North Carolina state budget. Post-legislative budget summary

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Post-Legislative Budget Summary, 2000-01
I. Total State Budget
The 2000 General Assembly revised the previously enacted state budget for the 2000-01
fiscal year, the revised version of which totals $24.5 billion. The total state budget is supported
from four primary sources including $14.3 billion from General Fund tax collections and the
earnings from investments referred to as nontax revenue; $2.1 billion from the Highway Fund
and the Highway Trust Fund tax and nontax revenue; $6.1 billion from federal funds allocated to
North Carolina; and $2.0 billion from other receipts such as tuition, fees, and other charges
authorized by the General Assembly or other agency policy.
Funding for current operations of state government is authorized at $23.9 billion for the
2000-01 fiscal year representing an increase of $1.1 billion, or 5% over the 1999-2000 fiscal
year. Current operations of state government, traditionally referred to as the “operating budgets”
of agencies, include funding for existing programs along with authorized expansion of those
programs, implementation of new programs authorized by the General Assembly, salary and
other incentive compensation for teachers and state employees, and nonrecurring appropriations
for equipment and other one-time expenditures. For 2000-01, current operations compose 97.7%
of the state budget while the remaining 2.3% is budgeted for capital improvements and other
nonrecurring items.
With respect to the operating budgets of state agencies, the General Fund supported
operating budget for 2000-01 is $13.8 billion, representing an increase of $729.5 million or
$1 billion rounded, or 5.6% over the 1999-2000 fiscal year. Programmatically, the largest
dedication of resources for the state budget is for support of education programs provided by the
state’s public schools, community colleges, and university system. These programs require
$8.3 billion of the General Fund operating budget of the State. Public education programs
received appropriations totaling $5.9 billion; community colleges and universities received
funding for programs totaling $2.4 billion. The second largest component of the General Fund-supported
biennial budget is the $2.9 billion authorized to the Department of Health and Human
Services for support of Medicaid, Temporary Assistance to Needy Families (TANF); Smart
Start; and programs which assist individuals with problems associated with mental health,
substance abuse, developmental disabilities, blind, deaf and hard of hearing. Another major
component of the budget is the Department of Correction in which programs for housing,
supervising, and rehabilitating inmates require appropriations totaling $876 million or $1 billion
rounded for FY 2000-01. Combined, these three areas of the budget received increases in
appropriations of $544.3 million for the 2000-01 fiscal year.
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Post-Legislative Budget Summary, 2000-01
Total State Budget - Continued
The 2000 General Assembly continued to focus its resources on programs which have
been initiated in prior years including attaining the national average for teachers by fiscal year
2000-01 ($243.0) and further expansion of services statewide for Smart Start ($44). Both of
these goals will have been attained with appropriations made by the 2000 Assembly. The
Assembly also adopted a comprehensive compensation package for state employees which
included 4.2% funding for salary increases for state employees consistent with the State
Employees Pay Plan ($206.2) along with a $500 ($83.5) bonus for all qualifying employees, and
sufficient funds to support the employer’s share of the rising cost of health insurance for teachers
and state employees ($48 million). These items make up approximately 86.7% of all recurring
expansion funds appropriated by the 2000 General Assembly.
While nonrecurring availability was limited as a result of the special reserve of $836.7
which was authorized by the December Special Session for Hurricane Floyd Recovery, the
Assembly elected to utilize accumulated earnings in the retirement systems which provide
retirement benefits for most state employees. The use of these earnings contributed $191.3
million and $60.9 million to recurring and nonrecurring availability respectively. This allowed
the Assembly to begin to restore some of the statutory reserves which had been depleted due to
natural disasters and court litigation. This includes the Reserve for Repairs and Renovations
($100 million), the Clean Water Management Trust Fund ($30 million), and the Savings Reserve
Account ($120 million). In addition, the final payment of the Intangibles Tax liability was
authorized from availability in the amount of $240 million. Appropriations for capital
improvements were limited to $14.9 million and directed primarily for water resources projects
($13.6 million) and a construction of a new National Guard Armory in Charlotte ($1.6 million).
The 2000-01 continuation, expansion, and capital budget of the Department of
Transportation, supported primarily from the Highway Fund and the Highway Trust Fund tax
and nontax revenue, increased by 6.7% over the 1999-2000 fiscal year. Appropriations to the
Highway Trust Fund of $995.5 million in 2000-01 represent 32.8% of the Department’s total
budget, while Highway Fund appropriations of $11.25 billion in 2000-01 comprise 41.0% of the
budget. The remaining funding for the Department of Transportation budget is supported from
federal funds, departmental receipts, and authorized transfers from the General Fund. The full
budget for Transportation begins on page 125 of this document.
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Post-Legislative Budget Summary, 2000-01
Total State Budget - Continued
Table 1
Total North Carolina State Budget by Function
and Source of Funds
2000-2001
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Post-Legislative Budget Summary, 2000-01
II. Economic Outlook For 2000-01
A. For The Nation
Despite the attempts by the Federal Reserve to slow the economy through increases in the
federal funds rate, the U.S. economy continues to grow at a rapid pace. In the second quarter of
2000, Real Gross Domestic Product increased at a 5.2% annual rate. This advance comes on the
heels of a 4.8% gain in the first quarter. After reviewing the recent employment and consumer
spending data which suggest that the U. S. economy really is slowing down, the Federal Reserve
Board decided to maintain the federal funds rate at 6.5% during its meeting of August 22, 2000.
The Federal Reserve is expected to hold interest rates stable through December.
Consumer markets are expected to remain healthy in 2000-01, despite the jitters from
Wall Street and higher gasoline prices. Consumer optimism will remain high as long as the
unemployment rate remains at near 4.0%, as projected. Real consumer spending is forecast to
grow by 4.2% in 2000-01, cooling from the prior year due to an expected slowdown in light-vehicle
sales.
Despite the recent rise in fuel prices, worries about inflation continue to be largely
confined to Federal Reserve Chairman Alan Greespan. The Consumer Price Index is projected
to rise by 2.8% in 2000-01.
Overall, Real Gross Domestic Product is forecast to increase by 3.8% in 2000-01, down
from a 4.9% surge in 1999-2000. However, this rate of growth compares very favorably with the
2.6% average rate of real GDP growth over the past 20 years.
B. For North Carolina
Since emerging from the 1990-1991 recession, North Carolina’s employment growth has
been well above the national average. Fiscal Year 2000-01 will follow suit, with nonfarm
payroll employment expanding by another 2.3%. The continued erosion of manufacturing
payrolls is a negative, but will be dominated by the strength in services and retail and wholesale
trade, with more than 60,000 new jobs coming from these sectors combined.
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Post-Legislative Budget Summary, 2000-01
Economic Conditions - Continued
On the downside, North Carolina’s tight labor markets are becoming a growing problem,
as firms are having more and more difficulty finding experienced, skilled labor. The situation is
most severe in Piedmont North Carolina in which the state’s high-technology firms are currently
concentrated. While the unemployment rate is at 3.2% statewide in July 2000, it is even lower
(less than 2.5%) in the three major cities, which generate about two-thirds of the state’s new jobs
each year. The tightness of the labor market has probably drawn the most qualified workers into
the ranks of the employed, leaving behind the less skilled. Therefore, not only are there fewer
job-seekers, but the average skill level of the pool is likely trending lower as well. This shortage
will contribute to the modest slowdown in nonfarm employment growth in 2000-01.
Housing start activity in North Carolina will be affected by two opposing forces. Rising
mortgage rates are expected to cool housing contruction in many areas of the state in 2000-01.
However, the recovery efforts in the eastern counties following Hurricane Floyd will provide a
boost to construction of both single-family and multi-family housing units next year. As shown
in the chart below, a construction boom has followed each of the major hurricanes striking
southern states in the last decade.
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Post-Legislative Budget Summary, 2000-01
Economic Conditions - Continued
Total personal income growth in North Carolina was harmed by Hurricane Floyd, with
the losses concentrated in farm and rental income. Currently, personal income is estimated to
grow by 5.32% in 1999-2000, down at least a full percentage point due to Floyd. As the strong
economic expansion continues in North Carolina, the economic stimulus from new home
construction in the Floyd-affected counties is projected to raise the rate of state personal income
growth to 7.2% in 2000-01.
Table 2
Economic Conditions
(Annual Rates of Change)
1998-99
Actual
1999-2000
Estimated
2000-01
Projected
National
Real Gross Domestic Product 4.1% 4.9% 3.8%
Real Personal Consumption 5.1 5.6 4.2
Industrial Production 3.2 4.8 3.2
Personal Income 6.0 6.1 6.2
Inflation (CPI) 1.7 2.8 2.8
Federal Funds Rate (%) 5.0 5.6 6.7
North Carolina
Industrial Production 3.6% 5.0% 3.2%
Nonfarm Employment* 3.0 2.5 2.3
Manufacturing Employment* (1.9) (1.8) (1.0)
Unemployment Rate (%) 3.2 3.2 3.4
Total Personal Income 5.7 5.3 7.2
Housing Starts (000) 84.4 81.9 82.2
* Benchmarked 2000 data when revised.
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Post-Legislative Summary, 2000-01
III. General Fund
A. Revenue
When Governor Hunt unveiled his revised 2000-01 Budget Recommendations in early
May 2000, the current consensus forecast called for a modest shortfall in General Fund revenue
of $39.3 million. The primary cause of the deficit in tax revenue was the devastating effect of
Hurricane Floyd on the economy of eastern North Carolina. However, weak tax payments in late
June 2000 altered the tax revenue shortfall to $77.0 million by the end of 1999-2000. This result
was totally unexpectedly. Only about 19% of June gross tax payments were deposited in the last
five business days in 2000 compared to the historical average of about 30%. Although further
analysis is required, it appears that the weakness in June gross deposits was a true aberration, as
July tax payments reported by more than 10%.
The 1999-2000 General Fund revenue problem was compounded by shortfalls in many
nontax revenue schedules. On a combined basis, Investment Income, Judicial Fees, and other
miscellaneous fees fell $64.0 million below the amount authorized by the 1999 General
Assembly. Overall then, total General Fund revenue ended 1999-2000, $141.0 below the
budgeted projection.
It should be noted that the 1999-2000 shortfall in net tax revenue was muted by an
usually large carryover of Individual Income tax refunds into July and August 2000. The
issuance of these refunds will cause a noticeable drag on the rate of growth in net tax revenue in
the first fiscal quarter of 2000-01. Beyond the first quarter, a fundamentally strong North
Carolina economy, along with an intensification of the Hurricane Floyd rebuilding effort in the
East, will boost the rate of growth in tax payments. For all of 2000-01, General Fund net tax
revenue is projected to grow by 6.6%. Looking at specific tax categories, the Individual Income
tax is expected to grow at a healthy rate in 2000-01, even after the overhang in tax refunds from
the prior year. Strong labor market conditions, along with acceleration in average wages, will
propel state total withholding payments. Rising interest rates and the post-Floyd recovery of the
state’s farm sector will provide a boost to non-withholding tax receipts. Overall, growth in the
Individual Income tax is currently forecast at 8.1% in 2000-01.
Corporate Income tax payments in 1999-2000 were aided by a one-time $69 million
revenue windfall from the sale of RJR Nabisco’s overseas tobacco operations. This prior year
windfall, along with the final reduction in the state Corporate Income tax rate to 6.90% for tax
year 2000, largely explains the projected decline in corporate income tax receipts in 2000-01.
Fundamentally, corporate earnings remain strong due to the continued expansion of the U.S.
domestic economy as well as the recovery of many foreign markets. On a technical note, the net
Corporate Income tax collections in Table 3 reflect the addition of eight new interstate auditor
positions (along with three support staff) at the Department of Revenue which are projected to
generate $12.5 million in net collections in 2000-01.
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Post-Legislative Budget Summary, 2000-01
General Fund – Continued
Although disposable income growth in North Carolina remains above the U.S. average,
the baseline rate of growth in state Sales and Use tax payments is expected to slow in 2000-01
for a variety of reasons. For one, retail sales in recent years were bolstered by the large number
of residential mortgage refinancings, which provided spendable cash in many instances. Higher
mortgage rates since 1999-2000 have slowed refinancing activity, and in turn, retail spending.
Retail sales have also been aided by the sharp rise in the stock market the so-called Wealth
Effect. Consumer spending will be affected by a more subdued outlook for the stock market,
particularly reflecting the shakeout in the dot.com industry. Despite these negative factors,
reported net Sales and Use tax collections are projected to grow by a solid 7.7% in 2000-01.
Including nontax revenue (largely investment earnings, judicial fees, and
Disproportionate Share Medicaid payments) and transfers, total General Fund Revenue is
projected to increase by 6.4%, or $845.9 million, in 2000-01.
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Post-Legislative Budget Summary, 2000-01
General Fund - Continued
Table 3
General Fund Revenue
1998-99
Actual
1999-2000
Actual
2000-01
Projected
Tax Revenue:
Inheritance $ 169,935,220 $ 163,327,319 $ 152,700,000
Licenses 27,588,260 43,828,822 45,000,000
Cigarette 44,852,542 43,663,205 42,400,000
Soft Drink 12,349,253 1,285,949 -
Franchise(1) 409,558,340 306,979,197 408,500,000
Income Tax:
Individual $ 6,606,500,278 $ 7,080,106,177 $ 7,650,700,000
Corporate(1) 848,509,669 903,241,974 781,500,000
Subtotal $ 7,455,009,947 $ 7,98,348,151 $ 8,432,200,000
Sales and Use $ 3,376,206,664 $ 3,354,897,708 $ 3,613,300,000
Beverage 158,026,529 166,372,353 174,000,000
Gift 19,334,909 25,085,473 28,100,000
Freight Car Lines 469,302 444,094 450,000
Insurance 291,230,879 273,367,118 288,700,000
Piped Natural Gas - 27,715,136 28,300,000
Miscellaneous (Incl. Intangibles) 702,059 663,982 650,000
Total Tax Revenue $ 11,965,263,904 $ 12,390,978,509 $ 13,214,300,000
Percentage Change 7.9% 3.6% 6.6%
Nontax Revenue:
Investment Income $ 249,282,071 $ 208,119,738 $ 14,000,000
Judicial Fees 120,960,787 101,535,310 112,800,000
Disproportionate Share Receipts 85,000,000 105,000,000 106,000,000
Insurance Department 40,197,960 41,810.047 42,100,000
Miscellaneous 89,615,903 114,400,000 107,800,000
Total Nontax Revenue $ 585,056,721 $ 560,331,336 $ 582,700,000
Transfers:
Highway Fund $ 13,400,000 $ 13,600,000 $ 13,800,000
Highway Trust Fund 170,000,000 170,000,000 170,000,000
Total General Fund Revenue $ 12,733,753,625 $ 13,134,909,845 $ 13,980,800,000
Percentage Change 8.8% 3.2% 6.4%
(1) A portion of the Franchise Tax was reported as Corporate Income Tax on a one-time basis in
1999-2000. This transaction will be reversed in 2000-01.
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Post-Legislative Budget Summary, 2000-01
General Fund - Continued
A. Condition of the Fund
Table 4
Condition of the General Fund
1999-2001
1999-00 2000-01 2000-01
Actual Original Authorized
Unreserved Credit Balance $296,702,026 $ - $ -
Reserved Credit Balance
Budget Stabilization Reserve 522,520,562 322,520,562 157,522,049
Repair and Renovations Reserve 150,000,000 - 2,901,932
Clean Water Management Trust Fund Reserve 31,054,152 1,054,152 1,054,152
Bailey/Emory Patton Reserve - - -
Aquariums 30,000,000 - -
Warren County Landfill 7,000,000 - -
Disproportionate Share Receipts - - -
Work First Reserve 17,361.758 - -
Intangible Tax Reserve - - 240,000,000
Railroad Dividends 918,220 - 918,220
Total Reserved Credit Balance $758,854,692 $323,574,714 $402,396,352
Revenue
Tax Revenue 12,390,978,509 13,140,500,000 13,214,300,000
Nontax Revenue 456,501,732 509,200,000 476,700,000
Highway Fund Transfer 13,600,000 13,800,000 13,800,000
Highway Trust Fund Transfer 170,000,000 170,000,000 170,000,000
Disproportionate Share Receipts 105,000,000 105,000,000 106,000,000
Total Revenue $13,136,080,241 $13,938,500,000 $13,980,800,000
Direct Authorized Transfers to Availability - - 69,475,000
Total Availability $14,191,636,959 $14,262,074,714 $14,452,671,352
Appropriations
Operating Budget 12,731,683,461 12,886,610,899 13,558,096,467
Adjustments to tie Recommended Continuation Budget - (288,984,798) (664,895,917)
Expansion Budget Recommended - 960,470,366 891,942,210
Special Season-Hurricane Floyd Relief 40,000,000 - -
Total Operating Budget Recommended $12,771,683,461 $13,558,096,407 $13,785,142,760
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Post-Legislative Budget Summary, 2000-01
General Fund – Table 4 - Continued
Condition of the General Fund
1999-2001
1999-00 2000-01 2000-01
Actual Original Authorized
Capital Improvement - Direct Appropriation $ 77,059,168 $ - $14,974,172
Appropriation by Earmarking of Availability
Bailey/Emory Patton Lawsuit 399,000,000 - -
Intangibles Tax Settlement 200,000,000 - -
Hurricane Floyd Reserve 285,965,824 - -
Capital Improvement-Repair & Renovation - - 100,000,000
Clean Water Management Trust Fund - - 30,000,000
Budget Stabilization Reserve - - 120,000,000
Appropriation from Earmarked Ending Balance (Reserves)
Capital Improvement - Repair and Renovations 90,000,000 - -
Clean Water Management Trust Fund 30,000,000 - -
Total Direct and Earmarked Appropriations $13,853,708,453 $13,558,096,407 $14,050,116,932
Direct Authorized Transfer from Reserve 54,361,758 - 240,000,000
Ending Balance 283,566,740 703,978,247 162,554,420
Ending Reserved Balance
Budget Stabilization Reserve 37,522,049 322,520,562 157,522,049
Clean Water Management Trust Fund 1,054,152 1,054,152 1,054,152
Repair and Renovations 2,901,932 - 2,901,932
Aquarium - - -
Warren County Landfill - - -
Disproportionate Share Receipts 1,170,396 - -
Work First Reserve - - -
Intangible Tax Reserve 240,000,000 - -
Railroad Dividends 918,220 - 918,220
Total Reserved Balance $ 283,566,740 $323,574,714 $ 162,396,352
Ending Unreserved Balance $ - $380,403,533 $ 158,068
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Post-Legislative Budget Summary, 2000-01
General Fund – Continued
TABLE 5
Fiscal Year 2000-01 General Fund Budget
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Post-Legislative Budget Summary, 2000-01
General Fund – Table 5 - Continued
TABLE 5
Fiscal Year 2000-01 General Fund Budget
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Table 5
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Post-Legislative Budget Summary, 2000-01
General Fund – Public Education
C. Appropriations by Department
General Fund expansion and continuation appropriations are listed by department in the
following pages. They are grouped in the categories of Education, General Government, Health
and Human Services, Justice and Public Safety, Natural and Economic Resources, and other
appropriations.
Public Education
Original 2000-01 General Fund Appropriation: $5,277,518,248
Net Changes Enacted in 2000 Regular Session: (6,480,392)
Current 2000-01 Certified Appropriation: $5,271,037,856
Expansion Budget:
2000-01
1. Increase Teacher Compensation
Consistent with The Excellent Schools Act, ratified by the 1997 Session
of the General Assembly, 6.5% funding in the amount of $222,730,457
was provided for the fourth and final installment of the revised teacher
salary schedule, continuing the effort to attract and retain highly
qualified and experienced teachers. The fourth year of the revised
teacher salary schedule increases the beginning teacher salary with a
bachelor’s degree to $25,000 and increases the differential between the
bachelor’s degree and the master’s degree from the current 6.25% to
10%.
2. Teacher Longevity: 2000-01 Salary Increases
Funds were appropriated for teacher longevity increases associated with
fiscal year 2000-01 salary increases that are part of The Excellent
Schools Act.
$ 7,817,926
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Post-Legislative Budget Summary, 2000-01
General Fund – Public Education - Continued
Expansion Budget:
2000-01
3. Teacher Longevity Increased Rates
Funds totaling $12,500,000 were appropriated to change the teacher
longevity rates to the same longevity rates as state employees. The
former rates for teachers were 1% at 10 years, 1.5% at 15 years, 2% at
20 years and 4.5% at 25 years. The new rates for teachers are 1.5% at
10 years, 2.25% at 15 years, and 3.25% at 20 years. No change was
made for teachers with 25+ years because teachers and state employees
were already funded at the same rate of 4.5% at 25 years.
$ 12,500,000
4. Improving Student Accountability
Funds were appropriated for local school systems to improve student
performance. Funds were allocated to the school systems based on the
number of students scoring at Levels I and II on end-of-grade tests.
(2000 Session Laws, Chapter 67, Sec. 8)
Nonrecurring funds of $5,000,000 were appropriated for increased
technology needs to assist students in achieving computing competency.
Appropriation – Recurring
Appropriation – Nonrecurring
8,000,000
5,000,000
NR
5. Limited English Proficiency
Students whose primary language is not English and who are of limited
proficiency in English represent a steadily increasing percentage of
North Carolina’s school population and are found at all grade levels, in
urban, suburban, and rural communities across the state. Federal
statutes require that school systems provide an equal educational
opportunity for all students, including those of limited proficiency in
English. Funds were appropriated to assist Local Education Agencies
(LEAs) and charter schools in improving services to students with
limited proficiency in English.
NR - Nonrecurring
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Post-Legislative Budget Summary, 2000-01
General Fund – Public Education – Continued
Expansion Budget:
2000-01
Limited English Proficiency – Continued
Funds were appropriated in the amount of $3,700,000 for serving
students with limited proficiency in English. The State Board of
Education shall allocate these funds to local school administrative units
and to charter schools under a formula that takes into account the
average percentage of students in the units or the charters over the past
three years who have limited English proficiency. Local school
administrative units shall use funds allocated to them to pay for
classroom teachers, teacher assistants, textbooks, classroom
materials/instructional supplies/equipment, and staff development for
students with limited English proficiency. (2000 Session Laws, Chapter
67, Sec. 8.3)
$ 3,700,000
6. Small School Supplemental Funding
Funding for small school systems was first provided by the 1991
Session of the General Assembly and, with this appropriation, totals
$26.6 million for 2000-01. The small school allocation is for county
systems with less than 3,150 students and for county systems with 3,150
to 4,000 students if the county adjusted property tax base per student is
below the average state adjusted property tax base per student, and the
student membership in all systems within the county combined is 3,150
to 4,000. Ashe and Hertford counties were added to the small county
supplemental funding beginning in 2000-01. These funds are to
supplement, not supplant existing state and local funding for public
schools. (2000 Session Laws, Chapter 67, Sec. 8.25)
5,000,000
7. Low Wealth Supplemental Funding
Additional funding was appropriated to provide supplemental funds in
low wealth counties for the enhancement of instructional programs and
student achievement. The Low Wealth school system allocation is for
counties in which the county wealth as a percentage of the state average
wealth is less than 100%. The funds are used only for instructional
positions, instructional support positions, teacher assistants, school
computer technicians, clerical positions, instructional supplies and
equipment, staff development, and textbooks. Funds are allocated to
each eligible system based on average daily membership (ADM). These
funds are to supplement, not supplant existing state and local funding
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Post-Legislative Budget Summary, 2000-01
General Fund – Public Education – Continued
Expansion Budget:
2000-01
Low Wealth Supplemental Funding – Continued
for public schools. This category was first funded in the 1991 Session
and has been increased in every session since 1991. The total budget
for Low Wealth for 2000-01, revised to include this appropriation and
the legislative compensation increase for 2000-01, is $83.4 million.
According to the funding formula for Low Wealth, a total budget of
approximately $129.5 million would be required in order to fully fund
Low Wealth at the current level of effort. (2000 Session Laws, Chapter
67, Sec. 8.15)
$ 5,000,000
8. Exceptional Children
Funds were appropriated to increase funding for exceptional children
with special needs from $2,517.74 to $2,549.73 per student. The Local
School Administrative unit shall receive $2,549.74 per child for the
lesser of (i) all children who are identified as children with special needs
or (ii) twelve and five-tenths percent (12.5%) of the 2000-01 allocated
ADM. This increase does not include any legislative salary increment
increases for personnel who serve exceptional children. (2000 Session
Laws, Chapter 67, Sec. 8.2)
5,000,000
9. Central Office Administration
Funds were appropriated to ensure that all local school districts receive
the funds calculated by the State Board of Education formula for Central
Office Administration. (2000 Session Laws, Chapter 67, Sec. 8.17)
3,355,175
10. Average Daily Membership Contingency Reserve
Nonrecurring funds were provided to the State Board of Education for
allocation to local school administrative units which have inadequate
resources due to (i) the establishment of a new charter school or (ii)
authorization from the State Board of Education to increase the
enrollment of an existing charter school by more than ten percent
(10%). (2000 Session Laws, Chapter 67, Sec. 8.7)
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Post-Legislative Budget Summary, 2000-01
General Fund – Public Education – Continued
Expansion Budget:
2000-01
Average Daily Membership Contingency Reserve - Continued
County school administrative units with 3,000 or fewer students which
experience a greater than four percent (4%) loss in projected average
daily membership due to shifts of enrollment to charter schools located
within the unit may receive additional funding. The State Board of
Education may use funds appropriated to State Aid to Local School
Administrative Units for the 2000-01 fiscal year to reduce the loss of
funds to the unit’s schools, other than charter schools, to a maximum of
four percent (4%). (2000 Session Laws, Chapter 67, Sec. 8.5)
Appropriation – Nonrecurring
$ 500,000
NR
11. Transportation Fuel Costs
Nonrecurring funds were appropriated to increase the allotments to local
school administrative units due to recent increases in fuel prices.
Appropriation – Nonrecurring
7,000,000
NR
12. School Bus Purchases
The Department of Public Instruction estimates that in fiscal year
2001-02 school bus replacement will decrease dramatically because all
buses will be diesel, allowing replacement to be made on the basis of
mileage rather than just the age of the vehicle. In anticipation of this
impact on the school bus replacement schedule, $6,000,000 of the
$55,494,095 currently budgeted in fiscal year 2000-01 was changed to a
nonrecurring requirement. The $6,000,000 in recurring funds was
represented as a reduction, and the amount appropriated replaced the
reduction with a like amount in nonrecurring funds.
Appropriation – Recurring
Appropriation – Nonrecurring
(6,000,000)
6,000,000
NR
13. School Breakfast Program
The 1999 Session of the General Assembly provided $1,100,000 for the
kindergarten school breakfast program beginning in January 2000.
Additional funds were appropriated to annualize the school breakfast
program for all kindergarten students, regardless of income. Schools
NR - Nonrecurring
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Post-Legislative Budget Summary, 2000-01
General Fund – Public Education – Continued
Expansion Budget:
2000-01
School Breakfast Program – Continued
participating in the program shall provide breakfast, without charge, to
all kindergarten students. If the funds appropriated are not adequate to
expand the program to all students in schools that elect to participate for
the 2000-01 school year, the Board of Education shall give priority to
schools with a high concentration of children who qualify for free or
reduced price lunches.
$ 1,600,000
14. School Leadership Pilot
Nonrecurring funds in the amount of $240,000 were provided for the
School Leadership Pilot project by the 1999 Session of the General
Assembly. Again in the 2000 Session of the General Assembly,
nonrecurring funds were appropriated to the North Carolina State Board
of Education for the School Leadership Pilot project. The four school
districts receiving the funds (Pasquotank, Mecklenburg, Brunswick, and
Buncombe) will participate in the nationwide program of the Center for
Leadership in School Reform.
Appropriation – Nonrecurring
240,000
NR
15. North Carolina Network Funds
The 1999 Session of the General Assembly provided $250,000 for the
North Carolina Network. Additional funds were appropriated to the
North Carolina State Board of Education in the 2000 Session of the
Legislative Session for the North Carolina Network to provide training
for school based management teams, and to improve the management
capacity of local school administrative units.
100,000
16. Teacher Cadet Program
The 1999 Session of the General Assembly appropriated $100,000 for
the Teacher Cadet Program. Additional funds were appropriated for the
North Carolina Teacher Cadet Program during the 2000 Legislative
Session.
50,000
NR - Nonrecurring
23
Post-Legislative Budget Summary, 2000-01
General Fund – Public Education – Continued
Continuation Budget:
2000-01
17. Average Annual Salary Adjustment
An adjustment of $42,363,546 in 2000-01 was necessary to revise
budgeted average annual salaries including principals and assistant
principals using actual 1999-2000 sixth pay period salaries as the base.
This adjustment is made annually after reviewing budgeted salary
projections for all certified personnel. Typically, because of turnover in
these positions, the actual salaries are lower than what is budgeted, and
a reduction is made accordingly. This adjustment does not reduce any
salary paid to certified personnel.
$ (42,363,546)
18. Additional Adjustments in Average Salary Projections
Analysis of the certified payroll data by the Department of Public
Instruction determined that more current certification data produced an
additional change in average projected salaries for fiscal year 2000-01.
(10,032,012)
19. Revise Average Daily Membership
Positions, textbooks, instructional equipment, and supplies allocated to
the public schools are budgeted on the basis of average daily
membership (ADM) of students in the classroom. Budgeted ADM was
$1,289,528 for 2000-01. The revised budgeted ADM for 2000-01 is
$1,288,556, which is a net decrease of 972. Budgeted ADM for
2000-01 is based on the higher of 1999-2000 actual ADM or 2000-01
projected ADM by local school system.
Receipts from the Highway Fund to be transferred to the Department of
Public Instruction for the Driver Education program are adjusted by
$449,802 due to a projected increase of 1,468 ADM in the ninth grade.
Requirements
Receipts
Appropriation
$ (6,437,558)
449,802
$ (6,887,360)
20. Employee Benefit Program – Public School Fund
Three employee benefit programs: worker’s compensation, short-term
disability and annual leave were adjusted based on 1999-2000
expenditure levels.
(1,265,742)
24
Post-Legislative Budget Summary, 2000-01
General Fund – Public Education – Continued
Continuation Budget:
2000-01
21. Substitute Teacher Pay
The original 2000-01 continuation budget projections for the substitute
teacher cost estimates were adjusted to reflect the revised projections for
these costs.
$ (440,000)
22. Revised Headcount of Exceptional Children
The continuation budget was adjusted to reflect the actual April 1, 2000
headcount for exceptional children.
(2,104,833)
23. North Carolina Teaching Fellows Program
The purpose of this fund is to account for the North Carolina Teaching
Fellows scholarship/loans awarded by the Public School Forum of
North Carolina. The annual appropriation for the scholarships is made to
the Department of Public Instruction (DPI). The Forum advises DPI as
to the amount of scholarship funds to be disbursed to each teacher
education program at the institutions of higher education. If recipients
do not complete the program or meet the requirements for loan
forgiveness by teaching in North Carolina public schools, they must
repay the loans. The Forum contracts with a collection agency to
process principal and interest payments. These payments are in turn
sent to DPI for redeposit into this fund as part of the fund balance. The
goal of the Forum is to award 1,600 scholarships annually in the amount
of $6,500 each.
To create nonrecurring funding availability, the General Assembly
reduced the balance in the Teaching Fellows Program Fund. This
reduction will have no impact on the number of scholarships available
in 2000-01 or the operation of the Forum.
Appropriation – Nonrecurring
(2,500,000)
NR
NR - Nonrecurring
25
Post-Legislative Budget Summary, 2000-01
General Fund – Public Education – Continued
Continuation Budget:
2000-01
24. Prospective Teacher Scholarship Loan Program
The purpose of the Prospective Teacher Scholarship Loan is to provide
approximately 800 scholarship loans of $2,500 annually to any resident
of North Carolina who is interested in preparing to teach in the public
schools of North Carolina. Loans in the amount of $1,200 are also
made for up to 150 teacher assistants. These scholarship loans and the
interest accrued on them are forgiven if the recipient teaches in the
North Carolina public schools. If the recipient does not meet the
teaching service requirements, the loan and interest are paid to the
Scholarship Loan Fund. Funds are awarded on a competitive basis.
To create nonrecurring funding availability, the General Assembly
reduced the balance in the Prospective Teacher Scholarship Loan
Program Fund. This reduction will have no impact on the number of
scholarships available in 2000-01.
Of the funds appropriated for State Aid to Local School Administrative
Units, the State Board of Education may use up to five hundred
thousand dollars ($500,000) for the 2000-01 fiscal year to assure that all
scholarships awarded under the Prospective Teacher Scholarship Loan
Program prior to June 15, 2000, are funded. (2000 Session Laws,
Chapter 67, Sec. 8.26)
Appropriation – Nonrecurring
$ (750,000)
NR
25. Extra Pay for Forfeited Vacation Days
Funds in the amount of $8.5 million were appropriated by the 1997
General Assembly and $4.25 million by the 1998 General Assembly so
that local boards of education might have the option to use these funds
to pay teachers for working on, and thereby forfeiting, a maximum of
six annual vacation days per year per teacher, in accordance with
G.S. 115C-302.1(c). This funding category was reduced based on the
1999-2000 expenditures.
(5,000,000)
Net Change for Public Education $ (6,480,392)
NR - Nonrecurring
26
Post-Legislative Budget Summary, 2000-01
General Fund – Public Education – Continued
Other Provisions
2000-01
26. Funds for the Testing and Implementation of the New Student
Information System
The State Board of Education may transfer up to $1,000,000 in funds
appropriated for the Uniform Education Reporting system for the
2000-01 fiscal year to the Department of Public Instruction to lease or
purchase equipment necessary for the testing and implementation of NC
WISE (Window of Information for Student Education), the new student
information system in the public schools. (2000 Session Laws,
Chapter 67, Sec. 8.6)
27. Litigation Reserve
Effective June 30, 2000, funds in the State Board of Education’s
Litigation Reserve that are not expended or encumbered on
June 30, 2000, shall not revert on July 1, 2000, but shall remain
available for expenditure until June 30, 2001. The State Board of
Education may expend up to $500,000 for the 2000-01 fiscal year from
unexpended funds for certified employees’ salaries to pay expenses
related to pending litigation. (2000 Session Laws, Chapter 67, Sec. 8.9)
28. High School Exit Exams
The State Board of Education may use up to $3,000,000 of the funds
appropriated to State Aid to Local School Administrative Units for the
2000-01 fiscal year. These funds must be used to continue the
development of a high school exit examination; to develop the computer
skills test; to purchase equipment for scoring tests and for ABCs
reporting; and to retest for standards and assessments and for revisions
of the Science and English language arts tests. (2000 Session Laws,
Chapter 67, Sec. 8.21)
29. State Public School Fund Carryforward
The Director of the Budget was directed to transfer from the 11th and
12th month carryforward balance in the State Aid to Local
Administrative Units $240,000,000 to a reserve in the Department of
State Treasurer effective June 30, 2000. In addition, on July 1, 2000,
$11,000,000 of the 11th and 12th month carryforward balance reverted to
the General Fund. (2000 Session Laws, Chapter 67, sec. 6(b))
27
Post-Legislative Budget Summary, 2000-01
Community Colleges
Original 2000-01 General Fund Appropriation: $ 591,015,693
Net Changes Enacted in 2000 Regular Session: 17,806,602
Current 2000-01 Certified Appropriation: $ 608,822,295
Expansion Budget:
2000-01
1. Enrollment Increase
Funds were appropriated for the estimated enrollment increase of 6,706
full-time equivalent (FTE) students above the 1999-2000 budgeted
enrollment of 144,283 FTE. The revised 2000-01 budgeted enrollment
is 150,989 FTE, a 4.6% increase over 1999-2000. The budgeted
increase for Curriculum enrollment is 5,232 FTE or 4.7%; the budgeted
increase for Continuing Education enrollment is 848 FTE or 4.8%; and
the budgeted increase for Basic Skills enrollment is 626 FTE or 4.3%.
Nine eastern North Carolina community colleges hit hardest by
Hurricane Floyd that experienced a total FTE loss of greater than 20 are
held harmless from enrollment declines for the 2000-01 fiscal year.
Enrollment funding for subsequent fiscal years shall be determined
using the continuing budget concept which is the greater of: (1) the
average of the actual enrollment of the prior three fiscal years, or (2) the
actual enrollment of the prior fiscal year pursuant to Section 10.4(b) of
1998 Session Laws, Chapter 212.
Requirements
Receipts
Appropriation
$ 26,531,333
4,250,423
$ 22,280,910
28
Post-Legislative Budget Summary, 2000-01
General Fund – Community Colleges - Continued
Expansion Budget:
2000-01
2. Summer Term Curriculum Instruction
Funds were appropriated to provide summer term curriculum instruction
as a supplement to regular curriculum enrollment funding. Summer
term curriculum funds shall be budgeted in a separate line in State Aid
fund code 1600 and allocated based on prior fiscal year full-time
equivalent (FTE) student enrollment in summer term curriculum course
offerings. These funds shall be used for direct instructional costs,
including faculty salaries and benefits, and instructional supplies and
materials and may be carried forward to fulfill a contractual obligation
for summer term curriculum instructional faculty. Summer term
curriculum funding shall not be included in the continuing budget
concept enacted in Section 10.4(b) of 1998 Session Laws, Chapter 212.
(2000 Session Laws, Chapter 67, Sec. 9.9)
$ 7,177,623
3. Occupational Continuing Education
The funding rate for occupational and continuing education programs
was adjusted from a unit value (budgeted value of an instructional
position) of $31,001 to a unit value of $33,433. Funds were
appropriated to continue the effort to more closely align funding of
continuing education programs with that of curriculum programs having
a unit value of $42,201.
3,000,000
4. Salary Adjustment Funds
Funds were appropriated for position reclassifications, range revisions,
and in-range equity adjustments within the Community College System
Office.
225,000
Continuation Budget:
5. Adjust New and Expanding Industry Training Program Budget
The New and Expanding Industry Training (NEIT) Program provides
customized training assistance in support of new, full-time production
positions created in the State of North Carolina. The NEIT program
budget was reduced by $500,000 from $6,028,541 to $5,528,541.
Additional funds for NEIT are provided in the Employment Security
Commission Training and Employment Account on a nonrecurring
basis in fiscal year 2000-01.
Appropriation - Nonrecurring
(500,000)
NR
NR - Nonrecurring
29
Post-Legislative Budget Summary, 2000-01
General Fund – Community Colleges – Continued
Continuation Budget:
2000-01
6. Adjust Educational Equipment Budget
The Educational Equipment budget was reduced by $2,020,225 from
$17,319,732 to $15,299,507. Additional funds for Educational
Equipment are provided in the Employment Security Commission
Training and Employment Account on a nonrecurring basis in fiscal
year 2000-01.
Appropriation - Recurring
Appropriation - Nonrecurring
$ (1,000,000)
(1,020,225)
NR
7. Adjust for Over-Realized Receipts
The budget for tuition and fees was adjusted to reflect anticipated
receipts ($1,000,000) and to offset FTE enrollment declines due to
Hurricane Floyd ($1,800,000) (see item 1). In addition, a one-time
adjustment was made for $2,000,000 in over-realized receipts collected
in the 1999-2000 fiscal year. (2000 Session Laws, Chapter 67, Sec. 9.4)
Requirements
Receipts
Receipts – Nonrecurring
Appropriation
Appropriation - Nonrecurring
$ -
2,800,000
2,000,000
$ (2,800,000)
$ (2,000,000)
NR
NR
8. Increase Curriculum Tuition Charge
The in-state tuition charge per semester hour was increased by $0.75
from $26.75 to $27.50. It is anticipated that for most students, this
increase will be offset by federal and state financial assistance
programs.
Requirements
Receipts
Appropriation
$ -
2,035,908
$ (2,035,908)
9. Increase Semester Hours for Which Tuition Is Charged
The maximum number of semester hours for which tuition is charged
was increased from 14 semester hours to 16 semester hours. It is
anticipated that for most students, this increase will be offset by federal
and state financial assistance programs.
Requirements
Receipts
Appropriation
$ -
2,010,798
$ (2,010,798)
NR - Nonrecurring
30
Post-Legislative Budget Summary, 2000-01
General Fund – Community Colleges – Continued
Continuation Budget:
2000-01
10. Eliminate Scholarship Reserve Fund Balance
A $4 million interest only scholarship reserve was generating
insufficient resources for financial aid and was eliminated in the
1999-2000 fiscal year. The 1999 Legislative Session replaced the
interest only scholarship reserve with a nonreverting $5 million annual
appropriation to provide need-based financial aid. The fund balance
derived from accrued interest earnings on the $4 million scholarship
reserve principal was eliminated.
Requirements
Receipts
Appropriation
$ -
410,000
$ (410,000)
NR
11. Reduce State Board Reserve
The State Board Reserve is limited by statute to funding feasibility
studies, pilot projects, start-up of new programs, and innovative ideas.
The state board reserve budget was reduced by $100,000 for one year
from $1,150,000 to $1,050,000.
Appropriation - Nonrecurring
(100,000)
NR
12. Reduce Need-Based Financial Aid Fund Balance
The 1999 Legislative Session created a nonreverting annual $5 million
appropriation for need-based financial aid. The unused need-based
financial aid funds from the 1999-2000 fiscal year were reduced.
Appropriation - Nonrecurring
(1,000,000)
NR
13. Reduce Management Information System (MIS) Fund Balance
Unused management information system (MIS) funds from the
1999-2000 fiscal year were reduced.
Appropriation - Nonrecurring
(2,000,000)
NR
Net Change for Community Colleges $ 17,806,602
Appropriation - Recurring $ 24,836,827
Appropriation - Nonrecurring (7,030,225) NR
NR - Nonrecurring
31
Post-Legislative Budget Summary, 2000-01
General Fund – Community Colleges – Continued
Other Provisions:
2000-01
14. State Board Reserve Allocations
Section 9.6 of 1999 Session Laws, Chapter 237 was rewritten to direct
the State Board of Community Colleges to use State Board Reserve
funds ($75,000) for performance budgeting surveys, research, data
collection and analysis; and to use State Board Reserve funds
($100,000) to continue the development of the virtual learning
community. (2000 Session Laws, Chapter 67, Sec. 9.1)
15. Budget Realignment to Implement Reorganization
The State Board of Community Colleges may transfer funds within the
budget of the Community College System Office to implement the
departmental reorganization plan adopted by the State Board in
September 1999. (2000 Session Laws, Chapter 67, Sec. 9.3)
16. Performance Budgeting Clarifications
The 2000 Session of the General Assembly amended G.S. 115D-31.3 to
clarify performance budgeting in the Community College System. The
State Board of Community Colleges shall evaluate each college on 12
performance standards, six of which shall be used for performance
budgeting (five required and one selected by the college). Each college
may retain and carry forward one-third of one percent (1/3 of 1%) of its
final fiscal year General Fund appropriation for each of the six measures
denoting successful performance. Colleges that perform successfully on
at least five of the six performance measures (superior performance)
will equally share distributions of any unallocated funds. Funds may
not be used for obligations beyond the fiscal year into which they were
carried forward and shall be encumbered within 12 months of the fiscal
year into which they were carried forward. (2000 Session Laws,
Chapter 67,Sec. 9.7)
17. Community College Tuition/Legal Immigrants
G.S. 115D-39 was rewritten to provide that legal immigrants who have
resided in North Carolina for a 12-month qualifying period receive
resident status for tuition purposes. (2000 Session Laws, Chapter 67,
Sec. 9.8)
32
Post-Legislative Budget Summary, 2000-01
General Fund – Community Colleges – Continued
Other Provisions:
2000-01
18. Funds for Regional and Cooperative Initiatives
Funds appropriated from the Employment Security Commission
Training and Employment Account allocated for the Nonreverting Start-
Up Fund for Regional and Cooperative Initiatives (1999 Session Laws,
Chapter 237, Sec. 9.11(a) as rewritten by 1999 Session Laws, Chapter
321, Sec. 7) shall be used for nonrecurring costs of starting new
programs, expanding existing regional and cooperative programs, or
both. Funds shall not be used for construction, renovation, or other
capital costs. (2000 Session Laws, Chapter 67, Sec. 9.11)
33
Post-Legislative Budget Summary, 2000-01
University of North Carolina
Original 2000-01 General Fund Appropriation: $ 1,656,863,227
Net Changes Enacted in 2000 Regular Session: 41,309,503
Current 2000-01 Certified Appropriation: $ 1,698,172,730
Expansion Budget:
2000-01
1. Schedule of Priorities
General Statute 116-11(9) requires the Board of Governors of The
University of North Carolina to “develop, prepare, and present to the
Governor, Advisory Budget Commission, and the General Assembly a
single, unified recommended budget for all of public senior education.”
Funds requested for expansion, new programs and activities, increases
in enrollment, remedying deficiencies, etc. are to be itemized in priority
order; and any funds appropriated for the priority schedule are to be in a
“lump sum”. In response to the Board of Governor’s “Schedule of
Priorities,” the following budget requests were funded:
Line 1a ��� Regular Term Enrollment
Regular term enrollment projections from the Board of Governors
indicated that full-time equivalent (FTE) enrollment for 2000-01 would
increase by 2,460 FTE or 1.8% from 135,499 in 1999-2000 to 137,959
in 2000-01. This represents an increase in student credit hours (SCHs)
from 3,636,337 in 1999-2000 to 3,700,454 in 2000-01. The
recommended increase is to support this enrollment growth.
Requirements
Receipts
Appropriation
Number of Positions
$ 29,605,693
8,523,900
$ 21,081,793
201.0
34
Post-Legislative Budget Summary, 2000-01
General Fund – University of North Carolina - Continued
Expansion Budget:
2000-01
Schedule of Priorities - Continued
Line 1b – Distance Education Enrollment Increase
The Board of Governors of The University of North Carolina received
funding for growth in distance education enrollment for fiscal year
2000-01 of 24,047 student credit hours (SCHs), bringing the total
number of funded SCHs to 73,063. This increase funded 19 new
baccalaureate degree programs and 34 new masters degree programs.
The funding is to provide expanded opportunities for higher education
to more North Carolina residents, including nontraditional students, and
to increase the number of North Carolina residents who earn
postsecondary degrees. (2000 Session Laws, Chapter 67, Sec. 10.4)
Number of Positions
$ 10,000,000
80.0
Line 1d – Transition of East Carolina University to Doctoral II
Status
Funds were provided to continue the change in classification of East
Carolina University to a Doctoral II university. These funds may be
used for additional faculty, faculty salary increases, increases in the
number of graduate student tuition remissions, and other enhancements
to meet the needs of a Doctoral II institution. In 1998, East Carolina
University exceeded the requirements to be classified as a Doctoral II
university and their movement into the doctoral category was
recognized by the Board of Governors of The University of North
Carolina. The 1998 Session of the General Assembly appropriated
$1,500,000 in recurring funds for phase one of East Carolina
University’s change to a Doctoral II university. The 1999 Session of the
General Assembly appropriated $1,500,000 in recurring funds for the
second phase of the classification change.
1,500,000
35
Post-Legislative Budget Summary, 2000-01
General Fund – University of North Carolina – Continued
Expansion Budget:
2000-01
Schedule of Priorities - Continued
Line 1e – Need-Based Financial Aid
One of the goals of The University of North Carolina is to increase the
college-going rate of North Carolina residents. Part of the strategy to
meet this goal is to provide additional need-based financial aid.
Funding was provided for the new need-based student financial aid
program for in-state students attending constituent institutions of The
University of North Carolina. The program shall provide grants to
needy North Carolina students who are seeking undergraduate degrees
or masters degrees. Eligibility of a student for a program grant shall be
based on the UNC Board of Governor’s recommendations regarding the
creation of the need-based financial aid program, adopted in November
1999. As adopted, eligibility for the program includes consideration of
a formula that offsets Pell grants, federal tax credits and student self-help
before determining eligibility to receive one of the new grants. The
new program is to be administered by the North Carolina State
Education Assistance Authority, which shall coordinate offers of
institutional aid and program grants made to a student to ensure that the
student does not receive more in grants and scholarships than the actual
cost of attendance. The goals of the program shall be to make The
University of North Carolina more affordable for low-income students
and to reduce student indebtedness by setting a limit on the funds that
needy students will be asked to borrow each year. This program will
provide financial assistance to constituent institutions that enroll
disproportionate numbers of low-income students, particularly at the
seven institutions targeted for major enrollment growth. (2000 Session
Laws, Chapter 67, Sec. 10.1)
$ 5,000,000
Line 4 – Collaborative University/School Programs
Funds were appropriated to support programs that enhance the
preparation of teachers and administrators and put the resources of The
University of North Carolina into service of the public schools.
Funding was provided for the Model Teacher Consortium, Institute for
International Understanding, Achievement Gap, Teacher Academy, NC
Center for the Advancement of Teaching, and Education Cabinet.
36
Post-Legislative Budget Summary, 2000-01
General Fund – University of North Carolina – Continued
Expansion Budget:
2000-01
Schedule of Priorities – Continued
Model Teacher Consortium
The Model Teacher Consortium serves persons interested in
becoming certified teachers, upgrading or refining skills, or
expanding areas of certification for employment in public schools.
The 1998 Session of the General Assembly appropriated
$1,500,000 in nonrecurring funds to expand the program statewide.
The 1999 Session of the General Assembly appropriated $785,000
in recurring funds to continue the program. The 2000 Session of
the General Assembly appropriated $800,000 in recurring funds and
$500,000 in nonrecurring funds, totaling $1,300,000 in additional
funds to restore the program to the 21 Local Education Agencies
(LEAs) that were part of the program in 1998-99 and to add the
following eight counties to the program: Bladen, Caswell, Camden,
Wayne, Alamance, Beaufort, Washington, and Onslow Counties.
(2000 Session Laws, Chapter 67, Sec. 10.7)
Appropriation – Recurring
Appropriation – Nonrecurring
$ 800,000
500,000
NR
Institute for International Understanding
Recurring funds were provided to the Institute for International
Understanding for the International School Partnerships through
Technology Program. The International School Partnerships
through Technology Program matches North Carolina high school
classrooms with schools abroad to conduct joint projects using
Internet technology and promoting cross-cultural learning. The
program launched in the spring of 1997 with two pilot partnerships
and expanded in 1997-98 through grants from several foundations.
68,573
Achievement Gap Funds
Nonrecurring funds were provided to support the Historically
Minority College and University Initiatives to Close the
Achievement Gap.
Appropriation – Nonrecurring
500,000
NR
Teacher Academy Funds
Recurring funds were provided for the Teacher Academy. 250,000
NR - Nonrecurring
37
Post-Legislative Budget Summary, 2000-01
General Fund – University of North Carolina – Continued
Expansion Budget:
2000-01
Schedule of Priorities – Continued
North Carolina Center for the Advancement of Teaching
Recurring funds were provided for the NC Center for the
Advancement of Teaching.
$ 250,000
Education Cabinet Funds
Nonrecurring funds were provided to fund the professional staff and
support for the Education Cabinet.
Appropriation – Nonrecurring
500,000
NR
Line 5b – Public Service and University Outreach
Recurring appropriations were provided to support the following
university public service activities: Institute for Outdoor Drama, Sea
Grant Program for Blue Crab Research, UNC Exchange Program
through the Institute for International Understanding, and the Program
on Southern Politics, Media and Public Life at UNC-Chapel Hill.
Nonrecurring appropriations were provided for the operation of the
Chinqua-Penn Plantation through North Carolina State University and
the Piedmont Triad Center for Applied Manufacturing (PT CAM)
operated by North Carolina A&T University.
Institute for Outdoor Drama
Recurring funds were provided for the Institute for Outdoor Drama. 60,000
Sea Grant Program for Blue Crab Research
Recurring funds were provided to the Sea Grant Program for
Blue Crab Research. Sea Grant is an inter-institutional program
organized to deliver critical information and services, such as those
related to marine fisheries and water quality, to coastal and marine
businesses and citizens. The program is housed administratively at
North Carolina State University and focuses the resources of the
State’s major universities on coastal economic development, coastal
ecosystem health and safety, marine research, education, and
training.
500,000
NR - Nonrecurring
38
Post-Legislative Budget Summary, 2000-01
General Fund – University of North Carolina – Continued
Expansion Budget:
2000-01
Schedule of Priorities – Continued
UNC Exchange Program
Recurring funds were provided for the Institute for International
Understanding for the UNC Exchange Program at UNC-Greensboro.
The UNC Exchange Program was established by the
Board of Governors in 1997 to implement agreements with systems
of higher education overseas, primarily for the purpose of student
exchanges where students can pay regular UNC tuition and fees and
receive course credit for attending classes at a foreign institution for
up to two semesters.
$ 150,000
Program on Southern Politics, Media and Public Life
Recurring funds were provided to support the Program on Southern
Politics, Media and Public Life at UNC-Chapel Hill.
225,000
Piedmont Triad Center for Applied Manufacturing
Nonrecurring funds were provided for one-time operating support
to the Piedmont Triad Center for Applied Manufacturing
(PT CAM) operated by NC A&T State University.
Appropriation – Nonrecurring
250,000
NR
Chinqua-Penn Plantation
Nonrecurring funds were provided for the Board of Governors to
allocate to NC State University for the operation of the Chinqua-
Penn Plantation. The Chinqua-Penn Plantation is a historic
27 room house museum, filled with art and furnishings from around
the world, sitting on 22 acres of historic gardens and landscapes.
The plantation provides educational opportunities for the people of
North Carolina.
Appropriation – Nonrecurring
100,000
NR
NR - Nonrecurring
39
Post-Legislative Budget Summary, 2000-01
General Fund – University of North Carolina – Continued
Expansion Budget:
2000-01
2. Agricultural Programs
Funds were provided for two initiatives in the area of Agricultural
Research and Cooperative Extension:
NC State University Poultry Research Position Funds
Recurring funds were provided to NC State University to add three
additional poultry research positions.
Number of Positions
$ 150,000
3.0
Matching Funds for NC A&T State
Funds were appropriated for NC A&T State University to match
federal funding for agriculture research and cooperative extension
programs.
1,222,208
3. Aid to Students Attending Private Colleges
Aid to Students Attending Private Colleges is composed of two
programs: the Legislative Tuition Grant (LTG) and the State
Contractual Scholarship Fund (SCSF). The LTG provides a payment to
private institutions for each North Carolina resident student, which is
credited directly to the student’s account. The SCSF provides funds to
each private institution based on the number of full-time North Carolina
undergraduate resident students. The SCSF funds are then used for
scholarships for needy North Carolina students attending private
colleges. The amount for the LTG and the SCSF increased by $50 per
year to $1,800 and $1,100, respectively. (2000 Session Laws, Chapter
67, Sec. 10.3)
3,257,457
Continuation Budget:
4. Reserves for New Facilities
As a result of adjustments to completion schedules in constructing
or renovating seven facilities at six of the constituent institutions
throughout the university system and one facility at UNC General
40
Post-Legislative Budget Summary, 2000-01
General Fund – University of North Carolina – Continued
Continuation Budget:
2000-01
Reserves for New Facilities - Continued
Administration, funds which had been appropriated for facilities
operations in 2000-01 have been changed in the budget. The affected
buildings and corresponding adjustments include:
Labor Force Development Center –WCU
Anderson HS Center Renovation –WSSU
NC Center for School Leadership –UNC-GA
$ (159,178)
( 69,448)
(473,190)
Beard Hall Addition –UNC-CH HA
Carolina Living/Learning Center –UNC-CH HA
General Classroom Building –UNC-W
Education Building –NCCU
4-H Environmental Education Center –NCSU
Appropriation – Nonrecurring
(354,502)
(30,965)
(140,039)
10,646
6,486
$ (1,210,190)
NR
5. Transfer Center for Prevention of School Violence
The Center for Prevention of School Violence was transferred from
North Carolina State University to the Department of Juvenile Justice
and Delinquency Prevention. The Center is the primary point of contact
for information, programs, and research about the prevention of school
violence. The Center is involved in the establishment and support of
School Resource Officers, Students Against Violence Everywhere
(SAVE) chapters, and conflict management and peer mediation
programs.
Number of Positions
(500,000)
(7.0)
6. Tuition Receipts
The Board of Governors of The University of North Carolina
recommended a 2.1% tuition increase for resident undergraduate
students at all of the 16 University of North Carolina campuses, with an
additional differential added for resident graduate students. Nonresident
undergraduate and graduate student rates were increased by the same
dollar amount as the respective resident students. Undergraduate tuition
increased in a range of $16 to $32, and from $34 to $88 for graduate
tuition.
Requirements
Receipts
Appropriation
$ -
3,345,338
$ (3,345,338)
Net changes for the University of North Carolina $ 41,309,503
NR – Nonrecurring
41
Post-Legislative Budget Summary, 2000-01
General Fund – University of North Carolina - Continued
Other Provisions:
2000-01
7. Realign Center for School Leadership Development Programs
Effective October 1, 2000, the Principals Executive Program and the
University of North Carolina Mathematics and Science Education
Network were transferred from the University of North Carolina at
Chapel Hill to the Board of Governors of The University of North
Carolina. Also included in this transfer were all of their statutory
authority, powers, and duties; their functions, records, personnel, and
property; and their unexpended balances of appropriations, allocations
or other funds - including the functions of budgeting and purchasing.
The Board of Governors shall coordinate both programs within the
University of North Carolina Center for School Leadership
Development. (2000 Session Laws, Chapter 67, Sec. 10)
8. UNC-Charlotte – Land Sales Proceeds
The proceeds from the sale of the existing chancellor’s residence and
any other non-appropriated funds available at UNC-Charlotte may be
used to construct a new chancellor’s residence. Proceeds from the sale
not used for that purpose shall not revert. (2000 Session Laws, Chapter
67, Sec. 10.1)
9. Transfer Center for Ergonomics to NC State University
In preparation of the 2001-03 continuation budget, the Office of State
Budget, Planning and Management shall transfer five hundred thousand
dollars ($500,000) from the Department of Labor to the Board of
Governors of The University of North Carolina for the Center for
Ergonomics. These funds shall be allocated to NC State University.
(2000 Session Laws, Chapter 67, Sec. 10.10)
42
Post-Legislative Budget Summary, 2000-01
General Fund – Continued
Department of Administration
Original 2000-01 General Fund Appropriation: $ 60,089,326
Net Changes Enacted in 2000 Regular Session: 627,428
Current 2000-01 Certified Appropriation: $ 60,716,754
Expansion Budget:
2000-01
1. Sexual Assault Funds
Appropriations were provided for the continuation of sexual assault
programs and the prevention of sexual assault within the state.
Appropriation – Nonrecurring
$ 225,000
NR
2. Domestic Violence Prevention Funds
Funds were provided to the Department of Administration for the North
Carolina Council for Women. The Council for Women shall provide
grants from these funds to existing domestic violence programs,
including the N.C. Coalition Against Domestic Violence, Inc., and for
the development of new domestic violence programs. Neither the
Department of Administration nor the Council for Women shall use any
of these funds for operating expenses.
Appropriation - Nonrecurring
1,000,000
NR
3. National World War II Memorial Funds
Funds were appropriated to the Division of Veterans Affairs for the
State’s voluntary contribution to the American Battle’s Monuments
Commission for the construction of the National World War II
Memorial in Washington, D.C.
Appropriation - Nonrecurring
392,000
NR
NR - Nonrecurring
43
Post-Legislative Budget Summary, 2000-01
General Fund – General Government – Administration - Continued
Expansion Budget:
2000-01
4. Lumbee Self-Determination Funds
Partial funding was appropriated for the activities of the Lumbee Tribe
Self-Determination Commission established to resolve the issue of
determining the legitimate government of the Lumbee people as a result
of the Lumbee Tribe vs. Lumbee Regional Development Association
lawsuit.
Appropriation - Nonrecurring
$ 100,000
NR
Continuation Budget:
5. Eliminate State Health Plan Purchasing Alliance
The General Assembly eliminated the appropriation for the operating
expenses of the State Health Plan Purchasing Alliance Board. The State
Health Plan Purchasing Alliance Act (Article 66 of Chapter 143 of the
General Statutes) will sunset on December 31, 2000. The Board is to
finalize its business on or before December 31, 2000. The remaining
appropriation for the 2000-01 fiscal year shall be used for salaries and
benefits, allowable separation allowances, and necessary expenses
required to phase out the operations of the Board.
Number of Positions
(250,000)
(4.0)
6. Office of State Personnel Positions Adjusted
Appropriations for salary and related benefits were eliminated for a
vacant Office Assistant III position (#400-1002-0104-510) and reduced
for the Deputy Director position (#400-0301-0004-302). In addition, an
Administrative Secretary II position (#4000-0700-0004-763) was
transferred to receipt support.
Number of Positions
(64,679)
(1.0)
NR – Nonrecurring
44
Post-Legislative Budget Summary, 2000-01
General Fund – General Government – Administration – Continued
Continuation Budget:
2000-01
7. Operating Budget Reductions
Appropriations for operating budgets were reduced for the following:
State Construction Office
532110 – Legal Services ($ 10,000)
532199 – Misc. Contractual Services ($ 10,000)
Facilities Management Division
532310 – Building Repairs ($221,846)
Division of Purchase and Contract
532850 – Printing, Binding, and Duplicating ($ 18,000)
Ethics Board
535900 – Other Expenses ($ 10,000)
$ (269,846)
8. Reduce Surviving Spouse Pension Fund
The General Assembly reduced the appropriation in the Surviving
Spouse Pension fund. This fund provides $1,000 per month to the
surviving spouse of former Governors of the State. Funding is currently
needed to provide a pension for one surviving spouse.
(12,000)
9. Eliminate Low-Level Radioactive Waste Management Authority
The appropriation for the operating expenses of the Authority was
eliminated by the General Assembly. In accordance with Senate
Bill 247, North Carolina withdrew from membership in the Southeast
Interstate Low-Level Radioactive Waste Management Compact. The
Authority is to close and restore the proposed Wake County low-level
radioactive waste site and finalize all other responsibilities and business
of the Authority on or before June 30, 2000.
Number of Positions
(493,047)
(8.0)
Net Change for the Department of Administration
Appropriation – Recurring
Appropriation - Nonrecurring
Number of Positions
$ (1,089,572)
1,717,000
(13.0)
NR
NR – Nonrecurring
45
Post-Legislative Budget Summary, 2000-01
General Fund – General Government – Continued
Office of Administrative Hearings
Original 2000-01 General Fund Appropriation: $ 2,786,455
Net Changes Enacted in 2000 Regular Session: (64,368)
Current 2000-01 Certified Appropriation: $ 2,722,087
Continuation Budget:
2000-01
1. Reduce Reserve Account
Elimination of funds that were inadvertently left in the fiscal year
2000-01 continuation budget.
$ (45,708)
2. Elimination of Vacant Position
Salary and fringe benefits of a vacant position were reduced.
Number of Positions
(27,470)
(1.0)
Expansion Budget:
3. Salary Adjustment and Position Reclassification
This provides funds to set the salary of the Senior Administrative Law
Judge at 95% of the salary of the Chief Administrative Law Judge, and
upgrade position of the Director of the Civil Rights Division from salary
grade 77 to salary grade 78. (HB 1840, Sec. 23B)
8,810
Net Change of the Office of Administrative Hearings
Number of Positions
$ (64,368)
(1.0)
46
Post-Legislative Budget Summary, 2000-01
General Fund – General Government – Continued
Department of Office of State Auditor
Original 2000-01 General Fund Appropriation: $ 11,608,041
Net Changes Enacted in 2000 Regular Session: 28,054
Current 2000-01 Certified Appropriation: $ 11,636,095
Expansion Budget:
2000-01
1. One Time Appropriation for Performance Audit
The General Assembly appropriated nonrecurring funding for the Office
of State Auditor to continue and complete a performance audit on the
Department of Revenue authorized in Session Law 1999-415 (House
Bill 1476).
Appropriation – Nonrecurring
$ 144,144
NR
Continuation Budget:
2. Budgeting Additional Receipts to Match Actual Collections
Required General Fund appropriations were reduced for the Field Audit
Division by having the Department to budget for over-realized receipts.
These receipts are generated from audit work related to the single audit
and Comprehensive Annual Financial Report (CAFR). An increase in
the budget for two receipt line items will more accurately reflect the
actual receipts collected and will result in a reduction of required
General Fund appropriations.
(116,090)
Net Change for the Office of State Auditor
Total Appropriation – Nonrecurring
$ 28,054
144,144
NR
NR - Nonrecurring
47
Post-Legislative Budget Summary, 2000-01
General Fund – General Government – Continued
Office of State Controller
Original 2000-01 General Fund Appropriation: $ 11,488,315
Net Changes Enacted in 2000 Regular Session: (115,000)
Current 2000-01 Certified Appropriation: $ 11,373,315
Expansion Budget:
2000-01
1. Reduction of Data Processing
Appropriations for data processing expenses were reduced on a one time
basis.
Appropriation – Nonrecurring
$ (115,000)
NR
Net Changes to the Office of State Controller
Appropriation – Nonrecurring
$ (115,000)
NR
Department of Cultural Resources
Original 2000-01 General Fund Appropriation: $ 60,008,621
Net Changes Enacted in 2000 Regular Session: 3,107,142
Current 2000-01 Certified Appropriation: $ 63,115,763
Expansion Budget:
1. Queen Anne’s Revenge
Appropriations were provided only for the continued recovery and
preservation of artifacts from the extremely fragile remains of the
shipwreck, “Queen Anne’s Revenge”.
Appropriation – Nonrecurring
$ 249,818
NR
2. Leased Space for Records Storage
Funds were appropriated to continue the lease for storage of agency
records.
148,000
NR - Nonrecurring
48
Post-Legislative Budget Summary, 2000-01
General Fund – General Government – Cultural Resources - Continued
Expansion Budget:
2000-01
3. N.C. Maritime Museum at Southport
The General Assembly appropriated funds for personnel and operating
costs of the branch museum, which has the following budget:
Total Requirements $209,898
Receipts $10,000
Appropriation $199,898
Number of Positions
$ 199,898
3.0
4. Operating Support
State funds were appropriated for administrative costs to allow federal
funds to be used for additional grant funding.
260,000
5. Basic Grants Program
Appropriations were provided for a one-time increase in the
continuation budget for grants to local arts organizations in the
following categories:
Primary Arts Programs $600,000
Rural Arts Programs $400,000
Cultural Tourism $200,000
Appropriation - Nonrecurring
1,200,000
NR
6. Grassroots Arts Program
Funds were appropriated for a one-time increase in the continuation
budget for grants awarded to local arts councils.
Appropriation - Nonrecurring
800,000
NR
7. Services to the Blind and Physically Handicapped
Additional funds were appropriated to continue the operation of the
automated library system.
89,604
NR - Nonrecurring
49
Post-Legislative Budget Summary, 2000-01
General Fund – General Government - Cultural Resources – Continued
Expansion Budget:
2000-01
8. Aid to Counties
Additional appropriations were provided to support grants to public
libraries based upon the formula for State-Aid to Libraries.
Appropriation – Nonrecurring
$ 500,000
NR
Continuation Budget:
9. Museum of History Reserve
Funding provided to outfit the Museum of the Albemarle was reduced,
as construction will not be completed in fiscal year 2000-01.
Appropriation - Nonrecurring
(340,178)
NR
Net Change for the Department of Cultural Resources
Appropriation - Recurring
Appropriation – Nonrecurring
Number of Positions
$ 697,502
2,409,640
3.0
NR
NR – Nonrecurring
50
Post-Legislative Budget Summary, 2000-01
General Fund – Continued
State Board of Elections
Original 2000-01 General Fund Appropriation: $ 3,199,660
Net Changes Enacted in 2000 Regular Session: 250,000
Current 2000-01 Certified Appropriation: $ 3,449,660
Expansion Budget:
2000-01
1. Multiple One-Stop Absentee Voting Sites
The General Assembly appropriated funds to the State Board of
Elections for the purpose of funding and administering a one-time
grant-in-aid program to counties to operate multiple One-Stop absentee
voting sites.
Appropriation – Nonrecurring
$ 250,000
NR
Net Change for the State Board of Elections
Appropriation – Nonrecurring
$ 250,000
NR
General Assembly
Original 2000-01 General Fund Appropriation: $ 39,518,408
Net Changes Enacted in 2000 Regular Session: (272,500)
Current 2000-01 Certified Appropriation: $ 39,245,908
Continuation Budget:
1. Reserves and Transfers
On a one-time basis, the General Assembly reduced the budget in the
contingency reserve fund.
Appropriation – Nonrecurring
(522,500)
NR
NR - Nonrecurring
51
Post-Legislative Budget Summary, 2000-01
General Fund – General Government – General Assembly - Continued
Expansion Budget:
2000-01
2. Prescription Drug Study
Nonrecurring appropriations were provided to study prescription drug
cards for the elderly. (HB 1840, Sec. 20.2)
Appropriation - Nonrecurring
$ 250,000
NR
Net Change for the General Assembly
Appropriation – Nonrecurring
$ (272,500)
NR
State Budget, Planning and Management
Original 2000-01 General Fund Appropriation: $ 7,327,782
Net Changes Enacted in 2000 Regular Session: 620,000
Current 2000-01 Certified Appropriation: $ 7,947,782
Expansion Budget:
1. N.C Humanities Council
Funds were appropriated to the North Carolina Humanities Council, a
nonprofit corporation, for the programs of the council.
Appropriation – Nonrecurring
100,000
NR
2. NACO Annual National Convention
Appropriations were provided for the 2000 Annual Conference of the
National Association of Counties. The conference will be held in
July 2000 in Charlotte, N.C.
Appropriation – Nonrecurring
200,000
NR
3. National and Regional Boards
An appropriation of $20,000 was provided for the Southern Regional
Educational Board annual meeting to be held in Asheville, N.C. In
addition, $100,000 was appropriated for the National Legislative Black
Caucus meeting to be held in Charlotte, N.C.
Appropriation - Nonrecurring
120,000
NR
NR - Nonrecurring
52
Post-Legislative Budget Summary, 2000-01
General Fund – General Government – State Budget, Planning
and Management- Continued
Expansion Budget:
2000-01
4. Reserve for Rules Review Commission Lawsuits
The General Assembly approved appropriations to establish a reserve to
fund lawsuits brought against the Rules Review Commission. When a
State agency files a petition for judicial review of a final decision of the
Rules Review Commission under Article 4 of Chapter 150B of the
General Statutes and the Rules Review Commission prevails in that
action, that State agency shall deposit to this reserve a sum equal to the
Commission’s actual attorney’s fees.
Appropriation – Nonrecurring
$ 200,000
NR
Net Change for the Office of State Budget and Management
Appropriation – Nonrecurring
$ 620,000
NR
Department of Insurance
Original 2000-01 General Fund Appropriation: $ 26,099,037
Net Changes Enacted in 2000 Regular Session: 428,597
Current 2000-01 Certified Appropriation: $ 26,527,634
Expansion Budget:
1. Computer Personnel
Appropriations were provided to establish two Computer Consultant IV
positions and one Applications Analyst Programmer II positions to
automate various core insurance functions so that the Department may
offer public access to its databases via the Internet. The General Fund
will be reimbursed from the Regulatory Fund for the total cost.
Appropriation – Recurring
Appropriation – Nonrecurring
Number of Positions
182,097
16,500
3.0
NR
NR - Nonrecurring
53
Post-Legislative Budget Summary, 2000-01
General Fund – General Government – Insurance - Continued
Expansion Budget:
2000-01
2. Information Technology Funds
Funds were appropriated for contractual services to automate various
core insurance functions so that the Department may offer public access
to its date bases via the Internet. The automation of the core functions
will provide the public the ability to submit consumer complaints
electronically and track those complaints throughout the Department;
access the Department’s rules and policy forms of the divisions of Life
and Health and Property and Casualty; and access insurance company
financial information in order to help consumers make informed
choices. The automation will also provide insurance companies a
means by which to submit insurance rates electronically. The General
Fund will be reimbursed from the Insurance Regulatory Fund for the
total cost.
Appropriation – Nonrecurring
$ 300,000
NR
3. Public Protection Classifications
Funding was appropriated to implement Session Law 2000-176 (House
Bill 1696). The funding is for two inspector positions in the Safety
Services Division and the necessary operating cost to establish and
modify the insurance public protection classifications of fire districts as
provided in G.S. 58-36-10(3) and G.S. 58-40-25(4) and as rewritten by
the Regular 2000 Session of the 1999 General Assembly. The General
Fund will be reimbursed from the Insurance Regulatory Fund for the
total cost.
Appropriation – Recurring
Appropriation – Nonrecurring
Number of Positions
$ 136,000
14,000
2.0
NR
NR - Nonrecurring
54
Post-Legislative Budget Summary, 2000-01
General Fund – General Government – Insurance - Continued
Continuation Budget:
2000-01
4. Building Code Books
The General Assembly reduced the operating budget for producing the
Building Code to reflect actual needs in line item 532850. The
Department overestimated the demand for the books.
Appropriation – Nonrecurring
$ (220,000)
NR
Net Change for the Department of Insurance
Appropriation – Recurring
Appropriation – Nonrecurring
Number of Positions
$ 318,097
110,500
5.0
NR
Department of Revenue
Original 2000-01 General Fund Appropriation: $ 75,755,633
Net Changes Enacted in 2000 Regular Session: (497,071)
Current 2000-01 Certified Appropriation: $ 75,258,562
Expansion Budget:
1. Training Funds for Commission Members
Funding was provided to cover the travel of commission members when
attending training seminars.
Requirements $ 3,800
Receipts $ 3,800
-
NR - Nonrecurring
55
Post-Legislative Budget Summary, 2000-01
General Fund – General Government – Revenue - Continued
Expansion Budget:
2000-01
2. Additional Interstate Audit Staff
The General Assembly provided additional appropriations to support
eleven new Interstate Audit positions and associated operating costs.
Recurring Costs:
Eight Revenue Field Auditor II positions $497,807
Three Processing Assistant IV positions $ 92,351
Transportation – Ground – In State $144,000
Non-recurring Costs:
Telephone Services (account 532811) $ 3,850
General Office Supplies (account 533110) $ 13,200
Office Furniture (account 534511) $ 22,000 NR
Office Equipment (account 534521) $ 1,100 NR
Computer Equipment (account 534522) $ 30,000 NR
Appropriation – Recurring
Appropriation – Nonrecurring
Number of Positions
$ 751,208
53,100
11.0
NR
Continuation Budget:
3. Computer/Data Processing Services
The Department anticipates a rate reduction in transactions processing
by Information Technology Services (ITS). No increase is expected in
utilization.
(200,000)
NR – Nonrecurring
56
Post-Legislative Budget Summary, 2000-01
General Fund – General Government - Revenue - Continued
Continuation Budget:
2000-01
4. Elimination of Vacant Positions
The General Assembly eliminated the salaries and related benefits of the
following vacant positions:
Planning, Development and Technology Division
Computing Consultant IV
(# 4773-0000-0030-161) ($72,160)
Application Analyst Programmer I
(#4773-0000-0030-535) ($62,585)
Application Analyst Programmer II
(#4773-0000-0030-551) ($70,467)
Application Analyst Program I
(#4773-0000-0030-565) ($60,972)
System Program III
(#4773-0000-0030-405) ($77,637)
Tax Research Division:
Economist III
(#4774-0000-0040-250). ($59,719)
Corporate, Excise, and Insurance Division
Tax Assistant Administrator II,
(#4788-0000-0050-100). ($84,633)
Office Examinations Division
Tax Auditor I
(#4781-0000-0060-382) ($50,697)
Field Operations Division
Revenue Field Auditor II ($58,760)
#4784-0000-0072-032
Revenue Field Audit Supervisor ($57,281)
#4784-0000-0074-120
Revenue Auditor I ($51,757)
(#4784-0000-0076-237)
Longevity ($ 8,445)
Number of Positions
$ (715,113)
(11.0)
57
Post-Legislative Budget Summary, 2000-01
General Fund - General Government – Revenue - Continued
Continuation Budget:
2000-01
5. Reduction of Operating Funds
Funds in system contractual services (System Implementation/
Integration Services - 532140) were reduced on a one-time basis.
Appropriation – Nonrecurring
$ (236,266)
NR
6. Transportation
Appropriations were reduced for in-state travel funds. (150,000)
Net Change for the Department of Revenue
Appropriation – Recurring
Appropriation – Nonrecurring
$ (313,905)
(183,166)
NR
Rules Review Commission
Original 2000-01 General Fund Appropriation: $ 309,326
Net Changes Enacted in 2000 Regular Session: 48,000
Current 2000-01 Certified Appropriation: $ 357,326
Expansion Budget:
1. Legal Expenses
The General Assembly appropriated one-time funds to finalize legal
expenses resulting from the lawsuit brought by the NC Board of
Pharmacy.
Appropriation – Nonrecurring
$ 48,000
NR
Net Changes to the Rules Review Commission
Appropriation – Nonrecurring
$ 48,000
NR
NR – Nonrecurring
58
Post-Legislative Budget Summary, 2000-01
General Fund - Continued
Department of Secretary of State
Original 2000-01 General Fund Appropriation: $ 6,455,933
Net Changes Enacted in 2000 Regular Session: 2,854,671
Current 2000-01 Certified Appropriation: $ 9,310,604
Expansion Budget:
2000-01
1. Additional Personnel in Corporations Division
The General Assembly appropriated funds to provide funding for four
Information Processing Technician positions. Due to the growing
economy and recent statutory changes, the additional staff is needed to
meet the additional filing demands placed on the Division.
Appropriation – Recurring
Appropriation – Nonrecurring
Number of Positions
122,513
37,049
4.0
NR
2. Additional Personnel for Uniform Commercial Code Section
The General Assembly appropriated funds to provide salary and fringes
for forty-one additional personnel needed to implement SB 1305,
Revised Article 9 of the UCC. The following positions will be
established:
1 Director
1 Executive Assistant
1 Staff Development Specialist
1 Applications Analyst Programmer II
2 Administrative Assistants
2 Administrative Officers
8 Information Processing Technicians
24 Processing Assistant V’s
1 Mail Clerk
NR - Nonrecurring
59
Post-Legislative Budget Summary, 2000-01
General Fund – General Government – Secretary of State - Continued
Expansion Budget
2000-01
Additional Personnel for Uniform Commercial Code Section -
Continued
The first four positions listed above are effective October 1, 2000. The
Secretary of State’s office will make nineteen positions effective as of
January 1, 2001 (one Administrative Assistant position, one
Administrative Officer position, four Information Processing Technician
positions, twelve Processing Assistant V positions and the Mail Clerk
position). The remaining positions will be effective April 1, 2001.
Number of Positions
$ 600,239
41.0
3. Additional Operating Cost Due to Revised UCC Article 9
Additional funds were appropriated to provide funding for the start-up
and operating cost necessary to implement Revise Article 9 of the UCC.
Nonrecurring funds are appropriated for office furniture, computer and
office equipment, and contractual services. Recurring funds are
appropriated for on-going operational cost.
Appropriation – Recurring
Appropriation – Nonrecurring
268,425
1,891,004
NR
Continuation Budget:
4. Operating Budget Reductions
Appropriations for computer and data processing services (account
532821) were reduced out of the General Administration Division
($14,000), the Corporations Division ($35,559), the Uniform
Commercial Code Division ($5,000), and the Securities Division
($5,000). In addition, the General Administration Division also had a
reduction in General Office Supplies (account 533110) in the amount of
($5,000).
$ (64,559)
Net Change for the Department of Secretary of State
Total Appropriation – Nonrecurring
Number of Positions
$ 2,854,671
1,928,053
45.0
NR
NR – Nonrecurring
60
Post-Legislative Budget Summary, 2000-01
General Fund – General Government - Continued
Department of State Treasurer
Original 2000-01 General Fund Appropriation: $ 18,863,033
Net Changes Enacted in 2000 Regular Session: 8,181,082
Current 2000-01 Certified Appropriation: $ 27,044,115
Expansion Budget:
2000-01
1. Information System Mainframe
One-time appropriations were allocated to provide funding to buy out
the lease for the Department’s mainframe and storage system. The total
cost to buy out the lease is $487,000. The cost is split between a
Receipt-Supported Division and a General Fund-Supported Division.
Receipt-Supported Division
1410 Retirement $243,500 NR
General Fund-Supported Division
1210 Investment and Banking $243,500 NR
Nontax revenue will be increased by the amount allocated to the
General Fund-Supported Division.
Appropriation – Nonrecurring
$ 243,500
NR
2. Enhancement of Information Technology Infrastructure
The General Assembly provided funding to continue improvement of
investment and banking system, complete the information technology
infrastructure upgrade, implement a core banking system, and upgrade
the retirement payroll system. The Department may use these funds for
equipment, software and other recurring and nonrecurring operating
expenses needed to upgrade the infrastructure and replace the outdated
systems. The Department also was given authority to establish seven
new positions ( a Portfolio Manager, an Accountant Technician V,
Administrative Assistant, a System Accountant, Accountant II, an
NR – Nonrecurring
61
Post-Legislative Budget Summary, 2000-01
General Fund – General Government - State Treasurer - Continued
Expansion Budget:
2000-01
Enhancement of Information Technology Infrastructure -
Continued
Applications Programmer and a Computer Operator). The total cost of
the projects are $832,249 recurring and $10,464,000 nonrecurring. The
cost will be allocated between the General Fund supported Divisions
and the Receipt supported Divisions as follows:
General Fund-Supported Divisions:
1210 Inv. And Banking $ 576,105 R $ 6,941,260 NR
1310 Local Gov’t $ 25,756 R $ 70,144 NR
Total General Fund $ 601,861 R $ 7,011,404 NR
Receipt-Supported Divisions
1130 Escheats $ 10,810 R $ 29,440 NR
1410 Retirement $ 219,578 R $3,423,156 NR
Total Receipts $ 230,388 R $3,452,596 NR
Nontax revenue will be increased by the amount allocated to the
General Fund supported Divisions.
Appropriation – Nonrecurring
Number of Positions
$ 601,861
7,011,404
7.0
NR
3. Federal Reserve Fees
The General Assembly appropriated funds to provide for the fees paid to
the Federal Reserve for providing processed warrants in the dual form
of electronic records and electronic images. Nontax revenue will be
increased by an offsetting amount.
390,000
Continuation Budget
4. Operating Budget Reductions
Appropriations to cover the cost of computer and data processing
services were reduced. Nontax revenue will be decreased by the same
amount.
(65,683)
Net Changes to the Department of State Treasurer
Appropriation – Nonrecurring
Number of Positions
$ 8,181,082
7,254,904
7.0
NR
NR - Nonrecurring
62
Post-Legislative Budget Summary, 2000-01
General Fund - Continued
Department of Health and Human Services
Original 2000-01 General Fund Appropriation: $ 3,010,766,845
Net Changes Enacted in 2000 Regular Session: (95,179,854)
Current 2000-01 Certified Appropriation: $ 2,915,586,991
Division of Child Development
Expansion Budget:
2000-01
1. Smart Start
The General Assembly appropriated $42,484,899 to expand Smart Start
direct services statewide. In addition, the General Assembly
appropriated $964,351 in recurring funds for state-level administration,
$50,750 in recurring funds for program evaluation, and $500,000 in
non-recurring funds for county collaboration efforts.
Appropriation - Recurring
Appropriation - Nonrecurring
$ 43,500,000
500,000
NR
2. T.E.A.C.H. Program
The Governor recommended and the General Assembly appropriated
funds to expand the Teacher Education and Compensation Helps
(T.E.A.C.H.) Program which provides a variety of educational
scholarship opportunities for individuals working in regulated child care
centers and homes.
400,000
3. Child Care Subsidy Program
The General Assembly authorized 68 positions in recognition of
increased demand on licensing and monitoring staff due to the growth in
regulated child care centers and homes and the implementation of the
rated licensing system. These positions were funded with federal Child
Care and Development Fund quality set-aside funding.
Number of Positions
68.0
NR - Nonrecurring
63
Post-Legislative Budget Summary, 2000-01
General Fund – Health and Human Services - Continued
Central Administration
Expansion Budget:
2000-01
4. Child Advocacy Institute
The Governor recommended and the General Assembly appropriated
funds to collect information and publish the Annual Report on the Status
of Children in North Carolina.
Appropriation – Nonrecurring
$ 250,000
NR
5. North Carolina Council on the Holocaust
The General Assembly provided funds to support Holocaust education
in the public schools.
Appropriation – Nonrecurring
50,000
NR
6. Latin American Resource Center
The General Assembly provided a grant in aid to the Latin American
Resource Center for administrative outreach operations and related
program support activities.
Appropriation – Nonrecurring
75,000
NR
7. Closing the Achievement Gap Pilot Program
The General Assembly provided funds to establish a pilot program to
assist children and families in order to enhance school performance and
family functioning.
Appropriation – Nonrecurring
250,000
NR
Division of Social Services
8. Special Children Adoption Incentives Fund
The General Assembly appropriated funds to provide financial
incentives for foster care families desiring to adopt special needs
children residing in their care.
500,000
NR - Nonrecurring
64
Post-Legislative Budget Summary, 2000-01
General Fund – Health and Human Services – Social Services - Continued
Expansion Budget:
2000-01
9. State County Special Assistance
The General Assembly provided funding to increase state county special
assistance payments from $982 to $1,062 per month. These changes are
effective October 1, 2000.
$ 4,450,000
10. Food Banks
The General Assembly provided funds that are to be equally distributed
to the regional network of food banks in North Carolina.
Appropriation – Nonrecurring
1,000,000
NR
11. Foster Care Independent Living Matching Funds
The General Assembly provided match for federal independent living
program funds that help prepare children for the transition from foster
care to independence. Also, these funds provide for the addition of one
position to coordinate the program.
Number of Positions
500,000
1.0
12. Special Children Adoption Fund
The General Assembly increased funding for the Special Children
Adoption Fund, which provides financial incentives to encourage the
adoption of children who are in foster care. Also, these funds provide
post adoption support funds to ensure placements are successful.
1,100,000
13. Administrative Support
The Governor recommended and General Assembly appropriated TANF
block grant funds to support 10 new positions that will support the
Work First Program. They will also coordinate expanded after school
programs for at risk children and child welfare training.
Number of Positions
10.0
14. Adoptions Program
The General Assembly provided funding for additional staff and related
funds to address the backlog in processing adoption information.
Number of Positions
200,000
3.0
NR – Nonrecurring
65
Post-Legislative Budget Summary, 2000-01
General Fund – Health and Human Services - Continued
Division of Medical Assistance
Expansion Budget:
2000-01
15. Family Planning Waiver
The General Assembly provided funding to support Medicaid coverage
for family planning services to men and women of child bearing ages
with family incomes equal to or less then 185% of the federal poverty
level. These changes are effective January 1, 2001.
Appropriation – Recurring
Appropriation - Nonrecurring
Number of Positions
$ 45,000
424,000
2.0
NR
16. Medicaid Positions
The General Assembly provided funding to support three positions to
meet new federal mandates and to handle increased demands related to
provider enrollment.
Number of Positions
127,000
4.0
17. Additional CAP-MR/DD Slots
The General Assembly provided funding to establish 600 CAP-MR/DD
slots in the Medicaid program.
6,890,000
Division of Public Health
18. Prevention of Birth Defects
The General Assembly appropriated nonrecurring funds for education
and awareness activities on the importance of folate consumption
preceding pregnancy to effectively prevent neural tube birth defects and
infant mortality.
Appropriation - Nonrecurring
150,000
NR
19. Office of Minority Health
The General Assembly appropriated nonrecurring funds to provide
funding to support mini-grants for coalition-building at the local level
and for minority infant mortality reduction efforts.
Appropriation - Nonrecurring
200,000
NR
NR - Nonrecurring
66
Post-Legislative Budget Summary, 2000-01
General Fund – Health and Human Services – Public Health - Continued
Expansion Budget:
2000-01
20. Healthy Carolinians
The General Assembly appropriated nonrecurring funds for Healthy
Carolinians’ task forces throughout the state.
Appropriation - Nonrecurring
$ 1,000,000
NR
21. Osteoporosis Task Force
The General Assembly appropriated nonrecurring funds to continue
support for the Osteoporosis Task Force.
Appropriation - Nonrecurring
150,000
NR
22. Heart Disease and Stroke Prevention
The General Assembly appropriated nonrecurring funds to the Heart
Disease and Stroke Prevention Task Force to continue the
implementation of the NC Plan to Prevent Heart Disease and Stroke.
Appropriation - Nonrecurring
100,000
NR
23. Arthritis Prevention Project
The General Assembly appropriated nonrecurring funds to continue the
grant-in-aid for a private, local project providing services for arthritis
patients in Mecklenburg County.
Appropriation - Nonrecurring
25,000
NR
24. Alice Aycock Poe Center for Health Education
The General Assembly appropriated nonrecurring funds to provide
grant-in-aid to the Alice Aycock Poe Center for Health Education.
Appropriation - Nonrecurring
200,000
NR
25. Prescription Drug Assistance Program
The General Assembly appropriated nonrecurring funds to provide
increased funding for the Prescription Drug Assistance Program for
persons over age 65.
Appropriation - Nonrecurring
500,000
NR
NR – Nonrecurring
67
Post-Legislative Budget Summary, 2000-01
General Fund – Health and Human Services – Public Health - Continued
Expansion Budget:
2000-01
26. Healthy Start Foundation
The General Assembly appropriated funds to continue the statewide
public information and education activities of the First Step campaign
and mini-grants for local communities to implement pilot programs
aimed at reducing infant mortality.
Appropriation - Nonrecurring
$ 1,000,000
NR
27. Birth Defects Monitoring Program
The General Assembly appropriated funds to initiate the development of
a birth defects registry.
Number of Positions
200,000
4.0
28. Hepatitis C Education Awareness
The General Assembly appropriated nonrecurring funds for Hepatitis C
education and awareness activities.
Appropriation - Nonrecurring
150,000
NR
29. Asthma Education
The General Assembly appropriated nonrecurring funds to support
asthma management, control, surveillance, and education.
Appropriation - Nonrecurring
250,000
NR
30. State Games
The General Assembly appropriated nonrecurring funds to continue the
support of the State Games of North Carolina which promotes health
and fitness.
Appropriation - Nonrecurring
200,000
NR
Division of Services for the Deaf and Hard of Hearing
31. Individual Education Plan (IEP) Services
The General Assembly appropriated nonrecurring funds for the delivery
of services required by students’ Individual Education Plans (IEP) at the
residential schools for the deaf. These services will be delivered by
contracts with providers.
Appropriation – Nonrecurring
600,000
NR
NR - Nonrecurring
68
Post-Legislative Budget Summary, 2000-01
General Fund – Health and Human Services
Services for the Deaf and Hard of Hearing - Continued
Expansion Budget:
2000-01
32. Teacher Mentor Pay
The General Assembly appropriated nonrecurring funds to compensate
experienced teachers at the schools for the deaf who serve as mentors
for new teachers.
Appropriation – Nonrecurring
$ 56,250
NR
33. Day Student Transportation
The General Assembly appropriated nonrecurring funds for transporting
deaf and hard of hearing day students to programs at the Division’s
three residential campuses.
Appropriation – Nonrecurring
375,000
NR
34. Family Support Services
The General Assembly appropriated funds to expand support services to
families with deaf and hard of hearing children identified as a
consequence of the newborn hearing screening program.
220,000
Division of Services for the Blind
35. Individual Education Plan (IEP) Services
The General Assembly appropriated nonrecurring funding for
contractual services required by students’ IEP’s at the Governor
Morehead School.
Appropriation – Nonrecurring
200,000
NR
36. Teacher Mentor Pay
The General Assembly appropriated nonrecurring funds to compensate
experienced teachers at the Governor Morehead School who serve as
mentors for new teachers.
Appropriation – Nonrecurring
18,750
NR
NR - Nonrecurring
69
Post-Legislative Budget Summary, 2000-01
General Fund – Health and Human Services – Services for the Blind - Continued
Expansion Budget:
2000-01
37. Services for Deaf/Blind Children
The General Assembly appropriated funds to establish a specialized
program for deaf/blind children at the Governor Morehead School,
including expansion of NC Central University’s master’s degree
program in visual impairment to include intervenor training.
Number of Positions
$ 225,000
5.0
38. Vocational Rehabilitation Case Services Funds
The General Assembly appropriated nonrecurring funds to offset the
increased tuition costs for visually impaired vocational rehabilitation
clients attending in-state universities.
Appropriation - Nonrecurring
235,000
NR
39. Day Student Transportation
The General Assembly appropriated nonrecurring funds for transporting
visually impaired day students to programs at the Governor Morehead
School campus.
Appropriation - Nonrecurring
125,000
NR
Division of Vocational Rehabilitation
40. Client Information System
The General Assembly appropriated nonrecurring funds to complete
development and implementation of an automated client information
system.
Appropriation - Nonrecurring
1,700,000
NR
41. Case Services Funds
The General Assembly appropriated nonrecurring funds to offset the
increased tuition costs of clients attending in-state universities.
Appropriation - Nonrecurring
615,000
NR
NR - Nonrecurring
70
Post-Legislative Budget Summary, 2000-01
General Fund – Health and Human Services – Vocational Rehabilitation - Continued
Expansion Budget:
2000-01
42. Independent Living Rehabilitation Program
The General Assembly appropriated recurring and nonrecurring funds to
address client needs statewide and continue technical assistance to the
housing industry on design requirements for multifamily housing for
disabled individuals.
Appropriation - Recurring
Appropriation – Nonrecurring
$ 2,000,000
2,000,000
NR
Division of Mental Health, Developmental Disabilities and Substance Abuse Services
43. Violent and Assualtive Children
The General Assembly appropriated funds to continue the current level
of services to the class of children formerly recognized as Willie M.
Appropriation – Nonrecurring
4,353,000
NR
44. Early Intervention System Pilots
The General Assembly provided funds to support the integrated clients
database and regional transdisciplinary team pilots for young children
receiving early intervention services.
Appropriation – Nonrecurring
250,000
NR
45. Mental Health System Reform Reserve
The U.S. Supreme Court found in, Olmstead v. L.C., the failure to place
an individual with mental health disabilities in a community setting
when it was determined to be an appropriate placement constituted a
violation of the Americans with Disabilities Act of 1990. In response to
the Court’s decision, the General Assembly authorized funds to support
the de-institutionalization individuals who would be better served
through community services. Funds were also provided to support the
anticipated reform of the mental health system.
Appropriation – Nonrecurring
3,000,000
NR
NR – Nonrecurring
71
Post-Legislative Budget Summary, 2000-01
General Fund – Health and Human Services – Mental Health, DDSAS - Continued
Expansion Budget:
2000-01
46. Housing Support for the Mentally Ill
The General Assembly appropriated funds to match federal dollars in
support of housing for the mentally ill. Funds will be allocated to Area
Mental Health Programs, who will facilitate the placement for thirty-eight
clients.
Appropriation – Nonrecurring
$ 301,000
NR
47. Funds for Autistic Adults
The Autism Society of North Carolina is a not-for-profit, statewide
advocacy and services corporation serving persons challenged by autism
and their families. Funds appropriated will support services, which may
include communication, recreational and summer programs, vocational,
adult day, residential and respite services.
250,000
48. Substance Abuse Services Positions
The General Assembly created four positions for the Division’s
Substance Abuse Services section. The positions will support the
section’s efforts in the areas of employee assistance, offender
management, quality assurance for DWI offenders, housing and other
24-hour services. The positions will be supported by the Substance
Abuse Prevention and Treatment Block Grant.
Number of Positions
4.0
49. Community Mental Health Programs
The General Assembly provided funds to the area mental health
programs to support their efforts in the areas of substance abuse and
developmental disabilities.
4,000,000
50. Child Residential Treatment/Services Programs
Funds were appropriated to establish alternative residential services for
children at-risk of institutionalization or other out-of-home placements.
Number of Positions
8,000,000
6.0
NR - Nonrecurring
72
Post-Legislative Budget Summary, 2000-01
General Fund – Health and Human Services – Mental Health, DDSAS - Continued
Expansion Budget:
2000-01
51. Atypical Antipsychotic Medications
The Governor recommended the General Assembly appropriate funds
($1,500,000) for atypical antipsychotic medications for the State’s
psychiatric hospitals and mental retardation centers. The General
Assembly partially funded the request by providing $750,000 for state
facilities and $750,000 for the Area Programs’ atypical antipsychotic
medication programs, which reduce the risk of institutionalization of
clients.
$ 1,500,000
52. Autistic Child and Adolescent Units
The General Assembly appropriated funds to support the establishment
of residential units and services for children and adolescent suffering
from autism. The residential units will be located at Murdock Center in
Butner. Funds were also appropriated to support a grant-in aid to
Residential Services, Inc. for residential services for children with
autism.
Total Requirements
Receipts
Appropriation
Appropriation - Nonrecurring
Number of Positions
$ 2,160,221
634,221
$ 1,200,000
326,000
65.0
NR
53. Area Mental Health Board Training
The General Assembly restored funds for the training of area mental
health boards members. The original appropriation were redirected by
the Governor in response to Hurricane Floyd.
Appropriation – Nonrecurring
150,000
NR
Division of Facility Services
54. Statewide Poison Control Center
The Governor recommended and the General Assembly authorized
funding to support North Carolina’s Statewide Poison Control Center
located at Carolinas Medical Center. The Department of Health and
Human Services designated a Statewide poison control center in 1988,
in response to G.S. 143-509(3), to serve as a resource to both the
medical community and to private citizens.
1,000,000
NR - Nonrecurring
73
Post-Legislative Budget Summary, 2000-01
General Fund – Health and Human Services – Facility Services - Continued
Expansion Budget:
2000-01
55. Adult Care Home Inspectors
The Governor recommended and the General Assembly supported the
addition of six new inspectors to implement the requirements
established in Senate Bill 10 ratified in the 1999 Session of the General
Assembly. These funds support newly established requirements for
special care units, time-limited provisional licenses, complaint
investigations, medication administration, and compliance history
reviews. These funds will be used as state match to draw down federal
funds and are effective January 1, 2001.
Number of Positions
$ 149,000
6.0
56. Nurse Aide Online Training
The General Assembly provided funding for the State Board of
Community Colleges for the development and implementation of on-site
internet training or other innovative training programs designed to
improve recruitment and reduce turnover of certified nursing assistants
in nursing facilities.
Appropriation – Nonrecurring
500,000
NR
Division of Aging
57. Adult Day Care Start-Up Grants
The General Assembly provided funding for up to 10 new Adult Day
Care Programs.
Appropriation – Nonrecurring
250,000
NR
Division of Child Development
Continuation Budget:
58. Smart Start
The General Assembly approved the Governor’s recommendation to
take a one-time reduction in Smart Start funding due to lower than
anticipated program expenditures.
(49,000,000)
NR – Nonrecurring
74
Post-Legislative Budget Summary, 2000-01
General Fund – Health and Human Services - Continued
Central Administration
Continuation Budget:
2000-01
59. Eliminate Position
The General Assembly eliminated one position funded with TANF
block grant funds. This Health Care Access Coordinator was not
established as a permanent full time employee, and instead was
established through an administrative contract. In order to comply with
the legislative intent of the above-mentioned provision, this
administrative contract has been eliminated.
60. Increase Receipts
The General Assembly reduced appropriations in anticipation of
increased receipts for prior year earned revenue.
Appropriation – Nonrecurring
$ (13,120,000)
NR
61. Increase Receipts
The General Assembly reduced appropriations in anticipation of
increased receipts throughout the department.
(3,000,000)
62. Eliminate 29 Vacant Positions
The General Assembly eliminated 29 vacant positions across the
department except for specific state institutions.
Number of Positions
(2,100,000)
(29.0)
Division of Social Services
Continuation Budget:
63. Reduce Excess Adoption Assistance Funds
The General Assembly reduced excess adoption assistance funds and
redirected these funds to support the enhancement of adoption activities.
(2,300,000)
NR – Nonrecurring
75
Post-Legislative Budget Summary, 2000-01
General Fund – Health and Human Services - Continued
Division of Medical Assistance
Continuation Budget:
2000-01
64. Transfer Medicaid Reserve Funds
The Governor recommended and the General Assembly approved a
transfer of receipts from the reserve created pursuant to G.S. 143023.2.
These additional receipts will offset the need for state appropriations in
the Medicaid program.
$ (70,000,000)
65. Reduced Administration Funding
The General Assembly approved a reduction in program funding to
support positions required by federal and state mandates.
(127,000)
66. Increased Drug Rebate Receipts
The Governor recommended and the General Assembly approved
increasing receipts from the drug rebate program to reflect increased
expenditures for prescription drugs.
(12,146,498)
67. Medicaid Adjustments
The Governor recommended and the General Assembly approved a
revised forecast that considers more current expenditure and utilization
information.
(32,388,631)
Division of Public Health
68. Reduce Funding to Family Planning
The General Assembly reduced appropriations for family planning
services to provide the state match for a Medicaid waiver for the
provision of family planning services.
Appropriation – Nonrecurring
(45,000)
(125,000)
NR
NR - Nonrecurring
76
Post-Legislative Budget Summary, 2000-01
General Fund – Health and Human Services – Public Health - Continued
Continuation Budget:
2000-01
69. Reduce Funding to Forensic Test for Alcohol Program
The Governor recommended and the General Assembly approved the
use of fees collected to restore a revoked driver license to support the
functions in the Forensic Test for Alcohol Program. The budgeting of
these fees reduces the need for appropriation.
Requirements
Receipts
Appropriation
$ -
964,871
$ (964,871)
70. Reduce Funding to Public Health Laboratory
The Governor recommended and the General Assembly approved the
use of anticipated increases in Medicaid receipts to support the cost of
Laboratory operations and reduce the need for appropriations.
Requirements
Receipts
Appropriation
$ -
220,000
$ (220,000)
71. Reduce Funding to AIDS Drug Assistance Program
The Governor recommended and the General Assembly approved a
reduction of appropriations by $2,000,000 for the AIDS Drug
Assistance Program due to the budgeting of federal funds and
drug rebates from pharmaceutical companies. Also, nonrecurring
appropriations were decreased by the General Assembly due to
underutilization of the program in the amount of $3,000,000.
Requirements
Receipts
Appropriation
Appropriation – Nonrecurring
$ (3,000,000)
2,000,000
$ (2,000,000)
(3,000,000)
NR
72. Reduce Funding to Developmental Evaluation Centers
The Governor recommended and the General Assembly approved the
reduction of appropriations to the Developmental Evaluation Centers
due to the budgeting of additional Medicaid receipts.
Requirements
Receipts
Appropriation
$ -
1,000,000
$ (1,000,000)
NR - Nonrecurring
77
Post-Legislative Budget Summary, 2000-01
General Fund – Health and Human Services –Public Health – Continued
Continuation Budget:
2000-01
73. Reduce Funding to the Medical Examiner’s Office
The Governor recommended and the General Assembly approved the
adjusting of appropriations by the amount of the increase in Medical
Examiner’s Autopsy Fees which was implemented January 1, 1999.
Requirements
Receipts
Appropriation
$ -
100,000
$ (100,000)
Division of Vocational Rehabilitation
74. Eliminate Operating Reserve for TBI Unit
The Governor recommended and the General Assembly approved the
elimination of the operating reserve for the Traumatic Brain Injury
(TBI) Unit in Goldsboro. Capital funding for the project was
redirected by the General Assembly to support the Hurricane Floyd
recovery effort.
Number of Positions
(956,328)
(48.0)
Division of Mental Health, Developmental Disabilities and Substance Abuse Services
75. Reduce Operating Reserve
The Governor redirected renovation and first year operating funds
appropriated for the Neurobehavioral Unit to services for the victims of
Hurricane Floyd. The General Assembly adopted the reduction on a
non-recurring basis.
Appropriation - Nonrecurring
Number of Positions
(571,526)
(51.0)
NR
NR – Nonrecurring
78
Post-Legislative Budget Summary, 2000-01
General Fund - Continued
Department of Correction
Original 2000-01 General Fund Appropriation -
(Including Transfers)
$ 889,745,650
Net Changes Enacted in 2000 Regular Session: (13,685,942)
Current 2000-01 Certified Appropriation: $ 876,059,708
Expansion Budget:
2000-01
1. Community Substance Abuse Programs
Nonrecurring funds were appropriated to the Department of Correction
Substance Abuse program for expansion of community based
counseling, job placement and mentoring programs for offenders.
Appropriation – Nonrecurring
$ 100,000
NR
2. Harriet’s House
Harriet’s House provides services to female offenders released from
prison. Additional funds were appropriated to this program to serve
more clients. Total funds appropriated for this program, including this
appropriation are $275,000.
75,000
3. Women at Risk
Women at Risk is a community correction program for female
probationers in Western North Carolina. Additional funds were
appropriated for this program bringing the total funds appropriated to a
total of $250,000.
50,000
4. Summit House
Summit House is a residential treatment and assistance program for
female probationers and their children. Additional funds were
appropriated for this program bringing the total funds appropriated for
this purpose to $1,396,592
292,834
NR - Nonrecurring
79
Post-Legislative Budget Summary, 2000-01
General Fund – Correction - Continued
Expansion Budget:
2000-01
5. ECO Inmate Family Pilot Project
Nonrecurring funds were provided for the Energy Committed Offenders
Program (ECO) to develop a program to provide counseling and
services to families of inmates. ECO currently receives state funds to
operate a halfway house for female inmates prior to their release from
prison.
Appropriation - Nonrecurring
$ 60,000
NR
6. Inmate Education and Reentry Program
Nonrecurring funds were appropriated for a pilot project for training and
education for male inmates to assist with transition to the community.
Funds will go to the Urban Investment Strategies Center at the Kenan
Center at UNC Chapel Hill. The project will provide six training
programs of 26 sessions each at six prisons statewide. Twenty to 25
male offenders will participate in each program.
Appropriation – Nonrecurring
130,000
NR
7. Medical Cost Containment Positions
To provide additional auditing and review of inmate bills, medical fees
and contracts, funding for three new positions was appropriated.
Positions will include a medical cost containment analyst and two
accounting positions.
Appropriation – Recurring
Appropriation – Nonrecurring
Additional Positions
100,239
13,260
3.0
NR
Continuation Budget:
8. Reduce Division of Community Corrections Travel Budget
The Division of Community Corrections has reduced the number of
Department of Administration owned vehicles used by the division by
defining caseloads into zones, thus reducing employee driving time
significantly. A reduction in the division’s travel budget was made
accordingly.
(200,000)
NR - Nonrecurring
80
Post-Legislative Budget Summary, 2000-01
General Fund - Correction - Continued
Continuation Budget:
2000-01
9. Reduce Division of Prisons Travel Budget
The Division of Prisons has turned in a number of Department of
Administration (DOA) owned vehicles. Based on actual spending, a
recurring reduction to the funds budgeted for rent/lease of DOA owned
vehicles was taken.
$ (150,000)
10. Reduce Division of Community Corrections Budget for Employee
Physicals
Physicals are required as a condition of employment for
probation/parole officers and certain other employees in the Division of
Community Corrections. Based on expenditures in 1999-2000, a
reduction was made in the funds budgeted for pre-employment
physicals.
(100,000)
11. Reduce Division of Community Corrections Equipment Budget
A one-time reduction of 10% in the equipment budget for the Division
of Community Corrections was taken to create fund availability for
fiscal year 2000-01.
Appropriation - Nonrecurring
(110,000)
NR
12. Reduce DART Cherry Aftercare Funds
The Continuation Budget includes $319,715 in contractual services
funds that are used for aftercare for DWI offenders completing the 28
and 90 day programs at the Drug Alcohol Recovery Treatment program
(DART) at Cherry Correctional Facility who are not eligible for existing
community programs. Funds for this project were reduced to $219,715.
(100,000)
13. Abolish One Vacant Parole Commission Position
Due to the declining number of parolees since the passage of structured
sentencing, costs associated with the operation of the Commission
are decreasing. The 1999 General Assembly, in House Bill 168,
Section 18.1, directed that the Post Release Supervision and Parole
Commission report on a plan for staff reduction in March 2000,
including a minimum 10% reduction in staff positions in the 2000-01
fiscal year over the 1999-2000 fiscal year. Budget reductions taken in
1999-2000 totaled $354,799 with a recurring reduction of $409,472, in
excess of the 10% stipulated. A total reduction of $45,587 was taken for
fiscal year 2000-01.
(45,587)
Number of Positions (1.0)
NR - Nonrecurring
81
Post-Legislative Budget Summary, 2000-01
General Fund - Correction - Continued
Continuation Budget:
2000-01
14. Eliminate Six Electronic House Arrest (EHA) Specialist Positions
House arrest with electronic monitoring is a special condition of
supervised probation, parole, or post-release supervision. Computer
technology is used to monitor and restrict the offender’s movement. All
house arrests with electronic monitoring cases are supervised by
probation and parole officers who respond to violations during regular
work hours. Designated electronic house arrest response officers
respond to violations after regular work hours. Electronic House Arrest
(EHA) is a centralized monitoring system for tracking the movement of
persons designated by the court to be placed on house arrest. Effective
January 2001, the Division of Community Corrections Special Programs
will implement a new, more automated monitoring system for
Electronic House Arrest (EHA) which will allow a reduction in staff and
a budget reduction in the first year of implementation of $80,962, with a
recurring cost savings of $166, 781 beginning in the second year.
Number of Positions
$ (93,924)
(6.0)
15. Increase Fee for Drug Tests
The Department of Correction provides drug testing on a contractual
basis to a number of county, state and private facilities, as well as the
Division of Prisons, well below the cost of private drug testing. The fee
charged was increased from $2.50 to $4.00 per test. The actual cost of
the tests is approximately $3.84, not including administrative costs. This
is the first increase in this fee since inception of this service.
Requirements
Receipts
Appropriation
$ -
126,186
$ (126,186)
16. Reduce the Intensive Motivational Program of Alternative
Correctional Treatment (IMPACT) Budget
IMPACT, a 90 to 120 day boot camp program for probationers, is
operational at two locations: IMPACT East in Hoffman is for males;
IMPACT West in Morganton serves both male and female on a rotating
basis. The program has a capacity of 1,500 but is only graduating 900.
A 10% recurring budget reduction in the non-salary operating budget
for IMPACT was taken due to low participation.
(108,300)
NR - Nonrecurring
82
Post-Legislative Budget Summary, 2000-01
General Fund - Correction - Continued
Continuation Budget:
2000-01
17. Eliminate IMPACT Aftercare Program Funding
Funding for the Intensive Motivational Program of Alternative
Correctional Treatment (IMPACT) or boot camp was eliminated.
IMPACT is a condition of special probation (split sentence) in which
the offender must serve an active sentence of 90 to 120 days, and then
remain on supervised probation. In past years, the General Assembly
appropriated funding for IMPACT Aftercare as a pilot, post-boot camp
probation program, which included intensive supervision probation and
care management through the Treatment Alternatives to Street Crime
(TASC) program in the Department of Health and Human Services.
The program was available in six counties: Buncombe, Forsyth,
Mecklenburg, New Hanover, and Edgecombe/Nash.
DOC analysis of the success rate statistics on this program did not
support the concept on which the program was based. TASC is an
intervention program for certain drug dependent criminal offenders and
those participating in the IMPACT program did not have drug and
alcohol problems as their primary treatment need. Reduction of the
funds budgeted for these contracts was made accordingly. As an
alternative, the Department of Correction is working to involve
probation parole officers in aftercare planning for all boot camp
graduates.
$ (440,000)
18. Reduce Funds for Non-Participating Counties - CJPP
Funding for Criminal Justice Partnership Program (CJPP)
Implementation Grants was eliminated for one year for the six counties
not expected to participate during the state fiscal year 2000-01. (HB
1840, Section 16)
Appropriation – Nonrecurring
(420,000)
NR
19. Support Enterprise Accounting Positions from Enterprise Fund
Nine accounting positions funded from the General Fund and dedicated
to the Enterprise Fund will be supported by receipts from that Fund,
thus replacing state appropriation.
Requirements
Receipts
Appropriation
$ -
344,200
$ (344,200)
NR - Nonrecurring
83
Post-Legislative Budget Summary, 2000-01
General Fund - Correction - Continued
Continuation Budget:
2000-01
20. Inmate Welfare Fund
The Inmate Welfare Fund accounts for canteen profits and telephone
contract profits in the prison system. The Fund pays for vocational
teachers in the prison units and supplies. Receipts from the Welfare
Fund were increased for a one-time transfer of cash to the General Fund,
thus decreasing state appropriation required. This savings initiative is
aided by the completion of new prison construction and its decreased
demand on this Fund for equipment associated with inmate activities.
Teaching positions and related supplies are not impacted by this
reduction.
Requirements
Receipts
Appropriation
$ -
2,250,000
$ (2,250,000)
NR
21. Reduce Data Processing Equipment
A one-time reduction of 10% in data processing equipment budgeted in
the Department of Correction was taken to create needed availability.
This savings initiative is aided by reductions in the estimated cost of this
type of equipment.
Appropriation – Nonrecurring
(225,862)
NR
22. Work Release Transportation Fee
Inmates on work release are required by General Statute to contribute
toward the cost of their transportation to work. The rate of
reimbursement to the state was increased from $1.50 per day to $2 per
day creating a savings in the General Fund for Department of
Correction.
Requirements
Receipts
Appropriation
$ -
44,844
$ (44,844)
23. Reduce Division of Prisons Employee Uniform Budg