A BILL TO BE ENTITLED
AN ACT to phase out the county share of the cost of the state‑county special assistance program in certain counties conditioned upon the county maintaining LOCAL funding levels for public school STUDENTS.
The General Assembly of North Carolina enacts:
SECTION 1.  Effective July 1, 2006, a qualifying county shall have its county share of the nonfederal costs of Medicaid services paid to adult care homes under the State‑County Special Assistance Program reduced by ten percent (10%) in each fiscal year that the county maintains or exceeds its per‑student expense appropriation from the immediately preceding fiscal year until the county share reaches zero percent (0%) for the qualifying county, at which time the State will pay one hundred percent (100%) of the nonfederal costs for that county for each fiscal year in which the county is a qualifying county and has met the requirements of this section. As used in this section, a qualifying county is a county in which:
(1)	The county share on July 1 of the fiscal year exceeds one percent (1%) of county expenditures for that fiscal year, and
(2)	County expenditures of county funds for the fiscal year do not exceed one hundred million dollars ($100,000,000).
If a qualifying county fails to maintain its per‑student expense appropriation for the current fiscal year, then the ten percent (10%) reduction in county share shall be reduced by the percentage of the reduction in per‑student expense appropriation for that fiscal year. In the event a qualifying county that has attained zero percent (0%) county share fails to maintain its per‑student expense appropriation for the current fiscal year, the qualifying county's county share shall be increased by ten percent (10%) in each fiscal year that the per-student expense appropriation is not maintained, but shall not be higher than the county share applicable to all nonqualifying counties for that fiscal year. If a county loses its status as a qualifying county, the county share for that county shall revert to the full county share applicable to all nonqualifying counties for that fiscal year.
SECTION 2.  This act is effective when it becomes law.