North Carolina state budget ... recommended adjustments

              INVESTINGFUTURERECOMMENDED ADJUSTMENTS2012 - 2013 North Carolina State BudgetBeverly Eaves Perdue, GovernorIN OUROffice of State Budget and Management
Office of the Governor
Raleigh, North Carolina
Andy Willis, State Budget Director
www.osbm.nc.gov/thebudget
May 2012
ADJUSTMENTS2012 - 2013 North Carolina State BudgetBeverly Eaves Perdue, GovernorIN v
Introduction
The purpose of this document is to summarize the governor’s recommended state budget adjustments for fiscal year 2012-13. These recom­mended changes are based on the certified bud­get approved by the 2011 session of the General Assembly. Governor Perdue’s priorities are listed in her transmittal letter, which precedes the over­view of key recommendations for adjustments to the base budget (continuation budget).
Included in this publication are recommenda­tions for expenditures from the General Fund, Highway Fund, and the Highway Trust Fund. Recommended expenditures for capital improve­ments and for reserves, debt service, and other adjustments are also included.
A summary of General Fund recommendations by department/budget code for the entire state budget appears in table 2, “Governor’s Recom­mended General Fund Budget, 2012-13.” Sum­maries of recommendations for expenditures supported by the Highway Fund and the High­way Trust Fund for 2012-13 appear in table 3. A General Fund Balance Sheet appears in table 4.
Also included in this document are an analysis of the state’s economic and financial outlook for 2012-13 and a comparison of the economic conditions in North Carolina to the nation. The most current revenue forecast is explained. Esti­mates of fund availability for the General Fund, Highway Fund, and Highway Trust Fund show the supporting basis for the recommended state budget (see tables 5, 6 and 7).
Three types of changes are usually included in the Governor’s adjustments document: reduc­tions, expansion, or technical adjustments. “Re­ductions” denotes recommended decreases to budgets that support current operations, while “Expansion” denotes new programs, expansion of existing programs, and salary and benefit increases. “Technical Adjustments” is a category for describing other pertinent changes, such as school-age populations or Medicaid enroll­ments, that necessitate a recommended change in the certified budget.
For each reduction, expansion and technical adjustment that is described, there is a listing of the resulting fiscal change, as well as the change in number of positions, when appropriate. Fiscal changes are categorized as “Requirements” or “Nonrecurring Requirements.” They may also be categorized as “Receipts” or “Nonrecurring Receipts” to designate changes in departmental receipts. Always, “requirements” less “receipts” equals “appropriation.”
A summary table for the revised recommended budget for 2012-13 is presented at the begin­ning of each department/budget code or section. In addition, there are summary tables for the items of change following each of the change types, i.e., reduction adjustments, expan­sion adjustments, and technical adjustments. At the end of each department/budget code or sec­tion, there is a table that summarizes all recom­mended changes. vivii
Table of Contents
Introduction.......................................................................................................................................................................v
List of Figures and Tables............................................................................................................................................ix
Governor’s Letter and Highlights.............................................................................................................................1
Budget Summary.............................................................................................................................................................7
Economy and Revenue by Topic............................................................................................................................13
Economic Outlook for the Nation and State................................................................................................ .15
Revenue
General Fund Forecast...................................................................................................................................17
Highway Fund...................................................................................................................................................19
Highway Trust Fund........................................................................................................................................21
General Fund - Recommended Appropriations
Education
Education Highlights......................................................................................................................................23
Public Education (13510)..............................................................................................................................25
The University of North Carolina (160xx).................................................................................................31
Community Colleges (16800).......................................................................................................................39
General Government
General Government Highlights.................................................................................................................43
General Assembly (11000)...........................................................................................................................45
Office of the Governor (13000)....................................................................................................................48
Office of State Budget and Management (13005)................................................................................50
OSBM - Reserve for Special Appropriation (13085)..............................................................................53
North Carolina Housing Finance Agency (13010)................................................................................55
Office of the Lieutenant Governor (13100).............................................................................................58
Department of Secretary of State (13200)..............................................................................................59
Office of the State Auditor (13300)............................................................................................................61
Department of State Treasurer (13410)....................................................................................................63
State Treasurer - Retirement for Fire and Rescue Workers (13412).................................................66
Department of Insurance (13900)..............................................................................................................67
Insurance - General Fund Direct (13901).................................................................................................69
Department of Administration (14100)....................................................................................................70
Office of the State Controller (14160).......................................................................................................73
Department of Revenue (14700)................................................................................................................75
Department of Cultural Resources (14800).............................................................................................78
Roanoke Island Commission (14802)........................................................................................................81
State Board of Elections (18025).................................................................................................................82
Office of Administrative Hearings (18210)..............................................................................................84viii
Health and Human Services
Health and Human Services Highlights...................................................................................................87
Department of Health and Human Services (144xx)...........................................................................89
Division of Central Management and Support (14410).....................................................................91
Division of Aging and Adult Services (14411)........................................................................................94
Division of Child Development and Early Education (14420)..........................................................96
Division of Public Health (14430)................................................................................................................98
Division of Social Services (14440)...........................................................................................................101
Division of Medical Assistance (14445)..................................................................................................103
NC Health Choice (14446)..........................................................................................................................109
Divisions of Services for the Blind, Deaf, and Hard of Hearing (14450)......................................112
Division of Mental Health/Developmental Disabilities/
Substance Abuse Services (14460)................................................................................................114
Division of Health Service Regulation (14470)....................................................................................117
Division of Vocational Rehabilitation (14480)......................................................................................119
Justice and Public Safety
Justice and Public Safety Highlights........................................................................................................121
Judicial Branch (12000)...............................................................................................................................123
Judicial Branch - Indigent Defense (12001)..........................................................................................125
Department of Justice (13600)..................................................................................................................126
Department of Public Safety (14550)......................................................................................................130
Natural and Economic Resources
Natural and Economic Resources Highlights.......................................................................................137
Department of Agriculture and Consumer Services (13700).........................................................139
Department of Labor (13800)....................................................................................................................142
Department of Environment and Natural Resources (14300)........................................................144
DENR - Clean Water Management Trust Fund (14301).....................................................................150
Wildlife Resources Commission (14350)................................................................................................151
Department of Commerce (14600)..........................................................................................................153
Commerce - General State Aid (14601)..................................................................................................158
Transportation
Transportation Highlights..........................................................................................................................161
Highway Fund (84210).................................................................................................................................163
Highway Trust Fund (84290).......................................................................................................................170
Turnpike Authority (64208).........................................................................................................................172
Capital Improvements
Capital Improvements - General Fund (19600)....................................................................................175
Capital Improvements - Non-General Fund (404xx)..........................................................................177
Reserves, Debt Service, and Other Adjustments
Reserves, Debt Service, and Other Adjustments - General Fund (190xx)..................................189ix
List of Figures and Tables
Figures
1.
Recommended General Fund Budget by Function, FY 2012-13.......................7
2.
Real Private Earnings in NC...........................................................................................15
3.
NC Economy Added nearly 110,000 Jobs................................................................16
4.
Total General Fund Revenue: Fiscal Year 2000 to 2013.......................................16
5.
Highway Fund Revenue Collections, FY 2012-13.................................................19
6.
Highway Trust Fund Revenue Collections, FY 2012-13.......................................21
Tables
1.
Recommended General Fund Budget by Function, FY 2012-2013...................7
2.
Governor’s Recommended General Fund Budget, FY 2012-13..........................8
3.
Recommended Highway Fund and Highway Trust Fund Budget..................10
4.
Governor’s Recommended General Fund Balance Sheet, FY 2012-13.........11
5.
General Fund Revenue by Fiscal Year: Recent History and Forecast..............18
6.
Highway Fund Revenue.................................................................................................20
7.
Highway Trust Fund Revenue......................................................................................22xSTATE OF NORTHCAROLINAOFFICE OF THE GOVERNORBEVERLYEAVESPERDUEGOVERNORLOCATION: 116 WEST JONES STREET • RALEIGH, NC • TELEPHONE: (919) 733-5811 WWW.GOVERNOR.STATE.NC.USMay 10, 2012 The North Carolina Senate The Honorable Phil Berger, President Pro Tempore The North Carolina House of Representatives The Honorable Thom Tillis, Speaker The Citizens and Families of North Carolina Dear Mr. President, Mr. Speaker, Ladies and Gentlemen of the General Assembly and Fellow North Carolinians: My short session budget adjustments reflect a state that is beginning to show signs of recovering from the worst economic climate since the Great Depression. Over the past three years, we took decisive action to head off severe financial crises that many other states have experienced. As the economy continues to move in a positive direction, we need to continue our long history of fiscal discipline, but also need to return to our tradition of investing in our future. State government performs a number of critical functions, including protecting public safety and locking up dangerous criminals, caring for the neediest and most vulnerable among us, and protecting the quality of North Carolina’s clean air and clean water. My budget addresses all of these important areas, but I’d like to concentrate on three main priorities: education, jobs, and our veterans and military families. Investing in education is among the most important things we can do. This budget reverses the education cuts that were imposed over the past year, and prevents the even deeper cuts that were scheduled for next year. These actions will help prepare our children to compete in the 21st century global economy by saving or creating more than 11,000 teacher, teacher assistant, and other education positions across North Carolina. I also invest in reducing class size in grades K through 3; provide funds for an innovative mobile technology initiative to empower teachers to help more children read at grade level; and take steps that will enable us to recruit, train, and retain teachers across North Carolina. We will also continue to invest in our innovative Career & College Promise program, which prepares high school students for a career or for college by enabling eligible students to earn college credit or career training credits while they’re still in high school. These priorities are a must for a state that continues to grow. Our history of providing a great educational system from Pre-Kindergarten to University not only helps prepare our children for the future, but is also one of the best things we can do to attract companies to invest and create jobs here. Secondly, my budget invests in initiatives designed to help companies create jobs. These efforts should enhance North Carolina's reputation as a national leader in recruiting new businesses and helping our existing companies grow and thrive. Job creation has been a priority over the past three years and our investments have made North Carolina a great place to do business. I am not content to rest on our great business climate alone, though. My budget contains a number of initiatives designed to stimulate economic growth and help 2
companies create jobs for North Carolinians. In addition to credits to encourage small businesses to hire veterans and unemployed North Carolinians now, I also propose investments in high priority industries like manufacturing, the film and television production industry, biotechnology, and our energy sector. I won't be satisfied until there's a job for every North Carolinian who wants one. It is essential that we both honor the sacrifice of our brave servicemen and women, and preserve and enhance North Carolina's well-earned reputation as the most military-friendly state in America. That's why my budget invests in a series of initiatives to support those who have served our nation. In addition to the credit for small businesses that hire returning veterans, my budget also invests in tuition assistance for veterans at community colleges and public universities in our state. Further, because children of active duty service members face unique challenges, my budget provides focused support for those students. North Carolina is a national leader in fiscal management. Over the past three years, we have taken difficult actions that have allowed us to continue this tradition. Because of strong leadership and disciplined decisions, North Carolina continues to be one of only eight states to hold the coveted Triple-A credit rating from all three major bond rating agencies. Through April 2012, revenues are ahead of forecast, and we anticipate a revenue surplus of $232 million this fiscal year. These additional dollars are reinvested in the aforementioned priorities. My budget also spends seven percent less per capita compared to five years ago. When adjusted for inflation, this results in a reduction of $400 per person since fiscal year 2008. Finally, this budget continues to right-size state government. I have outlined over $270 million in reductions and adjustments in non-education areas of the budget. Our fiscal philosophy and willingness to invest in the key areas of education and in improving the overall economy continues to be the envy of many other states. We must continue to move North Carolina forward. This budget provides a clear path to do this by investing in education, job creation, and our veterans and military families. I stand ready to work with you to address these priorities to invest in our future. I look forward to working with you this session and with the citizens of this great state. Sincerely, Bev Perdue 3
Investing in education is among the most important things state government can do. Not only does it prepare our children to compete in the 21st century global economy, but ensuring quality schools is an important economic development priority as well. CEOs thinking about investing or expanding in North Carolina care about education because it ensures them a pipeline of well-trained workers, and helps them attract and recruit top-quality employees who demand good schools for their children.
My priorities include:
Ensuring that there are more caring adults to • educate our children by reversing the deep cuts inflicted last year, and thereby saving or creat­ing more than 11,000 education positions across North Carolina.
Unfreezing the salary schedule and giving teach­• ers and principals a pay increase for the first time in four years (1.8% for teachers and approximate­ly 1.5% for school administrators).
Lowering class size in grades K - 3. •
Increasing our commitment to early childhood • education.
Transforming the way we educate by investing • in innovative new education solutions. One such powerful tool, already in place in approximately 480 schools across the state, helps teachers en­sure that more children are able to read on grade level by the end of third grade.
Recruiting, training and supporting teachers by • restoring our investments in the Teaching Fel­lows program, the North Carolina Center for the Advancement of Teaching, and the Teacher Cadet program.
Restoring funding for the Governor’s Schools, NC • School for the Deaf, Eastern School for the Deaf, and Governor Morehead School.
Providing a net increase of more than $53 million • for the community college system.
Investing more than $145 million for North • Carolina’s public universities, including funds to help ensure that working families across North Carolina can afford to send their children to col­lege, and funds to accelerate the development and launch of commercial products derived from university research.
Investing in Our Future:
Supporting Education at Every Level
FederalEduJobsDollarsFederalEduJobsDollars$7,923,543,951$7,464,492,057$7,444,122,100$7,444,122,100$7,000,000,000$7,100,000,000$7,200,000,000$7,300,000,000$7,400,000,000$7,500,000,000$7,600,000,000$7,700,000,000$7,800,000,000$7,900,000,000$8,000,000,000Public Schoolsbefore cuts(2011‐12Continuation)Public Schoolsafter cuts(2011‐12)Gen. Assembly(2012‐13)Gov. Perdue(2012‐13)$562,253,440$258,000,000+ ≈ 11K Education PositionsReduce K‐3 Class SizeNew innovative teaching tools
North Carolina's K-12 Education Budget4
Investing in Our Future:
Supporting Jobs and Economic Growth
North Carolina is consistently ranked as one of the most business-friendly states in America. Our well-trained and highly-motivated workforce makes North Carolina an ideal place for businesses to invest and expand. I am not content to rest on our great busi­ness climate alone, though. My budget contains a number of initiatives designed to stimulate economic growth and help companies create jobs for North Carolinians:
Put People Back to Work
Put veterans and unemployed North Carolinians back to work with an initiative to encourage small businesses to hire post-911 veterans or unemployed North Carolinians now and retain them for at least a year.
Support Small Businesses
In addition to the credit for small businesses that hire veterans and unemployed North Carolinians, I am also proposing a credit for angel investments in certain small businesses, a Small Business Startup Tax Credit, and a Research and Development Innovation Tax Credit. And I am proposing funding for the One NC Small Business Fund, which provides early-stage funding for small, high-growth, high-tech businesses across the state.
Support Manufacturing and Other Key Industries
Manufacturing: ••Support manufacturing through expansion of Biz Boost for North Carolina Manu­facturers—a program that targets resources and technical assistance to help NC businesses keep and add jobs and enhance their competitiveness; and through investment in a program to support the activities of NC small manufacturing compa­nies that are seeking to expand jobs by selling products in the global marketplace.
Film Industry:•• Institute a Film Industry Workforce Training program, which will provide funds to Cape Fear Community College and Forsyth Technical Community College to train up to 400 workers for production crews.
Biotech:•• Invest in the Biotechnology Strategic Growth Loan Fund to support technology-based, entrepreneurial companies with an already established technical proof-of-concept; and fund an AgBiotech Initiative to provide targeted fund­ing for certain commercially relevant ag-biotech research projects in North Carolina.
Energy:•• Invest in an Energy Research and Green Jobs initiative to provide funds to Research Tri­angle Institute (RTI) to support energy research and green jobs; and invest in the North Carolina New Energy Production Initiative, which provides funds to promote energy production in North Carolina and in state and federal waters offshore, and explores new manufacturing opportunities linked to low natural gas prices. 5
Investing in Our Future:
Supporting our Military and their Families
We must honor the sacrifice of our brave service­men and women while preserving and enhancing North Carolina’s well-earned reputation as the most military-friendly state in America. That is why my budget invests in initiatives that enhance educational and job opportunities for those who have served our nation. My budget also provides funds to improve the quality-of-life in communities where military installa­tions are located. These initiatives include:
Educational Opportunities
Provide tuition assistance by classifying certain • military veterans (and their dependents) as resident students for tuition purposes. To qualify for resident tuition, a military veteran must have been last stationed at a military installation in North Carolina and honorably discharged on or after July 1, 2011.
Fund Student 2 Student, a program of the Military • Child Education Coalition that connects military-connected and civilian students in middle and high school to assist with transition and peer support. Working with school leaders, session participants train individuals within their school to implement the strategies effective in assisting military-connected students with school success.
Establish regional military counselors that per­• form military culture training for counselors, teachers and administrators, provide deployment support to schools, assist with crisis intervention, connect students with community agencies, and provide information on student opportunities, such as summer camps and college scholarships.
Direct additional funds to the National Guard to • provide tuition assistance to all eligible soldiers and airmen.
Job Opportunities
Encourage small businesses to hire veterans and • unemployed North Carolinians by providing a credit of up to $5,000 to companies that hire post-911 veterans or persons unemployed for greater than 180 days.
Provide funds to restore the 2011-12 reduction ••made to the Military Business Center at Fayette­ville Technical Community College. This program works with communities and companies to develop and obtain federal business opportuni­ties, including the U.S. military at North Carolina military installations.
Support the hiring of additional faculty at UNC-••W for the Accelerated Nursing Program. This 16-month program, based in Onslow County, will be targeted towards non-nursing baccalaureate holders who are veterans, military personnel, or the spouses of military personnel. The program provides a faster pathway towards careers in nurs­ing and serves the community by increasing the supply of qualified nursing professionals.
Help for Military Base Communities
Re-establish the Military Morale and Welfare • fund, a grants program for military installations throughout the state to provide community service and quality of life programs for military members and their families.
We will continue to fight on behalf of all of North • Carolina’s military installations. Funds are provid­ed to assist with Base Realignment and Closure (BRAC) preparation by providing funding that will enable military communities to plan and position themselves favorably in preparation for poten­tial future BRAC actions and/or Federal budget actions that impact North Carolina installations. Funds will support community planning, strategic communication, training range encroachment, and other items that may be identified in coordi­nation with military and Department of Defense leadership.6
7
Education56.2%General Government2%Health and Human Services22%Justice and Public Safety11%Natural and Economic Resources2%Transportation0%Capital Improvements0%Debt Service4%Reserves and Adjustments3%General Fund Budget by Function, 2012-13
Economic Priorities and
Budget Summary
for 2012-13
Table 1
Recommended General Fund Budget by Function
2012-13
Figure 1
Recommended General Fund Budget by Function
2012-13
2012-13
Recommended
%
Education
$11,741,637,497
56.2%
General Government
416,693,475
2.0%
Health and Human Services
4,631,493,709
22.2%
Justice and Public Safety
2,325,168,844
11.1%
Natural and Economic Resources
417,225,121
2.0%
Transportation
0
0.0%
Capital Improvements
13,678,000
0.1%
Debt Service
710,696,719
3.4%
Reserves and Adjustments
650,493,400
3.1%
Total General Fund Budget
$20,907,086,765
100.0%8
FY 2012-13FY 2012-13Approved AppropriationAppropriationFY 2012-13NetBudgetCertified SupportedSupportedNetRecommendedPositionCodeFunctionBudgetRecurringNonrecurringPositionsRecurringNonrecurringPositionsChangeAppopriationChangeEducation:13510Public Education $ 7,444,122,100 (94,094,951)$ - - 656,348,391$ -$ - 562,253,440$ 8,006,375,540$ - 16800Community Colleges 985,000,000 (12,108,704) - - 64,613,601 1,000,000 - 53,504,897 1,038,504,897 - 160xxUniversity System 2,551,672,698 - - - 142,735,004 2,349,358 231.70 145,084,362 2,696,757,060 231.70 Total Education 10,980,794,798 (106,203,655) - - 863,696,996 3,349,358 231.70 760,842,699 11,741,637,497 231.70 General Government:14100Administration 66,353,073 (1,123,564) - - 11,215,842 28,820 7.00 10,121,098 76,474,171 7.00 13300State Auditor 10,676,035 (160,141) - - - - - (160,141) 10,515,894 - 14800Cultural Resources 61,697,001 (1,110,546) - - 1,250,000 - - 139,454 61,836,455 - 14802Cultural Resources - Roanoke Island 1,203,491 - - - - - - - 1,203,491 - 11000General Assembly 50,104,208 (901,876) - - 2,572,506 - 31.60 1,670,630 51,774,838 31.60 13000Governor's Office 4,741,157 (47,412) - - - - - (47,412) 4,693,745 - 13010NC Housing Finance 9,673,051 (96,731) - - - - - (96,731) 9,576,320 - 13900Insurance 36,393,921 (545,909) - - - 1,000,000 - 454,091 36,848,012 - 13901Insurance - Worker's Comp. Fund 2,623,654 - - - - - - - 2,623,654 - 13100Lieutenant Governor 695,324 - - - - - - - 695,324 - 18210Office of Administrative Hearings 4,142,258 (41,423) - - - - - (41,423) 4,100,835 - 14700Revenue 78,199,538 (1,407,592) - - 2,406,357 - 57.00 998,765 79,198,303 57.00 13200Secretary of State 10,654,563 (159,818) - - - - - (159,818) 10,494,745 - 18025State Board of Elections 5,126,603 (51,266) - - 663,936 - - 612,670 5,739,273 - 13005State Budget and Management (OSBM) 5,848,663 (58,487) - - 1,276,558 - 5.00 1,218,071 7,066,734 5.00 13085OSBM-Special Appropriations 440,612 - - - - 1,100,000 - 1,100,000 1,540,612 - 14160Controller's Office 28,368,957 (425,534) - - - - - (425,534) 27,943,423 - 13410State Treasurer 6,621,750 (66,218) - - - - - (66,218) 6,555,532 - 13412State Treasurer - Retirement / Benefits 17,812,114 - - - - - - - 17,812,114 - Total General Government 401,375,973 (6,196,517) - - 19,385,199 2,128,820 100.60 15,317,502 416,693,475 100.60 Health and Human Services:14410Central Administration 44,577,987 (4,357,544) - (27.84) 8,998,802 8,579,266 1.00 13,220,524 57,798,511 (26.84)14411Aging 37,019,667 - - - 4,875,649 - 1.00 4,875,649 41,895,316 1.00 14420Child Development 266,102,933 - - - 43,184,601 - 5.00 43,184,601 309,287,534 5.00 14430Public Health 157,538,834 (900,000) - - 11,726,775 - 19.00 10,826,775 168,365,609 19.00 14440Social Services 186,183,068 (9,079,116) - - - - - (9,079,116) 177,103,952 - 14445Medical Assistance 2,907,276,302 (33,751,743) (14,000,000) - 124,881,512 30,427,389 - 107,557,158 3,014,833,460 - 14446Child Health 83,717,865 (2,802,057) - - - - - (2,802,057) 80,915,808 - 14450Services for the Blind 8,372,886 (168,336) - - - - - (168,336) 8,204,550 - 14460Mental Health/DD/SAS 710,712,232 (8,497,935) - - 15,144,059 176,895 373.10 6,823,019 717,535,251 373.10 14470Health Service Regulation 16,133,031 - - - - 1,892,559 - 1,892,559 18,025,590 - 14480Vocational Rehabilitation 37,528,128 - - - - - - - 37,528,128 - Total Health and Human Services 4,455,162,933 (59,556,731) (14,000,000) (27.84) 208,811,398 41,076,109 399.10 176,330,776 4,631,493,709 371.26 Justice and Public Safety:14550Public Safety 1,694,715,876 (20,321,499) (8,178,500) (27.00) 18,334,685 1,588,806 272.00 (8,576,508) 1,686,139,368 245.00 12000Judicial 435,141,107 - - - 8,893,777 - 44.00 8,893,777 444,034,884 44.00 12001Judicial - Indigent Defense 112,748,733 - - - - - - - 112,748,733 - 13600Justice 80,864,138 (1,400,000) - (4.00) 2,721,222 60,499 33.00 1,381,721 82,245,859 29.00 Total Justice and Public Safety 2,323,469,854 (21,721,499) (8,178,500) (31.00) 29,949,684 1,649,305 349.00 1,698,990 2,325,168,844 318.00 Natural and Economic Resources:13700Agriculture & Consumer Services 62,198,634 (2,100,000) - (10.00) 2,405,449 - 18.75 305,449 62,504,083 8.75 14600Commerce 33,250,463 (636,159) - (0.50) 636,872 20,100,000 4.00 20,100,713 53,351,176 3.50 14601Commerce - State Aid 73,080,423 - - - 3,025,000 20,500,000 - 23,525,000 96,605,423 - 14300Environment and Natural Resources 148,148,105 (1,331,360) (568,640) (10.75) 13,814,747 249,700 193.96 12,164,447 160,312,552 183.21 14305Wildlife Resources Commission 17,221,179 (335,000) - - 778,821 - - 443,821 17,665,000 - 14301Clean Water Management Trust 11,250,000 - - - - - - - 11,250,000 - 13800Labor 15,836,887 (300,000) - - - - - (300,000) 15,536,887 - Total Natural & Economic Resources 360,985,691 (4,702,519) (568,640) (21.25) 20,660,889 40,849,700 216.71 56,239,430 417,225,121 195.46 14222Transportation - - - - - - - - - - Net Agency 18,521,789,249 (198,380,921) (22,747,140) (80.09) 1,142,504,166 89,053,292 1,297.11 1,010,429,397 19,532,218,646 1,217.02 19600Capital Improvements - - - - - 13,678,000 - 13,678,000 13,678,000 - ReductionsGovernor's Recommended General Fund Budget, FY 2012-2013 Continuation/Expansion
Table 29
FY 2012-13FY 2012-13Approved AppropriationAppropriationFY 2012-13NetBudgetCertified SupportedSupportedNetRecommendedPositionCodeFunctionBudgetRecurringNonrecurringPositionsRecurringNonrecurringPositionsChangeAppopriationChangeReductionsGovernor's Recommended General Fund Budget, FY 2012-2013 Continuation/ExpansionDebt Service:19420General Debt Service 759,984,974 (50,904,635) - - - - - (50,904,635) 709,080,339 - 19425Federal Reimbursement 1,616,380 - - - - - - - 1,616,380 - Total Debt Service 761,601,354 (50,904,635) - - - - - (50,904,635) 710,696,719 - Reserves and Adjustments:19001Contingency and Emergency Reserve 5,000,000 - - - - - - - 5,000,000 - 19004Salary Adjustment Reserve - - - - - - - - - - 190xxSeverance Reserve - - - - - - - - - - 19013Job Development Incentive Grants Reserve 27,400,000 - (6,500,000) - - - - (6,500,000) 20,900,000 - 19xxxContinuation Review Reserve 35,576,758 - (35,576,758) - - - (35,576,758) - - 190xxCompensation Adjustment, Performance Pay Reserve 121,105,840 - - - 37,000,604 3,692,182 - 40,692,786 161,798,626 - 190xxAutomated Fraud Detection Development 7,000,000 - - - - - - - 7,000,000 - 190xxController - Fraud Detetion Development 500,000 - - - - - - - 500,000 - 19043State Health Plan Reserve 102,151,104 - - - - - - - 102,151,104 - 19044IT Initiative 6,158,142 - - - - - - - 6,158,142 - 19047Retirement Rate Adjustment Reserve 336,000,000 (63,251,200) - - 61,069,800 - - (2,181,400) 333,818,600 - 19xxxJudicial Retirement System Reserve 7,800,000 - - - - - - - 7,800,000 - 19xxxFireman and Rescue Squad Pension Fund 5,366,928 - - - - - - - 5,366,928 - 19xxxReserve for Payment to Escheat Fund - - - - - - - - - - Total Reserves and Adjustments 654,058,772 (63,251,200) (42,076,758) - 98,070,404 3,692,182 - (3,565,372) 650,493,400 - Total $ 19,937,449,375 $ (312,536,756) $ (64,823,898) (80.09) $ 1,240,574,570 $ 106,423,474 1,297.11 $ 969,637,390 $ 20,907,086,765 1,217.02 10
Table 3
FY 2012-13Approved AppropriationAppropriationFY 2012-13NetCertifiedSupportedSupportedNetRecommendedPositionFunctionBudgetRecurringNonrecurringPositionsRecurringNonrecurringPositionChangeAppropriationChangeDOT Administration 85,412,594 - - - 8,992,030 5,041,271 - 14,033,301 99,445,895 - Division of HighwaysAdministration 34,836,793 - - - - - - - 34,836,793 - Construction 86,339,067 - - - - - - - 86,339,067 - Maintenance 1,249,514,751 (144,681,735) (5,848,500) - 794,439 - - (149,735,796) 1,099,778,955 - Planning and Research 4,055,402 - - - - - - - 4,055,402 - OSHA Program 372,792 - - - - - - - 372,792 - Ferry Operations 43,538,132 - - - 2,500,000 532,000 - 3,032,000 46,570,132 - State AidMunicipalities 90,187,224 (912,604) - - - - - (912,604) 89,274,620 - Public Transportation 90,551,575 - - - - - - - 90,551,575 - Airports 22,311,031 - - - - - - - 22,311,031 - Railroads 21,701,153 - - - - - - 21,701,153 - Governor's Highway Safety Program 273,093 - - - - - - - 273,093 - Division of Motor Vehicles 43,004,042 - - - 48,171,552 88,110 11.00 48,259,662 91,263,704 11.00 Other State Agencies 273,919,396 (207,961) - - 12,228,330 - - 12,020,369 285,939,765 - Reserves and Transfers 73,142,955 (50,561,947) - - 5,110,015 - - (45,451,932) 27,691,023 - Capital Improvements 15,000,000 - - - 625,000 - 625,000 15,625,000 Total Highway Fund 2,134,160,000 (196,364,247) (5,848,500) - 77,796,366 6,286,381 11.00 (118,130,000) 2,016,030,000 11.00 Administration 47,107,200 (1,516,320) - - - - - (1,516,320) 45,590,880 - ConstructionIntrastate System 487,503,034 (18,505,930) - - - - - (18,505,930) 468,997,104 - Urban Loop System 212,957,986 (7,483,027) - - - - - (7,483,027) 205,474,959 - Secondary Roads 49,320,944 (2,143,020) - - - - - (2,143,020) 47,177,924 - State Aid to Munipalities 54,043,432 (1,941,703) - - - - - (1,941,703) 52,101,729 - BondsBond Redemption 61,646,984 - - - - - - - 61,646,984 - Bond Interest 19,834,559 - - - - - - - 19,834,559 - NC Turnpike Authority 81,500,000 - - - - - - - 81,500,000 - NC Mobility Fund - - - - - - - - - - DOT Prioritiztion Reserve 45,000,000 - - - - - - - 45,000,000 Transfer to the Highway Fund 400,000 - - - - - - - 400,000 - Transfer to the General Fund 27,595,861 - - - - - - - 27,595,861 - Total Highway Trust Fund 1,086,910,000 (31,590,000) - - - - - (31,590,000) 1,055,320,000 - ReductionsOther Continuation/ExpansionGovernor's Recommended Highway Fund and Highway Trust Fund Budget2012-1311
Brief DescriptionFY 2012-13AvailabilityCredit Balance:Unappropriated Balance41,232,325$ Overcollections 232,500,000 Reversions122,500,000 Medicaid Provider Payments in FY 2011-12 (200,000,000) Subtotal Credit Balance196,232,325$ Base Revenues 19,944,500,000$ Revenue Changes:Reinstate 0.75% Sales Tax Increase (effective 7-1-12)760,000,000$ Small Business Jobs Credit, Extend Various Tax Sunsets(3,000,000) Subtotal Revenue Changes757,000,000$ Other Revenue9,600,000$ Total Recommended Availability20,907,332,325$ ExpendituresRecurring Base Budget 19,937,449,375$ Reductions: Non-Education Reductions(114,924,406)$ Other Technical Reductions(156,232,593) Subtotal Reductions(271,156,999)$ Non-Education Expansion 454,951,690$ Education Net Change:Public Education562,253,440$ Community Colleges53,504,897 University System145,084,362 NC Pre-Kindergarten25,000,000 Subtotal Education785,842,699$ Total Recommended Expenditures20,907,086,765$ General Fund Balance245,560$ Governor's Recommendation General Fund Balance Sheet, FY 2012-13
Table 41213
Investing in Our Future:
Economic Outlook
and Revenue Forecasts
1415
Economic Outlook
National Economic Forecast
Economic signs for 2012 are encouraging, • although GDP growth will likely slow initially in 2012 before accelerating later in the year and into 2013.
The U.S. labor market finished 2011 and • started 2012 strongly. Employment growth is expected to slow compared to the early 2012 pace, but register modest 1.6% and 1.7% growth in 2012 and 2013.
Consumer spending has picked up as pent-• up demand has fueled spending increases, notably in the auto sector. However, high debt burdens, elevated oil prices, and housing market struggles will not allow consumer spending to drive the economic recovery in 2012 and 2013. Spending is expected to fall slightly to 2.1% in 2012 from 2.2% in 2011.
Housing demand is strengthening and • starts are expected to improve modestly during 2012. Prices are beginning to stabilize, but are still expected to fall slightly in 2012.
North Carolina Economic Forecast
North Carolina’s economy is improving, • although growth is expected to slow modestly in early 2012 before picking up momentum into 2013.
The North Carolina labor market has • exhibited signs of improvement. Since February 2010, the private sector has added 108,800 jobs (see Figure 3). North Carolina’s total employment is forecast to grow 1.6% in 2012 and 1.8% in 2013, about the same as the national employment forecast.
The unemployment rate, currently at 9.7%, • is expected to fall to 9.4% by the end of 2012.
Real private earnings are up more than 5% • since early 2009 (see Figure 2). Wages, the largest component of earnings and a key revenue forecast variable, are forecast to grow approximately 4% in 2012 and 2013.
After being hit extremely hard during the • recession, North Carolina manufacturing posted a small job gain in 2011. Manufacturing is forecast to expand 1.8% and 2.4% in 2012 and 2013.
Employment gains will likely be led by the • professional and business services sector, which is projected to grow 2.5% in 2012 and 3.9% in 2013.
The consistent education and health • services sector is expected to expand 2.1% and 1.3% in 2012 and 2013, respectively.
Job losses in construction have been • particularly difficult to reverse. However, the sector is expected to stabilize in 2012 and grow 2.2% in 2013 as the housing market accelerates.
After remaining relatively flat in 2011, • housing starts are expected to grow near 20% over the next several years.
Figure 216
$19.37 $20.7‐12%‐6%0%6%12%$0$5$10$15$20FY00FY01FY02FY03FY04FY05FY06FY07FY08FY09FY10FY11FY12FY13Total GF Revenue (Left)Baseline Growth Rate (Right)Total General Fund Revenue:Fiscal Year 2000 to 2013Billions of current‐year dollars (left axis); Year‐over‐year percent change (right axis)Long‐runaverage baseline revenue growth = 4.9%Note: Baseline revenue growth measures economy‐based changes in annual revenue, controlling for tax‐law changes
Figure 3
Figure 417
General Fund Revenue Forecast
About half of North Carolina’s total revenue originates from tax collections and other sources comprising the General Fund. The other half consists of funds from the federal government, highway funds, the Education Lottery, and other receipts and fees (e.g., tuition). General Fund rev­enues are primarily derived from three sources: individual income tax, corporate income tax, and the sales and use tax. Other important sources include franchise, insurance, alcohol and other miscellaneous taxes. In addition, nontax revenue, such as earnings from investment of state funds, supports the General Fund.
General Fund revenue improved in 2011-12 as the economy continues to slowly gain mo­mentum. The General Fund revenue forecast anticipates growth to slow modestly in 2012-13. Specific highlights of the forecast include:
General Fund revenue is expected to register • 6.2 % base growth in 2011-12, slightly above last year (see Figure 4). By the end of 2011-12, General Fund revenue collections are expected to total $19,374.4 million, $232.5 million above the budgeted forecast.
Reflecting a modest pace of recovery, General • Fund revenue is forecasted to post 4.3 % base growth in 2012-13, down slightly from 2011-12 growth. Table 5 details this forecast adjusted for recommended revenue changes.
Individual income tax collections, North • Carolina’s single largest revenue source, are expected to grow 4.8% in 2011-12, $401.5 million above the budgeted forecast. Growth is expected to fall to 3.1% in 2012-13 as the full year impact from the Small Business Tax Relief Package is realized.
Sales and use tax collections, which comprise • nearly one-third of General Fund revenue, are estimated to finish slightly below the budgeted forecast in 2011-12. Boosted by the Governor’s recommendation to reinstate the state sales tax rate at 5.5% (increases the current rate by 0.75%) and an improved labor market, sales and use tax collections are expected to grow 18.4% in 2012-13.
Corporate collections are forecast to grow • 4.2% in 2011-12, outpacing budgeted expectations by $56.2 million as business profits were higher than anticipated. Reflecting an improving business climate and the historic volatility of this revenue source, corporate tax collections are expected to increase 1.8% in 2012-13. 18
2008-092009-102010-112011-122011-12Percent 2012-132012-13Percent ActualActualActualBudgetRevisedChangeBudgetRevisedChangeTax RevenueIndividual Income9470.29047.69734.99800.110201.54.810232.010517.13.1Sales and Use4677.95565.05872.05293.15254.1-10.55534.36218.918.4Corporate Income 835.51197.91013.51000.21056.44.21058.01075.01.8Franchise651.9724.5607.5649.9599.1-1.4687.6615.22.7Insurance466.6486.8480.1510.9487.91.6532.4511.14.8Beverage228.5282.3275.2296.6287.64.5312.3293.21.9Inheritance14.371.923.864.057.5142.092.283.545.2Licenses37.539.241.343.743.24.545.244.53.0Tobacco Products227.1251.7265.3260.2268.41.2253.9262.8-2.1Mill Machinery32.931.932.534.136.311.734.736.81.4Piped Natural Gas34.233.831.035.028.5-8.134.529.12.1Gift12.312.03.00.00.0n.a.0.00.0n.a.Miscellaneous 0.00.00.00.01.0n.a.0.01.0n.a.Total Tax Revenue16778.917744.718380.117987.718321.5-0.318817.119688.27.5Nontax RevenueInvestment Income113.340.826.359.415.8-39.976.721.636.7Judicial Fees191.2216.9225.8279.6248.610.1279.6258.74.1Disproportionate Share Receipts100.0125.0135.0115.0115.0-14.8115.0115.00.0Insurance Department76.569.667.571.469.73.373.573.75.7Miscellaneous201.6312.3232.0531.9310.033.6509.9304.4-1.8Total Nontax Revenue682.6764.7686.6860.4759.110.6866.4773.41.9TransfersHighway Fund147.5108.517.076.776.7351.227.627.6-64.0Highway Trust Fund17.617.672.920.2217.1197.824.1212.3-2.2Total Transfers165.1126.189.997.0293.8226.8239.9239.9-18.4Total General Fund Revenue17626.618635.519156.619141.919374.41.119923.520701.56.8 Totals may differ from the sum of their parts due to rounding.General Fund Revenue by Fiscal Year: Recent History and Forecast
Table 519
Highway Fund Revenue
Current Fiscal Year Update
Fiscal year 2011-12 revenues are expected to exceed last year’s totals by 7.8%. Despite this growth, revenue is expected to finish 3.1% below the official forecast as the excise tax on motor fu­els and motor fuel consumption remained lower than expected. Specifically, motor fuel consump­tion is anticipated to fall 1.7% after consecutive years of flat to small increases. Licenses and fees are expected to finish 0.5% ahead of fiscal year 2011-12, but slightly below forecast.
Fiscal Year 2012-13 Revenue Projections
Projected revenue for fiscal year 2012-13 is expected to exceed fiscal year 2011-12 levels by 2.7%. The forecast is impacted by the Governor’s recommendation to cap the state gas tax at 37.5 cents per gallon beginning in July 2012. The cap is expected to save North Carolina motorists approximately $63 million in fiscal year 2012-13. Motor fuel consumption is also expected to decline slightly as gas prices are anticipated to remain elevated and the motor fleet continues to become more fuel efficient. Licenses and fees are expected to increase 1.3% over revised revenue projections for fiscal year 2011-12. This change is fueled by increases in domestic and international truck registrations as the economic recovery continues to gain traction.
Motor Fuels 70% Gasoline Inspection 1% Highway Use Reg. 0% Staggered Registration 10% International Registration 3% Driver Licenses 6% Truck Licenses 7% Other Licenses and Fees 3% Investment Income 0% Highway Fund Revenue Collections 2012-13
Figure 520
Source2008-092009-102010-112011-122011-12Percent 2012-13 2012-13Percent ActualActualActualBudgetRevisedChangeBudgetRevisedChangeMotor Fuels Tax Motor Fuels1,115.01,143.61,227.41,418.11,368.311.5%1,519.51,413.73.3% Gasoline Inspection13.714.114.114.114.0-0.7%14.313.8-1.2% Highway Use Reg.0.20.30.30.20.2-35.5%0.20.2-20.0% Total Motor Fuel Taxes1,128.91,158.01,241.81,432.41,382.511.3%1,533.91,427.73.3%Licenses and Fees Staggered Registration195.9189.1196.2189.6191.7-2.3%189.9192.00.2% International Registration Plan62.158.760.868.462.22.3%69.964.63.9% Driver Licenses129.7126.5126.8126.6127.80.8%127.3129.61.4% Truck Licenses134.0128.1131.7138.0134.31.9%141.0135.61.0% Other Licenses and Fees63.756.056.264.258.74.5%66.360.63.1% Total Licenses and Fees585.3558.5571.7586.8574.70.5%594.4582.31.3%Investment Income24.415.27.76.06.1-20.6%6.06.0-2.1%Total Highway Fund Availability1,738.61,731.71,821.22,025.21,963.37.8%2,134.32,016.02.7%Totals may differ from the sum of their parts due to rounding.Highway Fund RevenueActuals and Estimates($ Millions)
Table 621
Highway Trust Fund Revenue
Current Fiscal Year Update
Fiscal year 2011-12 revenues are expected to exceed last year’s levels by 6.4%. Despite regis­tering solid growth, revenue is expected to finish fiscal year 2011-12 slightly below the official forecast as the excise tax on motor fuels and motor fuel consumption remained lower than anticipated. Following a year of relatively flat growth, motor fuel consumption is anticipated to fall 1.7% in fiscal year 2011-12. Driven by an improving economy and consumer sentiment, the highway use tax is expected to increase 2.9% over fiscal year 2010-11 levels and 2.0% above forecast. Title registrations are expected to slightly exceed the budgeted target.
Fiscal Year 2012-13 Revenue Projections
Projected revenue for fiscal year 2012-13 is ex­pected to outpace revised fiscal year 2011-12 by 2.3%. The fiscal year 2012-13 forecast is impacted by the Governor’s recommendation to cap the state gas tax at 37.5 cents per gallon beginning in July 2012. The cap is expected to save North Carolina motorists approximately $63 million in fiscal year 2012-13. Motor fuel consumption is also expected to decline slightly as gas prices are anticipated to remain elevated and the motor fleet continues to become more fuel efficient. The highway use tax is expected to increase 1.3% over revised fiscal year 2011-12 as the economy and consumer spending continues to improve. Title registrations are also expected to post mod­est gains.
Motor Fuel Tax 45% Highway Use 46% Certificate of Title Fees 8% Miscellaneous Title Fees 1% Investment Income 0% Highway Trust Fund Revenue Collections 2012-13
Figure 6
Highway Trust Fund
Revenue Collections
2012-1322
Source2008-092009-102010-112011-122011-12Percent 2012-13 2012-13Percent ActualActualActualBudgetRevisedChangeBudgetRevisedChangeFuel Taxes and Fees Motor Fuel Tax377.5$ 381.9$ 409.6$ 472.7$ 456.1$ 11.3%506.5$ 471.2$ 3.3% Highway Use441.4 440.5 470.1 474.3 483.7 2.9%485.0 490.0 1.3% Certificate of Title Fees72.1 72.6 76.0 77.4 77.0 1.3%79.1 78.6 2.1% Miscellaneous Title Fees13.9 13.1 13.2 15.0 13.8 4.9%15.3 14.5 5.0% Subtotal904.9$ 908.1$ 968.9$ 1,039.4$ 1,030.6$ 6.4%1,085.9$ 1,054.3$ 2.3%Interest on Investments0.9$ 1.0$ 1.0$ 1.0$ 1.3$ 32.1%1.0$ 1.0$ -23.1%Total Highway Trust Fund Availability905.8$ 909.2$ 969.9$ 1,040.4$ 1,031.9$ 6.4%1,086.9$ 1,055.3$ 2.3%Totals may differ from the sum of their parts due to rounding.Highway Trust Fund RevenueActuals and Estimates($ Millions)
Table 723
Public Education The University of North Carolina Community Colleges
Investing in Our Future:
Education
Public Education
• Restores $503 million LEA flex cut, which retains/reinstates an estimated 9,800 teachers,
teacher assistants, and other school-based positions.
• Reduces class size in grades K-3, providing 1,671 additional teachers to maximize
achievement in the early grades.
• Restores the legislative cut to elementary school diagnostics to ensure basic deficiencies
in reading are addressed before students move to middle school.
• Approves $7.5 million to provide diagnostics in grades 8-12 to identify students in need
of assistance, and guide individualized student instructional strategies to ensure stu-dents
graduate career and college ready.
• Reinstates mentoring funds to support 1st and 2nd year teachers in order to accelerate
skill and knowledge development.
Community Colleges
• Restores $55 million to the community colleges from the management flexibility reduc-tions.
• Provides funds to allow honorably discharged veterans to qualify for resident tuition if
last stationed in North Carolina and discharged on or after July 1, 2011.
• Appropriates $1 million for film industry workforce training courses for production crews
in North Carolina.
University System
• Approves $17.4 million to fully fund the enrollment growth request of 680 additional
students for 2012-13.
• Provides $35 million for UNC Need-Based Financial Aid to restore aid for needy students
that had been provided in 2010-11 but not funded in 2011-13.
• Provides funds to allow honorably discharged veterans to qualify for resident tuition if
last stationed in North Carolina and discharged on or after July 1, 2011.
• Establishes a UNC performance accountability fund of $8 million, which includes reten-tion,
graduation, efficiency and financial measures, targets, and results prominently
displayed on UNC System public websites.
• Provides $5 million to recruit and retain critical faculty positions across the UNC System.
• Creates a NC Teacher Institute, housed at the NCSU Friday Institute, to establish a state-wide
network of online and in-person high-quality, comprehensive professional devel-opment
for teachers.
24
North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Public Education
25
Public Education (13510) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $9,855,223,491 $562,253,440 $10,417,476,931 5.7 %Receipts 2,411,101,391 -2,411,101,391 0.0 %Appropriation $7,444,122,100 $562,253,440 $8,006,375,540 7.6 %Positions 1,065.352 -1,065.352 0.0 % Appropriation Items -- Recommended Adjustments Technical Adjustments 2012-13State Public School Fund 1. Average Teacher Salary Adjustment Budgeted average annual salaries are revised using 2011-12 sixth pay period salaries as the base. This adjustment is made annually after reviewing budgeted salary projections for all certified personnel. Typically, because of turnover in these positions, the actual salaries are lower than budgeted salaries, and savings can be realized without reducing teacher salaries. Appropriation ($85,670,329)2. Average Daily Membership (ADM) Adjustment This appropriation ensures adequate funding for positions and instructional supplies that are allocated to LEAs based on ADM. ADM is currently budgeted for 1,480,991 in 2011-12 and 1,494,877 projected for 2012-13. Recent data result in an overall net decrease of 2,084 from the 2012-13 projected ADM. Total funded ADM for 2012-13 is 1,492,793. Appropriation ($6,423,088)Total Recommended Technical AdjustmentsRecurring Requirements ($92,093,417) Receipts - Appropriation ($92,093,417) Number of Positions - North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Public Education
26
Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions - Reductions 2012-13Reductions 1. 10th Grade Writing Test This item eliminates the 10th grade writing test to be replaced by the high school diagnostic assessments, which provide more detailed student-specific results across multiple subjects to guide instruction. The Governor recommends that these savings are redirected to fund EXPLORE (8th grade), PLAN (10th grade), ACT (11th grade), and WORKKEYS (12th grade Career and Technical Education). Appropriation ($2,001,534)Total Recommended Reductions Recurring Requirements ($2,001,534) Receipts - Appropriation ($2,001,534) Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions - Expansion 2012-13State Public Fund The following strategies will ensure that classrooms and schools are staffed with effective teachers, teacher assistants, and other school-based personnel essential to student success and safety. 1. Restore Local Education Agency (LEA) Flexibility Adjustment Substantial position losses in public schools have resulted from the flexibility reductions taken by the legislature. This item restores the reduction with the goal to protect school-based jobs and maintain class size to increase student achievement. This restoration retains or reinstates an estimated 9,800 teacher, teacher assistant, and other school-based positions. This has been North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Public Education
27
partially managed with the federal dollars from the Education Jobs grant that expires September 30, 2012, potentially forcing teacher position losses that would result in increased class size. Appropriation $503,067,940 2. Salary Increase for Teachers and LEA Employees Public school employee salaries have been frozen since 2009-10. This item provides 25% of the cost of a salary step for certified personnel, including teachers, principals, counselors, etc. and a 1.8% salary increase for noncertified employees. The remaining cost for this salary increase appears in the Statewide Reserves Section of this document. Appropriation $21,903,108 Maximize Student Achievement The Governor is committed to using technology to transform the way we educate our children and help ensure that children can read on grade level by the end of third grade. The following strategies increase support for individualized instruction for students so they remain on grade level and graduate ready for a career, college, or technical training. 1. Reduce Class Size in Grades K-3 This item reduces class size in grades K-3 by one and provides 1,671 additional teachers. Current ratios are 1:18 in kindergarten and 1:17 in grades 1-3. Appropriation $92,885,877 2. Diagnostics-Elementary This item restores the recurring reduction that eliminated support for reading diagnostics taken by the General Assembly in Session Law 2011-145 for 2011-12. The recommended appropriation supports professional development for teachers in reading strategies and the purchase of mobile assessment devices. This initiative is critical to the delivery of key instructional intervention strategies to personalize instruction and improve student reading achievement. These funds also support the renewal of student subscriptions for the data and assessments in the 480 pilot schools and the purchase of student subscriptions in an additional 182 schools with a performance composite of less than 80%. Appropriation $10,000,000 3. Diagnostics-Grades 8-12 Funding is provided for EXPLORE (8th grade), PLAN (10th grade, the ACT (11th grade), and WORKKEYS (grade 12 Career and Technical Education). The results of these assessments provide information that can guide the use of individualized student instructional strategies in English, Writing, Math and Science to ensure students are career and college ready. EXPLORE, administered to 8th graders, is aligned to the Common Core and assesses students' knowledge and skills to be successful in high school. PLAN is a diagnostic assessment that identifies areas of needed improvement and is a strong predictor of success on the ACT. The ACT is considered an accurate gauge of school achievement and career and college readiness. Results can also be used to identify students in need of assistance and to guide instruction to ensure adequate preparation for college and careers. WORKKEYS, administered to 12th graders who have completed a four-course CTE sequence, measures the acquisition of skills critical to job success. Full implementation of this initiative will lead to a decreased need for developmental courses in higher education. The total cost of this item is offset by $2 million realized from the elimination of the 10th grade writing test. Appropriation $7,500,000 North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Public Education
28
Teacher Recruitment, Training, and Support Delivery of the following initiatives will integrate technology with other research-based best practices to promote efficiencies and ensure that teachers receive the professional development both face to face and virtually, as well as support to acquire and apply 21st century skills in the classroom. 1. Teaching Fellows The Teaching Fellows program provides scholarships to talented high school graduates in order to recruit high-performing students into the teaching profession. Historically, the program has awarded 500 new scholarships per year. There are currently approximately 2,000 Teaching Fellows scholars pursuing a teacher education degree at 17 public or private university and college campuses across the state. The Teaching Fellows program was enacted by the General Assembly in 1986. The 2011 General Assembly eliminated funds for this program beginning in 2012-13. The Governor recommends restoring the funding to ensure continuation of this program that enables the state to recruit talented teachers for North Carolina classrooms. Appropriation $3,475,000 2. Mentoring These funds are allocated so that 1st and 2nd year teachers, and 1st year instructional support personnel can receive mentors in order to accelerate skill and knowledge acquisition, ultimately promoting student achievement. The General Assembly eliminated this funding on a nonrecurring basis for 2010-11 and a recurring basis for 2011-13. It is recommended that recurring funding be fully restored so that beginning teachers receive the kind of instructional support necessary to be successful in the classroom. Appropriation $9,214,190 3. North Carolina Center for the Advancement of Teaching (NCCAT) NCCAT provides professional development to North Carolina teachers and school administrators. Opportunities include beginning teacher seminars to reduce attrition and strengthen instructional practices that accelerate student learning; renewal seminars to support retention of highly qualified, skilled teachers; and advanced seminars to increase innovation and the application of best practices in the classroom--all with the ultimate purpose of increasing student academic achievement. This item restores the funding for personnel and operating reductions enacted by the 2011 General Assembly. Appropriation $3,000,000 4. Teacher Cadet The Teacher Cadet curriculum provides high school juniors and seniors interested in the teaching profession a preview of all facets of the classroom, school, and broader education system. Student involvement in content, application, and observation in various settings allows participants to make an informed commitment to the pursuit of a teaching credential. As a result, this curriculum can serve as a model for teacher recruitment. State support for this program was eliminated by the 2011 General Assembly. This item fully restores the reduction. Appropriation $127,500 North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Public Education
29
K-12 Support for Military Students North Carolina, with six major military installations and the fourth largest number of military personnel in the nation, is a member of the Interstate Compact on Education Opportunities for Military Families, along with 10 other states. The Governor is committed to maintaining North Carolina's status as the most military-friendly state in America. The following initiatives provide focused support for the unique needs of military students. 1. Student 2 Student This initiative, a program of the Military Child Education Coalition, connects military-connected and civilian students in middle and high school to assist with transition and peer support. Funding supports the attendance of two students, two adult advisors, and one School Liaison Officer from each school at a train the trainer session. Working with school leaders, session participants train additional individuals within their school to implement the strategies effective in assisting military-connected students with school success. This appropriation funds 30 total locations in 16 local school administrative units (LEAs) at a cost of $17K per location. Nine LEAs (Bladen, Carteret, Lee, Moore, Sampson, Scotland, Pender, Richmond, and Robeson) receive funding for one high school; seven LEAs (Craven, Cumberland, Harnett, Hoke, Onslow, Pasquotank, and Wayne) receive funding for one high school and two additional locations for high schools and/or middle schools. The LEAs will distribute funds to individual schools based on a combination of the highest active duty military-connected ADM students and demonstrated need. Appropriation $510,000 2. Regional Military Counselors Regional military counselors perform military culture training for counselors, teachers and administrators, provide deployment support to schools, assist with crisis intervention, connect students with community agencies, and provide information on student opportunities, such as summer camps and college scholarships. Funds in the amount of $240,000 were initially appropriated for four counselors, one each in Cumberland, Craven, Onslow, and Wayne counties in Session Law 2007-323. This initiative funds five additional military counselors: two for Onslow County schools, and 3 for Cumberland County schools due to the large population of military-connected students in these districts. Appropriation $315,188 Department of Public Instruction 1. Residential Schools The residential schools received a $5.5 million legislative reduction for fiscal year 2012-13. This partial restoration of $3.5 million will assist the Department of Public Instruction (DPI) in keeping all three residential schools (NC School for the Deaf, Eastern School for the Deaf, and Governor Morehead School) open, restoring personnel and operating reductions. Continued operation of the schools will also require DPI to collect rental fees and cut vacant positions at the schools to ensure there is adequate budget for this purpose. A special provision allows the department to retain and expend the rental receipts specifically for the purpose of operating the schools, but prohibits the use of these receipts for administrative expenditures incurred by the department. Appropriation $3,500,000 North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Public Education
30
2. Governor's Schools This five week residential program for academically or intellectually gifted North Carolina high school students is the oldest in the nation. Rising seniors are taught and mentored by scholars and artists from across the country. This item restores the legislative reduction taken in Session Law 2011-145. The Department is permitted to charge tuition to cover expenses associated with operating the schools on the Meredith and Salem College campuses. Appropriation $849,588 Total Recommended Expansion Recurring Requirements $656,348,391 Receipts - Appropriation $656,348,391 Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions -Total RecommendedAdjustments forPublic Education 2012-13Recurring Requirements$562,253,440 Receipts - Appropriation$562,253,440 Number of Positions-Nonrecurring Requirements- Receipts - Appropriation- Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
The University of North Carolina
31
The University of North Carolina (160xx) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $3,950,861,106 $145,669,043 $4,096,530,149 3.7 %Receipts 1,399,188,408 584,681 1,399,773,089 0.0 %Appropriation $2,551,672,698 $145,084,362 $2,696,757,060 5.7 %Positions 37,416.440 231.700 37,648.140 0.6 % Appropriation Items -- Recommended Adjustments Expansion 2012-13Strengthening Our Universities 1. Restore Management Flexibility Reduction It is recommended that the scheduled additional management flexibility reduction in 2012-13 be restored to the University of North Carolina. Appropriation $9,184,767 2. Enrollment Growth This recommendation fully funds the requirements for regular term and distance education enrollment growth in the university system. The projected growth over the 2011-12 budgeted student FTE of 200,696 is 680 FTE (0.3%) in 2012-13. Combined total increases to receipts and appropriation provide funding for an additional 88 faculty FTE. Requirements $24,294,287 Receipts $6,859,482 Appropriation $17,434,805 3. UNC Performance Accountability Funding These funds shall be used to incentivize, reward, and enable UNC institutions to meet established performance goals. Performance goals shall include retention, graduation, efficiency and financial measures. Performance targets and data shall be prominently displayed on the UNC System public website and on each institution's public website. Appropriation $8,000,000 North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
The University of North Carolina
32
4. Faculty Recruitment and Retention Fund Outstanding faculty is the lifeblood of any great university. The Faculty Recruitment and Retention Fund has had a significant impact on the recruitment and retention of outstanding faculty at each of the UNC institutions. Since 2006-07, more than 300 faculty have been retained or recruited. The growing competitiveness of the academic job market requires that these efforts be continued. Appropriation $5,000,000 5. Building Reserves Funding shall be allocated for essential costs associated with the operation and maintenance of facilities scheduled to open in 2012-13 at UNC institutions. Appalachian State University 180,668 Number of Positions - Recurring 3.000 East Carolina University 3,547,550 Number of Positions - Recurring 47.500 Fayetteville State University 337,691 Number of Positions - Recurring 11.800 North Carolina State University 2,350,056 Number of Positions - Recurring 30.000 UNC-Greensboro 54,590 Number of Positions - Recurring .800 UNC-Wilmington 331,730 Number of Positions - Recurring 8.800 Appropriation $6,802,285 Appalachian State University 80,208 East Carolina University 899,737 Fayetteville State University 135,965 North Carolina State University 996,196 UNC-Greensboro 48,944 UNC-Wilmington 102,308 Appropriation -Nonrecurring $2,263,358 Number of Positions 101.900 North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
The University of North Carolina
33
6. NCSU Hunt Library North Carolina State University's James B. Hunt Jr. Library will serve as an intellectual and social forum for the research-oriented campus. As NCSU's second library, it will greatly expand the university's ability to serve the community's academic needs while taking advantage of Centennial Campus's focus on science and technology. Funding shall support operations and 27 new FTE to fully staff the facility, which will house two million additional volumes. Appropriation $2,011,328 Number of Positions 27.000 7. Special Focus Institutions These funds shall be appropriated to three smaller institutions specializing in liberal arts, performing arts, science and math. These institutions may use these funds to enhance their curriculum and campus offerings. The UNC School of the Arts shall use $50,000 to emphasize their School of Filmmaking as a center of excellence. UNC Asheville 1,556,495 UNC School of the Arts 2,485,144 NC School of Science and Mathematics1,636,268 Appropriation $5,677,907 8. Improving Retention and Graduation Rates The University of North Carolina is increasingly focused on ensuring that students entering UNC graduate with a meaningful degree. Funding for the three UNC institutions listed below shall be focused on 1st year, underrepresented and transfer students. Programs may include advising, retention, summer bridge, supplemental instruction and similar initiatives. North Carolina Central University 782,650 UNC-Pembroke 330,694 Winston-Salem State University 526,661 Appropriation $1,640,005 UNC-Pembroke 86,000 Appropriation -Nonrecurring $86,000 North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
The University of North Carolina
34
9. NC Teacher Institute at the Friday Institute for Education Innovation Training great teachers is critical to providing an education that enables our children to compete in the global economy. The North Carolina Teacher Institute shall establish a statewide network of online and in-person high-quality, comprehensive professional development for teachers so that they will have the knowledge and skills necessary to use 21st century tools and resources to teach 21st century content. This network shall include professional development programs that focus on teaching strategies for teachers with a priority on literacy, mathematics, science and technology integration. The NC Teacher Institute will be housed at the Friday Institute for Education Innovation at North Carolina State University and shall be advised by a teacher advisory council composed of practicing teachers. Appropriation $4,500,000 10. Restore Funds to the Center for Public Television This recommendation restores funds to the University of North Carolina Center for Public Television (UNC-TV) on a recurring basis. This program was subject to continuation review by the department per directions of the NC General Assembly in 2011-12. Requirements $10,583,340 Receipts $25,199 Appropriation $10,558,141 Number of Positions 102.800 11. NC Research and Education Network (NCREN) This recommendation restores the funding for the NC Research and Education Network to its 2010-11 level. Appropriation $500,000 12. Salary Increase This item provides 25% of the cost for the 1.8% salary increase for UNC System employees. The remaining cost of this salary increase appears in the Statewide Reserves section of this document. Appropriation $11,576,469 Need-Based Financial Aid 1. UNC Need-Based Financial Aid One of the Governor's priorities is ensuring that working families have access to an affordable education for their children. The need for financial aid targeted towards students with middle-income families was identified in a 1997-1998 study. This need has become greater over time because of the rising costs of education and recessionary effects on family income. A $35 million nonrecurring appropriation was provided in 2010-11. The Governor recommends restoring these funds to serve students who have a demonstrated need for financial aid. Appropriation $35,000,000 North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
The University of North Carolina
35
2. Need-Based Scholarships for Private College Students One of the Governor's priorities is ensuring that working families have access to an affordable education for their children. Additional funds are appropriated for the Need-based Scholarships for Students Attending Private Institutions of Higher Education. These funds shall be awarded to North Carolina resident students who have demonstrated financial need. The 2011 General Assembly created this program to replace the Legislative Tuition Grant and the State Contractual Scholarship Fund. Appropriation $4,500,000 Building Our Economic Future 1. NC Research Campus An additional $3 million shall be appropriated to the NC Research Campus in Kannapolis. Of these funds, $310,000 shall be used to pay for the rental costs of space leased at the Campus by Appalachian State University. The remaining funds shall be used to hire additional researchers and provide necessary equipment and supplies. Seven UNC institutions are involved in collaborative research at the NC Research Campus, and this funding will increase the state's total annual commitment to $26.3 million. Appropriation $3,000,000 2. UNC Research Commercialization Fund The Governor wants to help ensure that research at our public universities can be turned into jobs for North Carolinians. The discoveries and innovations of UNC researchers have great potential value in the global marketplace. UNC shall use funds to support activities that accelerate the development and launch of commercial products derived from university research. Competitive funds shall be awarded to support proof of concept activities and other related costs for commercial opportunities that demonstrate potential economic benefits for North Carolina. Appropriation $2,000,000 3. Joint School of Nanoscience and Nanoengineering The Governor is committed to growing 21st century jobs and supporting scientific research. The innovative fields of nanoscience and nanoengineering will play important roles in the 21st century economy. This item completes funding for the Joint School of Nanoscience and Nanoengineering (JSNN) between UNC-G and NC A&T. Funding shall be used for research personnel, supplies, and equipment. NC A&T will also use this funding to conduct outreach activities on behalf of JSNN. Appropriation $2,000,000 4. Charlotte Informatics Partnership The capture, analysis, and dissemination of large data sets is critical to 21st century business and research. The Charlotte Informatics Partnerships (CIP) coordinates informatics efforts between UNC-Charlotte and business leaders in banking, energy and healthcare. Expansion funding shall expand CIP efforts through the hiring of key faculty members in the College of Computing and Informatics. Appropriation $1,500,000 5. ECSU School of Aviation The aviation industry is a vital part of the regional economy in Northeastern North Carolina. The Elizabeth City State University School of Aviation shall use additional funding to create a new flight school, expanding its ability to provide a qualified avionics workforce. Funds will provide the necessary faculty and equipment needed for this program expansion. Appropriation $563,591 North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
The University of North Carolina
36
6. FSU Geospatial Analysis Instructional and Networking Laboratory The Geospatial Analysis, Instructional, and Networking (GAIN) Laboratory would serve as the nucleus of geospatial know-how used to disseminate training, nurture research, and provide technical support to students, staff, and faculty. Fayetteville State University has hired two geospatial sciences faculty members to lead the research and learning initiatives. These recommended funds will allow FSU to purchase needed technology and equipment and to hire a post-doctoral research associate. Appropriation $370,500 7. WCU Rapid Product Realization Western Carolina University's Center for Rapid Product Realization partners the manufacturing industry and entrepreneurs with the research and testing resources available at WCU. Mutually beneficial cooperation allows students to gain experience with product development and businesses to spend less time between idea and assembly line. Funding shall be used to hire research faculty and purchase equipment enhancements that will benefit partnerships with regional businesses. Appropriation $300,000 8. Center for Design Innovation Digital Technologies Pilot The Center for Design Innovation is a collaborative effort of the UNC School of the Arts, Winston-Salem State University, and Forsyth Technical Community College that facilitates design-focused creativity, research and entrepreneurial activity. These funds shall be used to develop a 5-year pilot program to instruct students in specialized software techniques at the center. This program shall build upon the existing courses at the partnering institutions. Program activities will include workshops, internships and mentoring for students. Students would begin in high school, transfer to Forsyth Technical Community College, and complete a four-year degree at the Center. Once this program is established, it may be considered for approval as a career pathway in Career and College Promise. Appropriation $400,000 Promoting Healthy Citizens 1. UNC-W Accelerated Nursing Program This 16-month program, based in Onslow County, shall be targeted towards non-nursing baccalaureate holders who are veterans, military personnel, or the spouses of military personnel. The program provides a faster pathway towards careers in nursing and serves the community by increasing the supply of qualified nursing professionals. UNC-Wilmington may use funds to hire additional faculty to create and implement this program. Appropriation $415,206 2. ASU College of Health Sciences Appalachian State University's College of Health Sciences and Allied Professions was created through the consolidation of five existing health-related programs. The College prepares students for one of many careers in the growing healthcare industry. Funding shall be used to enhance program offerings. Appropriation $500,000 North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
The University of North Carolina
37
3. ECU Brody School of Medicine Cardiovascular Sciences These funds shall be provided to East Carolina University's Brody School of Medicine. The School shall enhance their ability to conduct basic and translational research on cardiovascular disease, and to develop educational outreach programs to promote and encourage the awareness and prevention of cardiovascular disease throughout rural eastern North Carolina. Appropriation $1,000,000 4. UNC Chapel Hill School of Medicine Expansion Funds are recommended to expand the size of the medical school classes at UNC Chapel Hill's School of Medicine to address the shortage of physicians in North Carolina. These students would complete their first two basic science years in Chapel Hill, and the second two years in Charlotte or Asheville. The goal will be to train physicians who will practice in North Carolina's rural and under-served communities in needed specialties. Appropriation $1,000,000 Supporting Military Communities 1. Resident Tuition for Military Veterans and Dependents In recognition of their service and to maintain North Carolina's status as the most military-friendly state in America, the Governor recommends classifying certain military veterans (and their dependents) as resident students for tuition purposes. To qualify for resident tuition, the military veteran must have been last stationed at a military installation in North Carolina and honorably discharged on or after July 1, 2011. Requirements - Receipts ($6,300,000) Appropriation $6,300,000 2. UNC Partnership for National Security The UNC Partnership for National Security's activities include degree program development for service members and the defense industry; short courses, training, and subject matter expertise exchange; science and technology product development; and scholar support (internships for UNC system students, faculty research, senior service college fellows). This recommendation will finish the expansion of the UNC at Fort Bragg program and will create a similar program at Camp Lejeune. These funds would also further develop faculty and student advising capabilities to assist the Special Operations community. Appropriation $1,000,000 North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
The University of North Carolina
38
Total Recommended Expansion Recurring Requirements $143,319,685 Receipts 584,681 Appropriation $142,735,004 Number of Positions 231.700 Nonrecurring Requirements $2,349,358 Receipts - Appropriation $2,349,358 Time Limited Positions -Total RecommendedAdjustments forThe University of North Carolina 2012-13Recurring Requirements$143,319,685 Receipts 584,681 Appropriation$142,735,004 Number of Positions231.700 Nonrecurring Requirements$2,349,358 Receipts - Appropriation$2,349,358 Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Community Colleges
39
Community Colleges (16800) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $1,421,697,248 $29,707,805 $1,451,405,053 2.1 %Receipts 436,697,248 (23,797,092)412,900,156 (5.4)%Appropriation $985,000,000 $53,504,897 $1,038,504,897 5.4 %Positions 191.000 -191.000 0.0 % Appropriation Items -- Recommended Adjustments Technical Adjustments 2012-13Colleges - State Aid 1. Adjust Regular Term Enrollment Growth Funding This recommendation adjusts the funding for regular-term enrollment growth to reflect the decline in total enrollment at community colleges. The spring semester 2011-12 census from the North Carolina Community College System shows a total enrollment decrease of 2,663 full-time equivalent (FTE) students below the 2011-12 budgeted enrollment of 251,017. The 2012-13 budgeted enrollment is 248,354 FTEs, a 1.1% decrease below 2011-12. Curriculum enrollment decreased by 1,567 FTEs (or -0.8%), continuing education enrollment by 831 FTEs (or -2.8%), and basic skills enrollment by 265 FTEs (or -1.2%). The 2011 General Assembly originally budgeted funds in 2012-13 for an estimated growth of an additional 3,672 FTE. This recommendation eliminates this additional funding and also reduces budgeted tuition receipts to reflect the total receipt collections anticipated from actual 2012-13 student enrollment. Requirements ($31,705,796) Receipts ($19,597,092) Appropriation ($12,108,704)Total Recommended Technical AdjustmentsRecurring Requirements ($31,705,796) Receipts (19,597,092) Appropriation ($12,108,704) Number of Positions - North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Community Colleges
40
Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions - Expansion 2012-13Supporting Our Military Communities 1. Resident Tuition for Military Veterans and Dependents In recognition of their service and to maintain North Carolina's status as the most military-friendly state in America, the Governor recommends classifying certain military veterans (and their dependents) as resident students for tuition purposes. To qualify for resident tuition, the military veteran must have been last stationed at a military installation in North Carolina and honorably discharged on or after July 1, 2011. Requirements - Receipts ($4,200,000) Appropriation $4,200,000 Strengthening Our Community Colleges 1. Restore Management Flexibility Cut It is recommended that funds be restored to North Carolina's community colleges. The North Carolina Community College System has received management flexibility budget reductions since 2009-10. The Governor supports investing in community colleges so they can develop tomorrow's workforce. Appropriation $55,000,000 2. Salary Increase The Governor recommends a 1.8% salary increase for community college employees. This recommendation would provide 25% of the funds needs for this salary increase. The remaining cost of this salary increase appears in the Statewide Reserves section of this document. Appropriation $5,288,601 Building Our Economic Future 1. Military Business Center In support of the Governor's longstanding commitment to build the state's defense and aerospace economy, the Governor recommends funds to restore the 2011-12 reduction made to the Military Business Center at Fayetteville Technical Community College. The Military Business Center works with communities and companies to develop and obtain federal business opportunities, including the US military at NC military installations. Appropriation $125,000 North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Community Colleges
41
2. Film Industry Workforce Training The film, television, and commercial industry is booming in North Carolina and creating jobs and stimulating economic growth. This recommendation will evenly distribute funds to Cape Fear Community College and Forsyth Technical Community College to train up to 400 workers for production crews. These funds shall be used to develop short-term courses in ten specific skills areas, including set construction; set dressing and props; and work with paint and plaster, wardrobe, cameras, grip, and on-set electrical work, and production office support. These courses will be taught by local film industry professionals and shall be targeted towards production crews of television shows or motion pictures being filmed in North Carolina. Appropriation -Nonrecurring $1,000,000 Total Recommended Expansion Recurring Requirements $60,413,601 Receipts (4,200,000) Appropriation $64,613,601 Number of Positions -Nonrecurring Requirements $1,000,000 Receipts - Appropriation $1,000,000 Time Limited Positions -Total RecommendedAdjustments forCommunity Colleges 2012-13Recurring Requirements$28,707,805 Receipts (23,797,092) Appropriation$52,504,897 Number of Positions-Nonrecurring Requirements$1,000,000 Receipts - Appropriation$1,000,000 Time Limited Positions- 42
43
General Assembly Office of the Governor Office of State Budget and Management
North Carolina Housing Finance Authority Office of the Lieutenant Governor
Department of Secretary of State Office of the State Auditor Department of State Treasurer
Department of Insurance Department of Administration Office of the State Controller
Department of Revenue Department of Cultural Resources Roanoke Island Commission
State Board of Elections Office of Administrative Hearings
Investing in Our Future:
General Government
• Invests in our military service members and their families through grants to military
installations that support community service and quality of life programs, and through
funding to enable military base communities to plan and position themselves favorably
in preparation for potential base realignment and closure (BRAC) actions.
• Compensates citizens who are verified victims of the state’s former Eugenics Board pro-gram,
which involuntarily sterilized North Carolinians during the 20th century, and con-tinues
operations of the N.C. Justice for Sterilization Victims Foundation, which provides
ongoing outreach and clearinghouse services to eugenics victims.
• Staffs the Department of Revenue appropriately to ensure the quality and accuracy of
revenue collections, and helps citizens using the Combined Motor Vehicle Registration
Renewal and Property Tax Collection System.
• Restores funds needed for the public to visit and enjoy historic Tryon Palace and the
state’s Transportation Museum.
• Improves the state’s voting system by matching federal funds available to North Caro-lina
through the Help America Vote Act.
• Achieves savings throughout general government agencies through a flexibly man-aged,
tiered approach that considers each agency’s level of resources.
44North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
General Assembly
45
General Assembly (11000) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $51,652,065 $3,897,796 $55,549,861 7.5 %Receipts 1,547,857 2,227,166 3,775,023 143.9 %Appropriation $50,104,208 $1,670,630 $51,774,838 3.3 %Positions 287.250 31.600 318.850 11.0 % Appropriation Items -- Recommended Adjustments Reductions 2012-131. Management Flexibility Reserve This recommendation achieves savings throughout general government agencies through a flexibly managed, tiered approach that considers each agency's level of resources. This represents a 1.8% reduction for this agency. Appropriation ($901,876)Total Recommended Reductions Recurring Requirements ($901,876) Receipts - Appropriation ($901,876) Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions - North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
General Assembly
46
Expansion 2012-131. Learning Resources and Subscriptions This recommendation restores funding eliminated by the 2011 General Assembly for Legislative Library Learning Resources and Subscriptions. Requirements -Nonrecurring $175,800 Receipts -Nonrecurring $175,800 Appropriation -Nonrecurring -2. Restore Operating Budget in Information Systems Division This recommendation restores funding eliminated by the 2011 General Assembly for the Information Systems Division. Requirements -Nonrecurring $2,051,366 Receipts -Nonrecurring $2,051,366 Appropriation -Nonrecurring -3. Restore Facilities Services in Building and Maintenance Division This recommendation restores funds to the Building and Maintenance Division on a recurring basis. This program was subject to continuation review by the General Assembly's Fiscal Research Division in FY 2011-12. Appropriation $2,572,506 Number of Positions 31.600 Total Recommended Expansion Recurring Requirements $2,572,506 Receipts - Appropriation $2,572,506 Number of Positions 31.600 Nonrecurring Requirements $2,227,166 Receipts 2,227,166 Appropriation - Time Limited Positions -North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
General Assembly
47
Total RecommendedAdjustments forGeneral Assembly 2012-13Recurring Requirements$1,670,630 Receipts - Appropriation$1,670,630 Number of Positions31.600 Nonrecurring Requirements$2,227,166 Receipts 2,227,166 Appropriation- Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Office of the Governor
48
Office of the Governor (13000) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $5,438,279 ($47,412)$5,390,867 (0.9)%Receipts 697,122 -697,122 0.0 %Appropriation $4,741,157 ($47,412)$4,693,745 (1.0)%Positions 62.717 -62.717 0.0 % Appropriation Items -- Recommended Adjustments Reductions 2012-131. Management Flexibility Reserve This recommendation achieves savings throughout general government agencies through a flexibly managed, tiered approach that considers each agency's level of resources. This represents a 1% reduction for this agency. Appropriation($47,412)Total Recommended Reductions Recurring Requirements ($47,412) Receipts - Appropriation ($47,412) Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions -North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Office of the Governor
49
Total Recommended Adjustments for Office of the Governor 2012-13Recurring Requirements($47,412) Receipts - Appropriation($47,412) Number of Positions-Nonrecurring Requirements- Receipts - Appropriation- Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Office of State Budget and Management
50
Office of State Budget and Management (13005) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $6,100,484 $1,218,071 $7,318,555 20.0 %Receipts 251,821 -251,821 0.0 %Appropriation $5,848,663 $1,218,071 $7,066,734 20.8 %Positions 59.000 5.000 64.000 8.5 % Appropriation Items -- Recommended Adjustments Reductions 2012-131. Management Flexibility Reserve This recommendation achieves savings throughout general government agencies through a flexibly managed, tiered approach that considers each agency's level of resources. This represents a 1% reduction for this agency. Appropriation($58,487)Total Recommended Reductions Recurring Requirements ($58,487) Receipts - Appropriation ($58,487) Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions - North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Office of State Budget and Management
51
Expansion 2012-131. Improve Medicaid Budget Analysis and Monitoring The Governor recommends targeting resources to projecting both reimbursements and expenditures for Medicaid. Evaluating assumptions and projections regarding the increasing eligible population as well as changing demographics of the Medicaid population are two areas requiring attention. The addition of two analysts to provide in depth budget analysis, projection, and monitoring is recommended to ensure that sufficient focus is directed to this increasingly important driver of the State budget. Appropriation$239,474 Number of Positions2.000 2. Ensure Adequate Support for IT Applications The Governor recommends increased funding to support IT operations for statewide budget and management activities, including ongoing operation of the State's new Integrated Budget Information System (IBIS). During previous budget cycles, OSBM's IT operating budget has been reduced to unrealistically low levels, limiting OSBM's ability to maintain mission critical systems and replace outdated technology. In addition to core budget functions, OSBM's applications provide capabilities for revenue and expenditure forecasting, demographic and economic analysis, improved transparency and accountability in state government, internal auditing, regulatory analysis, and better overall management of State government operations and financial resources. Appropriation$945,366 Number of Positions2.000 3. Increase Internal Audit Capacity The Governor recommends an increase of one Auditor to enhance OSBM's audit capacity as a means of ensuring service to smaller agencies as well as the larger, more complex agencies without their own internal auditing staff, such as the Department of Commerce. Appropriation$91,718 Number of Positions1.000 Total Recommended Expansion Recurring Requirements $1,276,558 Receipts - Appropriation $1,276,558 Number of Positions 5.000 Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions -North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Office of State Budget and Management
52
Total Recommended Adjustments for Office of State Budget and Management 2012-13Recurring Requirements$1,218,071 Receipts - Appropriation$1,218,071 Number of Positions5.000 Nonrecurring Requirements- Receipts - Appropriation- Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
OSBM - Reserve for Special Appropriations
53
OSBM - Reserve for Special Appropriation (13085) Total Appropriations and Positions 2012-13 Certified NetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $440,612 $1,100,000 $1,540,612 249.7 %Receipts - -- Appropriation $440,612 $1,100,000 $1,540,612 249.7 %Positions - -- Appropriation Items -- Recommended Adjustments Expansion 2012-131. Military Morale and Welfare Fund The Governor recommends re-establishing this program of grants to military installations throughout the state to provide community service and quality of life programs for military members and their families. Appropriation - Nonrecurring$500,000 2. Base Realignment and Closure (BRAC) Preparation The Governor understands how important our military communities are to North Carolina. The Governor recommends funding to support the efforts of the State and military base communities to plan and position themselves favorably in preparation for potential future BRAC actions and/or Federal budget actions that could impact NC installations. Funds will support community planning, strategic communication, training range encroachment, and other items that may be identified in coordination with military and Department of Defense leadership. Appropriation - Nonrecurring$500,000 3. Reserve for Sterilization Victims Appeals Process: NC Industrial Commission The Governor recommends establishing a reserve fund to cover additional costs incurred by the North Carolina Industrial Commission to review and determine appeals claims by Sterilization Victims under G.S. 143-291. Appropriation - Nonrecurring$100,000 North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
OSBM - Reserve for Special Appropriations
54
Total Recommended Expansion Recurring Requirements - Receipts - Appropriation - Number of Positions -Nonrecurring Requirements $1,100,000 Receipts - Appropriation $1,100,000 Time Limited Positions -Total RecommendedAdjustments forOSBM - Reserve for Special Appropriation 2012-13Recurring Requirements- Receipts - Appropriation- Number of Positions-Nonrecurring Requirements$1,100,000 Receipts - Appropriation$1,100,000 Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
North Carolina Housing Finance Agency
55
North Carolina Housing Finance Agency (13010) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $9,673,051 $30,503,269 $40,176,320 315.3 %Receipts -30,600,000 30,600,000 Appropriation $9,673,051 ($96,731)$9,576,320 (1.0)%Positions --- Appropriation Items -- Recommended Adjustments Reductions 2012-131. Management Flexibility Reserve This recommendation achieves savings throughout general government agencies through a flexibly managed, tiered approach that considers each agency's level of resources. This represents a 1% reduction for this agency. Appropriation ($96,731)Total Recommended Reductions Recurring Requirements ($96,731) Receipts - Appropriation ($96,731) Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions - North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
North Carolina Housing Finance Agency
56
Expansion 2012-131. National Mortgage Settlement - Housing Finance Agency This recommendation appropriates $30.60 million from the National Mortgage Settlement to be provided to the North Carolina Housing Finance Agency to be distributed as follows: (1) $19.12 million to be allocated to housing counseling providers to ensure that North Carolina homeowners receive the benefits due under this Consent Judgment, and to ensure the availability of homeownership and foreclosure prevention counseling services in North Carolina; (2) $11.47 million to be allocated to legal services providers in North Carolina for legal representation and assistance to North Carolinians in foreclosure or other housing or lending-related matters. Requirements -Nonrecurring $30,600,000 Receipts -Nonrecurring $30,600,000 Appropriation -Nonrecurring -Total Recommended Expansion Recurring Requirements - Receipts - Appropriation - Number of Positions -Nonrecurring Requirements $30,600,000 Receipts 30,600,000 Appropriation - Time Limited Positions -North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
North Carolina Housing Finance Agency
57
Total RecommendedAdjustments forNorth Carolina Housing Finance Agency 2012-13Recurring Requirements($96,731) Receipts - Appropriation($96,731) Number of Positions-Nonrecurring Requirements$30,600,000 Receipts 30,600,000 Appropriation- Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Office of the Lieutenant Governor
58
Office of the Lieutenant Governor (13100) Total Appropriations and Positions 2012-13 Certified NetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $695,324 $0$695,324 0.0 %Receipts - -- Appropriation $695,324 $0$695,324 0.0 %Positions 8.000 -8.000 0.0 % North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of Secretary of State
59
Department of Secretary of State (13200) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $11,519,000 ($159,818)$11,359,182 (1.4)%Receipts 864,437 -864,437 0.0 %Appropriation $10,654,563 ($159,818)$10,494,745 (1.5)%Positions 176.750 -176.750 0.0 % Appropriation Items -- Recommended Adjustments Reductions 2012-131. Management Flexibility Reserve This recommendation achieves savings throughout general government agencies through a flexibly managed, tiered approach that considers each agency's level of resources. This represents a 1.5% reduction for this agency. Appropriation($159,818)Total Recommended Reductions Recurring Requirements ($159,818) Receipts - Appropriation ($159,818) Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions -North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of Secretary of State
60
Total RecommendedAdjustments forDepartment of Secretary of State 2012-13Recurring Requirements($159,818) Receipts - Appropriation($159,818) Number of Positions-Nonrecurring Requirements- Receipts - Appropriation- Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Office of the State Auditor
61
Office of the State Auditor (13300) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $16,593,145 ($160,141)$16,433,004 (1.0)%Receipts 5,917,110 -5,917,110 0.0 %Appropriation $10,676,035 ($160,141)$10,515,894 (1.5)%Positions 180.000 -180.000 0.0 % Appropriation Items -- Recommended Adjustments Reductions 2012-131. Management Flexibility Reserve This recommendation achieves savings throughout general government agencies through a flexibly managed, tiered approach that considers each agency's level of resources. This represents a 1.5% reduction for this agency. Appropriation($160,141)Total Recommended Reductions Recurring Requirements ($160,141) Receipts - Appropriation ($160,141) Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions -North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Office of the State Auditor
62
Total RecommendedAdjustments forOffice of the State Auditor 2012-13Recurring Requirements($160,141) Receipts - Appropriation($160,141) Number of Positions-Nonrecurring Requirements- Receipts - Appropriation- Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of State Treasurer
63
Department of State Treasurer (13410) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $44,574,188 $1,016,001 $45,590,189 2.3 %Receipts 37,952,438 1,082,219 39,034,657 2.9 %Appropriation $6,621,750 ($66,218)$6,555,532 (1.0)%Positions 357.440 1.000 358.440 0.3 % Appropriation Items -- Recommended Adjustments Reductions 2012-131. Management Flexibility Reserve This recommendation achieves savings throughout general government agencies through a flexibly managed, tiered approach that considers each agency's level of resources. This represents a 1% reduction for this agency. Appropriation ($66,218)Total Recommended Reductions Recurring Requirements ($66,218) Receipts - Appropriation ($66,218) Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions - North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of State Treasurer
64
Expansion 2012-131. State and Local Government Finance Division (SLGFD) System Automation Project This recommendation authorizes the SLGFD to use previously collected fees to support the implementation of an automated debt management system. Requirements $200,419 Requirements -Nonrecurring $881,800 Receipts $200,419 Receipts -Nonrecurring $881,800 Appropriation - Number of Positions 1.000 Total Recommended Expansion Recurring Requirements $200,419 Receipts 200,419 Appropriation - Number of Positions 1.000 Nonrecurring Requirements $881,800 Receipts 881,800 Appropriation - Time Limited Positions -North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of State Treasurer
65
Total RecommendedAdjustments forDepartment of State Treasurer 2012-13Recurring Requirements$134,201 Receipts 200,419 Appropriation($66,218) Number of Positions1.000 Nonrecurring Requirements$881,800 Receipts 881,800 Appropriation- Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
State Treasurer - Retirement for Fire and Rescue Squad Workers
66
State Treasurer - Retirement for Fire and Rescue Squad Workers and Line of Duty Death Benefits (13412) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $17,812,114 $0$17,812,114 0.0 %Receipts --- Appropriation $17,812,114 $0$17,812,114 0.0 %Positions --- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of Insurance
67
Department of Insurance (13900) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $43,267,178 $454,091 $43,721,269 1.0 %Receipts 6,873,257 -6,873,257 0.0 %Appropriation $36,393,921 $454,091 $36,848,012 1.2 %Positions 410.100 -410.100 0.0 % Appropriation Items -- Recommended Adjustments Reductions 2012-131. Management Flexibility Reserve This recommendation achieves savings throughout general government agencies through a flexibly managed, tiered approach that considers each agency's level of resources. This represents a 1.5% reduction for this agency. Appropriation ($545,909)Total Recommended Reductions Recurring Requirements ($545,909) Receipts - Appropriation ($545,909) Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions - North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of Insurance
68
Expansion 2012-131. Consumer Protection Fund Reserve Advocating on behalf of consumers is one of the most important functions of state government. This recommendation will fund a reserve that will enable the Department to pay expenses incurred while contesting rate filings and conducting rate hearings. Funding would cover costs of actuarial and economic consultants, and legal counsel in the review and analysis of automobile, worker's compensation and property rate filings. Appropriation -Nonrecurring $1,000,000 Total Recommended Expansion Recurring Requirements - Receipts - Appropriation - Number of Positions -Nonrecurring Requirements $1,000,000 Receipts - Appropriation $1,000,000 Time Limited Positions -Total RecommendedAdjustments forDepartment of Insurance 2012-13Recurring Requirements($545,909) Receipts - Appropriation($545,909) Number of Positions-Nonrecurring Requirements$1,000,000 Receipts - Appropriation$1,000,000 Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of Insurance - General Fund Direct
69
Insurance - General Fund Direct (13901) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $2,623,654 $0$2,623,654 0.0 %Receipts --- Appropriation $2,623,654 $0$2,623,654 0.0 %Positions --- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of Administration
70
Department of Administration (14100) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $108,694,839 $10,121,098 $118,815,937 9.3 %Receipts 42,341,766 -42,341,766 0.0 %Appropriation $66,353,073 $10,121,098 $76,474,171 15.3 %Positions 530.115 7.000 537.115 1.3 % Appropriation Items -- Recommended Adjustments Reductions 2012-131. Management Flexibility Reserve - Administration This recommendation achieves savings throughout general government agencies through a flexibly managed, tiered approach that considers each agency's level of resources. This represents a 1.8% reduction for this agency. Appropriation ($1,060,827)2. Management Flexibility Reserve - Office of State Personnel This recommendation achieves savings throughout general government agencies through a flexibly managed, tiered approach that considers each agency's level of resources. This represents a 1% reduction for this agency. Appropriation ($62,737)Total Recommended Reductions Recurring Requirements ($1,123,564) Receipts - Appropriation ($1,123,564) Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions -North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of Administration
71
Expansion 2012-131. Sterilization Continuation of Operations As part of the Governor's ''Justice for Sterilization Victims'' initiative, the Governor recommends that the N.C. Justice for Victims of Sterilization Foundation (JVSF) be extended for five additional years (through June 30, 2017). JVSF verifies victims who were sterilized by the State and oversees the compensation program. In addition, the JVSF will carry out an outreach campaign to ensure that victims learn about the compensation program, and that an ongoing program of education and memorialization is developed to ensure future generations know about this period in the State's history. Appropriation $353,298 Number of Positions 5.000 2. Sterilization Compensation As Governor of the first state in America to advocate compensation for sterilization victims, the Governor recommends that every living victim sterilized by the North Carolina Eugenics Board, after verification by the Justice for Victims of Sterilization Foundation, be awarded compensation in the amount of $50,000. Victims must come forward no later than December 31, 2015 in order to be eligible for compensation and to allow time for verification research. Compensation shall be exempt from all state taxes and shall not affect the individual's ability to participate in federal or state benefits programs. Of this amount, $300,000 is targeted to developing a network of mental health supportive services, an outreach campaign, and traveling exhibit. This recommendation represents the first installment over a four-year period to compensate victims of the NC State Eugenics Board. Appropriation $10,300,000 3. Restore Martin Luther King, Jr. Grants The Governor recommends restoring grants to non-profit organizations throughout the State that support the legacy of Dr. Martin Luther King, Jr. Appropriation $42,465 4. Building Reserve for Public Health Lab The Governor recommends additional funding for the maintenance of the new state-of-the-art lab to ensure building systems are properly supported to meet the critical public health and medical examiner requirements. Additional building system contracts and supplies, as well as a full time site manager are needed to oversee a very complex building that has a broader mission than the current laboratory (with the addition of the Office of the Chief Medical Examiner). Professional oversight and specific support by contract are essential to maintaining this critical and complex operation. Refer to the companion recommendation in the Department of Health and Human Services, Division of Public Health budget. Appropriation $428,361 Appropriation -Nonrecurring $28,820 Number of Positions 1.000 5. Create Internal Audit/Management Analysis Function Fiscal oversight and internal controls are priorities of the Governor. The Governor recommends creating an Internal Audit function within the Secretary's Office to ensure continuous improvement and integrity of the operation. Appropriation $91,718 Number of Positions 1.000 North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of Administration
72
Total Recommended Expansion Recurring Requirements $11,215,842 Receipts - Appropriation $11,215,842 Number of Positions 7.000 Nonrecurring Requirements $28,820 Receipts - Appropriation $28,820 Time Limited Positions -Total RecommendedAdjustments forDepartment of Administration 2012-13Recurring Requirements$10,092,278 Receipts - Appropriation$10,092,278 Number of Positions7.000 Nonrecurring Requirements$28,820 Receipts - Appropriation$28,820 Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Office of the State Controller
73
Office of the State Controller (14160) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $30,126,552 ($425,534)$29,701,018 (1.4)%Receipts 1,757,595 -1,757,595 0.0 %Appropriation $28,368,957 ($425,534)$27,943,423 (1.5)%Positions 181.759 -181.759 0.0 % Appropriation Items -- Recommended Adjustments Reductions 2012-131. Management Flexibility Reserve This recommendation achieves savings throughout general government agencies through a flexibly managed, tiered approach that considers each agency's level of resources. This represents a 1.5% reduction for this agency. Appropriation($425,534)Total Recommended Reductions Recurring Requirements ($425,534) Receipts - Appropriation ($425,534) Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions -North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Office of the State Controller
74
Total RecommendedAdjustments forOffice of the State Controller 2012-13Recurring Requirements($425,534) Receipts - Appropriation($425,534) Number of Positions-Nonrecurring Requirements- Receipts - Appropriation- Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of Revenue
75
Department of Revenue (14700) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $111,420,584 $1,168,630 $112,589,214 1.0 %Receipts 33,221,046 169,865 33,390,911 0.5 %Appropriation $78,199,538 $998,765 $79,198,303 1.3 %Positions 1,417.250 59.000 1,476.250 4.2 % Appropriation Items -- Recommended Adjustments Reductions 2012-131. Management Flexibility Reserve This recommendation achieves savings throughout general government agencies through a flexibly managed, tiered approach that considers each agency's level of resources. This represents a 1.8% reduction for this agency. Appropriation ($1,407,592)Total Recommended Reductions Recurring Requirements ($1,407,592) Receipts - Appropriation ($1,407,592) Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions - North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of Revenue
76
Expansion 2012-131. Permanent positions for processing tax returns The Department's core business process, preparing tax returns, is currently handled by 11-month temporary staff. This recommendation is focused on ensuring that tax returns and refunds are processed quickly, and provides adequate funding to shift temporary employees to permanent, full-time employment so staff will be available to open mail and process tax returns throughout the year. Appropriation $1,695,351 Number of Positions 40.000 2. Permanent funds to reconcile NC-3 and W-2 Data Paper Filings This recommendation provides funding for additional staff required to key data into a database that reconciles NC-3s filed by employers with W-2s filed by employees. The Department expects this initiative to collect $72-$75 million in additional revenue for the State. Appropriation $711,006 Number of Positions 17.000 3. MotoTax Project This recommendation will provide support staff for theCombined Motor Vehicle Registration Renewal and Property Tax Collection System. Additional staff positions will provide Help Desk support to customers utilizing the system. These positions will be supported by Highway Fund receipts transferred to the Department from the Department of Transportation (DOT). Refer to the companion recommendation in the Department of Transportation budget. Requirements $169,865 Receipts $169,865 Appropriation - Number of Positions 2.000 Total Recommended Expansion Recurring Requirements $2,576,222 Receipts 169,865 Appropriation $2,406,357 Number of Positions 59.000 Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions -North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of Revenue
77
Total RecommendedAdjustments forDepartment of Revenue 2012-13Recurring Requirements$1,168,630 Receipts 169,865 Appropriation$998,765 Number of Positions59.000 Nonrecurring Requirements- Receipts - Appropriation- Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of Cultural Resources
78
Department of Cultural Resources (14800) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $64,410,441 $139,454 $64,549,895 0.2 %Receipts 2,713,440 -2,713,440 0.0 %Appropriation $61,697,001 $139,454 $61,836,455 0.2 %Positions 700.103 -700.103 0.0 % Appropriation Items -- Recommended Adjustments Reductions 2012-131. Management Flexibility Reserve This recommendation achieves savings throughout general government agencies through a flexibly managed, tiered approach that considers each agency's level of resources. This represents a 1.8% reduction for this agency. Appropriation ($1,110,546)Total Recommended Reductions Recurring Requirements ($1,110,546) Receipts - Appropriation ($1,110,546) Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions - North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of Cultural Resources
79
Expansion 2012-131. Partially Restore Reductions to Tryon Palace The Governor recommends partially restoring budget reductions to ensure the operation of the historic Tryon Palace. The funding level will save 17 appropriated positions, including key staff roles in security, garden maintenance, front line historic interpreters, and Tryon Palace maintenance. This recommendation will enable Tryon Palace to offer public programs six days per week and provide the opportunity to continue to grow revenues through admission receipts, retail sales, private event rentals, memberships, and fundraising. Appropriation $850,000 2. Partially Restore Reductions to the Transportation Museum The Governor recommends partially restoring fundingreductions to the Transportation Museum to maintain operating hours, existing special event programs, and to ensure adequate building and grounds maintenance. This recommendation will enable the Transportation Museum to maintain the current level and quality of public programing in a safe environment six days a week. Appropriation $400,000 Total Recommended Expansion Recurring Requirements $1,250,000 Receipts - Appropriation $1,250,000 Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions -North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Department of Cultural Resources
80
Total RecommendedAdjustments forDepartment of Cultural Resources 2012-13Recurring Requirements$139,454 Receipts - Appropriation$139,454 Number of Positions-Nonrecurring Requirements- Receipts - Appropriation- Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Roanoke Island Commission
81
Roanoke Island Commission (14802) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $1,203,491 $0$1,203,491 0.0 %Receipts --- Appropriation $1,203,491 $0$1,203,491 0.0 %Positions --- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
State Board of Elections
82
State Board of Elections (18025) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $5,220,796 $612,670 $5,833,466 11.7 %Receipts 94,193 -94,193 0.0 %Appropriation $5,126,603 $612,670 $5,739,273 12.0 %Positions 51.000 -51.000 0.0 % Appropriation Items -- Recommended Adjustments Reductions 2012-131. Management Flexibility Reserve This recommendation achieves savings throughout general government agencies through a flexibly managed, tiered approach that considers each agency's level of resources. This represents a 1% reduction for this agency. Appropriation($51,266)Total Recommended Reductions Recurring Requirements ($51,266) Receipts - Appropriation ($51,266) Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions - North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
State Board of Elections
83
Expansion 2012-131. Restore Maintenance of Effort Funds to Tap Help America Vote Act (HAVA) Funds Spending an additional $663,936 of state funds will enable North Carolina to access over $4 million in federal funding that will help ensure a fair and efficient election process. The Governor recommends restoring state Maintenance of Effort funds required for accessing Help America Vote Act (HAVA) funds. The funds will be used primarily to support hardware and software licensing agreements for voting machines across the state. The funds will also support upgrades to the statewide voter registration database (SEIMS) and to replace the counties' election tabulation Unity servers. Appropriation$663,936 Total Recommended Expansion Recurring Requirements $663,936 Receipts - Appropriation $663,936 Number of Positions -Nonrecurring Requirements - Receipts - Appropriation - Time Limited Positions -Total RecommendedAdjustments forState Board of Elections 2012-13Recurring Requirements$612,670 Receipts - Appropriation$612,670 Number of Positions-Nonrecurring Requirements- Receipts - Appropriation- Time Limited Positions- North Carolina State Budget
Recommended Adjustments, 2012-13
General Fund
Office of Administrative Hearings
84
Office of Administrative Hearings (18210) Total Appropriations and Positions 2012-13CertifiedNetRecommendedExpansion and Reduction 2012-13 Recommended PercentChangeRequirements $4,200,742 ($41,423)$4,159,319 (1.0)%Receipts 58,484 -58,484 0.0 %Appropriation $4,142,258 ($41,423)$4,100,835 (1.0)%Positions 40.000 -40.000 0.0 % Appropriation Items -- Recommended Adjustments Reductions 2012-131. Management Flexibility Reserve This recommendation achieves savings throughout general government agencies through a flexibly managed, tiered approach that considers each agency's level of resources. This represents a 1% reduction for this agency. Appropriation($41,423)Total Recommended Reductions Recurring Requirements ($41,423) Recei