GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2009 SESSION LAW 2010-31 SENATE BILL 897 AN ACT TO MODIFY THE CURRENT OPERATIONS AND CAPITAL IMPROVEMENTS APPROPRIATIONS ACT OF 2009 AND FOR OTHER PURPOSES. The General Assembly of North Carolina enacts: PART I. INTRODUCTION AND TITLE OF ACT TITLE OF ACT SECTION 1.1. This act shall be known as "The Current Operations and Capital Improvements Appropriations Act of 2010." INTRODUCTION SECTION 1.2. The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget. Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and, except as allowed by the State Budget Act, or this act, the savings shall revert to the appropriate fund at the end of each fiscal year as provided in G.S. 143C-1-2(b). PART II. CURRENT OPERATIONS AND EXPANSION GENERAL FUND CURRENT OPERATIONS AND EXPANSION/GENERAL FUND SECTION 2.1. Appropriations from the General Fund of the State for the maintenance of the State departments, institutions, and agencies, and for other purposes as enumerated, are adjusted for the fiscal year ending June 30, 2011, according to the schedule that follows. Amounts set out in brackets are reductions from General Fund appropriations for the 2010-2011 fiscal year. Current Operations – General Fund 2010-2011 EDUCATION Community Colleges System Office $ 42,668,183 Department of Public Instruction (275,244,311) University of North Carolina – Board of Governors Appalachian State University 1,998,580 East Carolina University Academic Affairs 5,851,230 Elizabeth City State University 750,308 *S897-v-3* Fayetteville State University 1,417,998 North Carolina Agricultural and Technical State University 2,490,531 North Carolina Central University 370,281 North Carolina State University Academic Affairs 12,371,317 UNC School of the Arts 466,240 University of North Carolina at Asheville 782,143 University of North Carolina at Chapel Hill Academic Affairs 5,269,319 Health Affairs 125,319 Area Health Education Centers 0 University of North Carolina at Charlotte 7,748,950 University of North Carolina at Greensboro 3,362,001 University of North Carolina at Pembroke 768,400 University of North Carolina at Wilmington 3,435,177 Western Carolina University 1,015,952 Winston-Salem State University 798,672 General Administration (410,863) University Institutional Programs (40,303,905) Related Educational Programs 10,058,332 UNC Financial Aid Private Colleges (63,635) North Carolina School of Science and Mathematics 80,851 UNC Hospitals at Chapel Hill (8,000,000) Total University of North Carolina – Board of Governors $ 10,383,198 HEALTH AND HUMAN SERVICES Department of Health and Human Services Central Management and Support $ (3,523,834) Division of Aging 100,000 Division of Blind Services/Deaf/HH (632,912) Division of Child Development (34,959,584) Division of Education Services (4,093,260) Division of Health Service Regulation (2,061,346) Division of Medical Assistance (351,830,928) Division of Mental Health 40,780,659 NC Health Choice 6,444,925 Division of Public Health (3,933,117) Division of Social Services (15,859,792) Division of Vocational Rehabilitation Services (1,540,982) Total Health and Human Services $ (371,110,171) NATURAL AND ECONOMIC RESOURCES Department of Agriculture and Consumer Services $ (179,075) Department of Commerce Commerce 22,270,645 Commerce State-Aid 20,580,564 NC Biotechnology Center 5,000,000 Rural Economic Development Center 3,933,378 Page 2 Session Law 2010-31 Senate Bill 897 Department of Environment and Natural Resources 4,225,974 Department of Environment and Natural Resources – Clean Water Management Trust Fund 0 Department of Labor (1,102,555) JUSTICE AND PUBLIC SAFETY Department of Correction $ (41,239,247) Department of Crime Control and Public Safety (1,656,592) Judicial Department (13,434,355) Judicial Department – Indigent Defense (4,431,626) Department of Justice (3,004,760) Department of Juvenile Justice and Delinquency Prevention (903,138) GENERAL GOVERNMENT Department of Administration $ (745,126) Office of Administrative Hearings (30,000) Department of State Auditor (337,033) Office of State Controller 7,435,411 Department of Cultural Resources Cultural Resources (1,253,146) Roanoke Island Commission (115,926) State Board of Elections 184,869 General Assembly (2,914,926) Office of the Governor Office of the Governor (353,359) Office of State Budget and Management (373,164) OSBM – Reserve for Special Appropriations 3,150,693 Housing Finance Agency (2,500,000) Department of Insurance Insurance (2,176,454) Insurance – Volunteer Safety Workers' Compensation 0 Office of Lieutenant Governor (33,539) Senate Bill 897 Session Law 2010-31 Page 3 Department of Revenue (201,183) Department of Secretary of State (666,886) Department of State Treasurer State Treasurer (202,709) State Treasurer – Retirement for Fire and Rescue Squad Workers 0 RESERVES, ADJUSTMENTS AND DEBT SERVICE Job Development Investment Grants (JDIG) (6,600,000) Debt Service General Debt Service (1,668,313) TOTAL CURRENT OPERATIONS – GENERAL FUND $ (612,644,679) GENERAL FUND AVAILABILITY STATEMENT SECTION 2.2.(a) Section 2.2(a) of S.L. 2009-451 is repealed. The General Fund availability used in adjusting the 2010-2011 budget is shown below: FY 2010-2011 Unappropriated Balance Remaining from Previous Year 3,702,182 Adjustment from Estimated to Actual FY 2009-2010 Beginning Unreserved Fund Balance 270,080 Beginning Unreserved Fund Balance 3,972,262 Revenues Based on Existing Tax Structure 18,199,339,016 Nontax Revenues Investment Income 57,500,000 Judicial Fees 239,100,000 Disproportionate Share 100,000,000 Insurance 67,000,000 Other Nontax Revenues 182,700,000 Highway Trust Fund/Use Tax Reimbursement Transfer 72,800,000 Highway Fund Transfer 17,600,000 Subtotal Nontax Revenues 736,700,000 Total General Fund Availability 18,940,011,278 Adjustments to Availability: Senate Bill 897 Internal Revenue Code Conformity (7,700,000) Unemployment Insurance Refundable Tax Credit (34,100,000) Increase Sales Tax Prepayment Threshold (7,000,000) Relieve Annual Report Compliance Burden on Small Businesses (400,000) Fair Tax Penalties 0 Extend Sunsets on Various Tax Incentives (3,500,000) Improve Tax and Debt Collection Process 3,000,000 Modernize Sales Tax on Accommodations 1,700,000 Page 4 Session Law 2010-31 Senate Bill 897 Modernize Admissions Tax and Restore Amenities Exclusion (700,000) Reserve for Pending Finance Legislation (9,800,000) Reduce Franchise Tax Burden on Construction Companies (1,500,000) Department of Revenue Settlement Initiative 110,000,000 Disproportionate Share 35,000,000 Loss of Estate Tax Revenues for FY 2010-2011 (85,000,000) Increase Justice and Public Safety Fees 13,930,670 Transfer from the Health and Wellness Trust Fund 5,397,000 Transfer Aviation from Department of Commerce to Department of Transportation (500,000) Transfer from Wildlife Resources Commission 3,000,000 Divert Funds from Scrap Tire Disposal Account 2,500,000 Divert Funds from White Goods Fund 1,200,000 Transfer from Mercury Pollution Prevention Fund 2,250,000 Transfer from Bladen Lakes Special Fund 150,000 Transfer from DACS – N.C. State Fair 1,000,000 Transfer from ECU Magnetic Resonance Imaging Lease and Equipment Fund 1,000,000 Adjust Transfer from Insurance Regulatory Fund (2,176,454) Transfer from Motorfleet Internal Services Fund 14,000,000 Subtotal Adjustments to Availability: Senate Bill 897 41,751,216 Revised General Fund Availability 18,981,762,494 Less General Fund Appropriations 18,958,293,337 Balance Remaining 23,469,157 SECTION 2.2.(b) Notwithstanding the provisions of G.S. 143C-4-3, the State Controller shall not transfer funds to the Repairs and Renovations Reserve Account on June 30, 2010. This subsection becomes effective June 30, 2010. SECTION 2.2.(c) Notwithstanding G.S. 143C-4-2, the State Controller shall not transfer funds to the Savings Reserve Account on June 30, 2010. This subsection becomes effective June 30, 2010. SECTION 2.2.(d) Notwithstanding the provisions of G.S. 105-187.19(b), effective for taxes levied during the 2010-2011 fiscal year, the Secretary of Revenue shall credit to the General Fund the net tax proceeds that G.S. 105-187.19(b) directs the Secretary to credit to the Scrap Tire Disposal Account. SECTION 2.2.(e) Notwithstanding the provisions of G.S. 105-187.24, effective for taxes levied during the 2010-2011 fiscal year, the Secretary of Revenue shall credit to the General Fund the net tax proceeds that G.S. 105-187.24 directs the Secretary to credit to the White Goods Management Account. SECTION 2.2.(f) Section 2.2(i) of S.L. 2009-451 reads as rewritten: "SECTION 2.2.(i) Notwithstanding G.S. 143C-9-3, of the funds credited to the Health Trust Account, the sum of five million dollars ($5,000,000) ten million three hundred ninety-seven thousand dollars ($10,397,000) that would otherwise be deposited in the Fund Reserve shall be transferred from the Department of State Treasurer, Budget Code 23460 (Health and Wellness Trust Fund), to the State Controller to be deposited in Nontax Budget Code 19978 (Intrastate Transfers) to support General Fund appropriations for the 2009-2010 and 2010-2011 fiscal years. These funds shall be transferred on or after April 30, 2010. Senate Bill 897 Session Law 2010-31 Page 5 SECTION 2.2.(g) Section 2.2(g) of S.L. 2009-451, as amended by Section 2 of S.L. 2009-575, is repealed. SECTION 2.2.(h) Notwithstanding any other provision of law to the contrary, effective July 1, 2010, the following amounts shall be transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intrastate Transfers) or the appropriate budget code as determined by the State Controller.