NC ... legislative session budget and fiscal policy highlights [2018]

Fiscal Research Division _ Budget Development NC 2018 Legislative Session Budget and Fiscal Policy Highlights Fiscal Brief July 18,2018 Executive Summary North Carolina’s modified $23.9 billion FY 2018-19 budget represents a 3.9% increase above the FY 2017- 18 budget and provides salary increases for State employees, with particular emphasis on pay raises for prison staff and members of the State Highway Patrol. The modified budget also includes funding for prison and school safety initiatives; a one-time 1% supplement for retirees; and additional funds for the Savings Reserve. This brief highlights the General Assembly's major budgetary and fiscal actions during the 2018 session including S.L. 2018-5, the main appropriations act, and subsequent legislation1. Introduction: During the 2018 short session, the General Assembly modified the second year of the FY 2017-19 biennial budget using an expedited process. Instead of the traditional budget process, both the Senate and House appointed members to a conference committee for Senate Bill 99, and formally began work on the budget in late April 2018. Session convened on the 16th of May and on June 1st, 2018, the General Assembly ratified the bill, modifying the original FY 2018-19 budget. Governor Cooper vetoed Senate Bill 99 on June 5lh; the General Assembly subsequently overrode his veto on June 1 2th, 2018. The bill became Session Law 2018- 5, the Appropriations Act of 201 8. The modified FY 2018-19 budget represents a 3.9% increase over the FY 2017-18 budget and a 1.1% increase over the budget originally enacted for FY 2018-19 during the 2017 Session. (See Table 1). The adjustments to each appropriations area are as follows: Area Committee & Reserves FY 2017-18 FY 2018-19 % Change Education 13,062,520,091 13,759,414,134 5.3% Health & Human Services 5,253,299,542 5,353,212,884 1.9% Justice & Public Safety 2,701,955,002 2,797,039,761 3.5% Natural & Economic Resources 587,753,659 602,768,253 2.6% General Government & Information Technology 461,149,274 496,654,706 7.7% Statewide Reserves and Capital 963,800,325 910,510,334 -5.5% TOTAL $23,030,477,893 $23,919,600,072 3.9% 1 S.L. 2018-76, Health-Local Confinement/Vet. Controlled Sub. (Senate Bill 750) and S.L. 2018-97, Budget Technical Corrections & Study, (Senate Bill 335).