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HB 374

North Carolina Association of Regional Councils of Governments (NCARCOG) Funding/Operations Improvements.

2025-2026 Session Introduced by Eric Ager and 13 co-sponsors

Allocates $7.85M to NCARCOG to hire 32 finance staff across 16 regional councils to help distressed localities regain financial compliance and boost disaster planning with DEM.

Passed 1st Reading
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Bill Summary · HB 374

Summary — HB 374 (2025)

Title: NCARCOG Funding/Operations Improvements
Sponsor(s): Reps. Cohn, Logan, Dew, K. Brown (primary)
Introduced: Nov 12, 2024 — Passed 1st Reading (Mar 12, 2025)
Effective date (as enacted): July 1, 2025

Purpose

To strengthen the capacity and operations of the North Carolina Association of Regional Councils of Governments (NCARCOG) and the 16 regional councils of governments (created under G.S. 160A‑470) by (1) expanding local financial administration capacity to help small units return to compliant status and (2) improving regional disaster preparedness, response, and recovery assistance.

Key provisions

  • Appropriations
    • $3,950,000 in recurring General Fund appropriated to the Department of Commerce for FY 2025–2026 to be allocated to NCARCOG to create a financial administration program.
    • $3,900,000 in recurring General Fund appropriated to the Department of Public Safety, Division of Emergency Management for FY 2025–2026 to be allocated to NCARCOG for disaster response planning and relief activities.
  • Financial administration program (Dept. of Commerce funds)
    • NCARCOG will use funds to employ 32 additional finance professionals across the 16 regional councils (average ~2 per council).
    • Purpose: assist small local governments and public authorities in returning to financial compliance.
    • Priority: assistance directed to small local units and public authorities (i) with limited means and (ii) listed on the Department of State Treasurer’s Unit Assistance List.
  • Disaster response program (Dept. of Public Safety funds)
    • NCARCOG to develop and implement a disaster response plan that includes standards/goals for capacity-building, relief support, local financial administration training, assistance applying for federal disaster recovery funds, and technical assistance for post‑disaster recovery (infrastructure, health, safety, rebuilding).
    • NCARCOG must consult with the Division of Emergency Management; the Division will identify areas where incorporating the NCARCOG plan can improve efficiency/effectiveness in disaster relief.

Who is affected

  • Primary beneficiaries: small local governments and public authorities in North Carolina (particularly financially distressed units), regional councils of government, and communities served by those local governments.
  • State agencies: Department of Commerce and Department of Public Safety (Division of Emergency Management) — both responsible for allocating funds to NCARCOG.
  • State budget: recurring General Fund expenditures.

Fiscal impact & staffing

  • Total recurring appropriations specified for FY 2025–2026: $7,850,000 ($3.95M + $3.9M).
  • Staffing: funding intended to create 32 finance positions across the 16 regional COGs.
  • Ongoing fiscal implication: language labels funds as “recurring” for the 2025–2026 fiscal year; implementation will create continuing program responsibilities and recurring state expenditure obligations if continued beyond initial allocations.

Timeline / procedural notes

  • Introduced Nov 12, 2024; read first time and referred in March 2025 (passed 1st reading Mar 12, 2025).
  • Text states the act becomes effective July 1, 2025.
  • Implementation requires allocation actions by the Department of Commerce and the Division of Emergency Management and program deployment by NCARCOG.

Potential effects / considerations

  • Increased local financial oversight and technical capacity may accelerate return-to‑compliance for distressed units and improve accuracy/management of local finances.
  • Improved regional disaster coordination and grant-assistance capacity could shorten recovery timelines and enhance access to federal disaster funds.
  • The recurring cost to the state budget (~$7.85M) will need to be accounted for in subsequent fiscal planning if sustained.

Compiled from official sources — confirm details with the bill’s official record.

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