of the financial forecasting for the State Health Plan. The work for our team has been done to verify the prior assessment with the projections confirming accurate and in accordance with professional standards. The scope of the issue at hand is now demonstrably clear.
In the report, he said that the actuarial models, by their nature, make assumptions based on surveys and data that are considered conditional. Also, there is always a level of uncertainty, but the model shows that through his office's independent analysis that the costs will outpace the current rate of inflows for the state health plan.
So, the question being asked this morning by many across North Carolina: how did we get here? The North Carolina State Auditor's Office provided background as to how SHP ended up in the current situation. On October the 3rd, 2023, the state enacted Session Law 2023-134, establishing employer and employee contribution rates to the state health plan for the fiscal year 24-25. The statutory established contribution rates were less than recommended by the state health plan, resulting in reductions requested contributions of $50 million and $190 million in fiscal years 24 and 25. At their meeting on October the 3rd, 2023, the board was presented with a comparison of SHP's actual results to budget projections through August of that year.
This comparison showed that the state health plan had a net loss of more than $109 million through August of 2023, which excluded, which exceeded rather the projected level of loss by more than $83 million.
So then another meeting took place on April the 25th of 2024. Once again, the board was presented with financial projections indicating projected net losses of $107 million through the calendar year 24, 323 million in 25, and more than $452 million in 2026. These projected losses would result in the elimination of more than $211 million in cash deficits for The state health plan by the end of next year. During that same meeting in 2024, the board was presented with additional financial projections indicating some of those losses getting close to a billion dollars by the end of 2027. The state health plan attributed the projected net losses to the following factors, medical and pharmacy costs increased, the state's biennium budget for the fiscal year 23 through 25, providing $240 million less funding than requested, as well as more than $316 million in COVID-19 expenditures that were not reimbursed by the state.
Auditors said that the objective of the performance audits were to determine if the state health plan's financial projections for calendar years 25, 26, and 27 were performed in accordance with the practices prescribed by the actuarial standards board and whether qualified perform whether these reports actually were accepted and followed some of those procedures. The state auditor's office also determined the reasonableness and accuracy of some of the assumptions that were used in some of the projected modeling that showed some of those major downfalls. Auditors performed the following audit procedures, reconciled the June 2024 cash basis, revenues, and expenditures used in the projections to provide these comprehensive financial reports. They also ensured that claims and enrollment underlying data used in the projections were complete and accurate. Was said and done, auditors in fact concluded that the state health plan's projections for some of those losses were in fact done in accordance with those best prescribed practices in the auditing world.
In addition, they found that some of the assumptions, models, and results of the SSA Health Plan's financial projections for the calendar years 25 through 27 were reasonable and accurate, with State Treasurer Brad Breiner agreeing with the findings, saying, Ensuring the financial solvency of the state health plan has been a top priority for me since day one in this office. I appreciate the auditor's team verifying the size and scope of the deficit that we are facing. State employees, retirees, and their families deserve a transparent assessment for the finances of the plan that they rely on. And the information provided in this audit confirms that we were on the right path. He means on the right path with some of those numbers.
As it stands right now, the state health plan is projected to have a $949 million cash deficit by the end of 2027. This is why the discussion over increased rates and increased payments do continue to unfold at the various Board of Trustee meetings that take place within the state health plan. We are expecting another one of those meetings in the next, I believe it's in the next two months or so. We will continue to track the details on the state health plan and its solvency going forward. You can read some more details on this story by visiting.
Our website this morning, CarolinaJournal.com. The headline: Audit Fine State Health Plan has serious deficit. Uh It's 5:53. Welcome back to the Carolina Journal News Hour, News Talk 1110-99.3 WBT. A busy day yesterday in the governor's mansion as Governor Josh Stein signed six pieces of legislation into law, one of them having set to have a major impact for the Charlotte metro area, a plan to overhaul the region's transportation system as Governor Josh Stein signed House Bill 948 into law yesterday.
This bill was spearheaded by Republican Representative Tricia Cotham, the Republican out of Mecklenburg County, to allow a one-cent countywide tax referendum to address transportation needs across the area. And looking as to how this process will unfold, if approved by voters, the measure would fund a range of transportation projects, including road improvements, bus system and route improvements as well as rail development. The Charlotte Mayor in Vi Lyles posted on X, quote, I want to thank NC Governor for signing the PAVE Act this morning and recognizing everyone who helped us move this legislation forward. This is a great example of how local and state leaders can work together across the aisle to get something done. We still have more work to do, but this is a milestone moment for Charlotte and Mecklenburg County.
One that we have been working towards for many, many years to create a better quality of life for our residents. And quote there from Mayor Vi Lyles. Under the plan, and if approved by voters, 40% of the sales tax revenue would be allocated for road planning needs in the county's six towns, which include Cornelius, Davidson, Huntersville, Pineville, the City of Charlotte, Mint Hill, and Matthews. An additional 40% would be spent on rail projects, and the remaining 20% would be spent on the bus program. The bill also creates a new 27-member transit authority to oversee how the transportation money is spent.
It will include members appointed by the governor, state lawmakers of Mecklenburg County, as well as some of those local towns and cities. Important to note: no elected officials or registered lobbyists can serve on the board, and the group will focus on projects like rail lines and bus services. But it is required in statute that they must finish at least half of the Red Line Rail project before starting or taking on any other major rail lines across the region. That bill, again, was signed by Governor Josh Stein yesterday. And for voters in the municipalities coming up later this year, you will have the opportunity to vote in favor or against this 1% local sales tax referendum on the ballot this coming November.
The governor also signed another piece of legislation, something that we have been looking at for quite some time, House Bill 959, known as the Protecting Students in a Digital Age Act. It would require school boards to adopt policies prohibiting students' access to social media platforms in the classroom except when expressly directed by a teacher solely for educational purposes. This law would also ban TikTok on devices owned by the school district, so any laptops or tablets given out by the school for educational purposes or through internet access provided by the school district itself. The measure additionally integrates lessons into existing health and mental health curriculum to educate students on the dangers of excessive social media use. Representative Hugh Blackwell, the Republican out of Burke County, who was the bill's primary sponsor, said, This is really an effort to further address what I think is generally recognized as the issue of social media and the negative impacts that they can have both educationally and mentally as well as emotionally on our children.
With this legislation now being signed into law, school districts must come forward and put forth a plan on banning those Or putting those policies in place prohibiting the use of cell phones and other electronic devices in the classroom. That's going to do it for a Wednesday edition of the Carolina Journal News Hour. WBT News is next, followed by Good Morning BT. We're back with you tomorrow morning, 5 to 6, right here on News Talk 1110 and 99.3, WBT.
