>> WELL GOOD AFTERNOON, EVERYBODY.

I'M PLEASED TODAY TO SHARE THE RECOMMENDATIONS FOR NORTH CAROLINA'S GENERAL FUND BUDGET.

THAT I'M SENDING TO THE STATE LEGISLATURE.

THE PAST YEAR HAS TESTED OUR STATE IN WAYS THAT WERE WANTS HARD TO IMAGINE.

IT'S LAID BARE EXISTING CHALLENGES AND INEQUITIES WHILE PENDING DAILY LIFE AND THREATENING TO HELP AND ECONOMIC SECURITY OF PEOPLE ACROSS OUR STATE.

BUT IT'S ALSO SHOWN THE STRENGTH RESILIENCE AND INNOVATION OF NORTH CAROLINIANS AND MAKE CLEAR WHERE OUR STATE'S FUTURE.

IT'S SO BRIGHT.

WE'LL PUT THIS PANDEMIC BEHIND US SOONER RATHER THAN LATER.

WITH THE RIGHT INVESTMENTS.

WE CAN ENSURE OUR STATE ROARS BACK.

CREATING OPPORTUNITY FOR ALL OF OUR PEOPLE NOT JUST THOSE AT THE TOP.

THIS IS THE TIME TO FIND OPPORTUNITY IN CRISIS.

BUT THE RIGHT PRIORITIES, WE'LL NOT ONLY BEAT THIS PANDEMIC THE BUILD LASTING SUCCESS FOR NORTH CAROLINA.

THE MOST IMPORTANT RECOMMENDATIONS TODAY WILL INVEST IN NORTH CAROLINA'S PEOPLE.

SO THEY CAN LEARN GET HEALTHIER.

GET THE RIGHT KIND OF TRAINING FOR GREAT JOBS.

BUSINESSES SEARCHING FOR SKILLED WORKERS AND HIGH QUALITY OF LIFE KEEP HEEDING OUR CALLS TO COME HERE AND EXPAND.

BUT AS WE WORK TO WRITE THE INEQUITIES EXPOSED BY THE PANDEMIC WE NEED TO MAKE SURE THAT EVERYONE IS READY FOR THEIR OPPORTUNITY TO SUCCEED.

THE MOST CRITICAL INVESTMENTS NEED TO BE MADE IN EARLY CHILDHOOD EDUCATION AND OUR PUBLIC SCHOOLS.

THIS BUDGET PROVIDES MORE FOR PRE K AND EARLY LEARNING WHICH SCIENCE OVERWHELMINGLY PROVE STARTS CHILDREN ON THE RIGHT PATH TO SUCCESS.

THIS BUDGET ALSO WORKS TO MAKE GOOD ON OUR STATE'S CONSTITUTIONAL DUTY TO MAKE SURE THAT EVERY CHILD HAS ACCESS TO A SOUND BASIC EDUCATION.

WE KNOW HOW TO DO THAT.

ATTRACT AND KEEP GOOD TEACHERS WITH COMPETITIVE PAY.

RECRUIT YOUNG PEOPLE TO MAKE TEACHING A CAREER.

MAKE SURE STUDENTS AND ADULTS ARE READY FOR CAREERS IN HIGH-DEMAND FIELDS OF EMPLOYMENT.

PROVIDE THE RIGHT RESOURCES FOR STUDENTS WITH THE GREATEST NEEDS.

ANOTHER PRIORITY IN THIS BUDGET IS MAKING SURE PEOPLE ARE HEALTHY AND HAVE ACCESS TO QUALITY HEALTH CARE TO KEEP THEM THAT WAY.

VACCINES ARE BEATING BACK THIS PANDEMIC.

BUT THE AFFORDABLE HEALTH CARE NEEDS WILL PERSIST LONG AFTER THIS PANDEMIC IS OVER.

WE MUST GET HEALTH CARE TO MORE WORKING PEOPLE.

AND THE BEST WAY TO DO THAT IS TO EXPAND MEDICAID.

IT INSURES MORE THAN HALF A MILLION PEOPLE WITHOUT STATE TAX DOLLARS.

IT CREATES JOBS.

IT HELPS SAVE RURAL HOSPITALS, IT MAKES PRIVATE HEALTH INSURANCE, LESS EXPENSIVE.

IT GIVES MANY MORE PEOPLE ACCESS TO MENTAL HEALTH AND DRUG TREATMENT.

HOW DO WE KNOW ALL THAT.

BECAUSE THE DATA FROM 39 STATES THAT HAVE EXPANDED IT SHOWS US.

NOW I KNOW LEGISLATIVE LEADERS IN THE PAST HAVE OPPOSED IT.

AND THEY'VE HAD THEIR REASONS WHICH I'VE LISTENED TO.

BUT 3 MAJOR CHANGES HAVE OCCURRED SINCE WE STRUGGLE TO STRUGGLED OVER THIS ISSUE IN THE LAST BUDGET.

FIRST THE GLOBAL PANDEMIC HAS COST HUNDREDS OF THOUSANDS OF NORTH CAROLINIANS THEIR EMPLOYER SPONSORED HEALTH INSURANCE.

SECOND.

THE FEDERAL AMERICAN RESCUE PLAN HAS OPENED THE DOOR WIDER WITH BILLIONS OF DOLLARS TO ENCOURAGE STATES THAT HAVEN'T EXPANDED TO JOIN.

AND 3RD.

ON JULY, THE FIRST NORTH CAROLINA WILL DRAMATICALLY CHANGE HOW IT MANAGES THE MEDICAID SYSTEM.

IN A WAY LEGISLATIVE LEADERS WANTED TO TO TAKE BETTER CARE OF TAX DOLLARS.

RED STATES ACROSS THE COUNTRY ARE ALREADY MAKING MOVES.

I'M READY TO WORK WITH LEGISLATIVE LEADERSHIP AND MEMBERS OF BOTH POLITICAL PARTIES HERE IN NORTH CAROLINA TO FIND A WAY FORWARD.

ACCESS TO GOOD HEALTH CARE AND EDUCATION WILL GET OUR STATE READY FOR THE JOBS THAT ARE ALREADY COMING.

AS WE'VE SEEN WITH JOB ANNOUNCEMENT AFTER JOB ANNOUNCEMENT IN RECENT WEEKS.

OUR ECONOMY IS MOVING.

AND WE'RE TELLING EMPLOYERS AROUND THE WORLD THAT NORTH CAROLINA IS READY AND OPEN FOR BUSINESS.

THIS BUDGET SENDS THAT SIGNAL BY ENCOURAGING INNOVATION IN LINKING THE NEW INDUSTRIES.

BIOTECHNOLOGY RESEARCH, MEDICAL MANUFACTURING.

CLEAN ENERGY PRODUCTION.

THIS WILL HELP BUSINESSES IN OUR STATE.

BOTH LARGE AND SMALL.

AS I'VE SAID THE PANDEMIC HAS UNDERSCORED THE INEQUITIES IN OUR STATE.

SIMPLY PUT IT'S HITTING THOSE WITH LOWER INCOMES MUCH HARDER THAN THOSE AT THE TOP.

THE NEEDS ARE STARK.

HOUSING FOOD EMPLOYMENT HEALTH CARE.

ANY STATE PANDEMIC RECOVERY MUST TACKLE THESE INEQUITIES.

THIS BUDGET RECOMMENDS REINSTATING THE EARNED INCOME TAX CREDIT.

TO HELP THOSE WITH LOWER INCOMES KEEP MORE OF THE MONEY THAT THEY EARN.

MORE THAN 900,000 PEOPLE IN OUR STATE CLAIMED THE FEDERAL EARNED INCOME TAX CREDIT IN 2018.

AND WE NEED A STATE CREDIT TO MATCH.

A SEPARATE CHILD AND DEPENDENT CARE TAX CREDIT CAN HELP THE 10'S OF THOUSANDS OF FAMILIES WHO HAVE EXPENSES CARING FOR THEIR CHILDREN OR DEPENDENT PARENTS AND GRANDPARENTS.

THIS HELPS MORE THAN EVER DURING A PANDEMIC.

STATE GOVERNMENT HAS A RESPONSIBILITY TO LEAD THE WAY IN PROMOTING FAIRNESS.

THIS BUDGET PROVIDES A MINIMUM OF $15 PER HOUR WAGE FOR NON CERTIFIED EMPLOYEES IN PUBLIC SCHOOLS SUCH AS BUS DRIVERS, CAFETERIA WORKERS, AND TEACHERS ASSISTANTS.

IT ALSO MAKES STRONG INVESTMENTS IN OUR TEACHERS COMMUNITY COLLEGE AND UNIVERSITY WORKFORCE AS WELL AS OUR OTHER STATE WORKERS AND RETIREES.

WE ALSO WANT OUR STATE AGENCIES TO DO MORE TO VIEW THEIR WORK THROUGH A JUSTICE AND EQUITY LENS.

THIS MEANS INCREASING THE PARTICIPATION OF MINORITY CONTRACTORS WHICH CREATES MORE COMPETITION AND SAVE TAXPAYERS MONEY.

WE MUST ALSO REACH OUT TO HELP COMMUNITIES OF COLOR AND IN CASES OF CRIMINAL JUSTICE.

FIX THE INEQUITIES.

WE'RE ALSO RECOMMENDING A 4.7 BILLION DOLLARS STATEWIDE BOND INITIATIVE TO BE VOTED ON BY THE PEOPLE THIS FALL.

THE BOND WOULD BUILD NEW K THROUGH 12 PUBLIC SCHOOLS AND FIX OUR AGING BUILDINGS ON OUR COMMUNITY COLLEGE AND UNIVERSITY CAMPUSES AS WELL AS BUILDING NEW BUILDINGS THERE.

AND IT WOULD BOTH BOLSTER STATE PARKS MUSEUMS AND OTHER SITES ACROSS STATE GOVERNMENT.

WE HAVE A RESPONSIBILITY TO PUT OUR CHILDREN IN SAFE RELIABLE CLASSROOMS.

AND THIS BOND WILL START ADDRESSING THE MORE THAN 8 BILLION DOLLARS IN DOCUMENTED NEEDS.

INTEREST RATES HAVE NEVER BEEN LOWER AND OUR ECONOMY NEEDS TO BOOST.

AND THANKS TO HAVING PAID DOWN NORTH CAROLINA'S DEBT.

OUR STATE CAN AFFORD IT.

NOW IS THE TIME TO ADDRESS THIS BACKLOG OF NEEDS.

IT'S IMPORTANT TO NOTE.

WHAT WE LEFT OUT OF THIS STATE FUNDED BUDGET AND WHY.

THANKS TO THE AMERICAN RESCUE PLAN.

SOME OF OUR MOST PRESSING NEEDS TO LIFT COMMUNITIES IN RURAL AND OTHER AREAS CAN BE COVERED BY THESE FEDERAL FUNDS.

THIS MONEY CAN MAKE IMPORTANT INFRASTRUCTURE INVESTMENTS LIKE HIGH SPEED INTERNET TO MAKE SURE EVERYONE IS CONNECTED FROM SMALL BUSINESSES TO PEOPLE NEEDING TELEHEALTH VISITS WITH THEIR DOCTORS.

HOUSING, SO PEOPLE CAN HAVE AND AFFORDABLE AND DEPENDABLE PLACE TO LIVE.

SPECIAL HELP FOR HARD-HIT BUSINESSES LIKE THE HOSPITALITY AND TOURISM INDUSTRY.

UPGRADES TO WATER AND SEWER SYSTEMS WHICH SMALLER LOCAL GOVERNMENTS ARE STRUGGLING TO AFFORD.

PROPOSED BUDGET FOR NORTH CAROLINA SHARE OF THE AMERICAN RESCUE PLAN WILL BE COMING SOON.

THIS STATE BUDGET AVAILABILITY IS STRONG WITH ALMOST 5 BILLION DOLLARS IN UNRESERVED MONEY IN THE GENERAL FUND AS WE START THE NEW FISCAL YEAR IN JULY.

FORECAST ANTICIPATE STRONG TAX REVENUES, THE NEXT 2 YEARS AND LEAVING RECESSION NUMBERS BEHIND US AS WE BEAT THIS PANDEMIC.

THERE'S NO DOUBT THAT THIS LAST YEAR HAS LEFT MANY PEOPLE FACING FINANCIAL HARDSHIP.

AND TEMPORARILY ROBBED US OF THE WAY WE LIVED OUR LIVES.

BUT WITH THE RIGHT PRIORITIES.

WE CAN RECOVER THE EDUCATION AND ECONOMIC LOSSES.

AND LAY A STRONG FOUNDATION FOR OUR FUTURE.

NOW ONE INTRODUCED CHARLIE PERUSSE, WHO IS OUR DIRECTOR OF THE OFFICE OF STATE BUDGET AND MANAGEMENT.

HE'LL SHARE MORE DETAILS ABOUT THE BUDGET.

AND THEN HE AND I WILL BE AVAILABLE FOR QUESTIONS FROM THE MEDIA.

CHARLIE PERUSSE.

>> THANK YOU, GOVERNOR COOPER.

AND GOOD AFTERNOON, EVERYONE.

I'M PLEASED TO DISCUSS IN MORE DETAIL.

THE GOVERNOR'S MAJOR INVESTMENTS IN EDUCATION.

INFRASTRUCTURE AND HEALTHCARE IN ORDER TO HAVE A MORE EQUITABLE INCLUSIVE ECONOMY.

ALL START OUT WITH SOME CONTACTS AND PREVIEW WHAT WE WILL DISCUSS IN FURTHER DETAIL TODAY.

FIRST WE'LL TALK ABOUT STARTING FROM SOUND, FIRM FINANCIAL FOOTING, AS THE GOVERNOR MENTIONED.

AND THEN GO DIRECTLY INTO THE SUBSTANTIVE BUDGET RECOMMENDATIONS.

AND TALK ABOUT HOW THIS BUDGET IS STRUCTURALLY SOUND.

WE'LL SUMMARIZE THE MUST-DOs THAT ARE INCLUDED IN THIS BUDGET AS WELL AS GO INTO MORE DETAIL RELATED TO THE SUPPORT FOR NORTH CAROLINA'S HUMAN CAPITAL.

WELL THEN TALK ABOUT CRITICAL SUPPORT ACROSS THE LARGE STATE GOVERNMENT ENTERPRISES, INCLUDING EDUCATION, HEALTH AND HUMAN SERVICES, GENERAL GOVERNMENT JUSTICE AND PUBLIC SAFETY.

AGRICULTURE CLEAN ENERGY AND INFRASTRUCTURE AND RESILIENCY.

AS THE GOVERNOR MENTIONED WE ARE STARTING FROM A FIRM FINANCIAL FOOTING HERE IN NORTH CAROLINA.

WE IN ALL THE STATES HAVE HAD UNPRECEDENTED FEDERAL STIMULUS RELIEF OVER THE LAST YEAR WITH 3 LARGE FIT FEDERAL STIMULUS BILLS THAT IS THE PAST AND SIGNED THE MOST RECENT ONE THE AMERICAN RESCUE PLAN IS GOING TO PROVIDE OVER 5 BILLION DOLLARS TO STATE GOVERNMENT, AND 3 BILLION DOLLARS TO LOCAL GOVERNMENTS.

THE FEDERAL RESPONSE TO THIS.

THE PANDEMIC HAS BEEN UNPRECEDENTED.

IN ADDITION THE ECONOMIC AND REVENUE FORECASTS ARE MUCH IMPROVED SINCE MAY 2020.

AND FINALLY AS THE GOVERNOR MENTIONED WE'RE STARTING FROM A GOOD STARTING POINT THIS FISCAL YEAR AS WE HAVE NEARLY 5 BILLION DOLLARS OF UNRESERVED CASH IN THE GENERAL FUND.

LET'S TALK ABOUT INVESTMENTS AND SAVINGS CONTINGENCIES IN EMERGENCIES.

THE GOVERNOR'S BUDGET RECOMMENDS AN ADDITIONAL ONE 0.1 BILLION DOLLARS TO BE PUT IN THE SAVINGS RESERVE BANK RESERVE ACCOUNT OR BETTER KNOWN AS OUR RAINY DAY FUND.

>> THIS WOULD INCREASE THAT BALANCE BY 100% TO 2.2 BILLION DOLLARS.

IN ADDITION, IT INCLUDES 374 MILLION TO THE MEDICAID CONTINGENCY AND TRANSFORMATION RESERVES.

IT ALSO PROVIDES A 150 MILLION DOLLARS TO DEAL WITH THE RETIREE HEALTH CARE OPED LIABILITY.

AND A 100 MILLION DOLLARS FOR STATE EMERGENCIES.

LET'S TALK ABOUT THE MUST DUES FIRST THESE ARE ITEMS THAT ARE GENERALLY A MANDATORY IN NATURE.

THAT ARE FUNDED EACH AND EVERY YEAR.

THEY INCLUDE ABOUT 1.8 BILLION DOLLARS OVER THE NEXT 2 YEARS FOR EDUCATION ENROLLMENT.

THAT'S K 12 COMMUNITY COLLEGE UNIVERSITY AND PRIVATE COLLEGES AND UNIVERSITIES.

IN ADDITION IT FULLY FUNDS THE MEDICAID REBATES.

FUNDS FOR THE STATE HEALTH PLAN PREMIUMS.

AND RETIREMENT SYSTEM CONTRIBUTIONS TO KEEP THE RETIREMENT SYSTEM FINANCIALLY SOUND.

AS THE GOVERNOR MENTIONED I HE'S RECOMMENDING A VERY STRONG PACKAGE FOR EDUCATOR COMPENSATION.

THERE'S MANY PARTS TO IT AND IT TOTALS 2.4 BILLION DOLLARS OVER THE NEXT 2 YEARS.

FIRST INCLUDES A $2000 BONUS IN MAY 2021 SO PAID IN THIS FISCAL YEAR AND IN THIS SCHOOL YEAR.

AND THAT RECOGNIZES THAT EDUCATORS HAVE NOT RECEIVED ANY COMPENSATION INCREASES OVER THE LAST COUPLE YEARS.

SO THIS BONUS WOULD BE EFFECTIVE IMMEDIATELY.

IN ADDITION.

IT INCLUDES AN AVERAGE 10% RECURRING INCREASE FOR TEACHERS AND STATE AND PRINCIPLES OVER THE NEXT 2 YEARS THAT'S ABOUT A 5.7% INCREASE IN FISCAL YEAR '21-'22.

AND ANOTHER 4.3% INCREASE IN FISCAL YEAR '22-'23, OR AN AVERAGE OF 10%.

IN ADDITION, IT INCLUDES A 7.5 PERCENT TOTAL INCREASE FOR NON CERTIFIED PUBLIC SCHOOL EMPLOYEES OVER THE NEXT 2 YEARS.

5% IN '21-'22, AND ANOTHER 2.5 PERCENT IN FISCAL YEAR '22-'23 THAT SAME 7 AND A HALF UP PERCENT TOTAL INCREASES WOULD BE PROVIDED TO ALL UNC IN COMMUNITY COLLEGE EMPLOYEES.

AND THEN ON TOP OF THOSE RECURRING INCREASES THE GOVERNOR RECOMMENDS ALSO AN ADDITIONAL $1000 BONUS FOR ALL EDUCATION EMPLOYEES TO TO BE PAID IN OCTOBER 2021 AND OCTOBER 2022.

AND FINALLY IT ALSO RECOMMENDS ADDITIONAL FUNDS FOR A LIVING WAGE FOR NON-CERTIFIED EMPLOYEES IN THE PUBLIC SCHOOLS TO ENSURE THAT ALL OF THOSE EMPLOYEES ARE AT LEAST PAID $15 PER HOUR.

IN ADDITION.

THE GOVERNOR HAS US A STRONG PACKAGE FOR STATE EMPLOYEES AND RETIREES.

TOTALING 860 MILLION DOLLARS OVER THE BIENNIUM.

THIS INCLUDES A 5% RECURRING RAISE FOR STATE EMPLOYEES OVER THE NEXT 2 YEARS THAT'S 2 AND A HALF PERCENT.

THE FISCAL YEAR 2021 AND ANOTHER 2.5 PERCENT IN FISCAL YEAR '22-'23.

IN ADDITION, IT INCLUDES THAT SAME $1000 BONUS TO ALL STATE EMPLOYEES IN OCTOBER 2021 AND OCTOBER 2022.

IT ALSO INCLUDES MONEY FOR A PUBLIC SAFETY PAY PLAN.

IT ALSO INCLUDES TARGETED FUNDS FOR HARD TO RECRUIT AND RETAIN POSITION IN FOR AGENCIES THAT HAVE COMPRESSION ISSUES.

AND FINALLY AND ALSO VERY IMPORTANTLY, IT TAKES - IT INCLUDES MONEY FOR RETIREE RECURRING COLA OF 2%, AS WELL AS AN ADDITIONAL 2% RETIREE BONUS IN EACH FISCAL YEAR.

NOW WE'LL TRANSITION TO SOME OF THE SUBSTANTIVE EXPANSION RECOMMENDATIONS AND INVESTMENTS IN EDUCATION.

INCLUDES OVER A 100 MILLION DOLLARS IN ADDITIONAL FUNDS FOR EDUCATION OVER THE NEXT 2 YEARS.

SPECIFICALLY IT INCLUDES 305 MILLION DOLLARS OF ADDITIONAL RESOURCES FOR AT-RISK CHILDREN.

CHILDREN WITH DISABILITIES AND LING IT AND LIMITED ENGLISH PROFICIENCY STUDENTS.

IT ALSO INCLUDES A 120 MILLION DOLLARS TO HIRE.

ALMOST A 1000 ADDITIONAL COUNSELORS SOCIAL WORKERS PSYCHOLOGISTS AND NURSES FOR PUBLIC SCHOOLS.

IT INCLUDES 70 MILLION DOLLARS FOR THE NC GROW PROGRAM AND 95 MILLION DOLLARS IN FINANCIAL AID AND OTHER PROGRAMS TO MAKE HIGHER EDUCATION AFFORDABLE FOR STUDENTS.

AND THE HEALTH AND HUMAN SERVICES AREA INCLUDES AN ADDITIONAL 500 MILLION DOLLARS OVER THE NEXT 2 YEARS.

AS THE GOVERNOR MENTIONED IT OF RECOMMENDS EXPANDING MEDICAID.

IT ALSO INCLUDES 69 MILLION DOLLARS IN IMPROVEMENTS TO CHILD WELFARE SYSTEMS AND SERVICES.

AND 30 MILLION DOLLAR INCREASE FOR HOUSING EMPLOYMENT SUPPORT FOR PEOPLE WITH DISABILITIES.

ANOTHER HALLMARK AS THE GOVERNOR MENTIONED EARLIER WAS STRONG INVESTMENT IN EARLY EDUCATION INCLUDES ALMOST 140 MILLION DOLLARS AND IN A COMPREHENSIVE EARLY EDUCATION PACKAGE.

WHICH INCLUDES MORE MONEY IS FOR CHILD CARE SUBSIDIES.

AS WELL AS NORTH CAROLINA PRE K REIMBURSEMENT RATES AND ANOTHER 1500 SLOTS FOR PRE K ACROSS THE STATE.

ADDITIONAL MONEY FOR SMART START AS WELL AS EARLY INTERVENTION SERVICES.

FINALLY IN THIS AREA ALSO INCLUDES 90 MILLION DOLLARS TO IMPROVE WAGES FOR EARLY CHILDHOOD AND LONG-TERM CARE WORKFORCE.

IN THE GENERAL GOVERNMENT AREA IT INCLUDES A 138 MILLION DOLLARS OF ADDITIONAL FUNDS OVER THE NEXT 2 YEARS, INCLUDING 20 MILLION DOLLARS FOR AFFORDABLE HOUSING.

18 MILLION DOLLARS FOR ENHANCED ANALYTICS AND AUDIT CAPACITY ACROSS STATE GOVERNMENT.

41 MILLION DOLLARS FOR STATE AGENCY I T IMPROVEMENTS IN 19 MILLION DOLLARS FOR VETERANS AND MILITARY FAMILIES.

ALSO INCLUDES ALMOST 260 MILLION DOLLARS IN THE JUSTICE AND PUBLIC SAFETY AREA.

THIS INCLUDES 48 MILLION DOLLARS TO RECRUIT AND RETAIN CORRECTIONAL OFFICERS.

27 MILLION DOLLARS FOR ENHANCED SAFETY AND SECURITY EQUIPMENT.

43 MILLION DOLLARS TO HIRE ADDITIONAL COURT PERSONNEL STATEWIDE AS WELL AS.

ADDITIONAL FUNDS FOR PRIVATE ATTORNEYS IN INDIGENT DEFENSE SERVICES AND 10 MILLION DOLLARS FOR SEXUAL ASSAULT EVIDENCE TESTING.

AND AGRICULTURE NATURAL AND ECONOMIC RESOURCES AREA.

THE GOVERNOR RECOMMENDS A 191 MILLION DOLLARS IN ADDITIONAL MONIES OVER THE NEXT 2 YEARS, INCLUDING 80 MILLION DOLLARS FOR WATER RESOURCE DEVELOPMENT PROJECTS, 45 MILLION DOLLARS TO SUPPORT SMALL BUSINESSES IN AGRICULTURE.

26 MILLION DOLLARS TO SUPPORT LIBRARIES MUSEUMS AND LOCAL ARTS PROGRAMS IN ALMOST 8 MILLION DOLLARS IN THE DEPARTMENT OF ENVIRONMENTAL QUALITY TO MITIGATE EMERGENCE EMERGING COMPOUNDS.

GOVERNOR HAS A STRONG ENVIRONMENT IN CLEAN ENERGY PACKAGE AND THE ENVIRONMENT AREA INCLUDES 300 MILLION DOLLARS OVER THE BIENNIUM.

WHICH THE BIGGEST PART IS 210 MILLION DOLLARS OF CONSERVATION INVESTMENTS AND THE PARKS AND RECREATED PARKS AND RECREATION TRUST FUND AND THE LAND AND WATER FUND.

56 MILLION DOLLARS FOR FLOOD PLAIN BUYOUTS.

20 MILLION DOLLARS FOR TRAIL CONSTRUCTION AND PLANNING.

AND 10 MILLION DOLLARS FOR FARMLAND PRESERVATION.

IN THE CLEAN ENERGY AREA INCLUDES A 100 MILLION DOLLARS IN INVESTMENTS OVER THE BIENNIUM INCLUDING 50 MILLION DOLLARS AND CLEAN ENERGY GRANTS TO SCHOOLS AND LOCAL GOVERNMENTS.

15 MILLION DOLLARS TO RECRUIT CLEAN ENERGY JOBS.

AND 23 MILLION DOLLARS TO SUPPORT LOW INCOME HOUSEHOLDS TO REDUCE ENERGY COSTS.

FINALLY IN THE INFRASTRUCTURE AND RESILIENCY AREA.

THE GOVERNOR'S BUDGET.

INCLUDES CASH INVESTMENTS OVER THE NEXT 2 YEARS OF ONE 0.1 BILLION DOLLARS.

THIS INCLUDES A LITTLE OVER 600 MILLION DOLLARS FOR UNC SYSTEM CAMPUSES STATEWIDE.

324 MILLION DOLLARS IN STATE AGENCY CAPITAL RECOMMENDATIONS, 100 MILLION DOLLARS FOR ENERGY EFFICIENCY PROJECTS, AND A 106 MILLION DOLLARS TO PLAN AND DESIGN THE LARGE BOND PROJECTS THAT WILL GO INTO MORE DETAIL IN THE NEXT SLIDE.

AND FINALLY THE GOVERNOR'S BUDGET RECOMMENDS ALMOST 330 MILLION DOLLARS INVESTMENTS FOR LARGE INFORMATION TECHNOLOGY PROJECTS OVER THE NEXT 2 YEARS.

THE GOVERNOR MENTIONED THAT WE HAVE AN UNPRECEDENTED OPPORTUNITY TO TO TO PUT A BOND BEFORE THE VOTERS IN NOVEMBER 2021.

OUR DEBT CAPACITY IS CURRENTLY AT 4.6 BILLION DOLLARS OVER THE NEXT 10 YEARS AND WE HAVE HISTORICALLY LOW INTEREST RATES.

OUR MOST RECENT BOND SALE, WE GOT A ONE 0.4 8% INTEREST RATE WHICH IS FANTASTIC.

THE GOVERNOR RECOMMENDS 4.7 BILLION DOLLARS IN A GENERAL OBLIGATION BONDS ALMOST ABOUT 80% OF THAT BOND WOULD GO TO THE EDUCATION AREA, INCLUDING 2.5 BILLION FOR PUBLIC SCHOOLS.

ALMOST 800 MILLION DOLLARS FOR THE UNIVERSITY SYSTEM.

500 MILLION DOLLARS TO COMMUNITY COLLEGES STATEWIDE.

439 MILLION DOLLARS TO PARKS MUSEUMS AND ZOO.

ABOUT 430 MILLION DOLLARS TO HEALTH AND SAFETY PROJECTS AND THEN ABOUT 48 MILLION DOLLARS FOR CONTINGENCIES.

THE GOVERNOR'S BUDGET IN DETAIL IT IS AVAILABLE AT THE WEBSITE.

LISTED THERE ON THE SCREEN.

THE GOVERNOR AND I ARE AVAILABLE TO ANSWER QUESTIONS.

>> THANK YOU VERY MUCH CHARLIE.

[INAUDIBLE VOICE ON THE PHONE] >> [ON PHONE] DAWN VAUGHN OF THE NEWS AND OBSERVER.

>> HI, DAWN VAUGHN WITH THE NEWS AND OBSERVER.

YOU KNOW AS AS EVERYBODY KNOWS YOU KNOW THE 2 BIG ISSUES LAST TIME OR IN ADDITION TO TAXES FOR TEACHER RAISES A MOUNTAIN AND MEDICAID EXPANSION.

SO WEAR YOUR POINTS AS OF NEGOTIATIONS HERE AS SPRING AND SUMMER.

THAT YOU KNOW BUDGET BACK AND FORTH START FOR THE REPUBLICAN LEADERSHIP.

>> UNLIKE THE LAST BUDGET CYCLE WE HAD I'VE HAD NUMEROUS CONVERSATIONS WITH BOTH REPUBLICAN AND DEMOCRATIC LEADERSHIP.

AND ONE THING WE AGREED ON IS THAT FIRST THE PEOPLE OF NORTH CAROLINA ELECTED US AGAIN.

SO WE'RE BACK IN THE SAME SITUATION THAT WE WERE AND WE OWE IT TO THEM TO DO THE BEST THAT WE CAN TO FIND A PATH FORWARD.

AND WE'VE ALL AGREED THAT EVERYTHING IS ON THE TABLE.

EVERYTHING IS UP FOR NEGOTIATION.

I THINK YOU SAW SOME OF THE EARLY INDICATIONS WITH THE PUBLIC SCHOOL BILL THAT WE PASSED A COUPLE OF WEEKS AGO.

ON HOW WE CAN WORK TOGETHER THAT WAS A TEMPLATE OF ME WORKING WITH REPUBLICAN LEADERSHIP AND DEMOCRATIC LEADERSHIP TO TRY TO CRAFT LEGISLATION THAT EVERYBODY COULD BEFORE.

WE KNOW A BUDGET WILL BE MUCH MORE COMPLICATED.

BUT AT THE END OF THE DAY THEY WILL BE.

HOPEFULLY A LOT OF THINGS THAT I WANT IN THIS BUDGET SOME THINGS THAT I DON'T.

HOPEFULLY WE CAN FIND AN AGREEMENT THAT MOVES US FORWARD.

AND AS I MENTIONED EARLIER WITH MEDICAID EXPANSION WE ARE REALLY IN A DIFFERENT PLACE.

THIS YEAR THAN WE WERE DURING THE LAST BUDGET FIGHT BECAUSE OF THE PANDEMIC BECAUSE OF THE SIGNIFICANT ADDITIONAL FEDERAL MONEY AND BECAUSE OF THE MEDICAID MANAGED CARE TRANSFORMATION THAT IS HAPPENING THAT.

THE LEGISLATIVE LEADERSHIP WANTED TO TRY TO GET A BETTER REIGN ON TAX DOLLARS.

ALL THAT'S DIFFERENT.

AND SO I LOOK FORWARD TO NEGOTIATIONS.

WE DO DIFFER ON WHERE WE ARE IN TAXES.

WE DIFFER PROBABLY ON LEVEL OF EDUCATION INVESTMENT, ALTHOUGH I DO NOT KNOW I'VE NOT SEEN WHAT REPUBLICANS HAVE PROPOSED IN THEIR BUDGET.

BUT I LOOK FORWARD TO THESE DISCUSSIONS WE HAVE A LOT TO WORK WITH.

WE'VE GOT THE AMERICAN RESCUE PLAN FUNDS THAT ARE COMING IN.

SO IT'S EXCITING TO SEE WHAT WE CAN DO AND I LOOK FORWARD TO THAT PROCESS.

NEXT QUESTION PLEASE.

>> WE HAVE A FOLLOW-UP, DAWN VAUGHN, NEWS AND OBSERVER.

>> HI THANKS FOR THE FOLLOW-UP WAS MAKING MENTION THAT YOU SEE THAT AS AN ISSUE THAT COMMUNITY GO SHEENA OUTSIDE OF THE BUDGET PROCESS AND THEN WITH THE RAISES CAN YOU EXPLAIN THE THE DIFFERENT AMOUNTS OR TEACHERS OR 10% VERSUS YOU KNOW SOME STATE EMPLOYEES 5%.

>> MEDICAID EXPANSION CAN BE DISCUSSED AND DEBATED AT ANY POINT DURING THE SESSION.

I KNOW WE'VE TALKED ABOUT A NUMBER OF OTHER HEALTH CARE ISSUES THAT COULD BE IN THAT IT COULD BE AS PART OF THE BUDGET.

IT IT CAN BE DISCUSSED ANYWHERE SO WE CERTAINLY NOT CONFINING THE DISCUSSION OF MEDICAID EXPANSION IN THE BUDGET.

THE RAISES I THINK ARE IMPORTANT.

DIRECTOR PERUSSE LAID OUT FOR YOU THE FACT THAT, FOR THE MOST PART, OUR EDUCATORS DID NOT GET PAY RAISES DURING THE LAST BUDGET BECAUSE OF THE DISAGREEMENT THAT WE HAD.

THAT MEANS OR TEACHERS AND PRINCIPALS, OUR NON-CERTIFIED PUBLIC SCHOOL STAFF OUR COMMUNITY COLLEGE.

WORKERS IN OUR UNIVERSITY WORKERS.

THIS BUDGET KNOWLEDGE IS THAT PROVIDES FOR A ABOUT A 10%.

PAY RAISE FOR TEACHERS AND PRINCIPALS OVER THE NEXT 2 YEARS AND A 7 AND A HALF PERCENT PAY RAISE FOR THE NON-CERTIFIED PERSONNEL COMMUNITY COLLEGES AND UNIVERSITIES AND THERE ARE ALSO 3 ONE TIME BONUSES FOR ALL OF THOSE EDUCATORS AS WELL.

OUR STATE EMPLOYEES DID GET A 5% PAY RAISE IN THE LAST BUDGET AND THEY WILL GET A 5% PAY RAISE IN THIS BUDGET FROM WHAT WE HAVE PROPOSED.

IN ADDITION TO ONE TIME BONUSES IN EACH OF THE FISCAL YEARS.

SO THIS IS A STRONG PAY PACKAGE IT KNOWLEDGE IS THAT OUR TAX REVENUE OR HIS UP THAT OUR ECONOMY LOOKS BRIGHT AS WE COME OUT OF THIS PANDEMIC WE HAVE TO INVEST IN OUR HUMAN CAPITAL.

OUR PEOPLE PARTICULARLY OUR EDUCATORS.

AND WE HOPE THAT WE CAN LOOK AT UP A PLAN LIKE THIS.

AS WE ARE NEGOTIATING THIS BUDGET.

NEXT QUESTION PLEASE.

>> OUR NEXT QUESTION IS FROM MICHAEL HYLAND WITH CBS 17.

>> HI, THIS IS MICHAEL HYLAND FROM CBS 17.

YOU ALL POINTED OUT THAT THE BUDGET DOES NOT RAISE TAXES ARE NOT OPEN TO CUTTING TAXES AT ALL THERE'S A BILL FILED THIS WEEK.

IN THE SENATE TO CUT INCOME TAXES ON CORPORATE FRANCHISE TAXES AS WELL IS THAT SOMETHING YOU THINK COULD BE DONE AND STILL ACCOMPLISH WHAT IT IS YOU SET OUT HERE THE BUDGET FOR SOMETHING.

>> WELL MY BUDGET PROPOSES TAX CUTS AND OBVIOUSLY THE LEADERSHIP IN THE LEGISLATURE HAS ALSO PROPOSED TAX CUTS THEY'RE DIFFERENT KINDS.

MY TAX CUTS HELP PEOPLE WHO ARE IN LOWER INCOME BRACKETS AND MIDDLE INCOME BRACKETS PEOPLE WHO HAVE CHILDREN WHO HAVE DEPENDENT PARENTS AND GRANDPARENTS THAT THEY'RE LOOKING AFTER THE EARNED INCOME TAX CREDITS HELPS PEOPLE ON THE MARGINS SO WE DO PROPOSED THOSE TAX CUTS IN MY BUDGET.

WHAT I'VE HEARD FROM THE LEGISLATURE.

SO FAR IS AN ACROSS THE BOARD INCOME TAX CUT WHICH YOU KNOW I I HAVE CONCERNS WITH BECAUSE I THINK IT MOSTLY BENEFITS, THE WEALTHY THEY PROPOSED.

AN INCREASE IN THE STANDARD DEDUCTION WHICH I LIKE BETTER BECAUSE THAT HELPS MORE MIDDLE INCOME PEOPLE.

AND OF COURSE SAFE PROPOSED THEIR CORPORATE TAX CUTS.

WITH STRONG REVENUES I THINK WE CAN FIND SOME AREAS OF NEGOTIATIONS IN IN CUTTING TAXES FOR PEOPLE.

WE WOULD RATHER SEE HELP PEOPLE WHO ARE ON THE MARGINS IN THE MIDDLE CLASS.

WHEN WE THINK ABOUT THE FACT THAT WE WANT INVESTMENTS IN EDUCATION, THAT WE WANT PEOPLE COVERED WITH HEALTH CARE COVERAGE.

ALL OF THAT IS GOING TO BE NEGOTIATED AND I LOOK FORWARD TO THOSE DISCUSSIONS.

NEXT QUESTION PLEASE.

>> OUR NEXT QUESTION IS FROM GARY ROBERTSON WITH THE ASSOCIATED PRESS.

>> GOVERNOR I WANT TO TALK ABOUT THE THE BOND PACKAGE WHAT ARE YOUR THOUGHTS GIVEN THE FACT THAT IN THE PAST THE SENATE HAS BEEN MORE APT TO SEEK - TO PAY FOR PROJECTS WITH CASH, WITH THE PAY GO PLAN.

AND WHY I KNOW THAT YOU THINK THAT BORROWING IS A GOOD ISN'T IT.

GOOD TIME RIGHT NOW BECAUSE OF LOW RATES, BUT IT STILL DOESN'T GET OVER YOUR DIFFERENCE IN PHILOSOPHY ABOUT WHETHER YOU SHOULD PAY NOW OR PAY LATER FOR THIS CONSTRUCTION.

>> THANKS FOR THAT QUESTION THE GOOD THING IS I THINK WE'VE ALL AGREED THAT EVERYTHING IS ON THE TABLE SO I THINK SENATOR BERGER HAS LEFT THAT ISSUE OPEN FOR DISCUSSION.

THE SPEAKER OF THE HOUSE HAS BEEN IN FAVOR OF A BOND PROPOSAL.

HERE'S THE GOOD THING WE CAN WE CAN HAVE BOTH HERE.

BECAUSE NORTH CAROLINA HAS BUILT UP CASH RESERVES.

WE CAN MAKE DOWN PAYMENTS ON THE FIRST COUPLE OF YEARS OF CONSTRUCTION PROJECTS ACROSS OUR STATE.

THEY CAN'T SPEND MONEY PASSED THE 2 YEARS SO YOU REALLY CAN'T PUT ALL OF THE MONEY IN A PROJECT FOR 1, 2, YEAR PERIOD BECAUSE THEY CAN'T DO IT FOR THAT LONG, BUT THE GOOD THING IS WE PROVIDED THAT MONEY AND AGREE THAT WE OUGHT TO PAY THAT MONEY UP FRONT.

BUT THE BEST LONG-TERM WAY TO SECURE THESE PROJECTS.

IF YOU GET A BOND PASSED.

THEN YOU KNOW THOSE PROJECTS ARE GOING TO BE FUNDED AND YOU DON'T HAVE TO DEPEND ON FUTURE LEGISLATURES TO FINISH THE JOB BECAUSE THE FUTURE LEGISLATURE MAY CHANGE YOUR MIND.

WHEN YOU LOOK AT THE FACT THAT WE PASS ROAD BONDS A FEW MONTHS AGO.

1.4 8% INTEREST RATE.

YOU JUST NOT GOING TO BEAT THAT FOR AN INTEREST RATE.

WE'RE AT A TIME WITH THE ECONOMY NEEDS INVESTMENT IN THE CONSTRUCTION JOBS.

SO TO GUARANTEE ALL OF THESE PROJECTS TO GET INTEREST RATES LOWER THAN EVER.

AND TO HELP TO INVEST IN THE ECONOMY.

AND PARTICULARLY NOW THAT WE'VE ROLLED OFF A LOT OF THE STATE DEBT.

THIS IS A REALLY SMART WAY TO MOVE FORWARD AND I LOOK FORWARD TO THE CONTINUED DISCUSSIONS ABOUT IT I THINK WE ALL AGREE THAT WE NEED TO HELP BUILD PUBLIC SCHOOLS.

WE'RE ASKING FOR 2.5 BILLION TO HELP BUILD OUR PUBLIC SCHOOLS.

BUT REALIZE WE HAVE AN 8 BILLION DOLLAR PROBLEM.

AND A LOT OF COUNTIES JUST CANNOT AFFORD TO DO IT, PARTICULARLY THE RURAL COUNTIES AND MANY OF THE LEGISLATIVE LEADERSHIP REPRESENT RURAL COUNTIES AND THIS WILL HELP THEM.

NEXT QUESTION PLEASE.

>> OUR FINAL QUESTION FOR THE GOVERNOR WILL BE FROM LAURA LESLIE WITH WRAL.

DIRECTOR CHARLIE PERUSSE WILL BE AVAILABLE FOR QUESTIONS AFTER.

>> HI GOVERNOR.

LAURA LESLIE, FROM WRAL.

THANKS FOR TAKING MY QUESTION.

I WAS CURIOUS ABOUT THE INVESTMENT IN THE BOND PACKAGE FOR HEALTH AND SAFETY IMPROVEMENTS TO STATE GOVERNMENT BUILDINGS AND PARKS AND OTHER FACILITIES UP A LITTLE BIT ABOUT WHAT THIS MIGHT LOOK LIKE AND USE THAT PANDEMIC RELATED OR IS THAT A.D.A.?

WHAT ARE THE NEEDS?

>> SO I'M GONNA LET.

CHARLIE ANSWER THAT QUESTION BECAUSE THERE ARE A NUMBER OF SPECIFIC BUILDINGS THAT THAT WE WANT TO INVEST AND THAT THE STATE IS RESPONSIBLE FOR IN MENTAL HEALTH AND OTHER AREAS DO YOU HAVE A FOLLOW-UP.

LAURA, I'LL LET CHARLIE ANSWER THAT.

WELL I'M GOING TO STEP OUT OF THE CHARLIE ANSWER THAT QUESTION.

I WOULD RECOGNIZE THAT MONICA MCGEE AND BRYAN TIPTIN, OUR SIGN LANGUAGE INTERPRETERS.

AND WE HAVE JACKIE AND JASMINE METIVIER, OUR SPANISH LANGUAGE INTERPRETERS.

AND THANK YOU ALL FOR BEING WITH ME TODAY.

AND CHARLIE WILL ANSWER MORE SPECIFIC QUESTIONS ABOUT BUDGET.

THANKS A LOT.

>> THANK YOU, GOVERNOR.

TO GET BACK TO YOUR QUESTION, LAURA.

THE HEALTH AND SAFETY PROJECTS THAT ARE INCLUDED IN THE BOND RECOMMENDATION INCLUDE MONIES FOR SUBSTANTIAL RENOVATIONS AT MENTAL HEALTH FACILITIES AND ALCOHOL AND DRUG TREATMENT CENTERS ACROSS THE STATE.

IN ADDITION, THE PIECES AROUND THE CULTURAL RECOMMENDATIONS THAT 400 OR SO MILLION DOLLARS IN THE BONN.

ARE VERY MUCH EDUCATION RELATED THEIR SUBSTANCE RENOVATIONS AT THE MUSEUM OF HISTORY.

THE ZOO AND THE MUSEUM OF ART AND THE MUSEUM OF HISTORY AND THE ZOO.

YOU KNOW OBVIOUSLY HAS A PUBLIC SCHOOL STUDENTS VISITING THEM, SORT OF, THROUGHOUT THE YEAR.

AND SO THOSE WITH THE INVESTMENT INVESTMENTS IN THE BOND IN THAT AREA.

>> OUR NEXT QUESTION IS FROM JONAH KAPLAN WITH ABC 11.

>> GOOD AFTERNOON.

THIS IS JONAH KAPLAN WITH ABC 11.

I'M CURIOUS ABOUT THE TIMING OF THE BOND PROPOSAL, EVEN WITH THE CENSUS AND DELAYS.

IT'S POTENTIAL THAT SOME MUNICIPALITIES WON'T EVEN HOLD ELECTIONS THIS FALL.

AND THERE'S NO STATEWIDE RACE ON THE BALLOT THIS FALL.

SO WHY THE URGENCY TO GET THIS ON THE BALLOT AS SOON AS POSSIBLE?

AND IS IT REALLY REALISTIC TO HAVE IT DONE AND GET VOTER SUPPORT?

>> YES SIR.

AND THIS GETS AT A LITTLE BIT AT GARY'S QUESTION EARLIER.

THE APPROACH THAT THE GOVERNOR'S BUDGET TAKES IS A HYBRID ONE.

HE DOES RECOMMEND 1.1 BILLION DOLLARS IN CASH FOR INFRASTRUCTURE AND RESILIENCY.

ESSENTIALLY ANY CAPITAL PROJECT THAT WAS UNDER 15 MILLION DOLLARS THAT WAS REQUESTED FROM THE UNIVERSITIES OUR STATE AGENCIES, WOULD BE CASH FUNDED.

BECAUSE 15 MILLION DOLLAR PROJECTS TEND TO HAVE ABOUT IT TO YOUR LIFE ANYTHING OVER 15 MILLION DOLLARS TO GOVERNOR RECOMMENDS THAT THOSE LARGER PROJECTS WHICH MIGHT SPANNED 3 TO 5 YEARS BE FUNDED WITH A BLEND OF CASH AND BOND TO PROVIDE THAT CERTAINTY.

AND SO THAT WAS, SORT OF, THE APPROACH HE TOOK, IS IMMEDIATE AND SMALL CASH, LONGER TERM FOR CERTAINTY - BOND.

IN ADDITION, TO GET AT YOUR NOVEMBER 2021 TIME FRAME, YOU KNOW, WE TOOK THAT INTO CONSIDERATION UNDERSTANDING THAT THERE ARE NO STATEWIDE RACES.

WE DID INCLUDE MONEY IN THE GOVERNOR'S BUDGET I THINK CLOSE TO 15 MILLION DOLLARS OR SO TO PAY FOR THE COSTS TO TO TO PROVIDE THE INFORMATION THAT WOULD BE ASSOCIATED WITH PUTTING THAT BOND ON THE BALLOT.

IN NOVEMBER.

THAT HAS BEEN DONE IN THE PAST AND IT'S IT'S AN OPERATIONAL COSTS THAT WE INCLUDED IN THE GOVERNOR'S BUDGET.

>> WE HAVE A FOLLOW-UP JONAH KAPLAN ABC 11.

>> YOU HAVE MY NEXT QUESTION REALLY LIKE IT WAS ABOUT LEVERAGE BECAUSE FOR BETTER OR WORSE NORTH CAROLINA THERE'S NO GOVERNMENT SHUTDOWN IF THERE'S NO AGREEMENT ON A BUDGET COMPROMISE.

THE 2020 ELECTION WAS ENOUGH TO PUSH THE 2 SIDES TOGETHER.

WHERE DOES GOVERNOR COOPER THINK HE'LL BE ABLE TO GET THE LEVERAGE AND BE ABLE TO ACTUALLY GET THE SENSE OF URGENCY TO GET A COMPROMISE DONE THIS YEAR EVEN THOUGH HE HASN'T IN HIS FIRST TERM.

>> YOU KNOW I THINK THE GOVERNOR YOU KNOW DID A GREAT JOB ANSWERING THAT QUESTION YOU KNOW WHAT I WOULD ADD TO IT IS YOU KNOW AS WE'VE STARTED THIS LONG SESSION WE'VE DEFINITELY SEEN A DIFFERENT TIME.

AND OUR CONVERSATION WITH MEMBERS OF THE GENERAL ASSEMBLY.

AS THE GOVERNOR MENTIONED WE'RE LOOKING FORWARD TO BUILDING ON THE MOMENTUM OF THE AGREEMENT THAT HE REACHED WITH LEGISLATIVE LEADERS ON THE SCHOOL OPENING BILL.

I KNOW FROM MY STANDPOINT I'VE BEEN HAVING CONSTANT BRIEFINGS WITH THE SENIOR APPROPRIATIONS CHAIRS IN BOTH THE HOUSE AND THE SENATE AS WELL AS THE SPEAKER IN THE PRO TEM STAFF.

SO THERE'S A LOT MORE CONVERSATIONS GOING ON RIGHT NOW.

THEN THERE HAS BEEN IN PAST YEARS.

WE ALL UNDERSTAND THAT THIS IS A PROCESS YOU KNOW AND WE START THAT PROCESS OFF BY PRESENTING THE GOVERNOR'S BUDGET.

AND LOOK FORWARD TO WORKING TOGETHER OVER THE NEXT FEW YEARS TO PASS A COMPREHENSIVE BUDGET THAT HELPS OR NORTH CAROLINIANS.

>> OUR NEXT QUESTION IS FROM COTTON CAMPBELL'S MARCH ON INSIDER.

I WANT TO ASK ABOUT THE FUNDING THAT AND THEREFORE I THINK THERE ARE BUILDING SECURITY UPGRADES TO SEE IT TYPICALLY SINGLES OUT THE DEPARTMENT OF REVENUE HEADQUARTERS IN THE SUPREME COURT BUILDING.

WAS CURIOUS WHY THIS BUILDING WAS SELECTED AND THE NEED FOR THIS, STEMS IT ALL FROM SOME OF THE EVENTS WE'VE SEEN IN WASHINGTON DC AND IN TURN RALEIGH LAST YEAR.

>> IT DID YES, SIR AND YOU KNOW WE ALL UNDERSTAND THAT THE EVENTS OVER THE PAST YEAR AND ESPECIALLY JANUARY 6.

YOU KNOW THAT.

SO TO MAKE US ALL TAKE A STEP BACK AND SAY WHAT DO WE NEED TO DO TO ENSURE THE SAFETY OF OUR BUILDINGS AND THE PEOPLE WHO WORK IN THOSE BUILDINGS.

WE HAD SPECIFIC RECOMMENDATIONS FROM THE DEPARTMENT OF REVENUE IN THE COURT SYSTEM TO SHORE UP SOME AREAS AROUND THOSE BUILDINGS.

WE ALSO PUT SOME GENERAL MONEY FOR ADDITIONAL SECURITY CAMERAS AND OTHER THINGS FOR THE DOWNTOWN COMPLEX AND SO AS A WHOLE SO YOU KNOW WE TRIED TO LOOK AT A COMPREHENSIVE VIEW TO TO UNDERSTAND HOW WE CAN SECURE OUR BUILDINGS IN THAT RECOMMENDATION DOES THAT.

>> AND A FINAL QUESTION TODAY IS FROM ROSE HOBAN WITH NORTH CAROLINA HEALTH NEWS.

>> HI, CHARLIE.

IT'S ROSE HOGAN WITH NC HEALTH NEWS.

I WAS WONDERING ABOUT YOU KNOW IN DIFFERENT NUMBERS ON THE MEDICAID EXPANSION.

BENEFIT TO THE STATE.

I UNDERSTAND IT WOULD BE ABOUT 1.7 BILLION.

FROM THE FED.

AND IT WOULD COST NORTH CAROLINA, I'VE HEARD, ANYWHERE FROM BETWEEN 450 AND 600 MILLION TO ADMINISTER.

I'M WONDERING IF YOU HAVE A BETTER BEAT ON THAT.

AND ALSO, IF YOU HAVE ANY THOUGHTS ABOUT IT WAY TO YOU KNOW RAISE REVENUE TO PAY FOR SOME OF THAT ARE THERE.

HOSPITALS THAT PLAN FOR IN A MAN ON INSURANCE COMPANIES HE SPOKE TO THOUGHT ABOUT.

>> ROSE, THANK YOU FOR YOUR QUESTION.

AND THE GOVERNOR MENTIONED THAT THE FEDERAL GOVERNMENT HAS PROVIDED A GREAT INCENTIVE FOR THE NON MEDICAID EXPANSION STATES TO EXPAND GOING FORWARD.

AND THE AMERICAN RESCUE PLAN.

THAT INCENTIVE WOULD PROVIDE ABOUT 1.7 BILLION DOLLARS IN ADDITIONAL FEDERAL MONIES TO NORTH CAROLINA OVER THE NEXT 2 YEARS IF WE CHOOSE TO EXPAND.

LET'S PUT THAT 1.7 BILLION DOLLARS INTO CONTEXT.

THE NON-FEDERAL SHARE.

TO EXPAND MEDICAID TO COVER 600,000 ADDITIONAL NORTH CAROLINIANS TO PROVIDE THEM WITH HEALTH CARE.

COST ABOUT 350 TO 400 MILLION DOLLARS A YEAR AS IT RAMPS UP.

AND SO WITH THAT 1.7 BILLION DOLLARS OF ADDITIONAL MONEY WE COULD COVER THAT NON-FEDERAL SHARE FOR 4 TO 5 YEARS WITHOUT HAVING TO YOU KNOW TALK ABOUT HOSPITAL ASSESSMENTS OR ANY OTHER FUNDS FROM FROM THE STATE TO ME THAT NON-FEDERAL SHARE REQUIREMENT AND SO.

THIS IS A VERY GOOD INSIDE OF THAT THE FEDS ARE PROVIDING US.

IT WOULD COVER THE NON-FEDERAL SHARE FOR THE NEXT 4 OR 5 YEARS AND THERE'S NO BETTER TIME THAN THE PRESENT TO EXPAND MEDICAID.

THANK YOU FOR YOUR QUESTIONS THIS AFTERNOON.

THANK YOU FOR JOINING US HOPE EVERYONE HAS A GREAT DAY.