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Capitol Corner

Capitol Corner October 2020

October 19, 2020

House Passes Updated Stimulus Bill
The House voted 214-207 along party lines to pass the Democratic $2.2 trillion stimulus measure. The legislation is a slimmed-down version of the HEROES Act, the $3.4 trillion stimulus bill that passed the House in May. Majority Leader Mitch McConnell called the measure still too expensive to pass the Senate. House Speaker Nancy Pelosi (D-CA) and U.S. Treasury Secretary Steve Mnuchin continue negotiations.
The proposal contains $436 billion in aid for states and cities. U.S. Treasury Secretary Mnuchin countered Leader Pelosi’s bill with a $1.6 trillion proposal that included $250 billion in aid for states and cities. Leader Pelosi resisted the deal, stating the funding level was too low.

Earmarks Update
Both parties in the House Appropriations Committee are discussing a proposed return of earmarks. This could be a game changer for local government projects since it would create another funding source to complement federal formula and discretionary grant funds. It could also help ease the extreme partisanship that has persisted for some time on Capitol Hill. However, there is no indication yet that the Senate is willing to remove its opposition to earmarks. 

Continuing Resolution
The President signed into law a bill to extend FY20 federal appropriations through December 11 to give Congress more time to reach agreement on FY21 spending and to deal with funding priorities after the November elections. The reauthorization of surface transportation programs, which would have expired on September 30, was also extended for one year.

Final Push to a Complete Census CountFinal Push to a Complete Census CountSeptember 18, 2020
Highland Neighborhood: A Model of Shared GovernanceOctober 20, 2020Highland Neighborhood: A Model of Shared Governance

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Federal funds are commonly passed through state agencies in North Carolina before being awarded to local governments, which can make the original funding source less obvious. Before proceeding with a procurement, local governments should verify whether an award originates from a federal source. This determination affects compliance obligations, including procurement standards, reporting, and audit requirements.

When a construction or repair contract over $300,000 involves a building, the procurement and contract are subject to additional requirements under N.C.G.S. 143-128. Therefore, this question must be answered to determine whether the additional statutory requirements apply to this procurement scenario.

The micro-purchase threshold is a federal procurement threshold under which competitive procurement is not required. The default micro-purchase threshold is $15,000, but local governments may increase the micro-purchase threshold up to $50,000. An explanation of increasing the micro-purchase threshold and a template for the required annual self-certification is available here.