New reporting requirements were imposed on local government and public authorities in the recently passed state budget bill (Senate Bill 257 / Session Law 2026-41) concerning appropriations and disbursements for economic development.

Under S.L. 2026-41 Section 39.3 (page 525), units must now notify the State Auditor of any disbursement exceeding $25,000 that is made for economic development purposes. The law also limits the use of appropriations for economic development appropriations to purposes expressly authorized by law.  These changes are anticipated to be codified as G.S. 159-28(b1) and G.S. 159-13(b)(21) respectively.

The Office of State Auditor has provided a Economic Development Compliance Form (linked here) and instructions for units to use when reporting economic development disbursements exceeding $25,000. OSA will receive these reports and submit them annually to the Local Government Commission (LGC) and to the Joint Legislative Commission on Governmental Operations.

This Economic Development Compliance Form is used to collect the information needed to fulfill that reporting requirement and to document the purpose of the disbursement, the recipient, and the supporting authority for the disbursement. 

This form shall be completed semi-annually with reporting periods ranging from January 1st to June 30th and July 1st to December 31st of each year. The reporting for these periods are due by February 28th for the reporting period ending on December 31st and August 31st for the reporting period ending on June 30th. The usage of this form will begin October 30th, 2026. For clarity, the first reporting period is for expenses since July 1st, 2026. Disbursements are defined as funds that are sent out from the entity.

Units are advised to read the section in its entirety and contact OSA with any questions about the new requirements at economicdevelopment@ncauditor.gov.

Given the volume of information requested for each economic development project you may want to collaborate with your colleagues well in advance of the reporting deadline. The form requires for each project:

1) project description, 

2) purpose of the disbursement, 

3) source of funds, 

4) estimated project start and end dates,

5) disbursements by vendor/awardee, 

6) total number of projected disbursements, 

7) project contact, and 

8) estimated economic impact. 

After submission of the form, the Office of State Auditor will send you a ShareFile request with additional information requests, when applicable, for:

1) Contract, Agreement or Memorandum of Understanding including grant awards

2) Receipts, invoices, reimbursement requests or similar documentation supporting the expenditure

3) Meeting minutes approving the disbursement

4) Meeting minutes approving the economic development project

5) Relevant communications with the vendor/awardee such as award notifications, funding agreements and project correspondence

6) Performance requirements such as job-creation targets, capital investment commitments, reporting requirements, clawback provisions, or other benchmarks

7) Any solicitation, bid request or RFP related to the project. 

Deadlines for completion of the ShareFile request are not declared on the Economic Development Compliance Form. 

From the NCLM October 2 Legislative Bulletin

Find an estimate here of how much sales tax your city would have lost if this penalty had been in place during the 2024-2025 fiscal year.

Before legislators left Raleigh in early August, their action on the state budget placed local governments responsible for compensating the federal government for errors in the Supplemental Nutrition Assistance Program (SNAP), a program over which no city or town has oversight. 

As a reminder, in early 2025, the United States Congress, through HR 1, the "One Big Beautiful Bill Act," made changes to the SNAP program, requiring states to pay a larger share of its costs starting in October 2027. The larger share is based on an error-rate calculation intended to incentivize local agencies to process SNAP applications and benefit-recipient reporting more promptly and accurately. Through the 2026 state budget (SB 257/SL 2026-41 2026 Appropriations Act), legislators decided to pass these penalty costs to cities and counties by withholding sales taxes. By law, North Carolina counties administer SNAP program applications and benefits.

This week, at the end of the federal fiscal year, the current federal Farm Bill expired without an extension, meaning the SNAP program, administered by the US Department of Agriculture (USDA), will undergo significant benefit and eligibility changes as of October 1. While it remains unclear when or if Congress might approve a new Farm Bill, a bipartisan group of legislators in both chambers continues to support rescinding or delaying payments from states related to error rates, a move that would affect the state's proposal.  

In late August, NCLM President Jody McLeod sent a letter to North Carolina legislators urging reconsideration of the budget provision that will reduce cities' sales tax revenue due to changes to the Supplemental Nutrition Assistance Program (SNAP). The letter also asked that cities be held harmless from these costs, acknowledging that cities do not control or administer the SNAP program in North Carolina and therefore cannot affect the program's error rate.

This letter is in addition to an NCLM analysis linked above of the language in the state budget and the SNAP error rate data, which found the total estimated cost to both counties and cities is $150 million. Of that amount, cities would be directly responsible for roughly one-third, or $51 million if this law had been in place in the 2024-2025 fiscal year.

From the October 2 NCLM Legislative Bulletin:

Constitutional Amendment

In the November election, voters will decide whether to amend the state constitution to direct the General Assembly to adopt a limit on how much property taxes may increase year over year. After that, a November-December “lame duck” session is scheduled where lawmakers could take action on property taxes.

Senate Select Committee Appointed

In late September, Senate Leader Phil Berger appointed a Select Committee on Property Tax Reform. The committee will look at transparency measures (such as the pending SB 992 Truth in Taxation) and limits on local governments’ discretion to raise revenue. The Committee is chaired by Senators Lisa Barnes, Tom McInnis, and Buck Newton, with 17 other Senators representing both Democrats and Republicans from across the state.

Polling Results

As election day nears, public polling results regarding the constitutional amendment are starting to emerge. The Catawba College/YouGov survey published September 2 shows 80% support for the property tax constitutional amendment and, further, when presented with information about balancing needs for local services, nearly 70% of respondents expressed support. The Elon University Poll released September 17 presented similar results: 72% in favor; 14% opposed; and 14% unsure.

City Conversations

While the path forward remains uncertain, League staff is preparing to support you as you talk with your legislators. More will be coming to your inbox, but we wanted to share two one-page guides to help you get started; both links are in the buttons above. NCGFOA Edit, links here:  Property Taxes and Municipal Government and Property Taxes: The Misconceptions We are also reviewing similar policies from other states, looking at models that demonstrate how a levy limit would impact cities large and small. 

From the National Association of Counties Website:  On May 29, 2026, the Office of Management and Budget (OMB), in coordination with every federal grantmaking agency, published a proposed rule in the Federal Register rewriting 2 CFR Part 200 — the Uniform Guidance. This is the largest revision to federal grant rules since the Uniform Guidance was first published in 2013.

The Uniform Guidance governs every federal grant, cooperative agreement and pass-through award that counties receive — covering public safety, transportation, housing, public health, workforce development, child welfare, emergency management and more. The proposed rule introduces new national policy requirements, modifies grant termination authority, integrates grants administration with the Treasury Do Not Pay system, reclassifies 2 CFR Subtitle A from guidance to binding regulation, and revises cost principles, audit requirements and pass-through entity responsibilities.

On Sept 1, Congress passed a Fiscal Year (FY) 2027 Continuing Resolution H.R. 6500, which includes language postponing the implementation of OMB's proposed rewrite of the Uniform Guidance (2 CFR Part 200) until Dec. 11.

If you missed the news about the proposed rule changes, you can check out great resources on the NACo website linked above and the NCGFOA July 23, 2026 Fiscal Beacon article linked on the NCGFOA website here.

Keep your small tools in top condition with the North Carolina Department of Adult Correction’s (NCDAC) Tool Repair Shop. Based at Caswell Correctional Center, you can extend the life on a variety of your division’s small tools. Items repaired include:

• Almost all electrical, battery-powered, and pneumatic tools

• Microwaves

• Fans

• Barber clippers

• Buffers

• Electric musical instruments

Repairs are made at 50%of tool value, and if needed, you’re only responsible for the cost of parts. Tools can be shipped to the repair shop via the state courier, saving on commercial shipping costs and avoiding related issues. Contact Keith Bunn at keith.bunn@dac.nc.gov for more information.

Recipients eligible for early closeout who have received an invitation from the U.S. Treasury are encouraged to join the Treasury-hosted office hours for assistance with initiating closeout or questions about the process. Please click here for more information about the closeout process. Office hours will be held virtually on Wednesdays at 1:00 p.m. (Meeting ID: 165 722 8604) on the following days.

• October 28

• November 25

• December 9

• December 23

Nominated by Shannon Guaracino, Finance Administrative Specialist, Town of Rolesville

Finance Officer. Budget Guru. Finance Director. Municipal Maven. Capital Finance Expert.

Anyone who has been in a room with Amy Stevens for two minutes knows the powerhouse she is. Her natural gravitas commands every room she walks in to, and her scrutinizing gaze is always evaluating and contemplating more deeply. An infinite well of wisdom, she has meticulously and intentionally honed her skills over years of robust experience, intensive
training, and thorough research. 

For nearly fourteen years, Amy has been a stalwart bastion for the Town of Rolesville. Her tenure began when Town Hall only housed five people, and now she supervises a department with the same number of employees. She has had the honor of being the Town’s first Finance Director, often performing Clerk and Human Resources Director responsibilities in addition when those positions went unfilled.

To be responsible for government finances—and thus taxpayer money—one must be exceptionally uncompromising, especially when it comes to applicable State law. Amy demonstrates ethical financial stewardship by ensuring effective internal controls are a critical aspect of healthy Town finances. She developed a department workplan which lists all department tasks and specifies whose role it is to complete them, as well as identifying the backup. As a department, we revisit this workplan often and Amy encourages collaboration and feedback regarding the distribution of tasks. She expects no less than excellence from her department, leading by example with her commitment to financial integrity. We’ve even received checks from other municipalities with the words, “Amy Stevens RULES!” handwritten on the stub, a testament to her reputation in the broader professional finance community.

Amy has made significant, measurable contributions to the Town’s financial position and operations. Since becoming Finance Director, she has earned nine Distinguished Budget Presentation Awards from the Government Finance Officers Association (GFOA) on behalf of the Town, including a Special Recognition of Long-Range Operating Financial Plans in 2023. These awards reflect consistently outstanding quality and transparency in financial reporting.

Working directly to counsel Town Managers, Amy has been essential to the Town’s strategy and policy development, providing historical context for newer management members, as well as financial and statutory guidance that all Town leadership relies on. As finance concerns are also often IT concerns, Amy additionally took on the role of being the Town’s sole technical strategist and administrator, expertly balancing financial restrictions with cybersecurity recommendations. Her critical work in this area includes:

• Spearheading the migration from the State’s Microsoft tenant to the Town’s own tenant.
• Implementing multi-factor authentication across the organization to enhance security.
• Coordinating service interruptions to minimize impact and ensure continuity of government operations. 
• Partnered with our contracted provider to assess Fire Department IT needs in preparation for their unification with the Town (in addition to financial needs).  
• Invited the NC National Guard to perform a cyber vulnerability assessment, completed on January 9th, 2026.

Under Amy’s guidance, in the last year alone, her department successfully managed numerous special projects that enhanced operations. After operating as a non-profit for over sixty years, Rolesville Rural Fire Department unified with the Town in July 2025. This unification resulted in a plethora of additional work for the Finance Department, including the
aforementioned IT needs, extensive budget analysis of both RRFD’s operating expenses and Wake County Cost Share, as well as working closely with Human Resources to collect paperwork, onboard, and train nearly 40 new employees. This
transition coincided with a vacancy in our HR Director position, but Amy did double-duty to make sure all requirements and payroll needs were met. 

Having witnessed the Town's rapid growth from 5,000 residents to now an expected population of 25,000+ within the next decade, Amy has prepared the organization for its future by establishing a vendor-friendly process to update payment terms to ACH, drastically reducing check payments. Not only does this process mean faster, more efficient payments to vendors, it
also reduces costs by limiting check stock and saving on postage. The past year also saw the introduction of a Digital Payment Portal, which has proven very popular with residents and businesses who prefer to pay the Town via credit card or ACH. Moreover, another of our initiatives this year was to digitize our internal and external forms, which has succeeded in boosting productivity even further. She has proactively addressed the necessity of an accelerated shift in policy
and culture to grow alongside Rolesville’s boom. 

A hallmark of her lasting organizational impact is her department’s “Lottery Book”. This few-inches-thick, handbound manual
details step-by-step policies and procedures for every function within the Finance department. Called the Lottery Book should one of us win the lottery and disappear, Amy’s extensive planning ensures that business operations are always
functioning smoothly— one of her favorite mottos being, “There are no finance emergencies”. This system guarantees financial stability and continuity of services to the community through any change in staff or leadership.

Amy fosters a culture of professional growth and high performance. With her encouragement, the Finance department has a minimum goal of 40 training hours for each staff member, utilizing valuable resources like the North Carolina League of Municipalities and the UNC School of Government. She excels at not simply telling staff what to do, but in helping them arrive at the right decision themselves, pushing them to the next level of expertise.

Amy demonstrates cross-departmental collaboration by driving key organizational policies and projects outside of the Finance unit: 

• Spearheading the creation of the Town’s inaugural Food Purchase and Payment Card Industry Data Security Standards (PCI DSS) policies.
• Leading the policy and strategy needs for IT, including the creation of the Technology Acceptable Use Policy and overseeing quarterly cybersecurity awareness training for all staff.
• Supporting critical software searches for the Planning, Parks & Recreation, and Public Safety departments.