1993 Session Overview: Fiscal and Budgetary Actions
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0verview: Fiscal and Budgetary Actions North Carolina General AssemblY 1993 Session Prepared by the Fiscal Research Division of the North Carolina General Assembly Raleigh, N.C. î OVERVIEW: FISCAL AND BUDGETARY ACTIONS NoRTHCARoLINAGENERALASSEMBLY 1993 SESSION PREPARED BY THE FISCAL RESEARCH DIVISION OF THE NORTH CAROLINA GENERAL ASSEMBLY RALEIGH, NORTH CAROLINA FISCAL RESEARCH DIVISION Legislative Office Building Raleigh, North Carolina 27603-5925 Telephone: (91 9) 733-4910 THOMAS L, COVINGTON, DIRECTOR DEPARTMENTS/COVERAGE ANALYSTS Budget Development Governmental Operations Linda Powell Appropriations Bills Coordination Janice Wheeler Capital Budgeting/Planning state Lands/Buildings S al ari e s / Be n efits/Reti re m e nt Sy ste m Sam Byrd Stanley Moore General Government Licensing Boards state Auditor Secretary of State Department of Revenue Denese Lavender Department of Administration Lynn Muchmore Cultural Resources Gayle Basnight Lieutenant Governor Administrative Governor's Otfice Coordinator General Assembly Department of lnsurance Treasurer Board of Elections Office of Administrative Hearings Administrative Rules Review Commission Justice and Public Safety Crlme Control and Public Safety Department of Justice Carolyn Wyland Department of Correction Jim Mills Judicial Department Human Resources Department of Human Resources Nina Yeager Carol Shaw Gregory Berns FISCAL RESEARCH DtVtStON (Conrinued) Natural and Economic Resources Department of Agriculture Beth Christensen Department of Economic Michele Nelson and Community Development Department of Environment, Health, and Natural Besources Department of Labor Department of Transportation Richard Bostic Manuel Marbet Education Department public of Education Jim Johnson Department of Community Colleges Charlotte Todd University Board of Governors Jim Newlin Economy and Taxation Revenue Estimates Dave Crotts Finance Committees Ruth Sappie Revenue Laws Study Committee Sabra Faires Fiscal Trends Commission Warren Plonk Statsfica/ Analyst Corene Hardee Support Sraff Agnes Perry Debora Bridgers Cynthia Ely Jeanne Austin TABLE OF CONTENTS INTRODUCTION GLOSSARY THE TOTAL BUDGET Summary of the Budget, 1993-95 Biennium 5 Summary of Appropriations 7 Bills lncorporated into SB 26 (Chapter 561), B Bills lncorporated into SB 27 (Chapter 321). 12 Bills lncorporated into SB 14 , . 20 Earmarking of the Year-End General Fund Credit Balance 21 Condition of General Fund , 22 Budget Reform Compliance Checklist 23 THE ECONOMY AND REVENUES Economic Outlook and General Fund Revenues 27 General Fund Revenues 28 General Fund Revenues and Percent of lncrease over Prior Year. 30 Highway Fund - 1992-93 31 Highway Fund Revenue 32 Highway Trust Fund Revenues Jó FEDERAL BLOCK GRANT PROGRAMS History 37 How the Money Will Be Spent in North Carolina 39 Changes to the Medicaid Program 41 LEGISLATIVE ACTIONS: GENERAL FUND APPROPRTATTONS General Fund Appropriations - Continuation Budget 45 General Fund Appropriations - 1g9g-94 50 General Fund Appropriations - 1gg4-95 53 Major lnit¡atives. 56 EDUCAT¡ON Community Colleges 63 Public Education 68 University of North Carolina. 79 GENERAL GOVERNMENT Administration B9 Office of Administrative Hearings , 96 Administrative Rules Review Commission, 97 Cultural Resources 98 GeneralAssembly 103 Governor's Office Office of the Governor , . 105 Office of State Budget and Management , , 108 Office of State Planning , .110 lnsurance . .111 Lieutenant Governor . .114 GENERAL GOVERNMENT (Continued) Revenue 115 Secretary of State 118 State Auditor . 120 State Board of Elections 122 State Controller 123 State Treasurer. 124 HUMAN RESOURCES 129 JUSTICE AND PUBLIC SAFETY Correction .151 Crime Control and public Safety General - Fund . 156 Highway Fund Highway patrol . 161 Judicial, - - . 164 Justice . , 168 NATURAL AND ECONOMIC RESOURCES Agriculture 175 Commerce Commerce . 179 Microelectronics , 186 Biotechnotogy , 188 Rural Economic Development Center, , 190 Environment, Health, and Natural Resources ,192 Labor. .205 Statewide Reserves of State Budg.t åia'M.i"går"ni 21',1 Debt -Office Service. 213 LEGISLATIVE AcrloNS: HTGHWAY FUND AppRopRrATroNs Department of - Transportation Operations . 219 SALARIES AND BENEFITS Salary C_hanges for Emptoyees Supported by the State. 23i) Benefit personnel, Changes for State and Local 249 Retirement pension and changes for state and Local personnel 251 State Employee Health Benefir Changes 254 CAPITAL IMPROVEMENTS Capital lmprovements (Excluding Bonds) . ,259 Prison Bond Appropriations. 270 Education, parks Clean Water, and Bond Act of 1g93 271 REVENUE BILLS General Fund Revenue Bills 279 Local Government Revenue Bills . 284 APPENDIX Total State Budget by Source of Funds 297 Condition of General Fund . 298 Summary of General Fund Revenue 299 Summary of General Fund Appropriations 301 General Fund Appropriations 302 state General Fund operations Appropriations for public schools, Community Colleges, and Higher Education 304 General Fund Operating Expenditures by Department/Functions of Government 306 2 APPENDIX (Continued) Reversions and Percent of Adjusted Appropriations 307 Local Government Tax Aid - Historical Data . 309 Local Growth Money lssue 310 Permanent State Posltions 312 Summary of Permanent Positions by Department, 313 Across-the-Board Salary Cost for Each 10lo lncrease 314 Legislative lncreases 315 Average Salary of Employees Subject to the Personnel Act 317 Critical School Facility Needs Fund. 318 School Facilities Finance Act of 1987. 319 Capital lmprovements Legislative Bond lssues 320 Public Education - Low Wealth Supplemental Funding 323 Public Education - Small School System Supplemental Funding, 333 GLOSSARY Adjusted Appropriation: Contains the total of the certified appropriation, reserve alloca- tions, and other transfers (i.e. as authorized by legislative authority) including Contingency and Emergency, Anti-Recession Funds: Program instituted by the Federal Government. Beginning/Ending Balance Or Credit Balance: The funds available at the beginning or end of the fiscal year based upon revenue collections and expenditures. Capital lmprovements: One-time appropriations for specific capital projects (new construction, renovations, repairs and land purchases), Carry Forward: Funds appropriated, but unspent in the first fiscal year of a biennium -- which by authorized budget revision are brought forward for expenditure in the second fiscal year of the same biennium, Starting-- with the 1985-86 fiscal year, the practice of journalizing these entries between fiscal years of a biennium were discontinued, Funds have since been carried forward between years and biennia by check. Certified Appropriation: Total state monies appropriated by the General Assembly. Contingency and Emergency (C&E) Funds: The Appropriation to provide for any purpose authorized by law for which no specific appropriation is made or for which inadvertently an insufficient appropriation has been made. Allocations from this Fund must be approved by the Council of State upon recommendation by the Director of the Budget (Governor). Continuation Budget: The part of the State budget necessary to continue the current level of services when adjusted for inflation, mandated rate increases such as Social Security, annualization of programs and operation of new facilities, Current Operations: Cost associated with the daily activity of programs supported by the State, such as salaries, utilities, and travel. Disproportionate Share Funds: Share (DSH) funds are Medicaid payments made to health care providers who deliver services to large numbers of uninsured patients. Entitlements: Payment or benefit granted by law to individuals or political subdivisions (i.e. cities, counties, local districts). Expansion Budget: The part of the budget which provides for new programs, expansion of existing programs, and salary and benefit increases, Federal Funds: Funds appropriated by the U. S. Congress and administered by Federal agencies for support of programs at the state or local level. Federal funds are received through block grants, entitlement programs and specific ("categorical") grants. Federaf Revenue Sharing: Program instituted by lhe Federal Governmenl in 1972-73 and discontinued in 1982-83 to assist state/local governments. General Fund: The tax and nontax revenue collected by the Stale of North Carolina and deposited wilh the State treasurer for appropriation by the General Assembly to support the operations and capital construction needs of state departments and institutions. General Fund tax revenue includes sales and use tax, individual income tax, corporate income tax and franchise tax, General Fund nontax revenue includes court fees and income from the State Treasurer's investment of excess General Fund dollars belonging to the slate. Highway Fund: The tax and nontax revenue collected by the Slate of North Carolina and deposited with the State Treasurer for appropriation by the General Assembly to support L GLOSSARY (Continued) the operations and capital construction needs of the Department of Transportation, includ- ing the Division of Motor vehicles and the Highway Pâtrol Division of rhä oàfartmenr ot Crime Control and Public Safety. Highway runo táx revenue includes licenses and fees relating lo the operation of motor vehicles and the motor fuel tax, Highway Fund nontax revenue includes income from the state Treasurer's investments of Higìhway Fund dollars. Local Government Transfers: Reimbursements for "holding harmless,, local governments due to the Tax Reduction