Highlights, fiscal and budgetary actions

              300 N. Salisbury Street, Legislative Office Building Suites 209 & 619
Raleigh, North Carolina 27603-5925
TELEPHONE (919) 733-4910 - FAX (919) 715-3589
2011 ANNOTATED COMMITTEE
REPORT ON THE CONTINUATION,
EXPANSION AND CAPITAL BUDGETS
(Includes summaries of relevant provisions of S.L. 2011-145, House Bill 200,
Budget Act; S.L. 2011-391, House Bill 22, Budget Technical Changes/
Corrections ; and related bills through January 5, 2012)
FOREWORD
This document is an annotated version of the Senate
Appropriations Committee Report on the Continuation,
Expansion and Capital Budgets for the FY 2011-13 Biennium
as presented in HB 22. This Annotated Report, includes all
legislative adjustments for the FY 2011-13 budgets contained
in S.L. 2011-145 (HB 200), S.L. 2011-391 (HB 22) and
related bills approved through January 5, 2012. Also included
are summaries of other related bills and budgetary
information.
Acknowledgements
The Fiscal Research Division is a nonpartisan, central staff office that provides fiscal
and policy information to the legislature.
Staff Assignments
Acting Director Mark Trogdon
Support Staff Agnes Perry
Debora Bridgers
Elizabeth Davis
Subcommittee/Departments/Coverage Analysts
Budget Development
House and Senate Appropriations Committees Karen Hammonds-Blanks - House
Statewide Budget Issues Richard Bostic - House
Appropriations Bill Coordination
Savings Reserve Account Evan Rodewald - Senate
Budget Technical Corrections Bill Coordination Susan Morgan - Senate
Joint Commission on Governmental Operations
Program Justification Reviews Coordination
Salaries and Benefits Marshall Barnes
Stanley Moore
David Vanderweide
General Government/Capital
Administration Chloe Gossage, Team Leader
Administrative Hearings Mark Bondo
Auditor
Cultural Resources
General Assembly
Governor’s Office
Insurance
Information Technology Services
Housing Finance Agency
Licensing Boards
Lieutenant Governor
Revenue
Secretary of State
State Board of Elections
State Budget and Management
State Controller
State Ethics Commission
State Treasurer
Staff Assignments
Subcommittee/Departments/Coverage Analysts
Justice and Public Safety
*Correction Kristine Leggett, Team Leader
*Crime Control & Public Safety John Poteat
Judicial
Justice
*Juvenile Justice & Delinquency Prevention
* These agencies were merged into the new Department of Public Safety as of January 1, 2012.
Health and Human Services
Lisa Hollowell, Team Leader
Donnie Charleston
Denise Thomas
Natural and Economic Resources
Environment and Natural Resources Kristin Walker, Team Leader
Agriculture and Consumer Services Claire Hester
Commerce Lanier McRee
Labor
Transportation Karlynn O’Shaughnessy, Team Leader
Bryce Ball
Amna Cameron
Education
Public Instruction (K-12) Andrea Poole, Team Leader
Community Colleges Denise Harb
University of North Carolina Brian Matteson
Kristopher Nordstrom
Economy and Taxation
Revenue Estimates Rodney Bizzell, Team Leader
Finance Committees Barry Boardman
Revenue Laws Study Committee Sandra Johnson
Economic Issues Patrick McHugh
State Bond Proposals Brian Slivka
Fiscal Trends Commission Jonathan Tart
Digital Information Management Chris Black
Table of Contents
General Fund Availability Statement 1
Summary: General Fund Appropriations 2
Education
Public Education F-1
Community Colleges F-17
UNC System F-27
NC Community College System – Trust – General F-40
Health and Human Services G-1
Health & Wellness Trust Fund G-11
Natural and Economic Resources
Agriculture and Consumer Services H-1
Labor H-9
Environment and Natural Resources H-12
DENR – Special H-30
DENR Part F H-32
DENR - Recreational/ Natural Heritage Trust Fund H-34
Solid Waste Management Trust Fund H-36
DENR – Clean Water Management Trust Fund H-45
Commerce H-47
Commerce – Enterprise H-54
Commerce – State Aid H-60
NC Biotechnology Center H-66
Rural Economic Development Center H-68
Wildlife Resources Commission H-70
Wildlife Receipts – Non-Interest Earning H-71
Justice and Public Safety
Judicial I-1
Judicial – Indigent Defense I-9
Justice I-12
Judicial – Indigent Defense I-14
Juvenile Justice and Delinquency Prevention I-16
Correction I-24
Crime Control and Public Safety I-35
Highway Patrol I-39
General Government
Administration J-1
Auditor J-11
Cultural Resources J-14
Cultural Resources – Roanoke Island Commission J-27
General Assembly J-29
Governor J-33
Housing Finance Agency J-35
Insurance J-37
Insurance – Volunteer Safety Workers’ Compensation Fund J-40
Lieutenant Governor J-42
Office of Administrative Hearings J-44
Revenue J-46
Secretary of State J-51
Table of Contents
General Government
State Board of Elections J-53
State Budget and Management J-56
State Budget and Management – Special Appropriations J-59
State Controller J-61
Treasurer J-64
Treasurer – Retirement for Fire and Rescue Squad Workers J-66
Transportation
Highway Fund K-1
Highway Trust Fund K-11
Turnpike Authority K-14
Reserves, Debt Service, and Adjustments L-1
Capital M-1
Information Technology Services
Information Technology Fund N-1
Information Technology Internal Service Fund N-6
Salaries & Benefits O-1
Appendices A-1
Total State Budget by Source of Funds A-2
Total General Authorizations/Current Operations A-3
NC General Fund Operation Appropriations (Education and HHS) A-5
Earmarking of Unreserved Fund Balance A-10
Savings Reserve Account A-12
Actual Tax Revenue Collected by Major Schedules A-14
GENERAL FUND
AVAILABILITY
STATEMENT
FY 2011-12 FY 2012-13
1 Unappropriated Balance Remaining 41,232,325
2 Ending Unreserved Fund Balance for FY 2009-10 236,902,394 0
3 Anticipated Reversions for FY 2010-11 - Session Law 2011-15 (S.B. 109) 537,740,799 0
4 Anticipated Overcollections from FY 2010-11 180,800,000 0
5 Repayment of Medicaid Receipts in FY 2010-11 (125,000,000) 0
6 Transfer Health and Wellness Trust Funds to Public Health1 32,904,411 0
7 Adjustment from Estimated to Actual FY 2010-11 Beginning Unreserved Fund Balance2. 27,252,310 0
8 Statutory Earmarks:
9 Savings Reserve Account (183,650,000) 0
10 Repairs and Renovations Reserve Account (124,500,000) 0
11 Beginning Unreserved Fund Balance 582,449,914 41,232,325
12
13 Revenues Based on Existing Tax Structure 18,129,800,000 19,181,900,000
14 Non-tax Revenues
15 Investment Income 59,400,000 76,700,000
16 Judicial Fees 217,800,000 217,800,000
17 Disproportionate Share 100,000,000 100,000,000
18 Insurance 71,400,000 73,500,000
19 Other Non-Tax Revenues 182,500,000 182,500,000
20 Highway Trust Fund/Use Tax Reimbursement Transfer 41,500,000 27,600,000
21 Highway Fund Transfer 20,230,000 24,080,000
22 Subtotal Non-tax Revenues 692,830,000 702,180,000
23 Total General Fund Availability 19,405,079,914 19,925,312,325
24 Adjustments to Availability: 2011 Session
25 Loss of Estate Tax (57,100,000) (72,200,000)
26 Small Business Tax Relief Package (131,600,000) (335,600,000)
27 Repeal Wildlife Resources Commission Sales Tax Earmark 22,970,000 23,920,000
28 Suspend Corporate Income Tax Earmark (Public School Construction) 72,110,000 74,750,000
29 Increase in Judicial Fees 61,765,715 61,765,715
30 Increase Investment Company Notice Filing Fee 1,600,000 1,600,000
31 Increase Parking Fees for Visitors 550,000 550,000
32 Loss of Revenue from the Town of Butner (1,213,235) (1,213,235)
33 Transfer from E-Commerce Reserve Fund 4,483,526 0
34 Divert Funds from Parks & Recreation Trust Fund 8,435,000 0
35 Divert Funds from Recreational/ Natural Heritage Trust Fund 8,000,000 0
36 Transfer from Highway Fund for State Highway Patrol 196,849,542 188,209,049
37 Transfer Additional Funds from Highway Trust Fund 35,223,642 0
38 Transfer from Mercury Prevention Pollution Fund 250,000 0
39 Transfer from Commerce - Enterprise Fund 500,000 0
40 Divert Funds from Scrap Tire Disposal Account 2,268,989 0
41 Divert Funds from White Goods Management Account 1,951,465 0
42 Diversion of Golden LEAF Funds 17,563,760 17,563,760
43 Master Settlement Agreement Funds 24,668,720 25,580,772
44 Transfer Health and Wellness Trust Funds to Public Health1 0 0
45 Department of Revenue - Accounts Receivable Program 25,000,000 25,000,000
46 Medicaid Disproportionate Share Receipts 15,000,000 15,000,000
47 Adjust Transfer from Insurance Regulatory Fund (742,348) (742,348)
48 Adjust Transfer from Treasurer's Office (3,881,172) (3,916,453)
49 Transfer from NC Flex FICA Funds 1,000,000 0
50 Proceeds from the Sale of State Assets 15,000,000 25,000,000
51 Tax Credit for Children with Disabilities (S.L. 2011-395;HB 344) (1,350,000) (5,877,900)
52 Subtotal Adjustments to Availability: 2011 Session 319,303,604 39,389,360
53 Revised General Fund Availability 19,724,383,518 19,964,701,685
54 Less General Fund Appropriations (19,683,151,193) (19,937,449,375)
55 Unappropriated Balance Remaining 41,232,325 27,252,310
56 1 -Transfer effective June 30th, 2011. The funds previously on line 44 are now included on line 6 .
57
Revised General Fund Availability Statement
2 - S.L. 2011-145 (Appropriations Act) projected Beginning Unreserved Fund Balance on line 11 for FY 2011-12 was $522,293,193.
Page 1
SUMMARY:
GENERAL FUND
APPROPRIATIONS
Revised
Continuation Recurring Nonrecurring Net FTE Appropriation
Budget Adjustments Adjustments Changes Changes 2011-12
Education
Community Colleges 1,102,475,214 (109,875,214) (7,600,000) (117,475,214) (25.00) 985,000,000
Public Education 7,923,543,951 (341,814,675) (117,237,219) (459,051,894) (99.50) 7,464,492,057
University System 2,887,492,464 (332,663,591) (14,453,741) (347,117,332) 309.80 2,540,375,132
Total Education 11,913,511,629 (784,353,480) (139,290,960) (923,644,440) 185.30 10,989,867,189
Health and Human Services
Central Management and Support 70,229,335 (25,651,348) 5,599,390 (20,051,958) (288.00) 50,177,377
Aging and Adult Services 37,419,667 (400,000) 0 (400,000) 0.00 37,019,667
Blind and Deaf / Hard of Hearing Services 8,389,110 0 0 0 0.00 8,389,110
Child Development 261,759,600 10,695,977 (6,352,644) 4,343,333 0.00 266,102,933
Health Service Regulation 17,925,590 0 (1,792,559) (1,792,559) 0.00 16,133,031
Medical Assistance 3,314,539,538 (340,004,970) (16,146,384) (356,151,354) (30.00) 2,958,388,184
Mental Health, Dev. Disabilities and Sub. Abuse 723,675,112 (12,962,880) (45,000,000) (57,962,880) (7.00) 665,712,232
NC Health Choice 88,373,806 (8,921,489) 0 (8,921,489) 0.00 79,452,317
Public Health 161,930,589 (4,391,755) 32,904,411 28,512,656 (25.00) 190,443,245
Social Services 202,245,063 (16,061,995) 0 (16,061,995) (2.00) 186,183,068
Vocational Rehabilitation 41,252,238 (2,058,522) (2,067,928) (4,126,450) (5.00) 37,125,788
Total Health and Human Services 4,927,739,648 (399,756,982) (32,855,714) (432,612,696) (357.00) 4,495,126,952
Justice and Public Safety
Correction 1,421,644,768 (71,332,902) (12,495,520) (83,828,422) (499.00) 1,337,816,346
Crime Control & Public Safety 34,175,427 191,083,368 0 191,083,368 2,310.50 225,258,795
Judicial Department 477,189,575 (39,454,220) 1,184,693 (38,269,527) (302.50) 438,920,048
Judicial - Indigent Defense 122,770,246 (10,021,513) (2,657,207) (12,678,720) (11.40) 110,091,526
Justice 89,670,944 (8,806,806) (160,125) (8,966,931) (105.31) 80,704,013
Juvenile Justice & Delinquency Prevention 151,295,187 (19,563,395) 3,861,900 (15,701,495) (278.60) 135,593,692
Total Justice and Public Safety 2,296,746,147 41,904,532 (10,266,259) 31,638,273 1,113.69 2,328,384,420
SUMMARY OF GENERAL FUND APPROPRIATIONS
2011 Legislative Session: Fiscal Year 2011-12
Legislative Adjustments
2
Revised
Continuation Recurring Nonrecurring Net FTE Appropriation
Budget Adjustments Adjustments Changes Changes 2011-12
SUMMARY OF GENERAL FUND APPROPRIATIONS
2011 Legislative Session: Fiscal Year 2011-12
Legislative Adjustments
Natural and Economic Resources
Agriculture and Consumer Services 61,754,014 (1,555,380) 5,262,230 3,706,850 (8.00) 65,460,864
Commerce 38,907,381 (5,920,640) 17,865,599 11,944,959 (19.00) 50,852,340
Commerce - State Aid 31,169,289 (2,190,286) 3,872,022 1,681,736 0.00 32,851,025
Environment and Natural Resources 188,972,401 (36,366,265) 13,178,751 (23,187,514) (160.51) 165,784,887
Clean Water Mgmt. Trust Fund 100,000,000 (88,750,000) 0 (88,750,000) 0.00 11,250,000
Labor 16,842,679 (1,005,792) 0 (1,005,792) (9.00) 15,836,887
NC Biotechnology Center 19,501,900 (1,950,190) 0 (1,950,190) 0.00 17,551,710
Rural Economic Development Center 22,640,814 (2,264,085) 5,000,000 2,735,915 0.00 25,376,729
Wildlife Resources Commission 0 17,221,179 778,821 18,000,000 0.00 18,000,000
Total Natural & Economic Resources 479,788,478 (122,781,459) 45,957,423 (76,824,036) (196.51) 402,964,442
General Government
Administration 69,700,026 (5,251,083) 0 (5,251,083) (83.84) 64,448,943
Auditor 13,063,656 (1,206,082) 0 (1,206,082) (13.00) 11,857,574
Cultural Resources 72,664,633 (8,639,776) 0 (8,639,776) (97.50) 64,024,857
Cultural Resources - Roanoke Island Comm. 2,406,982 (601,746) 0 (601,746) 0.00 1,805,236
General Assembly 54,593,047 (8,993,377) 7,572,506 (1,420,871) (9.00) 53,172,176
Governor 6,189,478 (1,448,321) 0 (1,448,321) 0.00 4,741,157
Housing Finance Agency 13,877,996 (4,204,945) 0 (4,204,945) 0.00 9,673,051
Insurance 33,458,756 2,935,165 0 2,935,165 (3.00) 36,393,921
Insurance - Worker's Compensation Fund 4,500,000 (706,000) (1,500,000) (2,206,000) 0.00 2,294,000
Lieutenant Governor 954,868 (172,225) 0 (172,225) (1.00) 782,643
Office of Administrative Hearings 4,328,822 (186,564) 0 (186,564) (2.00) 4,142,258
Revenue 88,370,399 (10,170,861) 0 (10,170,861) (106.00) 78,199,538
Secretary of State 11,076,972 (422,409) 0 (422,409) (4.00) 10,654,563
State Board of Elections 6,189,011 (1,002,408) 0 (1,002,408) (14.00) 5,186,603
State Budget and Management (OSBM) 6,963,796 (1,115,133) 0 (1,115,133) (6.00) 5,848,663
OSBM - Special Appropriations 5,934,311 (5,493,699) 1,500,000 (3,993,699) (13.00) 1,940,612
State Controller 32,517,077 (3,539,584) (608,536) (4,148,120) (18.50) 28,368,957
Treasurer - Operations 10,538,203 (3,881,172) 0 (3,881,172) (36.00) 6,657,031
Treasurer - Fire/Rescue Retirement 17,812,114 0 0 0 0.00 17,812,114
Total General Government 455,140,147 (54,100,220) 6,963,970 (47,136,250) (406.84) 408,003,897
3
Revised
Continuation Recurring Nonrecurring Net FTE Appropriation
Budget Adjustments Adjustments Changes Changes 2011-12
SUMMARY OF GENERAL FUND APPROPRIATIONS
2011 Legislative Session: Fiscal Year 2011-12
Legislative Adjustments
Debt Service and Statewide Reserves
Debt Service
Interest / Redemption 705,905,183 (16,947,995) 0 (16,947,995) 0.00 688,957,188
Federal Reimbursement 1,616,380 0 0 0 0.00 1,616,380
Subtotal Debt Service 707,521,563 (16,947,995) 0 (16,947,995) 0.00 690,573,568
Statewide Reserves
Contingency and Emergency Fund 5,000,000 0 0 0 5,000,000
State Retirement System Contributions 0 248,100,000 248,100,000 248,100,000
Judicial Retirement System Contribution 0 6,800,000 0 6,800,000 6,800,000
Firemen & Rescue Squad Workers Pension Fund 4,318,042 0 4,318,042 4,318,042
National Guard Pension Fund 0 0 0 0
State Health Plan 0 7,119,541 7,119,541 7,119,541
Information Technology Fund 7,840,000 (1,537,574) (1,844,284) (3,381,858) (3.00) 4,458,142
Job Development Investment Grants (JDIG) 27,400,000 0 (12,000,000) (12,000,000) 15,400,000
Continuation Review Reserve
Review of Compensation Plans 2,000,000 2,000,000 2,000,000
Automated Fraud Detection Development 1,000,000 1,000,000 1,000,000
Controller- Fraud Detection Development 500,000 500,000 500,000
Severance Expenditure Reserve 69,000,000 69,000,000 69,000,000
Subtotal Statewide Reserves 40,240,000 264,800,009 58,655,716 323,455,725 (3.00) 363,695,725
Total Reserves and Debt Service 747,761,563 247,852,014 58,655,716 306,507,730 (3.00) 1,054,269,293
Total General Fund for Operations 20,820,687,612 (1,071,235,595) (70,835,824) (1,142,071,419) 335.64 19,678,616,193
Capital Improvements
Water Resources Development Projects 0 0 4,535,000 4,535,000 0.00 4,535,000
Total Capital Improvements 0 0 4,535,000 4,535,000 0.00 4,535,000
Total General Fund Budget 20,820,687,612 (1,071,235,595) (66,300,824) (1,137,536,419) 335.64 19,683,151,193
4
Revised
Continuation Recurring Nonrecurring Net FTE Appropriation
Budget Adjustments Adjustments Changes Changes 2012-13
Education
Community Colleges 1,102,475,214 (117,475,214) 0 (117,475,214) (25.00) 985,000,000
Public Education 7,923,543,951 (344,504,704) (134,917,147) (479,421,851) (99.50) 7,444,122,100
University System 2,886,730,386 (310,045,806) (25,011,882) (335,057,688) 205.80 2,551,672,698
Total Education 11,912,749,551 (772,025,724) (159,929,029) (931,954,753) 81.30 10,980,794,798
Health and Human Services
Central Management and Support 70,229,335 (25,651,348) 0 (25,651,348) (288.00) 44,577,987
Aging and Adult Services 37,419,667 (400,000) 0 (400,000) 0.00 37,019,667
Blind and Deaf / Hard of Hearing Services 8,372,886 0 0 0 0.00 8,372,886
Child Development 261,759,600 10,695,977 (6,352,644) 4,343,333 0.00 266,102,933
Health Service Regulation 17,925,590 0 (1,792,559) (1,792,559) 0.00 16,133,031
Medical Assistance 3,314,539,538 (382,523,695) (24,739,541) (407,263,236) (40.00) 2,907,276,302
Mental Health, Dev. Disabilities and Sub. Abuse 723,675,112 (12,962,880) 0 (12,962,880) (7.00) 710,712,232
NC Health Choice 88,373,806 (4,655,941) 0 (4,655,941) 0.00 83,717,865
Public Health 161,930,589 (4,391,755) 0 (4,391,755) (25.00) 157,538,834
Social Services 202,245,063 (16,061,995) 0 (16,061,995) (2.00) 186,183,068
Vocational Rehabilitation 41,654,578 (2,058,522) (2,067,928) (4,126,450) (5.00) 37,528,128
Total Health and Human Services 4,928,125,764 (438,010,159) (34,952,672) (472,962,831) (367.00) 4,455,162,933
Justice and Public Safety
Correction 1,418,867,332 (59,302,927) (11,153,612) (70,456,539) (439.00) 1,348,410,793
Crime Control & Public Safety 34,175,427 180,989,091 0 180,989,091 2,310.50 215,164,518
Judicial Department 477,189,575 (40,367,468) (1,681,000) (42,048,468) (388.50) 435,141,107
Judicial - Indigent Defense 122,770,246 (10,021,513) 0 (10,021,513) (11.40) 112,748,733
Justice 89,670,944 (8,806,806) 0 (8,806,806) (105.31) 80,864,138
Juvenile Justice & Delinquency Prevention 151,295,187 (20,154,622) 0 (20,154,622) (278.60) 131,140,565
Total Justice and Public Safety 2,293,968,711 42,335,755 (12,834,612) 29,501,143 1,087.69 2,323,469,854
SUMMARY OF GENERAL FUND APPROPRIATIONS
2011 Legislative Session: Fiscal Year 2012-13
Legislative Adjustments
5
Revised
Continuation Recurring Nonrecurring Net FTE Appropriation
Budget Adjustments Adjustments Changes Changes 2012-13
SUMMARY OF GENERAL FUND APPROPRIATIONS
2011 Legislative Session: Fiscal Year 2012-13
Legislative Adjustments
Natural and Economic Resources
Agriculture and Consumer Services 61,754,014 (1,555,380) 2,000,000 444,620 (14.00) 62,198,634
Commerce 38,907,381 (5,656,918) 0 (5,656,918) (21.00) 33,250,463
Commerce - State Aid 31,169,289 (1,717,305) 700,000 (1,017,305) 0.00 30,151,984
Environment and Natural Resources 188,972,401 (34,824,296) (6,000,000) (40,824,296) (296.47) 148,148,105
Clean Water Mgmt. Trust Fund 100,000,000 (88,750,000) 0 (88,750,000) 0.00 11,250,000
Labor 16,842,679 (1,005,792) 0 (1,005,792) (9.00) 15,836,887
NC Biotechnology Center 19,501,900 (1,950,190) 0 (1,950,190) 0.00 17,551,710
Rural Economic Development Center 22,640,814 (2,264,085) 5,000,000 2,735,915 0.00 25,376,729
Wildlife Resources Commission 0 17,221,179 0 17,221,179 0.00 17,221,179
Total Natural and Economic Resources 479,788,478 (120,502,787) 1,700,000 (118,802,787) (340.47) 360,985,691
General Government
Administration 69,700,026 (3,346,953) 0 (3,346,953) (83.84) 66,353,073
Auditor 13,063,656 (2,387,621) 0 (2,387,621) (26.00) 10,676,035
Cultural Resources 72,664,633 (10,967,632) 0 (10,967,632) (114.00) 61,697,001
Cultural Resources - Roanoke Island Comm. 2,406,982 (1,203,491) 0 (1,203,491) 0.00 1,203,491
General Assembly 54,593,047 (7,488,839) 3,000,000 (4,488,839) (47.75) 50,104,208
Governor 6,189,478 (1,448,321) 0 (1,448,321) 0.00 4,741,157
Housing Finance Agency 13,877,996 (4,204,945) 0 (4,204,945) 0.00 9,673,051
Insurance 33,458,756 2,935,165 0 2,935,165 (3.00) 36,393,921
Insurance - Worker's Compensation Fund 4,500,000 (1,876,346) 0 (1,876,346) 0.00 2,623,654
Lieutenant Governor 954,868 (259,544) 0 (259,544) (1.00) 695,324
Office of Administrative Hearings 4,328,822 (186,564) 0 (186,564) (2.00) 4,142,258
Revenue 88,370,399 (10,170,861) 0 (10,170,861) (106.00) 78,199,538
Secretary of State 11,076,972 (422,409) 0 (422,409) (4.00) 10,654,563
State Board of Elections 6,189,011 (1,062,408) 0 (1,062,408) (14.00) 5,126,603
State Budget and Management (OSBM) 6,963,796 (1,115,133) 0 (1,115,133) (6.00) 5,848,663
OSBM - Special Appropriations 5,934,311 (5,493,699) 0 (5,493,699) (13.00) 440,612
State Controller 32,517,077 (3,539,584) (608,536) (4,148,120) (18.50) 28,368,957
Treasurer - Operations 10,538,203 (3,916,453) 0 (3,916,453) (36.00) 6,621,750
Treasurer - Fire/Rescue Retirement 17,812,114 0 0 0 0.00 17,812,114
Total General Government 455,140,147 (56,155,638) 2,391,464 (53,764,174) (475.09) 401,375,973
6
Revised
Continuation Recurring Nonrecurring Net FTE Appropriation
Budget Adjustments Adjustments Changes Changes 2012-13
SUMMARY OF GENERAL FUND APPROPRIATIONS
2011 Legislative Session: Fiscal Year 2012-13
Legislative Adjustments
Debt Service and Statewide Reserves
Debt Service:
Interest / Redemption 705,905,183 54,079,791 0 54,079,791 759,984,974
Federal Reimbursement 1,616,380 0 0 0 1,616,380
Subtotal Debt Service 707,521,563 54,079,791 0 54,079,791 0.00 761,601,354
Statewide Reserves:
Contingency and Emergency Fund 5,000,000 0 0 0 5,000,000
State Retirement System Contributions 0 336,000,000 0 336,000,000 336,000,000
Judicial Retirement System Contribution 0 7,800,000 0 7,800,000 7,800,000
Firemen & Rescue Squad Workers Pension Fund 5,366,928 0 5,366,928 5,366,928
National Guard Pension Fund 0 0 0 0
State Health Plan 0 102,151,104 0 102,151,104 102,151,104
Information Technology Fund 7,840,000 162,426 (1,844,284) (1,681,858) (3.00) 6,158,142
Job Development Investment Grants (JDIG) 27,400,000 0 0 0 27,400,000
Continuation Review Reserve 35,576,758 35,576,758 35,576,758
Compensation Adjustment, Performance Pay Reserve 0 121,105,840 121,105,840 121,105,840
Automated Fraud Detection Development 7,000,000 7,000,000 7,000,000
Controller- Fraud Detection Development 500,000 500,000 500,000
Subtotal Statewide Reserves 40,240,000 572,586,298 41,232,474 613,818,772 (3.00) 654,058,772
Total Reserves and Debt Service 747,761,563 626,666,089 41,232,474 667,898,563 (3.00) 1,415,660,126
Total General Fund for Operations 20,817,534,214 (717,692,464) (162,392,375) (880,084,839) (16.57) 19,937,449,375
Capital Improvements
Water Resources Development Projects 0 0 0 0 0.00 0
Total Capital Improvements 0 0 0 0 0.00 0
Total General Fund Budget 20,817,534,214 (717,692,464) (162,392,375) (880,084,839) (13.57) 19,937,449,375
7
EDUCATION
Section F
Public Education
Adjusted Continuation Budget
Legislative Changes
$7,923,543,951 $7,923,543,951
GENERAL FUND
2011 Annotated Conference Committee Report
FY 11-12 FY 12-13
A. Technical Adjustments
1 $55,882,651 R $143,087,414 R
Fully funds both years of average daily membership (ADM)
growth for public schools, providing $55.8 million in FY 2011-
12 and $143.1 million in FY 2012-13. This adjustment, which
accounts for changes in multiple allotments, has
traditionally been included in the continuation budget. (H.B.
584/S.B. 500)
ADM Adjustment
2 ($5,877,900) R
Adjusts the FY 2012-13 ADM to reflect the estimated decrease
in public school enrollment resulting from S.L. 2011-395, Tax
Credits for Children with Disabilities. (S.L. 2011-395)
ADM Adjustment: Tax Credits for Children with Disabilities
3 ($21,838,817) R ($22,040,287) R
Adjusts several budget lines to account for the decrease in
average salaries between FY 2009-10 and FY 2010-11. This
adjustment has traditionally been included in the
continuation budget. (H.B. 584/S.B. 500)
Average Salary Adjustment
B. Other Public School Funding Adjustments
4 ($124,217,542) R ($198,293,574) R
Increases the LEA Adjustment reduction. The State Board of
Education will distribute this reduction to all LEAs and
charter schools on the basis of ADM. LEAs and charters will
then be responsible for identifying budget reductions in
order to meet their share of the LEA Adjustment. LEAs are
expected to utilize federal EduJobs availability to minimize
reducing position allotments. (S.L. 2011-145, Sec. 7.20)
LEA Adjustment
5 $61,697,942 R $62,767,803 R
Adds funding for 1,124 additional teaching positions in FY
2011-12 and 1,144 additional teaching positions in FY 2012-13
to reduce the classroom teacher allotment ratios for grades 1-
3 from 1 teacher per 18 students to 1 teacher per 17 students
in both years of the biennium. A related provision, Section
7.1B, expresses the intent of the General Assembly to add
additional teachers as funds become available with a goal of
reducing the teacher allotment ratio in grades 1-3 to 1
teacher for every 15 students. (S.L. 2011-145, Sec. 7.1B)
Class Size Reduction in Grades 1-3
Public Education Page F - 1
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
$200,000
6
Provides nonrecurring funding for studies of third grade NR
literacy programs and ways to reduce the need for remedial or
developmental education in the State's higher education
institutions. Funding will be available to hire an outside
consultant to examine these topics. (S.L. 2011-145, Sec. 7.1)
Education Reform Studies
7 ($2,725,029) R ($2,729,677) R
Eliminates funding for four End of Course tests eliminated by
S.L. 2011-8 and not required by federal law. Those tests are
United States History, Civics and Economics, Algebra II, and
Physical Science. The remaining testing funds are then
reduced a further 10%, leaving $8.8 million available for
testing in each year of the biennium. (H.B. 48/S.B. 114)
Testing
8 ($13,290,683) R ($13,290,683) R
Eliminates funding for the Dropout Prevention Grant program.
Dropout Prevention Grants
9 ($10,000,000) R ($10,000,000) R
Eliminates funding for the Student Diagnostics pilot program.
Student Diagnostics
10 ($4,875,000) R ($4,875,000) R
Eliminates funding for Learn & Earn Online courses provided
through the UNC system.
Learn & Earn Online
11 ($59,497,471) R ($60,054,792) R
Reduces this allotment, which supports clerical, janitorial,
substitute teachers, and other personnel, by 15% in both
years of the biennium. $337.1 million will remain in this
allotment in FY 2011-12 and $340.3 million will remain in FY
2012-13. (H.B. 584/S.B. 500)
Noninstructional Support Personnel
($13,000,000)
($79,166,861)
($13,000,000)
($76,500,000)
12 R
NR
R
Reduces funding for textbooks. $23.4 million will remain in NR
this allotment in FY 2011-12 and $27.2 million will remain
available in FY 2012-13. (H.B. 584/S.B. 500)
Textbooks
($3,450,000)
($38,520,358)
($3,450,000)
($38,417,147)
13 R
NR
R
Reduces funding for this allotment by approximately 46%. NR
$49.3 million will remain in this allotment in FY 2011-12 and
$50.2 million will remain available in FY 2012-13.
Instructional Supplies
Public Education Page F - 2
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
14 ($17,211,294) R ($17,254,494) R
Reduces the allotment to LEAs for the salaries and benefits
of central office staff by 16%. This staff includes, but is
not limited to, superintendents, associate and assistant
superintendents, finance officers, athletic trainers, and
transportation directors. $90.4 million will remain to
support these local staff in FY 2011-12 and $90.5 million
will remain available in FY 2012-13. (H.B. 584/S.B. 500)
Central Office Administration
15 ($22,193,080) R ($22,403,290) R
Reduces the funding for assistant principal months of
employment by approximately 18.8%. This reduction does not
reduce any guaranteed principal positions. $304.4 million
will remain in this allotment in FY 2011-12 and $306.6
million will remain available in FY 2012-13. (H.B. 584/S.B.
500)
School Building Administration
16 ($7,700,000) R ($7,700,000) R
Reduces funding for this allotment based on a modification of
the allowable conversion of assistant principal and principal
months of employment. Currently, LEAs are allowed to “cash-out”
their allotted SBA months of employment at the State-average
salary and benefits, and then use the money for other
purposes. This section would continue to allow conversions,
but only at the equivalent amount for a beginning Principal
III for converted principal positions, and the equivalent
amount for a beginning assistant principal for cashed-out
assistant principal positions. (S.L. 2011-145, Sec. 7.14)
School Building Administration Position Conversion
17 ($22,934,278) R ($23,149,479) R
Reduces this allotment, which supports guidance counselors,
social workers, media specialists, and other miscellaneous
personnel, by 5%. $435.8 million will remain in this
allotment in FY 2011-12 and $439.9 million will remain
available in FY 2012-13. (H.B. 584/S.B. 500)
Instructional Support
18 ($10,340,115) R ($10,442,266) R
Reduces funding for the allotment, which supports the
salaries of transportation personnel as well as the
maintenance of yellow buses by 2.5%. $403.3 million will
remain in this allotment in FY 2011-12 and $407.2 million
will remain available in FY 2012-13. (H.B. 584/S.B. 500)
Transportation
($20,000,000)
19
Provides full funding for school bus replacement in FY 2011- NR
12, and reduces the funding on a nonrecurring basis in FY
2012-13. The Department of Public Instruction shall utilize
these funds only to support financing payments on previously
purchased buses or for finance payments for new replacement
buses purchased over the biennium.
School Bus Replacement
Public Education Page F - 3
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
20 ($9,214,190) R ($9,214,190) R
Eliminates funding for this allotment. School districts may
use State and other funding sources to provide mentoring
services for beginning teachers.
Mentoring
21 ($10,000,000) R ($10,000,000) R
Eliminates General Fund support for this purpose. An
additional $18.0 million for the Fund will remain available
from the proceeds of the Civil Penalty and Forfeiture Fund.
(H.B. 584/S.B. 500)
School Technology Fund
22 ($12,565,063) R ($12,626,995) R
Eliminates funding for this allotment. School districts may
use State and other funding sources to support professional
development. (H.B. 584/S.B. 500)
Staff Development
23 ($2,101,213) R ($2,101,213) R
Reduces funding for the Uniform Education Reporting System
(UERS) and the related NC WISE system as it moves into an
operations and maintenance phase. This adjustment will leave
$10.3 million in annual appropriations available for UERS
operations. (H.B. 584/S.B. 500; S.L. 2011-145, Sec. 7.7)
Uniform Education Reporting System (UERS)
24 ($16,000,000) R ($16,000,000) R
Reduces More at Four General Fund support by $16 million, or
approximately 20%.
More at Four Funding Reduction
25 ($65,011,651) R ($65,011,651) R
Transfers the remaining $65 million in General Fund
appropriations to the Department of Health and Human
Service's Division of Child Development (DCD) to provide a
dedicated high-quality pre-K program within its Child Care
Subsidy program. In addition, Section 5.4 of the budget bill
redirects $63 million in Lottery funding for the program to
DCD. A related provision in Section 10.7 of the bill details
the particulars of the transfer. (S.L. 2011-145, Secs. 5.4
and 10.7)
More at Four Transfer
26 $3,700,000 R $3,700,000 R
Establishes a single State-funded liability insurance policy
for all North Carolina public schools employees. The State
Board of Education shall use funding provided to establish
this policy with the North Carolina Department of Public
Instruction serving as the master policy holder.
Liability Insurance for Public School Personnel
27 ($200,000) R ($200,000) R
Eliminates planning funding for these two schools which will
open in the 2011-12 school year.
JOBS Commission Schools
Public Education Page F - 4
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
28 $200,000 R $200,000 R
Transfers planning funding for the two schools recommended by
the JOBS Commission. These schools shall be eligible for
Learn and Earn Early College allotment funding.
Learn and Earn Early College High Schools
C. Pass-through Funds
29 ($340,000) R ($340,000) R
Eliminates State support for this program. (H.B. 584/S.B. 500)
Teacher Cadet
30 ($127,500) R ($127,500) R
Eliminates State support for this program. (H.B. 584/S.B. 500)
Science Olympiad
31 ($50,000) R ($50,000) R
Eliminates State support for this program. (H.B. 584/S.B. 500)
Kids Voting
32 ($100,000) R ($100,000) R
Eliminates State support for this program. (H.B. 584/S.B. 500)
NC Science, Math and Technical Education Center
$250,000
33
Provides funds for the phase one construction of the National NR
Guard Tarheel ChalleNGe Academy site in Badin, NC.
Tarheel ChalleNGe Academy
34 ($210,000) R ($3,475,000) R
Reduces the General Fund appropriation for the Teaching
Fellows Fund. This reduction reflects a decrease in funds
available for administrative costs associated with the
Teaching Fellows Program in FY 2011-12 and FY 2012-13.
Additionally, funds are reduced in FY 2012-13 to phase out
support for this program. It is the intent of the General
Assembly to support its obligations to the 2011-12 class of
Teaching Fellows and prior classes until the State's
scholarship commitment is completed. (S.L. 2011-145, Sec.
7.24)
Teaching Fellows Fund
D. Department of Public Instruction
($457,690) ($457,690)
-5.50 -5.50
35 R R
Eliminates 5.5 State-funded positions working on curriculum
issues. Of these, 3.5 State-funded positions are eliminated
from the Curriculum, Instruction & Technology section, and
2.0 State-funded positions are eliminated from the Career and
Technology Education (CTE) section.
DPI Curriculum Division
Public Education Page F - 5
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
($2,712,988) ($2,712,988)
-30.00 -30.00
36 R R
Eliminates 30.0 State-funded positions from DPI's Technology
Services section. 102.85 positions (70.72 State-funded) will
remain in this section.
DPI Technology Services
($246,586) ($246,586)
-4.00 -4.00
37 R R
Eliminates 4.0 State-funded positions in the Communications
section. 15.0 positions (10.8 State-funded) will remain in
this section.
DPI Communications
($139,050) ($139,050)
-1.00 -1.00
38 R R
Eliminates the State-funded position at DPI supporting Learn
& Earn Online.
Learn and Earn Administration
($206,063) ($206,063)
-2.00 -2.00
39 R R
Eliminates funding for the 2.0 positions that DPI provides to
support the NC Education Cabinet housed in the Office of the
Governor.
Governor's Education Cabinet
($235,646) ($235,646)
-2.00 -2.00
40 R R
Eliminates the State funding and positions supporting the NC
Professional Teaching Standards Commission.
NC Professional Teaching Standards Commission
($4,762,874) ($4,762,874)
-14.00 -14.00
41 R R
Eliminates State funding for the Teacher Academy, a provider
of professional development services for teachers. (H.B.
584/S.B. 500)
Teacher Academy
($3,000,000) ($3,000,000)
-40.00 -40.00
42 R R
Reduces State support for the operations of this teacher
professional development provider. (H.B. 584/S.B. 500)
North Carolina Center for the Advancement of Teaching
(NCCAT)
43 ($650,000) R ($650,000) R
Eliminates the $350,000 annual transfer from Connectivity to
support the e-Learning Portal. Also eliminates the $300,000
annual transfer from Connectivity to support the evaluation
of the Connectivity initiative. (S.L. 2011-145, Sec. 7.10)
Connectivity
44 ($849,588) R
Eliminates State funding for the Governor's Schools. A
related provision in Section 7.9 provides the State Board
with the discretion to make the program receipt-supported
beginning with the summer 2012 program. Funding remains
available to provide the program in summer 2011. (S.L. 2011-
145, Sec. 7.9)
Governor's Schools
Public Education Page F - 6
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
($1,691,445) ($7,191,445)
-1.00 -1.00
45 R R
Eliminates State funding for the superintendent of
residential schools position within DPI and reduces the
operating budget for Residential Schools for the Deaf and
Blind by approximately 5%. For FY 2012-13, DPI must close
one of the three residential schools. A related provision,
Section 7.25, directs DPI to report to the Joint Education
Oversight Committee of the General Assembly the school slated
for closure and the Department's plan for consolidating the
programs with those at the two remaining schools. (H.B.
584/S.B. 500; S.L. 2011-145, Sec. 7.25)
Residential Schools for the Deaf and Blind
($341,814,675)
($117,237,219)
($344,504,704)
($134,917,147)
-99.50 -99.50
Total Legislative Changes
Total Position Changes
Revised Budget $7,464,492,057 $7,444,122,100
R
NR
R
NR
Public Education Page F - 7
Special Provisions
Department: Public Education
2011 Session: HB 22
Amends S.L. 2011-145, Sec. 7.1A, Appropriations Act of 2011, to ensure that community colleges
shall generate budget FTE upon the commencement of the program effective date, and makes
conforming changes to college transfer certificates language to ensure consistency across all
General Statute references.
Section: 13
Title: TECHNICAL CHANGE: CAREER AND COLLEGE PROMISE
Summary
Amends S.L. 2011-145, Sec. 7.13, Appropriations Act of 2011, to repeal Subsections (a) through
(u) and Subsection (ee), restoring School Improvement Plans and personal education plans for
students who have been placed at risk of academic failure.
Section: 14
Title: BUDGET CHANGE: ELIMINATION OF REPORTING REQUIREMENTS
Summary
Rewrites S.L. 2011-145, Sec. 7.15, Appropriations Act of 2011, to require that, out of funds
provided to DPI, $90,500 be transferred to the Agricultural Education and FFA Program housed in
the Department of Agricultural and Extension Education at North Carolina State University.
Section: 15
Title: BUDGET CHANGE: TRANSFER OF FEDERAL AGRICULTURAL EDUCATION FUNDS
Summary
Amends S.L. 2011-145, Sec. 7.23, Appropriations Act of 2011, clarifying that the LEA RIF policy
applies to certified school employees.
Section: 16
Title: TECHNICAL CHANGE: PERFORMANCE-BASED REDUCTIONS IN FORCE
Summary
Amends S.L. 2011-145, Appropriations Act of 2011, creating two new sections repealing statutes
related to two programs eliminated by S.L. 2011-145, Appropriations Act of 2011.
Section 7.31, TEACHER ACADEMY STATUTES REPEALED, repeals G.S. 115C-296.4, G.S.
120-123.(63), and G.S. 126-5.(c1).(26).
Section 7.32, PROFESSIONAL TEACHING STANDARDS COMMISSION STATUTES
REPEALED repeals G.S. 115C-295.1 and G.S. 115C-295.2. (S.B. 593)
Section: 17
Title: TECHNICAL CHANGE: REPEAL STATUTES OF ELIMINATED PROGRAMS
Summary
Public Education Page F - 8
Department: Public Education
2011 Session: HB 200
Requires the Joint Education Oversight Committee to study (i) literacy and (ii) ways to reduce the
need for remedial or developmental education in the State's higher education institutions. The
Committee shall report to the 2012 Regular Session of the 2011 General Assembly with a
comprehensive plan, including implementation dates and schedules. The Committee may use
appropriated funds to hire one or more external consultants to complete these studies.
Section: 7.1
Title: EDUCATION REFORM IN NORTH CAROLINA
Summary
Subsections (a) and (b) establish the Career and College Promise program and consolidate
previously existing high school transition programs. All previously existing high school transition
programs, including Huskins, Concurrent Enrollment, Cooperative and Innovative High Schools,
Learn and Earn, and Learn and Earn Online are consolidated and replaced by Career and College
Promise.
The Career and College Promise program creates three pathways through which high school
students can access and receive credit for college coursework:
1) Cooperative innovative high school programs -- high schools, commonly referred to as Learn &
Earn schools, that are physically located at or partnered with a higher education institution.
2) Academic transition pathways for qualified junior and senior high school students leading to a
career technical education certificate or diploma.
3) College transfer certificates requiring the successful completion of 30 semester credit hours
transfer courses for junior and senior high school students.
Subsection (d) requires the North Carolina Community College System and the Department of
Public Instruction (DPI) to jointly develop and implement a program accountability plan to evaluate
the program.
Subsection (e) establishes that community colleges shall generate budget FTE for instruction
provided through Career and College Promise.
Subsections (f) through (h) make conforming changes to the General Statutes.
Subsection (i) requires the North Carolina Community College System, University of North
Carolina General Administration, and the North Carolina Independent Colleges and Universities to
develop a plan for articulation of a college transfer certificate.
Subsection (j) modifies Part 9 of Article 16 of Chapter 115C of the General Statutes to redefine
Cooperative Innovative High School Programs. (H.B. 584/S.B. 500)
(S.L. 2011-391, Sec. 13, 2011 Budget Technical Corrections, amends this provision to ensure
that community colleges shall generate budget FTE upon the commencement of the program
effective date, and makes conforming changes to the college transfer certificates language to
ensure consistency across all General Statute references.)
(S.L. 2011-419, Sec. 2, Breweries/Comm. Coll/Supp. Fund. Clarified, amends G.S. 115D-20(4),
as amended by Sec. 7.1A(h), to permit high school students 16 and older to take certain noncredit
courses, subject to the rules of the State Board of Community Colleges.)
Section: 7.1A
Title: CAREER AND COLLEGE PROMISE
Summary
Public Education Page F - 9
Establishes the General Assembly's intent to reduce class size in grades 1 through 3 to a class
size allotment not exceeding 1:15, as funds become available.
Section: 7.1B
Title: CLASS SIZE REDUCTION FOR GRADES 1-3
Summary
Provides $3,585.88 per child for children with disabilities to each local education agency (LEA) for
the lesser of (i) all children who are identified as children with disabilities, or (ii) 12.5% of the
LEA's average daily membership (ADM). (H.B. 584/S.B. 500)
Section: 7.2
Title: FUNDS FOR CHILDREN WITH DISABILITIES
Summary
Provides $1,192.90 per child for academically and intellectually gifted children for a maximum of
4% of each LEA's allotted ADM for the 2011-12 school year. (H.B. 584/S.B. 500)
Section: 7.3
Title: FUNDS FOR ACADEMICALLY GIFTED CHILDREN
Summary
Continues the formula for determining eligibility for and distribution of funds appropriated in FY
2011-12 and FY 2012-13 for supplemental funding for public schools in low-wealth counties.
(H.B. 584/S.B. 500)
Section: 7.4
Title: USE OF SUPPLEMENTAL FUNDING IN LOW-WEALTH COUNTIES
Summary
Permits the State Board of Education to expend up to $500,000 each year for FY 2011-12 and FY
2012-13 from unexpended funds for certified employees' salaries to pay expenses related to
litigation. (H.B. 584/S.B. 500)
Section: 7.5
Title: LITIGATION RESERVE FUNDS
Summary
Directs that funds appropriated for UERS shall not revert at the end of FY 2010-11. (H.B.
584/S.B. 500)
Section: 7.6
Title: UNIFORM EDUCATION REPORTING SYSTEM (UERS) FUNDS
Summary
Directs that funds appropriated for the Focused Education Reform Pilot Program shall not revert
at the end of FY 2010-11. (H.B. 584/S.B. 500)
Section: 7.7
Title: FOCUSED EDUCATION REFORM PROGRAM FUNDS DO NOT REVERT
Summary
Public Education Page F - 10
Continues the formula for the DSSF allotment. The provision allots the dollar equivalent of a
teaching position (including benefits) based on the eligible DSSF population as defined by the
State Board of Education and the difference between an allotment ratio of 1:21 and a lower
proposed ratio (depending on an LEA's wealth, per the Low Wealth formula). Additionally, the
provision holds the original 16 pilot LEAs harmless; these LEAs may not receive less than their
FY 2006-07 allotment. Finally, the provision removes the requirement that LEAs submit a plan for
DSSF expenditures.
Section: 7.8
Title: DISADVANTAGED STUDENT SUPPLEMENTAL FUNDING (DSSF)
Summary
Amends G.S. 115C-12(36) to allow the State Board of Education to implement a tuition charge for
students attending the Governor's School of North Carolina to make the program fully receipt-supported.
Section: 7.9
Title: TUITION CHARGE FOR GOVERNOR'S SCHOOL
Summary
Subsection (a) amends Section 7.9.(b) of S.L. 2010-31, Appropriations Act of 2010, to stop the
transfer of funds from the School Connectivity Initiative to the Office of the Governor for the
education E-learning portal after FY 2010-11.
Subsection (b) amends Section 7.6.(a) of S.L. 2008-107, Modify Appropriations Act of 2007, as
modified by Section 7.12.(b) of S.L. 2009-451, Appropriations Act of 2009, to end the transfer of
funds from the School Connectivity Initiative to the Friday Institute at North Carolina State
University after June 30, 2011.
Section: 7.10
Title: SCHOOL CONNECTIVITY FUNDS
Summary
Continues the formula for determining eligibility for and distribution of funds appropriated in FY
2011-12 and FY 2012-13 for supplemental funding for public schools in small counties (as
determined by ADM). (H.B. 584/S.B. 500)
(S.L. 2011-419, Sec. 3, Breweries/Comm. Coll/Supp. Fund. Clarified, authorizes the State Board
of Education to provide Small School System Supplemental Funding in FY 2011-12 to Cherokee
County. This amount may not exceed Cherokee County's FY 2010-11 allotment.)
Section: 7.12
Title: SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING
Summary
Public Education Page F - 11
Subsections (a) through (v) repeal the School Improvement Plan and make conforming
modifications and repeals to various sections within G.S. 115C and G.S. 143B.
Subsections (w) through (z) repeal the Local Safe School Plan and make conforming
modifications and repeals to various sections within G.S. 115C.
Subsections (aa) through (cc) repeal the Local School System Technology Plan and make
conforming modifications and repeals to various sections within G.S. 115C.
Subsection (dd) repeals Section 7.61.(b) of S.L. 2005-276, 2005 Appropriations Act, to eliminate
the annual reporting requirement related to LEA expenditure of the At-Risk allotment.
Subsection (ee) repeals G.S. 115C-105.41 to eliminate the requirement that LEAs prepare
personal education plans for students who have been placed at risk of academic failure. (H.B.
829)
(S.L. 2011-391, Sec. 14, 2011 Budget Technical Corrections, repeals subsections (a) through (u)
and subsection (ee) of Section 7.13 of S.L. 2011-145, Appropriations Act of 2011, to restore
School Improvement Plans and personal education plans for students who have been placed at
risk of academic failure.)
Section: 7.13
Title: ELIMINATION OF REPORTING REQUIREMENTS
Summary
Subsection (a) establishes that, for schools created after July 1, 2011, a school must have at least
100 students in ADM to be entitled to 12 months of employment for a principal. Schools created
before July 1, 2011 can have 100 students or 7 teachers in order to receive 12 months of
employment for a principal.
Subsection (b) establishes that if LEAs choose to transfer funds from the school building
administration allotment for any other purpose, the salary transferred will be based on the first
step of the principal or assistant principal salary schedule, as appropriate.
Section: 7.14
Title: SCHOOL BUILDING ADMINISTRATION
Summary
Requires the State Board of Education to transfer a prorated share of funds from all Career and
Technical Education funds available for State-level usage to the Agricultural Education and FFA
Program housed in the Department of Agricultural and Extension Education at North Carolina
State University.
(S.L. 2011-391, Sec. 15, 2011 Budget Technical Corrections, rewrites Section 7.15 of S.L. 2011-
145, Appropriations Act of 2011, to require that, out of funds provided to DPI, $90,500 be
transferred to the Agricultural Education and FFA Program housed in the Department of
Agricultural and Extension Education at North Carolina State University.)
Section: 7.15
Title: TRANSFER OF FEDERAL AGRICULTURAL FUNDS
Summary
Public Education Page F - 12
Extends the school calendar pilot program in Wilkes County Schools, allowing Wilkes County
Schools to operate a calendar with either 185 instructional days or 1,025 hours of instruction for a
third consecutive school year in FY 2011-12.
The provision adds Montgomery County Schools and Stanly County schools to the school
calendar pilot program, providing these LEAs the flexibility to operate a calendar with either 185
instructional days or 1,025 hours of instruction in FY 2011-12.
The State Board of Education shall report on this program to the Joint Legislative Education
Oversight Committee by March 15, 2012.
Subsection (b) allows the State Board of Education to grant a pilot school system a waiver to use
up to five instructional days or an equivalent number of instructional hours as teacher workdays if
the State Board of Education finds that such a waiver will enhance student performance. (H.B.
553)
Section: 7.17
Title: SCHOOL CALENDAR PILOT PROGRAM
Summary
Subsection (a) allows DPI to reorganize only after consulting with the Office of State Budget and
Management (OSBM) and the Fiscal Research Division, and reporting to the Joint Legislative
Commission on Governmental Operations.
Subsection (b) prohibits DPI from increasing the number of State-funded positions in any DPI
divisions identified for reductions.
Subsection (c) prohibits DPI from reducing funding or positions related to the Positive Behavioral
Support program.
Section: 7.19
Title: BUDGET REDUCTIONS/DEPARTMENT OF PUBLIC INSTRUCTION
Summary
Outlines the requirements for identifying and reporting the allotments reduced pursuant to the
"LEA Reduction" made in item #3 on page F-1 of the Money Report for S.L. 2011-381. (H.B.
584/S.B. 500)
Section: 7.20
Title: LEA BUDGET ADJUSTMENT
Summary
Subsection (a) authorizes the State Board of Education to extend emergency rules granting
maximum flexibility to LEAs regarding the expenditure of State funds. The rules shall not permit
(i) the transfer of funds into central office administration, (ii) the transfer of funds from the
classroom teachers allotment to any allotment other than teacher assistants allotment, or (iii) the
transfer of funds from the teacher assistants allotment to any allotment other than the classroom
teachers allotment.
Subsection (b) encourages LEAs to make every effort to reduce spending with the goal of
protecting classroom services. For FY 2011-12 and FY 2012-13, required teacher-to-student
ratios are to remain unchanged in grades K-3, but LEAs will have maximum flexibility in their use
of allotted teacher positions in grades 4-12. (H.B. 584/S.B. 500)
Section: 7.21
Title: LEA BUDGETARY FLEXIBILITY
Summary
Public Education Page F - 13
Subsection (a) establishes that the North Carolina Virtual Public School (NCVPS) program reports
to the State Board of Education.
Subsection (b) requires the Director of NCVPS to ensure that students residing in rural and low-wealth
LEAs have access to e-learning opportunities to expand available educational
opportunities.
Subsection (c) repeals Section 7.4 of S.L. 2010-31, Appropriations Act of 2010, which had
previously established a funding formula for NCVPS for FY 2010-11.
Subsection (d) implements a new allotment formula for NCVPS. The new formula will transfer
funds from LEAs' and charter schools' funding for classroom teachers based on each LEA and
charter school's projected enrollment in NCVPS. An amount equal to 75% of the projected cost
will be transferred to NCVPS at the beginning of the school year. No later than February 21 of
each year, the State Board of Education shall transfer remaining amounts, if necessary, based on
actual NCVPS enrollment.
Subsection (e) requires the State Board of Education to consider recommendations from the
eLearning Commission and NCVPS Advisory Board when establishing the per course costs of
NCVPS.
Subsection (f) requires the State Board of Education to establish a separate per student tuition for
out-of-state, home-schooled, and private school students.
Subsection (g) directs NCVPS to develop a plan to generate revenue from the sale of courses to
out-of-state educational entities. NCVPS shall submit its report to the State Board of Education
by September 15, 2011.
Subsection (h) requires the Director of NCVPS to submit an annual report to the State Board of
Education no later than December 1 of each year.
Subsection (i) requires the State Board of Education to reduce each LEA or charter school's
allotments on the basis of ADM in grades 6-12 to provide up to $2,866,923 for the State-level
operations and administration of NCVPS for FY 2011-12. This amount will be adjusted annually
based on the percentage change in NCVPS enrollment.
Subsection (j) requires the State Board of Education to reduce each LEA or charter school's
allotments on the basis of ADM in grades 6-12 to provide $2,000,000 in order to create a non-reverting
NCVPS enrollment reserve. The NCVPS enrollment reserve will be used to cover
instructional costs of LEAs or charter schools that exceed projected NCVPS enrollment. The
State Board of Education shall make adjustments to LEA and charter school allotments in future
years to ensure that the reserve has $2,000,000.
Subsection (k) limits the State Board of Education's available resources for NCVPS instructional
costs to the funds generated from the funding formula, and funds available in the NCVPS
enrollment reserve.
Subsection (l) amends G.S. 66-58.(c) to provide NCVPS an exemption to the Umstead Act,
allowing NCVPS to sell courses. (H.B. 584/S.B. 500, H.B. 856)
Section: 7.22
Title: NORTH CAROLINA VIRTUAL PUBLIC SCHOOLS
Summary
Public Education Page F - 14
Subsection (a) requires LEAs to develop a Reduction in Force (RIF) policy that considers first the
structural and organizational needs of the LEA to determine which types of positions to eliminate.
After determining which employees in similar positions will be subject to a RIF, the LEA must
consider work performance.
Subsection (b) amends G.S. 115C-325(e)(2) to delete requirements that career status employees
be given priority placement on a re-hire list.
(S.L. 2011-391, Sec. 16, 2011 Budget Technical Corrections, amends this provision to clarify that
the LEA RIF policy applies to certified school employees.)
Section: 7.23
Title: PERFORMANCE-BASED REDUCTIONS IN FORCE
Summary
Modifies G.S. 115C-363.23A(f) to reduce the amount available to the Public School Forum for
administering the Teaching Fellows Program from $810,000 per year to $600,000 per year.
Section: 7.24
Title: TEACHING FELLOWS ADMINISTRATIVE REDUCTION
Summary
Subsection (a) requires DPI to report to the Joint Legislative Education Oversight Committee no
later than January 15, 2012 with a plan for closing a residential school and consolidating its
programs with those at the two remaining schools. The closure and consolidation must be
completed by July 1, 2012.
Subsection (b) requires DPI to maintain the summer school programing and residential and
instructional schedules for the residential schools that were in effect before February 8, 2010,
unless changed by the General Assembly.
Subsection (c) allows DPI to create a principal position at each residential school out of funds
available for the residential schools.
Subsection (d) eliminates the position of the superintendent for the residential schools and
establishes that one of the directors of the residential schools will serve as superintendent.
Subsection (e) amends G.S. 115C-325(p) to ensure that certified personnel at the residential
schools will not lose their career status as a result of the transfer of the residential schools to DPI.
Section: 7.25
Title: RESIDENTIAL SCHOOLS
Summary
Allows DPI to realign receipts among the following General Fund purpose codes to correctly align
the certified budget with the appropriate purpose or programs.
Section: 7.27
Title: DEPARTMENT OF PUBLIC INSTRUCTION RECEIPTS
Summary
Public Education Page F - 15
Subsection (a) amends G.S. 115C-84.2 to define the school calendar as having at least 185 days
and 1,025 hours of instruction. The five protected teacher workdays previously established in
G.S. 115C-84.2(a)(4) are eliminated. The subsection further permits the State Board of
Education to grant LEAs waivers on meeting the 185 instructional day requirement if the State
Board of Education finds that it will enhance student performance to do so.
Subsection (b) amends G.S. 115C-238.29F(d)(1) to make conforming changes to the required
instructional program offered by charter schools.
Section: 7.29
Title: INCREASE NUMBER OF INSTRUCTIONAL DAYS
Summary
Subsection (a) amends G.S. 115C-174.11 to require that the State Board of Education continue
its participation in the development of the Common Core State Standards and require the
administration of the ACT test for all students in the eleventh grade, to the extent funds are made
available.
Subsection (b) adds two new Parts to Article 10A of Chapter 115C of the General Statutes (Part 4
and Part 5) to require the State Board of Education, to the extent funds are made available, (i) to
administer diagnostic tests in the eighth and tenth grades that align with the ACT, and (ii) to make
available the appropriate WorkKeys tests for all students who complete the second level of
vocational/career courses. (H.B. 766, S.B. 479)
Section: 7.30
Title: TESTING PROGRAM
Summary
Public Education Page F - 16
Community Colleges
Adjusted Continuation Budget
Legislative Changes
$1,102,475,214 $1,102,475,214
GENERAL FUND
2011 Annotated Conference Committee Report
FY 11-12 FY 12-13
A. Technical Adjustments
46 $34,140,158 R $47,699,747 R
Provides funds to fully fund enrollment growth, including
enrollment growth for equipment funding, in both years of the
biennium.
According to the FY 2010-11 spring enrollment census,
enrollment has increased by 3.3% (8,081 full-time-equivalent
students or FTE) above the FY 2010-11 budgeted enrollment of
243,854. Curriculum enrollment has increased by 6,928 FTE
(3.6%), continuing education enrollment has increased by
1,396 FTE (4.9%), and basic skills enrollment has decreased
by 243 FTE (-1.1%). Total equipment funding for FY 2011-12 is
$5,643,030, which maintains the amount per equipment FTE at
the FY 2009-10 level. Total requirements for the enrollment
growth increase are $45,058,958, of which $10,918,800 is
funded from receipts.
Estimated enrollment growth during the FY 2011-12 year is
also fully funded with an additional appropriation of
$13,559,589, $584,775 of which is for equipment. This
adjustment is based on estimated enrollment growth of 1.5%
(3,672 FTE). Total requirements for the enrollment growth
are $18,478,365, of which $4,918,776 is funded from receipts.
(H.B. 584/S.B. 500)
Enrollment Growth
47 ($264,833) R ($264,833) R
Transfers categorical funding for the Hickory Metro Higher
Education Center at Catawba Valley Community College to the
UNC System budget. (H.B. 584/S.B. 500)
Hickory Metro Higher Education Center
B. State Aid Adjustments
48 ($50,777,984) R ($58,544,165) R
Reduces funds in the State Aid budget. The State Board of
Community Colleges shall distribute the flexibility
reduction, accounting for the unique needs of each college.
Each college reduced shall have the flexibility to adjust its
budget to implement this reduction, but shall not impact
those activities directly involved in retraining displaced
workers. (H.B. 584/S.B. 500)
Management Flexibility Reduction
Community Colleges Page F - 17
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
49 ($47,664,650) R ($60,393,549) R
Increases curriculum tuition by $10 per credit hour in FY
2011-12 and an additional $2.50 per credit hour in FY 2012-
13, and makes a corresponding General Fund reduction in
anticipation of increased tuition receipts.
For FY 2011-12, resident tuition will increase from $56.50 to
$66.50 for residents and from $248.50 to $258.50 for
nonresidents. Tuition for full-time resident students will
increase by a maximum of $320 per year, from $1,808 to
$2,128.
For FY 2012-13, resident tuition will increase from $66.50 to
$69 for residents and from $258.50 to $261 for nonresidents.
Tuition for full-time resident students will increase by a
maximum of an additional $80 per year, from $2,128 to $2,208.
(H.B. 584/S.B. 500)
Curriculum Tuition
50 ($664,509) R
Increases continuing education fees by $5 per course,
beginning in FY 2012-13, and takes a corresponding General
Fund reduction in anticipation of increased tuition
receipts. The new fees will be as follows:
Classes 1-24 hours - $70,
Classes 25-50 hours - $125,
Classes 51+ hours - $180.
Continuing Education Fee
51 ($22,670,636) R ($22,670,636) R
Eliminates categorical funding for Health Sciences
($16,842,300), Technical Education ($5,500,000), and Special
High Cost Programs allotment for Heavy Equipment ($328,336),
and restructures the curriculum and continuing education
funding formulas to provide weighted funding based on the
type of instruction, as directed in Section 8.3.
Curriculum courses in high-cost areas such as healthcare,
technical education, and lab-based science courses shall be
weighted more heavily than other curriculum courses.
Continuing education courses that lead to a third-party
credential or certification and courses providing an industry-designed
curriculum shall be weighted more heavily than other
continuing education courses. (H.B. 584/S.B. 500; S.L. 2011-
145, Sec. 8.3)
Funding Formula
52 ($10,000,000) R ($10,000,000) R
Reduces funding for basic skills education by 12.4%. Total
funding remaining for the program will be $86,246,787, with
$70,483,463 in State funding and $15,763,628 in federal
funding.
Basic Skills
Community Colleges Page F - 18
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
53 ($8,548,090) R ($8,548,090) R
Eliminates funding for one of the 5.5 general institutional
positions in the institutional and academic support
enrollment allotment funding formula for community colleges.
Total funding remaining in this allotment will be $452.5
million. (H.B. 584/S.B. 500)
Institutional and Academic Support
($7,600,000)
54
Reduces the Customized Training budget on a one-time basis. NR
Total recurring funding for the program is $12,457,121;
however, per G.S. 115D-5.1(f2), unexpended funds for the
program do not revert and are instead carried forward to the
next year. After this reduction, the total amount available
for expenditure in the biennium is expected to be
$31,710,340, or $15,855,170 per year.
Of these funds, up to $75,000 may be used to support
curriculum development, materials, and training for Small
Business Centers.
Customized Training
55 ($290,228) R ($290,228) R
Reduces funds for BioNetwork grants and centers by 6.6%.
$205,582 will be reduced from BioNetwork centers (5%
reduction) and $84,646 from grants to colleges (30%
reduction). Total funding remaining for the program will be
$4,106,056.
BioNetwork
56 ($90,000) R ($90,000) R
Reduces funding for the Minority Male Mentoring program by
10%. Total funding remaining for the program will be
$810,000.
Minority Male Mentoring
57 ($125,000) R ($125,000) R
Reduces the categorical allotment to the NC Military Business
Center at Fayetteville Technical Community College by 10%.
Total funding remaining for the program will be $1,125,000.
NC Military Business Center
58 ($91,251) R ($91,251) R
Reduces the categorical allotment to the Textile Technology
Center at Gaston College by 10%. Total funding remaining for
this program will be $821,258. (H.B. 584/S.B. 500)
Textile Technology Center
59 ($57,212) R ($57,212) R
Reduces the categorical allotment for the Manufacturing
Solutions Center at Catawba Valley Community College by 10%.
Total funding remaining for this program will be $514,904.
(H.B. 584/S.B. 500)
Manufacturing Solutions Center
Community Colleges Page F - 19
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
60 ($582,383) R ($582,383) R
Eliminates the categorical allotment for the Regional High
Technology Center at Haywood Community College. The college
will continue to receive regular FTE formula funding for the
enrollment at the Center. (H.B. 584/S.B. 500)
Haywood Regional High Technology Center
61 ($250,000) R ($250,000) R
Eliminates pass-through funding for NC Rural Entrepreneurship
through Action Learning (NC REAL). (H.B. 584/S.B. 500)
NC REAL
C. Student Aid Adjustments
62
Reverts the existing fund balance of $5.7 million to the
Escheats Fund and increases annual appropriations by $2.5
million for a total budget of $16.5 million per year.
The funds for this item are shown in the Community College
System - Trust - General Fund (Budget Code: 66801) section of
this report. (S.L. 2011-145, Sec. 9.8)
NC Community College Grant Program
63 ($444,000) R ($444,000) R
Eliminates tuition waivers for community college faculty and
staff, NC Civil Air Patrol, and individuals engaged in civil
preparedness activities. Colleges are permitted to use State
and local funds to pay for tuition and registration fees for
one course per semester for full-time faculty and staff.
(S.L. 2011-145, Sec. 8.12)
Tuition Waivers
D. Community Colleges System Office Adjustments
($1,265,975) ($1,265,975)
-19.00 -19.00
64 R R
Eliminates 19 positions in the Community Colleges System
Office, including 9 vacant, 2 expected-to-be-vacant, and 8
filled positions. The positions are as follows:
Executive Division - 3 vacant and 2 filled positions;
IT & Workforce Development Division - 3 vacant, 2 expected-to-be-
vacant, and 4 filled positions;
Business and Finance Division - 1 vacant and 1 filled
position; and
Academic and Student Services Division - 2 vacant and 1
filled positions. (H.B. 584/S.B. 500)
System Office Positions
65 ($265,417) R ($265,417) R
Reduces operating funds for travel, training, information
technology, and other expenses. (H.B. 584/S.B. 500)
System Office Operating Funds
Community Colleges Page F - 20
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
66 ($97,000) R ($97,000) R
Reduces the budget of the 2+2 E-learning initiative by 13%.
Total funding remaining for the program will be $653,000.
(H.B. 584/S.B. 500)
2+2 E-learning Initiative
($322,180) ($322,180)
-3.50 -3.50
67 R R
Shifts 3.5 positions from General Fund appropriations to
receipts. Positions and receipt source are as follows:
Accountant (2 positions) - indirect cost receipts;
Education Program Director (1 position) - Proprietary School
receipts;
Education Consultant II (.25 position) and Education Program
Director II (.25 position) - federal receipts. (H.B. 584/S.B.
500)
Receipt-supported Positions
($208,533) ($208,533)
-2.50 -2.50
68 R R
Shifts the General Education Development (GED) program
entirely to receipt support. Section 31.2 permits the State
Board of Community Colleges to increase the fee assessed to
individuals taking the GED exam. The current fee is $7.50.
The fees will be used to support the costs of administering
the tests, including scoring the tests and printing the GED
certificates. A total of 2.5 positions will be shifted from
appropriation to receipt support, including 2 GED & Adult
High School Tech positions, and one-half of the Education
Program Director position. (H.B. 584/S.B. 500; S.L. 2011-145,
Sec. 31.2)
GED Program
($109,875,214)
($7,600,000)
($117,475,214)
-25.00 -25.00
Total Legislative Changes
Total Position Changes
Revised Budget $985,000,000 $985,000,000
R
NR
R
Community Colleges Page F - 21
Special Provisions
Department: Community Colleges
2011 Session: HB 22
Amends G.S. 115D-5(b), as amended by S.L. 2011-145, Sec. 8.12, to make technical changes to
the Radio Emergency Associated Communications Team (REACT) and high school student
tuition waivers.
Section: 18
Title: TECHNICAL CHANGE: COMMUNITY COLLEGE TUITION WAIVERS
Summary
Amends S.L. 2011-145, Sec. 8.18, Appropriations Act of 2011, to correct Subsection (c), the
effective date section of that provision.
Section: 19
Title: TECHNICAL CHANGE: EXEMPT COMMUNITY COLLEGES FROM APA
Summary
(Note: S.L. 2011-412, Sec. 3.3, Prison Maint/Justice Reinv/Tech Corr., amends S.L. 2011-391 to
repeal this section.)
Provides that if any legislation allowing the board of trustees of any community college to adopt a
resolution declining to participate in the William D. Ford Federal Direct Loan Program becomes
law, then a new section is added to S.L. 2011-145 (Section 8.21).
Section 8.21 would direct that if a college's board of trustees adopts a resolution declining to
participate in the William D. Ford Federal Direct Loan Program, that college may only transfer up
to 2% of State funds from faculty salaries for other purposes. Currently, per G.S. 115D-31(b1),
these types of transfers are not limited, with the exception of Literacy funds and Customized
Training funds.
S.L. 2011-148 (H.B. 15), S.L. 2011-154 (H.B. 541), S.L. 2011-155 (H.B. 58), and S.L. 2011-178
(H.B. 134) all permit certain colleges' boards of trustees to adopt resolutions declining to
participate in the William D. Ford Federal Direct Loan Program. As such, Section 8.21, described
above, was added to S.L. 2011-145. However, S.L. 2011-412, Sec. 3.3, Prison Maint/Justice
Reinv/Tech Corr., amends S.L. 2011-391 to repeal this section.
Section: 20
Title: BUDGET CHANGE: COMMUNITY COLLEGE BUDGET FLEXIBILITY
Summary
Department: Community Colleges
2011 Session: HB 200
Authorizes the President of the North Carolina Community College System to reorganize the
System Office during FY 2011-12. (H.B. 584/S.B. 500)
Section: 8.1
Title: REORGANIZATION OF THE COMMUNITY COLLEGES SYSTEM OFFICE
Summary
Community Colleges Page F - 22
Repeals two obsolete reporting requirements.
Subsection (a) amends G.S. 115D-4.1(e) to (i)remove the requirement that college transfer
programs continue to meet the accreditation standards of the Southern Association of Colleges
and Schools and (ii) remove an annual reporting requirement on the compliance of community
colleges with college transfer program criteria and standards.
Subsection (b) amends G.S. 115D-5(j) to remove the State Board's Board Reserve Fund
reporting requirement. (H.B. 584/S.B. 500)
Section: 8.2
Title: REPEAL OBSOLETE REPORTING REQUIREMENTS
Summary
Directs the State Board of Community Colleges to implement a new funding formula for
curriculum and occupational education instruction, and consolidates certain categorical allotments
into the new formula funding.
The new formula shall provide funding on a weighted full-time equivalent (FTE) basis. The
provision directs the State Board to weigh high-cost curriculum courses more heavily than other
curriculum courses and to weigh occupational education courses leading to a third-party
credential or certification more heavily than other occupational education courses. (H.B. 584/S.B.
500)
Section: 8.3
Title: IMPLEMENT ALTERNATIVE FORMULA MODEL
Summary
Amends G.S. 115D-31(e) to direct that overrealized tuition and fee receipts be transferred to an
Enrollment Growth Reserve rather than to the Equipment Reserve Fund. (H.B. 584/S.B. 500,
S.B. 569)
Section: 8.4
USE OF OVERREALIZED RECEIPTS TO SUPPORT ENROLLMENT GROWTH RESERVE
RATHER THAN EQUIPMENT RESERVE
Title:
Summary
Continues the authorization of the Basic Skills Plus program. This program provides employability
skills, job-specific occupational and/or technical skills, and developmental education instruction
free of charge to Basic Skills students concurrently pursuing a high school diploma or equivalent
certificate at a community college. (H.B. 584/S.B. 500)
Section: 8.5
Title: BASIC SKILLS PLUS
Summary
Directs that up to $1.25 million of the funds appropriated for the College Information System may
be carried forward each year of the biennium. These funds are to be used to purchase periodic
system upgrades. (H.B. 584/S.B. 500)
Section: 8.6
Title: CARRYFORWARD OF COLLEGE INFORMATION SYSTEM FUNDS
Summary
Community Colleges Page F - 23
Directs the use of appropriations for equipment. Subsection (a) permits colleges, for the 2011-13
fiscal biennium, to use regular equipment allocations for new construction and repairs and
renovations of existing facilities, as well as for equipment purchases.
Subsection (b) directs the State Board to allocate $250,000 of equipment appropriations in FY
2011-12 to Forsyth Technical Community College for the purpose of building and equipping the
Stokes County multicampus site.
Section: 8.8
Title: EQUIPMENT FUNDING
Summary
Amends G.S. 115D-15(a) to provide that property titled to the State Board of Community Colleges
may be transferred between community colleges at no cost and without the approval of the
Department of Administration, Division of Surplus Property. (H.B. 584/S.B. 500, S.B. 575)
Section: 8.9
Title: CLARIFICATION REGARDING EQUIPMENT TITLED TO STATE BOARD
Summary
Amends Article 3 of Chapter 115D of the General Statues by adding a new section, G.S. 115D-
42.1, prohibiting State funds, student tuition receipts, or student aid funds from being used to
create, support, maintain, or operate an intercollegiate athletics program at a community college.
Section: 8.10
Title: NO STATE FUNDS FOR INTERCOLLEGIATE ATHLETICS
Summary
Amends G.S. 115D-5 and G.S. 115D-39 to make the following changes to community college
tuition waivers:
- Clarifies that tuition is waived for public safety workers for courses that are both requested by
public safety entities for the organizations' training needs and on a specialized course list
approved by the State Board of Community Colleges. The provision makes additional clarifying
changes to the tuition waiver for paid fire department personnel.
- Deletes obsolete tuition waivers.
- Deletes the tuition wavier for prison inmates. Additionally, Subsection (c) directs the State Board
of Community Colleges to transfer funds to the Department of Correction to pay tuition and fees
for prisoners.
- Directs that the State Board shall not waive tuition and fees for other individuals.
- Permits colleges to use State or local funds to pay tuition and registration fees for full-time
faculty and staff.
(S.L. 2011-391, Sec. 18, Budget Technical Corrections, amends this provision to correct
references to Radio Emergency Communication Team and high school student tuition waivers.)
Section: 8.12
Title: COMMUNITY COLLEGE TUITION WAIVERS
Summary
Community Colleges Page F - 24
Amends G.S. 115D-5(o) to direct that all multicampus centers approved by the State Board of
Community Colleges shall receive funding under the same formula.
Section: 8.13
Title: FUNDING FOR MULTICAMPUS CENTERS
Summary
Directs the State Board of Community Colleges to report to the Joint Legislative Education
Oversight Committee by March 1, 2012 on a revised set of accountability measures and
performance standards.
Section: 8.14
Title: STUDY COMMUNITY COLLEGE PERFORMANCE MEASURES
Summary
Amends Article 4A of Chapter 115D of the General Statues by adding a new section, G.S. 115D-
58.16, requiring each community college to be audited at least once every two years by either the
State Auditor or a certified public accountant. Additionally, the provision provides that a
community college shall not be subject to the EAGLE program of the Office of the State Controller
except under certain circumstances.
Section: 8.15
Title: COMMUNITY COLLEGE AUDITS
Summary
Requires specific information to be included in future enrollment growth requests from the State
Board of Community Colleges and in the continuation budget requirements proposed by the
Director of the Budget. (H.B. 584/S.B. 500)
Section: 8.16
Title: ENROLLMENT GROWTH
Summary
Amends G.S. 150B-1 and repeals G.S. 115D-80 to exempt the State Board of Community
Colleges from the Administrative Procedures Act. (S.B. 284)
(S.L. 2011-391, Sec. 19, Budget Technical Corrections, amends this provision to correct a
reference in Subsection (c) of this section.)
Section: 8.18
Title: EXEMPT COMMUNITY COLLEGES FROM APA
Summary
Amends G.S. 115D-9 to (i) increase the State Board's authority for capital improvement projects
from projects with projected expenditures of $1 million to $4 million in expected expenditures and
(ii) direct that G.S. 143-341(e) will not apply to capital improvement projects funded with non-State
funds if the State Board of Community Colleges determines that the college has the necessary
expertise to manage the project. (S.B. 470, S.B. 575)
Section: 8.19
Title: CAPITAL IMPROVEMENTS AT COMMUNITY COLLEGES
Summary
Amends G.S. 115D-58.6 to grant colleges additional investment flexibility with institutional funds.
(H.B. 72, S.B. 575)
Section: 8.20
GRANTING COMMUNITY COLLEGES ADDITIONAL FLEXIBILITY WITH REGARD TO
INVESTMENTS
Title:
Summary
Community Colleges Page F - 25
Amends G.S. 115D-5(s) to authorize the State Board of Community Colleges to establish fees
charged to students taking the General Education Development (GED) test. (H.B. 584/S.B. 500)
Section: 31.2
Title: EDUCATION/STATE BOARD AUTHORITY TO ESTABLISH GED TESTING FEES
Summary
Community Colleges Page F - 26
UNC System
Adjusted Continuation Budget
Legislative Changes
$2,887,492,464 $2,886,730,386
GENERAL FUND
2011 Annotated Conference Committee Report
FY 11-12 FY 12-13
A. Technical Adjustments
69 $46,818,123 R $46,818,123 R
Fully funds projected enrollment growth for FY 2011-12 at the
University of North Carolina. The projected enrollment
increase of 1.2% equates to an additional 2,337 full-time-equivalent
(FTE) students. Total requirements will increase
by $56,474,924, of which $10,656,801 will be funded by
increased tuition receipts, for a net State appropriation of
$46,818,123. (H.B. 584/S.B. 500)
Enrollment Growth
70 $264,833 R $264,833 R
Transfers funds for the Hickory Metro Higher Education Center
from the North Carolina Community College System budget to
the budget for Appalachian State University.
Hickory Metro Higher Education Center
B. Base Budget Adjustments
71 ($413,987,494) R ($423,172,261) R
Mandates a management flexibility reduction for the UNC
operating budget. As directed in Section 9.6, the UNC Board
of Governors shall not allocate this reduction on an across-the-
board basis to constituent institutions. (H.B. 584/S.B.
500; S.L. 2011-145, Sec. 9.6, as modified by S.L. 2011-391,
Sec. 21)
Management Flexibility Reduction
($26,011,882) ($26,011,882)
72
Reduces the State subsidy to UNC Hospitals by 59% for two NR NR
years. $18 million will remain available to UNC Hospitals
after this reduction. (H.B. 584/S.B. 500)
UNC Hospitals Subsidy
($11,997,888)
$10,558,141
($11,997,888)
-116.00
73 R R
Eliminates recurring funding for the Center for Public NR
Television and provides nonrecurring funds with a twelve
percent reduction for FY 2011-12. Restoration of recurring
funding is subject to the findings of a legislative
continuation review. (S.L. 2011-145, Sec. 9.1)
Center for Public Television Continuation Review
UNC System Page F - 27
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
$3,500,000 $5,000,000
27.00 39.00
74 R R
Provides funds to the East Carolina School of Dentistry for
new faculty and staff and operating costs to prepare for its
first class of students, which will enroll in fall 2011, and
to establish dental service learning centers throughout the
State where faculty and students will serve patients.
Of the new funds appropriated, approximately $3.4 million in
FY 2011-12 and approximately $4.5 million in FY 2012-13 will
be used for salaries, wages, and benefits. Total State
appropriations will be $15 million in FY 2011-12 and $16.5
million in FY 2012-13. (H.B. 584/S.B. 500; H.B. 370/S.B. 403)
East Carolina School of Dentistry Operations
$18,531,614 $29,233,551
282.80 282.80
75 R R
Provides funds to operate new or renovated UNC buildings
completed in FY 2011-12. Specifically, funds are for the
housekeeping, maintenance, and security requirements for the
added building square footage. The FY 2011-12 amount provides
funding for a partial year; the FY 2012-13 appropriation
represents the full-year cost. (H.B. 584/S.B. 500)
Building Reserves
$1,000,000 $1,000,000
76
Provides nonrecurring funds for the NC A&T/UNC-G Joint School NR NR
of Nanoscience and Nanotechnology located the Gateway
University Research Park in Greensboro. The program is
designed to conduct research in areas such as drug design and
delivery, nanobioengineering, and genetic screening. (H.B.
257/S.B. 390)
NC A&T/UNC-G Joint School of Nanoscience and
Nanoengineering
UNC System Page F - 28
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
C. Student Aid Adjustments
77 $37,891,429 R $68,608,867 R
Shifts program funding to a higher proportion from the
General Fund, due to diminishing Escheat Fund principal. In
FY 2011-12, total funds available for the UNC Need-based
Financial Aid program from all sources will be $301,446 lower
than the FY 2011-12 base budget. In FY 2012-13, total funds
available will be $4,956,358 lower, and students will be
limited in the length of time they can receive the grant
(Section 9.11). An additional $59.9 million in forward-funding
is provided in FY 2011-12, to increase program
stability (Section 9.9).
Total funding includes:
FY 2011-12
General Fund - $48,891,429
Escheat Fund - $127,354,154
Lottery Fund - $10,744,733
FY 2012-13
General Fund - $79,608,867
Escheat Fund - $32,122,242
Lottery Fund - $10,744,733
Note: Sections 5.4 and 9.8 appropriate funds from the Lottery
Fund and Escheat Fund, respectively. (S.L. 2011-145, Secs.
5.4, 9.8, 9.9, and 9.11)
(S.L. 2011-340, Sec. 2, Global TransPark Gov. Reform & Loan
Repayment, amends this item for FY 2011-12 by decreasing the
amount of General Fund appropriations and increasing the
amount of Escheat Fund appropriations. The revised funding
for FY 2011-12 includes:
FY 2011-12
General Fund - $31,391,429
Escheat Fund - $144,854,154
Lottery Fund - $10,744,733
Total funding remains the same.)
UNC Need-based Financial Aid Program
78 ($800,827) R ($800,827) R
Eliminates funding for the Student Incentive Grant, as
federal matching funds have been eliminated. In addition to
the funds shown here, $3,613,601 in Escheat Fund program
funding is also reduced, for a total reduction of $4,414,428.
Student Incentive Grant
UNC System Page F - 29
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
79 ($1,892,640) R ($1,892,640) R
Eliminates certain tuition waivers for nonresident students.
These waivers include:
- Special Talent undergraduate tuition waivers ($529,967);
- Nonresident teachers ($984,443); and
- Nonresident Prospective Teacher Scholars program
($378,230). (S.L. 2011-145, Sec. 9.13)
Nonresident Tuition Waivers
80 ($970,747) R
Phases out funding for the Academic Common Market program,
beginning in FY 2012-13. Based on tuition waived in FY 2009-
10, it is estimated that $970,747 will remain in program
funding in FY 2012-13. (S.L. 2011-145, Sec. 9.12)
Academic Common Market
81 ($7,167,171) R ($58,269,681) R
Reduces funds for the Legislative Tuition Grant (LTG) by
12.3% in FY 2011-12 and eliminates funding in FY 2012-13.
This program will be replaced by the Need-based Scholarships
for Students Attending Private Institutions of Higher
Education, described below. (H.B. 584/S.B. 500; S.L. 2011-
145, Sec. 9.18)
Legislative Tuition Grant
82 ($5,645,326) R ($45,896,963) R
Reduces funds for the State Contractual Scholarship Fund by
12.3% in FY 2011-12 and eliminates funding in FY 2012-13.
This program will be replaced by the Need-based Scholarships
for Students Attending Private Institutions of Higher
Education, described below. (S.L. 2011-145, Sec. 9.18)
State Contractual Scholarship Fund
83 ($39,483) R ($321,000) R
Reduces funds for Other Private School Aid by 12.3% in FY
2011-12 and eliminates funding in FY 2012-13. This program
will be replaced by the Need-based Scholarships for Students
Attending Private Institutions of Higher Education, described
below. (H.B. 584/S.B. 500; S.L. 2011-145, Sec. 9.18)
Other Private School Aid
84 $81,851,588 R
Provides funds for the newly established Need-based
Scholarships for Students Attending Private Institutions of
Higher Education, beginning in FY 2012-13. This program is
described in Section 9.18. (S.L. 2011-145, Sec. 9.18)
Need-based Scholarships for Private College Students
85 ($1,279,000) R ($1,279,000) R
Eliminates funding for the Private Medical School aid
program. Students funded under this program are eligible to
apply for the Board of Governors Medical School Loan program.
(H.B. 584/S.B. 500; S.L. 2011-145, Sec. 9.14)
Private Medical School Aid
UNC System Page F - 30
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
86 ($362,000) R
Reduces program slots by 10% beginning in FY 2012-13. Total
funding remaining for the program in FY 2012-13 will be
$3,258,000.
Principal Fellows
87 ($455,000) R ($455,000) R
Eliminates the remaining budget of the Future Teachers
Scholarship-loan, which was abolished in 2009. (H.B. 584/S.B.
500)
(S.L. 2011-74, S.B. 137, Establish Forgivable Loan Program,
transfers all assets and liabilities of this program to the
new Forgivable Loans for Service Fund effective July 1, 2012.)
Future Teachers Scholarship-loan
88 $1,100,000 R $1,100,000 R
Shifts the portion of program funding previously provided
from the Escheat Fund to General Fund support. Total program
funding will remain at $1,922,779.
(S.L. 2011-74, S.B. 137, Establish Forgivable Loan Program,
transfers all assets and liabilities of this program to the
new Forgivable Loans for Service Fund effective July 1, 2012.)
Health, Science, and Mathematics Scholarship-loan
89 $645,000 R $645,000 R
Shifts the portion of program funding previously provided
from the Escheat Fund to General Fund support. Total program
funding will remain at $1,869,180.
(S.L. 2011-74, S.B. 137, Establish Forgivable Loan Program,
transfers all assets and liabilities of this program to the
new Forgivable Loans for Service Fund effective July 1, 2012.)
Board of Governors Medical Scholarship-loan
90 $450,239 R $450,239 R
Shifts the portion of program funding previously provided
from the Escheat Fund to General Fund support. Total program
funding will remain at $939,160.
(S.L. 2011-74, S.B. 137, Establish Forgivable Loan Program,
transfers all assets and liabilities of this program to the
new Forgivable Loans for Service Fund effective July 1, 2012.)
Board of Governors Dental Scholarship-loan
91 $800,000 R $800,000 R
Shifts the portion of program funding previously provided
from the Escheat Fund to General Fund support. Total program
funding will remain at $867,756.
(S.L. 2011-74, S.B. 137, Establish Forgivable Loan Program,
transfers all assets and liabilities of this program to the
new Forgivable Loans for Service Fund effective July 1, 2012.)
Nurse Education Scholarship-loan
UNC System Page F - 31
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
92 $600,000 R $600,000 R
Shifts the portion of program funding previously provided
from the Escheat Fund to General Fund support. Total program
funding will remain at $814,714.
(S.L. 2011-74, S.B. 137, Establish Forgivable Loan Program,
transfers all assets and liabilities of this program to the
new Forgivable Loans for Service Fund effective July 1, 2012.)
Teacher Assistant Scholarship Fund
($332,663,591)
($14,453,741)
($310,045,806)
($25,011,882)
309.80 205.80
Total Legislative Changes
Total Position Changes
Revised Budget $2,540,375,132 $2,551,672,698
R
NR
R
NR
UNC System Page F - 32
Special Provisions
Department: UNC System
2011 Session: HB 22
Amends S.L. 2011-145, Sec. 9.6, Appropriations Act of 2011, to allow the UNC Board of
Governors to allocate a management flexibility reduction to Special Focus Institutions and
Baccalaureate Arts and Science Colleges.
Section: 21
Title: BUDGET CHANGE: UNC MANAGEMENT FLEXIBILITY REDUCTION
Summary
Department: UNC System
2011 Session: HB 200
Places the Center for Public Television (UNC-TV) under continuation review. The Center and
The University of North Carolina General Administration must prepare a report to assist the
General Assembly in determining whether to continue, reduce, or eliminate funding for UNC-TV.
UNC must submit the report by March 31, 2012, to the House of Representatives and Senate
Appropriations Subcommittees on Education.
Section: 9.1
Title: CENTER FOR PUBLIC TELEVISION CONTINUATION REVIEW
Summary
Requires the Cancer Research Fund Committee to report annually by November 1 on the
financial activities of the University Cancer Research Fund. The Report will be submitted to the
Joint Legislative Education Oversight Committee and the Office of State Budget and
Management. (H.B. 584/S.B. 500)
Section: 9.4
Title: UNIVERSITY CANCER RESEARCH FUND REPORTING REQUIREMENT
Summary
Requires the Board of Governors of The University of North Carolina to review its policies for
financial incentives to retain faculty. The review must be submitted by April 1, 2012 to the Joint
Legislative Education Oversight Committee, the Office of State Budget and Management, and the
Fiscal Research Division. (H.B. 584/S.B. 500)
Section: 9.5
Title: UNC BOARD OF GOVERNORS REVIEW OF FACULTY RECRUITMENT AND RETENTION
Summary
UNC System Page F - 33
Directs the UNC Board of Governors to allocate the management flexibility reduction on a
programmatic basis and not on an across-the-board basis.
Subsection (b) prohibits the Board of Governors from allocating a management flexibility
reduction of more than 12.3% from the Governor's Recommended Continuation Budget to
Agricultural Extension Programs or the North Carolina Judicial College of the UNC School of
Government.
Subsection (c) prohibits the Board of Governors from allocating a management flexibility reduction
to several programs, including the Hickory Metro Higher Education Center, the Joint Graduate
School of Nanoscience and Nanoengineering, the North Carolina Research Campus, the Center
for Turfgrass Environmental Research and Education, Need-Based Financial Aid, Aid to Private
Colleges, Special Focus Institutions, Baccalaureate Arts and Science Colleges, and the Coastal
Wave Energy Research Project.
Subsection (d) prohibits the Board of Governors from allocating a management flexibility
reduction of more than 12.3% from the Governor's Recommended Continuation Budget to
Agricultural Research programs, except that the reduction for Agricultural Research Stations is
capped at 10%. (H.B. 584/S.B. 500)
(S.L. 2011-391, Sec. 21, Budget Technical Corrections, amends this provision to allow the UNC
Board of Governors to allocate a management flexibility reduction to Special Focus Institutions
and Baccalaureate Arts and Science Colleges.)
Section: 9.6
Title: UNC MANAGEMENT FLEXIBILITY REDUCTION
Summary
Amends G.S. 127C-2 to add the President of The University of North Carolina and the President
of the North Carolina Community College System to the North Carolina Advisory Commission on
Military Affairs. (H.B. 584/S.B. 500)
Section: 9.6A
Title: ADVISORY COMMISSION ON MILITARY AFFAIRS/MODIFY MEMBERSHIP
Summary
Amends G.S. 116-13.1 by adding a new subsection that permits constituent institution chancellors
to approve the expenditure of up to $1 million in operating funds per project for institutional
repairs, renovations, or maintenance or for related equipment purchases. (S.B. 575)
Section: 9.6C
ALLOW CHANCELLORS OF CONSTITUENT INSTITUTIONS TO APPROVE CERTAIN REPAIR
AND MAINTENANCE PROJECTS AND FUND THOSE WITH AVAILABLE OPERATING FUNDS
Title:
Summary
UNC System Page F - 34
Amends G.S. 143 by adding and revising sections to grant the UNC Board of Governors authority
to allow North Carolina State University (NCSU) to perform its own energy conservation projects.
Subsection (a) gives authority to the UNC Board of Governors to allow NCSU to perform its own
energy conservation projects and to implement energy conservation measures without entering
into guaranteed energy savings contracts.
Subsection (b) requires that prior to implementing an energy conservation measure as authorized
by Subsection (a), NCSU must select a third party to perform an energy savings analysis. The
subsection also requires NCSU to select a third party to conduct a post-implementation energy
conservation analysis. If the analysis reveals that a project's savings are less than were
estimated, the constituent institution is required to make up the shortfall.
Subsection (c) amends G.S. 116-30.3B(b) to state the General Assembly's intent that
appropriations for NCSU not be reduced as a result of NCSU's energy savings.
Subsection (d) amends G.S. 143-64.17F(b) to remove energy savings projects authorized under
Subsection (a) of this section from the jurisdiction of rules adopted by the Department of
Administration.
Subsection (e) makes conforming changes to G.S. 143-64.17H to clarify that energy saving
projects authorized under Subsection (a) of this section are subject to the reporting requirements
mandated in G.S. 143-64.17H for energy savings projects.
Subsection (f) makes conforming changes to G.S. 142-63 to clarify that NCSU is authorized to
enter into financing contracts for the energy savings projects authorized in Subsection (a) of this
section.
Subsection (g) amends G.S. 142-64(a) to clarify that for projects authorized under Subsection (a)
of this section, NCSU is subject to existing statutory requirements that the State Treasurer
approve financing contracts for guaranteed energy conservation measure projects. (S.B. 575)
Section: 9.6D
AUTHORIZE BOARD OF GOVERNORS TO PERMIT NORTH CAROLINA STATE UNIVERSITY
TO SELF-PERFORM ENERGY CONSERVATION MEASURES AND TO AUTHORIZE ENERGY
SAVINGS REALIZED BY NORTH CAROLINA STATE UNIVERSITY TO BE USED AS A
SOURCE OF REPAYMENT FOR CERTAIN DEBTS
Title:
Summary
UNC System Page F - 35
Amends G.S. 116 to allow the University of North Carolina increased authority regarding
investments.
Subsection (a) amends G.S. 116-36.1 to eliminate the requirement that The University of North
Carolina deposit trust funds with the State Treasurer for holding; the subsection also permits
chancellors to invest an institution's trust fund cash balances.
Subsection (b) amends G.S. 116-37(e) to make conforming changes necessitated by other
subsections of this section.
Subsection (c) amends G.S. 116-37.2 to eliminate the requirement that The University of North
Carolina Hospitals at Chapel Hill deposit funds with the State Treasurer for holding; the
subsection also permits the Board of Directors of the University of North Carolina Health Care
System to deposit or invest the hospital's funds. Finally, the subsection expands the definition of
the word "funds" as used in this subsection. (S.B. 575)
Section: 9.6E
AMEND REGULATION OF UNC INSTITUTIONAL TRUST FUNDS AND FUNDS OF UNC
HEALTH CARE SYSTEM
Title:
Summary
Amends G.S. 116-31.10 to give increased authority to The University of North Carolina's
constituent institutions regarding purchasing. The provision broadens the circumstances under
which institutions may make purchases without oversight from the Department of Administration's
Division of Purchase and Contract. (S.B. 575)
Section: 9.6F
Title: UNC/INSTITUTIONAL EXPENDITURE BENCHMARKS
Summary
Amends G.S. 143-60 to limit the Department of Administration's authority over The University of
North Carolina. The provision removes UNC from the Department's oversight regarding
inspections to determine the quality of purchased supplies, materials, equipment, and related
delivered goods; responsibility for assuring the quality of these items is given to UNC. (S.B. 575)
Section: 9.6G
Title: UNC ASSUME RESPONSIBILITY FOR QUALITY ACCEPTANCE INSPECTION PROCESS
Summary
Amends G.S. 143 by adding a new section, G.S. 143-64.06, granting North Carolina State
University the authority to sever and sell timber from its unimproved timberlands without the
involvement of the State Surplus Property Agency. (S.B. 575)
Section: 9.6H
Title: NCSU MAY SELL TIMBER
Summary
UNC System Page F - 36
Sets the amount of Escheat Fund principal and interest that may be used for need-based student
financial aid as follows:
- UNC Need-based Financial Aid Program: Subsections (a) and (b) appropriate a combined
$127,354,154 in FY 2011-12 and $32,122,242 in FY 2012-13.
- Community College Grant Program: Subsection (c) appropriates $16,500,000 in both years of
the fiscal biennium. Additionally, Subsection (g) directs the Office of State Budget and
Management to transfer the cash balance of the community college grant program to the Escheat
Fund.
- Department of Administration, Division of Veterans Affairs need-based student financial aid:
Subsection (d) appropriates $6,520,964 in both years of the fiscal biennium. (H.B. 584/S.B. 500)
(S.L. 2011-340 amends Subsection (a) of this provision to increase the amount of Escheat
funding for UNC Need-based Financial Aid in FY 2011-12 by $17,500,000.)
Section: 9.8
USE OF ESCHEAT Title: FUND FOR NEED-BASED FINANCIAL AID PROGRAMS
Summary
Establishes forward funding for the UNC Need-based Financial Aid Program. Of the funds
appropriated for the program in each fiscal year, $59,859,562 shall not be expended in that fiscal
year but instead held in reserve to be disbursed for scholarships in the next academic year.
Section: 9.9
Title: UNC NEED-BASED FINANCIAL AID PROGRAM FUNDING SCHEDULE
Summary
Consolidates the Millennium Teaching Scholarship Loan Program into the Prospective Teachers
Scholarship Loan Program and reverts $500,000 of the fund balance of the Millennium Teaching
Scholarship Loan Program to the Escheat Fund. Also, the provision establishes a priority in the
Prospective Teachers Scholarship Loan Program for former teacher assistants.
Section: 9.10
CONSOLIDATE ASSETS OF MILLENNIUM TEACHING SCHOLARSHIP LOAN PROGRAM AND
PROSPECTIVE TEACHERS SCHOLARSHIP LOAN FUND/ GIVE PRIORITY FOR
SCHOLARSHIP LOANS FOR PROSPECTIVE TEACHERS TO CERTAIN FORMER TEACHER
ASSISTANTS
Title:
Summary
Amends Article 1 of Chapter 116 of the General Statutes by adding a new section, G.S. 116-25.1,
that limits the length of time a student may receive a UNC Need-based Financial Aid grant to the
traditional time period required to earn a baccalaureate degree.
Additionally, the provision directs the Fiscal Research Division to study how to limit receipt of state
grants for students who transfer between the UNC, community college, and private college
systems. The Fiscal Research Division shall report its findings and recommendations by March
1, 2012 to the Joint Legislative Education Oversight Committee and the Education Appropriation
Subcommittees of the House of Representatives and the Senate.
Section: 9.11
LIMIT CERTAIN FINANCIAL AID GRANTS TO THE TRADITIONAL TIME PERIOD REQUIRED
TO EARN A BACCALAUREATE DEGREE
Title:
Summary
UNC System Page F - 37
Phases out the State's participation in the Academic Common Market program.
Section: 9.12
Title: ACADEMIC COMMON MARKET
Summary
Eliminates three tuition waivers for nonresident students:
- Amends G.S. 116-143(c) to eliminate the special talent undergraduate tuition waiver.
- Repeals G.S. 116-143.5 to eliminate the nonresident teachers tuition waiver.
- Eliminates the Prospective Teacher Scholars program begun in S.L. 2002-126, Section 9.9.
Section: 9.13
Title: ELIMINATE CERTAIN UNC TUITION WAIVERS FOR NONRESIDENT STUDENTS
Summary
Repeals G.S. 116-21.6 to eliminate the Private Medical School Aid program.
Section: 9.14
Title: ELIMINATE PRIVATE MEDICAL SCHOOL AID
Summary
Subsection (a) amends G.S. 116-242 to transfer operating management of the North Carolina
Arboretum from the University of North Carolina at Asheville to Western Carolina University.
Subsection (b) amends G.S. 116-243 to reduce the membership of the North Carolina Arboretum
Board of Directors and to modify the membership terms.
Subsection (c) amends G.S. 116-244 to clarify the Board of Directors' responsibilities and duties
and to make conforming changes.
Subsection (d) directs staggered terms for some Board of Directors members to conform to the
revised membership list provided by Subsection (b) of this section.
Section: 9.15
Title: TRANSFER NORTH CAROLINA ARBORETUM RESPONSIBILITIES TO WESTERN CAROLINA
Summary
Amends G.S. 116 by adding a new section, G.S. 116-30.8, requiring The University of North
Carolina's institutions to be audited annually. The provision permits chancellors of special
responsibility constituent institutions to use State funds to contract with either the State Auditor or
another certified public accountant to perform the audit.
Section: 9.16
Title: SPECIAL RESPONSIBILITY CONSTITUENT INSTITUTION AUDITS
Summary
Amends Chapter 116 of the General Statutes by adding a new article, Article 34, establishing the
Need-based Scholarships for Students Attending Private Institutions of Higher Education
program. The article applies to the 2012-13 academic year and every subsequent academic
year.
Additionally, the provision makes conforming changes to other General Statutes and directs the
State Education Assistance Authority to report by June 1, 2013 to the Joint Legislative Education
Oversight Committee regarding the new program's implementation.
Section: 9.18
NEED-BASED SCHOLARSHIPS FOR STUDENTS ATTENDING PRIVATE INSTITUTIONS OF
HIGHER EDUCATION
Title:
Summary
UNC System Page F - 38
Amends G.S. 143-341(8)i.3 to add the University of North Carolina's constituent institutions to the
list of entities permitted to purchase motor vehicles for law-enforcement use outside of Motor
Fleet Management's purview. (S.B. 575)
Section: 9.19
CONSTITUENT INSTITUTIONS MAY PURCHASE MOTOR VEHICLES INDEPENDENT OF
MOTOR FLEET MANAGEMENT
Title:
Summary
Department: UNC System
2011 Session: SB 137
Consolidates twelve scholarship-loan and scholarship programs to establish the new Forgivable
Education Loans for Service Program (FELS) and Fund. Of the twelve funds consolidated, eight
are currently operating programs and the remaining four are for programs no longer in operation,
but still receiving repayments from past recipients. The programs include:
Existing Programs
-Nurse Educators of Tomorrow (Graduate Nurse Scholarship Program for Faculty Production)
-Nurse Scholars Program
-Nurse Education Scholarship Loan Program
-Board of Governors' Medical Scholarship Loans
-Board of Governors' Dental Scholarship Loans
-Health, Science, and Mathematics Student Loan Program
-Prospective Teacher Scholarship Program
-Teacher Assistant Scholarship Program
Programs No Longer in Operation
-Coaching Scholarship Loan Fund
-Optometry Scholarship Loan Fund
-Social Workers' Education Loan Fund
-Future Teachers of North Carolina
Beginning in FY 2012-13, the new FELS program will provide financial assistance in the form of
forgivable loans to qualified students for certain high-need professions. Loans may be forgiven
through employment in a designated field in North Carolina. The program is designed to respond
to employment needs in the State, and will initially target future teachers, nurses, and allied health
professionals. The State Education Assistance Authority (SEAA) will administer the Program and
Fund. The bill requires SEAA to make a report on loans from the Fund no later than December 1,
2013 and annually thereafter to the Joint Legislative Education Oversight Committee.
Section: N/A
Title: S.L. 2011-74 (S.B. 137) Establish Forgivable Loan Fund
Summary
UNC System Page F - 39
Recommended Budget
Legislative Changes
$26,282,132
$26,282,132
$26,282,132
$26,282,132
2011 Annotated Committee Report
NC Community College System – Trust – General Budget Code: 66801
Requirements
Receipts
Positions 0.00 0.00
Beginning Unreserved Fund Balance $5,919,657 $187,745
FY 2011-12 FY 2012-13
Requirements:
Receipts:
Increases the annual appropriation from the
Escheats Fund by $2.5 million, for a total
program budget of $16.5 million per year.
(S.L. 2011-145, Sec. 9.8)
NC Community College Grant Program $2,518,798 $2,518,798
0.00 0.00
$0 $0
R R
NR NR
Appropriates the program's fund balance, which
will be transferred to the Escheats Fund.
(S.L. 2011-145, Sec. 9.8)
Community College Grant Program Fund Balance $0 $0
0.00 0.00
$5,731,912 $0
R R
NR NR
Corrects an error in the Governor's
recommended budget for the total requirements
in Budget Code 66801, Fund 6102.
Correction to Base Budget ($11,648,356) ($11,648,356)
0.00 0.00
$0 $0
R R
NR NR
Subtotal Legislative Changes ($9,129,558) ($9,129,558)
0.00 0.00
R
NR
R
$5,731,912 $0 NR
Increases receipts from the Escheats Fund by
$2.5 million. Total program receipts will
be $16.5 million per year. (S.L. 2011-145,
Sec. 9.8)
NC Community College Grant Program $2,518,798 $2,518,798
$0 $0
R
NR
R
NR
Community Colleges Page F - 40
2011 Annotated Committee Report
FY 2011-12 FY 2012-13
Corrects an error in the Governor's
recommended budget for the fund balance
receipts in Budget Code 66801, Fund 6102.
Correction to Base Budget ($11,648,356) ($11,648,356)
$0 $0
R
NR
R
NR
Subtotal Legislative Changes ($9,129,558) ($9,129,558)
$0 $0
R
NR
R
NR
Revised Total Requirements
Change in Fund Balance ($5,731,912)
$22,884,486 $17,152,574
$0
Unappropriated Balance Remaining $187,745 $187,745
Revised Total Receipts $17,152,574 $17,152,574
Total Positions 0.00 0.00
Community Colleges Page F - 41
HEALTH
&
HUMAN SERVICES
Section G
Health and Human Services
Adjusted Continuation Budget
Legislative Changes
$4,927,739,648 $4,928,125,764
GENERAL FUND
2011 Annotated Conference Committee Report
FY 11-12 FY 12-13
( 1.0) Division of Child Development
1 $65,011,651 R $65,011,651 R
Transfers $65,011,651 from the Department of Public
Instruction to the Department of Health and Human Services to
operate a pre-kindergarten program within the Division of
Child Development. Additionally, lottery funds will be
allocated in the amount of $63,135,709 for the continued
payment of a high quality pre-kindergarten program. (S.L.
2011-391, Sec. 22, Budget Technical Corrections, clarified
use of transferred funds) (S.L. 2011-145, Sec. 10.7)
Pre-kindergarten Funds Transfer
($6,352,644) ($6,352,644)
2
Replaces State funds for child care subsidy with one time NR NR
TANF funds. This reduction does not result in loss of
services. (S.L. 2011-145, Sec. 10.60)
TANF Funding
3 ($37,600,000) R ($37,600,000) R
Reduces the Smart Start budget by 20%, leaving $150M
available to support activities.
(S.L. 2011-391,Sec. 21A, Budget Technical Corrections,
specified that North Carolina Partnership for Children, Inc.
shall not reduce funding allocations by more than 20% for
counties with populations less than 35,000) (S.L. 2011-145,
Sec.10.5)
Smart Start
4 ($3,800,000) R ($3,800,000) R
Swaps federal Child Care Development Fund Block Grant with
state funds for the program. (S.L. 2011-145, Sec. 10.60)
TEACH Program
5 ($3,195,581) R ($3,195,581) R
Reduces the allowance for County Departments of Social
Services administrative allowance from 5% to 4%. This leaves
$16.4M County Departments of Social Services may use to
support administrative costs. (S.L. 2011-145, Sec. 10.60)
Social Services Administrative Support
6 ($7,052,797) R ($7,052,797) R
Reduces child care subsidy funding available for post-secondary
education. This reduction will change the existing
policy from allowing individuals to receive subsidy for 24
months to 20 months. The combination of changing various
policies (items 6-9) will result in a net reduction of $9.7M,
leaving approximately $54M. (S.L. 2011-145, Sec. 10.1(c)(5))
Post-Secondary Education
Health and Human Services G-1
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
7 ($1,305,008) R ($1,305,008) R
Discontinues payment for the instructional day of More At
Four students by child care subsidy funds. The combination of
changing various policies (items 6-9) will result in a net
reduction of $9.7M, leaving approximately $54M.
More At Four Match
8 ($360,570) R ($360,570) R
Discontinues payment for child care centers' registration
fees by child care subsidy funds. The combination of changing
various policies (items 6-9) will result in a net reduction
of $9.7M, leaving approximately $54M. (S.L. 2011-145, Sec.
10.1(c)(4))
Facility Registration Fees
9 ($1,001,718) R ($1,001,718) R
Discontinues payment for transportation services with subsidy
funds. The combination of changing various policies (items 6-
9) will result in a net reduction of $9.7M, leaving
approximately $54M. (S.L. 2011-145, Sec. 10.1(c)(4))
Transportation Services
( 2.0) Division of Mental Health, Developmental Disabilities, and Substance Abuse Services
10 ($7,180,807) R ($7,180,807) R
Reduces community service funds by 2%; this reduction
continues a non-recurring reduction made in FY2010-11. These
funds have not been used to pay for services. There is
currently $350M in state funding to pay for services managed
through Local Management Entities.
Management Funding Reduction
($158,045) ($158,045)
-7.00 -7.00
11 R R
Eliminates seven vacant advocacy positions located throughout
facilities and/or community settings. There are 56 positions
remaining after this reduction; this is an 11% reduction in
number of positions for advocacy.
Advocacy Positions
($20,000,000)
12
Reduces Community Services funds by $20M for FY2011-12. This NR
reduction combined with the Management Funding Reduction
leaves $323M of state funds available for purchase of
services through Local Management Entities. This reduction
is an 8% reduction in this budget. (S.L. 2011-145, Sec.
10.11(a))
Community Services Funds
13 ($523,638) R ($523,638) R
Eliminates funding for coordinator positions located in 15
Local Management Entities. These positions have supported
the Child and Family Team Pilot Program. Funds within
Division of Social Services for this pilot is also being
eliminated within this budget.
Child and Family Support Teams
Health and Human Services G-2
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
($25,000,000)
14
Replaces Community Services Funds with Local Management NR
Entities' Fund Balance available for FY2011-12. This
reduction/swap is to come from the undesignated/unreserved
fund balances and not further reduce community services.
(S.L. 2011-145, Sec. 10.11(d))
Community Services Funds - Swap
15 ($5,100,390) R ($5,100,390) R
Eliminates the funding for the information technology account
that is used to fund the facilities' information technology
systems upgrade.
Information Technology Reserve
( 3.0) Division of Central Management and Support
($5,599,390)
$5,599,390
16 R ($5,599,390) R
Eliminates recurring funding for the DIRM Contracts. Funding NR
for FY2012-13 is pending the findings and recommendations of
a Continuation Review.
Division of Information Resource Management - Contracts
17 ($1,452,527) R ($1,452,527) R
Reduces funding available for grants to community health
centers. Grants are awarded on a multi-year basis; this
reduction represents the new grants to be awarded in FY2011-
12. There will be $5M remaining for grants.
Community Health Centers
18 ($458,395) R ($458,395) R
Replaces state funds with increased federal funds available
for the loan repayment program. The total program has
approximately $1.4M in funds.
Loan Repayment Program - Federal Receipts
19 ($550,556) R ($550,556) R
Reduces excess operating funds within the Division of
Resource Management.
Information Resource Management - Operating Budget
($76,215) ($76,215)
-2.00 -2.00
20 R R
Eliminates two positions, one due to transfer of the
Residential Schools to Department of Public Instruction and
one within Purchase of Medical Care Section.
Position Eliminations - Office of the Controller
($1,869,435) ($1,869,435)
-25.00 -25.00
21 R R
Reduces administrative funds and positions available within
the Department of Health and Human Services. Administrative
cost savings should include the co-location of various
regional and field offices to achieve savings in leased space
costs.
Department Wide Administrative Efficiencies
22 ($5,000,000) R ($5,000,000) R
Reduces grants-in-aid and contract funding for non-profits by
$5M. There is currently $75M in state funds for non-profits
and this reduction represents 6.6% of total state funding.
Non-profit Reductions
Health and Human Services G-3
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
23 ($736,145) R ($736,145) R
Reduces the program funds for the Migrant Purchase of Medical
Care Program; the federal funds will continue. There remains
approximately $2.8M in this program.
Migrant Fee for Service Program
($380,478) ($380,478)
-11.00 -11.00
24 R R
Eliminates funding and positions for the NC Care Line.
NC Care Line
25 ($1,360,982) R ($1,360,982) R
Reduces the contractual services line item within The
Division of Resource Management. This reduction represents
cost-savings realized from converting 78 Information
Technology Contractors to state employees.
Information Resource Management - Conversion of
Contracts to Employees
($7,606,000) ($7,606,000)
-250.00 -250.00
26 R R
Eliminates vacant positions. There are over 1,600 positions
vacant.
Position Eliminations
27 ($561,225) R ($561,225) R
Replaces state appropriations within The Division of Resource
Management ($410,225) and throughout Central Management and
Support ($151,000) with over-realized receipts.
Budgeting Receipts - Information Resource Management
( 4.0) Division of Public Health
28
Transfers $13,485,365 from the Department of Environment and
Natural Resources to the Department of Health and Human
Services to operate various programs and activities that
comprised the Division of Environmental Health. In effecting
this transfer, the following activities are being eliminated:
1) Public Health Pest Management Section, and 2) the Private
Well Program, WaDE Program, and Quality Assurance of the On-
Site Water Protection Section. (S.L. 2011-145, Sec. 13.3)
Division of Environmental Health Transfer
($3,118,046) ($3,118,046)
-11.00 -11.00
29 R R
Requires the Division of Public Health to implement several
administrative efficiencies, including: 1) elimination of 11
vacant positions; 2) reducing the contract to the Charlotte-
Child Development Service Agency (a reduction that can be
made up by its implementing Medicaid cost-settlement); and 3)
other administrative efficiencies. The program will continue
to be funded at nearly $80 million annually, with a
combination of federal and state funds.
Early Intervention
Health and Human Services G-4
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
30
Shifts a portion of funds for position number 60039654 from
Highway Fund receipts to other receipts within the Department
of Health and Human Services budget, and reduces funding for
purchased services by $6,280.
Department of Health and Human Services - Chemical
Testing Unit
($302,262) ($302,262)
-4.00 -4.00
31 R R
Reduces the administrative staff within the Office of
Minority Health with little or no impact on the Division's
ability to direct this program or provide technical
assistance to Local Health Departments in striving to
eliminate health disparities. (S.L. 2011-145, Sec. 10.21)
Office of Minority Health
($571,447) ($571,447)
-10.00 -10.00
32 R R
Integrates the activities of the Office of Healthy
Carolinians and Health Education into the duties of other
personnel in the Division of Public Health. The Division will
continue to provide technical assistance to local communities
in support of the Governor's Task Force on Healthy
Carolinians.
Consolidate Healthy Carolinians and Health Education
33 ($400,000) R ($400,000) R
Continues funding for the Accreditation program at a level
comparable to FY 2010-11 ($375,000). This allows the program
to be funded at a maintenance level.
Local Health Department Accreditation
$32,904,411
34
Transfers $32,904,411 from funds available to the Health & NR
Wellness Trust Fund to the Department of Health and Human
Services as follows:
-- $22,000,000 shall be used to administer the grants
associated with the following programs and initiatives; Teen
Tobacco Prevention, ChecKmeds, Medication Assistance Program,
and Obesity Prevention.
-- $10,000,000 shall be used to reduce the total savings
required to be achieved for the Medicaid program by Community
Care of North Carolina
-- The remainder shall be used to reduce the Medicaid
Provider Rate cut.
-- Budget Technical Corrections, amends this item to add the
Roanoke-Chowan CHC Telehealth Network as a program to be
funded with part of the $22 million noted above.
(S.L. 2011-145, Sec.6.11; S.L. 2011-391, Sec. 7(a))
Health & Wellness Trust Fund Transfer to DHHS
Health and Human Services G-5
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
( 5.0) NC Health Choice
35 ($650,000) R ($900,000) R
Modifies and ensures the clinical appropriateness of several
Health Choice Services, including: 1) Elimination of long-term
care, hearing services, and non-emergency
transportation; 2) Reduction of dental benefits; and 3)
Assurance of evidence-based treatment. (S.L. 2011-145, Sec.
10.41)
Modify Health Choice Services
36 ($125,000) R ($350,000) R
Benchmarks Health Choice services to Medicaid including the
amounts, types, and reimbursement rates. The exception is
that Health Choice will not be benchmarked to Medicaid's
Early Periodic Screening, Diagnosis, and Treatment Program.
(S.L. 2011-145, Sec. 10.41)
Benchmark Health Choice to Medicaid
37 ($225,000) R ($250,000) R
Adjusts Medicaid provider reimbursement rates. The Division
of Medical Assistance will adjust provider reimbursement
rates that are above regional rates, or where analysis
indicates an adjustment is warranted and appropriate.
Targeted Rate Adjustments
38 ($500,000) R ($666,667) R
Budgets savings to be realized by the Division of Medical
Assistance as a result of restructuring and modernizing its
program integrity and fraud and abuse operations to enhance
recoveries and avoid overpayments. Complementary savings are
expected in the Health Choice program.
Strengthen and Restructure Program Integrity
39 ($4,255,235) R ($4,489,274) R
Reduces State costs in the Division of Medical Assistance by
re-establishing the care and utilization management services
of the Community Care of North Carolina program-both Networks
and Physician of Health Choice recipients. A per member per
month payment will be made to physicians and networks. The
cost will be offset by better management of services and
improved clinical outcomes which lead to reduced state costs.
(S.L. 2011-145, Sec. 10.41)
Care Coordination through CCNC
40 ($3,166,254) R $2,000,000 R
Adjusts funding for Health Choice to reflect the changes in
the consumption and mix of services, and payment to cost-settled
health care providers. The policy of open enrollment
will continue in FY 2011-12 and is projected to increase
enrollment to approximately 148,203 children. Open enrollment
will continue in FY 2012-13, but at a moderated rate.
Health Choice Adjustment
Health and Human Services G-6
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
( 6.0) Division of Medical Assistance
41 ($60,183,120) R ($62,798,614) R
Levies an assessment of up to 5.5%, consistent with Federal
Regulations, on willing Medicaid healthcare providers.
Currently, the list of providers includes: Hospitals,
Critical Access Behavioral Health Agencies (CABHA), and
Community Alternative Programs for Mentally Retarded
(CAP/MR). A portion of the assessment will be retained by the
State. The current 5.5% assessment on Nursing Homes is not
affected. (S.L. 2011-11; S.L. 2011-145, Sec. 10.31A; S.L.
2011-315; S.L. 2011-391, Sec.24)
Medicaid Provider Assessments
42 ($7,926,122) R ($10,568,163) R
Adjusts the assessment rate on Nursing Facilities upward to
6.0%, as allowed by Federal regulations, effective October 1,
2011, by adjusting the appropriate totals accordingly.(S.L.
2011-145, Sec. 10.31A)
Adjust Assessment on Nursing Facilities to 6%
43 ($528,960) R ($3,457,596) R
Budgets savings to be achieved from the March 2011
implementation of a collaborative effort between Community
Care of North Carolina Networks and Local Health Departments
to improve the quality of perinatal care and ensure that high-risk
pregnant women receive the care and case management
required. The improved birth outcomes, especially preventing
premature births, will reduce state expenditures incurred by
the Division of Medical Assistance. (S.L. 2011-391, Sec. 25)
Implement Pregnancy Home Model
($16,146,384) ($24,739,541)
44
Budgets revenue from the increased federal matching rate for NR NR
the Health Homes for Chronically Ill Program. The Division
of Medical Assistance is taking advantage of the two-year
Federal program to enhance comprehensive care management for
Medicaid recipients with co-occurring illnesses, including a
chronic health condition and severe and persistent mental
health condition. The Federal matching rate for this program,
during the two-years, is 90%, versus the current rate of
approximately 65%.
Health Homes for Chronically Ill
($19,200,000) ($28,000,000)
-30.00 -40.00
45 R R
Budgets the anticipated savings from the Division of Medical
Assistance efforts to reduce, if not eliminate, fraud and
abuse in the Medicaid program by restructuring and
modernizing current policies and efforts. Through policy and
staffing changes and technology improvements, state
administrative costs will be reduced, over payments avoided
and recovery-of-funds improved.
Strengthen and Restructure Program Integrity
Health and Human Services G-7
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
46 ($7,000,000) R
Budgets anticipated savings in FY 2012-13. In the next 12
months several brand-name drugs are scheduled to go off
patent, leading to generic drug substitution savings in FY
2012-13.
Generic Substitution for Off-Patent Drugs
47 ($10,845,441) R ($14,436,600) R
Budgets savings to be realized by the Division of Medical
Assistance through several actions, including: 1) Better
management of drug rebates, 2) Ensuring Medicare Part D
correctly reimburses Medicaid, 3) Elimination of automatic
refills, and 4) For flexibility to modify dispensing fees.
Modify Pharmacy Services
48 ($15,000,000) R ($24,000,000) R
Revises generic drug dispensing rates to increase the rate of
generic drugs within the Medicaid Program. (S.L. 2011-145,
Sec. 10.48)
Modify Generic Prescription Dispensing Rates
49 ($10,537,931) R ($52,551,082) R
Expands the capitated behavioral health program to additional
Local Management Entities (LMEs). (S.L 2011-102; S.B. 316)
Behavioral Health Medicaid 1915 b/c Waiver
50 ($90,000,000) R ($90,000,000) R
Budgets savings to be achieved by DHHS, in conjunction with
CCNC Networks and North Carolina Community Care, Inc.,
through the cooperation of Medicaid health care providers. To
the extent these savings are not achieved, DHHS is to
undertake whatever actions necessary to affect the savings,
including: 1) Reducing provider rates, and 2) Eliminating or
reducing the level or duration of optional Medicaid services.
(S.L. 2011-145, Sec. 10.47)
DHHS Savings Through Community Care of North Carolina
(CCNC)
51 ($16,508,903) R ($22,072,343) R
Budgets savings to be achieved by the Division of Medical
Assistance through adjustments to mandatory and optional
Medicaid services. These changes include the following
services: Optical, Durable Medical Equipment, Specialized
Therapies, Home Health, Dental, and a variety of other
services. In the event, these savings are not fully achieved,
the elimination of optional service requirements may be
required. (S.L. 2011-145, Sec. 10.37)
Modify Optional and Mandatory Services
52 ($62,853,775) R ($130,874,505) R
Eliminates automatic inflation increases for Medicaid
providers. The Division of Medical Assistance is not to
authorize any inflationary increases to Medicaid provider
rates during the 2011-13 biennium, except as set forth in
Section 10.37. (S.L. 2011-145, Sec. 10.37)
Eliminate Inflationary Increases
Health and Human Services G-8
2011 Annotated Conference Committee Report FY 11-12 FY 12-13
53 ($46,420,718) R ($46,458,260) R
Reduces Medicaid provider reimbursement rates. The Division
of Medical Assistance is to reduce Medicaid provider rates by
2%, except as provided for in Section 10.37. (S.L. 2011-145,
Sec. 10.37)
Adjust Provider Rates
54 $109,693,468 R
Rebases the Medicaid budget to adjust for changes in the
number of Medicaid recipients, utilization or consumption of
services, mix of services being consumed, inflation for cost-settled
providers, and changes to the Federal Medical
Assistance Percentage (FMAP).
Medicaid Rebase
( 7.0) Division of Health Service Regulation
($1,792,559) ($1,792,559)
55
Replaces State funds with federal receipts in the Nursing NR NR
Home Licensure and Certification Section on a non-recurring
basis. The receipts come from civil monetary penalties
assessed against nursing homes.
Nursing Home Licensure and Certification Funds
( 8.0) Division of Social Services
56 ($420,804) R ($420,804)