NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

 

 

CHAPTER 708

SENATE BILL 33

 

 

AN ACT TO MAKE APPROPRIATIONS FOR CURRENT OPERATIONS OF THE STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES, AND FOR OTHER PURPOSES.

 

The General Assembly of North Carolina do enact:

Section 1.  The appropriations made herein are intended to be for maximum amounts necessary to provide the services and accomplish the purposes described in The Budget. It is the intent of the General Assembly that savings shall be effected where the total amounts appropriated shall not be required to perform these services and accomplish these purposes, and that, except as allowed by the Executive Budget Act, or as hereinafter provided, such savings shall be reverted to the appropriate fund at the end of the biennium.

GENERAL FUND

Sec. 2.  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 hereby made for the two fiscal years ending June 30, 1972, and June 30, 1973, respectively, according to the following schedule:

I. JUDICIAL

         1971-72                     1972-73

Judicial Department                                                               $      27,980,851         $      28,863,305

Judicial Council                                                                                      1,276                          1,551

Subtotal-Judicial                                                       $      27,982,127         $      28,864,856

II. GENERAL GOVERNMENT

The General Assembly                                                           $        1,328,638         $        3,062,813

The Governor's Office                                                                        527,521                      531,072

The Lieutenant Governor                                                                      17,346                        31,101

Department of Administration                                                          8,734,604                   9,225,284

Department of Local Affairs                                                            1,027,440                   2,674,186

Department of Personnel                                                                 1,019,591                   1,050,979

Secretary of State                                                                              293,820                      275,456

State Auditor                                                                                  1,315,476                   1,423,347

State Treasurer                                                                                  479,676                      508,274

Department of Justice:

1.   Attorney General                                                              1,370,784                   1,408,295

2.   State Bureau of

  Investigation                                                                    2,245,805                   2,470,544

3.   Police Information Network                                                861,718                      872,531

4.   General Statutes Commission                                                15,980                        15,980

Department of Revenue                                                                 10,637,966                 10,936,766

Department of Tax Research                                                              169,269                      180,250

State Board of Assessment                                                                 160,655                      162,094

Teachers' and State Employees'

Retirement System:

1.      Pension Payments to Retired

   State Employees                                                              314,500                      291,100

Law Enforcement Officers' Benefit

and Retirement Fund – Contribution

from General Fund                                                                      25,000                        25,000

North Carolina Firemen's Pension Fund                                              531,954                      532,500

Pensions - Confederate Widows                                                          17,592                        15,792

Pensions - Widows of Governors                                                         12,000                        12,000

State Board of Elections                                                                       62,274                        63,972

Legislative Research Commission                                                         16,000                        16,000

Interstate Cooperation Commission                                                        5,000                          5,000

North Carolina Capital Planning                                                                      

Commission                                                                                  1,000                          1,000

North Carolina Capital Building

Authority                                                                                       1,000                          1,000

Governor's Committee on Employment

of the Handicapped                                                                     29,062                        29,093

Subtotal-General Government                                               $      31,221,671          $    35,821,429

III.  PUBLIC SAFETY AND REGULATION

The Adjutant General:

1.  Adjutant General's Office                                        $           782,789          $          795,264

2.  Armory Commission                                                              41,500                        41,500

State Civil Air Patrol                                                                            20,272                        20,288

State Civil Defense Agency                                                                206,780                      210,179

Department of Motor Vehicles –

Automobile Drivers' Financial

Responsibility Program                                                              798,567                      842,269

Utilities Commission                                                                           879,131                      912,568

Insurance Department:

1.  Insurance Department                                                       1,212,322                   1,242,492

2.  State Property Fire

 Insurance Fund                                                                    250,000                      250,000

3.  Firemen's Relief Fund                                                               1,750                          1,750

4.  Building Code Council                                                              2,600                          2,600

Department of Labor                                                                       1,139,913                   1,146,088

Industrial Commission                                                                        724,721                      734,249

State Board of Alcoholic Control                                                     1,165,196                   1,349,952

Department of Agriculture-

Gasoline and Oil Inspection

Service                                                                                     167,786                      165,389

Subtotal-Public Safety and

Regulation                                                                     $       7,393,327          $       7,714,588

IV. CORRECTION

North Carolina Board of Juvenile

Correction:

1.  General Administration                                              $          191,486          $          195,043

2.  Stonewall Jackson Training

 School                                                                              1,079,814                   1,110,101

3.  Samarkand Manor                                                            1,065,252                   1,087,931

4.  Cameron Morrison School                                                1,171,661                   1,188,195

5.  Richard T. Fountain School                                                  793,896                      812,532

6.  State Training School for

Girls                                                                                     758,819                      776,089

7.  Samuel Leonard School                                                       862,933                      891,257

8.  Juvenile Evaluation Center                                                 1,344,236                   1,378,727

9.  C.A. Dillon School                                                               573,037                      596,098

Fugitives from Justice                                                                             6,500                          6,500

Department of Correction                                                              25,874,249                 27,541,080

Probation Commission                                                                    3,674,700                   3,699,763

Board of Paroles                                                                             1,611,480                   1,635,591

Subtotal-Correction                                                       $     39,008,063          $     40,918,907

V. SOCIAL SERVICES

Department of Social Services:

1.  Department of Social

Services                                                                 $     25,789,824          $     28,263,313

2.  Child Welfare and Day Care

Services                                                                         1,409,133                   1,436,765

3.  Local Confinement Facilities

Improvement Fund                                                            200,000

4.  Medical Assistance Program                                          25,996,675                 25,856,495

State Commission for the Blind                                                        2,673,564                   2,683,561

Department of Veterans Affairs                                                          875,487                      889,353

Confederate Women's Home                                                             101,269                      103,467

Oxford Orphanage                                                                               70,248                        70,248

Junior Order Children's Home                                                              93,000                        93,000

Central Orphanage of North

Carolina                                                                                  158,500                      158,500

Alexander Schools, Inc.                                                                       76,000                        76,000

Eliada Homes, Inc.                                                                               37,500                        37,500

Boys Homes of North Carolina, Inc.                                                     15,000                        15,000

Sipe's Orchard Home, Inc.                                                                   17,593                        17,593

Subtotal-Social Service                                                $     57,513,793          $     59,700,795

VI. EDUCATION

Department of Public Instruction                                            $        1,740,984           $      1,763,979

State Board of Education:

1.   Nine Months School Fund                                          486,852,061               508,947,491

2.   State Board of Education                                                1,420,480                   1,499,859

3.   Occupational Education                                                24,091,839                 25,260,664

4.   Purchase of Free Textbooks                                           7,677,546                   8,400,418

5.   Vocational Textile School                                                  172,909                      179,421

6.   Purchase of School Buses                                                 4,767,54                   5,122,975

7.   Division of School Planning                                                345,254                      345,567

8.   Vocational Rehabilitation                                                 2,251,236                   2,631,344

9.   Instruction and Training for

      Trainable Mentally

      Handicapped Children                                                    2,201,762                   2,478,909

10. National Defense Education

      Program                                                                            277,148                      280,922

11. Program of Education by

      Television                                                                          151,929                      153,742

12. Advancement School                                                         792,091                      806,505

13. School Food Service                                                      1,007,577                   1,009,244

14. Professional Improvement of

      Teachers                                                                           620,783                      621,398

15. Planning, Research and

      Development                                                                     382,825                      385,241

16. Financial Assistance to

      Hospital Programs of

      Nursing Education                                                             380,100                      361,200

17. Department of Community

      Colleges                                                                       50,160,147                 56,851,763

18. Department of Community

      Colleges-Equipment                                                        5,998,929                   3,698,433

State Board of Higher Education:

1.   State Board of Higher

      Education                                                                       1,783,163                   1,804,522

2.   State Education Assistance

      Authority                                                                               3,500                          3,500

Department of Administration:

1.   Higher Education – Reserve

      for Special Programs                                                         950,000                      750,000

2.   Reserve for Educational

      Benefits - Children of

      Veterans                                                                         1,100,000                   1,200,000

University of North Carolina

(Consolidated):

1.   General Administration                                                    1,964,156                   2,019,762

2.   University of North Carolina

      at Chapel Hill:

a.   University of North

      Carolina at Chapel Hill                                         27,995,490                 28,629,560

b.   Division of Health

      Affairs                                                                  14,442,365                 16,229,517

3.   North Carolina State

      University at Raleigh                                                     23,727,419                 24,569,736

4.   University of North Carolina

      at Greensboro                                                                9,813,813                 10,235,746

5.   University of North Carolina

      at Charlotte                                                                    5,745,348                   6,528,408

6.   University of North Carolina

      at Asheville                                                                     1,668,118                   1,680,987

7.   University of North Carolina

      at Wilmington                                                                 2,318,772                   2,458,588

East Carolina University                                                      12,264,799                 12,558,317

North Carolina Agricultural and

      Technical State University                                               5,098,972                   5,214,395

Western Carolina University                                                  6,086,311                   6,615,696

Appalachian State University                                                 7,305,849                   8,269,663

Pembroke State University                                                    2,137,381                   2,176,244

Winston-Salem State University                                            2,202,095                   2,163,171

Elizabeth City State University                                               1,848,451                   1,879,189

Fayetteville State University                                                  1,897,152                   1,939,143

North Carolina Central University                                         4,675,920                   4,763,849

North Carolina School of the Arts                                         1,385,227                   1,365,236

North Carolina Board of Science

      and Technology                                                                 502,349                      506,938

North Carolina School for the Deaf                                       2,513,684                   2,660,158

Eastern North Carolina School for

      the Deaf                                                                         1,771,330                   1,905,073

The Governor Morehead School                                           1,801,592                   1,842,898

Medical Care Commission-Student

      Loan Fund-Medical Education                                           400,000                      400,000

State Board of Education-Student

      Loan Fund-Teacher Education                                        1,000,000                   1,000,000

Department of Archives and History                                      1,476,342                   1,508,608

Tryon Palace-Department of

      Archives and History                                                         176,856                      181,651

State Library:

      1.  Library                                                                         741,075                      753,600

      2.  State Aid to Public

            Libraries                                                                   2,089,027                   2,091,632

North Carolina Museum of Art                                                578,053                      582,806

North Carolina State Art Society                                          8,000,000                   8,000,000

North Carolina Symphony Society,

      Inc.                                                                                   212,237                      212,237

Old Salem, Inc.                                                                         62,500                        62,500

Highlands Biological Station, Inc.                                               31,050                        31,050

Moore's Creek Battleground

      Association                                                                               500                             500

Vagabond School of the Drama                                                   5,000                          5,000

      Subtotal – Education                                             $    741,077,041          $   777,606,955

VIII. HEALTH AND HOSPITALS

State Board of Health                                                            $      10,762,571          $     11,398,913

Medical Care Commission                                                                 259,272                      263,138

University of North Carolina –

Memorial Hospital                                                                8,458,127                   8,457,987

Department of Mental Health:

1.   General Administration                                                    9,015,730                   9,061,229

2.   Alcoholic Rehabilitation

Center-Black Mountain                                                     749,730                      764,331

3.   Alcoholic Rehabilitation

Center-Butner                                                                   751,827                      766,034

4.   Walter B. Jones Alcoholic

Rehabilitation Center-

Greenville                                                                          745,573                      782,935

5.   Dorothea Dix Hospital                                                  10,960,722                 10,958,823

6.   Broughton Hospital                                                         8,434,800                   8,717,080

7.   Western Carolina Center                                                5,677,798                   6,039,150

8.   Cherry Hospital                                                              9,627,536                   9,929,167

9.   O'Berry Center                                                               5,309,923                   5,386,268

10. John Umstead Hospital                                                   7,160,218                   7,347,368

11. Murdoch Center                                                             7,232,091                   7,515,085

12. Caswell Center                                                               6,904,876                   7,053,683

13. Wright School                                                                   262,070                      271,073

Advisory Council on Mental

Retardation                                                                              406,034                      410,822

North Carolina Orthopedic

Hospital                                                                                   864,796                      880,540

North Carolina Cerebral Palsy

Hospital                                                                                   421,893                      425,942

North Carolina Sanatorium System:

1.   General Administration                                                         97,198                        98,335

2.   North Carolina Sanatorium                                             2,053,960                   2,109,933

3.   Western North Carolina

Sanatorium                                                                           1,892,747                   1,920,482

4.   Eastern North Carolina

Sanatorium                                                                           2,436,031                   2,543,047

5.   Gravely Sanatorium                                                           994,245                   1,005,452

North Carolina Cancer Institute,

Inc.                                                                                           26,000                        26,000

Asheville Orthopedic Hospital                                                            205,000                      205,000

Subtotal-Health and Hospitals                                   $      101,710,768        $    104,337,817

IX. RESOURCE DEVELOPMENT AND PRESERVATION

Department of Conservation and

Development:

1.   Department of Conservation

      and Development                                                $          9,840,675       $          9,933,636

2.   Kerr Reservoir Development

      Commission-Nutbush Conservation

      Area                                                                                  120,657                      113,459

Department of Water and Air

Resources                                                                            1,848,752                   1,914,989

North Carolina National Park,

Parkway and Forests Development

Commission                                                                               12,175                        12,193

Industrial Extension Service-

North Carolina State University

at Raleigh                                                                                487,741                      500,596

State Ports Authority                                                                          751,436                      259,136

Rural Electrification Authority                                                             109,565                      111,542

Confederate Museum-Richmond,

Virginia                                                                                           200                             200

Confederate Cemetery-Raleigh,

North Carolina                                                                               350                             350

Garden Clubs of North Carolina,

Inc.-The Elizabethan Garden                                                      13,000                        13,000

Brevard Music Center                                                                          32,500                        32,500

Subtotal-Resource Development

and Preservation                                                       $        13,217,051       $        12,891,601

X. AGRICULTURE

Department of Agriculture                                                    $          6,018,882       $          6,241,648

Agricultural Experiment Station-

North Carolina State University

at Raleigh                                                                             7,276,345                   7,572,745

Cooperative Agricultural Extension

Service-North Carolina State

University at Raleigh                                                             6,139,123                   6,428,171

State Soil and Water Conservation

Committee                                                                               301,474                      303,063

Subtotal-Agriculture                                                  $        19,735,824       $        20,545,627

XI. DEBT SERVICE

Interest on Bonds                                                                $          6,266,260       $          6,846,030

Redemption of Bonds                                                                    12,365,000                 13,870,000

Subtotal-Debt Service                                               $        18,631,260       $        20,716,030

XII. RESERVES

Contingency and Emergency:

To provide for contingency and emergency expenditures for any purpose authorized by law for which no specific appropriation has been made, or for which inadvertently an insufficient appropriation has been made. Allotments are to be made from this appropriation under the provisions of G.S. 143-12, or such other statutes as may be applicable.      $                                                                                    2,000,000                                 $   1,500,000

Salary Increases of State

Employees Subject to the

Personnel Act and Administrative

Personnel of the

Judicial Department                                                            16,522,460                 23,872,980

Salary Adjustments of State

Employees                                                                            4,546,954                   5,352,323

Reserve for Social Security                                                                 196,900                   3,503,100

Teachers' and State Employees'

Retirement System:

1.   Reserve for Hospitalization-Medical Insurance

      and Disability Salary Continuation Benefits          ______________                 16,090,776

Subtotal-Reserves                                                     $        23,266,314       $        50,319,179

      TOTAL GENERAL FUND                                $   1,080,757,239       $   1,154,437,784

HIGHWAY FUND

Sec. 3.  Appropriations from the Highway Fund of the State for the expense of collecting revenues, for the service of the highway debt, and for the maintenance of the highway activities, are hereby made for the two fiscal years ending June 30, 1972, and June 30, 1973, respectively, according to the following schedule:

III. PUBLIC SAFETY AND REGULATION

                                                                                                         1971-72                     1972-73

Department of Motor Vehicles                                             $        28,153,110       $        30,150,461

Transportation Inspection

(Utilities Commission)                                                              255,918                      259,063

Gasoline and Oil Inspection

Service (Department of

Agriculture)                                                                             499,759                      493,542

Governor's Highway Safety

Program                                                                               2,122,732                   2,128,546

Subtotal-Public Safety and

Regulation                                                                 $        31,031,519       $        33,031,612

VI. EDUCATION

Driver Training and Safety

Education                                                                  $          2,800,216       $          2,727,765

VII. HIGHWAYS

State Highway Commission:

1.   Merit Salary Increments                                      $          4,022,575       $          6,610,663

2.   Reserve for Contingencies                                                  500,000                      500,000

3.   General Administration                                                    3,979,397                   3,989,956

4.         Engineering Administration

and Supervision                                                 8,701,065                   8,626,211

5.         State Maintenance and

Construction:

a.   Primary System                                          80,657,955                 81,646,326

b.   Secondary System                                     62,500,000                 64,500,000

c.  Urban System                                            21,000,000                 21,500,000

d.  Public Service Roads                                   2,206,000                   1,500,000

6.         State Funds to Match Federal

Aid Highway Planning Survey

and Highway Planning

Research                                                              800,000                      800,000

7.         State Funds to Match Federal

Aid Construction                                             47,974,000                 47,974,000

8. State Aid to Municipalities                            26,062,500                 27,250,000

9.         Employer's Contribution-

Retirement                                                        6,585,196                   6,780,046

10.       Employer's Contribution-

Social Security                                                  4,083,648                   4,386,685

Subtotal-Highways                                                    $      269,072,336       $      276,063,887

XI. DEBT SERVICE

Bond Fund Act of 1965-Interest

      and Redemption                                                  $        17,147,000       $        11,769,000

Highway Bond Anticipation Notes-

Interest and Redemption                                               10,400,000                 10,100,000

Subtotal-Debt Service                                               $        27,547,000       $        21,869,000

XII. RESERVES

Salary Adjustments of Highway

Fund Employees                                                 $          1,907,632       $          2,607,632

Salary Increases of Highway Fund

Employees Subject to the

Personnel Act                                                                 7,784,579                 13,638,915

Teachers' and State Employees'

Retirement System:

Hospitalization-Medical

Insurance & Disability

Salary Continuation Benefits-

Highway Fund Employees                                                                                 2,206,152

Reserve for Social Security                                                                   17,660                      170,302

Subtotal-Reserves                                                     $          9,709,871       $        18,623,001

TOTAL HIGHWAY FUND                               $      340,160,942       $      352,315,265

Transfers and changes may be made in the Highway Fund from Salary Increases, Salary Adjustments and Reserve for Social Security to other appropriations in the Highway Fund by authorization of the Director of the Budget. Transfers and changes may be made from the Reserve for Contingencies to other appropriations in the Highway Fund by authorization of the Governor and Council of State. Transfers and changes may be made to and/or from Title VII — 3, 4, 5(a), 5(b), 5(c), 5(d), 6, and 7 by authorization of the Director of the Budget: Provided, Title VII — 5(a), 5(b), 5(c), 5(d), shall not be reduced by more than thirty percent (30%) of the appropriations herein stated for State Maintenance and Construction Systems and Title VII-6 and 7 shall not be reduced by more than ten percent (10%) of the appropriations herein stated. In the event that the State revenues accruing to the Highway Fund exclusive of one cent (l¢) gasoline tax for Debt Service exceed the estimated revenues for each year of the biennium, to wit, three hundred seven million, five hundred eighty-five thousand dollars ($307,585,000) for the fiscal year 1971-72, and three hundred twenty million, nine hundred ninety-five thousand dollars ($320,995,000) for the fiscal year 1972-73, such excesses may be allocated in the next succeeding year by the Director of the Budget, to increase the appropriations under Titles III, VI, VII - 3, 4, 5(a), 5(b), 5(c), 5(d), 6 and 7, and XII. Increases in Highway Fund surplus from sources other than revenues may be allocated in the next succeeding year by the Director of the Budget, to increase the appropriations under Titles III, VI, VII - 3, 4, 5(a), 5(b), 5(c), 5(d), 6 and 7, and XII.

The design, construction, maintenance, and repair of institutional streets, roads and driveways authorized under the provisions of this act shall be undertaken by the State Highway Commission at the earliest possible time following the passage of this act, with the cost thereof to be paid from the Highway Fund; in accordance with the following schedule:

                                                                                                 Page and Item

                                                                                                 in Vol. Ill of the

Institution                                                                              Recommended Budget             Amount

 

University of North

Carolina at Chapel Hill

Health Affairs                                                            Page 32                 Item 1             $ 40,000

University of North

Carolina at Asheville                                                          43                         2                25,000

Pembroke State University                                                       72                         6              100,000

Winston-Salem State University                                               75                         2                65,000

North Carolina Central University                                            87                         6                12,000

North Carolina School of the Arts                                            90                         4                46,000

North Carolina School for the Deaf                                          95                         8                70,000

                                                                                                                            9                20,000

Western Carolina Center Murdoch                                        115                         3              165,000

Murdoch Center                                                                    124                         3                85,000

Fayetteville State University-

Extension of Edgecombe Avenue                                                                                            78,000

University of North Carolina at Chapel Hill Health Affairs University of North Carolina at Asheville University Center

Sec. 4.  There is hereby appropriated out of funds available in the various Special Funds sufficient amounts to carry on required activities included under each Fund's operations subject to provisions of the Executive Budget Act, Chapter 143, Article 1, General Statutes of North Carolina.

GENERAL PROVISIONS

Sec. 5.  All insurance and all official fidelity and surety bonds authorized for the several departments, institutions, and agencies shall be effected and placed by the Insurance Department, and the cost of such placement shall be paid by the department, institution, or agency involved upon bills rendered to and approved by the Insurance Commissioner.

SPECIAL PROVISIONS

Sec. 6.  Appropriations made herein to the various State agencies for the purpose of purchasing medical, dental, optometric, and hospital services, including all services provided under Title XIX of the Social Security Act, and for care in homes for the aged, shall be disbursed on the basis of rates and fee schedules approved by the Advisory Budget Commission or as specifically established by this act.

Sec. 7.  Funds appropriated herein to the State Department of Social Services for medical assistance (Medicaid) are to be expended in accordance with the following schedule of services, eligibility and payment rates:

                                                                                          Eligibility

                                                                         Categorically        Medically                Payment

Service                                                                  Needy               Needy                     Rates

Inpatient                                                                    X                       X             Allowable Costs

                                                                                                                          limted to 10 days

                                                                                                                                per spell of

                                                                                                                                    illness

Outpatient Hospital                                                    X                       X                 Pay 90% of

                                                                                                                             allowable costs

Mental Hospitals                                                        X                       X             Allowable Costs

Nursing Homes                                                          X                                     Pay allowable cost

                                                                                                                         Up to $14 per day

Drugs                                                                        X                       X            Pay $1.75 service

                                                                                                                          fee per prescript-

                                                                                                                            tion plus actual

                                                                                                                                drug cost

Physicians                                                                  X                       X           Pay 90% of allow-

                                                                                                                             able usual and

                                                                                                                         customary charges

Chiropractors                                                            X                                     Pay 90% of allow-

                                                                                                                             able usual and

                                                                                                                         customary charges

Dental                                                                        X                       X           Pay 90% of allow-

                                                                                                                             able usual and

                                                                                                                         customary charges

                                                                                                                             for fillings, ex-

                                                                                                                          tractions, prophy-

                                                                                                                           laxis & fluoride,

                                                                                                                           X-rays, relief of

                                                                                                                           pain and denture

                                                                                                                                  repairs

Home Health                                                             X                       X           Pay 90% of allow-

                                                                                                                                able costs

Optical Services                                                         X                       X           Pay 90% of allow-

                                                                                                                             able usual and

                                                                                                                         customary charges

Medicare Buy In                                                        X                       X                 Actual Cost

It is the intent of the General Assembly that the State will pay ninety percent(90'/) and the counties will pay ten percent (10%) of the non-federal costs of applicable services under the Medicaid Program.

It is the further intent of the General Assembly that the State Board of Social Services will carefully review the rate of expenditure during the 1971-73 biennium in the Medicaid Program. If the rate of expenditure is determined to be in excess of funds available in the Department of Social Services, the scope of services and/or the rate of reimbursement for services may be reduced to remain within available funds. Any necessary reduction in services or reimbursement rates will be subject to the approval of the Governor and the Advisory Budget Commission.

The State Board of Social Services is directed to implement a reasonable recipient co-payment requirement in the Medicaid Program, as may be approved by the Advisory Budget Commission, when such co-payment requirement is permissible under federal law.

Sec. 8.  It is the intent and purpose of this act that all divisions of the Department of Local Affairs except the Division of Human Resources be transferred to the Department of Conservation and Development, and that the Division of Human Resources be transferred to the Department of Social Services. It is the further intent and purpose that the Director of the Budget be authorized to transfer supporting appropriations to the affected departments within three months after July 1, 1971.

Sec. 9.  The Director of the Budget is authorized and empowered to transfer, as between the three institutions, the appropriations made in this act for the North Carolina School for the Deaf, the Eastern North Carolina School for the Deaf, and the Governor Morehead School, and as between the eight training schools under the jurisdiction of the Board of Juvenile Correction, the appropriations made to any of them, when in his opinion it shall be deemed to be in the best interest of the State.

Sec. 10.  It is the intent of the General Assembly that funds appropriated herein to the State Board of Education for a Public Kindergarten Program be allocated to give first priority to continuation of State or Elementary and Secondary Education Act of 1965, Title III, federally-supported kindergarten classes conducted in a public school unit for the 1970-71 school year.

Sec. 11.  It is the intention of this act that, as to new units except as herein authorized, no recommendations for establishment of additional units shall be made by the Department of Community Colleges in the absence of a showing of a clear and urgent need in a particular area of the State. It is the further intention of this act that it shall be the announced policy of the Department of Community Colleges that, as to capital improvement projects, no construction contracts may be let until it has been clearly established that funds are available for the related permanent equipment.

Funds appropriated herein to the State Board of Education, Department of Community Colleges, to purchase equipment for the Community Colleges institutions, (Code 18072) shall be permanent appropriations, and unexpended portions of these appropriations shall not revert to the General Fund at the end of the biennium.

Sec. 12.  The Director of the Budget shall require that the Highway Fund, other special funds employing personnel and other operations employing personnel which are designated by the Governor and Advisory Budget Commission as self-supporting operations shall budget as a line item object of expenditure sufficient funds to pay their employer proportion of contributions to the Teachers' and State Employees' Retirement System as required by the act creating said system.

No part of the appropriations made in Section 2 of this act shall be used to supply the State's or employer's contribution for retirement system purposes or Social Security purposes with respect to the compensation of any State employee (1) whose compensation is paid out of receipts of any State institution or agency (other than gifts, including foundation funds), which receipts are deposited in institutional funds for the specific purpose of paying the compensation of such employee, or (2) who performs his duties for an operation or activity designated by the Director of the Budget as a self-supporting operation or activity, or (3) who performs his duties for an operation or activity not supported by an appropriation from the State General Fund. In those instances in which an employee's salary is paid in part from the General Fund or from gifts (including foundations) and in part from receipts of the State institution or agency (other than gifts, including foundation funds), which receipts are deposited in institutional funds for the specific purpose of paying part of the compensation of such State employee, the appropriations described above shall be used to pay a portion of the employer's contribution for retirement and social security equal to that proportion of the employee's total salary paid from the General Fund or from gifts (including foundations), and the remainder of the employer's contribution shall be paid from the same sources as supply the remainder of such employee's salary. It is the intent and purpose of this act that, when retirement system or social security matching funds are required to be made on behalf of the State as an employer in the situations described above in this paragraph, such matching funds to the extent necessary shall be paid out of the funds of the institution or operation or activity described above in this paragraph. Notwithstanding the restrictions in this paragraph, the Director of the Budget is authorized and empowered to promulgate rules and regulations to apply to receipts-supported operations of a central services nature where the payments for services originate from appropriations, to the end that the effective purchasing power of such appropriations shall not be materially reduced as a result of payment of the employer's contribution for retirement and social security. Any question as to the applicability of this paragraph shall be resolved by the Director of the Budget and the Advisory Budget Commission.

Sec. 13.  It is the intent and purpose of this act that the Director of the Budget authorize the employment of personnel for the Probation Commission to the extent to which the funds appropriated therefor will permit, provided, however, that such employment does not permit the ratio of probationers to probation officers to drop below 80 to 1.

Sec. 14.  It is the intent and purpose of this act to establish and maintain an adequate level of direct patient care in each of the mental health institutions.

Positions recommended in the budgets for the 1971-73 biennium shall not be reclassified or funds reallocated to the extent that the level of direct patient care would be reduced.

Sec. 15.  Upon the recommendation of the Board of Higher Education, the Director of the Budget is authorized and empowered, when in his opinion it is in the best interest of the State to do so, to transfer portions of the operating funds appropriated herein from one or more senior institutions experiencing enrollment below its approved level to one or more senior institutions experiencing enrollment substantially above its approved level. The senior institutions shall include, for this purpose, the regional universities, the various campuses of the University of North Carolina, and the North Carolina School of the Arts.

Sec. 16.  It is the intent of this act that the enrollment levels as approved herein for the budgets of the senior institutions of higher education shall be closely adhered to insofar as is practicable. The president or chancellor of any institution which is substantially over-enrolled during the biennium shall be called upon to explain to the Board of Higher Education and to the succeeding General Assembly the reasons for the failure of the institution to control the size of enrollment.

Sec. 17.  The Director of the Budget is authorized to permit the use of unexpended 1971-72 appropriations from non-salary line items in affected budgets for the purchase of initial inventories and equipment for central services revolving funds at State institutions.

Sec. 18.  It is the intent and purpose of this act that funds appropriated herein for travel and postage shall be conserved by the agencies so that additional funds for either of these purposes will not be required during the biennium 1971-73. Agencies are required to exercise strict control over such expenditures, to the end that appropriations shall be sufficient for these purposes without transfer of additional funds.

Sec. 19.  Subject to a recommendation of the Director of the Budget, funds not to exceed one hundred and fifty thousand dollars ($150,000) for each year of the biennium 1971‑73 may be allotted out of the Contingency and Emergency Appropriation for use by the State Department of Agriculture, North Carolina Agricultural Experiment Station, and the U. S. Department of Agriculture, for a witch weed control program and/or for payment of hog cholera indemnities.

Sec. 20.  Appropriations made herein to the Department of Social Services for the purpose of providing State matching funds for improvements in local confinement facilities shall be disbursed on the basis of the State plan for such assistance developed by the Department of Social Services subject to the approval of the Advisory Budget Commission.

Sec. 21.  The Director of the Budget, upon the recommendation of the Board of Higher Education in consultation with the School of Medicine of the University of North Carolina, is authorized and empowered, upon approval of the Advisory Budget Commission, to disburse from appropriations made herein funds to enable the School of Medicine of the University of North Carolina to set up advanced medical student clinical clerkships and house staff rotations in community hospitals in non-urban areas of North Carolina, and in particular Eastern North Carolina.

Sec. 22.  The Director of the Budget is authorized and empowered to transfer from the appropriations for Reserve for Social Security Increases, such amounts as may be required to pay the increased employer's matching contribution for social security as required effective January 1, 1972.

Sec. 23.  Subject to rules and regulations promulgated by the Department of Administration and approved by the Director of the Budget, any State department, institution, or agency of the State is hereby authorized to expend, from appropriations made in this act, funds to pay the expenses of transporting the household goods and furniture of an employee and members of his household when the transfer of such employee is considered by the Director of the Budget to be in the best interests of the State.

SALARIES AND WAGES

Sec. 24.  The Director of the Budget is authorized and empowered to transfer from the appropriations for Salary Increases of State Employees subject to the Personnel Act and Administrative Personnel of the Judicial Department, such amounts, including the retirement and social security contributions, as may be required to increase salaries in effect on June 30, 1971, for all permanent employees by five percent (5%) commencing July 1, 1971, and by an additional five percent (5%) commencing July 1, 1972, rounded to conform to the steps in such salary ranges as may be adopted by the State Personnel Board. For an employee whose salary is not equal to a specific pay rate within the present salary schedule, the annual increase will be the amount applicable to the next lower pay rate.

The Director of the Budget is further authorized to transfer any unexpended balances which may remain, after the provisions of this section have been fully met, from the appropriations for Salary Increases of State Employees subject to the Personnel Act and Administrative Personnel of the Judicial Department to the appropriations for Salary Adjustments of State Employees.

The provisions of this section shall be applied to increase salaries paid out of special funds or from sources other than tax revenues, provided the necessary funds are made available from operations or from sponsoring agents. The Director of the Budget is authorized and empowered to allocate, out of special operating funds under which personnel are employed, sufficient funds to conform with the provisions of this section, provided funds are available or made available by sponsoring agents.

Salaries for positions which are paid partially from the General Fund and partially from sources other than the General Fund shall be increased from the General Fund appropriation to the extent of the proportionate part paid from the General Fund.

The salary increases for employees whose salaries are paid from receipts derived from self-supporting activities shall be contingent upon availability of funds out of receipts, except that for employees whose salaries are paid from receipts-supported operations of a central-services nature, where the payments for services originate from appropriations, the Director of the Budget is authorized and empowered to promulgate rules and regulations to provide for the salary increases of these employees to the end that the effective purchasing power of such appropriations for services shall not be materially reduced. Any question as to the applicability of this paragraph shall be resolved by the Director of the Budget and the Advisory Budget Commission.

The salary increases shall not affect the status of eligibility for automatic and/or merit salary increments for which the employee may be eligible for the fiscal years 1971-72 and 1972-73 notwithstanding the granting of the legislative salary increase.

The salary range for all employees under the Personnel Act shall be increased, so far as the maximum is concerned, by amounts corresponding to those of this legislative salary increase to the end that, after the salary increase provided for in this act is made, every employee will continue to have the same relative position with respect to salary increases and future increments as he would have had if the salary increases provided by this act had not been made.

The salary increase provided in this act to be effective July 1, 1971, shall not apply to persons separated from State services due to resignation, dismissal, reduction in force, death or retirement, whose last work day is prior to July 1, 1971; and the salary increase provided in this act to be effective July 1, 1972, shall not apply to persons separated from State service due to resignation, dismissal, reduction in force, death, or retirement, whose last work day is prior to July 1, 1972.

Sec. 25.  The Director of the Budget is authorized and empowered to transfer to General Fund budget codes from the General Fund Salary Adjustment appropriation, and to Highway Fund budget codes from the Highway Fund Salary Adjustment appropriation, such amounts as may be required to support (a) approved salary adjustments made necessary by difficulties in recruiting and holding qualified employees in State Government, and (b) such premium pay and shift differential schedules as may be adopted by the State Personnel Board. These funds are intended to be transferred only when the use of salary reserve funds in individual operating budgets is not feasible.

Sec. 26.  The salary of the Chief Justice of the Supreme Court shall be thirty-four thousand dollars ($34,000) per annum, and the salaries of each of the Associate Justices of the Supreme Court shall be thirty-three thousand dollars ($33,000) per annum; the salary of the Chief Judge of the Court of Appeals shall be thirty-one thousand five hundred dollars ($31,500) per annum, and the salaries of the Judges of said Court shall be thirty thousand five hundred dollars ($30,500) per annum; the salaries of the Judges of the Superior Court shall be twenty-five thousand five hundred dollars ($25,500) per annum; the salary of the Chief Judge of each District Court shall be twenty thousand five hundred dollars ($20,500) per annum, and the salary of each District Court Judge shall be nineteen thousand five hundred dollars ($19,500) per annum; the salary of each Solicitor shall be twenty-three thousand dollars ($23,000) per annum, and the salaries of the Assistant Solicitors shall average fourteen thousand five hundred dollars ($14,500) per annum. The salary of the Administrative Officer of the Courts shall be twenty-seven thousand five hundred dollars ($27,500) per annum, and the salary of the Assistant Administrative Officer of the Courts shall be twenty thousand dollars ($20,000) per annum.

EFFECTIVE

Sec. 27.  The provisions of the Executive Budget Act, Chapter 143, Article 2 of the General Statutes, are re-enacted and shall remain in full force and effect, and are incorporated in this act by reference.

Sec. 28.  If any section or provision of this act be declared unconstitutional or invalid by the courts, the same shall not affect the validity of the act as a whole or any part other than the part so declared to be unconstitutional or invalid.

Sec. 29.  All laws and clauses of laws in conflict with this act are hereby repealed.

Sec. 30.  This act shall become effective on July 1, 1971.

In the General Assembly read three times and ratified, this the 30th day of June, 1971.