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Primary Sponsor

Last Action

Re-ref Com On Appropriations/Base Budget2025-03-25

Vote Breakdown

No floor votes recorded.

Plain Language Summary

This bill creates the Capital for Communities Special Fund, a new state fund that receives quarterly transfers of 3.5% from state treasurer holdings and special investment accounts when those accounts achieve a 7% or higher return. The fund would support economic development projects in North Carolina including affordable housing, childcare facilities, healthcare initiatives, medical research, workforce development, living-wage jobs, and nonprofit education facilities.

Arguments in Favor

• •Supporters argue this bill directs investment returns toward meaningful community development without reducing the state's core budget.
• •By tapping earnings from accounts that exceed a 7% return threshold, the fund could address critical needs like affordable housing shortages, healthcare access gaps, and workforce training.
• •Proponents contend this creates a sustainable funding mechanism for economic development that benefits local communities across the state.

Arguments Against

• •Opponents may question whether dedicating investment returns reduces flexibility in state finances during economic downturns or emergencies.
• •Some may worry that the broad categories for fund use (such as 'groundbreaking medical research' or 'economic development projects') could lack clear accountability or measurable outcomes.
• •Others might argue the 3.5% quarterly transfer could be better allocated to existing state priorities or that the 7% return threshold may not consistently generate reliable funding levels.