Fiscal Research Division
Budget Development
NC 2013 Legislative Session
Budget and Fiscal Policy Highlights
Fiscal Brief August 13, 2013
Executive Summary
The 2013 General Assembly convened January 30th
with Senate and House leaders announcing tax refonn
as one of the key components of their legislative
agenda.
With that major effort underway, legislative budget
writers focused on keeping spending within the range
of various tax proposals taking shape in the House
and Senate. On July 25th, the legislature enacted
Senate Bill 402, Appropriations Act of 2013,
appropriating $20.6 billion and $21 billion
respectively, for the 2013-15 Biennial Budget. The
following day. Governor Pat McCrary signed the bill
into law.1
Since the legislature traditionally makes adjustments
to the second year of its biennial budget in the
subsequent legislative session, this brief will focus
primarily on fiscal and budgetary actions affecting
the FY 2013-14 Budget.
Major legislative actions taken during the 2013
Session include changes to tax law, steps taken to
close a budget gap in the Medicaid program, efforts
to strengthen the State's General Fund and
reorganizations of certain functions of State
government.
S.L. 2013-360, Appropriations Act of 2013 (S.B. 402),
as amended by S.L. 2013-363, Modifications/2013
Appropriations Act (H.B. 1 12), appropriates $20.6
billion for FY 2013-14, 1.9 percent more than the FY
2013-14 Continuation Budget.2 When compared to
the FY 2012-13 adjusted budget,3 FY 2013-14
1 S.L. 2013-360 (S.B. 402).
2 As used throughout this brief. Continuation Budget
refers to that portion of the Governor’s Recommended
State Budget proposed to fund State government
operations in the next fiscal year.
3 S.L. 2013-56, Medicaid/2012-2013 Additional
Appropriations, and S.L. 2013-184, Continuing Budget
appropriations remain relatively flat. Table 1 provides a
comparison of appropriations by subcommittee or area.
Table 1
Comparison of Appropriations by
Subcommittee/Area
Subcommittee/Area
Continuation
Budget2
FY 2013-14
Enacted Budget
FY 2013-14
Enacted
2013-14
vs.
Cent
2013-14
Education
11,731,907,039
11,470,304,386
-22%
Health & Human
Services
4,615,870,375
4,993,788,323
8.2%
Justice & Public
Safety
2,372,758,253
2,368,675,193
-0.2%
Natural & Economic
Resources*
345,916,108
371,247,970
7.3%
General Government
421,067,414
424,758,845
0.9%
Reserves, Debt
Service, & Capital
756,149,861
1,001,992,928
.
TOTAL
$20,243,669,050 $20,630,767,645
1.9%
* The increase in the NER budget is due primarily to mov ing programs from dedicated revenue
sources to General Fund.
General Fund Availability
Revenue
Each year economists for the Office of State Budget
and Management and the General Assembly’s Fiscal
Research Division provide a consensus revenue
forecast that legislative budget writers use to develop
the budget. However, the 2013 legislative session was
different. With a major focus on reforming the State's
tax code, the consensus forecast served as the starting
point for legislators to negotiate major tax changes.
Authority, increased FY 2012-13 appropriations by S308.1
million to cover a Medicaid shortfall.