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North Carolina Government Finance News
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Thank You For Your Input, A Message from President Zachary Hewett
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Thank you to everyone who participated in our recent NCGFOA Conference Schedule and Structure Survey. More than 200 members shared their perspectives, providing the Board with valuable insight into what you value about our conferences, the challenges that affect attendance, and what you would like to see from NCGFOA in the future. Your feedback matters, and we are listening. The Board will review and discuss the survey results in detail at our August 28 meeting. While there is much to consider, several key messages stand out: - Members are highly satisfied with the NCGFOA conference experience. Overall, 89% of respondents are satisfied with their conference experience, and 76.1% are satisfied with the current conference frequency.
- There is not an overwhelming consensus for changing the number of conferences. When asked directly, 39.2% favor keeping three conferences, 28.2% favor fewer, and 32.5% have no preference. Among those who expressed a preference either way, 58.2% favor keeping three.
- Members don't necessarily expect to attend every conference. In a typical year, 34.0% expect to attend one conference, 36.4% expect two, and 16.3% expect all three. The primary barriers to attending more often are conference timing, time away from the office, and travel or location.
- If NCGFOA were to offer fewer conferences, two per year is the preferred alternative. Just over half selected two conferences when asked what structure would best meet their needs if fewer conferences were offered. Importantly, this was a conditional question intended to identify the preferred alternative—not whether NCGFOA should reduce the number of conferences.
- Members are also interested in additional educational opportunities. More than three-quarters (77.5%) said periodic virtual education would add value to their membership, with interest also expressed in regional meetings and shorter virtual training opportunities. At the same time, many comments emphasized the importance of statewide conferences for networking and relationship-building.
- Members were clear about what NCGFOA should continue delivering regardless of structure: quality professional development and CPE, practical educational content, networking opportunities, and access to expertise.
The bottom line: The survey reflects a membership that is highly satisfied with its current conference experience while also interested in additional opportunities to learn and engage. It also reinforces that scheduling, workload, and travel remain real challenges for many members. The Board's job now is to consider the survey as a whole and determine how we can build on what members value while continuing to make NCGFOA accessible and valuable to our entire membership. On behalf of the Board, thank you for speaking up and helping shape the future of YOUR Association. With appreciation for your engagement and commitment to NCGFOA, Zachary Hewett President, NCGFOA
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Potential Reductions in Sales Tax Revenue for North Carolina Local Governments
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The NCACC shared a fact sheet describing the impact of reductions in sales tax revenue from recent federal and state legislation. Several changes have been made to how the costs of the Food and Nutrition Services (FNS), or SNAP, program are shared among the federal, state, and local governments. The federal House Resolution 1 (H.R. 1) reduced the federal share of administrative costs from 50% to 25%, increasing the state share from 50% to 75%. The North Carolina General Assembly has shifted this additional 25% administrative cost to counties, rather than cover the increase with state funds.
H.R. 1 also implemented penalties for states with a Payment Error Rate (PER) above a set benchmark of 6%, requiring counties to cover 5% to 15% of all benefit costs administered through their SNAP programs. In response to this new penalty, the General Assembly included a provision in the recently enacted state budget to withhold local sales tax revenue to cover the state’s PER penalty, further increasing the financial impact on counties. The fact sheet shows the estimated annual costs to each county from these changes. It also shows the equivalent property tax increase, in cents, that counties would need to generate enough revenue to cover these additional costs.
The NCLM August Legislative Bulletin discusses how municipalities would be impacted by the SNAP Error Rate Penalty: A provision made public for the first time in the recently-passed state budget (Sec. 9J.14, pg. 304) would require cities to pay part of the state’s Supplemental Nutrition Assistance Program (SNAP) benefit costs, if counties have a high error rate. Cities in North Carolina do not have any involvement or authority over the SNAP program, which is a federal food assistance program administered by North Carolina counties. However, with this budget provision, state legislators pulled cities into a new funding regime imposed by Congress under the 2025 One Big Beautiful Bill Act. Specifically, Congress directed states to pay a portion of their SNAP benefit costs when that state’s error rate exceeded certain thresholds. The General Assembly, in turn, passed on the responsibility for paying North Carolina’s share down to counties and cities via the recent state budget provision. North Carolina is the only state that would require local governments to pay this share of SNAP program costs, according to this WFMY report. How it will work is that if the state’s error rate threshold is reached, the dollars to pay back a portion of the program costs to the federal government will come from local sales tax dollars, recouped prior to distribution to counties (and therefore cities). NCLM staff confirmed this interpretation of the law with NC Department of Revenue and General Assembly staff. If the new budget provision had been in place in FY 24-25, the most recent year for SNAP payment error data, NCLM staff estimate that cities statewide would have lost $51.5 million in sales tax revenue; the total city and county estimate would have been over $140 million. Legislators did not include League-suggested language to remove cities from this new law in budget corrections bills considered this week. This requirement would not begin to withhold cities’ sales taxes until next fall, after the October 1, 2027 effective date. In the meantime, state legislators could act to rewrite this portion of state law. Or, Congress could reverse the repayment provisions, a request being pushed by national groups such as the National League of Cities and National Association of County Commissioners. Without further congressional action or significant SNAP payment improvements at the county level, it is predicted that North Carolina and forty other states will exceed the repayment threshold next year.
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Opioid Settlement Annual Reporting Due in September
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Annual Financial Reporting on Opioid Settlement Funds is due in late September. Learn more at the NCACC.org Opioid Settlement Assistance website and the Community Opioid Resources Engine website.
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Changes to the Local Government Commission and Fee Update Requirements
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House Bill 268 was signed into law August 11 to make technical corrections and adjustments to the state budget. Section 1.7 modifies the Local Government Commission appointment process, removing the secretary of state from the LGC and requiring the single appointments by the governor and treasurer both be confirmed by the General Assembly. Also signed into law, Senate Bill 445, Section 49 requires local governments that amend fee schedules to post the new fees on their websites within 30 days of the change. It also legislates new requirements about development fee estimates. Learn more about House Bill 268 and Senate Bill 445 at the August 14, 2026 NCACC Weekly update here.
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Disaster Recovery and Management Tools All in One Place
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A coalition of organizations committed to the success of North Carolina local governments has created a centralized online resource at ncrecoveryportal.com. The site brings together recovery information in one reliable location, including a calendar of key deadlines and training opportunities, current funding opportunities, and a wide range of resources such as the Index of Select Emergency Management Resources. These resources are also available through the Governmental Tool Kit at ncgfoa.org/resources. While some materials were developed to support recovery efforts following Hurricane Helene, many of the resources are applicable to preparing for and recovering from any natural disaster or emergency.
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UNC School of Government Scholarships
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Members of Civic Federal Credit Union (Civic), who are planning to take courses through the UNC School of Government, are eligible to apply for a scholarship. Funds can be used to help cover the cost of tuition for conference, classes and seminars offered by the UNC School of Government.
Application Deadlines The Scholarship Selection Committee reviews applications based on the course start date. Scholarship application deadlines and portal open/close dates are shown below:
March 1 Deadline (courses starting between April 1 and June 30) Application portal opens January 1 and closes March 1 June 1 Deadline (courses starting between July 1 and September 30) Application portal opens April 1 and closes June 1 July 15 Deadline* (Municipal and County Administration applications only) Application portal opens on June 1 and closes on July 15 September 1 Deadline (courses starting between October 1 and December 31) Application portal opens on July 1 and closes on September 1 December 1 Deadline (courses starting between January 1 and March 31) Application portal opens on October 1 and closes on December 1
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Did You Know?
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Pursuant to North Carolina General Statute 159-24, all local governments and public authorities must, at all times, have a finance officer appointed by the local government, public authority, or designated official. In order to ensure that the records of the LGC are up to date and to ensure finance officers receive important notices and updates from LGC staff, the State Treasurer's office asks that all units to keep staff informed of any changes to their finance officer or finance officer's contact information using a form here: https://lgcportal.nctreasurer.com/other/finance-officer-update/
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Beyond the Balance Sheet: Mark Your Calendar
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Finance Calendar of Duties: https://www.sog.unc.edu/sites/default/files/reports/LFB_70%20FinanceCalendar-tagged.pdf
NCGFOA EVENTS:
September 24 - 25, 2026 NC CLGFO Examinations: www.sog.unc.edu/courses/finance-officer-certification-exams
November 17 - 19, 2026 NCGFOA Fall Conference, Asheville, NC. Registration will open mid- September.
March 10 - 12, 2027 NCGFOA Spring Conference, Winston-Salem, NC
June 5, 2027 NCGFOA Reception at Fulton Alley, 600 Fulton Street, New Orleans, Louisiana Saturday June 5, 2027 prior to GFOA National Conference beginning Sunday June 6, 2027 Registration will open in 2027, thanks to Sponsors NCCMT, NCCLASS and NCIP
****************************************************************************************** OTHER EVENTS to support your professional development: Classes beginning in August NCLM Advancing Municipal Leaders (AML), Learn more about this program and register at nclm.org/amlAugust 31, 2026 Introduction to Local Government Finance, Chapel Hill and online, sog.unc.edu August 31 - September 2, 2026 Evaluating Internal Controls, Online, gfoa.org September 1 - 3 Fundamentals of Local Government Budgeting, Online, gfoa.org September 11, 2026 UNC SOG Strategic Planning for Local Government, Chapel Hill, sog.unc.edu September 14 -16, 2026 UNC SOG Capital Financing in Local Government, Chapel Hill, sog.unc.edu September 17, 2026 Accepting Credit Card Payments: What Governments Should Know about Vendor Services, Fees and Risks, Online, gfoa.org September 21 - 22, 2026 FREE! UNC SOG Preparing for Water and Wastewater Infrastructure Projects, Chapel Hill, sog.unc.edu September 22 - 24, 2026 Best Practices and Strategies for Public Investing, Online, gfoa.org September 28-30, 2026 GFOA Best Practices Forum, Online, gfoa.org October 6 - 7, 2026 Asset Management for Finance Officers, Online, gfoa.org October 9, 2026 UNC SOG Affordable Housing Seminar: Tools, Strategies and Case Studies for Local Government Leadership, Chapel Hill, sog.unc.edu October 13, 2026 Reviewing the No Tax on Overtime Deduction for Tax Year 2026, Online, gfoa.org NC Debt Setoff Workshops 9:30 am - 12:00 pm October 13, 2026, Waynesville October 14, 2026, Hickory October 15, 2026, Asheboro October 27, 2026, Washington October 28, 2026, Wilmington October 29, 2026, Raleigh November 4, 2026, Virtual Register at least 48 hours in advance: https://www.ncsetoff.org/training-and-workshopsOctober 15, 2026 FREE! UNC SOG Water/Wastewater Strategies for Small Systems, location not listed, sog.unc.edu
October 20, 2026 GAAFR Plus Webinar, Online, gfoa.org October 27 - 29, 2026 Managing Fiscal Distress, Online, gfoa.org October 28 - 29, 2026 Grants Made Manageable: An Introduction to Grant Writing and Post-Award Compliance, Asheville, sog.unc.edu October 30, 2026 Developing an RFP for an ERP System, Online, gfoa.org November 2 - 4, 2026 Revenue Policies, Online, gfoa.org November 4, 2026 Cash Flow Forecasting: Developing the Right Approach for Your Entity, Online, gfoa.org November 5, 2026 2026 Annual Governmental GAAP Update, Online, gfoa.org November 10, 2026 Government-wide Financial Statements and Conversions and Consolidations, Online, gfoa.org November 16 - 18, 2026 Capital Assets: Accounting and Financial Reporting, Online, gfoa.org November 16 - 19, 2026 Budgeting in Local Government, Chapel Hill, sog.unc.edu November 16 - 19, 2026 Intermediate Purchasing Seminar, Chapel Hill, sog.unc.edu November 17, 2026 Understanding Pension Plans, Online, gfoa.org November 18, 2026 Overview of Receivables Function in Treasury Office, Online, gfoa.org December 1 - 3, 2026 Debt: Accounting and Financial Reporting, Online, gfoa.org December 2, 2026 Essential Tools for Effective Payable Policies and Procedures in the Treasury Office, Online, gfoa.org December 7 - 8, 2026 Leases, SBITAs and PPPs: Accounting and Financial Reporting, Online, gfoa.org December 8 - 10, 2026 Best Practices in Debt Issuance and Management, Online, gfoa.org December 8 - 10, 2026 Development Finance Toolbox, Online, sog.unc.edu December 11, 2026 2026 Annual Governmental GAAP Update (Encore), Online, gfoa.org December 14 - 15, 2026 Overview of Public Procurement, Online, gfoa.org April 20 - 23, 2027 Governmental Accounting and Financial Reporting, Chapel Hill, sog.unc.edu 2027, TBD UNC School for Finance Officers, Chapel Hill and online. sog.unc.edu More programs are available in person from gfoa.org and On-Demand courses at gfoa.org/on-demand
Check the NCACC.org site for training opportunities.
The Governmental Accounting Standards Board (GASB) offers a video series to walk elected officials, citizens, accounting students, preparers, and other stakeholders through the highlights of the annual comprehensive financial report. The goal of the 16 videos is to explain how information within the ACFR may be used. The episodes, which average 5 to 10 minutes in length, include a 3-part introduction to government financial reporting and 13 segments on key areas of the ACFR. Find the videos here.
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2026 Summer Conference CPE Credit Certificates
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If you submitted code words in the conference app to get CPE credit for the 2026 Summer Conference, you should have received your CPE certificate on July 31, 2026 from learning@nclm.org. Earlier notices indicated it would come from ncgfoa.org. If you did not receive your CPE credit email, check your spam or junk folder. If you cannot locate your CPE certificate, email ncgfoa@nclm.org.
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Congratulations to County Winners for Excellence in Innovation
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The North Carolina Association of County Commissioners (NCACC), in partnership with Civic Federal Credit Union, presented the Excellence in Innovation Awards on August 20th. These awards recognize county programs that highlight innovative solutions and achieve notable cost and resource savings, improving services and operations across North Carolina counties. Learn more about the winners here. See award winning programs from prior years and learn more about the program here.
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Past Issues of the Fiscal Beacon
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The Fiscal Beacon was launched as a new service to members in April 2026, and the NCGFOA Board intended for the newsletter to be a quarterly publication. Strong demand and content volume justified a change to monthly issues beginning June 2026. Newsletters are generally issued on the fourth Thursday of every month, however November and December issues will be issued on the third Thursday to adjust for the holidays.
Newsletters arrive in member email from the address NCGFOA eSource, esource@ncgfoa.org. Consider making ncgfoa.org a safe sender in your email to make sure you don't miss it.
Send ideas for news articles and feedback to karen.mills@ncgfoa.org.
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Welcome Lauren York!
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Lauren York has joined Taylor Bee at the NCLM in support of NCGFOA as Affiliate Service Coordinator. Lauren is already making a difference in our member support and organization administration. If you need help with membership reach out to her at lyork@nclm.org
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2026 Summer Conference Business Meeting
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At the 2026 Summer Conference business meeting, members approved Board recommended updates to the NCGFOA Bylaws that clarify lifetime membership matters, board leadership progression and experience requirements, document financial practices, and align the bylaws with current practices for business meetings.
The Board also reported financial updates, strategic accomplishments and recognized lifetime membership for 2026 retirees Kelly Latham, CFO, Winston-Salem and Marlene Druga, Finance Director of Greensboro.
A new section of the NCGFOA.org website under the tab "About NCGFOA" will soon host the Summer Conference Business Meeting PowerPoint presentation and recent approved business meeting minutes.
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