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County attorney warns of state and federal changes that could shift costs to Forsyth County; NCACC goals proposed
Summary
County Attorney Gordon Watkins briefed commissioners on federal guidance proposals, SNAP and Medicaid operational changes that could increase county costs, property‑tax and land‑use amendments, and NCACC legislative goals; board set internal comment and schedule milestones.
County Attorney Gordon Watkins told the Forsyth County Board that a wave of state and federal policy changes in the recently passed budget and proposed federal rules could create new administrative burdens and shift costs to counties.
Watkins flagged federal HR 1 provisions affecting SNAP: starting Oct. 1, 2026, the county share of SNAP administrative costs could rise from 50% to 75%, and an error‑rate repayment mechanism could require counties to repay funds to the federal government starting Oct. 1, 2027. "If North Carolina has a large error rate, the counties... will have to pay that back to the Federal Government," Watkins said, describing potential withholdings of sales tax to recoup repayment.
He also explained a proposed Office of Management and Budget rewrite of uniform guidance that, if adopted, would centralize grant‑approval authority and potentially make grants more enforceable and more administratively risky. Watkins said the county will submit comments on the OMB proposal by the near‑term deadline (June 13) using a draft prepared by the national association.
At the state level, Watkins described a constitutional amendment proposal that would require the General Assembly to enact laws limiting annual increases in local property‑tax levies and warned that an ill‑defined levy cap could constrain counties’ ability to respond to population growth, inflation or emergency costs. He also noted a moratorium on revaluation that has created budgetary difficulties for some counties.
Watkins said recent budget language removed statutory goals for minority‑ and women‑owned business participation (MWBE) and described pending bills that would restrict diversity, equity and inclusion programs for state and local entities; he warned counties to watch implementation and compliance requirements.
He described statutory changes to local land‑use appeal rights (citing 160D provisions) that expand the statute of limitations and broaden standing, potentially allowing organizational plaintiffs to bypass local administrative remedies and take disputes directly to court, which could increase litigation risk for local land‑use decisions.
Watkins outlined draft NCACC (North Carolina Association of County Commissioners) legislative goals he recommends Forsyth County consider endorsing. Priorities include preserving county property‑tax authority with clearly defined exceptions, seeking funding to cover costs shifted by SNAP and Medicaid administrative changes, expanding Innovations Waiver slots for people with intellectual and developmental disabilities, and aligning residential treatment licensing to maximize Title IV‑E federal funding.
He gave the board a timetable for internal review and submission to NCACC: the county’s deadline to propose changes is Aug. 14, and the board’s last meeting before that is Aug. 13. Commissioners asked for further briefings on specific topics (for example, grounds for overturning land‑use decisions under the new language) and for staff to research operational details (Medicaid eligibility during alternative custody like ankle‑bracelet release).
No formal votes were taken; Watkins said staff and managers would prepare comment drafts and additional analyses for future meetings.
