Recommended continuation budget

              The North Carolina State Budget

with Results- Based Information

2007- 2009

General Government

Volume 2

Michael F. Easley

Governor

Recommended Operating Budget

The North Carolina State Budget

with Results- Based Information

2007- 2009

General Government

Volume 2

Office of State Budget and Management

Office of the Governor

Raleigh, North Carolina

www. osbm. state. nc. us

David T. McCoy, State Budget Officer

Charles E. Perusse, Deputy State Budget Officer

February 2007

Recommended Operating Budget

Table of Contents

Volume 2: General Government

Preface.................................................................................................... vii

Introduction............................................................................................ ix

General Assembly

Mission and Goals..................................................................................................... 1

11000 General Assembly - General Fund

Governor’s Recommended Adjustments to Base Budget....................................... 2

Base Budget and Results- Based Information......................................................... 3

Office of the Governor

Mission and Goals..................................................................................................... 9

13000 Governor’s Office - General Fund

Governor’s Recommended Adjustments to Base Budget..................................... 10

Base Budget and Results- Based Information....................................................... 11

13005 Office of State Budget and Management - General Fund

Governor’s Recommended Adjustments to Base Budget..................................... 18

Base Budget and Results- Based Information....................................................... 19

13085 OSBM - Reserve for General Assembly Appropriation

Governor’s Recommended Adjustments to Base Budget..................................... 23

Base Budget and Results- Based Information....................................................... 26

23004 OSBM - Education Lottery Reserve

Base Budget and Results- Based Information....................................................... 29

13010 NC Housing Finance - Home Match

Governor’s Recommended Adjustments to Base Budget..................................... 31

Base Budget and Results- Based Information....................................................... 34

23010 NC Housing Finance - Special

Base Budget and Results- Based Information....................................................... 36

74660 Governor - Information Technology Services - Internal Service

Base Budget and Results- Based Information....................................................... 42

24667 Information Technology Fund

Base Budget and Results- Based Information....................................................... 51

Office of the Lieutenant Governor

Mission and Goals................................................................................................... 59

13100 Office of the Lieutenant Governor - General Fund

Governor’s Recommended Adjustments to Base Budget..................................... 60

Base Budget and Results- Based Information....................................................... 63

iii

Department of Secretary of State

Mission and Goals................................................................................................... 65

13200 Secretary of State - General Fund

Governor’s Recommended Adjustments to Base Budget..................................... 66

Base Budget and Results- Based Information....................................................... 69

Office of the State Auditor

Mission and Goals................................................................................................... 79

13300 Office of the State Auditor - General Fund

Governor’s Recommended Adjustments to Base Budget..................................... 80

Base Budget and Results- Based Information....................................................... 83

Department of State Treasurer

Mission and Goals................................................................................................... 87

13410 Office of State Treasurer - General Fund

Governor’s Recommended Adjustments to Base Budget..................................... 88

Base Budget and Results- Based Information....................................................... 91

13412 State Treasurer - Transfer Retirement System

Governor’s Recommended Adjustments to Base Budget..................................... 99

Base Budget and Results- Based Information..................................................... 100

Department of Insurance

Mission and Goals................................................................................................. 103

13900 Insurance - General Fund

Governor’s Recommended Adjustments to Base Budget................................... 105

Base Budget and Results- Based Information..................................................... 108

23900 Insurance - Special Fund - Interest Bearing

Base Budget and Results- Based Information..................................................... 115

13901 Insurance - General Fund Direct

Governor’s Recommended Adjustments to Base Budget................................... 119

Base Budget and Results- Based Information..................................................... 120

23901 Insurance - Special Fund - Non- Interest Bearing

Base Budget and Results- Based Information..................................................... 122

Department of Administration

Mission and Goals................................................................................................. 125

14100 Department of Administration - General

Governor’s Recommended Adjustments to Base Budget................................... 126

Base Budget and Results- Based Information..................................................... 131

24100 Department of Administration - Special Fund

Base Budget and Results- Based Information..................................................... 157

74100 Department of Administration - Internal

Base Budget and Results- Based Information..................................................... 177

iv

Office of the State Controller

Mission and Goals................................................................................................. 183

14160 Office of State Controller - General Fund

Governor’s Recommended Adjustments to Base Budget................................... 184

Base Budget and Results- Based Information..................................................... 187

Department of Revenue

Mission and Goals................................................................................................. 191

14700 Revenue - General

Governor’s Recommended Adjustments to Base Budget................................... 192

Base Budget and Results- Based Information..................................................... 193

Department of Cultural Resources

Mission and Goals................................................................................................. 219

14800 Cultural Resources - General Fund

Governor’s Recommended Adjustments to Base Budget................................... 220

Base Budget and Results- Based Information..................................................... 223

54800 Cultural Resources - Enterprise

Base Budget and Results- Based Information..................................................... 242

14802 Cultural Resources - Roanoke Island Commission

Governor’s Recommended Adjustments to Base Budget................................... 244

Base Budget and Results- Based Information..................................................... 245

State Board of Elections

Mission and Goals................................................................................................. 249

18025 State Board of Elections - General

Governor’s Recommended Adjustments to Base Budget................................... 250

Base Budget and Results- Based Information..................................................... 253

North Carolina Occupational Licensing Boards

Mission.................................................................................................................. 257

NC Board of Barber Examiners

Mission and Goals............................................................................................ 259

28101 NC State Board of Barber Examiners

Base Budget and Results- Based Information.................................................. 260

NC State Board of Cosmetic Art Examiners

Mission and Goals............................................................................................ 263

28102 NC State Board of Cosmetic Art Examiners

Base Budget and Results- Based Information.................................................. 264

NC State Board of Opticians

Mission and Goals............................................................................................ 267

28103 NC State Board of Opticians

Base Budget and Results- Based Information.................................................. 268

v

NC Psychology Board

Mission and Goals............................................................................................ 271

28104 NC State Psychology Board

Base Budget and Results- Based Information.................................................. 272

NC Auctioneer Licensing Board

Mission and Goals............................................................................................ 275

28106 Auctioneer Licensing Board

Base Budget and Results- Based Information.................................................. 276

NC State Board of Electrolysis Examiners

Mission and Goals............................................................................................ 279

28107 NC State Board of Electrolysis Examiners

Base Budget and Results- Based Information.................................................. 280

Office of Administrative Hearings

Mission and Goals................................................................................................. 283

18210 Office of Administrative Hearings

Governor’s Recommended Adjustments to Base Budget................................... 284

Base Budget and Results- Based Information..................................................... 287

Teachers’ and State Employees’ Comprehensive Major Medical Plan

Mission and Goals................................................................................................. 289

28410 Major Medical - Special

Base Budget and Results- Based Information..................................................... 290

vi

Preface

The North Carolina State Budget: Recommended Operat-ing

Budget with Results- Based Information, 2007- 2009

reflects the work of multiple people within the Office

of State Budget and Management ( OSBM), includ-ing

budget administrators and analysts, economists,

technical staff, and paraprofessionals. The OSBM team

is listed below by administrative area.

This document is available online at www. osbm. state.

nc. us. For additional information about its contents,

please contact the appropriate administrator at the

e- mail address cited below or by telephone at 919/ 807-

4700. The mailing address for OSBM is 20320 Mail

Service Center, Raleigh, NC 27699- 0320.

OSBM Staff

David McCoy, State Budget Officer

david. mccoy@ ncmail. net

Debbie Young

Charles Perusse, Deputy State Budget Officer

charles. perusse@ ncmail. net

Angela Reeves

Fiscal Office

Arnetha Dickerson

Frances Doak

Human Resources

Tonya Austin

Ursula Hairston

Janie Johnson

Katie Shearon

Carolyn West

Statewide Budgeting Issues

Julie Mitchel, Associate State Budget Officer

julie. mitchel@ ncmail. net

Results- Based Budgeting

Jennifer Hoffmann

Capital Projects

Jim Lora, Assistant State Budget Officer

jim. lora@ ncmail. net

Adam Brueggemann

Chris Harder

Jennifer Wimmer

Correction, Crime Control and Public Safety, Justice,

Juvenile Justice and Delinquency Prevention, Judicial

Branch, Statewide Disaster Management

Sheryl Stephens, Associate State Budget Officer

sheryl. stephens@ ncmail. net

Aaron Gallagher

Marc Nelson

Transportation

Mercidee Benton, Associate State Budget Officer

mercidee. benton@ ncmail. net

Danyale Washington

Community Colleges, Public Education, University of

North Carolina

Elizabeth Grovenstein, Assistant State Budget Officer

elizabeth. grovenstein@ ncmail. net

Bryan Conrad

Kristen Crosson

Susie Esealuka

Pam Leaman

Trey O’Quinn

General Government and

Natural and Economic Resources

David Brown, Assistant State Budget Officer

david. brown@ ncmail. net

Thomas Cheek

Celia Cox

Donna Cox

Lanier McRee

Pat Taylor

vii

Economic Forecasting, Revenue Forecasting, Demo-graphic

Forecasting, Revenue and Tax Issues, Regulatory

Analysis

Jonathan Womer, Assistant State Budget Officer

jonathan. womer@ ncmail. net

Nathan Knuffman

Warren Plonk

Bill Tillman

Health and Human Services

Daphne Lyon, Assistant State Budget Officer

daphne. lyon@ ncmail. net

Debbie Barnes

Kari Barsness

Pam Kilpatrick

Wayne Williams

Technology and Data Services

Joel Sigmon, Assistant State Budget Officer

joel. sigmon@ ncmail. net

Bob Coats

Sue Farr

Agness Gunter

Ernest Pecounis

Francine Stephenson

Paul Young

Management

Tom Newsome, Assistant State Budget Officer

tom. newsome@ ncmail. net

Statewide Information Technology

Jim Dolan, Associate State Budget Officer

jim. dolan@ ncmail. net

Management Analysis

Barbara Baldwin

Donald Crooke

Angela Houston

Kay Radford

Joe Turlington

Salary and Benefits

Bill Stockard

Salary Control

Emily Moore

viii

Introduction

Operating budget by department

The North Carolina State Budget: Recommended Op-erating

Budget with Results- Based Information, 2007-

2009 is a six- volume document that details Governor

Easley’s recommended fiscal plan for the budgets of

each department in the State of North Carolina for the

upcoming biennium.

New results- based information

Newly integrated with the budget details for each de-partment

are mission statements, goals, fund descrip-tions,

key services supported by each fund or budget

code, costs of services in dollars and staff, and perfor-mance

measures. These results- based budgeting ele-ments

are intended to improve the reader’s understand-ing

of why an agency exists, what the agency does, how

much money its services cost, and how effective its

services are. The inclusion of these results- based budget

elements is the first step in a multiyear effort to pro-vide

members of the North Carolina General Assembly

and the public with expanded budget and operational

information. Ultimately, this information is designed

to improve funding, planning, and management deci-sions

in state government.

Line item details

Line item base budget details for all budgeted budget

codes and their component funds are available in a

PDF file on the Web site of the Office of State Budget

and Management, www. osbm. state. nc. us.

Order of presentation, explanation of codes

For publication of the recommended operating budget

for state agencies, the various departments are grouped

by function within the following volumes:

Volume 1: Education

Volume 2: General Government

Volume 3: Health and Human Services

Volume 4: Justice and Public Safety

Volume 5: Natural and Economic Resources

Volume 6: Transportation

Each volume is organized by department, by budget

code, and then by fund code. Each department is as-signed

a unique five- digit budget code or set of budget

codes ( except for the Department of Health and Hu-man

Services, which has a unique budget code for each

of its divisions). Each budget code is further divided

into four- character fund codes that represent a group

of activities for accounting purposes. Within depart-ment

budget codes, the recommended base budget is

presented in order by fund code.

Presentation of base budget and recom-mended

adjustments

The governor’s recommended operating budget is

comprised of two distinct components: 1) the base

budget, or continuation budget, which enables a

department to continue existing services and activities

at current levels, and 2) recommended adjustments

to the base budget, which include new programs and

expansions to current activities, as well as reductions

and eliminations. The base budget combined with any

recommended adjustments yields the recommended

operating budget for the biennium.

For each budget code in the General Fund that begins

with “ 1”, summarized information shows recommend-ed

appropriations and positions. Brief descriptions

of recommended adjustments to the base budget are

included with associated costs in dollars and positions.

These costs are specified as recurring or nonrecurring.

This section of information for the budget code is

titled “ Governor’s Recommended Adjustments to Base

Budget.”

. For example, the Department of Environment and Natural Resources

( budget code 14300) has numerous fund codes corresponding to each of its

programs. The budget for the Division of Marine Fisheries appears in three

fund codes, one for each of its major activities, administration ( 14300-

1315), research ( 14300- 1320), and law enforcement ( 14300- 1325).

ix

Following the display of recommendations for adjust-ments

to the base budget is a section for the budget

code titled “ Base Budget and Results- Based Informa-tion.”

This base budget section begins with graphs of

expenditure and position histories that illustrate funding

and staffing trends over the last several years.

The graphs in the base budget section for each budget

code are followed by a summary base budget table. The

summary base budget table displays the requirements,

receipts, appropriation, and positions for the following:

Actual expenditures for FY 2005- 06 ( the most re-cent

year for which actual information is available)

Certified budget for FY 2006- 07

Authorized budget for FY 2006- 07

Allowable adjustments, such as inflationary increas-es,

to the current authorized budget for each fiscal

year of the 2007- 09 biennium

Totals for each fiscal year of the 2007- 09 biennium

Following the base budget table for a budget code is a

display of base budget information for each fund within

the budget code, in order by fund code. The presenta-tion

for each fund begins with a base budget for the

fund followed by a fund description that explains the

major activities being funded. The structure for the

fund’s base budget table is the same as that for its parent

budget code.

Results- based information presented with

base budget

To explain and justify the expenditure of state taxpayers’

money, agencies have prepared supporting results- based

information, which is developed at either the budget

code level or the fund level. This information includes

service statements that describe the lines of business,

business processes, or set of activities supported by the

fund or budget code; actual requirements ( expenditures)

and personnel requirements ( FTEs) for each service

statement; and performance measures that tie specifical-ly

to the services provided in the fund or budget code.

The positions are those actually budgeted, not necessar-ily

those filled.

. For budget codes that do not begin with “ 1”, there are no adjustments to

the base budget except for transportation budget codes.

•

•••

•

Further information

Questions about The North Carolina State Budget: Rec-ommended

Operating Budget with Results- Based Informa-tion,

2007- 2009 or requests for further information may

be directed to the Office of State Budget and Manage-ment,

20320 Mail Service Center, Raleigh, NC 27699-

0320, or telephone ( 919) 807- 4700. The document may

also be downloaded from the Office of State Budget and

Management’s Web site, www. osbm. state. nc. us.

Glossary

Authorized budget. The certified budget plus revi-sions

delegated to the Office of State Budget and Man-agement

and to agencies by the State Budget Act ( G. S.

143C).

Base budget. That portion of the recommended op-erating

budget that maintains existing, authorized levels

of recurring services in agencies for a biennium. The

base budget, or continuation budget, is based on the

current year’s authorized budget and may be adjusted

for inflationary increases, annualization of programs,

reductions for nonrecurring programs, and adjustments

for receipts. The State Budget Act specifically mandates

that enrollment increases in public schools, commu-nity

colleges, and the university system be reflected in

the continuation budget submitted for the legislature’s

review.

Budget code. A five- digit number established for bud-getary

reporting. This number generally identifies major

fund types and the responsible entity for reporting.

The first digit is the fund type. The second and third

digits usually identify a state department or university

institution, except for the Department of Health and

Human Services, where the budget code identifies the

department’s divisions. Budget codes are established for

the following fund types:

0xxxx - Institutional Funds Revenue

1xxxx - General Fund

2xxxx - Special Funds

3xxxx - Federal Funds

4xxxx - Capital Project Funds

5xxxx - Enterprise Funds

6xxxx - Trust and Agency Funds

7xxxx - Service Funds

8xxxx - Highway Funds

x

Certified budget. The budget as enacted by the

General Assembly, including adjustments made for ( 1)

distributions to state agencies from statewide reserves

appropriated by the General Assembly, ( 2) distributions

of reserves appropriated to a specific agency by the Gen-eral

Assembly, and ( 3) organizational or budget changes

directed by the legislature but left to the governor to

carry out.

Continuation budget. Another term for the base

budget.

Expansion budget. That portion of the recommended

operating budget that presents additional operating

funds for expansion of existing services or activities, in-cluding

inflationary costs for the state’s share of locally-operated

programs, new programs, or pilot projects;

proposals to change a statutorily- controlled program by

redirecting funds from one program to another; onetime

major equipment purchases; and continued phase- in of

new programs initiated in a previous biennium.

FTE ( full- time equivalent). FTE is the percentage of

time that a staff member works represented as a decimal.

A full- time position is 1.00, a half- time position is .50,

and a quarter- time position is .25.

Fund code. A four- character code that, with its parent

budget code, uniquely identifies the fund. Most bud-get

codes have multiple fund codes that may reflect a

department’s organizational structure and are created for

each division within a department and/ or for specific

programs or purposes of a division. Fund codes are

established as a result of authorization by the General

Assembly; changes in the accounting standards; autho-rizations

by OSBM; and/ or grant awards from federal,

state, local, or private agencies, or from individuals.

Fund description. A description of the purpose of the

programs, services, activities, or functions funded in the

fund code. It provides justification for the expenditure

of the funds.

Goal. A broad statement of what a department wants

to achieve over a long period of time. Goals explain how

an agency fulfills its mission.

Mission statement. A description of an organization’s

basic purpose ( its fundamental reason for being) that

specifies its major functional role and communicates its

values.

Performance measure. A quantitative characteriza-tion

of the quality of, need for, or impact of a service

provided, ideally to help determine whether a desired

outcome has been attained.

Recommended operating budget. Total of the base

budget and recommended expansions and reductions

submitted by the governor to the General Assembly for

a biennium beginning with an odd- numbered year, for

example, 2007- 09. The recommended operating budget

does not include the capital improvements budget,

which is found in the accompanying budget publica-tion

entitled, The North Carolina State Budget: Summary

of Recommendations. A Six- Year Capital Improvements

Plan that supports and explains all proposed capital

improvements is prepared as a separate document.

Service analysis. A description of the relationship

between an activity supported by a fund or budget code

and the dollars and personnel allocated to those activi-ties.

Service statement. A description of the set of specific

activities, lines of business, or work processes that are

funded by a particular budget code or fund code.

xi

General Assembly

Mission

Enact general and local laws promoting the best interests of the state and

the people of North Carolina.

Goals

Ensure that each member of the North Carolina General Assembly has

the opportunity to fulfill his/ her legislative duties and responsibilities as

defined by the North Carolina Constitution and General Statutes.

1

Governor's Recommended Adjustments to Base Budget

General Assembly ( 11000)

Recommended General Fund Budget and Positions

2007- 08 2008- 09

Base Budget

Requirements $ 56,798,820 $ 58,075,011

Receipts $ 1,069,737 $ 1,143,807

Appropriation $ 55,729,083 $ 56,931,204

Adjustments

Requirements - -

Receipts - -

Appropriation - -

Total

Requirements $ 56,798,820 $ 58,075,011

Receipts $ 1,069,737 $ 1,143,807

Recommended Appropriation $ 55,729,083 $ 56,931,204

Positions

Base Budget Positions 339.000 339.000

Reductions - -

Expansion - -

Recommended Positions 339.000 339.000

2

Recommended Operating Budget, 2007- 09 General Assembly

Base Budget and Results- Based Information

Budget Code 11000 General Assembly - General

Actual Expenditures

by Fiscal Year

Actual Positions

by Fiscal Year

Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 57,701,070 $ 51,077,943 $ 51,077,943 $ 5,720,877 $ 56,798,820 $ 6,997,068 $ 58,075,011

Receipts $ 13,486,446 $ 984,600 $ 984,600 $ 85,137 $ 1,069,737 $ 159,207 $ 1,143,807

Appropriation $ 44,214,624 $ 50,093,343 $ 50,093,343 $ 5,635,740 $ 55,729,083 $ 6,837,861 $ 56,931,204

Positions 339.000 339.000 339.000 - 339.000 - 339.000

3

Recommended Operating Budget, 2007- 09 General Assembly

Budget Code 11000 General Assembly - General

Services for the budget code

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Senate: Provide professional and administrative support to all members of the Senate

including staff assigned to members' offices to assist them with scheduling constituent and

committee meetings, responding to constituent mail, researching policy and budget

issues, and coordinating and facilitating committee meetings. Provide reimbursement for

per diem and travel to senate members during the legislative session and during the

interim when conducting legislative business.

$ 7,418,092 49.000

House: Provide professional and administrative support to members of the House of

Representative including staff assigned to members' offices to assist with scheduling

constituent and committee meetings, responding to constituent mail, researching policy

and budget issues, and coordinating and facilitating committee meetings. Provide

reimbursement for per diem and travel to senate members during the legislative session

and during the interim when conducting legislative business.

$ 11,971,313 50.000

Administrative: Oversee administrative units serving the General Assembly. Manage and

operate the legislative printing. Manage the recruitment, hiring and benefits. Prepare and

monitor budgets. Provide accounting services and financial reporting. Provide 24- hour

police support including patrolling the legislative buildings, grounds and parking decks,

responding to staff requests for security support and emergency assistance, and managing

the emergency evacuation program.

$ 3,771,702 43.000

Bill Drafting: Draft Bills for members and committees of the General Assembly and respond

to members' requests for legal assistance. Draft special provisions for the annual budget

bill, coordinate the production of the budget bill and provide legal assistance to members

of the House and Senate appropriations' committees. Read and make corrections in bills

and amendments through a professional proofreading.

$ 2,253,334 18.000

Research: Provide legal and research support to all members of the General Assembly

including staff support to the substantive committees of the legislature during session and

various study committees during the interim. Maintain two legislative libraries staffed with

professional librarians to support the research and information needs of the Legislature, its

committees and staff. Also, offer library services to other state agencies and provide

reference services to the public.

$ 3,842,127 45.000

Fiscal Research: Provide budget and policy support to members including staff support to

the Appropriations committees during the legislative sessions and to various study

committees during the interim. Analyze the fiscal impact of introduced bills. Provide

revenue estimates and tax support to the finance committees during the legislative

sessions, write fiscal notes on introduced bills impacting tax revenues, and provide staff

support to revenue study committees during the interim.

$ 3,828,108 38.000

Building Maintenance: Provide preventive maintenance and repairs of buildings and

respond to routine and emergency work requests made by legislative members and staff.

Provide landscaping and grounds maintenance. Provide cleaning, trash removal and

moving services through a full- time housekeeping staff to maintain a clean and safe

environment for members, staff and the general public visiting the legislative buildings.

$ 2,039,935 29.000

Food Services: Operate main cafeteria and two snack bars for members, staff and the

public.

$ 1,527,817 26.000

Information Systems: Purchase of computer equipment to replace outdated items and/ or

upgrade to industry standards and maintain software licenses and maintenance

agreements. Provide professional information technology support including staffing a

helpdesk, providing computer training classes, developing custom software applications

and maintaining the information technology infrastructure.

$ 5,628,590 39.000

Legislative Research: Provide professional support to legislative study committees that

need specialized support that can not be provided by the permanent staff.

$ 0 -

4

Recommended Operating Budget, 2007- 09 General Assembly

Institute of Government: Contract with the Institute of Government to produce daily

bulletins and weekly status report during session, and an index of legislation at the end of

session.

$ 110,000 -

Reserves and Transfers: Reserves and Transfers are treated as a program solely for

accounting purposes.

$ 15,310,052 2.000

Actual Totals $ 57,701,070 339.000

Measures for the budget code 2003- 04 2004- 05 2005- 06

Drafting requests received for bills, proposed committee substitutes,

amendments, conference committee substitutes, conference reports

and special provisions

3,543 8,464 4,813

Fiscal notes completed 175 417 173

Session days 71 221 81

Bills enacted 204 463 264

Fund 11000- 1110 Senate — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 7,418,092 $ 8,860,128 $ 8,860,128 $ 1,292,210 $ 10,152,338 $ 2,269,833 $ 11,129,961

Receipts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 7,418,092 $ 8,860,128 $ 8,860,128 $ 1,292,210 $ 10,152,338 $ 2,269,833 $ 11,129,961

Positions 49.000 49.000 49.000 - 49.000 - 49.000

Fund description

Carry out the legislative power of the State vested in the Senate by the North Carolina Constitution and General Statutes

through the enactment of bills and legislative resolutions including all appropriations and revenue bills as well as

substantive legislation establishing public policy for the State.

Fund 11000- 1120 House of Representatives — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 11,971,313 $ 16,004,145 $ 16,004,145 $ 1,170,005 $ 17,174,150 $ 3,068,973 $ 19,073,118

Receipts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 11,971,313 $ 16,004,145 $ 16,004,145 $ 1,170,005 $ 17,174,150 $ 3,068,973 $ 19,073,118

Positions 50.000 50.000 50.000 - 50.000 - 50.000

Fund description

Carry out the legislative power of the State vested in the House of Representative by the North Carolina Constitution and

General Statutes through the enactment of bills and legislative resolutions including all appropriations and revenue bills as

well as substantive legislation establishing public policy for the State.

5

Recommended Operating Budget, 2007- 09 General Assembly

Fund 11000- 1211 Administrative — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 3,771,702 $ 4,355,555 $ 4,355,555 $ 226,038 $ 4,581,593 $ 361,644 $ 4,717,199

Receipts $ 229,980 $ 6,000 $ 6,000 $ 0 $ 6,000 $ 0 $ 6,000

Appropriation $ 3,541,722 $ 4,349,555 $ 4,349,555 $ 226,038 $ 4,575,593 $ 361,644 $ 4,711,199

Positions 43.000 43.000 43.000 - 43.000 - 43.000

Fund description

The Administrative Division provides general administrative support including administrative management, budgeting,

personnel, security, and production and storage of legislative documents for the North Carolina General Assembly.

Fund 11000- 1212 Bill Drafting Division — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 2,253,334 $ 2,692,105 $ 2,692,105 ($ 1,913) $ 2,690,192 $ 213,526 $ 2,905,631

Receipts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 2,253,334 $ 2,692,105 $ 2,692,105 ($ 1,913) $ 2,690,192 $ 213,526 $ 2,905,631

Positions 18.000 18.000 18.000 - 18.000 - 18.000

Fund description

The Bill Drafting Division drafts bills for members and committees of the North Carolina General Assembly.

Fund 11000- 1213 General Research — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 3,842,127 $ 3,966,736 $ 3,966,736 $ 508,613 $ 4,475,349 $ 547,871 $ 4,514,607

Receipts $ 60 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 3,842,067 $ 3,966,736 $ 3,966,736 $ 508,613 $ 4,475,349 $ 547,871 $ 4,514,607

Positions 45.000 45.000 45.000 - 45.000 - 45.000

Fund description

The Research Division provides research support for the North Carolina General Assembly and a reference library for use by

legislators and the public.

Fund 11000- 1214 Fiscal Research Division — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 3,828,108 $ 4,085,099 $ 4,085,099 $ 173,263 $ 4,258,362 $ 214,086 $ 4,299,185

Receipts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 3,828,108 $ 4,085,099 $ 4,085,099 $ 173,263 $ 4,258,362 $ 214,086 $ 4,299,185

Positions 38.000 38.000 38.000 - 38.000 - 38.000

6

Recommended Operating Budget, 2007- 09 General Assembly

Fund description

The Fiscal Research Division supplies fiscal data for the North Carolina General Assembly and recommends appropriations

for state departments and agencies.

Fund 11000- 1215 Building Maintenance — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 2,039,935 $ 2,050,200 $ 2,050,200 $ 209,929 $ 2,260,129 $ 254,444 $ 2,304,644

Receipts $ 18,182 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 2,021,753 $ 2,050,200 $ 2,050,200 $ 209,929 $ 2,260,129 $ 254,444 $ 2,304,644

Positions 29.000 29.000 29.000 - 29.000 - 29.000

Fund description

The Building Maintenance Division provides building maintenance and landscaping for the North Carolina General Assembly

complex.

Fund 11000- 1216 Food Service — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 1,527,817 $ 1,700,430 $ 1,700,430 ($ 57,264) $ 1,643,166 ($ 30,905) $ 1,669,525

Receipts $ 835,014 $ 978,600 $ 978,600 ($ 54,832) $ 923,768 $ 19,238 $ 997,838

Appropriation $ 692,803 $ 721,830 $ 721,830 ($ 2,432) $ 719,398 ($ 50,143) $ 671,687

Positions 26.000 26.000 26.000 - 26.000 - 26.000

Fund description

The Food Services Division makes food readily available during working hours for the North Carolina General Assembly and

the public.

Fund 11000- 1217 Information Systems — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 5,628,590 $ 5,869,937 $ 5,869,937 $ 591,915 $ 6,461,852 ($ 396,785) $ 5,473,152

Receipts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 5,628,590 $ 5,869,937 $ 5,869,937 $ 591,915 $ 6,461,852 ($ 396,785) $ 5,473,152

Positions 39.000 39.000 39.000 - 39.000 - 39.000

Fund description

The Information Systems Division provides automated information systems support and services to the North Carolina

General Assembly.

7

Recommended Operating Budget, 2007- 09 General Assembly

Fund 11000- 1220 Legislative Research — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 0 $ 96,300 $ 96,300 $ 353,700 $ 450,000 $ 0 $ 96,300

Receipts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 0 $ 96,300 $ 96,300 $ 353,700 $ 450,000 $ 0 $ 96,300

Positions - - - - - - -

Fund description

The Legislative Research program researches and reports on subjects that are, or promise to be, major issues for the next

legislative session of the North Carolina General Assembly.

Fund 11000- 1230 Institute of Government — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 110,000 $ 85,000 $ 85,000 $ 25,000 $ 110,000 $ 0 $ 85,000

Receipts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 110,000 $ 85,000 $ 85,000 $ 25,000 $ 110,000 $ 0 $ 85,000

Positions - - - - - - -

Fund description

The Institute of Government furnishes information on bills and legislative actions to members of the North Carolina General

Assembly, state and local government officials.

Fund 11000- 1900 Reserves and Transfers — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 15,310,052 $ 1,312,308 $ 1,312,308 $ 1,229,381 $ 2,541,689 $ 494,381 $ 1,806,689

Receipts $ 12,403,210 $ 0 $ 0 $ 139,969 $ 139,969 $ 139,969 $ 139,969

Appropriation $ 2,906,842 $ 1,312,308 $ 1,312,308 $ 1,089,412 $ 2,401,720 $ 354,412 $ 1,666,720

Positions 2.000 2.000 2.000 - 2.000 - 2.000

Fund description

Reserves and Transfers are treated as a program solely for accounting purposes.

8

Recommended Operating Budget, 2007- 09 General Assembly

Office of the Governor

Mission

The Governor, as the chief executive officer of the State, ensures the

smooth and efficient administration of State government through

formulating and administering the policies of the executive branch of the

State government, managing a comprehensive budget for all State

agencies, and executing the laws of the United States and the State of

North Carolina.

Goals

Invest in education from pre- K to the university through high- quality

curricular offerings and reform efforts to prepare all students for the

demands of college and work in the 21st Century.

Expand economic opportunities through job creation, job retention, and

workforce development to ensure long- term economic growth across

the state.

Provide the opportunity for all North Carolinians to be self- sufficient,

productive, and healthy individuals by offering to the state's most

vulnerable populations child and family initiatives, social supports, and

programs that increase the availability of quality health care.

Promote the efficient and effective management of taxpayer resources

through budgetary, management and data services.

Assure the proper management of the State's IT resources through the

development and administration of comprehensive long range plan and

technical standards, the efficient procurement of IT resources, the

delivery of IT services, and the oversight of major technology projects to

improve the delivery of governmental services.

Serve the citizens of North Carolina whose needs are not met by the

market by creating affordable housing opportunities.

9

Governor's Recommended Adjustments to Base Budget

Office of the Governor ( 13000)

Recommended General Fund Budget and Positions

2007- 08 2008- 09

Base Budget

Requirements $ 6,893,424 $ 6,931,692

Receipts $ 431,105 $ 431,105

Appropriation $ 6,462,319 $ 6,500,587

Adjustments

Requirements - -

Receipts - -

Appropriation - -

Total

Requirements $ 6,893,424 $ 6,931,692

Receipts $ 431,105 $ 431,105

Recommended Appropriation $ 6,462,319 $ 6,500,587

Positions

Base Budget Positions 63.710 63.710

Reductions - -

Expansion - -

Recommended Positions 63.710 63.710

10

Recommended Operating Budget, 2007- 09 Office of the Governor

Base Budget and Results- Based Information

Budget Code 13000 Governor's Office - General Fund

Actual Expenditures

by Fiscal Year

Actual Positions

by Fiscal Year

Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 5,961,209 $ 6,540,558 $ 6,540,558 $ 352,866 $ 6,893,424 $ 391,134 $ 6,931,692

Receipts $ 307,240 $ 434,592 $ 434,592 ($ 3,487) $ 431,105 ($ 3,487) $ 431,105

Appropriation $ 5,653,969 $ 6,105,966 $ 6,105,966 $ 356,353 $ 6,462,319 $ 394,621 $ 6,500,587

Positions 63.680 63.710 63.710 - 63.710 - 63.710

11

Recommended Operating Budget, 2007- 09 Office of the Governor

Budget Code 13000 Governor's Office - General Fund

Fund 13000- 1110 Administration — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 3,342,933 $ 3,959,070 $ 3,959,070 $ 216,439 $ 4,175,509 $ 223,417 $ 4,182,487

Receipts $ 137,248 $ 152,455 $ 152,455 $ 0 $ 152,455 $ 0 $ 152,455

Appropriation $ 3,205,685 $ 3,806,615 $ 3,806,615 $ 216,439 $ 4,023,054 $ 223,417 $ 4,030,032

Positions 42.990 43.000 43.000 - 43.000 - 43.000

Fund description

The Administration Unit provides resources and support to enable the Governor to fulfill the duties of Chief Executive of the

state as set forth by law. These duties include supervising the official conduct of executive offices, making appointments for

vacancies of executive offices and memberships on all boards and commissions, and serving as Director of the Budget with

final authority over state expenditures. Further, the Governor is charged with employing counsel for cases in which the state

is interested, granting pardons and commutations, issuing warrants in extradition of fugitives from North Carolina, having

certain emergency war powers as Commander- in- Chief of the state military, and entering into interstate compacts and

agreements with the federal government on various subjects ranging from nuclear energy to National Guard activities to

child custody.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Fulfills all duties as Governor including Chief Executive, Director of the Budget,

Commander- in- Chief of the state military, and Chairman of the Council of State.

$ 166,940 1.000

Manages the internal operations and staff of the Governor's Office, serves as the Governor's

liaison to the Executive Cabinet and Council of State, and advises the Governor on all key

issues. Also provides administrative support to the Governor's executive staff.

$ 787,488 9.000

Develops key policy initiatives, including those presented to the General Assembly for

enactment or funding and those implemented by executive action or in Cabinet agencies,

through research and analysis and working with state and non- state entities and

community and business leaders.

$ 563,540 6.990

Monitors all legal issues related to the Governor, his cabinet, and the Council of State.

Advises the Governor when policy developments involve legal issues, coordinates judicial

appointments and the preparation and execution of all Executive Orders, and investigates

the merits of pardon requests, communications, reprieves, extraditions, and rewards.

$ 220,576 2.000

Establishes and maintains a working relationship with members of the General Assembly

on all legislative matters of importance to the Governor. Tracks legislation and reports to

the Governor.

$ 225,747 3.000

Manages media relations by drafting speeches and press releases, coordinating daily

communications with reporters, and providing staff support during press events and

conferences.

$ 503,521 8.000

Advises the Governor on policy, legislation and personnel issues of concern to North

Carolina's minority citizens and serves as liaisons with minority populations.

$ 142,631 2.000

Assists the Governor in making appointments to more than 400 boards and commissions

established by statute or executive order, including managing the application process,

recommending proposed appointees and maintaining a boards and commission database.

$ 159,558 3.000

Maintains the Governor's calendar and staffs the Governor's office in the State Capital. $ 172,981 3.000

Provides administrative staff support to Office of Citizen's Affairs. $ 158,955 4.000

12

Recommended Operating Budget, 2007- 09 Office of the Governor

Provides administrative support to Intergovernmental Relations. $ 40,996 1.000

Provides grant support to Communities In Schools. $ 200,000 -

Actual Totals $ 3,342,933 42.990

Measures for the fund 2003- 04 2004- 05 2005- 06

More at Four slots ( total funded) 10,000 12,000 15,200

Appointments/ Reappointments to State Boards and Commissions

made by Governor Easley

1,003 969 733

Press releases issued by the Governor's Office 650 660 711

Fund 13000- 1120 Dues to National Associations — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 418,102 $ 424,540 $ 424,540 $ 26,015 $ 450,555 $ 40,435 $ 464,975

Receipts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 418,102 $ 424,540 $ 424,540 $ 26,015 $ 450,555 $ 40,435 $ 464,975

Positions - - - - - - -

Fund description

The Dues to National Associations fund code is used exclusively to provide payment of dues for memberships in national

organizations to keep the Governor aware of new procedures in state governments and to exchange information on

common problems to find effective solutions.

Fund 13000- 1130 Intergovernmental Relations — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 702,810 $ 489,104 $ 489,104 $ 6,174 $ 495,278 $ 6,174 $ 495,278

Receipts $ 30,111 $ 28,125 $ 28,125 $ 0 $ 28,125 $ 0 $ 28,125

Appropriation $ 672,699 $ 460,979 $ 460,979 $ 6,174 $ 467,153 $ 6,174 $ 467,153

Positions 4.000 4.000 4.000 - 4.000 - 4.000

Fund description

The Intergovernmental Relations Unit coordinates federal, state, and state- local government matters for the Governor and

responds to citizens' concerns by working with relevant federal, state and local agencies and elected officials at all levels of

government. The Unit operates four offices, three in North Carolina and one in Washington, DC. This Unit also acts as the

liaison to Local Government Partnership Council, which in turn advises the Governor and cabinet members on the effect of

policies and programs that directly affect local government; identifies problem areas and recommends policies with respect

to state, regional, and local relations; and functions as an ombudsman.

13

Recommended Operating Budget, 2007- 09 Office of the Governor

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Serves as an advocate, resource, and communication link between the Governor's office

and local governments, local elected officials and local government associations.

$ 80,373 1.000

Maintains and staffs the Washington, DC office, tracks federal legislation, and advocates the

state's view to Congress, the state's congressional delegation and federal agencies.

$ 148,382 1.000

Maintains and staffs the Governor's offices in Eastern and Western NC, investigates and

resolves local citizen complaints and concerns with state government and advises them of

appropriate resources when the issue does not come under the state's jurisdiction.

$ 189,055 2.000

Provides payments from Contingency and Emergency Fund as approved by the Council of

State.

$ 285,000 -

Actual Totals $ 702,810 4.000

Measures for the fund 2003- 04 2004- 05 2005- 06

Estimated calls from citizens to the Western Office and the Eastern

Office to ask questions or address their concerns on issues of

importance to them

- - 1,200

Fund 13000- 1210 Citizens' Affairs — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 189,870 $ 269,089 $ 269,089 ($ 267) $ 268,822 $ 166 $ 269,255

Receipts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 189,870 $ 269,089 $ 269,089 ($ 267) $ 268,822 $ 166 $ 269,255

Positions 4.700 4.700 4.700 - 4.700 - 4.700

Fund description

The Governor's Office of Citizens' Affairs increases citizen participation in the communities of North Carolina by encouraging

citizen volunteer involvement and providing prompt response to citizen concerns. Services provided by Citizens' Affairs

include toll- free information and referral, training and technical assistance, citizen awards, recognition awards and

proclamations. The office also coordinates the Governor's Disaster Hotline in times of emergency. This is one of two funds

that support the North Carolina Commission on Volunteerism and Community Service ( Budget 23000, Funds 2126, 2127,

2131).

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Responds to inquires on state government matters, recognizes outstanding achievement

through awards and proclamations and ensures Governor's correspondence is responded

to in a timely manner.

$ 119,313 2.500

Manages the office and staff to the Commission on Volunteerism and Community Support.

Administers a number of federally funded grants that support volunteer efforts in the state

and coordinates the Governor's Page Program.

$ 70,557 2.200

Actual Totals $ 189,870 4.700

14

Recommended Operating Budget, 2007- 09 Office of the Governor

Measures for the fund 2003- 04 2004- 05 2005- 06

Certificates to the Citizens of North Carolina to recognize their

contribution to public service

- 821 803

Proclamations issued to recognize contributions of state service

and/ or to recognize special events

- 214 133

NC Students who participated in the Governor's Page Program 376 370 453

Fund 13000- 1230 Education — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 458,454 $ 565,496 $ 565,496 $ 1,432 $ 566,928 $ 1,432 $ 566,928

Receipts $ 47,661 $ 134,615 $ 134,615 ($ 2,387) $ 132,228 ($ 2,387) $ 132,228

Appropriation $ 410,793 $ 430,881 $ 430,881 $ 3,819 $ 434,700 $ 3,819 $ 434,700

Positions 6.990 7.000 7.000 - 7.000 - 7.000

Fund description

The Governor's Education Policy Office is responsible for advising the Governor and developing the Governor's key policy

initiatives on education from K- 12 through higher education. The Education Policy Office works with the State's public

school, community college, and university systems, private colleges and universities, interest groups, nonprofit

organizations, community and business leaders, and others to develop the Governor's education initiatives.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provides policy advice and recommendations to the Governor regarding all aspects of

education for NC citizens through the formation and staffing of task forces and advisory

committees, research and analysis of current data, and examination of the latest trends.

$ 254,599 3.990

Assists Governor in his efforts to improve NC schools and teaching conditions by

conducting a statewide teacher worker conditions survey, analyzing responses,

summarizing findings and making policy recommendations.

$ 92,920 1.000

Provides staff support to the North Carolina Business Committee on Education including

leading regional meetings to discuss how NC can remain economically competitive,

representing the Governor at relevant business meetings and conferences and facilitating

the creation of innovative education initiatives such as Teach4NC.

$ 110,935 2.000

Actual Totals $ 458,454 6.990

Measures for the fund 2003- 04 2004- 05 2005- 06

Class size reductions: Average number of second grade students per

teacher

18 18 18

Class size reductions: Average number of third grade students per

teacher

22 18 18

Beginning teacher salary ( dollars) $ 25,250 $ 25,420 $ 26,260

Disadvantaged Student Supplemental Funding ( dollars) - $ 22,500,000 $ 22,650,000

15

Recommended Operating Budget, 2007- 09 Office of the Governor

Fund 13000- 1240 Center 21st Century Skills — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 243,832 $ 255,342 $ 255,342 $ 0 $ 255,342 $ 0 $ 255,342

Receipts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 243,832 $ 255,342 $ 255,342 $ 0 $ 255,342 $ 0 $ 255,342

Positions 1.000 1.000 1.000 - 1.000 - 1.000

Fund description

The Center for 21st Century Skills was created in 2005 by Governor Easley as a public- private partnership that works actively

with business leaders, educators and policymakers to create new curricula, new assessments, and new ways of linking

student work in the classroom to the workplace in the 21st century to ensure that students leave school better prepared to

succeed in the global economy.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Manages the development of new curriculum, teacher training, and student assessments;

researches and proposes options for math and science programs; and works with existing

educational organizations to develop recommendations for high school reform initiatives.

$ 56,666 1.000

Contracts with nonprofit entities for the development of a multimedia student assessment

tool and the evaluation of high schools' progress toward teaching quality, educational

equity and academic success.

$ 187,166 -

Actual Totals $ 243,832 1.000

Measures for the fund 2003- 04 2004- 05 2005- 06

High schools redesigned through Governor's Specialty Schools Pilot - - 11

Cumulative number of high schools participating in Learn and Earn

initiative

- 5 15

Fund 13000- 1631 Raleigh Executive Residence — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 591,924 $ 561,813 $ 561,813 $ 103,073 $ 664,886 $ 119,510 $ 681,323

Receipts $ 83,770 $ 111,297 $ 111,297 $ 0 $ 111,297 $ 0 $ 111,297

Appropriation $ 508,154 $ 450,516 $ 450,516 $ 103,073 $ 553,589 $ 119,510 $ 570,026

Positions 4.000 4.000 4.000 - 4.000 - 4.000

Fund description

The Raleigh Executive Residence serves as the primary residence of the First Family, the official entertainment and meeting

place for the Governor, and a historic site for the public.

16

Recommended Operating Budget, 2007- 09 Office of the Governor

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Manages all the Governor's public and private functions including event planning and

coordination, catering services and related activities. Also supports the personal needs of

the first family.

$ 174,911 3.000

Provides staff support to the First Lady. $ 63,429 1.000

Purchases services to maintain the operations and grounds of the executive residence

including utilities, telephones and travel.

$ 227,571 -

Transfers funds to Crime Control and Public Safety to provide police protection to the

Governor and his family.

$ 126,013 -

Actual Totals $ 591,924 4.000

Fund 13000- 1632 Western Executive Residence — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 13,284 $ 16,104 $ 16,104 $ 0 $ 16,104 $ 0 $ 16,104

Receipts $ 8,450 $ 8,100 $ 8,100 ($ 1,100) $ 7,000 ($ 1,100) $ 7,000

Appropriation $ 4,834 $ 8,004 $ 8,004 $ 1,100 $ 9,104 $ 1,100 $ 9,104

Positions - - - - - - -

Fund description

The Western Executive Residence provides a secondary residence for the First Family and is a vacation residence for former

first families in the western part of the state. It provides a site for official functions for the Governor and for area- wide

governmental and civic organizations.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Purchases utility, telecommunication, pest control and repair services to maintain the

Governor's secondary residence.

$ 8,109 -

Purchases supplies necessary to maintain a secondary residence. $ 5,175 -

Actual Totals $ 13,284 -

17

Recommended Operating Budget, 2007- 09 Office of the Governor

Governor's Recommended Adjustments to Base Budget

Office of State Budget and Management ( 13005)

Recommended General Fund Budget and Positions

2007- 08 2008- 09

Base Budget

Requirements $ 6,143,729 $ 6,151,209

Receipts $ 213,669 $ 214,444

Appropriation $ 5,930,060 $ 5,936,765

Adjustments

Requirements - -

Receipts - -

Appropriation - -

Total

Requirements $ 6,143,729 $ 6,151,209

Receipts $ 213,669 $ 214,444

Recommended Appropriation $ 5,930,060 $ 5,936,765

Positions

Base Budget Positions 63.000 63.000

Reductions - -

Expansion - -

Recommended Positions 63.000 63.000

18

Recommended Operating Budget, 2007- 09 Office of the Governor

Base Budget and Results- Based Information

Budget Code 13005 Office of State Budget and Management - General Fund

Actual Expenditures

by Fiscal Year

Actual Positions

by Fiscal Year

Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 5,510,778 $ 6,162,613 $ 6,162,613 ($ 18,884) $ 6,143,729 ($ 11,404) $ 6,151,209

Receipts $ 646,710 $ 212,953 $ 212,953 $ 716 $ 213,669 $ 1,491 $ 214,444

Appropriation $ 4,864,068 $ 5,949,660 $ 5,949,660 ($ 19,600) $ 5,930,060 ($ 12,895) $ 5,936,765

Positions 61.000 63.000 63.000 - 63.000 - 63.000

19

Recommended Operating Budget, 2007- 09 Office of the Governor

Budget Code 13005 Office of State Budget and Management - General Fund

Fund 13005- 1310 Office of State Budget and Management — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 5,290,449 $ 6,062,613 $ 6,062,613 ($ 18,884) $ 6,043,729 ($ 11,404) $ 6,051,209

Receipts $ 524,354 $ 212,953 $ 212,953 $ 716 $ 213,669 $ 1,491 $ 214,444

Appropriation $ 4,766,095 $ 5,849,660 $ 5,849,660 ($ 19,600) $ 5,830,060 ($ 12,895) $ 5,836,765

Positions 60.000 63.000 63.000 - 63.000 - 63.000

Fund description

This fund is used to support the personnel and operations of the Office of State Budget and Management ( OSBM). OSBM

promotes the use of statewide standards for budgeting procedures and the sharing of common budgeting and planning

data across the state. OSBM delivers these services in a manner consistent with the objectives of the administration and in

accordance with the General Statutes and the Constitution of the State of North Carolina.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provides fiscal advice to the Governor to carry out his constitutional and statutory duties as

Director of the Budget; supervises the development of statewide budget and revenue data

used to inform decision- making and to prepare and present the Governor's budget to the

General Assembly; consults with agency officers on budget execution; coordinates North

Carolina's economic and financial report presented annually to bond rating agencies; and

serves as Secretary to the Council of State.

$ 719,681 4.000

Prepares the Governor's recommended operating and capital budget through budget and

policy research and analysis to ensure the efficient use of taxpayer dollars; administers the

legislatively certified budget by monitoring state agencies' expenditures to ensure

adherence to state laws and executive and/ or legislative intent; monitors and evaluates

programs, policies and legislation that affect State resources; and interprets budgeting

policy and procedures to assist state agencies.

$ 2,355,521 29.000

Forecasts and monitors state revenues through research and modeling of tax and

economic information to ensure the proper basis for budgeting; analyzes and approves

fiscal notes on rule changes; prepares and publishes economic and tax reports; and

responds to ad hoc requests for economic data and analysis.

$ 349,704 3.000

Conducts productivity studies and provides management analysis services to state and

local agencies to help them work more effectively and efficiently by assessing organization,

staffing, systems, processes, and service delivery and quality. These services and reports are

initiated at the direction of the Governor or General Assembly or at the request of an

agency or OSBM.

$ 452,818 5.000

Designs, builds, and maintains statewide budgeting, statistical, and managerial

applications and provides comprehensive IT administration for OSBM. Trains users of

applications.

$ 594,386 5.550

Oversees, reviews, and evaluates state agency information technology system requests to

ensure that the state derives value from these IT investments. Partners with the State's

Information Technology Services to drive consolidation of information technology

infrastructure across agencies.

$ 198,238 2.000

Assists government agencies and the public in using socioeconomic data and provides

census and state- agency statistics about North Carolina geographies. Responds to internal

and external needs for statistical information through analysis, special reports,

consultation, training, research, and data finding tools.

$ 137,239 2.650

20

Recommended Operating Budget, 2007- 09 Office of the Governor

Develops and tests mathematical models to produce official population estimates and

projections for the state, counties, and municipalities for revenue sharing and as a basis for

statewide planning, budgeting, and research.

$ 79,837 1.800

Provides fiscal, personnel and support services to both the Governor's Office and the Office

of State Budget and Management to ensure efficient internal office operations through

reception, budgeting, accounting, purchasing, payroll, and human resource functions.

$ 317,614 6.000

Provide for the uniform administration of state grants to non- state entities by ensuring

compliance with state laws, rules and reporting requirements including the withholding of

state funds from entities found in noncompliance.

$ 85,411 1.000

Actual Totals $ 5,290,449 60.000

Measures for the fund 2003- 04 2004- 05 2005- 06

Management reports completed annually 17 23 25

Completions of new computer applications and major enhancements

to existing applications

10 10 12

Budget revision requests 9,218 9,767 10,998

Participant hours in OSBM educational offerings 4,352 3,653 5,589

Fund 13005- 1311 Senate Bill 7 Hurricane Recovery Act — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 56,962 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 58,989 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation ($ 2,027) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions 1.000 - - - - - -

Fund description

The Hurricane Recovery Act of 2005 ( 2005 Session Laws, Chapter 1, Section 5.3) authorizes the establishment of time- limited

exempt positions to implement the Act. This temporary fund accounts for reserve funds to support one time- limited

Emergency Management Analyst position in the Office of State Budget and Management.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Coordinates the State's disaster recovery efforts resulting from six hurricanes ( Frances, Ivan,

Alex, Bonnie, Charlie, and Jeanne) that impacted the State during 2004 including the

administration of the Disaster Relief Reserve Fund, the monitoring of the implementation

of assistance programs and compliance with statutorily required reports.

$ 28,481 .500

Researches and compiles a guide that differentiates the roles, responsibilities and types of

assistance provided by federal, state and community organizations involved in disaster

recovery to assist in recovery and rebuilding efforts following a disaster. Develops a

network of leaders and service providers to facilitate the exchange of information for

stronger and speedier recovery.

$ 28,481 .500

Actual Totals $ 56,962 1.000

21

Recommended Operating Budget, 2007- 09 Office of the Governor

Fund 13005- 1910 Reserve — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 163,367 $ 100,000 $ 100,000 $ 0 $ 100,000 $ 0 $ 100,000

Receipts $ 63,367 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 100,000 $ 100,000 $ 100,000 $ 0 $ 100,000 $ 0 $ 100,000

Positions - - - - - - -

Fund description

This fund is used to deposit General Fund appropriations reserved to pay attorney fees for the Rules Review Commission in

Office of Administrative Hearings.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Pay Office of Administrative Hearing legal fees. $ 5,650 -

Carry forward funds to FY07 for Rules Impact Review. $ 157,717 -

Actual Totals $ 163,367 -

22

Recommended Operating Budget, 2007- 09 Office of the Governor

Governor's Recommended Adjustments to Base Budget

OSBM - Reserve for General Assembly Appropriation ( 13085)

Recommended General Fund Budget and Positions

2007- 08 2008- 09

Base Budget

Requirements $ 6,058,446 $ 6,058,446

Receipts $ 1,120,000 $ 1,120,000

Appropriation $ 4,938,446 $ 4,938,446

Adjustments

Requirements $ 1,500,000 $ 1,500,000

Receipts - -

Appropriation $ 1,500,000 $ 1,500,000

Total

Requirements $ 7,558,446 $ 7,558,446

Receipts $ 1,120,000 $ 1,120,000

Recommended Appropriation $ 6,438,446 $ 6,438,446

Positions

Base Budget Positions - -

Reductions - -

Expansion - -

Recommended Positions - -

23

Recommended Operating Budget, 2007- 09 Office of the Governor

Appropriation Items -- Recommended Adjustments

Expansion

2007- 08 2008- 09

Reserves and Transfers

1. Reserve for Military Morale, Recreation, and Welfare

Funds are recommended to sustain historical grants to military installations for

the purposes of community service and quality of life programs for military

members and their families in North Carolina.

Appropriation $ 1,000,000 $ 1,000,000

2. Fire Protection Grants- in- Aid Supplement

Funds are recommended to increase the funding for the Fire Protection

Grants- in- Aid program. Many new state- owned facilities have been

constructed statewide. This funding will assist local fire districts that provide

fire protection and other services to state- owned facilities.

Appropriation $ 500,000 $ 500,000

Total Recommended Expansion

2007- 08 2008- 09

Recurring

Requirements $ 1,500,000 $ 1,500,000

Receipts -

-

Appropriation $ 1,500,000 $ 1,500,000

Positions - -

Nonrecurring

Requirements - -

Receipts -

-

Appropriation - -

Positions - -

24

Recommended Operating Budget, 2007- 09 Office of the Governor

Total Recommended Adjustments for

OSBM - Reserve for General Assembly

Appropriation ( 13085)

2007- 09

2007- 08 2008- 09

Recurring

Requirements $ 1,500,000 $ 1,500,000

Receipts -

-

Appropriation $ 1,500,000 $ 1,500,000

Positions - -

Nonrecurring

Requirements - -

Receipts -

-

Appropriation - -

Positions - -

Total Appropriation Adjustments $ 1,500,000 $ 1,500,000

Total Position Adjustments - -

25

Recommended Operating Budget, 2007- 09 Office of the Governor

Base Budget and Results- Based Information

Budget Code 13085 OSBM - Reserve for General Assembly Appropriation

Actual Expenditures

by Fiscal Year

2002 data includes a $ 36 million transfer to the State

Employees Health Plan.

Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 10,270,795 $ 6,656,467 $ 6,656,467 ($ 598,021) $ 6,058,446 ($ 598,021) $ 6,058,446

Receipts $ 1,273,797 $ 1,120,000 $ 1,120,000 $ 0 $ 1,120,000 $ 0 $ 1,120,000

Appropriation $ 8,996,998 $ 5,536,467 $ 5,536,467 ($ 598,021) $ 4,938,446 ($ 598,021) $ 4,938,446

Positions - - - - - - -

26

Recommended Operating Budget, 2007- 09 Office of the Governor

Budget Code 13085 OSBM - Reserve for General Assembly Appropriation

Fund 13085- 1022 Special Appropriations — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 5,262,795 $ 1,656,467 $ 1,656,467 ($ 598,021) $ 1,058,446 ($ 598,021) $ 1,058,446

Receipts $ 140,797 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 5,121,998 $ 1,656,467 $ 1,656,467 ($ 598,021) $ 1,058,446 ($ 598,021) $ 1,058,446

Positions - - - - - - -

Fund description

This fund is used to collect and distribute special appropriations made to non- state entities as directed by the General

Assembly. Funds in this account are allocated to specific non- state entities in accordance with Session Law and/ or the Joint

Conference Committee Report on the Continuation, Expansion and Capital Budgets.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Disburse special appropriations to over 40 local governments and nonprofit organizations

identified by the General Assembly in Joint Conference Committee report dated August 8,

2005.

$ 5,122,000 -

Provide expenditures for military affairs. $ 23,499 -

Carry forward unexpended funds for Military Affairs to fiscal year 2006- 07. $ 117,296 -

Actual Totals $ 5,262,795 -

Fund 13085- 1023 Fire Protection Grant Fund — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 5,000,000 $ 5,000,000 $ 5,000,000 $ 0 $ 5,000,000 $ 0 $ 5,000,000

Receipts $ 1,120,000 $ 1,120,000 $ 1,120,000 $ 0 $ 1,120,000 $ 0 $ 1,120,000

Appropriation $ 3,880,000 $ 3,880,000 $ 3,880,000 $ 0 $ 3,880,000 $ 0 $ 3,880,000

Positions - - - - - - -

Fund description

This fund is statutorily established in the Office of State Budget and Management ( G. S. 58- 85A- 1) for the purpose of

compensating local fire districts and political subdivisions of the State for providing local fire protection to State owned

buildings and their contents.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide aid to North Carolina fire departments. $ 4,873,235 -

Carry forward unexpended aid for NC fire departments to fiscal year 2006- 07. $ 126,765 -

Actual Totals $ 5,000,000 -

27

Recommended Operating Budget, 2007- 09 Office of the Governor

Fund 13085- 1900 Reserves and Transfers — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 8,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 13,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation ($ 5,000) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

This fund is used to deposit General Fund appropriations reserved for a specific purpose as directed by the General

Assembly. Funds in this account are transferred to state agencies and institutions in accordance with Session Law and/ or the

Joint Conference Committee Report on the Continuation, Expansion and Capital Budgets.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Disburse special appropriation carried forward from fiscal year 2004- 05. $ 8,000 -

Actual Totals $ 8,000 -

28

Recommended Operating Budget, 2007- 09 Office of the Governor

Base Budget and Results- Based Information

Budget Code 23004 OSBM - Education Lottery Reserve

Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 50,000,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal $ 50,000,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

29

Recommended Operating Budget, 2007- 09 Office of the Governor

Budget Code 23004 OSBM - Education Lottery Reserve

Fund 23004- 2C01 Education Lottery Reserve — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 50,000,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

The NC State Education Lottery was established in 2005 to generate funds for the following public purposes: to reduce class

size in early grades, to support academic pre- kindergarten programs for at risk four year olds, to support public school

construction, and to fund college and university scholarships. As part of the Act ( S. L. 2005- 344) that created the lottery, an

Education Lottery Reserve was established that could be used in event net revenues from the lottery fell short of the annual

appropriation for the public purposes listed above. The Education Lottery Reserve receives a transfer from the Education

Lottery Fund equal to five percent ( 5%) of the net revenue of the prior year and is capped at $ 50 million. ( Note: Lottery

proceeds generated from the first four months of the start- up year ( March 2006- June 2006) were transferred at the end of FY

2005- 06 to fully fund the reserve at $ 50 million. The General Assembly made the first lottery appropriation for education

using lottery proceeds generated during FY 2006- 07, the first full year of lottery activity).

30

Recommended Operating Budget, 2007- 09 Office of the Governor

Governor's Recommended Adjustments to Base Budget

North Carolina Housing Finance Agency ( 13010)

Recommended General Fund Budget and Positions

2007- 08 2008- 09

Base Budget

Requirements $ 4,750,945 $ 4,750,945

Receipts - -

Appropriation $ 4,750,945 $ 4,750,945

Adjustments

Requirements $ 6,500,000 -

Receipts - -

Appropriation $ 6,500,000 -

Total

Requirements $ 11,250,945 $ 4,750,945

Receipts - -

Recommended Appropriation $ 11,250,945 $ 4,750,945

Positions

Base Budget Positions - -

Reductions - -

Expansion - -

Recommended Positions - -

31

Recommended Operating Budget, 2007- 09 Office of the Governor

Appropriation Items -- Recommended Adjustments

Expansion

2007- 08 2008- 09

Housing Programs

1. North Carolina Housing Trust Fund

Funding is recommended to support the Housing Trust Fund. This fund helps to

alleviate the shortage of decent, safe, and affordable housing for North Carolina

citizens with low to moderate incomes.

Appropriation - Nonrecurring $ 5,000,000 -

2. Home Protection Pilot Program

The Governor recommends nonrecurring funds to continue the Home

Protection Pilot program that assists homeowners in 26 counties who are at risk

of losing their homes due to job loss. The program offers short or long term

loans to qualifying homeowners so that they can maintain their home while

regaining employment.

Appropriation - Nonrecurring $ 1,500,000 -

Total Recommended Expansion

2007- 08 2008- 09

Recurring

Requirements - -

Receipts -

-

Appropriation - -

Positions - -

Nonrecurring

Requirements $ 6,500,000 -

Receipts -

-

Appropriation $ 6,500,000 -

Positions - -

32

Recommended Operating Budget, 2007- 09 Office of the Governor

Total Recommended Adjustments for

North Carolina Housing Finance Agency ( 13010)

2007- 09

2007- 08 2008- 09

Recurring

Requirements - -

Receipts -

-

Appropriation - -

Positions - -

Nonrecurring

Requirements $ 6,500,000 -

Receipts -

-

Appropriation $ 6,500,000 -

Positions - -

Total Appropriation Adjustments $ 6,500,000 -

Total Position Adjustments - -

33

Recommended Operating Budget, 2007- 09 Office of the Governor

Base Budget and Results- Based Information

Budget Code 13010 NC Housing Finance - Home Match

Actual Expenditures

by Fiscal Year

State Tax Credit began ( 2005 --$ 16.6 million, 2006 -- $ 32.5 million),

plus one- time appropriation for Housing Trust Fund and Home

Protection Pilot in 2005 and 2006.

Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 42,926,596 $ 22,188,445 $ 22,188,445 ($ 17,437,500) $ 4,750,945 ($ 17,437,500) $ 4,750,945

Receipts $ 32,475,651 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 10,450,945 $ 22,188,445 $ 22,188,445 ($ 17,437,500) $ 4,750,945 ($ 17,437,500) $ 4,750,945

Positions - - - - - - -

Recommended Operating Budget, 2007- 09 Office of the Governor

34

Budget Code 13010 NC Housing Finance - Home Match

Services for the budget code

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Transfer state match for the federal Home Program to budget code 23010 fund 2200. $ 1,750,945 -

Transfer annual General Fund appropriation for the Housing Trust Fund to budget codes

63010 and 63011.

$ 8,000,000 -

Transfer of funds received from the Department of Revenue for the State Tax Credit

program.

$ 32,475,651 -

Transfer General Fund appropriations for the Home Protection Pilot to budget code 23010

fund 2950.

$ 700,000 -

Actual Totals $ 42,926,596 -

Fund 13010- 1100 Housing Finance Agency - Appropriations — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 42,926,596 $ 22,188,445 $ 22,188,445 ($ 17,437,500) $ 4,750,945 ($ 17,437,500) $ 4,750,945

Receipts $ 32,475,651 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 10,450,945 $ 22,188,445 $ 22,188,445 ($ 17,437,500) $ 4,750,945 ($ 17,437,500) $ 4,750,945

Positions - - - - - - -

Fund description

This fund receives and disburses appropriations made by the General Assembly that are then transferred to other funds that

are actively managed by the North Carolina Housing Finance Agency ( NCHFA). The fund receives appropriations for the

state's partial matching support for the federal HOME Program, the annual Housing Trust Fund, the annual State Tax Credits,

and the Home Protection Program. These funds are used to increase the supply of housing for North Carolinians who have

very low or low to moderate incomes. The Agency provides financing and technical assistance for the development,

rehabilitation, or purchase of affordable housing, both rental and home ownership. In addition, it coordinates rental and

mortgage assistance.

35

Recommended Operating Budget, 2007- 09 Office of the Governor

Base Budget and Results- Based Information

Budget Code 23010 NC Housing Finance - Special

Actual Expenditures

by Fiscal Year

Actual Positions

by Fiscal Year

2003 - Contract with US HUD to administer Section 8.

2004 and 2005 - Hurricane Floyd Disaster Relief

winding down. $ 100,628 cash adjustment for 2005- 06,

plus increase in state funding for Housing Trust Fund,

Home Protection Pilot and Apartment Housing.

Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 46,146,026 $ 57,141,118 $ 57,141,118 $ 0 $ 57,141,118 $ 0 $ 57,141,118

Receipts $ 67,456,870 $ 57,141,118 $ 57,141,118 $ 0 $ 57,141,118 $ 0 $ 57,141,118

Chng Fund Bal $ 21,310,844 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions 116.000 107.000 116.000 - 116.000 - 116.000

36

Recommended Operating Budget, 2007- 09 Office of the Governor

Budget Code 23010 NC Housing Finance - Special

Fund 23010- 2100 North Carolina Housing Finance Agency — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 9,431,564 $ 9,772,643 $ 9,772,643 $ 0 $ 9,772,643 $ 0 $ 9,772,643

Receipts $ 9,522,448 $ 9,772,643 $ 9,772,643 $ 0 $ 9,772,643 $ 0 $ 9,772,643

Chng Fund Bal $ 90,884 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions 116.000 107.000 116.000 - 116.000 - 116.000

Fund description

This fund is used for the operational transactions of the North Carolina Housing Finance Agency. The Agency is a self-supporting

agency with an independent board of directors. The Agency was created to increase the supply of housing for

North Carolinians who have very- low or low to moderate incomes. The Agency provides financing and technical assistance

for the development, rehabilitation, or purchase of affordable housing, both rental and home ownership. In addition, it

coordinates rental and mortgage assistance. All operational functions are in support of the above listed activities, as well as

those of other funds. The North Carolina Housing and Finance agency uses a cost allocation system that distributes all

personnel and operating costs to its program areas. The distribution of dollars listed below not only includes the direct

program staff for that service area, but also includes the time spent by support staff, human resources, accounting,

budgeting, and upper management.

The following are the full titles to each of the acronyms listed in the service statements below: Rental Production Program

( RPP), Supportive Housing Development Program ( SHDP), Supportive Housing Development Program 400 ( SHDP400),

Preservation Loan Program ( PLP), Preservation Loan Program 400 ( PLP400), New Home Loan Pool ( NHLP), Self Help Loan

Pool ( SHLP), Individual Development Account Program ( IDAP), Down payment Assistance Program ( DAP), Rural Opportunity

Mortgage ( ROM), Single- Family Rehabilitation Program ( SFR), Urgent Repair Program ( URP), Home Protection Pilot Program

( HPPP), KEY program = This program provides a bridge subsidy for households on disability income who have not yet

received a Section 8 housing choice voucher.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide financing and technical assistance for the development of affordable rental

housing ( including operational funding for funds 2200 and 2800). Programs supported

include RPP, SHDP, SHDP400, Supportive Housing Predevelopment Loan, and Housing

Credit program.

$ 3,448,908 42.419

Provide financing and technical assistance for the rehabilitation of affordable rental

housing ( including operational funding for funds 2200 and 2800). Programs supported

include RPP, SHDP, SHDP400, Supportive Housing Predevelopment Loan, Housing Credit

program, PLP, and PLP400.

$ 546,615 6.723

Provide financing and technical assistance for affordable home ownership activities

( including operational funding for fund 2200). Programs supported include NHLP, SHLP,

IDAP, DAP, First- Time Homebuyer Program, and ROM.

$ 3,746,953 46.084

Provide financing and technical assistance for rehabilitation of individually owned homes

to preserve affordable housing ( including operational funding for fund 2200). Programs

supported include Single- Family Rehabilitation Program, and Urgent Repair Program.

$ 531,166 6.533

Provide financing and technical assistance for rental assistance ( including operational

funding for funds 2101, 2102, 2500). Programs supported include KEY, SHDP400, PLP400,

Section 8, and Section 8 rehabilitation.

$ 510,955 6.284

Providing financing and technical assistance for mortgage assistance for existing

homeowners through the Home Protection Pilot Program ( including operational funding

for fund 2950).

$ 646,967 7.957

Actual Totals $ 9,431,564 116.000

37

Recommended Operating Budget, 2007- 09 Office of the Governor

Measures for the fund 2003- 04 2004- 05 2005- 06

Rental housing units developed or rehabilitated 213 217 552

Homeownership units financed 1,782 1,814 1,842

Owner- occupied homes repaired or rehabilitated 685 776 678

Fund 23010- 2101 Section 8 — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 18,548,675 $ 18,736,125 $ 18,736,125 $ 0 $ 18,736,125 $ 0 $ 18,736,125

Receipts $ 18,514,816 $ 18,736,125 $ 18,736,125 $ 0 $ 18,736,125 $ 0 $ 18,736,125

Chng Fund Bal ($ 33,859) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

The Section 8 rental assistance program is a federal project- based rental assistance program that helps eligible North

Carolinians with low incomes gain access to housing in new construction or substantially rehabilitated developments.

Payments are made to property managers, not individual tenants.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Disburse federal funds in compliance with Section 8 regulation to ensure that each

property receives an accurately calculated amount of rental assistance each month.

Payments made directly to property managers.

$ 18,548,675 -

Actual Totals $ 18,548,675 -

Measures for the fund 2003- 04 2004- 05 2005- 06

Percentage of Section 8 funds disbursed to properties within 2

business days of receipt

100 % 100 % 100 %

Percentage of properties visited annually by agency staff to ensure

compliance with Section 8 regulations 1

40 % 35 % 66 %

1The agency's goal is to visit every property at least once every 3 years.

Fund 23010- 2102 Section 8 Rehabilitation — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 338,510 $ 302,100 $ 302,100 $ 0 $ 302,100 $ 0 $ 302,100

Receipts $ 336,396 $ 302,100 $ 302,100 $ 0 $ 302,100 $ 0 $ 302,100

Chng Fund Bal ($ 2,114) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

38

Recommended Operating Budget, 2007- 09 Office of the Governor

Fund description

The Section 8 Rehabilitation rent assistance program is a federal project- based rental assistance program that helps eligible

North Carolinians who have low incomes gain access to housing in moderately rehabilitated developments. Payments are

made to property mangers, not individual tenants.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Disburse federal funds in compliance with Section 8 regulation to ensure that each

property receives an accurately calculated amount of rental assistance each month.

Payments made directly to property managers.

$ 338,510 -

Actual Totals $ 338,510 -

Measures for the fund 2003- 04 2004- 05 2005- 06

Percentage of Section 8 funds disbursed to properties within 2

business days of receipt

100 % 100 % 100 %

Percentage of properties visited annually by agency staff to ensure

compliance with Section 8 regulations 1

100 % 100 % 100 %

1The agency's goal is to visit every property at least once every 3 years.

Fund 23010- 2200 NCHFA- Home Program — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 15,911,758 $ 27,395,000 $ 27,395,000 $ 0 $ 27,395,000 $ 0 $ 27,395,000

Receipts $ 37,243,578 $ 27,395,000 $ 27,395,000 $ 0 $ 27,395,000 $ 0 $ 27,395,000

Chng Fund Bal $ 21,331,820 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

The HOME program is a federal block grant, based on population and housing needs. The funds can be used to finance the

acquisition, construction, and rehabilitation of affordable housing, down payment assistance, and rent subsidies. The North

Carolina Housing Finance Agency administers the state's share of HOME Program funds to finance affordable housing in

partnership with local governments, nonprofit organizations, and for- profit developers. The North Carolina General

Assembly annually appropriates a portion of the 25% matching funds required to receive the federal funds.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide financing for the development and rehabilitation of affordable rental housing and

owner- occupied housing.

$ 11,365,664 -

Provide financing for affordable homeownership activities. $ 4,546,094 -

Actual Totals $ 15,911,758 -

39

Recommended Operating Budget, 2007- 09 Office of the Governor

Measures for the fund 2003- 04 2004- 05 2005- 06

Rental housing units developed or rehabilitated 465 546 543

Homeownership units financed 370 621 900

Owner- occupied homes repaired or rehabilitated 194 72 14

Fund 23010- 2500 Key Program — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 7,970 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 1,008,718 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal $ 1,000,748 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

This is a new program that enables extremely- low, very- low, and low- income disabled persons to have access to affordable

housing by providing rental assistance payments for disabled households in specific developments. Payments are generally

of amounts smaller than $ 300.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide rental assistance payments for disabled persons in specific rental housing

developments.

$ 7,970 -

Actual Totals $ 7,970 -

Measures for the fund 2003- 04 2004- 05 2005- 06

Households which received rental assistance payments - - 19

Fund 23010- 2800 State Disaster — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 779,664 $ 935,250 $ 935,250 $ 0 $ 935,250 $ 0 $ 935,250

Receipts $ 115,594 $ 935,250 $ 935,250 $ 0 $ 935,250 $ 0 $ 935,250

Chng Fund Bal ($ 664,070) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

This fund receives state appropriation for any disaster recovery efforts. It finances the repair and replacement of housing

damaged or destroyed by natural disasters for low- and moderate- income households. It can be used for any housing

recovery activities appropriate to a disaster ( for example: rehabilitation, new construction, and rental assistance).

40

Recommended Operating Budget, 2007- 09 Office of the Governor

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Finance the repair and replacement of housing for the Floyd disaster recovery. $ 779,664 -

Actual Totals $ 779,664 -

Measures for the fund 2003- 04 2004- 05 2005- 06

Affordable housing units repaired or developed 0 50 0

Fund 23010- 2950 Home Protection Pilot — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 1,127,885 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 715,320 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal ($ 412,565) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

The purpose of this fund is to help North Carolina homeowners at risk of losing their homes due to job loss caused by layoffs,

by providing counseling and interim loans ( both short term assistance and longer term assistance) to help residents

maintain their homes while regaining employment. Assistance can equal up to 18 months worth of mortgage payments and

interest, property insurance, and taxes.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide loans as short term assistance for homeowners at risk of foreclosure. Usually used

to help clients cover missed payments and bring their mortgage up to current good

standing.

$ 146,751 -

Provide loans as longer term assistance for homeowners at risk of foreclosure up to 18

months.

$ 981,134 -

Actual Totals $ 1,127,885 -

Measures for the fund 2003- 04 2004- 05 2005- 06

Loans made to homeowners 0 23 114

41

Recommended Operating Budget, 2007- 09 Office of the Governor

Base Budget and Results- Based Information

Budget Code 74660 Governor- Information Technology Services- Internal Service

Actual Expenditures

by Fiscal Year

Actual Positions

by Fiscal Year

Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 165,955,394 $ 193,667,326 $ 203,508,903 $ 0 $ 203,508,903 $ 0 $ 203,508,903

Receipts $ 159,947,228 $ 188,531,809 $ 197,819,438 $ 0 $ 197,819,438 $ 0 $ 197,819,438

Chng Fund Bal ($ 6,008,166) ($ 5,135,517) ($ 5,689,465) $ 0 ($ 5,689,465) $ 0 ($ 5,689,465)

Positions 411.000 407.000 412.000 - 412.000 - 412.000

42

Recommended Operating Budget, 2007- 09 Office of the Governor

Budget Code 74660 Governor- Information Technology Services- Internal

Service

Fund 74660- 7100 ITS - Administration — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 9,298,387 $ 9,148,406 $ 9,585,319 $ 0 $ 9,585,319 $ 0 $ 9,585,319

Receipts $ 9,558,474 $ 9,398,969 $ 9,520,352 $ 0 $ 9,520,352 $ 0 $ 9,520,352

Chng Fund Bal $ 260,087 $ 250,563 ($ 64,967) $ 0 ($ 64,967) $ 0 ($ 64,967)

Positions 72.000 65.000 73.000 - 73.000 - 73.000

Fund description

The Office of Information Technology Services' ( ITS) administration fund is to provide oversight and support to the agency's

program areas. This support includes financial administration ( budgeting, fiscal and human resources management); agency

purchasing; as well as IT statewide procurement administration; and the agency's around the clock facilities operations. The

administrative fund also includes the Operational Excellence Program ( OEP), which provides a strategic and standardized

approach to managing IT services.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide support to ITS through the oversight and operation of the following items:

electrical, HVAC, space allocation, building layout, furniture, cubicles, construction,

landscaping, janitorial, fire suppression, security access control system, warehousing ( on-site

and off- site), shipping and receiving, uninterrupted power supply ( UPS) maintenance,

and generator maintenance.

$ 4,094,867 8.000

Provide executive/ program management techniques for ITS staff, through program

oversight styles, strategic planning, scope development, project planning and tracking, and

development of design teams that develop tailored processes for program

implementation. Operational Excellence Program also provides multi- tiered training

programs, for State agencies, from familiarization to expert training on the Information

Technology Infrastructure Library ( ITIL) and its associated processes and functions.

$ 1,198,220 3.000

Provide procurement services for ITS purchasing needs as well as Statewide IT procurement

for all state agencies to achieve better pricing through bulk purchasing.

$ 1,382,548 17.000

Provide personnel/ accounting services to support the operation of ITS. Services include,

but are not limited to, the following: human resource management; budgeting; accounts

payable/ accounts receivable, payroll, cash management, Comprehensive Annual Financial

Report ( CAFR), monthly and year- end close out processing; and, agency position control

and salary reserve management.

$ 2,622,752 44.000

Actual Totals $ 9,298,387 72.000

Measures for the fund 2003- 04 2004- 05 2005- 06

Percentage of meeting industry standards for incident resolution

timeframes ( annually)

- 2.00 % 35.00 %

Percentage increase in first call resolution rates ( annually) - - 2.00 %

Percentage decrease in Emergency/ Urgent changes required

( annually)

- - 18.00 %

43

Recommended Operating Budget, 2007- 09 Office of the Governor

Fund 74660- 7105 Business Relations Management — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 0 $ 0 $ 99,102 $ 0 $ 99,102 $ 0 $ 99,102

Receipts $ 0 $ 0 $ 675,476 $ 0 $ 675,476 $ 0 $ 675,476

Chng Fund Bal $ 0 $ 0 $ 576,374 $ 0 $ 576,374 $ 0 $ 576,374

Positions - - - - - - -

Fund description

( SEE 7110)

Fund 74660- 7110 Customer Public Relations Management — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 2,407,227 $ 3,104,823 $ 3,065,388 $ 0 $ 3,065,388 $ 0 $ 3,065,388

Receipts $ 2,433,401 $ 2,993,999 $ 2,364,038 $ 0 $ 2,364,038 $ 0 $ 2,364,038

Chng Fund Bal $ 26,174 ($ 110,824) ($ 701,350) $ 0 ($ 701,350) $ 0 ($ 701,350)

Positions 34.000 34.000 34.000 - 34.000 - 34.000

Fund description

This fund is used to provide expert technical ( Help Desk) support to ITS customers; provide liaison services to key ITS

customers; assist customers in successful problem resolution and provide public information about service offerings and

operational successes.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Respond to customer requests and incidents and provide first and second level support as

appropriate.

$ 1,556,403 26.000

Provide liaison support to the largest state agencies. $ 401,698 3.000

Own, coordinate and support the Incident, Problem and Service Level Management

Processes and support the Operational Excellence Program.

$ 343,260 4.000

Provide a Service Desk Management Application Tool ( iWise) to ITS and as a revenue

generating service for customers.

$ 105,866 1.000

Actual Totals $ 2,407,227 34.000

Measures for the fund 2003- 04 2004- 05 2005- 06

Customer meetings 276 240 480

Percentage of employee ITIL Training 0.0 % 18.00 % 100.00 %

Incidents responded to 76,494 56,139 61,205

44

Recommended Operating Budget, 2007- 09 Office of the Governor

Fund 74660- 7200 Enterprise Technology Strategies — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 23,815 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal ($ 23,815) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

This fund is used to research new and emerging communications and information technologies and assist customers in

matching technologies with their current and prospective needs; to develop Statewide Technical Architecture policies,

standards, and best practices and recommend them for adoption by the State Chief Information Officer ( CIO). Disseminate

technical architecture standards and assist agencies in interpreting them and designing projects; identify critical quality

control issues in technology projects; and identify quality training tools and programs to help managers optimize their use

of new technologies. ( See budget code 24667, fund code 2730.)

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

This fund is no longer used. Activity in this fund was moved to budget code 24667, fund

2730. Requirements shown represent dollar amount needed to clear negative cash balance.

$ 23,815 -

Actual Totals $ 23,815 -

Fund 74660- 7217 Computing Services — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 66,511,058 $ 76,196,378 $ 74,765,831 $ 0 $ 74,765,831 $ 0 $ 74,765,831

Receipts $ 62,768,243 $ 73,670,332 $ 73,670,332 $ 0 $ 73,670,332 $ 0 $ 73,670,332

Chng Fund Bal ($ 3,742,815) ($ 2,526,046) ($ 1,095,499) $ 0 ($ 1,095,499) $ 0 ($ 1,095,499)

Positions 139.000 143.000 138.000 - 138.000 - 138.000

Fund description

This fund is used for ITS to provide enterprise- class, highly efficient, around- the- clock operations in the ITS Data Centers as

well as at remote computer room locations; implementation and support of hardware and software systems for government

agencies, State and local; provide consultation services and manage requests for mainframe and server services; provide

diagnostic capabilities for infrastructure troubleshooting; provide support and managed services including systems

selection and implementation; offer distributed computer services across several platforms; and drive server consolidation

initiatives.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Manage mainframe hosting solutions for mission- critical applications for State and local

governments. Build and maintain highly available systems that ensure key agency business

functions perform reliably.

$ 39,536,213 62.000

Provide centrally managed distributed hosting services for State agency applications. Build

and maintain hosting services in a reliable, efficient manner that leverages economies of

scale.

$ 20,463,672 33.500

45

Recommended Operating Budget, 2007- 09 Office of the Governor

Deliver core system software services for database, middleware, and programming tools.

Install and maintain software solutions that provide a technology framework for agency

business applications.

$ 3,932,715 40.100

Maintain an integrated, statewide directory service that provides global access to network

resources. Provide a flexible and secure means for storing, accessing, and managing user

and resource data.

$ 2,578,458 3.400

Actual Totals $ 66,511,058 139.000

Measures for the fund 2003- 04 2004- 05 2005- 06

Percentage of Priority 1, 2 and 3 incidents resolved in target

timeframe

65.00 % 70.00 % 75.00 %

Documented change management requests ( monthly average) 190 260 310

Percentage of mainframe availability ( up- time) 99.82 % 99.00 % 99.40 %

Fund 74660- 7224 State Telecommunications — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 80,587,859 $ 94,884,698 $ 94,406,421 $ 0 $ 94,406,421 $ 0 $ 94,406,421

Receipts $ 78,111,797 $ 92,577,100 $ 92,577,100 $ 0 $ 92,577,100 $ 0 $ 92,577,100

Chng Fund Bal ($ 2,476,062) ($ 2,307,598) ($ 1,829,321) $ 0 ($ 1,829,321) $ 0 ($ 1,829,321)

Positions 120.000 129.000 121.000 - 121.000 - 121.000

Fund description

This fund is used to provide secure data network connections, an array of telephone services, contact center capabilities, and

video collaboration services to the agencies and institutions of North Carolina state government. These services enable the

daily operation of all agencies by providing access to information and the ability to communicate with constituents. Using

rigorous business analysis, State Telecommunications determines the best value for the state to deliver these services

through the acquisition and operation of systems or contracting to outside providers. Resources in this fund are used to

determine the application, interoperability and cost of technology required to meet agencies business needs as well as the

ongoing operation, maintenance and management of the aforementioned services.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide, support, and contract for voice telecommunications services for State agencies

and authorized local governmental entities that enables them to communicate effectively

and efficiently with their constituents.

$ 44,515,258 51.980

Provides Wide Area Network ( WAN) and Local Area Network ( LAN) service to any

authorized government entity. The WAN Service offers statewide internet protocol ( IP)

connectivity at commercially available data rates and connects Customer's LANs to other

resources connected to the WAN or Internet. LAN Service provides network infrastructure

within a building or campus environment enabling data communications among local

computing and printing resources.

$ 31,438,232 55.760

Videoconferencing technologies, allows face- to- face interaction, with two- way video and

audio communications are supported by ITS. Video applications supported over the

network include distance learning for K- 12 and higher education, state agency meetings,

statewide training activities, emergency response assistance, public hearings, and many

more. Web Conferencing and Video streaming services are also available.

$ 4,634,369 12.260

Actual Totals $ 80,587,859 120.000

46

Recommended Operating Budget, 2007- 09 Office of the Governor

Measures for the fund 2003- 04 2004- 05 2005- 06

Percentage of WAN available connections to customers ( based on

percentage of weekly network up- time)

98.00 % 99.00 % 99.30 %

Percentage of cost compared to state telecommunication networks of

similar size and scope 1

10.00 % 10.00 % 10.00 %

Percentage of incidents responded to in 4 hours 90.00 % 93.00 % 95.00 %

1The goal is to be in the top 20% of peer group as measured by independent

benchmark group.

Fund 74660- 7228 Enterprise Solutions — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 5,391,327 $ 8,503,835 $ 8,592,008 $ 0 $ 8,592,008 $ 0 $ 8,592,008

Receipts $ 5,303,796 $ 7,258,291 $ 7,210,703 $ 0 $ 7,210,703 $ 0 $ 7,210,703

Chng Fund Bal ($ 87,531) ($ 1,245,544) ($ 1,381,305) $ 0 ($ 1,381,305) $ 0 ($ 1,381,305)

Positions 31.000 27.000 31.000 - 31.000 - 31.000

Fund description

This fund is used to provide statewide IT applications via a shared services delivery model. This fund also provides web

application development, support, and consulting services to State and local agencies. The current and in- process offering

portfolio for this fund includes the following : e- Mail and Calendar Services; Common Payment Services for credit card and

pre- authorized debits transaction processing; Web application development and support services; IT Project Management

Services; Electronic Document Management Services; Data Warehouse Services, and Software Quality Assurance Services.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide the State of NC with an e- mail messaging, calendar, e- mail relay, spam filtering, and

virus filtering solution delivered via a shared service model that maximizes economies of

scale and reduces overall costs for providing these services to State and local agencies.

$ 1,781,604 7.500

Monitor and maintain a Common Payment shared service infrastructure for performing

payment gateway services in support of credit card and pre- authorized debits transaction

processing needs for the State of NC in a highly cost effective manner. Drive the adoption

and use of the Common Payment Service by providing technical assistance and support to

new State Agencies added to the service.

$ 715,084 3.200

Provide certified Project Management Professionals ( PMP) for timely & material project

management services to State agencies in order to increase the probability of a successful

completion of any given IT project. Provide analysis, design, development, implementation,

and technical support for web based applications and web sites in order to facilitate the

deployment of these applications when it is not within the capabilities of any given agency

to perform these services internally.

$ 1,932,394 17.030

Provide the State of NC with a highly reliable, scalable, secure, and feature rich electronic

document management shared service platform delivered via the Internet that will enable

State agencies with the capability to store, retrieve, workflow, and manage their electronic

document assets which in turn will reduce agency operating costs, increase employee

productivity, and improve customer/ citizen service and satisfaction.

$ 704,460 1.200

47

Recommended Operating Budget, 2007- 09 Office of the Governor

Provide the State of NC with a highly reliable, scalable, secure, and cost effective data

warehousing shared service platform that includes integrated and feature rich tools that

State agencies can use to capture, store and leverage information for monitoring,

measuring, and optimizing current agency/ program performance with the goal of

delivering enhanced services and value to the citizens of NC.

$ 133,651 2.040

Provide a highly reliable, scalable, secure, and cost effective Software Quality Assurance

( SQA) shared service platform that will be leveraged by State agency IT organizations to

support and execute functional and performance related software testing tasks for agency

IT business applications in a comprehensive and consistent manner. Improve the quality of

software applications while reducing the costs associated with software defects on a post

production basis.

$ 124,134 .030

Actual Totals $ 5,391,327 31.000

Measures for the fund 2003- 04 2004- 05 2005- 06

Calendar accounts provided 9,041 10,236 11,094

E- mail accounts provided 26,276 29,578 30,711

Credit Card transactions processed 916,217 1,192,155 1,482,092

Pre- authorized debits transactions processed 723,455 1,012,321 1,332,044

Fund 74660- 7230 Security and Business Recovery — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 1,693,863 $ 1,801,424 $ 2,600,789 $ 0 $ 2,600,789 $ 0 $ 2,600,789

Receipts $ 1,693,861 $ 2,633,118 $ 2,633,118 $ 0 $ 2,633,118 $ 0 $ 2,633,118

Chng Fund Bal ($ 2) $ 831,694 $ 32,329 $ 0 $ 32,329 $ 0 $ 32,329

Positions 9.000 9.000 9.000 - 9.000 - 9.000

Fund description

The purpose of the ITS Information Security fund is to safeguard the State's information technology infrastructure against

unauthorized use, disclosure, modification, or loss. This fund is used to help identify, mitigate, and manage risks to support

the secure and sustainable delivery of IT services to help agencies meet the needs of our citizens. It oversees the information

protection of the State's telecommunications, networking, computing, and enterprise business applications.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Oversee strategic planning and policy development for the security of the State's

information technology infrastructure to coordinate the deployment of security

technology to benefit from economies of scale, improve agency security, and protect

citizen's data.

$ 308,327 2.000

Preserve the security of the State's IT infrastructure by providing an in- depth, multi- layered

security approach, including vulnerability management, external and internal policy

compliance scans, network intrusion prevention/ detection support, risk- based asset

security management, and expert analysis with metrics and reports.

$ 1,385,536 7.000

Actual Totals $ 1,693,863 9.000

48

Recommended Operating Budget, 2007- 09 Office of the Governor

Measures for the fund 2003- 04 2004- 05 2005- 06

Percentage of infrastructure security incidents and requests resolved

within targeted timeframe

- - 89 %

Percentage of Change Tasks resolved within targeted timeframe - - 93 %

Fund 74660- 7240 Oracle ULA — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 0 $ 0 $ 9,049,995 $ 0 $ 9,049,995 $ 0 $ 9,049,995

Receipts $ 0 $ 0 $ 9,049,995 $ 0 $ 9,049,995 $ 0 $ 9,049,995

Chng Fund Bal $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

Provide centralized, cost- effective universal software licensing for the full range of Oracle database and other products used

by state agencies. Individual agency licensing and software maintenance agreements have been consolidated into one state

agreement, and agencies have the ability to consume an unlimited amount of software license for covered products thru

June 2009.

Fund 74660- 7250 Desktop Support Services — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 41,858 $ 27,762 $ 1,344,050 $ 0 $ 1,344,050 $ 0 $ 1,344,050

Receipts $ 77,656 $ 0 $ 118,324 $ 0 $ 118,324 $ 0 $ 118,324

Chng Fund Bal $ 35,798 ($ 27,762) ($ 1,225,726) $ 0 ($ 1,225,726) $ 0 ($ 1,225,726)

Positions 6.000 - 6.000 - 6.000 - 6.000

Fund description

This fund is used to provide the State of NC with a managed environment for client desktop computing services. This service

provides statewide procurement, delivery, installation, configuration, break/ fix and technical support, equipment life cycle

support, asset retirement, and response to customer moves/ additions/ changes of desktop support. Also, this fund provides

the client with desktop security protections and common standard software applications. Note: This is a new fund that was

established near the end of the 2006 fiscal year ( May). ITS plans to fully implement the new service on July 1, 2007.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide the client with desktop computing equipment that includes equipment lifecycle

support, procurement, delivery / installation, configuration, break / fix and technical

support, asset retirement, response to customer moves, adds, and changes ( MAC) requests.

$ 31,393 4.500

Provide the State of NC with desktop security protections: Anti- Virus, Malware/ Spyware,

Security configuration, Personal Firewall, and User ID administration. Provide the State of

NC with common desktop standard software: office productivity suite, compact discs ( CD)

authoring tools, e- mail client, calendar client, 3270 terminal emulation.

$ 10,465 1.500

Actual Totals $ 41,858 6.000

49

Recommended Operating Budget, 2007- 09 Office of the Governor

Measures for the fund 2003- 04 2004- 05 2005- 06

Managed desktop seats 1 - - -

1New service that will be offered starting July 1, 2007.

50

Recommended Operating Budget, 2007- 09 Office of the Governor

Base Budget and Results- Based Information

Budget Code 24667 Information Technology Fund

Actual Expenditures

by Fiscal Year

Actual Positions

by Fiscal Year

IT Fund established in June of 2004, with first

expenditures starting in 2005.

Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 19,053,223 $ 14,189,314 $ 14,189,314 $ 0 $ 14,189,314 $ 0 $ 14,189,314

Receipts $ 16,131,695 $ 10,898,826 $ 10,898,826 $ 0 $ 10,898,826 $ 0 $ 10,898,826

Chng Fund Bal ($ 2,921,528) ($ 3,290,488) ($ 3,290,488) $ 0 ($ 3,290,488) $ 0 ($ 3,290,488)

Positions 43.000 48.000 47.000 - 47.000 - 47.000

51

Recommended Operating Budget, 2007- 09 Office of the Governor

Budget Code 24667 Information Technology Fund

Fund 24667- 2700 Administration — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 10,105,415 $ 1,708,674 $ 1,487,538 $ 0 $ 1,487,538 $ 0 $ 1,487,538

Receipts $ 8,398,864 $ 10,898,826 $ 10,898,826 $ 0 $ 10,898,826 $ 0 $ 10,898,826

Chng Fund Bal ($ 1,706,551) $ 9,190,152 $ 9,411,288 $ 0 $ 9,411,288 $ 0 $ 9,411,288

Positions 7.000 8.000 7.000 - 7.000 - 7.000

Fund description

The purpose of Administrative Services for the Information Technology ( IT) Fund is to provide oversight, from State Chief

Information Officer ( CIO) and Deputy CIO, and supporting ITS staff, to the enterprise services and initiatives supported by

this fund, including the Enterprise Project Management Office, Strategic Initiatives, Enterprise Technology Services, the State

Portal, and Enterprise Identity Management.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide administrative oversight by both the State Chief Information Officer ( CIO) and

Deputy CIO for all ITS ( includes salary, support cost, and some large IT maintenance

agreement payments).

$ 2,522,814 7.000

Executed a one- time transfer from the agency's Internal Service Fund, to support the start-up

of Enterprise Project Management Office, Strategic Initiatives, Enterprise Technology

Services, the State Portal, and Enterprise Identity Management ( Funds were transferred to

other funds in this budget code).

$ 7,582,601 -

Actual Totals $ 10,105,415 7.000

Fund 24667- 2710 Business Infrastructure — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 16,660 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 16,629 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal ($ 31) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

This fund was established to support the Statewide IT Consolidation Program by transforming the way the State conducts

business by modernizing and standardizing key business processes.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Training and advisory services for assisting ITS in scoping and providing architecture

services for a future data warehousing shared service.

$ 16,660 -

Actual Totals $ 16,660 -

52

Recommended Operating Budget, 2007- 09 Office of the Governor

Measures for the fund 2003- 04 2004- 05 2005- 06

Percentage of feasibility studies that led to additional funding 0.0 % 0.0 % 100 %

Fund 24667- 2720 Security Remediation — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 1,692,710 $ 1,924,006 $ 1,951,891 $ 0 $ 1,951,891 $ 0 $ 1,951,891

Receipts $ 477,762 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal ($ 1,214,948) ($ 1,924,006) ($ 1,951,891) $ 0 ($ 1,951,891) $ 0 ($ 1,951,891)

Positions 6.000 6.000 6.000 - 6.000 - 6.000

Fund description

Provide leadership in the development, delivery, and maintenance of an information security program that safeguards the

State's information assets and the supporting infrastructure against unauthorized use, disclosure, modification, damage, or

loss.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Oversee the statewide security program to improve agency security posture by setting

security standards, increasing security awareness through training, strategic planning,

project review, and expert advisory support.

$ 1,069,871 3.000

Manage information security risks to help agencies to identify cyber security threats and to

enable rapid responses and recovery from cyber security incidents by providing expert

advisory and forensic support.

$ 622,839 3.000

Actual Totals $ 1,692,710 6.000

Measures for the fund 2003- 04 2004- 05 2005- 06

Percentage of information security consulting and support services

incidents and requests resolved within target time frame

- - 95 %

Percentage of information security cyber security incidents/ cases and

requests resolved within target time frame

- - 85 %

Fund 24667- 2730 Strategic Initiatives — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 1,666,781 $ 2,457,943 $ 2,497,171 $ 0 $ 2,497,171 $ 0 $ 2,497,171

Receipts $ 1,666,779 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal ($ 2) ($ 2,457,943) ($ 2,497,171) $ 0 ($ 2,497,171) $ 0 ($ 2,497,171)

Positions 10.000 10.000 10.000 - 10.000 - 10.000

53

Recommended Operating Budget, 2007- 09 Office of the Governor

Fund description

The purpose of the Strategic Initiatives group is to assist the State CIO to improve the management of IT in state government

through statewide implementation projects and ongoing advisory activities. The focus is to provide the education, training,

tools, and consulting help to the agencies in the areas of investment, project, and applications portfolio management;

disaster recovery/ business continuity ( DR/ BC); and infrastructure asset management. The intent is to improve the planning,

budgeting, and management of IT at the agency and statewide levels by providing knowledge and tools and assisting in

obtaining required data.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide a portfolio management tool and employ the concepts and best practices of this

discipline to assist agencies in identifying the best IT investments, implementing projects

successfully, and managing applications to optimize costs/ benefits over their useful lives.

$ 916,730 5.500

Offer training, advisory services, and tools for assisting agencies to perform business

impact analyses ( BIAs) and preparing annual disaster recovery and business continuity

plans and reviewing these plans.

$ 666,712 4.000

Procure an asset management system to assist agencies in managing infrastructure assets

( PCs, servers, network devices, software, etc.) and conducting service management

initiatives ( e. g., ITIL) through a Configuration Management Database.

$ 83,339 .500

Actual Totals $ 1,666,781 10.000

Measures for the fund 2003- 04 2004- 05 2005- 06

Disaster recovery/ business continuity plans reviewed 20 27 28

Portfolio management system users 1 0 0 150

1The project portfolio management system currently contains over 70 active major

projects, over 50 smaller ( registered) projects, and over 1,200 applications.

Fund 24667- 2740 Project Management — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 1,425,669 $ 1,262,418 $ 1,309,731 $ 0 $ 1,309,731 $ 0 $ 1,309,731

Receipts $ 1,425,671 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal $ 2 ($ 1,262,418) ($ 1,309,731) $ 0 ($ 1,309,731) $ 0 ($ 1,309,731)

Positions 10.000 13.000 13.000 - 13.000 - 13.000

Fund description

To provide leadership for the improvement and expansion of project management throughout the enterprise through

coordination/ communication, standardization/ measurement and mentoring/ coaching/ consulting.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Coordination/ Communication $ 413,781 3.000

Stand