GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2007
SESSION LAW 2008-107
HOUSE BILL 2436
AN ACT TO MODIFY THE CURRENT OPERATIONS AND CAPITAL APPROPRIATIONS ACT OF 2007, TO AUTHORIZE INDEBTEDNESS FOR CAPITAL PROJECTS, AND TO MAKE VARIOUS TAX LAW AND FEE CHANGES.
The General Assembly of North Carolina enacts:
PART I. INTRODUCTION AND TITLE OF ACT
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. Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and, except as allowed by the State Budget Act, or this act, the savings shall revert to the appropriate fund at the end of each fiscal year as provided in G.S. 143C‑1‑2(b).
SECTION 1.2. This act shall be known as "The Current Operations and Capital Improvements Appropriations Act of 2008."
PART II. CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
Current Operations – General Fund FY 2008‑2009
EDUCATION
Community Colleges System Office $ 33,639,698
Department of Public Instruction 93,731,253
University of North Carolina – Board of Governors
Appalachian State University (175,179)
East Carolina University
Academic Affairs 1,665,101
Health Affairs 0
Elizabeth City State University 0
Fayetteville State University (250,409)
NC Agricultural and Technical University (476,363)
North Carolina Central University 0
North Carolina School of the Arts 0
North Carolina State University
Academic Affairs (622,928)
Agricultural Extension 0
Agricultural Research 0
University of North Carolina at Asheville (26,836)
University of North Carolina at Chapel Hill
Academic Affairs (589,752)
Health Affairs (736,357)
Area Health Education Centers 0
University of North Carolina at Charlotte (756,504)
University of North Carolina at Greensboro 0
University of North Carolina at Pembroke (59,019)
University of North Carolina at Wilmington (752,940)
Western Carolina University (159,665)
Winston‑Salem State University 0
General Administration 0
University Institutional Programs 74,741,366
Related Educational Programs (44,990,000)
North Carolina School of Science and Mathematics 0
UNC Hospitals at Chapel Hill 0
Total University of North Carolina – Board of Governors $ 26,810,515
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Division of Central Management and Support $ (9,809,966)
Division of Aging and Adult Services 2,500,000
Division of Services for the Blind and Deaf/Hard of Hearing 75,000
Division of Child Development (6,102,422)
Office of Education Services 698,940
Division of Health Service Regulation 822,028
Division of Medical Assistance (210,822,007)
Division of Mental Health, Developmental Disabilities,
and Substance Abuse Services 21,347,833
NC Health Choice 10,056,864
Division of Public Health 6,805,537
Division of Social Services 1,144,782
Division of Vocation Rehabilitation (2,000,000)
Total Health and Human Services $ (185,283,411)
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services $ 4,960,589
Department of Commerce
Commerce 7,974,970
Commerce State‑Aid 12,901,578
NC Biotechnology Center 3,844,166
Rural Economic Development Center 53,756,974
Department of Environment and Natural Resources
Environment and Natural Resources 12,273,734
Clean Water Management Trust Fund 0
Department of Labor 901,392
JUSTICE AND PUBLIC SAFETY
Department of Correction $ 289,817
Department of Crime Control and Public Safety 2,580,175
Judicial Department (1,558,255)
Judicial Department – Indigent Defense (435,057)
Department of Justice (426,758)
Department of Juvenile Justice and Delinquency Prevention 20,194,280
GENERAL GOVERNMENT
Department of Administration $ 1,277,048
Office of Administrative Hearings 313,544
Department of State Auditor (283,938)
Office of State Controller (110,940)
Department of Cultural Resources
Cultural Resources 3,785,367
Roanoke Island Commission (15,000)
State Board of Elections 582,934
General Assembly (881,000)
Office of the Governor
Office of the Governor (84,205)
Office of State Budget and Management 15,242
OSBM – Reserve for Special Appropriations 16,950,000
Housing Finance Agency 12,000,000
Department of Insurance
Insurance 633,492
Insurance – Volunteer Safety Workers' Compensation (1,150,000)
Office of Lieutenant Governor 0
Department of Revenue (1,415,864)
Department of Secretary of State 135,771
Department of State Treasurer
State Treasurer 763,829
State Treasurer – Retirement for Fire and Rescue Squad Workers 1,027,851
TRANSPORTATION
Department of Transportation 0
RESERVES, ADJUSTMENTS AND DEBT SERVICE
Compensation Increases $ 368,844,588
Salary Adjustment Fund 2007‑2009 Biennium 0
Teachers' & State Employees' Retirement Contributions 30,237,400
Hospitalization Reserve (5,000,000)
Reserve for Eliminated Positions 0
Grant to Counties for Teachers' Personal Leave Day 5,000,000
Contingency and Emergency Fund 0
Information Technology Fund 0
Job Development Investment Grants Reserve 15,000,000
North Carolina Master Address Dataset 1,000,000
Criminal Justice Data Integration 5,000,000
Pending Gang Prevention Legislation (HB 274) 10,000,000
Task Force on Preventing Pesticide Exposure 357,055
Debt Service
General Debt Service (17,500,000)
Federal Reimbursement 0
TOTAL CURRENT OPERATIONS – GENERAL FUND $ 532,638,834
GENERAL FUND AVAILABILITY STATEMENT
SECTION 2.2.(a) Section 2.2(a) of S.L. 2007‑323 is repealed. The General Fund availability used in adjusting the 2008‑2009 budget is shown below:
FY 2008‑2009
Unappropriated Balance from FY 2007‑08, S.L. 2007‑323 $ 270,504,098
Net Adjustment – S.L. 2007‑540 (1,000,000)
Adjustment from Estimated to Actual 2007‑2008
Beginning Unreserved Balance 47,867,864
Projected Reversions from FY 2007‑2008 170,000,000
Projected Overcollections from FY 2007‑2008 88,700,000
Less: Credit to Repairs and Renovation Reserve Account 69,839,238
Beginning Unreserved Fund Balance $ 506,232,724
Revenues Based on Existing Tax Structure $ 19,903,800,000
Nontax Revenues
Investment Income $ 247,300,000
Judicial Fees 204,800,000
Disproportionate Share 100,000,000
Insurance 62,900,000
Other Nontax Revenues 160,600,000
Highway Trust Fund Transfer 172,500,000
Highway Fund Transfer 17,600,000
Subtotal Nontax Revenues $ 965,700,000
Total General Fund Availability $ 21,375,732,724
Adjustments to Availability: 2008 Session
Adjustments for Economic Uncertainty $ (45,000,000)
Extend Sunset for State Ports Tax Credit (1,000,000)
Extend Credit for Research & Development (1,000,000)
Modify Estate Tax Law (2,000,000)
Exempt Disaster Assistance Debit Sales (500,000)
Sales Tax Holiday for Certain Energy Star Rated Appliances (1,400,000)
Extend Sunset for Small Business Employee
Health Benefits Tax Credit (8,500,000)
State Sales Tax Exemption for Baked Goods
Sold By Artisan Bakeries (1,600,000)
Small Businesses Protection Act (2,200,000)
Excise Tax on Machinery Refurbishers (300,000)
Expand Film Industry Credit and Extend Sunset (100,000)
Expand Renewable Energy Tax Credit (100,000)
Reserve for Tax Relief (700,000)
Health Care Facility Construction Project Fee
Service Regulation Fee Increase 822,028
Adjust Fee Receipts for Asbestos Hazard Management Program 71,615
Adjust Securities Filing Fee 1,993,500
Reduce Transfer to Highway Trust Fund (25,000,000)
Transfer from Disaster Relief Reserve (Western NC Disasters) 26,000,000
Transfer from NC Rx Unexpended Balance 3,500,000
Transfer from Tobacco Trust Fund 5,000,000
Transfer from Health & Wellness Trust Fund 5,000,000
Transfer from Coaching Scholarship Fund 267,000
Transfer from Principal Fellows Trust Fund 1,000,000
Transfer from NC Community College System
Computer Information System (CIS) Fund Balance 4,500,000
Transfer from Focused Industrial Training Unexpended Balance 783,246
Transfer from Disproportionate Share Reserve 19,300,000
Adjust Transfer from Insurance Regulatory Fund 633,492
Adjust Transfer from Treasurer's Office 763,829
Subtotal Adjustments to Availability: 2008 Session $ (19,765,290)
Revised General Fund Availability for 2008‑2009 Fiscal Year $ 21,355,967,434
Less: Total General Fund Appropriations for
2008‑2009 Fiscal Year $ (21,355,967,434)
Unappropriated Balance Remaining 0
SECTION 2.2.(b) Notwithstanding the provisions of G.S. 143C‑4‑3, the State Controller shall transfer sixty nine million eight hundred thirty nine thousand two hundred thirty‑eight dollars ($69,839,238) from the unreserved fund balance to the Repairs and Renovations Reserve Account on June 30, 2008. This subsection becomes effective June 30, 2008.
SECTION 2.2.(c) Funds transferred under this section to the Repairs and Renovations Reserve Account are appropriated for the 2008‑2009 fiscal year to be used in accordance with G.S. 143C‑4‑3.
SECTION 2.2.(c1) Notwithstanding G.S. 143C‑4‑2, the State Controller shall not transfer any funds from the unreserved fund balance to the Savings Reserve Account on June 30, 2008.
SECTION 2.2.(d) Section 2.2.(d) of S.L. 2007‑323 reads as rewritten.
"SECTION 2.2.(d)
Notwithstanding the provisions of G.S. 105‑187.9(b)(1), the sum to
be transferred under that subdivision for the 2007‑2008 fiscal year is
one hundred seventy million dollars ($170,000,000) and for the 2008‑2009
fiscal year is one hundred seventy million dollars ($170,000,000).
one hundred forty‑five million dollars ($145,000,000)."
SECTION 2.2.(e) Notwithstanding G.S. 143C‑9‑3, of the funds credited to the Tobacco Trust, the sum of five million dollars ($5,000,000) 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 (Intra State Transfers) to support General Fund appropriations for the 2008‑2009 fiscal year. These funds shall be transferred on or after April 30, 2009.
SECTION 2.2.(f) Notwithstanding G.S. 143C‑9‑3, of the funds credited to the Health Trust Account, the sum of five million dollars ($5,000,000) that would otherwise be deposited in the Fund Reserve shall be transferred from the Department of State Treasurer, Budget Code 23460 (Health and Wellness Trust Fund), to the State Controller to be deposited in Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2008‑2009 fiscal year.
SECTION 2.2.(g) On July 1, 2008, the State Controller shall transfer twenty‑six million dollars ($26,000,000) from the Disaster Reserve Fund to Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2008‑2009 fiscal year.
SECTION 2.2.(h) On July 1, 2008, the State Controller shall transfer nineteen million three hundred thousand dollars ($19,300,000) from the Disproportionate Share Receipt Reserve, to Nontax Budget Code 19978 (Intra State Transfers) to support General Fund appropriations for the 2008‑2009 fiscal year.
SECTION 2.2.(i) Transfers of additional availability in the amount of ten million fifty thousand two hundred forty‑six dollars ($10,050,246) are made to the General Fund pursuant to Sections 8.9, 9.1, 9.4, and 10.1 of this act.
PART III. CURRENT OPERATIONS/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 adjusted for the fiscal year ending June 30, 2009, according to the following schedule. Amounts set out in brackets are reductions from Highway Fund Appropriations for the 2008‑2009 fiscal year.
2008‑2009
Department of Transportation
Administration ($9,583,308)
Repairs and Renovations 9,084,221
Division of Highways
Administration 0
Construction 1,807,592
Maintenance 24,542,804
Planning and Research 0
OSHA Program 0
Ferry Operations 1,000,000
Public Transportation 0
Airports 0
Railroads 1,000,000
Governor's Highway Safety Program 0
Division of Motor Vehicles 245,266
State Aid to Municipalities 1,807,592
Transfers to Other State Agencies 431,491
Reserve for Compensation Increases 14,762,342
Reserve for Teachers' and State Employees' Retirement Contribution 1,462,000
TOTAL $46,560,000
HIGHWAY FUND AVAILABILITY STATEMENT
SECTION 3.2. Section 3.2 of S.L. 2007‑323 is repealed. The Highway Fund availability used in adjusting the 2008‑2009 fiscal year budget is shown below:
Highway Fund Availability Statement 2008‑2009
Unappropriated Balance From Previous Year 0
Beginning Fund Balance 35,000,000
Estimated Revenue 1,822,550,000
Total Highway Fund Availability $1,857,550,000
PART IV. HIGHWAY TRUST FUND APPROPRIATIONS
HIGHWAY TRUST FUND
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 adjusted for the fiscal year ending June 30, 2009, according to the following schedule. Amounts set out in brackets are reductions from Highway Trust Fund Appropriations for the 2008‑2009 fiscal year.
Current Operations – Highway Trust Fund 2008‑2009
Intrastate System (40,691,943)
Urban Loops (16,454,126)
Aid to Municipalities (4,269,533)
Secondary Roads (7,687,965)
Program Administration 3,627,360
Transfer to General Fund (25,143,793)
North Carolina Turnpike Authority 25,000,000
Total ($65,620,000)
HIGHWAY TRUST FUND AVAILABILITY STATEMENT
SECTION 4.2. Section 4.2 of S.L. 2007‑323 is repealed. The Highway Trust Fund availability used in adjusting the 2008‑2009 fiscal year budget is shown below:
Highway Trust Fund Availability $1,073,160,000
PART V. OTHER AVAILABILITY and appropriations
CIVIL PENALTIES AND FORFEITURES/FUND AVAILABILITY AND APPROPRIATION
SECTION 5.1.(a) Section 5.1(a) of S.L. 2007‑323 reads as rewritten:
"SECTION 5.1.(a) Availability. – The availability used to support appropriations made in this act from the Civil Penalty and Forfeiture Fund is based upon estimated collections of fines and forfeitures from the agencies and in the amounts listed below:
FY 2007‑2008 FY 2008‑2009
Department of Revenue $63,000,000 $63,000,000 $90,738,000
Department of Transportation $15,000,000 $15,000,000 $22,000,000
Employment Security Commission $ 3,000,000 $3,000,000 $4,200,000
Department of Insurance $ 1,000,000 $1,000,000 $600,000
University of North Carolina $ 3,500,000 $3,500,000 $3,600,000
Other Agencies $10,000,000 $10,000,000 $10,900,000
Total Funds Available $95,500,000 $95,500,000 $132,038,000"
SECTION 5.1.(b) Section 5.1(b) of S.L. 2007‑323 reads as rewritten:
"SECTION 5.1.(b)
Appropriations. – Appropriations are made from the Civil Penalty and Forfeiture
Fund for the fiscal biennium year ending June 30, 2009, as follows:
FY 2007‑2008 FY 2008‑2009
School Technology Fund $18,000,000 $18,000,000
State Public School Fund $77,500,000 $77,500,000 $114,038,000
Total Appropriation $95,500,000 $95,500,000 $132,038,000"
SECTION 5.2.(a) Pursuant to G.S. 18C‑164, the revenue used to support appropriations made in this act is transferred from the State Lottery Fund in the amount of three hundred eighty‑five million five hundred thousand dollars ($385,500,000) for the 2008‑2009 fiscal year.
SECTION 5.2.(a1) Notwithstanding G.S. 18C‑164(f), if the actual net lottery revenues for the 2007‑2008 fiscal year exceed the amounts appropriated in the 2007‑2008 fiscal year, the excess net revenue is also transferred from the State Lottery Fund to support appropriations made in this act for the 2008‑2009 fiscal year.
SECTION 5.2.(b) Notwithstanding G.S. 18C‑164(b), funds in the amount of nineteen million seven hundred fifty thousand dollars ($19,750,000) shall be transferred from the Education Lottery Reserve Fund to the Education Lottery Fund to support appropriations made in this act. These funds shall be allocated for class size reduction. Any unexpended funds not needed for this purpose shall be transferred back to the Education Lottery Reserve Fund at the end of the 2008‑2009 fiscal year.
SECTION 5.2.(c) Notwithstanding G.S. 18C‑164(d), the following amounts are appropriated from the Education Lottery Fund for the 2008‑2009 fiscal year:
(1) Class Size Reduction $127,864,291
(2) Prekindergarten Program 84,635,709
(3) Public School Building Capital Fund 154,200,000
(4) Scholarships for Needy Students 38,550,000
Total $405,250,000
SECTION 5.2.(d) The excess lottery revenues for the 2007‑2008 fiscal year that are transferred from the State Lottery Fund pursuant to subsection (a1) of this section are appropriated from the Education Lottery Fund for the 2008‑2009 fiscal year for the Public School Building Capital Fund.
INFORMATION TECHNOLOGY FUND AVAILABILITY AND APPROPRIATION
SECTION 5.3. Section 5.3 of S.L. 2007‑323 reads as rewritten:
"SECTION 5.3.(a) The availability used to support appropriations made in this act from the Information Technology Fund established in G.S. 147‑33.72H is as follows:
FY 2007‑2008 FY 2008‑2009
Receipts from Information
Technology Enterprise Fee $9,800,000 $9,800,000
BEACON/Data Integration Funds $5,000,000 $5,000,000
Interest Income $100,000 $100,000
IT Fund Balance June 30 $600,000 $690,000
Appropriation from General Fund $4,140,000 $2,840,000
Reversions 0 $800,000
Total Funds Available $19,640,000 $18,430,000
$19,230,000
"SECTION 5.3.(b) Appropriations are made from the Information Technology Fund for the 2007‑2009 fiscal biennium as follows:
Office of Information Technology Services FY 2007‑2008 FY 2008‑2009
Information Technology Operations $9,452,835 $8,152,835
$9,451,778
Information Technology Projects $4,497,165 $4,497,165
$4,129,362
BEACON/Data Integration Funds $5,000,000 $5,000,000
Total $18,950,000 $17,650,000
$18,581,140
"SECTION 5.3.(c) The State shall not enter into any information technology enterprise agreements without obtaining written agreements from participating State agencies regarding apportionment of funding. State agencies agreeing to participate (i) must ensure that sufficient funds are budgeted to support their agreed shares of enterprise agreements throughout the life of the contract and (ii) must transfer the funds agreed upon to the Office of Information Technology Services in sufficient time for ITS to meet contract requirements.
"SECTION 5.3.(d) The Office of State Budget and Management shall identify the sum of eight hundred thousand dollars ($800,000) in year‑end reversions from State agencies to support Information Technology Fund programs and operations."
PART VI. GENERAL PROVISIONS
APPROPRIATION OF CASH BALANCES
SECTION 6.1. Section 6.1 of S.L. 2007‑323 reads as rewritten:
"SECTION 6.1.(a) Expenditures
of cash balances, federal funds, departmental receipts, grants, and gifts from
the various General Fund, Special Revenue Fund, Enterprise Fund, Internal
Service Fund, and Trust and Agency Fund budget codesState funds, as
defined in G.S. 143C‑1‑1(d)(25), are appropriated and
authorizedas provided in G.S. 143C‑1‑2 for the 2007‑2009
fiscal biennium as follows:
(1) For all budget codes listed in "North Carolina State Budget, Recommended Operating Budget 2007‑2009, Volumes 1 through 6," cash balances and receipts are appropriated up to the amounts specified in Volumes 1 through 6, as adjusted by the General Assembly, for the 2007‑2008 fiscal year and the 2008‑2009 fiscal year. Funds may be expended only for the programs, purposes, objects, and line items specified in Volumes 1 through 6, or otherwise authorized by the General Assembly.
(1a) For all budget codes listed in the "Governor's Recommended Budget for Governmental and Proprietary Funds and Selected Component Units 2008‑2009" but not covered by subdivisions (2) and (3) of this subsection, as adjusted by the General Assembly in this act.
(2) For all budget codes that are not listed in "North Carolina State Budget, Recommended Operating Budget 2007‑2009, Volumes 1 through 6," cash balances and receipts are appropriated for each year of the 2007‑2009 fiscal biennium up to the level of actual expenditures for the 2006‑2007 fiscal year, unless otherwise provided by law. Funds may be expended only for the programs, purposes, objects, and line items authorized for the 2006‑2007 fiscal year.
(3) Notwithstanding subdivisions (1) and (2) of this subsection, any receipts that are required to be used to pay debt service requirements for various outstanding bond issues and certificates of participation are appropriated up to the actual amounts received for the 2007‑2008 fiscal year and the 2008‑2009 fiscal year and shall be used only to pay debt service requirements.
(4) Notwithstanding subdivisions (1) and (2) of this subsection, cash balances and receipts of funds that meet the definition issued by the Governmental Accounting Standards Board of a trust or agency fund are appropriated for and in the amounts required to meet the legal requirements of the trust agreement for the 2007‑2008 fiscal year and the 2008‑2009 fiscal year.
All these cash balances,
federal funds, departmental receipts, grants, and gifts shall be expended and
reported in accordance with the provisions of the State Budget Act, except as
otherwise provided by law and this section.
"SECTION 6.1.(b) Receipts collected in a fiscal year in excess of the amounts authorized by this section shall remain unexpended and unencumbered until appropriated by the General Assembly in a subsequent fiscal year, unless the expenditure of overrealized receipts in the fiscal year in which the receipts were collected is authorized by the State Budget Act.
Overrealized receipts are appropriated up to the amounts necessary to implement this subsection.
In addition to the consultation and reporting requirements set out in G.S. 143C‑6‑4, the Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office within 30 days after the end of each quarter on any overrealized receipts approved for expenditure under this subsection by the Director of the Budget. The report shall include the source of the receipt, the amount overrealized, the amount authorized for expenditure, and the rationale for expenditure.
"SECTION 6.1.(c) Notwithstanding subsections (a) and (b) of this section, there is appropriated from the Reserve for Reimbursements to Local Governments and Shared Tax Revenues for each fiscal year an amount equal to the amount of the distributions required by law to be made from that reserve for that fiscal year."
EXPENDITURES OF FUNDS IN RESERVES LIMITED
SECTION 6.2. All funds appropriated by this act into reserves may be expended only for the purposes for which the reserves were established.
SECTION 6.3. Notwithstanding G.S. 143C‑6‑4, the Office of State Budget and Management may adjust the enacted budget by making transfers among purposes or programs for the purpose of consolidating budget and fund codes or eliminating inactive budget and fund codes. The Office of State Budget and Management shall change the authorized budget to reflect these adjustments.
CONSULTATION NOT REQUIRED PRIOR TO ESTABLISHING OR INCREASING FEES PURSUANT TO THE STATE BUDGET ACT
SECTION 6.4. Notwithstanding G.S. 12‑3.1, an agency is not required to consult with the Joint Legislative Commission on Governmental Operations prior to establishing or increasing a fee as authorized or anticipated in this act.
AUTHORIZATION TO ESTABLISH RECEIPT‑SUPPORTED POSITIONS
SECTION 6.6. Notwithstanding any other provision of law, a department, institution, or other agency of State government may establish receipt‑supported positions authorized in this act upon approval by the Director of the Budget. The Director, if necessary, may establish a receipt‑supported position pursuant to this section at an annual salary amount different from the salary amount set out in this act if (i) funds are available from the proposed funding source and (ii) the alternative salary amount remains within the established salary range grade identified for the job classification of the affected receipt‑supported position established in this act. The Director shall not change the job classifications or increase the number of receipt‑supported positions specified in this act without prior consultation with the Joint Legislative Commission on Governmental Operations.
CONTINUATION REVIEW OF CERTAIN FUNDS, PROGRAMS, AND DIVISIONS
SECTION 6.7.(a) It is the intent of the General Assembly to establish a process to periodically and systematically review the funds, agencies, divisions, and programs financed by State government. This process shall be known as the Continuation Review Program. The Continuation Review Program is intended to assist the General Assembly in determining whether to continue, reduce, or eliminate funding for the State's funds, agencies, divisions, and programs subject to continuation review.
SECTION 6.7.(b) The Appropriations Committees of the House of Representatives and the Senate may review the funds, programs, and divisions listed in this section and shall determine whether to continue, reduce, or eliminate funding for the funds, programs, and divisions, subject to the continuation review program. The Fiscal Research Division may issue instructions to the State departments and agencies subject to continuation review regarding the expected content and format of the reports required by this section. No later than December 1, 2008, the following agencies shall report to the Fiscal Research Division:
(1) Tarheel Challenge Academy – Department of Crime Control and Public Safety.
(2) Spot Safety Program – Department of Transportation.
(3) Safety Inspection Program – Department of Commerce.
(4) Military Business Center – Community College System.
(5) Purchase of Medical Care Services Program – Department of Health and Human Services.
(6) Parking Office – Department of Administration.
(7) Forest Development Fund – Department of Environment and Natural Resources.
SECTION 6.7.(c) The continuation review reports required in this section shall include the following information:
(1) A description of the fund, agency, division, or program mission, goals, and objectives.
(2) The statutory objectives for the fund, agency, division, or program and the problem or need addressed.
(3) The extent to which the fund, agency, division, or program's objectives have been achieved.
(4) The fund, agency, division, or program's functions or programs performed without specific statutory authority.
(5) The performance measures for each fund, agency, division, or program and the process by which the performance measures determine efficiency and effectiveness.
(6) Recommendations for statutory, budgetary, or administrative changes needed to improve efficiency and effectiveness of services delivered to the public.
(7) The consequences of discontinuing funding.
(8) Recommendations for improving services or reducing costs or duplication.
(9) The identification of policy issues that should be brought to the attention of the General Assembly.
(10) Other information necessary to fully support the General Assembly's Continuation Review Program along with any information included in instructions from the Fiscal Research Division.
SECTION 6.7.(d) State departments and agencies identified in subsection (b) of this section shall submit a final report to the General Assembly by March 1, 2009.
STATE SUPPORT OF OUR MILITARY PERSONNEL
SECTION 6.8. The General Assembly finds that North Carolina has a rich military heritage and is the site of some of the nation's major military installations, including Camp Lejeune, Fort Bragg, Pope Air Force Base, Seymour Johnson Air Force Base, New River Marine Corps Air Station, United States Coast Guard Air Station, Elizabeth City, and Cherry Point Marine Corps Air Station. The General Assembly further finds that North Carolina is the home to more than 770,000 veterans of our nation's armed forces and about 120,000 active‑duty military personnel, one of the largest active‑duty military populations in our entire country. In appreciation of and gratitude to those North Carolinians, both living and deceased, who have served in our armed forces in service to our country, the General Assembly provides funding for and support of the following initiatives:
(1) Defense and Security Technology Accelerator.
(2) Military Morale, Welfare, and Recreation Fund.
(3) "More at Four" for children of deployed military personnel.
(4) Traumatic Brain Injury (TBI) Services.
(5) Fayetteville Tech 3‑D Technology Project.
(6) National Guard Pension Fund.
(7) National Guard Tuition Assistance Program.
(8) National Guard Armory Rehabilitations.
(9) Master Planning for Future Armory Needs.
(10) Land Buffers and Latrines for Camp Butner.
(11) Property Tax Homestead Exemption for Disabled Veterans.
(12) North Carolina State Veterans Park.
(13) Museum of the Marine.
FEDERAL AND OTHER RECEIPTS FROM PENDING GRANT AWARDS
SECTION 6.9. Notwithstanding G.S. 143C‑6‑4, State agencies may, with approval of the Director of the Budget, spend funds received from grants awarded subsequent to the enactment of this act, provided the applications for the grants were made prior to May 14, 2008. The Office of State Budget and Management shall work with the recipient State agencies to budget grants award according to the annual program needs and within the parameters of the respective granting entities. Depending on the nature of the award, additional State personnel may be employed on a permanent or time‑limited basis. The Office of State Budget and Management shall consult with the Joint Legislative Commission on Governmental Operations prior to expending any funds received from grant awards. Funds received from such grants are hereby appropriated and shall be incorporated into the certified budget of the recipient State agency.
SECTION 6.9A. The General Assembly finds that homeownership is the primary means by which families and individuals of low and moderate incomes build wealth. The General Assembly further finds that homeownership and a healthy housing market are essential to the health and economic vitality of North Carolina. To help stabilize the housing market, the General Assembly provides in excess of fourteen million dollars ($14,000,000) in funding for and support of the following initiatives:
(1) $1,000,000 in nonrecurring funds from the State Banking Commission for counseling services to assist homeowners at risk of foreclosure.
(2) $2,000,000 in recurring funds for the Housing Trust Fund, located in the Housing Finance Agency, to provide affordable housing to low‑income citizens.
(3) $7,000,000 in nonrecurring funds for the Housing Trust Fund, located in the Housing Finance Agency, to provide additional independent‑ and supportive‑living apartments for persons with disabilities.
(4) $1,000,000 in recurring funds to the Department of Health and Human Services for operating cost subsidies for independent‑ and supportive‑living apartments for individuals with disabilities.
(5) $3,000,000 in recurring funds for the Home Protection Program, located in the Housing Finance Agency, to provide counseling services and mortgage assistance to citizens who are at risk of foreclosure due to job loss.
(6) $200,000 in recurring funds to the North Carolina State Bar to provide legal assistance to low‑income consumers in cases involving predatory mortgage lending, mortgage broker and loan services abuses, foreclosure defense, and other legal issues that relate to helping low‑income consumers avoid foreclosure and home loss. Of these funds, $100,000 recurring is provided to the Land Loss Prevention Project and $100,000 recurring is provided to the Financial Protection Law Center.
(7) Amends G.S. 7A‑474.3(b) to allow the use of a portion of the estimated $1,700,000 in increased revenue generated by Section 30.8 (a)(4) of S.L. 2007‑323, to provide access to legal assistance to homeowners in cases involving predatory mortgage lending, mortgage broker and loan services abuses, foreclosure defense, and other legal issues that relate to helping consumers avoid foreclosure and home loss.
IMPROVE DISASTER RECOVERY AND BUSINESS CONTINUITY
SECTION 6.10.(a) The State Chief Information Officer (CIO) shall utilize the business and disaster recovery plans submitted under G.S. 147‑33.89 and any other information at the CIO's disposal to determine whether State agencies have made adequate preparations for backing up critical applications.
SECTION 6.10.(b) In cases where backup is not sufficient to minimize any disruptions in critical State services caused by natural or man‑made disasters, the State CIO, in conjunction with the agencies and the Office of State Budget and Management, shall develop plans to utilize the Western Data Center for providing backup.
SECTION 6.10.(c) By December 1, 2008, the State CIO shall report to the Joint Legislative Oversight Committee on Information Technology on the number of critical State applications without adequate backup, the State agencies utilizing the applications, and the plans for providing adequate backup.
SECTION 6.10.(d) This section does not apply to the General Assembly, to the Judicial Department, or to The University of North Carolina and its constituent institutions.
MULTIYEAR CONTRACTS FOR INFORMATION TECHNOLOGY
SECTION 6.11.(a) Notwithstanding the cash management provisions of G.S. 147‑86.11, the Office of Information Technology Services (ITS) may procure information technology goods and services for periods not exceeding three years where the terms require payment of all or a portion of the purchase price at the beginning of the agreement. All of the following conditions must be met before payment for these agreements may be disbursed:
(1) Any advance payment complies with the ITS budget.
(2) The State Controller receives conclusive evidence that the proposed agreement would be more cost‑effective than a multiyear agreement that complies with G.S. 147‑86.11.
(3) The procurement complies in all other respects with applicable statutes and rules.
(4) The proposed agreement contains contract terms that protect the financial interests of the State against contractor nonperformance or insolvency through the creation of escrow accounts for funds, source codes, or both, or by other reasonable means that have legally binding effect.
SECTION 6.11.(b) The Office of State Budget and Management (OSBM) shall ensure that the savings from any authorized agreement will be included in the ITS calculation of rates before OSBM annually approves the proposed rates.
SECTION 6.11.(c) The Office of Information Technology Services shall report to the Office of State Budget and Management on any State agency budget impacts resulting from the multiyear contracts.
SECTION 6.11.(d) By January 1, 2009, then quarterly thereafter, the Office of Information Technology Services shall submit a written report of any authorizations granted under this section to the Joint Legislative Oversight Committee on Information Technology and to the Fiscal Research Division.
DOCUMENT MANAGEMENT/DIGITAL SIGNATURE PILOT
SECTION 6.12.(a) Funds. – Of the funds appropriated to the Office of Information Technology Services (ITS) for the 2008‑2009 fiscal year, the sum of two hundred thousand dollars ($200,000) shall be used to pilot a statewide electronic document management system that will include a digital signature capability. ITS shall identify a State agency for the pilot, which shall develop the following program requirements:
(1) Creation of a uniform and consistent set of policies and procedures for managing and preserving electronic records through their life cycle in an efficient, effective, and economical manner.
(2) Development, establishment, and promotion of statewide electronic records management training and certification programs.
(3) Promotion of the use of public records in digital format.
(4) Development of statewide procurement standards for the electronic records infrastructure.
(5) Provision of guidance and assistance to all customers on issues relating to public records in digital formats including, but not limited to, e‑mail, e‑commerce, electronic signature encryption, filings, public Web pages, metadata, and system documentation.
SECTION 6.12.(b) By April 1, 2009, the Office of Information Technology Services shall submit a written report to the Joint Legislative Oversight Committee on Information Technology and to the Fiscal Research Division on the status and effectiveness of the electronic document management pilot.
STATE GEOGRAPHIC INFORMATION/CONSOLIDATION IMPLEMENTATION
SECTION 6.13. The State Chief Information Officer (SCIO), the Office of State Budget and Management (OSBM), and the Geographic Information Coordinating Council (GICC) shall develop a detailed plan to implement the recommendations contained in the Geographic Information System Study mandated by Section 6.13 of S.L. 2007‑323. The implementation plan shall include, at a minimum, details relating to all of the following:
(1) The current and future costs of unconsolidated State agency GIS efforts and an estimate of savings to be realized by the consolidation of GIS efforts.
(2) A cost estimate for implementing the consolidation plan, with specific costs associated with each study report recommendation and the amount of any additional funding requirements to accomplish the consolidation and transfer.
(3) An accounting of funds, furniture, equipment, and other operational resources to be transferred from the Department of Environment and Natural Resources (DENR) to the SCIO to support the Center for Geographic Information and Analysis (CGIA) and the GICC.
(4) A description of personnel positions to be (i) transferred from DENR to SCIO and the sources and amount of funding associated with each position and (ii) eliminated due to the consolidation, if any.
(5) Any new positions required and the costs associated with each new position.
(6) Projects that can be consolidated as part of the plan implementation and the State agencies or contractors, or both, responsible for each of those projects.
(7) A time line for implementation, including specific benchmarks.
By December 1, 2008, this detailed implementation plan shall be submitted to the Chairs of the House and Senate Appropriations Committees and to the Fiscal Research Division of the Legislative Services Office.
SECTION 6.14.(a) The State Chief Information Officer shall develop a detailed plan providing for the transition of all State agencies, departments, and institutions to a single statewide electronic mail system by January 1, 2010. This plan shall be developed in consultation with each organization not currently using the Office of Information Technology Services electronic mail system and shall specifically address any issues identified by these organizations.
SECTION 6.14.(b) The plan shall be presented to the Joint Legislative Oversight Committee on Information Technology by November 1, 2008, and may be implemented after consultation with the Committee.
SECTION 6.14.(c) In preparing the Governor's proposed budget for 2009‑2011, the Office of State Budget and Management may utilize the plan required under subsection (b) of this section.
SECTION 6.14.(d) This section shall not apply to the General Assembly, the Judicial Department, or The University of North Carolina and its constituent institutions. These agencies may utilize the electronic mail service operated by the Office in accordance with the statutes, policies, and rules of the Office.
CRIMINAL JUSTICE DATA INTEGRATION PILOT PROGRAM
SECTION 6.15.(a) The General Assembly finds that the State's Uniform Crime Reporting technology is based on procedures developed in the 1930s and a design plan developed in the late 1980s. Based on recent unfortunate events, it is abundantly clear that the State must establish a framework for sharing critical information, and the framework must be implemented as soon as possible. With improved access to timely, complete, and accurate information, the members of the General Assembly, leadership in State and local law enforcement agencies, law enforcement officers, and everyone working in the criminal justice system can enhance their ability to make decisions on behalf of the people of the State, with fewer decisions based on instinct or guesswork.
The General Assembly further finds that the April 2008 Beacon Report on a Strategic Plan for Data Integration recommends the development and implementation of a Crime Reporting Re‑Design Project, a statewide crime analysis system designed to save time, save money, and save lives.
SECTION 6.15.(b) The Office of the State Controller, in cooperation with the State Chief Information Officer, and under the governance of the BEACON Project Steering Committee, shall by May 1, 2009, develop and implement a Criminal Justice Data Integration Pilot Program in Wake County in cooperation and communication with the advisory committee established pursuant to subsection (c) of this section and the leadership of State and local agencies. This pilot program shall integrate and provide up‑to‑date criminal information in a centralized location via a secure connection for use by State and local government. The pilot program vendor shall be selected by October 1, 2008.
While it is the intent that this initiative provide a broad new access to information across State government, the plan shall comply with all necessary security measures and restrictions to ensure that access to any specific information held confidential under federal and State law shall be limited to authorized persons.
SECTION 6.15.(c) The Advisory Committee to the Criminal Justice Data Integration Pilot program is hereby established. The Advisory Committee shall consist of the following members:
(1) The District Attorney for Prosecutorial District 10, who shall serve as chair.
(2) The senior resident superior court judge for Superior Court Districts 10A through 10D.
(3) A Wake County magistrate designated by the senior resident superior court judge.
(4) The Clerk of Superior Court of Wake County.
(5) The sheriff of Wake County.
(6) The judicial district manager for District 10 of the Division of Community Corrections.
(7) The chief court counselor for District Court District 10.
(8) The president of Duke University and the chancellor of The University of North Carolina, or their designees.
SECTION 6.15.(d) The Advisory Committee, the Department of Justice, the Administrative Office of the Courts, the Department of Juvenile Justice and Delinquency Prevention, the Department of Correction, the Department of Crime Control and Public Safety, the Department of Transportation, and local law enforcement agencies shall fully cooperate with the Office of the State Controller and the State Chief Information Officer, under the guidance of the BEACON Steering Committee, to identify the informational needs, develop a plan of action, provide access to data, and implement secure integrated applications for information sharing of criminal justice and corrections data.
SECTION 6.15.(e) Of the funds appropriated in this act, the sum of five million dollars ($5,000,000) may be used to support the Criminal Justice Data Integration Pilot Program. Other funds available to BEACON may also be used for this purpose.
The Office of the State Controller, with the support of the Office of State Budget and Management, shall identify and make all efforts to secure any matching funds or other resources to assist in funding this initiative.
SECTION 6.15.(f) The Office of the State Controller, with the support of the Advisory Committee and the State Chief Information Officer, shall provide a written report of the plan's implementation progress to the House of Representatives and Senate Appropriations Committees, to the Joint Legislative Oversight Committee on Information Technology, and to the Fiscal Research Division on a quarterly basis beginning October 1, 2008.
SECTION 6.16.(a) The Office of the State Controller, in cooperation with the State Chief Information Officer, shall begin implementation of the Beacon Strategic Plan for Data Integration, issued in April 2008. This plan shall be implemented under the governance of the BEACON Project Steering Committee and in conjunction with leadership in appropriate State agencies and with the support and cooperation of the Office of State Budget and Management.
While it is the intent that this initiative provide broad access to information across State government, the plan shall comply with all necessary security measures and restrictions to ensure that access to any specific information held confidential under federal and State law shall be limited to appropriate and authorized persons.
SECTION 6.16.(b) The State Controller shall serve as the Chairman of the BEACON Project Steering Committee. The other members of the committee shall be the State Chief Information Officer, the State Treasurer, the Attorney General, the Secretary of Correction, the Administrative Officer of the Courts, the State Budget Officer, and the Chief Financial Officer of the Department of Transportation.
SECTION 6.16.(c) Of the funds appropriated from the General Fund to the North Carolina Information Technology Fund, the sum of five million dollars ($5,000,000) for the 2008‑2009 fiscal year shall be used for BEACON data integration as provided by subsection (a) of this section. Funds to support this activity shall also be the unexpended balance from the funds appropriated for BEACON/Data Integration Funds in Section 5.3(b) of S.L. 2007‑323. The Office of the State Controller, with the support of the Office of State Budget and Management, shall identify and make all efforts to secure any matching funds or other resources to assist in funding this initiative.
SECTION 6.16.(d) Funds authorized in this section may be used for the following purposes:
(1) To support the cost of a project manager to conduct the activities outlined herein reportable to the Office of the State Controller.
(2) To support two business analysts to provide support to the program manager and agencies in identifying requirements under this program.
(3) To establish a Business Intelligence Competency Center (BICC), a collaborative organization comprised of both technical and business stakeholders, to support and manage the business need for analytics through the development of standards and best practices.
(4) To engage a vendor to implement the Strategic Implementation Plan as required herein.
(5) To conduct integration activities as approved by the BEACON Project Steering Committee. The State Chief Information Officer shall use current enterprise licensing to implement these integration activities.
SECTION 6.16.(e) Prior to the convening of the 2009 General Assembly, the Office of the State Controller shall provide semiannual reports to the Joint Legislative Oversight Committee for Information Technology. Written reports shall be submitted not later than October 1, 2008, and April 1, 2009, with presentations of the reports at the first session of the Joint Legislative Oversight Committee on Information Technology following the written report submission date. The Joint Legislative Oversight Committee on Information Technology shall then report to the Joint Legislative Commission on Governmental Operations.
SECTION 6.16.(f) Neither the implementation of the Strategic Information Plan nor the provisions of this section shall place any new or additional requirements upon The University of North Carolina or the North Carolina Community College System.
PART VII. PUBLIC SCHOOLS
SECTION 7.1. The State Board of Education shall allocate funds for children with disabilities on the basis of three thousand three hundred eighty‑six dollars and eighty‑four cents ($3,386.84) per child for a maximum of 172,079 children for the 2008‑2009 school year. Each local school administrative unit shall receive funds for the lesser of (i) all children who are identified as children with disabilities or (ii) twelve and five‑tenths percent (12.5%) of the 2008‑2009 allocated average daily membership in the local school administrative unit.
The dollar amounts allocated under this section for children with disabilities shall also adjust in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve children with disabilities.
FUNDS FOR ACADEMICALLY GIFTED CHILDREN
SECTION 7.2. The State Board of Education shall allocate funds for academically or intellectually gifted children on the basis of one thousand one hundred thirty‑seven dollars and nineteen cents ($1,137.19) per child. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2008‑2009 allocated average daily membership, regardless of the number of children identified as academically or intellectually gifted in the unit. The State Board shall allocate funds for no more than 59,063 children for the 2008‑2009 school year.
The dollar amounts allocated under this section for academically or intellectually gifted children shall also adjust in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve academically or intellectually gifted children.
FUNDS TO IMPLEMENT THE ABCS OF PUBLIC EDUCATION
(1) Incentive awards in schools that achieve higher than expected improvements may be:
a. Up to one thousand five hundred dollars ($1,500) for each teacher and for certified personnel; and
b. Up to five hundred dollars ($500.00) for each teacher assistant.
(2) Incentive awards in schools that meet the expected improvements may be:
a. Up to seven hundred fifty dollars ($750.00) for each teacher and for certified personnel; and
b. Up to three hundred seventy‑five dollars ($375.00) for each t