GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
S 3
SENATE BILL 13
Appropriations/Base
Budget Committee Substitute Adopted 2/2/11
Third Edition Engrossed 2/7/11
Short Title: Balanced Budget Act of 2011. |
(Public) |
|
Sponsors: |
|
|
Referred to: |
|
|
February 1, 2011
A BILL TO BE ENTITLED
AN ACT to enact the balanced budget act of 2011.
The General Assembly of North Carolina enacts:
Title of Act
SECTION 1. This act shall be known as the "Balanced Budget Act of 2011."
authority for the governor to reduce expenditures
SECTION 2. Notwithstanding the State Budget Act or any other provision of law, the Director of the Budget is authorized to take all actions necessary to reduce General Fund expenditures for the remainder of fiscal year 2010-2011. This grant of authority includes all powers to balance the budget granted the Governor under Article III, Section 5 of the Constitution. For the remainder of the 2010-2011 fiscal year, the Director of the Budget shall exercise these powers with a goal of reducing recurring expenditures by at least four hundred million dollars ($400,000,000).
Changes to the 2010-2011 availability statement
SECTION 3. Section 2.2(a) of S.L. 2010-31 reads as rewritten:
"SECTION 2.2.(a) Section 2.2(a) of S.L. 2009-451 is repealed. The General Fund availability used in adjusting the 2010-2011 budget is shown below:
FY 2010-2011
Unappropriated Balance Remaining from Previous Year 3,702,182
Adjustment from Estimated to Actual FY 2009-2010 Beginning Unreserved
Fund Balance 270,080
Beginning Unreserved Fund Balance 3,972,262
Revenues Based on Existing Tax Structure 18,199,339,016
Nontax Revenues
Investment Income 57,500,000
Judicial Fees 239,100,000
Disproportionate Share 100,000,000
Insurance 67,000,000
Other Nontax Revenues 182,700,000
Highway Trust Fund/Use Tax Reimbursement Transfer 72,800,000
Highway Fund Transfer 17,600,000
Subtotal Nontax Revenues 736,700,000
Total General Fund Availability 18,940,011,278
Adjustments to Availability: Senate Bill 897Availability
Internal Revenue Code Conformity (7,700,000)
Unemployment Insurance Refundable Tax Credit (34,100,000)
Increase Sales Tax Prepayment Threshold (7,000,000)
Relieve Annual Report Compliance Burden on Small Businesses (400,000)
Fair Tax Penalties 0
Extend Sunsets on Various Tax Incentives (3,500,000)
Improve Tax and Debt Collection Process 3,000,000
Modernize Sales Tax on Accommodations 1,700,000
Modernize Admissions Tax and Restore Amenities Exclusion (700,000)
Reserve for Pending Finance Legislation (9,800,000)
Reduce Franchise Tax Burden on Construction Companies (1,500,000)
Department of Revenue Settlement Initiative 110,000,000
Disproportionate Share 35,000,000
Loss of Estate Tax Revenues for FY 2010-2011 (85,000,000)
Increase Justice and Public Safety Fees 13,930,670
Transfer from the Health and
Wellness Trust Fund
5,397,000
17,045,800
Transfer Aviation from Department of Commerce to Department
of Transportation (500,000)
Transfer from Wildlife
Resources
Commission
3,000,000
8,000,000
Divert Funds from Scrap Tire Disposal Account 2,500,000
Divert Funds from White Goods Fund 1,200,000
Transfer from Mercury Pollution Prevention Fund 2,250,000
Transfer from Bladen Lakes Special Fund 150,000
Transfer from DACS - N.C. State Fair 1,000,000
Transfer from ECU Magnetic Resonance Imaging Lease and Equipment
Fund 1,000,000
Adjust Transfer from Insurance Regulatory Fund (2,176,454)
Transfer from Motorfleet Internal Services Fund 14,000,000
Transfer from Golden LEAF Funds 67,563,760
Transfer from Tobacco Trust Fund 2,800,000
Various Budget Fund Transfers to General Fund
Budget Fund
Code Code Description
24667 Information Technology Fund 1,000,000
74660 Information Technology Internal Service Fund 7,586,800
24669 ITS Wireless Fund 5,000,000
74500 7100 Correction Enterprise Fund 3,000,000
24609 2560 One North Carolina Fund 5,208,333
Department of Agriculture & Consumer Services (various special funds) 1,500,000
63702 6208 Farmland Preservation Trust Fund 1,800,000
54600 5881 Alcoholic Beverage Control Commission Fund 950,000
24609 2567 Industrial Development Utility 2,500,000
19944 Job Development Investment Grants (JDIG) 3,000,000
24300 2911 SWC CREP/Expansion 500,000
24300 2865 Aquariums Special Fund 1,500,000
24309 2235 Parks and Recreation Trust Fund 8,500,000
24611 2200 Industrial Commission - IT Projects Fund 1,000,000
24100 2514 E-Commerce Reserve 4,630,891
Subtotal Adjustments to Availability: Senate Bill 897Availability
41,751,216176,439,800
Revised General Fund
Availability
18,981,762,49419,116,451,078
Less General Fund
Appropriations
18,958,293,33718,958,994,212
Balance
Remaining
23,469,157157,456,866"
REVERSIONS TO THE GENERAL FUND
SECTION 3.1.(a) Effective June 30, 2011, the following amounts are reverted to the General Fund:
Code Code Description
11000 1900 General Assembly Reserve 1,901,522
13085 1900 Department of Insurance Reserve 1,150,693
SECTION 3.1.(b) G.S. 143C-1-2(b) does not apply to the reversion from the General Assembly Reserve in subsection (a) of this section.
TRANSFER GOLDEN LEAF FUNDS
SECTION 4.(a) Pursuant to Section 2(b) of S.L. 1999-2, the fifty percent (50%) of the 2011 annual installment payment to the North Carolina State Specific Account that would have been transferred to The Golden L.E.A.F. (Long-Term Economic Advancement Foundation), Inc., is transferred to a General Fund account within the Settlement Reserve Fund to be used to support General Fund appropriations for the 2010-2011 fiscal year. The Attorney General shall take all necessary actions to notify the court in the action entitled State of North Carolina v. Philip Morris Incorporated, et al., 98 CVS 14377, in the General Court of Justice, Superior Court Division, Wake County, North Carolina, and the administrators of the State Specific Account established under the Master Settlement Agreement of this action by the General Assembly redirecting the payment set forth in this section.
SECTION 4.(b) A General Fund Account is established in the Settlement Reserve Fund. In 2011, the portion of the Master Settlement Agreement payment identified in Section 6(1) of S.L. 1999-2 shall be credited to the General Fund Account. The State Controller shall transfer all funds in the General Fund Account to the General Fund.
SECTION 4.(c) Funds transferred from the General Fund Account to the General Fund shall be deposited in Nontax Budget Code 19978 (Intrastate Transfers) to support General Fund appropriations for the 2010-2011 fiscal year.
TRANSFER health and wellness trust funds
SECTION 5. Section 2.2(i) of S.L. 2009-451, as rewritten by Section 2.2(f) of S.L. 2010-31, reads as rewritten:
"SECTION 2.2.(i) Notwithstanding
G.S. 143C-9-3, of the funds credited to the Health Trust Account, the sum
of ten million three hundred ninety-seven thousand dollars ($10,397,000)twenty-two
million forty-five thousand eight hundred dollars ($22,045,800) that would
otherwise be deposited in the Fund Reserve shall be transferred from the
Department of State Treasurer, Budget Code 23460 (Health and Wellness Trust
Fund), to the State Controller to be deposited in Nontax Budget Code 19978 (Intrastate
Transfers) to support General Fund appropriations for the 2009-2010 and 2010-2011
fiscal years.year. These funds shall be transferred on or after
April 30, 2010."
TRANSFER tobacco trust funds
SECTION 6. Section 2.2(h) of S.L. 2009-451, as rewritten by Section 2.2(i) of S.L. 2010-31, reads as rewritten:
"SECTION 2.2.(h) Notwithstanding
G.S. 143C-9-3, of the funds credited to the Tobacco Trust, the sum of five
million dollars ($5,000,000)seven million eight hundred thousand dollars
($7,800,000) 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 (Intrastate Transfers)
to support General Fund appropriations for the 2010-2011 fiscal year. These
funds shall be transferred on or after April 30, 2011."
transfer from the industrial commission - IT fund
SECTION 6.1. Section 14.15 of S.L. 2009-451 reads as rewritten:
"SECTION 14.15. The For the
2010-2011 fiscal year, the North Carolina Industrial Commission may retain the
additional revenue generated as a result of an increase in the fee charged to
parties for the filing of compromised settlements.all overrealized
receipts. These funds shall be used for the purpose of replacing existing
computer hardware and software used for the operations of the Commission. These
funds may also be used to prepare any assessment of hardware and software needs
prior to purchase and to develop and administer the needed databases and new Electronic
Case Management System, including the establishment of two time-limited
positions for application development and support and mainframe migration. The
Commission may not retain any fees under this section unless they are in excess
of the former two-hundred-dollar ($200.00) fee charged by the Commission for
filing a compromised settlement."
SECTION 7. This act is effective when it becomes law and applies to fiscal year 2010-2011 only.