North Carolina responses to the federal grant review process survey, 2021
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States employ a variety of processes to apply for and administer federal grants. Ballotpedia's 2021 state survey of the federal grant review process examined the general processes applied by the 50 states in order to seek and distribute federal funds.
Research from the Pew Charitable Trusts found that federal funds made up 32% (roughly $639 billion) of all state revenue in 2017, making them the second-largest source of state revenue behind state tax collections.[1] States direct federal funds to government programs related to education, healthcare, transportation, infrastructure, and other policies.[1]
This page features North Carolina's responses to Ballotpedia's 2021 survey.
Background
From August 5, 2021, to September 27, 2021, Ballotpedia staff contacted the executive and legislative budget offices of all 50 states via email and/or telephone to update a publicly available 2016 survey on state approaches to the federal grant review process.
Our staff contacted state officials with the following survey questions:
- Approval processes for federal grants
- What is your state’s process for federal grant applications and the approval process?
- What is your state’s approval process when the legislature is not in session?
- How does the legislature monitor the intent of federal grants? What legislative rules allow the state greater oversight of federal funds in the budgets?
- Contingency plans for the loss or decline of federal funds
- What is your state’s contingency plan in the case of a decline or loss of federal funds?
- Quality control processes for federal grants
- What is your state’s quality control process for tracking the effectiveness of federal funds?
- Does your state attempt to estimate the cost of federal fund requirements? If so, how?
- How does your state prioritize federal funds to best meet the needs of constituents?
- If your state doesn’t appropriate key federal funds like food stamps and unemployment benefits, are your state’s federal funds off-budget? How do you track this information?
Our staff also contacted state officials with the following two new survey questions regarding federal funds made available in response to the coronavirus (COVID-19) pandemic:
- Coronavirus (COVID-19) pandemic funds
- Who has decision rights over American Rescue Plan Act (ARPA) State Fiscal Recovery Fund allocations in your state?
- Who has decision rights over Elementary and Secondary School Emergency Relief (ESSER) Fund allocations in your state?
North Carolina 2021 survey responses
What is your state’s process for federal grant applications and the approval process?
“Pursuant to N.C. General Statute 143C-7-1, a state agency that submits to the federal government or to any other party an application for funds must also provide to the Office of State Budget and Management a copy of the application along with any related information required by OSBM. In lieu of submitting a hard copy of the application, agencies are required to maintain a copy of the application in their files for review by OSBM upon request. Additionally, agencies are required to submit the “Application for Grants Funds” form that summarizes key information about the grant, such as identifying agency information, the purpose of the grant and grant period, total funds requested and the need for additional FTEs. An electronic copy of the form is due to the appropriate OSBM budget analyst at the time the agency submits the grant application to the funding entity.”
What is the approval process when the legislature is not in session?
“During the interim between legislative sessions, Governmental Operations meets on a periodic basis. Meetings are typically scheduled during the third week of the month. Meetings may be held during the legislative session if needed. If the Commission does not hold a meeting to hear required prior consultation items within 90 days and the request has been submitted to Governmental Operations by OSBM, the consultation requirement is deemed satisfied.
"If the State has not yet passed a budget and an agency receives a new grant. They may expend funds under $2.5 million with a report to Governmental Operations. If the grant is over $2.5 million they must consult with Governmental Operations. If the state is in a state of emergency (Natural Disaster, Public Health Crisis, etc), an agency may budget and expend grant funds up to 1% or 10million (whichever is less) with a report to Governmental Operations – any funds over that amount would then be subject to a consultation requirement (or some action by the General Assembly if they so choose).
"The approval process does not apply for grants that are part of an agencies continuing 'base budget.”’
How does the legislature monitor the intent of federal grants?
“Outside of the Governmental Operations reporting requirement, there are not currently rules or mechanisms in place at the legislature to monitor the intent of federal grants. Other than approving the budget when federal funds are received, there are not rules allowing greater state oversight of federal funds. The determination for when to apply for federal funds or how they are managed is left to the authority of the recipient agency. The Governor’s Budget proposal for FY15-17 included a provision to expand the state’s oversight of federal funds, but it was not enacted. The language is copied below:
“SECTION 6.3. There is established within the Office of State Budget and Management a central grants management function for the purpose of improving administration of federal and private grants. This grants management function will, among other activities, provide oversight on a statewide basis. Oversight will be phased in, beginning with a review of grant applications of select agencies to be determined by the Office of State Budget and Management. In order to align new funding with State priorities, new grant applications, renewal applications or other applications for funding in excess of funding authorized in this act for the selected agencies shall be coordinated through the Office of State Budget and Management."
What is your state’s contingency plan for state financing in the case of losses or decline in federal funds?
“OSBM collects and periodically updates agency specific contingency plans for how to operate in the event of a loss of federal funds. The strategies vary depending on the specific agency or program.”
What is your state’s quality control process for tracking the effectiveness of federal funds?
“There is not a process in place for tracking the effectiveness of federal funds. The Governor’s Budget proposal for FY15-17 included a provision to expand the state’s oversight of federal funds, but it was not enacted. The language is copied below:
“SECTION 6.3. There is established within the Office of State Budget and Management a central grants management function for the purpose of improving administration of federal and private grants. This grants management function will, among other activities, provide oversight on a statewide basis. Oversight will be phased in, beginning with a review of grant applications of select agencies to be determined by the Office of State Budget and Management. In order to align new funding with State priorities, new grant applications, renewal applications or other applications for funding in excess of funding authorized in this act for the selected agencies shall be coordinated through the Office of State Budget and Management.”
Does your state attempt to estimate the cost of federal fund requirements? If so, how?
“No, the state has not attempted to estimate the cost of federal fund requirements on a large scale. The topic may be addressed in various program evaluations and audits that have been conducted by the General Assembly’s Program Evaluation Division, The State Auditor, or OSBM, but only for a specific program or policy. The methodology for estimating costs would vary depending on the program or policy in question.”
How does your state prioritize federal funds to best meet the needs of constituents?
“Through the budget process, federal receipts are appropriated to best meet the priorities of the state, to the extent allowed by federal rules and regulations for the funds in question.”
If your state does not appropriate key federal funds like food stamps and unemployment benefits, are your state’s federal funds off budget? How do you track this information?
“Federal funds are appropriated and not off budget.”
Who has decision rights over American Rescue Plan Act (ARPA) State Fiscal Recovery Fund allocations in your state?
“Legislature.”
Who has decision rights over Elementary and Secondary School Emergency Relief (ESSER) Fund allocations in your state?
“DPI receives the funds directly. However, there are three buckets of ESSER funds that have all been allocated through different means. The first and by far the largest is formula driven. That's locked in. The second is what is called "leadership" funds, about 9.5%. The SBE allocated these funds from CARES but the General Assembly has made specific appropriations from this bucket in both CRSAA and ARPA. The third is administrative, .5% and the SBE is approving allocations from this bucket.
"Regarding ESSER, I should clarify that the GA could decide to allocate administrative funds as well. Or they could withhold appropriation of the formula driven funds. So the easiest answer, and probably the most correct answer, is that GA has decision rights.”
Other state survey responses
Click on a state below to view its responses to the 2021 survey on the federal grant review process:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
See also
- State survey of the federal grant review process, 2021
- State responses to the federal grant review process survey, 2021
- State responses by question to the federal grant review process survey, 2021
- Federalism
External links
Footnotes
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