GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2005

 

 

SENATE BILL 622

RATIFIED BILL

 

 

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

 

The General Assembly of North Carolina enacts:

 

 

PART i. INtroduction and title of act

 

INTRODUCTION

SECTION 1.1.  The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget in accordance with the Executive Budget Act.  Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and the savings shall revert to the appropriate fund at the end of each fiscal year, except as otherwise provided by law.

 

TITLE OF ACT

SECTION 1.2.  This act shall be known as the "Current Operations and Capital Improvements Appropriations Act of 2005."

 

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 made for the biennium ending June 30, 2007, according to the following schedule:

 

Current Operations – General Fund                                  2005‑2006             2006‑2007

 

EDUCATION

 

Community Colleges System Office                                $  787,685,943       $  767,295,886

 

Department of Public Instruction                                      6,607,998,945        6,579,807,097

 

University of North Carolina ‑ Board of Governors

      Appalachian State University                                             97,708,514             98,114,232

      East Carolina University

      Academic Affairs                                                              165,132,181           168,098,010

      Health Affairs                                                                      45,624,110             45,671,394

      Elizabeth City State University                                          28,376,210             28,173,367

      Fayetteville State University                                              42,540,261             42,778,425

      North Carolina Agricultural and

            Technical State University                                           76,497,695             76,533,207

      North Carolina Central University                                    59,223,437             58,883,106

      North Carolina School of the Arts                                    21,173,905             20,698,614

      North Carolina State University

            Academic Affairs                                                        299,773,341           304,775,818

            Agricultural Extension                                                  36,389,142             35,668,328

            Agricultural Research                                                   45,200,460             45,281,347

      University of North Carolina at Asheville                        29,211,816             29,705,695

      University of North Carolina at Chapel Hill

            Academic Affairs                                                        212,164,735           220,475,219

            Health Affairs                                                              162,938,570           164,709,561

            Area Health Education Centers                                    44,743,422             44,743,422

      University of North Carolina at Charlotte                      125,613,588           132,319,883

      University of North Carolina at Greensboro                  112,318,841           113,459,797

      University of North Carolina at Pembroke                       41,277,854             41,754,482

      University of North Carolina at Wilmington                    74,161,294             76,371,666

      Western Carolina University                                             71,404,729             71,990,778

      Winston‑Salem State University                                       48,726,028             48,658,641

      General Administration                                                      48,804,831             48,890,151

      University Institutional Programs                                     24,610,415             28,278,415

      Related Educational Programs                                        112,937,512           114,905,552

      North Carolina School of Science and

            Mathematics                                                                  14,555,420             14,513,392

      UNC Hospitals at Chapel Hill                                            44,944,579             43,944,579

Total University of North Carolina –

      Board of Governors                                                   $ 2,086,052,890    $ 2,119,397,081

 

HEALTH AND HUMAN SERVICES

 

Department of Health and Human Services

      Office of the Secretary                                                 $  113,855,919       $  118,880,919

      Division of Aging                                                                29,975,639             29,495,139

      Division of Blind Services/Deaf/HH                                   9,676,797               9,681,220

      Division of  Child Development                                      268,350,017           267,356,799

      Division of Education Services                                         33,852,267             34,281,895

      Division of Facility Services                                             13,608,838             15,959,466

      Division of Medical Assistance                                   2,509,772,054        2,751,209,159

      Division of Mental Health                                               603,315,155           602,556,655

      NC Health Choice                                                               68,169,765             51,882,902

      Division of Public Health                                                152,391,232           150,814,496

      Division of Social Services                                             188,512,693           190,679,285

      Division of Vocational Rehabilitation Services               41,755,526             42,142,193

Total Health and Human Services                                   $ 4,033,235,902    $ 4,264,940,128

 

NATURAL AND ECONOMIC RESOURCES

 

Department of Agriculture and Consumer Services        $    52,040,846       $    51,032,884

 

Department of Commerce

      Commerce                                                                           49,686,999             36,728,265

      Commerce State‑Aid                                                          26,512,085             11,722,085

      NC Biotechnology Center                                                  12,083,395             10,583,395

      Rural Economic Development Center                              25,277,607             25,052,607

 

Department of Environment and Natural Resources           177,197,119           167,451,089

 

Department of Labor                                                                14,419,553             14,434,925

 

JUSTICE AND PUBLIC SAFETY

 

Department of Correction                                               $ 1,029,924,421    $ 1,048,492,502

 

Department of Crime Control and Public Safety                   34,793,934             35,153,488

 

Judicial Department                                                                342,604,760           345,726,582

Judicial Department ‑ Indigent Defense                                 94,037,973             88,648,414

 

Department of Justice                                                              77,322,567             78,697,271

 

Department of Juvenile Justice and

      Delinquency Prevention                                                   140,377,666           138,873,166

 

GENERAL GOVERNMENT

 

Department of Administration                                           $    62,039,261       $    58,818,473

 

Office of Administrative Hearings                                            2,987,410               2,969,712

 

Department of State Auditor                                                    10,850,737             10,840,918

 

Office of State Controller                                                        10,043,268             10,044,511

 

Department of Cultural Resources

      Cultural Resources                                                             73,433,514             62,917,147

      Roanoke Island Commission                                                1,783,374               1,783,374

 

State Board of Elections                                                             5,107,543               5,069,307

 

General Assembly                                                                     42,934,588             46,965,432

 

Office of the Governor

      Office of the Governor                                                         5,324,590               5,344,528

      Office of State Budget and Management                            5,019,735               5,021,795

      OSBM – Reserve for Special Appropriations                  11,358,429               5,111,429

      Housing Finance Agency                                                    10,450,945               4,750,945

 

Department of Insurance

      Insurance                                                                              28,220,714             28,110,582

      Insurance –  Volunteer Safety Workers'

            Compensation                                                                  2,000,000               4,500,000

 

Office of Lieutenant Governor                                                     754,737                   753,037

 

Department of Revenue                                                            81,447,475             80,630,250

 

Department of Secretary of State                                              8,934,063               9,269,633

 

Department of State Treasurer

      State Treasurer                                                                       8,690,595               8,295,843

      State Treasurer – Retirement for Fire

            and Rescue Squad Workers                                            8,651,457               8,651,457

 

TRANSPORTATION

 

Department of Transportation                                            $         200,000       $                      0

 

RESERVES, ADJUSTMENTS AND DEBT SERVICE

 

Reserve for Compensation Increases                                $  243,181,327       $  235,185,705

 

Salary Adjustment Fund:  2005‑2007 Biennium                      4,500,000               4,500,000

 

Salary Adjustment Fund:  2004‑2005 Fiscal Year                   4,500,000               4,500,000

 

Reserve for Teachers' and State Employees'

      Retirement Contribution                                                    13,810,800             13,810,800

 

Reserve for Retirement System Payback                               25,000,000                               0

 

Reserve for Death Benefit Trust                                              12,899,200             12,899,200

 

Reserve for Disability Income Plan                                          6,586,500               6,586,500

 

Reserve for State Health Plan                                                108,648,000           142,728,000

 

Contingency and Emergency Fund                                             5,000,000               5,000,000

 

Reserve for Information Technology

      Rate Adjustments                                                                 (2,300,000)            (2,300,000)

 

Information Technology Fund                                                  24,375,000               8,025,000

 

MH/DD/SAS Trust Fund                                                           10,000,000                               0

 

Health and Wellness Trust Fund                                              10,000,000                               0

 

Reserve for Job Development

      Investment Grants (JDIG)                                                     9,000,000             12,400,000

 

Reserve for Increased Fuel Costs                                              3,000,000                               0

 

Reserve for Contingent Appropriations                                  85,000,000             85,000,000

 

Debt Service

      General Debt Service                                                       489,544,211           619,291,140

      Federal Reimbursement                                                        1,616,380               1,616,380

 

TOTAL CURRENT OPERATIONS –

      GENERAL FUND                                                  $ 17,025,846,458  $ 17,293,127,963

 

GENERAL FUND AVAILABILITY STATEMENT

SECTION 2.2.(a)  The General Fund availability used in developing the 2005‑2007 biennial budget is shown below:

                                                                                                FY 2005‑2006       FY 2006‑2007

 

Unappropriated Balance Remaining

      from Previous Year                                                      $                      0       $  117,227,875

Projected Over Collections FY 2004‑2005                        681,500,000                               0

Projected Reversions FY 2004‑2005                                   115,000,000                               0

Less Earmarkings of Year End Credit Balance                                                                         0

      Savings Reserve Account                                                (199,125,000)                             0

      Repairs and Renovations                                                 (125,000,000)                             0

Beginning Unreserved Credit Balance                       $  472,375,000       $  114,345,875

 

Revenues Based on Existing Tax Structure            $ 15,417,300,000  $ 16,993,257,284

 

Nontax Revenues

      Investment Income                                                              74,800,000             78,700,000

      Judicial Fees                                                                      144,800,000           148,300,000

      Disproportionate Share                                                    100,000,000           100,000,000

      Insurance                                                                              49,500,000             51,300,000

      Other Nontax Revenues                                                    138,000,000           151,300,000

      Highway Trust Fund/Use Tax

            Reimbursement Transfer                                            252,558,117           252,663,009

      Highway Fund Transfer                                                       16,166,400             16,166,400

Subtotal Nontax Revenues                                              $  775,824,517       $  798,429,409

 

Total General Fund Availability                              $ 16,665,499,517  $ 16,990,375,284

 

Adjustments to Availability:  2005 Session                                                                          

      Streamlined Sales Tax Changes                                         40,000,000             61,700,000

      Maintain 4.5% Sales Tax Rate                                         417,100,000           462,700,000

      Other Sales Tax Changes

            Apply Sales Tax to Candy                                               9,800,000             15,800,000

            Apply General Sales Tax Rate to Cable                       10,900,000             26,100,000

            Exempt Potting Soil for Farmers                                    (200,000)                (300,000)

      Tobacco Tax Rate Changes                                              118,800,000           189,400,000

      Extend 8.25% Individual Income

            Tax Rate for 2 years                                                      39,800,000             89,700,000

      Continue Use Tax Line on Individual Returns                    3,200,000               3,200,000

      Conform Estate Tax to Federal Sunset                              29,100,000           115,600,000

      Film Industry Jobs Incentives                                             (3,500,000)            (3,500,000)

      IRC Update – Partial Conformance                                   (8,000,000)          (10,700,000)

      Adjust Rates for Health Maintenance

            Organizations                                                                                  0             14,300,000

      Increase Earmarking for

            NC Grape Growers Council                                             (150,000)                (150,000)

      Proceeds from the Sale of the Polk Building                     4,977,781                               0

      Justice and Public Safety Fees                                           17,028,271             20,428,271

      Transfer from Tobacco Trust Fund                                    34,000,000             30,000,000

      Transfers from Special Revenue and Other Funds             5,453,950                               0

      Reimburse Debt Service for

            Certain Capital Facilities and

            Land Acquisition per S.L. 2004‑179                             5,958,723             21,060,827

      Transfer to Civil Penalty and Forfeiture Fund                (80,000,000)          (85,000,000)

      Suspend Highway Fund Transfer                                      (16,166,400)          (16,166,400)

      Adjust Transfer from Insurance Regulatory Fund                  389,013                   243,813

      Adjust Transfer from Treasurer's Office                                468,478                     67,478

 

Subtotal Adjustments to Availability:

      2005 Session                                                                $  628,959,816       $ 934,483,989

           

Revised General Fund Availability                         $ 17,294,459,333  $ 17,927,741,273

           

Less: General Fund Appropriations

      SB 622 (2005 Appropriations Act)                          (17,077,231,458)  (17,293,127,963)

      G.S. 143‑15.3B:  Clean Water

            Management Trust Fund                                            (100,000,000)        (100,000,000)

 

Total General Fund Appropriations

      2005‑2007 Biennium                                            ($17,177,231,458) ($17,393,127,963)

           

Unappropriated Balance Remaining                           $  117,227,875       $  534,613,310

 

SECTION 2.2.(b)  Notwithstanding G.S. 143‑16.4(a2), of the funds credited to the Tobacco Trust Account from the Master Settlement Agreement pursuant to Section 6(2) of S.L. 1999‑2 during the 2005‑2007 fiscal biennium, the sum of thirty‑four million dollars ($34,000,000) for the 2005‑2006 fiscal year and the sum of thirty million dollars ($30,000,000) for the 2006‑2007 fiscal year shall be transferred from the Department of Agriculture and Consumer Services, Budget Code 23703 (Tobacco Trust Fund) to the State Controller to be deposited in Nontax Budget Code 19978 (Intrastate Transfers) to support General Fund appropriations for the 2005‑2006 and 2006‑2007 fiscal years.

SECTION 2.2.(c)  G.S. 143‑15.3 is amended by adding a new subsection to read:

"(a2)    The transfer of funds to the Savings Reserve Account in accordance with this section or any other provision of law is not an "appropriation made by law", as that phrase is used in Article V, Section 7(1) of the North Carolina Constitution."

This subsection becomes effective June 30, 2005.

SECTION 2.2.(d)  Notwithstanding G.S. 143‑15.2 and G.S. 143‑15.3A, the State Controller shall transfer one hundred twenty-five million dollars ($125,000,000) from the unreserved credit balance to the Repairs and Renovations Reserve Account on June 30, 2005. Funds transferred under this section to the Repairs and Renovations Reserve Account are appropriated for the 2005‑2006 fiscal year to be used in accordance with G.S. 143‑15.3A.  This subsection becomes effective June 30, 2005.

SECTION 2.2.(e)  When the Highway Trust Fund was created in 1989, the revenue from the sales tax on motor vehicles was transferred from the General Fund to the Highway Trust Fund.  To offset this loss of revenue from the General Fund, the Highway Trust Fund was required to transfer one hundred seventy million dollars ($170,000,000) to the General Fund each year, an amount equal to the revenue in 1989 from the sales tax on motor vehicles.  This transfer did not, however, make the General Fund whole after the transfer of the sales tax revenue because no provision has been made to adjust the amount for the increased volume of transactions and increased vehicle prices.  The additional eighty million dollars ($80,000,000) transferred from the Highway Trust Fund to the General Fund by this act is an effort to recover a portion of the sales tax revenues that would have gone to the General Fund over the last 16 years.

SECTION 2.2.(f)  Notwithstanding G.S. 105‑187.9(b)(1), the sum to be transferred under that subdivision for the 2005‑2006 fiscal year and for the 2006‑2007 fiscal year is two hundred fifty million dollars ($250,000,000).

SECTION 2.2.(g)  Section 2.2(g) of S.L. 2002‑126 is repealed.

SECTION 2.2.(h)  Notwithstanding any other provision of law to the contrary, effective July 1, 2005, cash balances remaining in special funds on June 30, 2005, shall be transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intrastate Transfers) according to the schedule that follows.  These funds shall be used to support General Fund appropriations for the 2005‑2006 fiscal year.

 

Fund                                                                                                           Amount Transferred

Department of Environment and Natural Resources

Budget Code 24300, Fund Code 2338 (DAQ‑Inspections

       and Maintenance – Air Pollution)                                                              $     300,000

Budget Code 24300, Fund Code 2106 (DEH – Sleep Products)                          200,000

Budget Code 24300, Fund Code 2735 (DLR – Sedimentation Fees)                  200,000

Budget Code 24300, Fund Code 2130 (DWQ – Well Construction Fund)         100,000

Budget Code 24300, Fund Code 2335 (DWQ – Lab Certification Fees)            100,000

Budget Code 24300, Fund Code 2341 (DWQ – Water Permits)                         500,000

Budget Code 64306, Fund Code 6341 (DWQ – WW Treatment

      Maintenance and Repair)                                                                                    100,000

Budget Code 24304, Fund Code 2982 (DWQ – Riparian Buffer

      Restoration)                                                                                                      2,000,000

 

Department of Corrections

Budget Code 24502, (Inmate Canteen/Welfare Fund)                                          440,000

 

Judicial Department

Budget Code 22005, Fund Code 2263 (Worthless Check Fund)                         100,000

 

Department of Administration

Budget Code 24160, Fund Code 2000 (NC Flex)                                                  913,950

 

SECTION 2.2.(i)  The transfer of cash from Department of Correction, Budget Code 74500, Fund Code 7100 (Prison Enterprises) to Nontax Budget Code 19978 (Intrastate Transfers) shall be increased by five hundred thousand dollars ($500,000), effective July 1, 2005, for the 2005‑2006 fiscal year.

SECTION 2.2.(j)  The Governor shall analyze the current State public school teacher salary schedule, trends in salaries, and the current disparity between North Carolina teacher pay and the national average to determine how teacher pay affects the State's ability to recruit and retain highly qualified public school teachers to improve educational opportunity and outcomes for children across North Carolina.  The Governor may, after consultation with the Speaker of the House and the President Pro Tempore of the Senate, devise and execute prior to July 1, 2006, a plan to reduce the disparity and may use funds available from the Reserve for Contingent Appropriations to begin to execute such a plan.

 

PART iII. current operations and expansion/highway fund

 

CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND

SECTION 3.1.  Appropriations from the State Highway Fund for the maintenance and operation of the Department of Transportation and for other purposes as enumerated are made for the biennium ending June 30, 2007, according to the following schedule:

 

Current Operations – Highway Fund                               2005‑2006              2006‑2007

Department of Transportation

      Administration                                                             $      93,888,317      $     95,100,980

 

Division of Highways

      Administration                                                                     30,621,612             30,632,164

      Construction                                                                      167,010,000           139,750,000

      Maintenance                                                                      804,714,539           714,793,288

      Planning and Research                                                          4,280,000               4,280,000

      OSHA Program                                                                         425,000                   425,000

 

Ferry Operations                                                                       21,264,811             21,264,811

 

State Aid

      Municipalities                                                                     91,910,000             92,650,000

      Public Transportation                                                         66,466,447             89,866,447

      Railroads                                                                              17,308,153             17,101,153

 

Governor's Highway Safety                                                           293,118                   293,118

Division of Motor Vehicles                                                     96,047,914             95,468,137

Other State Agencies                                                              222,948,237           214,860,979

Reserves and Transfers                                                             20,831,852             22,422,852

 

TOTAL                                                                               $1,638,010,000      $1,538,908,929

 

HIGHWAY FUND AVAILABILITY STATEMENT

SECTION 3.2.  The Highway Fund availability used in developing the 2005‑2007 biennial budget is shown below:

 

Highway Fund Availability Statement                              2005‑2006               2006‑2007

 

Beginning Credit Balance                                                 $     10,490,000                               –

Estimated Revenue                                                              1,627,520,000  1,697,940,000 Estimated Reversions      –    –

 

Total Highway Fund Availability                               $ 1,638,010,000    $ 1,697,940,000

 

PART iv. highway trust fund appropriations

 

HIGHWAY TRUST FUND APPROPRIATIONS

SECTION 4.1.  Appropriations from the State Highway Trust Fund for the maintenance and operation of the Department of Transportation and for other purposes as enumerated are made for the biennium ending June 30, 2007, according to the following schedule:

 

Current Operations – Highway Trust Fund                2005‑2006                  2006‑2007

 

           

Intrastate System                                                                472,112,366               496,924,658

Urban Loops                                                                       190,902,579               200,935,637

Aid to Municipalities                                                           49,535,599                  52,138,988

Secondary Roads                                                                  86,825,599                  90,358,988

Program Administration                                                      41,295,740                  42,918,720

Transfer to General Fund                                                   252,558,117               252,663,009

           

Grand Total Current Operations

      and Expansion                                                $1,093,230,000          $1,135,940,000

 

PART V. BLOCK GRANTS

 

DHHS BLOCK GRANTS

SECTION 5.1.(a)  Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2006, according to the following schedule:

 

COMMUNITY SERVICES BLOCK GRANT

 

01.       Community Action Agencies                                                      $ 15,071,666

 

02.       Limited Purpose Agencies                                                                  837,315

 

03.       Department of Health and Human Services

to administer and monitor

the activities of the

Community Services Block Grant                                                      837,315

 

TOTAL COMMUNITY SERVICES BLOCK GRANT                                $ 16,746,296

 

SOCIAL SERVICES BLOCK GRANT

 

01.       County departments of social services                                      $ 28,868,189

(Transfer from TANF – $4,500,000)

 

02.       Allocation for in‑home services provided

by county departments of

social services                                                                                   2,101,113

 

03.       Adult day care services                                                                     2,155,301

 

04.       Child Protective Services/CPS Investigative

            Services/Child Medical Evaluation Program                                     238,321

 

05.       Foster Care Services – CCIs                                                            1,706,063

 

06.       Division of Aging and Adult Services – Home and Community

            Care Block Grant                                                                               1,834,077

 

07.       UNC‑CH CARES Program for training and

            consultation services                                                                            247,920

 

08.       Mental Health Services Program                                                        422,003

 

09.       Division of Mental Health, Developmental Disabilities, and

            Substance Abuse Services – Developmentally Disabled

            Services Program                                                                              5,000,000

 

10.       Division of Mental Health, Developmental Disabilities,

            and Substance Abuse Services                                                          3,234,601

 

11.       Division of Services for the Blind – Independent

            Living Program                                                                                  3,182,987

 

12.       Division of Vocational Rehabilitation Services –

            Easter Seals Society/UCP                                                                   188,263

 

13.       Office of the Secretary – Office of Economic

            Opportunity for N.C. Senior Citizens'

            Federation for outreach services to

low‑income elderly persons                                                                  41,302

 

14.       Child Care Subsidies                                                                         3,150,000

 

15.       Division of Facility Services –

Adult Care Licensure Program                                                            411,897

 

16.       Division of Facility Services –

Mental Health Licensure                                                                     205,668

 

17.       State administration                                                                          1,706,017

 

18.       Division of Mental Health, Developmental

            Disabilities, and Substance Abuse Services –

            Administration                                                                                        18,098

 

19.       Division of Facility Services                                                                 37,204

 

20.       Office of the Secretary – NC Interagency Council

            for Coordinating Homeless Programs                                               250,000

 

21.       Department of Administration

            for the N.C. State Commission of Indian Affairs

            In‑Home Services Program for the Elderly                                       203,198

 

22.       Transfer to Preventative Health Services Block

            Grant for HIV/AIDS education, counseling, and

            testing                                                                                                    145,819

 

TOTAL SOCIAL SERVICES BLOCK GRANT                                           $ 55,348,041

 

LOW‑INCOME ENERGY BLOCK GRANT

 

01.       Energy Assistance Programs                                                      $ 13,208,740

 

02.       Crisis Intervention                                                                             9,592,387

 

03.       Administration                                                                                   3,186,258

                County DSS                                                       $1,930,734

                Division of Social Services                             $   300,000

                Division of Mental Health, Developmental

                Disabilities, and Substance Abuse

                   Services                                                          $       7,146

                Local Residential Energy Efficiency

                   Service Providers                                          $   353,820

                Office of the Secretary                                    $   594,558

 

04.       Weatherization Program                                                                   4,343,072

 

05.       Department of Administration –

N.C. State Commission of Indian Affairs                                             54,840

 

06.       Heating Air Repair and Replacement Program                               2,025,687

 

TOTAL LOW‑INCOME ENERGY BLOCK GRANT                                 $ 32,410,984

 

MENTAL HEALTH SERVICES BLOCK GRANT

 

01.       Provision of community‑based

services for severe and persistently

mentally ill adults                                                                           $ 6,983,202

 

02.       Provision of community‑based

services to children                                                                           3,921,991

 

03.       Comprehensive Treatment Services

Program for Children                                                                        1,500,000

 

04.       Administration                                                                                      568,911

 

TOTAL MENTAL HEALTH SERVICES BLOCK GRANT                        $ 12,974,104

 

SUBSTANCE ABUSE PREVENTION

AND TREATMENT BLOCK GRANT

 

01.       Provision of community‑based

alcohol and drug abuse services,

tuberculosis services, and services

provided by the Alcohol and Drug Abuse

Treatment Centers                                                                       $ 20,441,082

 

02.       Continuation of services for

pregnant women and women

with dependent children                                                                    8,069,524

 

03.       Continuation of services to

IV drug abusers and others at risk

for HIV diseases                                                                                4,816,378

 

04.       Child Substance Abuse Prevention                                                  5,835,701

 

05.       Provision of services to children

and adolescents                                                                                  4,940,500

 

06.       Juvenile Services – Family Focus                                                       851,156

 

07.       Allocation to the Division of Public Health

for HIV/STD Risk Reduction Projects                                               383,980

 

08.       Allocation to the Division of Public Health

for HIV/STD Prevention by County Health

Departments                                                                                          209,576

 

09.       Allocation to the Division of Public Health

for the Maternal and Child Health Hotline                                           37,779

 

10.       Administration                                                                                   2,596,307

 

TOTAL SUBSTANCE ABUSE PREVENTION

AND TREATMENT BLOCK GRANT                                                         $ 48,181,983

 

CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT

 

01.       Child care subsidies                                                                   $161,058,393

 

02.       Quality and availability initiatives                                                  33,059,644

 

03.       Administrative expenses                                                                   7,163,654

 

04.       Transfer from TANF Block Grant for

child care subsidies                                                                         81,292,880

 

TOTAL CHILD CARE AND DEVELOPMENT FUND

BLOCK GRANT                                                                                           $282,574,571

 

TEMPORARY ASSISTANCE TO NEEDY FAMILIES

(TANF) BLOCK GRANT

 

01.       Work First Cash Assistance                                                      $114,625,680

 

02.       Work First County Block Grants                                                   94,653,315

 

03.       Child Welfare Workers for local DSS                                          12,452,391

 

04.       Support Our Students – Department of

            Juvenile Justice and Delinquency

            Prevention                                                                                          2,749,642

 

05.       Family Violence Prevention                                                             1,200,000

 

06.       Work First – After‑School Services for

At‑Risk Children

YWCA Central Carolinas

Youth Development Programs  $176,000                                      2,249,642

 

07.       Division of Social Services –

Administration                                                                                      356,291

 

08.       Office of the Secretary –

Administration                                                                                        60,249

 

09.       Child Welfare Training                                                                     2,550,000

 

10.       Boys and Girls Clubs                                                                        1,500,000

 

11.       Work Central Career Advancement Center                                        550,000

 

12.       Special Children's Adoption Fund                                                    3,000,000

 

13.       Maternity Homes                                                                                  838,000

 

14.       After‑School Programs for At‑Risk Youth in

            Middle Schools                                                                                     500,000

 

15.       Pregnancy Prevention Initiatives                                                     2,500,000

 

16.       Subsidized Child Care for TANF Recipients                                36,563,266

 

17.       TANF Automation Projects                                                                 592,500

 

18.       NC FAST Implementation                                                                2,717,298

 

19.       Transfer to the Child Care and

            Development Fund Block Grant

            for child care subsidies                                                                  81,292,880

 

20.       Transfer to Social Services Block Grant for

            County Departments of Social Services for

            Children's Services                                                                            4,500,000

 

TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES

(TANF) BLOCK GRANT                                                                             $365,451,154

 

MATERNAL AND CHILD HEALTH BLOCK GRANT

 

01.       Healthy Mothers/Healthy Children

Block Grants to Aid‑to‑County                                                        9,359,236

 

02.       Children's Health Services Aid‑to‑County                                      7,364,216

 

03.       Healthy Beginnings Aid‑to‑County                                                     404,559

 

04.       Maternal Health Aid‑to‑County                                                          397,761

 

05.       Children's Health Services                                                               2,836,028

 

06.       Office of Women's Health and

            Maternal Health Activities                                                                   114,063

 

07.       State Center for Health Statistics                                                          28,874

 

08.       Local Technical Assistance & Training                                                46,866

 

09.       Injury and Violence Prevention                                                           149,438

 

10.       Office of Minority Health                                                                     99,352

 

11.       Special Supplemental Nutrition Program

            for Women, Infants and Children (WIC)                                              25,713

 

12.       Immunization Program – Vaccine Distribution                                 819,997

 

13.       Administration                                                                                      475,282

 

14.       Adolescent Pregnancy Prevention Coalition of NC                            85,710

            Total of $150,000 grant‑in‑aid

 

TOTAL MATERNAL AND CHILD

HEALTH BLOCK GRANT                                                                           $ 22,207,095

 

PREVENTIVE HEALTH SERVICES BLOCK GRANT

 

01.       Statewide Health Promotion Programs                                        $3,653,520

 

02.       Rape Crisis/Victims' Services

Program – Council for Women                                                          197,112

 

03.       Transfer from Social Services

Block Grant – HIV/AIDS education,

counseling, and testing                                                                         145,819

 

04.       Oral Health                                                                                            134,251

 

05.       Administration and Program Support                                                 121,271

 

06.       Osteoporosis Task Force Operating Costs                                        150,000

 

TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT                   $4,401,973

 

GENERAL PROVISIONS

SECTION 5.1.(b)  Information to Be Included in Block Grant Plans. – The Department of Health and Human Services shall submit a separate plan for each Block Grant received and administered by the Department, and each plan shall include the following:

(1)       A delineation of the proposed allocations by program or activity, including State and federal match requirements.

(2)       A delineation of the proposed State and local administrative expenditures.

(3)       An identification of all new positions to be established through the Block Grant, including permanent, temporary, and time‑limited positions.

(4)       A comparison of the proposed allocations by program or activity with two prior years' program and activity budgets and two prior years' actual program or activity expenditures.

(5)       A projection of current year expenditures by program or activity.

(6)       A projection of federal Block Grant funds available, including unspent federal funds from the current and prior fiscal years.

SECTION 5.1.(c)  Changes in Federal Fund Availability. – If the Congress of the United States increases the federal fund availability for any of the Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall allocate the increase proportionally across the program and activity appropriations identified for that Block Grant in this section.  In allocating an increase in federal fund availability, the Department shall not propose funding for new programs or activities not appropriated in this section or increase State administrative expenditures.

If the Congress of the United States decreases the federal fund availability for any of the Block Grants administered by the Department of Health and Human Services from the amounts appropriated in this section, the Department shall reduce State administration by at least the percentage of the reduction in federal funds. After determining the State administration, the remaining reductions shall be allocated proportionately across the program and activity appropriations identified for that Block Grant in this section. In allocating a decrease in federal fund availability, the Department shall not eliminate the funding for a program or activity appropriated in this section unless it is related to the State administration.

Prior to allocating the change in federal fund availability, the proposed allocation must be approved by the Office of State Budget and Management. If the Department adjusts the allocation of any Block Grant due to changes in federal fund availability, then a report shall be made to the Joint Legislative Commission on Governmental Operations, the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.

SECTION 5.1.(d)  All changes to the budgeted allocations to the Block Grants administered by the Department of Health and Human Services that are not specifically addressed in this section shall be approved by the Office of State Budget and Management, and a report shall be submitted to the Joint Legislative Commission on Governmental Operations for review prior to implementing the changes. All changes to the budgeted allocations to the Block Grant shall be reported immediately to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.

SECTION 5.1.(e)  The Department of Health and Human Services shall develop a monitoring and oversight plan for all recipients, both public and private, and subrecipients of the federal Block Grant funding. The plan shall be modeled after the Department's performance contracting initiative and include the following:

(1)       Performance standards for recipients.

(2)       Financial audit standards for non‑State entities equivalent to the requirements in G.S. 143‑6.2 for non‑State entities receiving State funds.

(3)       Means for collecting performance data from recipients.

(4)       Any other information necessary for monitoring and overseeing the use of Block Grant funding.

The Department shall provide the plan to the Fiscal Research Division by January 1, 2006.

SECTION 5.1.(f)  The Department of Health and Human Services shall report to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division on positions funded from federal Block Grants. The report shall include the following for each Block Grant:

(1)       All State positions currently funded through the Block Grant, including permanent, temporary, and time‑limited positions.

(2)       Budgeted salary and fringe benefits for each position.

(3)       Identify the percentage of Block Grant funds used to fund each position.

The report shall be submitted no later than December 1, 2005.

SOCIAL SERVICES BLOCK GRANT

SECTION 5.1.(g)  Social Services Block Grant funds appropriated to the North Carolina Inter‑Agency Council for Coordinating Homeless Programs are exempt from the provisions of 10A NCAC 71R.0201(3).

LOW‑INCOME HOME ENERGY ASSISTANCE PROGRAM

SECTION 5.1.(h)  Additional emergency contingency funds received may be allocated for Energy Assistance Payments or Crisis Intervention Payments without prior consultation with the Joint Legislative Commission on Governmental Operations. Additional funds received shall be reported to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division upon notification of the award. The Department of Health and Human Services shall not allocate funds for any activities, including increasing administration, other than assistance payments, without prior consultation with the Joint Legislative Commission on Governmental Operations.

MENTAL HEALTH BLOCK GRANT

SECTION 5.1.(i)  The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this section in the Mental Health Block Grant to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, for the 2005‑2006 fiscal year, and the sum of four hundred twenty‑two thousand three dollars ($422,003) appropriated in this section in the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2005‑2006 fiscal year shall be used to continue a Comprehensive Treatment Services Program for Children in accordance with Section 10.25 of this act.

SECTION 5.1.(j)  The Department of Health and Human Services shall contract with the University of North Carolina at Chapel Hill for the purpose of providing psychology student stipends in the amount of fifty thousand dollars ($50,000) for the 2005‑2006 fiscal year. Twenty‑five thousand dollars ($25,000) of this contract shall be paid from the Mental Health Block Grant.

CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT

SECTION 5.1.(k)  The sum of no more than four hundred thousand dollars ($400,000) appropriated in this section to the Department of Health and Human Services in the Child Care and Development Fund Block Grant may be used for the operations of the Medical Child Care Pilot.

SECTION 5.1.(l)  Payment for subsidized child care services provided with federal TANF funds shall comply with all regulations and policies issued by the Division of Child Development and School Readiness for the subsidized child care program.

SECTION 5.1.(m)  If funds appropriated through the Child Care and Development Fund Block Grant for any program cannot be obligated or spent in that program within the obligation or liquidation periods allowed by the federal grants, the Department may move funds to child care subsidies, unless otherwise prohibited by federal requirements of the grant, in order to use the federal funds fully.

TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BLOCK GRANT (TANF)

SECTION 5.1.(n)  The sum of four hundred sixteen thousand five hundred forty dollars ($416,540) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2005‑2006 fiscal year shall be used to support administration of TANF‑funded programs.

SECTION 5.1.(o)  The sum of two million seven hundred forty‑nine thousand six hundred forty‑two dollars ($2,749,642) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services and transferred to the Department of Juvenile Justice and Delinquency Prevention for the 2005‑2006 fiscal year shall be used to support the existing Support Our Students Program, including gang prevention, and to expand the Program statewide, focusing on low‑income communities in unserved areas. These funds shall not be used for administration of the Program.

SECTION 5.1.(p)  The sum of one million two hundred thousand dollars ($1,200,000) appropriated under this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2005‑2006 fiscal year shall be used to provide domestic violence services to Work First recipients.  These funds shall be used to provide domestic violence counseling, support, and other direct services to clients.  These funds shall not be used to establish new domestic violence shelters or to facilitate lobbying efforts.  The Division of Social Services may use up to seventy‑five thousand dollars ($75,000) in TANF funds to support one administrative position within the Division of Social Services to implement this subsection.

Each county department of social services and the local domestic violence shelter program serving the county shall jointly develop a plan for utilizing these funds. The plan shall include the services to be provided and the manner in which the services shall be delivered. The county plan shall be signed by the county social services director or the director's designee and the domestic violence program director or the director's designee and submitted to the Division of Social Services by December 1, 2005. The Division of Social Services, in consultation with the Council for Women, shall review the county plans and shall provide consultation and technical assistance to the departments of social services and local domestic violence shelter programs, if needed.

The Division of Social Services shall allocate these funds to county departments of social services according to the following formula:  (i) each county shall receive a base allocation of five thousand dollars ($5,000); and (ii) each county shall receive an allocation of the remaining funds based on the county's proportion of the statewide total of the Work First caseload as of July 1, 2005, and the county's proportion of the statewide total of the individuals receiving domestic violence services from programs funded by the Council for Women as of July 1, 2005. The Division of Social Services may reallocate unspent funds to counties that submit a written request for additional funds.

The Department of Health and Human Services shall report on the uses of these funds no later than March 1, 2006, to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.

SECTION 5.1.(q)  The sum of two million two hundred forty‑nine thousand six hundred forty‑two dollars ($2,249,642) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, shall be used to expand after‑school programs and services for at‑risk children. The Department shall develop and implement a grant program to award grants to community‑based programs that demonstrate the ability to reach children at risk of teen pregnancy, school dropout, and gang participation. The Department shall award grants to community‑based organizations that demonstrate the ability to develop and implement linkages with local departments of social services, area mental health programs, schools, and other human services programs in order to provide support services and assistance to the child and family. These funds may be used to fund one position within the Division of Social Services to coordinate at‑risk after‑school programs and shall not be used for other State administration. The Department shall report no later than March 1, 2006, on its progress in complying with this section to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.

SECTION 5.1.(r)  The sum of twelve million four hundred fifty‑two thousand three hundred ninety‑one dollars ($12,452,391) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in the TANF Block Grant for the 2005‑2006 fiscal year for child welfare improvements, shall be allocated to the county departments of social services for hiring or contracting staff to investigate and provide services in Child Protective Services cases; to provide foster care and support services; to recruit, train, license, and support prospective foster and adoptive families; and to provide interstate and postadoption services for eligible families.

SECTION 5.1.(s)  The sum of two million five hundred fifty thousand dollars ($2,550,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for fiscal year 2005‑2006 shall be used to support various child welfare training projects as follows:

(1)       Provide a regional training center in southeastern North Carolina.

(2)       Support the Masters Degree in Social Work/Baccalaureate Degree in Social Work Collaborative.

(3)       Provide training for residential child care facilities.

(4)       Provide for various other child welfare training initiatives.

SECTION 5.1.(t)  The sum of eight hundred thirty‑eight thousand dollars ($838,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services shall be used to purchase services at maternity homes throughout the State.

SECTION 5.1.(u)  The sum of three million dollars ($3,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Special Children Adoption Fund, for the 2005‑2006 fiscal year shall be used in accordance with Section 10.48 of this act.  The Division of Social Services, in consultation with the North Carolina Association of County Directors of Social Services and representatives of licensed private adoption agencies, shall develop guidelines for the awarding of funds to licensed public and private adoption agencies upon the adoption of children described in G.S. 108A‑50 and in foster care. Payments received from the Special Children Adoption Fund by participating agencies shall be used exclusively to enhance the adoption services program. No local match shall be required as a condition for receipt of these funds.