North Carolina state budget. Post-legislative budget summary

              The North Carolina State Budget
Post-Legislative Budget Summary2009-2011Beverly Eaves PerdueGovernorThe North Carolina State Budget
Post-Legislative Budget Summary2009-2011
Office of State Budget and Management
Office of the Governor
Raleigh, North Carolina
www.osbm.state.nc.us
Charles E. Perusse, State Budget Director
David Brown, Deputy Director for Budget
Jonathan Womer, Deputy Director for Management
June 2010North Carolina
Post-Legislative Summary, 2009-11
Table of Contents
iii
List of Tables...................................................................................................................................................................................................v
Preface.............................................................................................................................................................................................................vii
Introduction...................................................................................................................................................................................................1
Summary of the State Budget...............................................................................................................................................................4
General Fund Budget...........................................................................................................................................................................9
Highway Fund and Highway Trust Funds Budgets, 2008-09................................................................................................15
Revenue Forecast……���……………………………………......................................................................................................19
Appropriations by Committee by Department/Budget Code
General Fund
Education
Public Education (13510).................................................................................................................................................32
The University of North Carolina (160xx)....................................................................................................................53
Community Colleges (16800)........................................................................................................................................70
General Government
General Assembly (11000)..............................................................................................................................................84
Office of the Governor (13000)......................................................................................................................................87
Office of State Budget and Management (13005)..................................................................................................89
OSBM - Reserve for General Assembly Appropriation (13085)...........................................................................92
North Carolina Housing Finance Agency (13010)...................................................................................................95
Office of the Lieutenant Governor (13100)................................................................................................................97
Department of Secretary of State (13200).................................................................................................................99
Office of the State Auditor (13300)...........................................................................................................................103
Department of State Treasurer (13410)....................................................................................................................106
State Treasurer - Retirement for Fire and Rescue Squad Workers and Line of Duty Death Benefits
(13412).....................................................................................................................................................................110
Department of Insurance (13900).............................................................................................................................112
Insurance – General Fund Direct (13901)................................................................................................................114
Department of Administration (14100)...................................................................................................................116
Office of the State Controller (14160).......................................................................................................................121
Department of Revenue (14700)...............................................................................................................................125
Department of Cultural Resources (14800)............................................................................................................128
Roanoke Island Commission (14802)........................................................................................................................134
State Board of Elections (18025)................................................................................................................................136
Office of Administrative Hearings (18210)..............................................................................................................139
Health and Human Services
Department of Health and Human Services (144xx)..........................................................................................142
Division of Central Management and Support (14410).....................................................................................145
Division of Aging and Adult Services (14411)........................................................................................................150
Division of Child Development (14420)...................................................................................................................155
Office of Education Services (14424)........................................................................................................................159
Division of Public Health (14430)..............................................................................................................................162
Division of Social Services (14440)............................................................................................................................170
Division of Medical Assistance (14445)....................................................................................................................177
NC Health Choice (14446)............................................................................................................................................183
Divisions of Services for the Blind, Deaf, and Hard of Hearing (14450)........................................................186
Division of Mental Health/Developmental Disabilities/Substance Abuse
Services (14460).......................................................................................................................................................191
Table of ContentsNorth Carolina
Post-Legislative Summary, 2009-11
Table of Contents
iv
Division of Health Service Regulation (14470)......................................................................................................198
Division of Vocational Rehabilitation (14480)........................................................................................................201
Justice and Public Safety
Judicial Branch (12000).................................................................................................................................................206
Judicial Branch - Indigent Defense (12001)............................................................................................................211
Department of Justice (13600)...................................................................................................................................214
Department of Juvenile Justice and Delinquency Prevention (14060)........................................................219
Department of Correction (14500)...........................................................................................................................226
Department of Crime Control and Public Safety (14900)..................................................................................233
Natural and Economic Resources
Department of Agriculture and Consumer Services (13700)...........................................................................242
Department of Labor (13800).....................................................................................................................................249
Department of Environment and Natural Resources (14300)..........................................................................253
DENR - Clean Water Management Trust Fund (14301).......................................................................................262
Department of Commerce (14600)..........................................................................................................................264
Commerce - State Aid to Non-State Entities (14601)..........................................................................................270
Transportation
Highway Fund (84210)...........................................................................................................................................................274
Highway Trust Fund (84290)................................................................................................................................................282
Turnpike Authority (64208)..................................................................................................................................................285
Capital Improvements
General Fund (19600).............................................................................................................................................................288
Non-General Fund (404xx)...................................................................................................................................................291
Reserves, Debt Service, and Other Adjustments
General Fund (190xx, 19420, 19425).................................................................................................................................304
Appendix....................................................................................................................................................................................................309North Carolina
Post-Legislative Summary, 2009-11
List of Tables
v
Text Tables
1a.
Appropriations by Source of Funds for 2009-10.....................................................................................................5
1b.
Appropriations by Source of Funds for 2010-11.....................................................................................................5
2a.
Total State Budget by Function and Source of Funds, 2009-10.........................................................................7
2b.
Total State Budget by Function and Source of Funds, 2010-11.........................................................................8
3.
General Fund Appropriations, 2009-11......................................................................................................................9
4.
Revised Certified General Fund, 2009-11................................................................................................................10
5.
Conference-Approved Changes to the 2009-10 General Fund Budget.......................................................11
6.
Conference-Approved Changes to the 2010-11 General Fund Budget.......................................................13
7.
Revenue for the 2009-11 Transportation Budget.................................................................................................15
8.
Revenue for the 2009-11 Highway Trust Fund Budget.......................................................................................16
9.
Conference-Approved Changes to Highway Fund and Highway Trust Fund Budgets, 2009-10........17
10.
Conference-Approved Changes to Highway Fund and Highway Trust Fund Budgets, 2010-11........18
11.
Revenue Availability, 2009-11: 2009 Session of the General Assembly........................................................20
12.
General Fund Revenue, Actual 2008-09, Budgeted 2009-11............................................................................21
13.
Condition of the General Fund, 2008-09 Actual and 2009-11 Appropriations..........................................22
14.
Highway Fund Revenue Availability, 2009-11........................................................................................................23
15.
Highway Trust Fund Revenue Availability, 2009-11.............................................................................................24
Appendix Tables
1A.
Condition of the General Fund, 1974-75 to 2008-09...........................................................310
1B.
Condition of the Highway Fund, 1974-75 to 2008-09...........................................................311
1C.
Condition of the Highway Trust Fund, 1989-90 to 2008-09.................................................312
1D.
Savings Reserve Account Balance, 1990-91 to 2008-09....................................................313
2.
Total Authorized State Budget, 1980-81 to 2010-11............................................................314
3A.
Total State Budget by Function, Department, and Source of Funds, 2009-10....................315
3B.
Total State Budget by Function, Department, and Source of Funds, 2010-11....................322
3C.
Total Transportation Budget by Function and Source of Funds, 2009-10...........................329
3D.
Total Transportation Budget by Function and Source of Funds, 2010-11............................330
4.
Trends in the Total State Budget, 1981-82 to 2010-11........................................................331
5.
Total Authorized State Budget by Source of Funds, 1980-81 to 2010-11............................332
6.
Highway Fund State Tax and Nontax Revenue, 1974-75 to 2010-11..................................333
7.
Highway Trust Fund Tax and Nontax Revenue, 1989-90 to 2010-11..................................334
8.
General Fund Tax and Nontax Revenue, 1974-75 to 2008-09............................................335
9.
Authorized General Fund Appropriations, 1976-77 to 2008-09...........................................336
10.
General Fund Operating Appropriation for Public Schools, Community Colleges,
and Higher Education, 1970-71 to 2010-11.........................................................................337
11.
North Carolina’s Bond Indebtedness, 1968-69 to 2006-07.............................................................................338
12.
Total State Budget for Debt Services, 1980-81 to 2008-09.............................................................................339
List of Tablesvii
Preface
The North Carolina State Budget: Post-Legislative Budget Summary, 2009-2011 reflects the work of multiple people within the Office of State Budget and Management (OSBM) and the Office of Economic Recovery and Investment. Budget administrators and analysts, economists, tech­nical staff, and paraprofessionals are 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.
Office of State Budget and Management
Charles Perusse, State Budget Director (charles.perusse@osbm.nc.gov)
Debbie Young, Special Assistant to State Budget Director (debbie.young@osbm.nc.gov)
Business Office
Arnetha Dickerson, Business Officer (arnetha.dickerson@osbm.nc.gov)
Frances Doak, Accounting Technician (frances.doak@osbm.nc.gov)
Dashone Knight, Accounting Technician (dashone.knight@osbm.nc.gov )
Human Resources
Ursula Hairston, Human Resources Director (ursula.hairston@osbm.nc.gov)
Shelia Stewart, Human Resources Coordinator (shelia.stewart@osbm.nc.gov)
Tonya Austin, Human Resources Associate (tonya.austin@osbm.nc.gov)
David Brown, Deputy Director for Budget (david.brown@osbm.nc.gov)
Kela Lockamy, Executive Assistant to Deputy State Budget Directors
(kela.lockamy@osbm.nc.gov)
Julie Mitchel, Associate State Budget Director (julie.mitchel@osbm.nc.gov)
Susie Esealuka, Team Assistant (susie.esealuka@osbm.nc.gov)
Pat Taylor, Team Assistant (pat.taylor@osbm.nc.gov)
Education
Elizabeth Grovenstein, Assistant State Budget Officer (elizabeth.grovenstein@osbm.nc.gov)
Pam Leaman, Budget Analyst (pam.leaman@osbm.nc.gov)
Bryan Conrad, Budget Analyst (bryan.conrad@osbm.nc.gov)
Joyce Wallace, Budget Analyst (joyce.wallace@osbm.nc.gov)viii
Health and Human Services
Pam Kilpatrick, Assistant State Budget Officer (pam.kilpatrick@osbm.nc.gov)
Kari Barsness, Budget Analyst (kari.barsness@osbm.nc.gov)
Heather Laffler, Budget Analyst (heather.laffler@osbm.nc.gov)
Wayne Williams, Budget Analyst (wayne.williams@osbm.nc.gov)
Infrastructure (Capital, IT)
Jennifer Hoffmann, Assistant State Budget Officer (jennifer.hoffmann@osbm.nc.gov)
Mercidee Benton, Assoc. State Budget Officer, Transportation (mercidee.benton@osbm.nc.gov)
Donna Cox, Budget Analyst (donna.cox@osbm.nc.gov)
Kristen Crosson, Budget Analyst (kristen.crosson@osbm.nc.gov)
David Watson, Budget Analyst (david.watson@osbm.nc.gov)
Jennifer Wimmer, Budget Analyst (jennifer.wimmer@osbm.nc.gov)
Justice and Public Safety / Natural and Environmental Resources / General Government
Melvin Lee, Assistant State Budget Officer (melvin.lee@osbm.nc.gov)
Barbara Bowers, Budget Analyst (barbara.bowers@osbm.nc.gov)
Aaron Gallagher, Budget Analyst (aaron.gallagher@osbm.nc.gov)
Alicia James, Budget Analyst (alicia.james@osbm.nc.gov)
Cheryl Reed, Budget Analyst (cheryl.reed@osbm.nc.gov)
Jonathan Womer, Deputy Director for Management (jonathan.womer@osbm.nc.gov)
Kela Lockamy, Executive Assistant to Deputy State Budget Directors
(kela.lockamy@osbm.nc.gov)
Demographic and Economic Analysis
Nathan Knuffman, Associate State Budget Officer (nathan.knuffman@osbm.nc.gov)
Angela Griffin, Management Analyst (angela.y.griffin@osbm.nc.gov)
Anca Grozav, Economic Analyst ( anca.grozav@osbm.nc.gov)
Warren Plonk, Economic Analyst (warren.plonk@osbm.nc.gov)
Jennifer Song, State Demographer (jennifer.song@osbm.nc.gov)
Management Evaluation and Audit
Barbara Baldwin, Assistant State Budget Officer (barbara.baldwin@osbm.nc.gov)
Jeani Allen, Internal Auditor (jeanette.allen@osbm.nc.gov)
Philip Bartholomew, Management Analyst (philip.bartholomew@osbm.nc.gov)
Edie Chung, Internal Auditor (edie.chung@osbm.nc.gov)
Donald Crooke, Management Analyst (donald.crooke@osbm.nc.gov)
Michele Evans, Internal Auditor (michele.evans@osbm.nc.gov)
Betty Haley, Program Administrator (betty.haley@osbm.nc.gov)
Regina Hill, Internal Auditor – Information Systems (regina.hill@osbm.nc.gov)
John Leskovec, Management Analyst (john.leskovec@osbm.nc.gov)
Courtney Michelle, Internal Auditor (courtney.michelle@osbm.nc.gov)
Ron Sellers, Internal Auditor (ron.sellers@osbm.nc.gov)
Joe Turlington, Management Analyst (joe.turlington@osbm.nc.gov)ix
Strategic Management
Erin Matteson, Associate State Budget Officer (erin.matteson@osbm.nc.gov)
Bob Coats, Business and Technology Applications Analyst (bob.coats@osbm.nc.gov)
Brandon James, Management Analyst (brandon.james@osbm.nc.gov)
Trevor Minor, Budget Analyst (trevor.minor@0sbm.nc.gov)
Sarah Porper, IT Budget Analyst (sarah.porper@osbm.nc.gov)
Bill Stockard, Management Analyst (bill.stockard@osbm.nc.gov)
Technology and Data Services
Joel Sigmon, Assistant State Budget Officer (joel.sigmon@osbm.nc.gov)
Francine Stephenson, Business and Technology Applications Specialist
(francine.stephenson@osbm.nc.gov)
Wayne Crews, Business and Technology Applications Specialist (wayne.crews@osbm.nc.gov)
Agness Gunter, Business and Technology Applications Specialist
(agness.gunter@osbm.nc.gov)
Paula Jones, Business and Technology Applications Analyst (paula.a.jones@osbm.nc.gov)
Ernest Pecounis, Business and Technology Applications Analyst
(ernest.pecounis@osbm.nc.gov)
Lucy Ringland, Technical Editor/Applications Analyst (lucy.ringland@osbm.nc.gov)
Paul Young, Business and Technology Applications Specialist (paul.young@osbm.nc.gov)
Office of Economic Recovery and Investment
Dempsey Benton, Director (dempsey.benton@osbm.nc.gov)North Carolina
Post-Legislative Summary, 2009-11
Introduction
1
Introduction
The purpose of this document is to describe the following:
the Governor’s continuation budget adjustments• —changes made to the authorized base budget for fiscal year 2008-09 (comprised of the 2008-09 certified budget plus any recurring adjustments) and continuation budget adjustments prescribed by the budget instructions published by the Office of State Budget and Management (OSBM), the combination of which results in the Governor’s recommended continuation budget for the 2009-10 and 2010-11 bi­ennium
legislative adjustments• —changes made by the General Assembly in its 2009 session to the Governor’s recommended continuation budget for 2009-10 and 2010-11
The combination of the above changes results in the budget certified by OSBM to all departments for the 2009-11 biennium.
The General Fund and Highway Fund are included in the document, along with the Highway Trust Fund, capital improvements, reserves, debt service, and other adjustments.
Items of change are described under one of three categories within a department or section: continu­ation, expansion, or other provisions. “Continuation” denotes budgets that support current operations (current as of 2008-09), while “Expansion” denotes new programs, expansion of existing programs, and salary and benefit increases. “Other Provisions” is a category for describing other pertinent changes in general statutes or session laws.
For each item of change that is described, there is a report of the resulting fiscal change as well as the change in number of positions, when appropriate. Fiscal changes are categorized as “Requirements” or “Nonrecurring Requirements.” The category “Receipts” designates changes in departmental receipts; there may also be “Nonrecurring Receipts.” Always, “requirements” less “receipts” equals “appropriation.” Budget Summary
and
Revenue Forecast
Summary of the State Budget
General Fund Budget
Transportation Budget
Revenue Forecast
4
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
Summary of the State Budget
Total Budget for 2009-10
The General Assembly enacted a state budget for fiscal year 2009-10 totaling $42.8 billion. This amount includes funds to continue the current operations of state government (traditionally referred to as the “operating budget” for agencies) as well as monies for capital improvements and other nonrecurring items. The total budget by fund type is listed in Table 1.
Of total appropriations for fiscal year 2009-10, 44.4% is in the General Fund, 33.2% from federal funds, 6.3% from the Highway Fund, and 16.1% from other receipts and charges. The budget includes funding to continue existing programs, to implement new programs recommended by the Governor and General Assembly, and to fund employee benefit changes for teachers and state employees.
Major Expansion Items
The majority of funding increases are for education, human services, and employee benefit programs.
Public Schools
The budget for the Public School System includes targeted expansion items used to implement programs to improve student performance and graduation rates and reduce dropout rates:
Appropriated $13 million to continue the dropout prevention grant initiative which addresses issues • such as truancy, academic failure, and school transition.
Appropriated $2.5 million was provided to increase funding for the District and School Transformation • Initiative, a statewide program that provides tailored and sustained support to struggling schools and districts to improve student achievement.
Provided full funding, $3.6 million, for the additional 12 Learn and Earn schools scheduled to • open in the 2009-10 school year in order to improve graduation rates, student performance, and competitiveness.
Community Colleges
The community college budget focuses on strategic areas to ensure workforce development and create jobs for the future. Major increases include:
Appropriated $58 million to fully fund the community college enrollment growth.•
Appropriated $4.8 million to increase the weighted funding in nursing, dental, and radiology • technology programs to reduce waiting lists and expand high-demand allied health programs.
Provided $9 million recurring appropriation to address equipment and technology needs at the colleges to reduce program waiting lists and meet the training needs. 5
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
Table 1a. Appropriations by Source of Funds for 2009-10
Amount
Percent
Fund Type
Sources
(In Billions)
of Total
General
Tax collections
$19.0
44.4%
Investment earnings
Nontax revenues
Bonds
Federal
Allocations to North Carolina
14.2
33.2%
Highway and
Motor fuel taxes
2.7
6.3%
Highway
Licenses and fees
Trust
Investments
Sales and use of motor vehicles
Other
Tuition, fees, and other charges
6.9
16.1%
Total Budget
$42.8
100.00%
Table 1b. Appropriations by Source of Funds for 2010-11
Amount
Percent
Fund Type
Sources
(In Billions)
of Total
General
Tax collections
$19.06
45.6%
Investment earnings
Nontax revenues
Federal
Allocations to North Carolina
13.6
31.6%
Highway and
Motor fuel taxes
2.8
6.5%
Highway
Licenses and fees
Trust
Investments
Sales and use of motor vehicles
Other
Tuition, fees, and other charges
7.0
16.3%
Total Budget
$43.0
100.00%6
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
University System
The UNC System budget provides access for North Carolinians at a cost that is reasonable and affordable by fully funding enrollment growth and need-based financial aid. Major increases include:
Appropriated $44.2 million to fully fund the UNC System enrollment growth.•
Provided $23 million for UNC Need-Based Financial Aid to continue the expansion of this UNC grant • program to ensure that all eligible students shall receive a grant and will hold recipients harmless from the increases in the cost of education.
Appropriated $3 million for ECU dental school operations and $2 million to support the ECU Brody • School of Medicine’s ability to provide care for the indigent patients of eastern North Carolina.
Appropriated $5 million for the NCSU College of Engineering.•
Appropriated $3 million for the NC Research Campus at Kannapolis.•
Appropriated $2 million for the Energy Production Infrastructure Center (EPIC) at UNCC.•
Appropriated $2 million for the NC A&T State University College of Engineering.•
Appropriated $2 million for the UNC System Faculty Recruiting and Retention Fund.•
Appropriated $2 million for the two special focus universities, UNCA and UNCSA.•
Appropriated $1 million for the Joint School of Nanoscience and Nanoengineering at UNCG and NC • A&T.
Appropriated $1 million for the UNCSA School of Filmmaking.•
Health and Human Services
$155M for projected Medicaid growth and $252.5M for the final phase-out of the county share, $17M to fund a 7% increase in Health Choice enrollment, $7M for competitive grants to increase the capacity of rural health center, local health departments and other entities to provide health care to low-income and uninsured persons. $12M to fund local impatient bed capacity.
Employee Benefits
A nonrecurring reserve of $48M was funded for severance salary continuation payments for non-contributory health coverage under the State Health Plan. $22.3M in 2009-10 and $161 in 20010-11 was provided to fund the state’s contributions to the retirement systems and $132M in 2009-10 and $276M in 2010-11 was appropriated for the state’s share of non-contributory health benefit coverage for active and retired employees.7
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
Table 2a. Total North Carolina State Budget by Function and Source of Funds
FY 2009-10
General
Highway
Function
Fund
Fund**
Other
Federal
Total
Education: Public Education 7,458,261,240 32,859,859 108,176,509 2,475,700,615 10,074,998,223 Community Colleges 999,833,122 - 255,857,823 16,426,195 1,272,117,140 Universities 2,706,834,335 - 1,048,613,672 26,054,991 3,781,502,998 Subtotal Education 11,164,928,697 32,859,859 1,412,648,004 2,518,181,801 15,128,618,361 General Government 440,876,661 150,000 1,218,396,487 34,094,059 1,693,517,207 Health and Human Svcs. 3,903,349,605 - 2,169,121,466 9,491,835,211 15,564,306,282 Justice and Public Safety 2,189,482,022 214,973,065 219,123,166 178,204,814 2,801,783,067 Natural and Economic Resources 436,957,236 4,996,979 1,787,132,490 957,535,878 3,186,622,583 Transportation - 2,491,780,000 46,691,595 1,011,133,939 3,549,605,534 Debt Service 644,129,133 - 51,551,918 - 695,681,051 Reserves and Transfers # 230,333,845 - - - 230,333,845 Total Current Operations 19,010,057,199 2,744,759,903 6,904,665,126 14,190,985,702 42,850,467,930 Capital Improvement - App 4,875,000 - - - 4,875,000 Total Appropriations 19,014,932,199 2,744,759,903 6,904,665,126 14,190,985,702 42,855,342,930 General Obligation Bonds 383,275,000 - - - 383,275,000 Grand Total $ 19,398,207,199 $ 2,744,759,903 $ 6,904,665,126 $ 14,190,985,702 $ 43,238,617,930
** Includes Highway Fund and Highway Trust Fund.
NOTE: Excludes $108,500,000 of Highway Trust Fund and $17,600,000 of Highway Fund transfer to General Fund plus
transfers to other General Fund Budget Codes.8
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
Table 2b. Total North Carolina State Budget by Function and Source of Funds
FY 2010-11
General
Highway
Function
Fund
Fund**
Other
Federal
Total
Education: Public Education 7,360,833,223 - 110,924,921 2,475,700,615 9,947,458,759 Community Colleges 1,012,467,778 - 255,831,582 16,426,195 1,284,725,555 Universities 2,656,552,008 - 1,102,390,587 26,054,991 3,784,997,586 Subtotal Education 11,029,853,009 - 1,469,147,090 2,518,181,801 15,017,181,900 General Government 439,641,878 150,000 1,298,329,190 34,094,059 1,772,215,127 Health and Human Svcs. 4,321,028,842 - 2,135,290,124 9,022,678,938 15,478,997,904 Justice and Public Safety 2,179,933,165 216,267,203 216,294,570 177,606,280 2,790,101,218 Natural and Economic Resources 412,998,097 4,989,552 1,787,288,669 855,932,577 3,061,208,895 Transportation - 2,570,240,000 50,243,807 1,018,354,925 3,638,838,732 Debt Service 709,189,876 - 44,623,308 - 753,813,184 Reserves and Transfers # 467,119,709 - - - 467,119,709 Total Current Operations 19,559,764,576 2,791,646,755 7,001,216,758 13,626,848,580 42,979,476,669 Capital Improvement - App - - - - - Total Appropriations 19,559,764,576 2,791,646,755 7,001,216,758 13,626,848,580 42,979,476,669 General Obligation Bonds - - - - - Grand Total $ 19,559,764,576 $ 2,791,646,755 $ 7,001,216,758 $ 13,626,848,580 $ 42,979,476,669
** Includes Highway Fund and Highway Trust Fund.
NOTE: Excludes $90,400,000 of Highway Trust/Highway Fund transfer to General Fund plus transfers to other General
Fund Budget Codes.9
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
General Fund Budget
Table 3. General Fund Appropriations, 2009-10
Amount
Percent
Category
(In Billions)
of Total
Education
Public schools
$ 7,458.3
39.2%
Community colleges
999.8
5.3%
Universities
2,706.8
14.2%
Health and human services
3903.3
20.5%
Justice and public safety
Prisons
1313.8
6.9%
Court system
556.6
2.9%
Other public safety agencies
318.9
1.7%
General government
440.9
2.3%
Natural and economic resources
Environment
251.1
1.3%
Economic development
105.4
0.6%
Other NER agencies
80.4
0.7%
Debt service
644.1
3.4%
Statewide reserves/capital
235.3
1.2%
Total General Fund Expenditures
$ 19,014.9
100.0%10
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
Table 4. Revised Certified General Fund Revenue2009-11CertifiedCertifiedBudgetRevenuesRevenuesCodeCode Description2009-102010-1119906GF Tax Individual Income9,514,248,824$ 9,952,300,000$ 19907GF Tax Sales & Use5,628,611,286 6,015,050,000 19916GF Tax Corporate Income1,051,100,000 965,400,000 19902GF Tax-Licenses Sch. B35,100,000 36,900,000 19903GF Tax Tobacco Products247,433,859 255,800,000 19905GF Tax Franchise622,000,000 633,100,000 19901GF Tax Inheritance113,100,000 121,900,000 19908GF Tax Beverage287,900,000 281,200,000 19909GF Tax Gift- - 19911Schedule IA Freight Car- - 19912GF Tax Insurance Company487,300,000 509,600,000 19913GF Tax Piped Natural Gas36,100,000 37,200,000 19923GF Tax Mill Machinery32,300,000 33,900,000 19949GF Tax Miscellaneous- - Total Tax Revenue18,055,193,969$ 18,842,350,000$ 19974GF NonTax-AOC247,830,909 259,775,278 19965GF NonTax St. Treas.Investments67,200,000 93,100,000 19961GF NonTax Disproportionate Share125,000,000 100,000,000 19951GF Non-Tax Insurance-TR Reg Fund77,729,604 81,900,000 19953GF Non Tax-Ins. Lic//Fees19990GF Other NonTax Total NonTax Revenue517,760,513$ 534,775,278$ 19984GF Nontax Sales Tax Refund,HWY17,600,000 17,600,000 19972GF NonTax Trnsfer from HWY. Trust108,500,000 72,800,000 Total Highway and Highway Trust Fund Transfer126,100,000$ 90,400,000$ 19978GF Misc. Intra-State Transfers227,612,888 171,438,053 Total General Fund Revenue18,926,667,370$ 19,638,963,331$ 11
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
FY 2009-2010 FY 2009-10RecommendedAppropriationAppropriationFY 2009-10NetBudgetContinuationSupportedSupportedNetRecommendedPositionCodeFunctionBudgetRecurringNonrecurringPositionsRecurringNonrecuringPositionsChangeAppropriationChangeEducation:13510Public Education $ 8,245,341,827 (446,572,168)$ (449,717,422)$ (64.00) 59,084,003$ 50,125,000$ - (787,080,587)$ 7,458,261,240$ (64.00) 16800Community Colleges 1,072,571,152 (183,541,244) 32,899,494 (19.00) 77,903,720 - - (72,738,030) 999,833,122 (19.00) 160xxUniversity System 3,026,185,255 (276,846,445) (138,815,944) (4.00) 83,561,469 12,750,000 25.00 (319,350,920) 2,706,834,335 21.00 Total Education 12,344,098,234 (906,959,857) (555,633,872) (87.00) 220,549,192 62,875,000 25.00 (1,179,169,537) 11,164,928,697 (62.00) General Government:14100Administration 78,170,163 (10,510,601) - (110.50) - 250,000 - (10,260,601) 67,909,562 (110.50)13300State Auditor 14,389,111 (962,069) - (8.00) - - - (962,069) 13,427,042 (8.00)14800Cultural Resources 77,933,037 (5,474,603) - (17.45) - 500,000 - (4,974,603) 72,958,434 (17.45)14802Cultural Resources - Roanoke Island 2,095,402 (104,770) - - - - - (104,770) 1,990,632 - 11000General Assembly 62,347,066 (7,868,058) - (21.00) - - - (7,868,058) 54,479,008 (21.00)13000Governor's Office 6,616,233 (465,924) - - - - - (465,924) 6,150,309 - 13010NC Housing Finance 14,608,417 - - - - - - - 14,608,417 - 13900Insurance 33,824,822 (144,300) (1,500,000) - - - - (1,644,300) 32,180,522 - 13901Insurance - Worker's Comp. Fund 4,500,000 - (2,500,000) - - - - (2,500,000) 2,000,000 - 13100Lieutenant Governor 966,706 (22,504) - - - - - (22,504) 944,202 - 18210Office of Administrative Hearings 4,266,407 (110,895) - (3.00) - - - (110,895) 4,155,512 (3.00)14700Revenue 91,347,503 (2,386,086) - - - - - (2,386,086) 88,961,417 - 13200Secretary of State 11,854,656 (224,578) - (3.00) 10,281 - - (214,297) 11,640,359 (3.00)18025State Board of Elections 6,627,101 (319,878) (1,500,000) (5.00) - - - (1,819,878) 4,807,223 (5.00)13005State Budget and Management (OSBM) 7,144,221 (641,701) - (4.00) - - - (641,701) 6,502,520 (4.00)13085OSBM-Special Appropriations 4,280,000 (63,535) - - - 2,250,000 - 2,186,465 6,466,465 - 14160Controller's Office 24,536,602 (1,404,801) - (12.75) - - - (1,404,801) 23,131,801 (12.75)13410State Treasurer 11,150,002 (398,880) - (4.00) 7,007,443 - - 6,608,563 17,758,565 (4.00)13412State Treasurer - Retirement / Benefits 10,804,671 - - - - - - - 10,804,671 - Total General Government 467,462,120 (31,103,183) (5,500,000) (188.70) 7,017,724 3,000,000 - (26,585,459) 440,876,661 (188.70)Health and Human Services:14410Central Administration 74,014,863 (6,443,151) (1,155,000) (20.00) 7,000,000 1,600,000 - 1,001,849 75,016,712 (20.00)14411Aging 37,592,841 (308,552) (1,884,392) (2.00) - 500,000 - (1,692,944) 35,899,897 (2.00)14420Child Development 305,403,137 (32,055,077) (16,252,484) (2.00) - - - (48,307,561) 257,095,576 (2.00)14424Education Services 40,827,434 (3,982,716) (175,321) (32.00) - - - (4,158,037) 36,669,397 (32.00)14430Public Health 195,214,007 (29,750,768) (6,924,119) (54.00) 1,000,000 2,027,000 - (33,647,887) 161,566,120 (54.00)14440Social Services 236,218,110 (13,863,463) (16,075,225) (22.00) - 1,900,000 - (28,038,688) 208,179,422 (22.00)14445Medical Assistance 3,681,276,113 (912,584,723) (857,352,497) (11.00) 407,314,276 - - (1,362,622,944) 2,318,653,169 (11.00)14446Child Health 68,789,628 (8,668,056) - - 17,096,952 - - 8,428,896 77,218,524 - 14450Services for the Blind 11,704,522 (2,787,049) (260,590) (3.00) - 75,000 - (2,972,639) 8,731,883 (3.00)14460Mental Health/DD/SAS 819,613,620 (125,551,820) (49,300,000) (350.00) 13,624,084 6,000,000 - (155,227,736) 664,385,884 (350.00)14470Health Service Regulation 19,271,921 (1,345,180) - (7.00) - - - (1,345,180) 17,926,741 (7.00)14480Vocational Rehabilitation 46,418,743 (4,211,293) (201,170) (3.00) - - - (4,412,463) 42,006,280 (3.00) Total Health and Human Services 5,536,344,939 (1,141,551,848) (949,580,798) (506.00) 446,035,312 12,102,000 - (1,632,995,334) 3,903,349,605 (506.00)Justice and Public Safety:14500Correction 1,384,910,571 (57,780,973) (14,697,394) (990.00) 1,383,273 - 18.00 (71,095,094) 1,313,815,477 (972.00)14900Crime Control & Public Safety 43,925,878 (13,294,872) 430,336 (28.00) 3,109,489 150,000 55.00 (9,605,047) 34,320,831 27.00 12000Judicial 497,649,235 (28,396,121) (2,324,864) (47.00) - - - (30,720,985) 466,928,250 (47.00)12001Judicial - Indigent Defense 133,881,190 (7,188,386) 9,235,185 (6.00) - - - 2,046,799 135,927,989 (6.00)13600Justice 100,441,147 (10,704,530) - (72.00) - - - (10,704,530) 89,736,617 (72.00)14060Juvenile Justice 172,484,415 (23,013,164) (718,393) (60.00) - - - (23,731,557) 148,752,858 (60.00) Total Justice and Public Safety 2,333,292,436 (140,378,046) (8,075,130) (1,203.00) 4,492,762 150,000 73.00 (143,810,414) 2,189,482,022 (1,130.00) Reductions Expansion Table 5Conference Approved General Fund Appropriations 12
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
FY 2009-2010 FY 2009-10RecommendedAppropriationAppropriationFY 2009-10NetBudgetContinuationSupportedSupportedNetRecommendedPositionCodeFunctionBudgetRecurringNonrecurringPositionsRecurringNonrecuringPositionsChangeAppropriationChange Reductions Expansion Table 5Conference Approved General Fund Appropriations Natural and Economic Resources:13700Agriculture & Consumer Services 65,402,492 (4,668,058) - (32.20) - 2,300,000 - (2,368,058) 63,034,434 (32.20)14600Commerce 46,019,823 (9,354,106) - (22.00) 4,958,819 2,903,885 11.00 (1,491,402) 44,528,421 (11.00)14601Commerce - State Aid 55,129,374 (1,744,213) - - - 7,500,000 - 5,755,787 60,885,161 - 14300Environment and Natural Resources 212,524,097 (19,268,726) 1,043,840 (112.72) 139,802 6,669,400 - (11,415,684) 201,108,413 (112.72)14301Clean Water Management Trust 100,000,000 - (50,000,000) - - - - (50,000,000) 50,000,000 - 13800Labor 19,064,773 (1,663,966) - (9.50) - - - (1,663,966) 17,400,807 (9.50) Total Natural & Economic Resources 498,140,559 (36,699,069) (48,956,160) (176.42) 5,098,621 19,373,285 11.00 (61,183,323) 436,957,236 (165.42)14222Transportation - - - - - - - - - - Net Agency 21,179,338,288 (2,256,692,003) (1,567,745,960) (2,161.12) 683,193,611 97,500,285 109.00 (3,043,744,067) 18,135,594,221 (2,052.12)19600Capital Improvements - - - - - 4,875,000 - 4,875,000 4,875,000 - Debt Service:19420General Debt Service 670,494,697 (27,981,944) - - - - - (27,981,944) 642,512,753 - 19425Federal Reimbursement 1,616,380 - - - - - - - 1,616,380 - Total Debt Service 672,111,077 (27,981,944) - - - - - (27,981,944) 644,129,133 - Reserves and Adjustments:19001Contingency and Emergency Reserve 5,000,000 - - - - - - - 5,000,000 - 19003Compensation Increase Reserve - - - - - - - - - - 19004Salary Adjustment Reserve 4,500,000 (4,500,000) - - - - - (4,500,000) - - 19056Convert Contractual Employees to - (2,500,000) - - - - - (2,500,000) (2,500,000) - 19055Statewide Administrative Support Reduction - (3,000,000) - (75.00) - - - (3,000,000) (3,000,000) (75.00)19013Job Development Incentive Grants Reserve 27,400,000 - (8,400,000) - - - - (8,400,000) 19,000,000 - 19015Reserve for Vacant Eliminated Positions - - - - - - - - - - 19018Multi-purpose Database Reserve - - - - - - - - - - 19019Pending Gang Prevention Legislation - - - - - - - - - - 19xxxBiomedial Research Imaging Center (BRIC) 172,000,000 - (172,000,000) - - - - (172,000,000) - - Severance Expenditure Reserve - - - - - 47,957,108 - 47,957,108 47,957,108 - 19043Health Plan Reserve - - - - 132,214,752 - - 132,214,752 132,214,752 - 19047Retirement Rate Adjustment Reserve-COLA - - - - 21,000,000 - - 21,000,000 21,000,000 - 19044IT Initiative 14,821,416 (5,459,431) - - - - - (5,459,431) 9,361,985 - 19052Judicial Retirement - - - - 1,300,000 - - 1,300,000 1,300,000 - - - - - - - - - - Total Reserves and Adjustments 223,721,416 (15,459,431) (180,400,000) (75.00) 154,514,752 47,957,108 - 6,612,429 230,333,845 (75.00) Total $ 22,075,170,781 $ (2,300,133,378) $(1,748,145,960) (2,236.12) $ 837,708,363 $ 150,332,393 109.00 $ (3,060,238,582) $ 19,014,932,199 (2,127.12)13
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
FY 2010-2011 FY 2010-11RecommendedAppropriationAppropriationFY 2010-11NetBudgetContinuationSupportedSupportedNetRecommendedPositionCodeFunctionBudgetRecurringNonrecurringPositionsRecurringNonrecuringPositionsChangeAppropriationChangeEducation:13510Public Education $ 8,358,798,223 (586,818,625)$ (504,067,732)$ (75.00) 92,921,357$ -$ - (997,965,000)$ 7,360,833,223$ (75.00) 16800Community Colleges 1,114,034,594 (225,004,686) - (19.00) 123,437,870 - - (101,566,816) 1,012,467,778 (19.00) 160xxUniversity System 3,100,871,575 (433,210,614) (145,202,648) (4.00) 133,593,695 500,000 25.00 (444,319,567) 2,656,552,008 21.00 Total Education 12,573,704,392 (1,245,033,925) (649,270,380) (98.00) 349,952,922 500,000 25.00 (1,543,851,383) 11,029,853,009 (73.00) General Government:14100Administration 78,362,881 (10,915,997) - (110.50) - - - (10,915,997) 67,446,884 (110.50)13300State Auditor 14,405,383 (1,150,260) - (9.00) - - - (1,150,260) 13,255,123 (9.00)14800Cultural Resources 79,329,609 (6,079,619) - (17.45) - - - (6,079,619) 73,249,990 (17.45)14802Cultural Resources - Roanoke Island 2,095,402 (104,770) - - - - - (104,770) 1,990,632 - 11000General Assembly 64,056,544 (7,472,060) - (21.00) - - - (7,472,060) 56,584,484 (21.00)13000Governor's Office 6,622,879 (555,140) - - - - - (555,140) 6,067,739 - 13010NC Housing Finance 14,608,417 - - - - - - - 14,608,417 - 13900Insurance 33,887,006 (144,300) (1,500,000) - - - - (1,644,300) 32,242,706 - 13901Insurance - Worker's Comp. Fund 4,500,000 - (2,938,154) - - - - (2,938,154) 1,561,846 - 13100Lieutenant Governor 966,706 (35,003) - - - - - (35,003) 931,703 - 18210Office of Administrative Hearings 4,279,242 (167,766) - (3.00) - - - (167,766) 4,111,476 (3.00)14700Revenue 91,440,473 (3,649,503) - (14.00) - - - (3,649,503) 87,790,970 (14.00)13200Secretary of State 11,928,530 (487,323) - (3.00) 10,281 - - (477,042) 11,451,488 (3.00)18025State Board of Elections 6,630,894 (409,686) - (5.00) - - - (409,686) 6,221,208 (5.00)13005State Budget and Management (OSBM) 7,147,928 (740,119) - (4.00) - - - (740,119) 6,407,809 (4.00)13085OSBM-Special Appropriations 4,280,000 (118,875) - - - - - (118,875) 4,161,125 - 14160Controller's Office 24,568,908 (1,980,701) - (12.75) 600,000 - 5.00 (1,380,701) 23,188,207 (7.75)13410State Treasurer 11,163,790 (605,833) - (4.00) 7,007,443 - - 6,401,610 17,565,400 (4.00)13412State Treasurer - Retirement / Benefits 10,804,671 - - - - - - - 10,804,671 - Total General Government 471,079,263 (34,616,955) (4,438,154) (203.70) 7,617,724 - 5.00 (31,437,385) 439,641,878 (198.70)Health and Human Services:14410Central Administration 74,482,593 (7,310,254) - (20.00) 7,000,000 - - (310,254) 74,172,339 (20.00)14411Aging 37,594,640 (312,611) (500,000) (2.00) - 500,000 - (312,611) 37,282,029 (2.00)14420Child Development 305,417,178 (32,433,216) (3,800,000) (2.00) - - - (36,233,216) 269,183,962 (2.00)14424Education Services 40,879,342 (4,034,624) - (32.00) - - - (4,034,624) 36,844,718 (32.00)14430Public Health 198,230,503 (32,941,055) (5,774,119) (54.00) 1,000,000 - - (37,715,174) 160,515,329 (54.00)14440Social Services 234,498,543 (18,982,538) (6,926,522) (22.00) - - - (25,909,060) 208,589,483 (22.00)14445Medical Assistance 3,933,921,911 (1,255,508,438) (502,565,621) (11.00) 544,348,905 - - (1,213,725,154) 2,720,196,757 (11.00)14446Child Health 68,789,628 (8,768,119) - - 21,942,732 - - 13,174,613 81,964,241 - 14450Services for the Blind 11,763,464 (2,853,143) (260,590) (3.00) - - - (3,113,733) 8,649,731 (3.00)14460Mental Health/DD/SAS 834,943,177 (143,871,306) (40,000,000) (350.00) 13,624,084 - - (170,247,222) 664,695,955 (350.00)14470Health Service Regulation 19,277,259 (1,363,134) - (7.00) - - - (1,363,134) 17,914,125 (7.00)14480Vocational Rehabilitation 46,762,707 (5,541,364) (201,170) (3.00) - - - (5,742,534) 41,020,173 (3.00) Total Health and Human Services 5,806,560,945 (1,513,919,802) (560,028,022) (506.00) 587,915,721 500,000 - (1,485,532,103) 4,321,028,842 (506.00)Justice and Public Safety:14500Correction 1,406,791,264 (67,856,913) (13,825,394) (1,090.00) 1,383,273 - 18.00 (80,299,034) 1,326,492,230 (1,072.00)14900Crime Control & Public Safety 44,067,870 (13,461,664) - (33.00) 3,112,757 - 55.00 (10,348,907) 33,718,963 22.00 12000Judicial 507,638,940 (37,659,907) (6,390,013) (47.00) 164,459 - 3.00 (43,885,461) 463,753,479 (44.00)12001Judicial - Indigent Defense 132,320,396 (12,188,386) - (17.50) - - - (12,188,386) 120,132,010 (17.50)13600Justice 101,047,019 (12,394,481) - (72.00) - - - (12,394,481) 88,652,538 (72.00)14060Juvenile Justice 172,651,108 (24,748,770) (718,393) (122.00) - - - (25,467,163) 147,183,945 (122.00) Total Justice and Public Safety 2,364,516,597 (168,310,121) (20,933,800) (1,381.50) 4,660,489 - 76.00 (184,583,432) 2,179,933,165 (1,305.50) Reductions Expansion Table 6Conference Approved General Fund AppropriationsAgencyFY 2010-1114
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
FY 2010-2011 FY 2010-11RecommendedAppropriationAppropriationFY 2010-11NetBudgetContinuationSupportedSupportedNetRecommendedPositionCodeFunctionBudgetRecurringNonrecurringPositionsRecurringNonrecuringPositionsChangeAppropriationChange Reductions Expansion Table 6Conference Approved General Fund AppropriationsAgencyFY 2010-11Natural and Economic Resources:13700Agriculture & Consumer Services 65,638,839 (5,079,231) - (32.20) - - - (5,079,231) 60,559,608 (32.20)14600Commerce 46,028,986 (9,502,163) - (22.00) 4,388,386 - 11.00 (5,113,777) 40,915,209 (11.00)14601Commerce - State Aid 55,129,374 (2,406,313) - - - 1,000,000 - (1,406,313) 53,723,061 - 14300Environment and Natural Resources 214,924,435 (24,664,881) - (149.92) 139,802 - - (24,525,079) 190,399,356 (149.92)14301Clean Water Management Trust 100,000,000 - (50,000,000) - - - - (50,000,000) 50,000,000 - 13800Labor 19,092,834 (1,691,971) - (9.50) - - - (1,691,971) 17,400,863 (9.50) Total Natural & Economic Resources 500,814,468 (43,344,559) (50,000,000) (213.62) 4,528,188 1,000,000 11.00 (87,816,371) 412,998,097 (202.62)14222Transportation - - - - - - - - - - Net Agency 21,716,675,665 (3,005,225,362) (1,284,670,356) (2,402.82) 954,675,044 2,000,000 117.00 (3,333,220,674) 18,383,454,991 (2,285.82)19600Capital Improvements - - - - - - - - - - Debt Service:19420General Debt Service 739,878,445 (32,304,949) - - - - - (32,304,949) 707,573,496 - 19425Federal Reimbursement 1,616,380 - - - - - - - 1,616,380 - Total Debt Service 741,494,825 (32,304,949) - - - - - (32,304,949) 709,189,876 - Reserves and Adjustments:19001Contingency and Emergency Reserve 5,000,000 - - - - - - - 5,000,000 - 19003Compensation Increase Reserve - - - - - - - - - - 19004Salary Adjustment Reserve 4,500,000 (4,500,000) - - - - - (4,500,000) - - 19056Convert Contractual Employees to - (4,000,000) - - - - - (4,000,000) (4,000,000) - 19008Retirement System Payback - - - - - - - - - - 19013Job Development Incentive Grants Reserve 27,400,000 - - - - - - - 27,400,000 - 19055Statewide Administrative Support Reduction - (6,600,000) - (165.00) - - - (6,600,000) (6,600,000) (165.00)19037BEACON Project Reserve - - - - - - - - - - 19043Health Plan Reserve - - - - 276,179,709 - - 276,179,709 276,179,709 - 19047Retirement Rate Adjustment Reserve-COLA - - - - 160,000,000 - - 160,000,000 160,000,000 - 19052Judicial Retirement - - - - 1,300,000 - - 1,300,000 1,300,000 - 19044IT Initiative 14,821,416 (6,981,416) - - - - - (6,981,416) 7,840,000 - 19xxxBiomedial Research Imaging Center (BRIC) 45,000,000 - (45,000,000) - - - - (45,000,000) - - Total Reserves and Adjustments 96,721,416 (22,081,416) (45,000,000) (165.00) 437,479,709 - - 370,398,293 467,119,709 (165.00) Total $ 22,554,891,906 $ (3,059,611,727) $(1,329,670,356) (2,567.82) $ 1,392,154,753 $ 2,000,000 117.00 $ (2,995,127,330) $ 19,559,764,576 (2,450.82)15
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
Transportation Budget
Table 7. Highway Fund Revenue
Detailed Estimates for 2009-10 and 2010-11
($ Millions)
Source
2008-09
2009-10
% Change
2010-11
% Change
Actual
Certified
Actual
Certified
2009-10
Motor Fuels Tax
Motor Fuels
$1,115.0
$1,108.5
-0.6%
$1,099.7
-0.8%
Gasoline Inspection
13.7
13.4
-1.7%
13.5
0.1%
Highway Use Reg.
0.2
0.2
0.0%
0.2
0.0%
Total Motor Fuel Taxes
$1,128.9
$1,122.1
-0.6%
$1,113.4
-0.8%
Licenses and Fees
Staggard Registration
$195.9
$202.2
3.2%
$205.6
1.7%
International Registration Plan
62.1
65.2
5.0%
66.6
2.2%
Driver Licenses
129.7
135.9
4.8%
137.7
1.3%
Truck Licenses
134.0
137.7
2.7%
140.7
2.2%
Other Licenses and Fees
63.7
67.5
6.0%
69.7
3.3%
Total Licenses and Fees
$585.3
$608.5
4.0%
$620.3
1.9%
Investment Income
$24.4
$6.0
-75.4%
$6.0
0.0%
Total Highway Fund Revenue
$1,738.6
$1,736.6
-0.1%
$1,739.6
0.2%
Transfers to General Fund
(147.5)
(108.60)
(72.90)
Total Highway Fund Availability
$1,591.1
$1,628.0
$1,666.7
* Revised Estimate based on actual collections through March 2009.16
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
Table 8 . Highway Trust Fund Revenue
Detailed Estimates for 2009-10 and 2010-11
($ Millions)
Source
2008-09
2009-10
% Change
2010-11
% Change
Actual
Certified
Actual
Certified
2009-10
Fuel Taxes and Fees
Motor Fuel Tax
$377.5
$369.5
-2.1%
$366.6
-0.8%
Highway Use
441.4
421.6
-4.5%
462.5
9.7%
Certificate of Title Fees
72.1
74.0
2.6%
75.5
2.0%
Miscellaneous Title Fees
13.9
14.8
6.9%
15.1
1.6%
Subtotal
$904.9
$879.9
-2.8%
$919.6
4.5%
Interest on Investments
$0.9
$1.4
48.9%
$1.4
0.0%
Total Highway Trust Fund Availability
$ 905.8
$881.3
-2.7%
$921.0
4.0%
* Revised Estimate based on actual collections through March 2009.17
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
FY 2009-10RecommendedAppropriationAppropriation2009-10NetContinuationSupportedSupportedNetRecommendedPositionFunctionAppropriationRecurringNonrecurringPositionsRecurringNonrecurrigPositionsChangeAppropriationChangeDOT Administration 86,303,924 (4,785,605) (1,679,928) (40.50) - - - (6,465,533) 79,838,391 (40.50) Division of HighwaysAdministration 34,905,207 (1,392,581) (172,965) (59.00) - - - (1,565,546) 33,339,661 (59.00)Construction 122,481,404 (17,140,000) (50,497,671) - 9,100,000 - - (58,537,671) 63,943,733 - Maintenance 897,149,144 (2,260,000) - - - 41,110,611 - 38,850,611 935,999,755 - Planning and Research 4,055,402 - - - - - - 4,055,402 - OSHA Program 425,000 (52,208) (17,403) - - - (69,611) 355,389 - Ferry Operations 28,765,439 (2,155,497) - - 3,116,267 400,000 79.00 1,360,770 30,126,209 79.00 State AidMunicipalities 84,481,404 - - - 3,332,472 - 3,332,472 87,813,876 - Public Transportation 96,544,229 - (21,596,267) - - (21,596,267) 74,947,962 - Airports 19,349,592 (1,128,445) (871,555) - - (2,000,000) 17,349,592 - Railroads 17,101,153 - - - - - 17,101,153 - Governor's Highway Safety Program 351,779 - - - - - 351,779 - Division of Motor Vehicles 105,621,605 (4,003,008) (202,069) (75.00) - - - (4,205,077) 101,416,528 (75.00)Other State Agencies 297,178,677 (44,773,708) (4,274,280) - 710,000 33,959,859 - (14,378,129) 282,800,548 - Reserves and Transfers 4,222,758 (4,242,758) - - 7,170,022 - - 2,927,264 7,150,022 - Capital Improvements - - - - Total Highway Fund 1,798,936,717 (81,933,810) (79,312,138) (174.50) 23,428,761 75,470,470 79.00 (62,346,717) 1,736,590,000 (95.50)Administration 48,602,400 - (6,367,680) - - - - (6,367,680) 42,234,720 - ConstructionIntrastate System 445,444,392 - (78,188,369) - - - - (78,188,369) 367,256,023 - Urban Loop System 148,271,856 - (31,616,120) - - - - (31,616,120) 116,655,736 - Secondary Roads 67,510,836 - (9,084,047) - - - - (9,084,047) 58,426,789 - State Aid to Munipalities 49,627,687 - (8,203,784) - - - - (8,203,784) 41,423,903 - - Bonds- Bond Redemption 54,065,000 - - - - - - - 54,065,000 Bond Interest 28,666,000 - - - - - - - 28,666,000 - NC Turnpike Authority 64,000,000 - - - - - - - 64,000,000 Transfer to the General Fund 108,561,829 - - - - - - - 108,561,829 - Total Highway Trust Fund 1,014,750,000 - (133,460,000) - - - - (133,460,000) 881,290,000 - ReductionsExpansionTable 9Conference Approved Changes to Highway Fund and Highway Trust Fund Budget2009-1018
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
FY 2010-11RecommendedAppropriationAppropriation2010-11NetContinuationSupportedSupportedNetRecommendedPositionFunctionAppropriationRecurringNonrecurringPositionsRecurringNonrecurrigPositionsChangeAppropriationChangeDOT Administration 86,354,752 (4,385,662) (1,679,948) (40.50) 636,000 - - (5,429,610) 80,925,142 (40.50) Division of HighwaysAdministration 34,963,043 (1,399,863) (169,325) (59.00) - - - (1,569,188) 33,393,855 (59.00)Construction 121,214,183 (17,140,000) (31,593,359) - 9,100,000 - - (39,633,359) 81,580,824 - Maintenance 897,149,144 (2,260,000) - - - 43,356,497 - 41,096,497 938,245,641 - Planning and Research 4,055,402 - - - - - - 4,055,402 - OSHA Program 425,000 (52,208) (17,403) - - - (69,611) 355,389 - Ferry Operations 28,765,439 (2,155,497) - - 3,116,267 - 79.00 960,770 29,726,209 79.00 State AidMunicipalities 83,214,183 - - - 4,626,037 - 4,626,037 87,840,220 - Public Transportation 96,544,229 - (20,750,267) - - - - (20,750,267) 75,793,962 - Airports 19,291,543 (1,125,523) (874,477) - - (2,000,000) 17,291,543 - Railroads 17,101,153 - - - - - 17,101,153 - Governor's Highway Safety Program 352,325 - - - - - 352,325 - Division of Motor Vehicles 105,732,881 (4,003,008) (202,069) (75.00) - - - (4,205,077) 101,527,804 (75.00)Other State Agencies 299,106,995 (43,980,918) (4,823,932) - 890,000 - (47,914,850) 251,192,145 - Reserves and Transfers 4,222,758 (4,242,758) - - 20,288,386 - - 16,045,628 20,268,386 - Capital Improvements - - Total Highway Fund 1,798,493,030 (80,745,437) (60,110,780) (174.50) 38,656,690 43,356,497 79.00 (58,843,030) 1,739,650,000 (95.50)Administration 50,652,480 - (6,512,160) - - - - (6,512,160) 44,140,320 - ConstructionIntrastate System 471,440,180 - (79,716,899) - - - - (79,716,899) 391,723,281 - Urban Loop System 159,678,513 - (32,234,194) - - - - (32,234,194) 127,444,319 - Secondary Roads 71,231,921 - (9,323,373) - - - - (9,323,373) 61,908,548 - State Aid to Munipalities 52,250,080 - (8,364,162) - - - - (8,364,162) 43,885,918 - - Bonds- Bond Redemption 54,030,000 - - - - - - - 54,030,000 Bond Interest 25,962,750 - - - - - - - 25,962,750 - NC Turnpike Authority 99,000,000 - - - - - - - 99,000,000 Transfer to the General Fund 73,214,076 - (319,212) - - - - (319,212) 72,894,864 - Total Highway Trust Fund 1,057,460,000 - (136,470,000) - - - - (136,470,000) 920,990,000 - Table 10Conference Approved Chages to the Highway Fund and Highway Trust Fund Budget2010-11ReductionsExpansion19
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
Revenue Forecast
Revenue Forecast
General Fund Forecast and Fund Condition
North Carolina’s economy struggled mightily in 2008-09, leading to an unprecedented decline in General Fund revenue. Employment losses mounted, particularly in the manufacturing and construction sectors. Housing starts slowed considerably and consumers continued to cut back spending. Education and health services and government were the only sectors to post positive job growth. While North Carolina’s economy is expected to improve over 2009-10 and 2010-11, the rebound will likely be very slow. Job declines will continue through 2009-10 before growing slightly again in 2010-11. Specifically, nonfarm employment is expected to decrease 2.8% in 2009-10 followed by 0.8% growth in 2010-11. Losses in manufacturing and construction will remain significant while job gains will be driven by government and education and health services. Wages and personal income are also projected to improve slowly over the biennium.
Reflecting these economic expectations, General Fund revenue is forecasted to decrease slightly in 2009-10, followed by mild growth in 2010-11. Specifically, baseline General Fund revenue is expected to decrease 1.5% in 2009-10 and grow slightly (2.8%) in 2010-11. After adjusting for the revenue changes during the 2009 Session of the General Assembly, General Fund revenue for 2009-10 is $18,926.6 million (see table 13 for a complete description). For 2010-11, General Fund revenue is $19,638.9 million (see table 13 for a complete description). Table 12 details a complete listing of the adjustments to revenue availability enacted during the 2009 Session. Major changes are highlighted below:
Increased the state sales and use tax rate. The state sales and use tax rate temporarily increases 1.0% effective September 1, 2009. The rate increase is scheduled to expire on July 1, 2011. As a result of the increase, the combined state and local tax rate increases to 7.75% for most counties.
2009-10 fiscal effect: $803.5 million
2010-11 fiscal effect: $1,061.3 million
Created corporate and individual income tax surtax. An individual and corporate income surtax is applicable for tax years 2010 and 2011. Married filing jointly taxpayers with taxable income between $100,000 and $250,000, as well as single taxpayers with income between $60,000 and $150,000, pay a surtax of two percent. Married filling jointly taxpayers with taxable income greater than $250,000 and single filers earning more than $150,000 pay an additional surtax of three percent. Corporations must also pay a surtax equivalent to three percent of their tax liability.
2009-10 fiscal effect: $195.9 million
2010-11 fiscal effect: $202.6 million
Increased alcohol excise taxes. Effective September 1, 2009, the beer, wine, and liquor excise taxes increase. Specifically, the beer excise tax increases from 53.2 cents per gallon to 61.7 cents per gallon (0.8 cents per can). The excise tax on unfortified wine increases from 21 cents to 26.3 cents per liter (equivalent to 4 cents per bottle). For fortified wine, the excise tax increases from 24 cents to 29.3 cents per liter (equivalent to 4 cents per bottle). The liquor excise tax increases from 25% to 30%.
2009-10 fiscal effect: $58.6 million
2010-11 fiscal effect: $48.8 million20
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
Revenue Forecast
Increased tobacco excise taxes. Effective September 1, 2009, the excise tax on cigarettes increases from 1.75 cents to 2.25 cents per individual cigarette. The tax on tobacco products other than cigarettes increases from 10% to 12.8% of the cost of the products.
2009-10 fiscal effect: $33.3 million
2010-11 fiscal effect: $45.9 million
Table 11. Revenue Availability, 2009-11
2009 Session of the General Assembly
(In Millions)
General Fund Increase or Decrease
2009-10
2010-11
Adjust Transfer from Insurance Regulatory Fund
(1.6)
(1.6)
Adjust Transfer from Treasurer's Office
(0.4)
(0.6)
Transfer from Disproportionate Share Reserve
25.0
0.0
Transfers of Cash Balances from Special Funds
38.3
0.0
Transfer of Cash Balances from Capital and R&R Accounts
24.4
0.0
Transfer from Health and Wellness Trust Fund
5.0
5.0
Transfer from Tobacco Trust Fund
5.0
5.0
Transfer Excess Sales Tax for Wildlife Resources Commission
1.7
1.7
Transfer Funds for Grape Growers Council
0.9
0.9
Department of Revenue Improved Enforcement
60.0
90.0
Department of Revenue Compliance Initiative
150.0
0.0
Individual Income Surtax
172.8
177.1
Corporate Income Surtax
23.1
25.5
Increase Sales Tax Rate
803.5
1,061.3
Digital Products & Click-Throughs
11.8
24.1
IRC Conformity
(116.3)
(80.9)
Adjust Revenue Distributions
22.1
0.0
Increase Excise Taxes
68.8
93.8
Suspend Corporate Income Tax Earmark -Public Schools
60.5
64.5
Increase General Government Fees
7.6
7.4
Increase Justice and Public Safety Fees
47.1
51.5
Increase Health Services Regulation Fees
1.1
1.1
Total General Fund
1,410.3
1,525.6 21
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
Revenue Forecast
Table 12. General Fund Revenue
Actual Revenue for 2008-09 and Budgeted Revenue for 2009-10 and 2010-11
(In Millions)
2008-09
2009-10
Percent
2010-11
Percent
Actual
Certified
Change
Certified
Change
Tax Revenue
Individual Income
$ 9,470.2
$ 9,514.2
0.5%
$ 9,952.3
4.6%
Corporate Income
835.5
1,051.1
25.8%
965.4
-8.2%
Sales and Use
4,677.9
5,628.6
20.3%
6,015.1
6.9%
Franchise
651.9
622.0
-4.6%
633.1
1.8%
Insurance
466.6
487.3
4.4%
509.6
4.6%
Tobacco Products
227.1
247.4
9.0%
255.8
3.4%
Beverage
228.5
287.9
26.0%
281.2
-2.3%
Inheritance
104.3
113.1
8.5%
121.9
7.8%
Licenses
37.5
35.1
-6.4%
36.9
5.1%
Mill Machinery
32.9
32.3
-1.7%
33.9
5.0%
Piped Natural Gas
34.2
36.1
5.4%
37.2
3.0%
Gift
12.3
0.0
-100.0%
0.0
n.a.
Miscellaneous
0.0
0.0
n.a.
0.0
n.a.
Total Tax Revenue
$ 16,778.9
$ 18,055.2
7.6%
$ 18,842.4
4.4%
Nontax Revenue
Investment Income
113.3
67.2
-40.7%
93.1
38.5%
Judicial Fees
191.2
247.8
29.6%
259.8
4.8%
Disproportionate Share Receipts
100.0
125.0
25.0%
100.0
-20.0%
Insurance Department
76.5
77.7
1.7%
81.9
5.4%
Miscellaneous
201.6
227.6
12.9%
171.4
-24.7%
Total Nontax Revenue
$ 682.6
$ 745.3
9.2%
$ 706.2
-5.3%
Transfers
Highway Fund
17.6
17.6
0.0%
17.6
0.0%
Highway Trust Fund
147.5
108.5
-26.5%
72.8
-32.9%
Total Transfers
165.1
126.1
-23.6%
90.4
-28.3%
Total General Fund Revenue
$ 17,626.6
$ 18,926.6
7.4%
$ 19,638.9
3.8%
Totals may differ from the sum of their parts due to rounding.22
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
Revenue Forecast
2008-092009-102010-11DescriptionActualAuthorizationAuthorizationUnreserved Credit Balance599,037,698.94$ 92,237,091.09$ 3,972,262.09$ Reserved Credit BalanceBudget Stabilization Reserve (G31)786,649,678.33 150,000,000.00 150,000,000.00 Repair and Renovations Reserve69,839,238.00 - - Disproportionate Share Receipts19,303,500.00 - - NC One Fund Reserve (G39)1,083,465.00 - - JDIG Reserve (G33 - 19944)11,759,182.00 5,181,739.00 5,181,739.00 Disaster Relief (Isabel) (BC #19930) (G42)97,158,858.97 43,954,670.86 43,954,670.86 Total Reserved Credit Balance985,793,922.30 199,136,409.86 199,136,409.86 RevenueTax Revenue 16,779,079,033.69 18,055,193,969.00 18,842,350,000.00 Nontax Revenue2,101,457,687.22 620,373,401.00 606,213,331.00 Highway Fund Transfer17,610,000.00 17,600,000.00 17,600,000.00 Highway Trust Fund Transfer147,531,245.00 108,500,000.00 72,800,000.00 Disproportionate Share Receipts100,000,000.00 125,000,000.00 100,000,000.00 Total Revenue19,145,677,965.91 18,926,667,370.00 19,638,963,331.00 Total Availability20,730,509,587.15 19,218,040,870.95 19,842,072,002.95 AppropriationsOperating Budget19,629,407,643.76 22,075,170,781.00 22,554,891,906.00 Adjustments to the Recommended Continuation Budget- (4,048,279,338.00) (4,389,282,083.00) Expansion Budget Recommended- 983,165,756.00 1,394,154,753.00 Total Operating Budget Recommended19,629,407,643.76 19,010,057,199.00 19,559,764,576.00 Capital Improvement - Direct Appropriation (19600)23,070,930.00 4,875,000.00 - Appropriation from Earmarked Ending Balance (Reserves)Capital Improvement - Repair and Renovations- - - Total Direct and Earmarked Appropriations19,652,478,573.76 19,014,932,199.00 19,559,764,576.00 Direct Authorized Transfer from Reserve786,657,512.44 - - Ending Balance291,373,500.95 203,108,671.95 282,307,426.95 Ending Reserved BalanceBudget Stabilization Reserve (19943) (G31)150,000,000.00 150,000,000.00 150,000,000.00 Repair and Renovations (BC #19945) (G32)- - - Disproportionate Share Receipts (G34)- - - NC One Fund Reserve (G39)- - - JDIG Reserve (G33) (19944)5,181,739.00 5,181,739.00 5,181,739.00 Disaster Relief (Isabel) BC #19930 (G42)43,954,670.86 43,954,670.86 43,954,670.86 Total Reserved Balance199,136,409.86 199,136,409.86 199,136,409.86 Ending Unreserved Balance92,237,091.09$ 3,972,262.09$ 83,171,017.09$ Table 13. Condition of the General Fund Fiscal Years 2008-09 and 2009-1123
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
Revenue Forecast
Highway Fund
Highway Fund revenue is forecasted to decrease slightly in 2009-10, followed by mild growth in 2010-11. Specifically, baseline Highway Fund revenue is expected to decrease 0.1% and grow slightly .2% in 2010-11. The increase in revenue collection is due to the adjustment in the excise tax on motor fuels. The excise tax rate is expected to increase .9% from 29.9 cents a gallon to 30.16 a gallon. The change in the excise tax rate is expected to be flat and offset an expected increase of 0.1% motor fuel consumption for fiscal year 2010-11. Seventy five percent of the excise tax on motor fuels is credited to the Highway Fund. After adjusting for the revenue changes during the 2009 Session of the General Assembly, Highway Fund revenue for 2009-10 is $1,736.6 (see table 14 for complete description). For 2010-11, Highway Fund revenue is $1,739.6 (see table 14 for complete description). Major changes are highlighted below:
The motor fuel excise tax floor
The motor fuel excise tax is calculated using the flat rate of 17.5¢ per gallon plus the greater value of two separate rates; the variable wholesale component which is 12.4 cents a gallon or 7% of the wholesale price of motor fuel. During the period of July 1, 2009 through June 30, 2011 the motor fuel excise tax rate may not fall below 29.9¢ per gallon.
2009-2010 fiscal effect: $9.8 million
2010-2011 fiscal effect: No significant increase
2009-20102010-2011DescriptionApprovedApprovedBudget AvailabilityBeginning Credit Balance: Unappropriated Balance from FY 2008-09$ - - Anticipated Reversions from FY 2008-09 - - Anticipated Overcollections from FY 2008-09 - - Anticipated Beginning Unreserved Credit Balance - - Recommended Budgeted Revenue: Tax Revenue 1,122,110,000 1,113,360,000 Non-tax Revenue 614,480,000 626,290,000 Total Highway Fund Revenue 1,736,590,000 1,739,650,000 Total Availability 1,736,590,000 1,739,650,000 Recommended Appropriations: Original Certified Budget 1,798,936,717 1,798,493,030 Recommended Reductions (161,245,948) (140,856,217) Recommended Expansion 98,899,231 82,013,187 Total Appropriations Recommended 1,736,590,000 1,739,650,000 Total Ending Balance $ - $ - Table 14. Conference Approved Availability and Appropriations - Highway Fund 2009-2011424
North Carolina
Post-Legislative Summary, 2009-11
Summary of the State Budget
Revenue Forecast
Highway Trust Fund
Highway Trust Fund revenue is forecasted to decrease slightly in 2009-10, followed by moderate growth in 2010-11. Specifically, baseline Highway Fund revenue is expected to decrease 2.7% and grow 4% in 2010-11. The increase in revenue is due to an expected increase in stronger retail vehicle sales. The excise tax rate is expected to increase .9% from 29.9 cents a gallon to 30.16 a gallon. The change in the excise tax rate is expected to be flat and offset an expected increase of 0.1% motor fuel consumption for fiscal year 2010-11. Twenty five percent of the excise tax on motor fuels is credited to the Highway Fund. The highway use tax is expected to increase 9.7%. After adjusting for the revenue changes during the 2009 Session of the General Assembly, Highway Trust Fund revenue for 2009-10 is $881.3 (see table 15 for complete description). For 2010-11, Highway Trust Fund revenue is $921.0 (see table 15 for complete description). Major changes are highlighted below:
The motor fuel excise tax floor
The motor fuel excise tax is calculated using the flat rate of 17.5¢ per gallon plus the greater value of two separate rates; the variable wholesale component which is 12.4 cents a gallon or 7% of the wholesale price of motor fuel. During the period of July 1, 2009 through June 30, 2011 the motor fuel excise tax rate may not fall below 29.9¢ per gallon.
2009-2010 fiscal effect: $3.3 million
2010-2011 fiscal effect: No significant increase
Table 15. Conference Approved Availability and Appropriations - Highway Trust Fund 2009-20112009-20102010-2011DescriptionApprovedApprovedBudget AvailabilityBeginning Credit Balance: Unappropriated Balance from FY 2008-09 $ - $ - Anticipated Reversions from FY 2008-09 - - Anticipated Overcollections from FY 2008-09 - - Anticipated Beginning Unreserved Credit Balance - - Recommended Budgeted Revenue: Tax Revenue 791,070,000 829,050,000 Non-tax Revenue 90,220,000 91,940,000 Total Highway Trust Fund Revenue 881,290,000 920,990,000 Total Availability 881,290,000 920,990,000 Recommended Appropriations: Original Certified Budget 1,014,750,000 1,057,460,000 Recommended Reductions (133,460,000) (136,470,000) Recommended Expansion - - Total Appropriations Recommended 881,290,000 920,990,000 Total Ending Balance $ - $ - 25
Education
Public Education
The University of North Carolina
Community CollegesNorth Carolina
Post-Legislative Summary, 2009-11
General Fund
Public Education
26
Public Education (13510) Total Appropriations and Positions 2008-09 (FY09) Authorized 2009-10 (FY10)CertifiedChangeFY09 toFY10 2010-11 (FY11) Certified ChangeFY10 toFY11Requirements $11,253,866,150 $10,333,715,540 (8.2)%$10,236,049,628 (0.9)%Receipts 2,897,920,857 2,875,454,300 (0.8)%2,875,216,405 0.0 %Appropriation $8,355,945,293 $7,458,261,240 (10.7)%$7,360,833,223 (1.3)%Positions 636.200 572.200 (10.1)%561.200 (1.9)% Appropriation Items -- Legislative Revisions and Other Adjustments Continuation 2009-10 2010-11State Public School Fund 1. Governor's Recommended Continuation Budget The Governor recommended adjustments to the continuation budget of the Department of Public Instruction. The most substantive of these adjustments for 2009-10 fall into the following categories; (1) decreases in the State Public School Fund budget due to projected decreases in average daily membership (ADM) due in large part to the new required birthdate for kindergarten enrollment; (2) an adjustment to budgeted average annual salaries for certified personnel due to attrition, and (3) the required removal of 2008-09 nonrecurring appropriations. The nonrecurring appropriation adjustment represents the largest share of the recommended reduction to the continuation budget for both years of the biennium. The 2008-09 allotted ADM was 1,476,566 and the allotted 2009-10 ADM was 1,464,913, a decrease of 11,653. The projected increase in ADM for 2010-11 explains the upward change in the Governor's recommended adjustment to the continuation budget for the second year of the biennium. The 2010-11 projected ADM is 1,478,795, an increase of 13,882 over the 2009-10 allotted ADM, and an increase of 2,229 over the 2008-09 allotted ADM. Lottery receipts were reduced by $28,464,897 for each year of the biennium based on projections from the North Carolina Education Lottery Commission. This receipt reduction was offset by a related increase in appropriation to support class size and the More at Four pre-kindergarten program, two education programs supported with lottery receipts. Receipts from the Highway Fund for the Driver Education program were North Carolina
Post-Legislative Summary, 2009-11
General Fund
Public Education
27
adjusted due to projected revisions in the ninth grade ADM. The Governor's Recommended Budget also included Truth in Budgeting Reform which adjusted the budget to: (1) more closely match actual social security and medical insurance expenditures for local school administrative unit (LEA) employees, (2) more closely match actual departmental salary expenditures, and (3) account for historically underfunded but uncapped categories of expenditures incurred by the department that were historically supported with lapsed salaries, such as the cost of application fees for the National Board for Professional Teaching Standards (NBPTS), worker's compensation, unemployment compensation, and short-term disability payments. The Truth in Budgeting Reform adjustment produced a net increase to the continuation budget of $10.1 million each year of the biennium. 1. Average Daily Membership (ADM) (5,613,500) 107,233,048 2. Average Annual Salary Adjustment (6,352,423) (6,420,945) 3. Removal of Nonrecurring Appropriation (147,894,043) (147,894,043) 4. Truth in Budgeting Reform 10,114,135 10,114,135 5. Restore One-Time Reductions 9,590,000 9,590,000 6. Benefits Adjustment 398,504 426,634 7. Purchased Services and Membership Dues 362,514 374,859 Requirements($139,394,813) ($26,576,312) 1. Lottery Receipts Adjustment (28,464,897) (28,464,897) 2. Driver Education Receipts (326,450) (964,345) Receipts($28,791,347) ($29,429,242) Appropriation($110,603,466) $2,852,930 2. Legislative Adjustments to the Continuation Budget The General Assembly reduced the continuation budget by removing all increases from the Governor's Recommended Budget including Truth-in-Budgeting Reform and ADM adjustments. ADM was partially restored as a separate item in the 2009-11 Appropriations Act (see #4 below). Nonrecurring reductions from 2008-09 were not restored to the continuation budget with the exception of the Learn and Earn Online adjustment which was partially restored as a separate item (see #6 below). Appropriation($73,903,050) ($118,955,313) North Carolina
Post-Legislative Summary, 2009-11
General Fund
Public Education
28
3. Education Stabilization Fund-Noninstructional Support Personnel Reduction The General Assembly reduced the Noninstructional Support Personnel allotment on a nonrecurring basis for both years of the biennium. This reduction is offset by the appropriation of the federal Education Stabilization Fund. The federal dollars are to be distributed to local school administrative units (LEAs) via the State's primary funding formulae as defined in Session Law 2009, Chapter 451, Section 7.34. Appropriation - Nonrecurring($379,668,352) ($373,281,648)4. Mandatory Continuation Budget Increase for ADM This item restores the mandatory increases to the continuation budget for those funding formulae allotted to LEAs that are based on projected increases in Average Daily Membership (ADM) for each year of the biennium. Appropriation$27,269,605 $61,106,959 5. Children with Disabilities Headcount Adjustment This is a technical adjustment to the Children with Disabilities allotment. The continuation budget includes anticipated growth based on the projected headcount of children with disabilities. This adjustment revises budgeted funding for pre-school and school-age children with special needs to reflect the actual April 1, 2009 headcount which was unavailable at the time the Governor's Recommended Budget was presented. It does not reduce funding per student. (2009 Session Laws, Chapter 451, Section 7.1) Appropriation($15,987,833) ($15,987,833)6. Learn and Earn Online Technical Adjustment A nonrecurring legislative decrease in appropriation of $5 million in 2007-08 was restored by the Governor in the 2009-11 continuation budget. The General Assembly removed the $5 million appropriation from the 2009-11 continuation budget in the Legislative Adjustments to the Continuation Budget (see #2 above). This item restores $3.5 million of the $5 million reduction taken by the legislature on a recurring basis. (Session Laws 2009, Chapter 451, Section 7.10) Appropriation$3,523,248 $3,523,248 7. Civil Penalties Receipts A recurring adjustment was recommended by the Governor and enacted by the General Assembly to increase the civil penalties receipts' budget based upon actual 2007-08 receipts. Civil penalty receipts are required to be deposited in the State Public School Fund (SPSF) for allotment to LEAs on a per ADM basis. Total realized 2007-08 receipts were $120.3 million, a $6.3 million increase above budgeted levels. Requirements- - Receipts$6,324,790 $6,324,790 Appropriation ($6,324,790) ($6,324,790) North Carolina
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8. Financing School Bus Replacement The Governor recommended and the General Assembly enacted the extension of school bus financing from three years to four years on a recurring basis. This adjustment does not reduce the number of buses scheduled to be replaced in the 2009-11 biennium. (2009 Session Laws, Chapter 451, Section 7.5) Appropriation($6,347,581) ($10,334,288)9. Textbook Freight The Governor recommended and the General Assembly enacted elimination of funding for textbook freight on a recurring basis. The costs will be covered through receipts from books purchased by the LEAs. Appropriation($217,837) ($217,837)10. Information Highway The Governor recommended and the General Assembly enacted the elimination of this appropriation which previously paid for LEAs to access distance learning but is now replaced with the appropriation for the School Connectivity Initiative (SCI). Appropriation($1,200,000) ($1,200,000)11. School Technology Fund The School Technology Fund is distributed based on grades K-12 allotted ADM to support the development and implementation of LEA technology plans. The General Assembly reduced the appropriation by 90% on a nonrecurring basis. The Governor recommended and the General Assembly enacted the transfer of $18 million in civil penalties held in escrow at University of North Carolina campuses to the Civil Penalty and Forfeiture Fund for appropriation. Section 7.37 of the budget bill transfers a cash balance of $613,872 from the State Literary Fund on a one-time basis. Appropriation - Nonrecurring($9,613,872) ($9,000,000)12. Textbooks The Governor recommended a nonrecurring reduction in the amount of $37.9 million to the textbook allotment due to a projected reduction in expenditures resulting from the delay in adopting the grades 6-12 math textbooks. The General Assembly enacted a larger reduction and placed a moratorium on new textbook adoptions for 2010-11. Appropriation - Nonrecurring($47,977,278) ($115,410,044)13. Textbook Balance Restoration LEA textbook account balances that were temporarily redirected in 2008-09 to address the budgetary shortfall were restored. Appropriation - Nonrecurring$50,000,000 14. NC Wise Owl NC WISE Owl is an online reference resource for teachers and students. The Governor recommended a 38% reduction in the appropriation which represents the reference service that is being provided at no cost by SAS Institute. The General Assembly enacted this reduction. Appropriation($500,000) ($500,000)North Carolina
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15. Central Office Administration This is a dollar allotment to the LEAs for salaries and benefits for central office staff which includes, but is not limited to, superintendents, associate and assistant superintendents, finance officers, athletic trainers, and transportation directors. The Governor recommended a 5% decrease from the 2009-10 continuation budget. The General Assembly enacted a 7.5% reduction for LEAs with fewer than 8,000 ADM, a 14% reduction for LEAs with between 8,000 and 30,000 ADM, and an 18% reduction for LEAs with more than 30,000 ADM. Appropriation($14,613,199) ($14,613,199)16. More at Four This reduction decreases the appropriation for the More at Four program for at-risk four-year olds on a recurring basis. The Office of School Readiness is directed to use the average 2008-09 reimbursement rate of $5,000 per slot in allocating funding. The continuation budget includes an $86 million general fund appropriation and $84.6 million in lottery receipt support for this program. Section 10.7A in the budget bill includes More at Four in a list of programs to be examined for consolidation into a single entity responsible for early childhood programs beginning in 2010-11. Appropriation($5,000,000) ($5,000,000)17. LEA Adjustment (Flexibility Reduction) This item reflects a flexibility reduction in state aid to LEAs. LEAs are strongly encouraged to use funds received through the American Recovery and Reinvestment Act to mitigate this reduction. The General Assembly directed the State Board of Education to distribute this reduction based upon ADM. This reduction shall not directly impact classroom services. (2009 Session Laws, Chapter 451, Section 7.8) Appropriation($225,000,000) ($304,774,366)18. Testing The Governor recommended that the State Board of Education (SBE) be directed to identify and eliminate certain state-administered tests not currently required by federal law or as a condition of federal grants. These tests include Chemistry End-of Course (EOC) Physics EOC, Reading and Math Competency, grade 3 Math and Reading Pretests, and Computer Skills. The General Assembly eliminated the appropriation on a recurring basis beginning in 2010-11; allowing the State Board of Education to use the 2009-10 savings to support the development and implementation of a new standard course of study for all content areas and grade levels. In addition, this will support the State Board of Education's efforts to research, design, and implement a new comprehensive state testing system that will include diagnostic, formative, benchmark/interim, and summative tests to produce a new accountability model for grades K-12. (2009 Session Laws, Chapter 451, Section 7.18 and Section 7.20) Appropriation ($3,020,122)19. Focused Education Reform This three year pilot was funded in 2007-08. The 2008-09 appropriation was $7.1 million. The Public School Forum receives $2.3 million for the pilot now titled The Collaborative Project, and the Department of Public Instruction (DPI) receives $4.8 million. The Governor recommended that North Carolina
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the DPI appropriation be reduced by 10% on a recurring basis. The General Assembly enacted this recommended reduction. In addition, the funding for 2010-11 was appropriated on a nonrecurring basis to reflect the final year of funding needed for the pilot. Appropriation($483,373) ($4,833,728) Appropriation - Nonrecurring $4,350,355 20. Staff Development The Governor recommended a 50% nonrecurring reduction in staff development funds allotted to the LEAs. The General Assembly eliminated 100% of this appropriation. Appropriation - Nonrecurring($12,557,920) ($12,619,829)21. Improving Student Accountability The Governor recommended and the General Assembly enacted the elimination of funding for this allotment. Its purpose was to support activities designed to improve the performance of those students scoring at Level I or II on certain state tests. The Disadvantaged Student Supplemental Funding (DSSF) and At-Risk Student Services allotments support similar types of activities. Appropriation($38,339,798) ($38,339,798)22. Critical Foreign Language Pilot Funds were appropriated in 2007-08 and in 2008-09 for the development and piloting of programs that would implement both online and traditional high school courses in Chinese and Arabic. The Arabic language course is currently available to students. A federal language assistance grant has funded the development and implementation of the Chinese course Levels I through IV, and Advanced Placement (AP) which are now available to students. The Governor recommended that this $500,000 appropriation be eliminated on a recurring basis and the General Assembly enacted that recommendation along with a nonrecurring appropriation in FY 2009-10 to enable the department to complete the ongoing development of online Russian and Japanese language courses. Appropriation($500,000) ($500,000) Appropriation - Nonrecurring$100,000 23. Literacy Coaches Funding for Literacy Coaches was initially appropriated in 2006-07 to provide coaching and mentoring support to all faculty in schools selected by the State Board of Education based on student performance to improve reading and literacy of students. The General Assembly eliminated funding for all 200 Literacy Coaches. Appropriation($12,034,400) ($12,034,400)24. Noninstructional Support The Governor recommended and the General Assembly enacted a 2.5% reduction in appropriated funds. These funds support clerical and custodial positions. Appropriation($10,000,000) ($10,000,000) North Carolina
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25. Math and Science Supplement Pilot The General Assembly eliminated the funding for this pilot which provided $15,000 bonuses to certain mathematics and science teachers in Bertie, Columbus, and Rockingham counties. Appropriation($515,115) ($515,115)26. Mentoring The General Assembly reduced the funding for teacher mentoring on a recurring basis by 17.9% from the continuation budget amount of $11,164,616. Appropriation($2,000,000) ($2,000,000)27. Limited English Proficiency The General Assembly reduced funding by 2.5% in FY 2009-10 and 2.3% in FY 2010-2011. Appropriation($2,000,000) ($2,000,000)28. Small County Supplemental Funding The General Assembly initially reduced funding for this appropriation by $2 million (4.4%) from the continuation budget amount of $45.1 million. Session Law 2009-575, Section 3M.(b) notwithstands Senate Bill 202 upon its enactment, thereby restoring the $2 million appropriation for Small County Supplemental Funding. (2009 Session Laws, Chapter 451 Section 7.4 and 2009 Session Laws, Chapter 575, Section 3M) 29. Transportation The transportation allotment supports salaries of transportation personnel as well as the maintenance of school buses. The General Assembly reduced the allotment by 3.9% on a recurring basis. Appropriation($15,000,000) ($15,000,000)30. Small Specialty High Schools The General Assembly eliminated funding for one counselor and one clerical position at each of the 32 high schools. Funding is retained for one clerical position and a principal position. Appropriation($3,222,496) ($3,222,496)31. Child and Family Support Teams Funds were appropriated in the 2005-07 biennium to establish 100 school-based child and family support teams to support the educational achievement of at-risk children by better connecting public schools with health, mental health, and social services. The General Assembly reduced funding for this initiative by 10% on a recurring basis. Appropriation($1,252,183) ($1,252,183)Department of Public Instruction 1. Agency Position Reduction The Governor recommended a $1.9 million recurring reduction to the Department of Public Instruction to be taken in agency position reductions. The General Assembly required the State Board of Education North Carolina
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to identify and eliminate the following number and types of positions over the biennium and reduce state funding accordingly: FY 2009-10 64 state-supported department positions FY 2010-11 100 department positions (a combination of at least 75 state funded and 25 positions funded by other resources). The department may eliminate some or all of its 29 state-funded vacant positions or shift certain positions to federal funding where possible to meet the reduction targets. Appropriation($4,625,856) ($5,420,925) Number of Positions(64.000) (75.000)2. Agency Operating Reduction The Governor recommended a $1.5 million agency operating reduction. The General Assembly reduced funding to support agency operating expenditures excluding salaries and benefits, by 11% in 2009-10 and by 15% in 2010-11. Appropriation($2,087,638) ($2,846,779)3. Legacy Funds Legacy funds were appropriated for the first time in 2006-07 to be used to bring DPI's information technology systems into compliance with statewide architecture requirements per Senate Bill 991. Legacy funds were also appropriated on a nonrecurring basis each year of the 2007-09 biennium, bringing the total nonrecurring appropriation to $6 million. These funds were appropriated to a reserve and not required to revert per special provision, thereby resulting in a cash balance. The legislature directed $3 million of the cash balance be transferred to the State Controller to support General Fund appropriation. (2009 Session Laws, Chapter 451, Section 2.2(g)) 4. Personal Financial Literacy The Governor recommended and the General Assembly enacted the elimination of the Personal Financial Literacy appropriation on a recurring basis. This appropriation is no longer necessary as this has been integrated into the Civics and Economics curricula. Department of Public Instruction (DPI) personnel shall continue to provide curriculum materials, professional development, and technical assistance to teachers. Appropriation($500,000) ($500,000)5. Governor's Schools Funding supports the Governor's Schools which are held each summer for six weeks at two college campuses. Student selection is competitive. The 2008-09 appropriation supported a total of 800 student participants. The Governor recommended reducing program support by $75,000 each year of the 2009-11 biennium and decreasing the appropriation in 2010-11 to support 400 student participants. The General Assembly enacted the recommended annual reduction. In addition, a $500 per student tuition charge will be instituted in 2010-11 (summer session 2010), generating North Carolina
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$400,000 in receipts to offset the appropriation reduction. (2009 Session Laws, Chapter 451, Section 7.39) Requirements($75,000) ($75,000) Receipts $400,000 Appropriation ($75,000) ($475,000)6. Teacher Working Conditions Survey The General Assembly eliminated funding for the Teacher Working Conditions survey and related activities on a nonrecurring basis in 2010-11. Appropriation - Nonrecurring ($215,000)Other Reserves and Transfers 1. Teaching Fellows Trust Fund The General Assembly reduced the cash balance of the Teaching Fellows Trust Fund on a nonrecurring basis by $5.5 million. The cash balance is currently $6.76 million. This reduction of the cash balance will not negatively impact program participants or operations. (2009 Session Laws, Chapter 451, Section 2.2(g)) 2. Children's Trust Fund The Governor recommended that the appropriation for this program be eliminated, the administration of the program continue to be supported by receipts from marriage license fees and be moved to the Department of Health and Human Services (DHHS). The General Assembly enacted the recommendations. Section 10.43 of Session Law 2009-451 reassigns the administration of this program to the Division of Social Services in the Department of Health and Human Services. Appropriation($247,500) ($247,500)3. Business Education and Technology Alliance The General Assembly eliminated the remaining cash balance of $26,387 and repealed the Business Education and Technology Alliance (BETA). (2009 Session Laws 2009, Chapter 451, Section 7.15) 4. North Carolina Center for the Advancement of Teaching The General Assembly transferred the North Carolina Center for the Advancement of Teaching to the State Board of Education. The budget for this entity previously resided in the Western Carolina University budget. Session Law 2009-451, Section 9.13 delineates the transfer requirements. Appropriation$5,913,229 $5,913,229 North Carolina
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5. State Literary Fund The State Literary Fund has been used to provide loans to LEAs from the proceeds of certain state property sales. Only one loan has been made in the last five years and is currently in repayment status. The Fund's cash balance of $613,872 was redirected to the School Technology Fund. (2009 Session Laws, Chapter 451, Section 7.37) 6. Computer Revolving Loan Fund The Computer Revolving Loan Fund was created to provide loans to LEAs to purchase equipment needed to implement the Uniform Education Reporting System (UERS). The last loan was made prior to 2004 and the last loan repayment was made in 2004. The General Assembly repealed the fund and eliminated its cash balance of $120,912. (2009 Session Laws, Chapter 451, Section 7.36) Pass-Throughs 1. Non-Profit Agencies The General Assembly enacted recurring reductions to the following non-profit agencies by the amount specified. Communities in Schools ($160,750) Schools Attuned ($820,911) ExplorNet ($300,000) Teacher Cadet ($60,000) NC Network ($312,625) Science Olympiad ($22,500) Teach for America ($50,000) NC Science, Math & Technology Education ($100,000), and Project Enlightenment ($200,000) Funding for the Public School Forum administration was reduced by 10% ($234,271) in 2009-10 and 2010-11. The Forum's state support was transitioned to nonrecurring funding in 2010-11. The $1.5 million appropriated to the Teacher Academy for Literacy Coach training was eliminated. The remaining $5.5 million provided to support the Academy's activities was reduced by 15% ($833,462). Appropriation($4,594,519) ($6,702,953) Appropriation - Nonrecurring $2,108,434 North Carolina
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Total Continuation Changes 2009-10 2010-11Recurring Requirements ($542,936,109) ($536,126,711) Receipts (22,466,557) (22,704,452) Appropriation ($520,469,552) ($513,422,259) Number of Positions (64.000) (75.000)Nonrecurring Requirements ($399,717,422) ($504,067,732) Receipts - - Appropriation ($399,717,422) ($504,067,732) Number of Positions - - Expansion 2009-10 2010-11 1. Learn and Earn Early College High Schools The Governor recommended and the General Assembly appropriated funds for 12 schools that have completed planning and will enroll students for the 2009-10 academic year. This brings the total number of sites to 68. The 12 new sites are: Cabarrus-Kannapolis Early College, Early College EAST (at Craven CC), Franklin County Early College (at Vance-Granville CC), Henderson Early College (at Blue Ridge CC), Mayland Early College, Stokes County Early College (at Forsyth Tech), Wake NC State Early College, Roanoke Valley Early College (at Halifax CC), Wilkes Early College, Wilson Early College Academy, Granville County Schools Learn and Earn Early College, and James Kenan Early College High School. The nonrecurring appropriation provides $10,000 per site to support start-up costs associated with the first year of operation. Appropriation$3,601,265 $3,601,265 Appropriation - Nonrecurring$120,000 North Carolina
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2. North Carolina Virtual Public School (NCVPS) The Governor recommended and the General Assembly appropriated a $2 million increase in funding to the NCVPS. The NCVPS received an initial appropriation of $2.7 million in 2006-07. This program has continued to expand since its inception. Course enrollments have increased 80% over 2007-08. Course enrollments for 2008-09 were 33,131 compared to 18,365 in 2007-08. In addition, approximately 600 students from more than 100 high schools and 60 districts were enrolled in the credit recovery program. This appropriation provides a recurring source of funds to support the cost of teachers and instructional materials for students enrolled in NCVPS courses. (2009 Session Laws, Chapter 451, Section 7.9) Appropriation$2,000,000 $2,000,000 3. Plan for Statewide Motor Coach Permit The General Assembly appropriated nonrecurring funds and directed the State Board of Education, in conjunction with the Division of Motor Vehicles, to develop a plan for a statewide permit for motor coach companies seeking to contract with local school systems to transport students and other authorized personnel on school-sponsored trips. The plan is to be developed by January 1, 2010. Appropriation - Nonrecurring$5,000 4. Interstate Commission for Educational Opportunity for Military Children The General Assembly appropriated funds to cover the cost of dues for North Carolina's membership in the Interstate Commission for Educational Opportunity for Military Children. Appropriation$48,306 $48,306 5. District and School Transformation Initiative The Governor recommended $3 million on a recurring basis to provide tailored, sustained support to enable struggling schools and districts to improve student achievement. The General Assembly enacted a $2.5 million recurring appropriation to expand the initiative to redesign the framework for delivering technical assistance and other support to low performing schools. Appropriation$2,500,000 $2,500,000 Pass-Throughs 1. Dropout Prevention Grants The Governor recommended a recurring appropriation for Dropout Prevention Grants and the General Assembly appropriated recurring funding. These grants are awarded on a competitive basis to local school administrative units, schools, local agencies, or nonprofit organizations that support programs that address dropout prevention. The maximum grant award is $175,000. The funding can be used to provide continued funding to past grant recipients or to fund new recipients. (2009 Session Laws, Chapter 451, Section 7.13 and 2009 Session Laws, Chapter 575, Section 3L) Appropriation$13,000,000 $13,000,000 North Carolina
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2. Tarheel ChalleNGE Academy The General Assembly appropriated funds to the Department of Public Instruction for the Tarheel ChalleNGE Academy located in Sampson County. The academy is a quasi-military program for high school dropouts or students who have been expelled. It is sponsored in part by funds from the North Carolina National Guard. Historically, the program infrastructure and the appropriation for this academy have resided with the Department of Crime Control and Public Safety. Restoration of nonrecurring funding received in 2008-09 was subject to findings of a continuation review due to the General Assembly by December 1, 2008. The funds appropriated to DPI for this program will be transferred to the Department of Crime Control and Public Safety on an annual basis to administer the program. Appropriation$1,228,350 $1,228,350 Total Expansion Changes 2009-10 2010-11Recurring Requirements $22,377,921 $22,377,921 Receipts - - Appropriation $22,377,921 $22,377,921 Number of Positions - -Nonrecurring Requirements $125,000 - Receipts - - Appropriation $125,000 - Number of Positions - - Other Provisions 2009-10 2010-11Special Provisions 1. Continuation Review of Certain Funds, Programs, and Divisions It is the intent of the General Assembly to establish a process to periodically and systematically review the funds, agencies, divisions, and programs financed by State Government. This process shall be known as the Continuation Review Program. It is intended to assist the General Assembly in determining whether to continue, reduce or eliminate funding for the State's funds, agencies, divisions, and programs subject to continuation review. The five identified programs and agencies shall submit a final report to the General Assembly by March 1, 2010. The Drivers' Education Program in the Department of Transportation is one of North Carolina
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the five identified programs. (Session Laws 2009, Chapter 451, Section 6.6E) 2. Funds for Academically Gifted Children The State Board of Education is directed to allocate funds for academically or intellectually gifted children on the basis of $1,163.07 per child. A local school administrative unit shall receive funds for a maximum of 4% of the allocated average daily membership. The State Board shall allocate funds for no more than 58,597 children for the 2009-10 school year. The dollar amounts allocated under this section shall adjust in accordance with legislative salary increments, retirement rate and health benefit adjustments for personnel who serve academically or intellectually gifted children. (Session Laws 2009, Chapter 451, Section 7.2) 3. Use of Supplemental Funding in Low Wealth Counties All funds received pursuant to this section shall be used only (i) to provide instructional, instructional support, teacher assistant, and clerical positions, school computer technicians, instructional supplies and equipment, staff development, and textbooks, and (ii) for salary supplements for instructional and instructional support personnel. Local boards of education are encouraged to use at least 25% of the funds to improve the academic performance of children who are performing at Level I or II on either reading or mathematics end-of-grade tests in grades 3-8 and children who are performing at Level I or II in grades 4 and 7. Except as provided in subsection (g) in this section, the State Board of Education shall allocate these funds to local school administrative units located in whole or in part in counties in which the county wealth as a percentage of the State average wealth is less than 100%. The formula in this section is solely a basis for distribution of funding for low wealth counties and is not intended to reflect any measure of the adequacy of the educational program or funding for public schools. The formula is also not intended to reflect any commitment by the General Assembly to appropriate any additional supplemental funds for low wealth counties. Counties that had effective tax rates in the 1996-97 fiscal year that were above the state average effective tax rate but had effective tax rates below the state average in 1997-98 fiscal year or thereafter, shall receive reduced funding. A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. For the 2009-11 fiscal biennium, the State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds. (Session Laws 2009, Chapter 451, Section 7.3(a-i) 4. Discrepancies Between Anticipated and Actual ADM If the State Board of Education does not have sufficient resources in the ADM Contingency Reserve line item to make allotment adjustments in accordance with the Allotment Adjustments for ADM Growth provisions of the North Carolina Public Schools Allotment Policy Manual, the State Board may use funds appropriated to State for Public Schools for this North Carolina
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purpose. If the higher of the first or second month ADM in a local school administrative unit is at least 2% or 100 students lower than the anticipated ADM used for allotments for the unit, the State Board shall reduce the allotments for the unit. The reduced allotments shall be based on the higher of the first or second month ADM plus one-half of the number of students overestimated in the anticipated ADM. The allotments reduced shall include only those allotments that may be increased based on the Allotment Adjustments for ADM Growth provisions of the North Carolina Public Schools Allotment Policy Manual. (Session Laws 2009, Chapter 451, Section 7.6(a-b) 5. Litigation Reserve Funds The State Board of Education may expend up to $500,000 each year for the 2009-10 and 2010-11 fiscal years from unexpended funds for certified employees' salaries to pay expenses related to litigation. (Session Laws 2009, Chapter 451, Section 7.7) 6. ABCs of Public Education The State Board is directed to place a one year moratorium on financial awards paid to school personnel in the 2009-10 fiscal year based on 2008-09 academic performance. The Board is also directed to develop a plan to restructure the ABCs Accountability System and report the restructuring plan to the Governor and Joint Legislative Education Oversight Committee by January 31, 2010. (Session Laws 2009, Chapter 451, Section 7.11) 7. School Connectivity Initiative Up to $350,000 may be transferred to the Office of the Governor for NC Virtual within the Education Cabinet and for the E-Learning Portal. These funds shall be used to provide services to coordinate e-learning activities across all state educational agencies and to make the Education E-Learning Portal fully operational by December 1, 2009. Up to $300,000 may be transferred annually through June 30, 2013, to the Friday Institute at North Carolina State University to evaluate the effectiveness of using technology and its impact on 21st Century learning outcomes approved by the State Board of Education. (Session Laws 2009, Chapter 451, Section 7.12(a-b) and Session Laws 2009, Chapter 575, Section 3E) 8. Department of Public Instruction Budget Flexibility The Department of Public Instruction may reorganize if necessary, to implement the budget reductions set out in this act. The Department shall report any reorganization to the Joint Legislative Commission on Governmental Operations. (Session Laws 2009, Chapter 451, Section 7.14) 9. North Carolina 1:1 Learning Project Funds that were unexpended or unencumbered at the end of the 2008-09 fiscal year shall not revert but remain available for expenditure through June 30, 2010. State funds may be used to develop a statewide plan for North Carolina
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extending the program to additional high schools. (Session Laws 2009, Chapter 451, Section 7.17) 10. Development of a Pre-K-20 Data System The Department of Public Instruction, the North Carolina Community College System, and the University of North Carolina are directed to collaboratively develop and determine technical specifications for a Pre-K-20 data system to centralize data collected on students enrolled in Pre-K programs through doctoral programs. All three entities are charged with developing a strategy for tracking students for five years after they complete their education at a North Carolina public education institution. Private colleges and universities are urged to assist with the implementation of this system. (Session Laws 2009, Chapter 451, Section 7.19) This section is amended by deleting the language ''Department of Public Instruction'' wherever it appears and substituting ''State Board of Education.'' (Session Laws 2009, Chapter 575, Section 3G) 11. Remove Barriers to Lateral Entry into Teaching The State Board of Education shall: (1) Review the lateral entry program and identify and remove from it barriers to the lateral entry of skilled individuals from the private sector into the teaching profession; (2) Reduce the coursework requirements for lateral entry by consolidating required competencies into fewer courses and fewer semester hours coursework; and (3) Provide additional opportunities for individuals to complete coursework online and at community colleges. The State Board is required to report to the Legislative Education Oversight Committee by January 15, 2010 on implementation. (Session Laws 2009, Chapter 451, Section 7.21) 12. No Pay Decrease for Teachers Who Become Assistant Principals G.S. 115C-285(a) is amended by adding a new subdivision requiring that principals and supervisors paid from State funds be paid as follows: A teacher who becomes an assistant principal without a break in service shall be paid on a monthly basis, at least as much as he or she would earn as a teacher employed by that local school administrative unit. (Session Laws 2009, Chapter 451, Section 7.22) 13. Teachers for Geographically Isolated K-12 Schools The State Board is directed to modify its policy on the allotment of additional classroom teachers to schools containing grades K-12 when consolidation is not feasible due to the geographic isolation of the school. If a school is located in a local school administrative unit in which the average daily membership is less than 1.5 per square mile, the State Board of Education shall at a minimum: (1) Allot teachers to the geographically isolated school on the basis of one classroom teacher per grade level; and (2) Allot teachers to the remainder of the local school administrative unit under the regular teacher allotment formula. The State Board may allot additional teachers to the local school administrative unit if demographic conditions warrant. (Session Laws North Carolina
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2009, Chapter 451, Section 7.26) 14. Ensure Access to the EVAAS (Education Value Added Assessment System) The State Board of Education shall use funds appropriated to the State Public School Fund for the 2009-11 fiscal biennium to ensure that all local school administrative units and charter schools have access to SAS EVAAS. (Session Laws 2009, Chapter 451, Section 7.27) 15. National Board for Professional Teaching Standards (NBPTS) Certification If the cost of the application fees for teachers applying for the NBPTS certification for FY 2010-11 exceeds $3,274,500, funds from the State Public School Fund (SPSF) shall be used to pay the excess amount. G.S 115C-296.2 is rewritten to lend rather than pay teachers the participation fee for the NBPTS certification beginning in FY 2011-12, and to continue to pay a significant salary differential to teachers who attain the national certification. The loan for an application fee must be repaid within three years to the State Education Assistance Authority (SEAA). Appropriations for this purpose, loan repayments, and earned interest on these funds shall be placed in a trust fund. Funds shall be used only for loans for the NBPTS certification and administrative costs of SEAA. SEAA shall adopt rules and guidelines regarding the loan repayment of the NBPTS application fee. (Session Laws 2009, Chapter 451, Section 7.30) 16. School Technology Plans Part 3A of Article 8 of Chapter 115C of the General Statutes is rewritten. The Commission on School Technology is located administratively in the Department of Public Instruction. The purpose of the Commission shall be to advise the State Board of Education on the development of a State School Technology Plan that (i) ensures the effective use of technology is built into the North Carolina Public School System for preparing a globally competitive workforce and citizenry for the 21st century, and (ii) ensures equity and access to school technology for all segments of the public school population in North Carolina. The Commission shall meet at least twice each fiscal year and shall provide input and feedback on the State School Technology Plan prior to approval. (Session Laws 2009, Chapter 451, Section 7.31) 17. IDEA Funds To the extent that federal law and the conditions of federal grants permit, the General Assembly urges local school administrative units to redirect IDEA funds received under the American Recovery and Reinvestment Act (ARRA) of 2009 to other at-risk students. Local school administrative units receiving IDEA funds under the ARRA of 2009 are required to report to the Joint Legislative Education Oversight Committee on the detailed expenditure of funds by March 15, 2010, and March 15, 2011. (Session Laws 2009, Chapter 451, Section 7.32) North Carolina
Post-Legislative Summary, 2009-11
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18. Access to NCVPS and Learn and Earn Online The State Board is to report to the Joint Legislative Education Oversight Committee and the Fiscal Research Division prior to December 1, 2009 on (i) its policy regarding access for nonpublic school children to the North Carolina Virtual Public School (NCVPS) and Learn and Earn Online, and (ii) funding sources it authorizes including tuition, for nonpublic school students in these programs. (Session Laws 2009, Chapter 451, Section 7.33) 19. Salary of Teachers with Graduate Degrees G.S. 115C-302.1 is amended by adding a new subsection to read: ''(b1) The State Board of Education shall maintain the same policies related to masters pay for teachers that were in effect for the 2008-09 fiscal year.''(Session Laws 2009, Chapter 451, Section 7.35) 20. Charter School Evaluation Of the funds appropriated to State Aid to local school administrative units, up to $50,000 a year for the 2009-10 and 2010-11 fiscal year shall be used by the North Carolina Center for Public Policy Research, Inc. to evaluate charter schools. The evaluation shall consider the advantages and disadvantages of North Carolina's method of financing charter school operations, as well as the extent to which charter schools have accomplished the six objectives set out in G.S. 115C-238.29A. The State Board of Education shall report the results of the evaluation to the Joint Legislative Education Oversight Committee and the Fiscal Research Division. (Session Laws 2009, Chapter 451, Section 7.38) 21. Transfer of Funds to the Community College System Office for Learn and Earn Online Senate Bill 202, 2009 Regular Session, is rewritten upon becoming law to direct the Office of State Budget and Management to transfer sufficient funds from the State Public School Fund to the Community College System Office to implement Session Law 2009, Chapter 451, Section 8.6(a). (Session Laws 2009, Chapter 575, Section 4) 22. Task Force on the Consolidation of Early Childhood Education and Care It is the intent of the General Assembly that not later than July 1, 2010, certain agencies and programs relating to early childhood education and care shall be consolidated. There is a Joint Legislative Task Force on the Consolidation of Early Childhood Education and Care. The Department of Health and Human Services and the Department of Public Instruction shall work with the Task Force to develop and implement the Consolidation Plan. Task Force membership shall include appointees of the House of Representatives, the Senate, the Governor, and any ad hoc members the Governor deems beneficial to achieve the goals of the Task Force. The Task Force shall report its findings by March 15, 2010 to the Joint Legislative Commission on Governmental Operations, the House of Representatives and Senate Appropriations Subcommittees on Health and Human Services, the House of Representatives and Senate Appropriations Subcommittees on Education, and the Fiscal Research North Carolina
Post-Legislative Summary, 2009-11
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Division. The House and Senate Appropriations Subcommittees shall develop language and a budget proposal by May 30, 2010 to present to the 2010 Regular Session to implement the Consolidation Plan effective July 1, 2010. (Session Laws 2009, Chapter 451, Section 10.7A) 23. Teacher Salary Schedules The monthly salary schedules as they appear in this section apply for the 2009-10 fiscal year to certified personnel of the public schools who are classified as teachers. The schedule contains 33 steps with each step corresponding to one year of teaching experience. Public school employees paid according to this salary schedule and receiving NBPTS certification or obtaining a masters degree shall not be prohibited from receiving the appropriate increase in salary. Teachers employed during the 2008-09 school year who did not work the required number of months to acquire an additional year of experience shall not receive a decrease in salary as otherwise would be required by the salary schedule that appears in this section. The rate of annual longevity payments for teachers based on years of state service is specified in this section, as well as the salary supplement for those teachers, school psychologists, speech pathologists, and audiologists achieving the six-year degree, or doctoral level. The first step of the salary schedule for school psychologists shall be equivalent to Step 5 on the salary schedule for certified personnel who are classified as ''M'' teachers. Longevity for certified psychologists is based on years of state service in the same manner as teachers. Speech pathologists who are certified at the master's degree level and school audiologists certified at the master's degree level shall be paid on the school psychologist salary schedule. Certified school nurses employed as nurses shall be paid on the ''M'' salary schedule. The term ''teacher'' in this section also includes instructional support personnel. (Session Laws 2009, Chapter 451, Section 26.15 (a-g) 24. School-Based Administrator Salary Schedule The base salary schedule that appears in this section for school-based administration shall only apply to principals and assistant principals beginning July 1, 2009. School-based administrators employed during the 2008-09 school year who did not work the required number of months to acquire an additional year of experience and who are employed during the 2009-10 school year in the same classification shall not receive a decrease in salary as otherwise would be required by the salary schedule. The appropriate classification for principals and assistant principals except for principals in alternative schools and cooperative innovative high schools, is determined by the number of teachers supervised. Principal placement on the salary schedule includes the number of teachers and assistant principals supervised. This section describes principal placement and movement on the salary schedule, compensation for six-year degree level and doctoral level academic preparation, and longevity pay. This section addresses salary schedule placement after principal reassignment, but excludes transfers in school systems that have been created, or will be created by merging two or more school systems. These transfers are exempt from the provisions in subsection (f) for one calendar year following the date of the merger. Participants in an approved full-time North Carolina
Post-Legislative Summary, 2009-11
General Fund
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master's in school administration program shall receive up to a 10 month stipend at the beginning salary of an assistant principal during the internship period of the master's program. During the 2009-10 fiscal year the placement on the salary schedule of an administrator with a one-year provisional assistant principal's certificate shall be at the entry-level salary for an assistant principal or the appropriate step on the teacher salary schedule, whichever is higher. (Session Laws 2009, Chapter 451, Section 26.16 (a-h)and Session Laws 2009, Chapter 450, Section 1) 25. Leadership Academy Senate Bill 202, 2009 Regular Session is amended by adding Section 7.42 that allows the Department of Public Instruction to use up to $200,000 of funds appropriated in fiscal year 2009-10 to support a Leadership Academy that provides professional development to superintendents to enable them to train principals to address critical areas such as student achievement and teacher recruitment and retention. (Session Laws 2009, Chapter 575, Section 3I) 26. Support Services Division Senate Bill 202, 2009 Regular Session is amended when it becomes law by adding the following section: The State Board of Education may use, out of funds available, up to $1.5 million that had previously been set aside from G.S. 115C-546.2 to support positions in the Department of Public Instruction's Support Services Division. (Session Laws 2009, Chapter 575, Section 3K) 27. North Carolina Teacher Salary Schedule Restructuring Senate Bill 2002, 2009 Regular Session is amended after becoming law, to direct the Joint Legislative Education Oversight Committee to develop a plan to restructure the North Carolina Teacher Salary Schedule. The Committee shall consider the factors listed below: (1) Emphasizes increasing the beginning teacher salary, (2) Aligns the schedule with the newly adopted North Carolina Professional Teaching Standards, (3) Rewards accomplished teachers for taking on challenging assignments, (4) Provides incentives for becoming licensed in high-needs subject areas, and teaching in high-needs areas of the state, (5) Considers research and data that supports improved teaching and learning, and (6) Provides optional pathways for salary increases that focus on strategies that lead to improved student learning. The Committee shall report the plan to the General Assembly no later than September 30, 2010. (Session Laws 2009, Chapter 575, Section 3.J) 28. Allocation of Excess Lottery Revenue Senate Bill 202, 2009 Regular Session, is amended upon passage by adding a new subsection to read: Notwithstanding G.S. 18C-164(f), if the actual net lottery revenues exceed the amount appropriated in subsection (b) of this section, the excess revenues shall be allocated on the basis of average daily membership to local school administrative units that did not qualify for funding for the 2009-10 and 2010-11 fiscal years North Carolina
Post-Legislative Summary, 2009-11
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Public Education
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pursuant to G.S. 115C-546.2(d)(2). (Session Laws 2009, Chapter 575, Section 3N) Total Other Provisions Changes 2009-10 2010-11Recurring Requirements - - Receipts - - Appropriation - - Number of Positions - -Nonrecurring Requirements - - Receipts - - Appropriation - - Number of Positions - - Total Revisions for Public Education 2009-11 2009-102010-11Recurring Requirements ($520,558,188)($513,748,790) Receipts (22,466,557)(22,704,452) Appropriation ($498,091,631)($491,044,338) Number of Positions (64.000)(75.000)Nonrecurring Requirements ($399,592,422)($504,067,732) Receipts -- Appropriation ($399,592,422)($504,067,732) Number of Positions -- Total Budget Revisions ($897,684,053)($995,112,070)Total Position Revisions(64.000)(75.000) North Carolina
Post-Legislative Summary, 2009-11
General Fund
The University of North Carolina
47
The University of North Carolina (160xx) Total Appropriations and Positions 2008-09 (FY09) Authorized 2009-10 (FY10)CertifiedChangeFY09 toFY10 2010-11 (FY11) Certified ChangeFY10 toFY11Requirements $4,186,249,148 $4,006,341,427 (4.3)%$3,972,352,497 (0.8)%Receipts 1,291,539,366 1,299,507,092 0.6 %1,315,800,489 1.3 %Appropriation $2,894,709,782 $2,706,834,335 (6.5)%$2,656,552,008 (1.9)%Positions 36,807.810 36,828.810 0.1 %36,828.810 0.0 % Appropriation Items -- Legislative Revisions and Other Adjustments Continuation 2009-10 2010-11Base Budget Adjustments 1. Governor's Recommended Continuation Budget The Governor recommended adjustments to the continuation budget of the UNC System. These adjustments included inflationary increases as well as increases for Truth-in-Budgeting Reform, capital outlay (vehicles, equipment, library books and high school textbooks), reserves for new facilities, and enrollment growth. Other adjustments included decreases for the removal of nonrecurring appropriations made in 2008-09. 1. Salary Related Increases 17,941,178 18,321,298 2. Supplies and Materials 296,172 533,792 3. Current Obligations 373,171 393,476 4. Utilities 18,636,261 21,452,263 5. Capital Outlay 16,272,896 16,694,461 6. Reserves for Facilities Operations 11,206,113 28,791,675 7. Enrollment Growth 63,024,121 134,230,854 8. UNC School of the Arts (UNCSA) High School Initiative 201,165 201,165 9. Removal of Nonrecurring Expansion Funding (28,584,170) (28,584,170) 10. Fixed Charges 6,752 82,321 11. UNC-General Administration (UNC-GA) Financial Aid Programs 41,545,307 40,989,499 Requirements$140,918,966 $233,106,634 North Carolina
Post-Legislative Summary, 2009-11
General Fund
The University of North Carolina
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1. Utilities 630,074 700,782 2. Sale of Surplus Property 7,277 (153,057) 3. Enrollment Growth 18,826,345 36,600,852 4. UNC-General Administration (UNC-GA) Financial Aid Programs (10,020,176) (10,020,176) 5. Other Changes in Receipts (27) (183,560) Receipts$9,443,493 $26,944,841 Appropriation$131,475,473 $206,161,793 2. Legislative Adjustments to Continuation Budget The General Assembly reduced the continuation budget by removing all increases from the Governor's Recommended Budget, including Truth-in-Budgeting and enrollment growth. Enrollment growth was funded as a separate item in the 2009-11 Appropriations Act. 1. Salary Related Increases (19,911,730) (20,243,475) 2. Supplies and Materials (303,402) (541,702) 3. Current Obligations (373,171) (393,476) 4. Utilities (18,779,321) (21,593,662) 5. Capital Outlay (22,355,651) (22,777,216) 6. Reserves for Facilities Operations (11,980,425) (29,501,805) 7. Enrollment Growth (63,024,121) (134,230,854) 8. UNCSA High School Initiative (201,165) (201,165) 9. Fixed Charges (6,752) (82,321) 10. UNC-GA Financial Aid Programs (44,024,975) (43,586,348) Requirements($180,960,713) ($273,152,024) 1. Sale of Surplus Property (264,794) 56,421 2. Enrollment Growth (18,826,345) (36,600,852) 3. UNC-GA Financial Aid Programs 10,000,000 10,000,000 4. Other Changes in Receipts 27 183,560 Receipts($9,091,112) ($26,360,871) Appropriation($171,869,601) ($246,791,153) 3. Fully Fund Enrollment Growth The Governor recommended and the General Assembly appropriated funds to fully support projected UNC enrollment increases. Enrollment growth funding is based on an anticipated increase of 4,705 FTE or 2.46% in 2009-10. An additional app