North Carolina state budget. Post-legislative budget summary |
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1 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. 2 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. 3 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 4 Blank 5 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. 6 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. 7 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. 8 Blank 9 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. 10 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. 11 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. 12 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 13 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 14 Post-Legislative Budget Summary, 2000-01 General Fund – Continued TABLE 5 Fiscal Year 2000-01 General Fund Budget 15 Post-Legislative Budget Summary, 2000-01 General Fund – Table 5 - Continued TABLE 5 Fiscal Year 2000-01 General Fund Budget 16 Table 5 17 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 18 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 19 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 20 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) 21 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 22 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
Object Description
Description
Title | North Carolina state budget. Post-legislative budget summary |
Other Title | Post-legislative budget summary; Post legislative budget summary; Post-legislative summary of the... state budget |
Date | 2000; 2001 |
Description | 2000-2001 |
Digital Characteristics-A | 486 KB; 170 p. |
Digital Format |
application/pdf |
Pres File Name-M | pubs_serial_ncbudgetpostlegislativesummary20002001.pdf |
Pres Local File Path-M | \Preservation_content\StatePubs\pubs_borndigital\images_master\ |
Full Text | 1 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. 2 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. 3 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 4 Blank 5 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. 6 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. 7 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. 8 Blank 9 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. 10 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. 11 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. 12 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 13 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 14 Post-Legislative Budget Summary, 2000-01 General Fund – Continued TABLE 5 Fiscal Year 2000-01 General Fund Budget 15 Post-Legislative Budget Summary, 2000-01 General Fund – Table 5 - Continued TABLE 5 Fiscal Year 2000-01 General Fund Budget 16 Table 5 17 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 18 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 19 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 20 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) 21 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 22 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 |
OCLC number | 17694460 |