Budget & Taxes (Debt & Bonds)

This bill authorizes local governments in North Carolina to borrow money to accelerate specific transportation projects that are scheduled for funding under the State Transportation Improvement Program. To access these funds early, localities must sign an expedited agreement with the Department of Transportation that outlines project details, financial forecasts, and a repayment plan. The borrowed money, known as grant anticipation notes, must be repaid solely from the future state or federal grant funds and cannot exceed the total amount of that funding. Additionally, the bill requires the Department of Transportation to ensure that any changes to the state's transportation plan do not delay the repayment of these notes.

SB 946, titled the Keep Our Schools Standing Bond Act of 2026, proposes to issue up to $50 billion in state bonds to fund public school construction, repairs, renovations, and security improvements in North Carolina. The funds would be distributed as grants to counties through the Department of Public Instruction, while excluding expenses for salaries, trailers, and administrative buildings. This legislation requires approval from North Carolina voters via a special election before the State Treasurer can issue the bonds.

SB 685 requires developers building new subdivisions to provide financial guarantees (like surety bonds or letters of credit) to ensure publicly dedicated roads meet maintenance standards before county or municipal acceptance. The guarantee amount cannot exceed 20% of estimated road construction costs and must cover repairs if roads fail to meet minimum standards. If roads aren't accepted into public maintenance systems within four years of plat recording, they automatically become county/municipal responsibility. This directly affects developers (who must post guarantees), counties (who manage acceptance), and future residents (who rely on maintained public roads). The bill ensures funding for road upkeep without requiring immediate full public ownership.

SB 584 authorizes counties to use specific sales tax revenue to fund local public transportation systems - including buses, light rail, bike lanes, and transit facilities - while requiring these funds to supplement (not replace) existing transportation budgets. It defines "public transportation system" broadly to include infrastructure like bus lanes, shared-ride services, and integrated fare systems. The bill also creates a new metropolitan public transportation authority for counties with over 1 million residents that border another state and operate light rail systems, giving them regional planning powers under specific rules. This authority would manage funding and coordination for transportation projects within its jurisdiction.