GENERAL ASSEMBLY OF NORTH CAROLINA …

1 GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 S D SENATE BILL 99 Commerce and Insurance Committee Substitute Adopted 4/26/17 Third Edition Engrossed 4/26/17 House Committee Substitute Favorable 6/20/17 Proposed Conference Committee Substitute S99-PCCS55094-MMxr-2 Short Title: Appropriations Act of 2018. (Public) Sponsors: Referred to: February 16, 2017 *S99-PCCS55094-MMxr-2* A BILL TO BE ENTITLED 1 AN ACT TO MODIFY THE CURRENT OPERATIONS APPROPRIATIONS ACT OF 2017 2 AND TO MAKE OTHER CHANGES IN THE BUDGET OPERATIONS OF THE STATE. 3 The GENERAL ASSEMBLY of NORTH CAROLINA enacts: 4 5 PART I. INTRODUCTION AND TITLE OF ACT 6 7 TITLE OF ACT 8 SECTION This act shall be known as the "Current Operations Appropriations 9 Act of 2018." 10 11 INTRODUCTION 12 SECTION The appropriations made in this act are for maximum amounts 13 necessary to provide the services and accomplish the purposes described in the budget in 14 accordance with the State Budget Act.

2 Savings shall be effected where the total amounts 15 appropriated are not required to perform these services and accomplish these purposes, and the 16 savings shall revert to the appropriate fund at the end of each fiscal year, except as otherwise 17 provided by law. 18 19 PART II. CURRENT OPERATIONS AND EXPANSION GENERAL FUND 20 21 CURRENT OPERATIONS AND EXPANSION/ GENERAL FUND 22 SECTION Appropriations from the GENERAL Fund of the State for the 23 maintenance of the State departments, institutions, and agencies, and for other purposes as 24 enumerated, are adjusted for the fiscal year ending June 30, 2019, according to the schedule that 25 follows. Amounts set out in parentheses are reductions from GENERAL Fund appropriations for the 26 2018-2019 fiscal year: 27 28 Current Operations GENERAL Fund FY 2018-2019 29 30 EDUCATION 31 32 Community Colleges System Office $ 43,724,296 33 GENERAL ASSEMBLY Of NORTH CAROLINA Session 2017 Page 2 Senate Bill 99 S99-PCCS55094-MMxr-2 1 Department of Public Instruction 59,847,276 2 3 Appalachian State University 0 4 East CAROLINA University 0 5 Academic Affairs (1,100,000) 6 Health Affairs 0 7 Elizabeth City State University 0 8 Fayetteville State University 0 9 NC A&T State University (150,000) 10 NC Central University 0 11 NC State University 12 Academic Affairs 1,866,000 13 Agricultural Extension 0 14 Agricultural Research 0 15 UNC-Asheville 0 16 UNC-Chapel Hill 0 17 Academic Affairs 6,053,000 18 Health Affairs 5,302,500 19 AHEC 4,800,000 20 UNC-Charlotte (800,000) 21 UNC-Greensboro (225,000)

3 22 UNC-Pembroke 0 23 UNC-School of the Arts 0 24 UNC-Wilmington 0 25 Western CAROLINA University 0 26 Winston-Salem State University 0 27 GENERAL Administration 0 28 University Institutional Programs 39,065,696 29 Related Educational Programs 970,000 30 NC School of Science & Math 508,836 31 Aid to Private Institutions 3,550,002 32 33 Total University of NORTH CAROLINA Board of Governors 59,841,034 34 35 HEALTH AND HUMAN SERVICES 36 37 Department of Health and Human Services 38 Central Management and Support 4,141,207 39 Division of Aging & Adult Services 1,187,143 40 Division of Services for the Blind/Deaf/Hard of Hearing 81,405 41 Division of Child Development & Early Education (49,699,217) 42 Division of Health Service Regulation 101,501 43 Division of Medical Assistance 729,439 44 Division of Mental Health, Developmental Disabilities, 45 & Substance Abuse Services 3,226,446 46 NC Health Choice 4,424 47 Division of Health Benefits 84,648 48 Division of Public Health 1,715,544 49 Division of Social Services 917,664 50 Division of Vocational Rehabilitation 435,203 51 GENERAL ASSEMBLY Of NORTH CAROLINA Session 2017 S99-PCCS55094-MMxr-2 Senate Bill 99 Page 3 Total Health and Human Services (37,074,593) 1 2 AGRICULTURAL, NATURAL, AND ECONOMIC RESOURCES 3 4 Department of Agriculture and Consumer Services 19,712,218 5 6 Department of Commerce 7 Commerce (6,707,869)

4 8 Commerce State-Aid 3,535,000 9 10 Wildlife Resources Commission 424,872 11 12 Department of Environmental Quality 18,634,776 13 14 Department of Labor 354,450 15 16 Department of Natural and Cultural Resources 16,937,232 17 Department of Natural and Cultural 18 Resources Roanoke Island 0 19 20 JUSTICE AND PUBLIC SAFETY 21 22 Department of Public Safety 50,529,172 23 24 Judicial Department 12,184,971 25 26 Judicial Department Indigent Defense 1,213,669 27 28 Department of Justice 1,138,904 29 30 GENERAL GOVERNMENT 31 32 Department of Administration 2,562,510 33 34 Office of Administrative Hearings 107,165 35 36 Office of State Auditor 283,584 37 38 Office of State Controller 342,077 39 40 Bipartisan State Board of Elections and Ethics 41 Enforcement 105,919 42 43 GENERAL ASSEMBLY 1,335,390 44 45 Office of the Governor 46 Office of the Governor 92,105 47 Office of the Governor special Projects 0 48 49 Office of State Budget and Management 50 Office of State Budget and Management 137,501 51 GENERAL ASSEMBLY Of NORTH CAROLINA Session 2017 Page 4 Senate Bill 99 S99-PCCS55094-MMxr-2 OSBM Reserve for special Appropriations 9,615,307 1 2 Housing Finance Agency 0 3 4 Department of Insurance 932,602 5 6 Office of Lieutenant Governor 17,181 7 8 Department of Military and Veterans Affairs 234,473 9 10 Department of Revenue 1,449,705 11 12 Department of Secretary of State 249,043 13 14 Department of State Treasurer 15 State Treasurer 25,246 16 State Treasurer Retirement for Fire 17 and Rescue Squad Workers 2,398,780 18 19 DEPARTMENT OF INFORMATION TECHNOLOGY 10,246,786 20 21 RESERVES.

5 ADJUSTMENTS, AND DEBT SERVICE 22 23 Public Schools Average Daily Membership Reserve (48,410,289) 24 NC Promise Tuition Plan (11,000,000) 25 Pending Legislation Reserve (500,000) 26 Enterprise Resource Planning 27,000,000 27 Compensation Increase Reserve 15,300,000 28 29 Debt Service 30 GENERAL Debt Service (54,567,293) 31 Federal Reimbursement 0 32 33 TOTAL CURRENT OPERATIONS 34 GENERAL FUND $ 202,253,200 35 36 GENERAL FUND AVAILABILITY STATEMENT 37 SECTION (a) The GENERAL Fund availability statement set out in Section (a) 38 of 2017-57 applies to the 2017-2018 fiscal year only. The GENERAL Fund availability used in 39 adjusting the 2018-2019 budget is shown below: 40 41 FY 2018-2019 42 Unappropriated Balance $ 499,475,581 43 Adjustment for 2017-204 (8,500,000) 44 Revised Unappropriated Balance 490,975,581 45 46 Projected Over Collections FY 2017-18 356,700,000 47 Projected Reversions FY 2017-18 275,000,000 48 Earmarkings of Year End Fund Balance.

6 49 Reserve for Capital Projects (155,201,070) 50 Repairs and Renovations (64,798,930) 51 GENERAL ASSEMBLY Of NORTH CAROLINA Session 2017 S99-PCCS55094-MMxr-2 Senate Bill 99 Page 5 1 Beginning Unreserved Fund Balance 902,675,581 2 3 Revenues Based on Existing Tax Structure 22,960,100,000 4 5 Non-tax Revenues 6 Investment Income 99,400,000 7 Judicial Fees 232,700,000 8 Disproportionate Share 163,300,000 9 Insurance 82,700,000 10 Master Settlement Agreement (MSA) 139,400,000 11 Other Non-Tax Revenues 193,700,000 12 Subtotal Non-tax Revenues 911,200,000 13 14 Total GENERAL Fund Availability 24,773,975,581 15 16 Adjustments to Availability: 2018 Session 17 Internal Revenue Code Conformity 59,000,000 18 19 Other Adjustments: 2018 Session 20 Transfer to Savings Reserve (221,542,959) 21 Transfer to Medicaid Transformation Reserve (135,000,000) 22 Transfer from Department of Insurance 932,602 23 Transfer from Department of the State Treasurer 25,246 24 Subtotal Other Adjustments: 2018 Session (296,585,111) 25 26 Revised GENERAL Fund Availability $ 24,477,390,470 27 28 Less GENERAL Fund Net Appropriations (23,916,034,376) 29 30 Unappropriated Balance Remaining $ 561,356,094 31 32 SECTION (b) Notwithstanding the provisions of 143C-4-3(a), the State 33 Controller shall transfer a total of sixty-four million seven hundred ninety-eight thousand nine 34 hundred thirty dollars ($64,798,930) from the unreserved fund balance to the Repairs and 35 Renovations Reserve on June 30, 2018.

7 Funds transferred under this section to the Repairs and 36 Renovations Reserve are appropriated for the 2018-2019 fiscal year and shall be used in 37 accordance with Section of this act. 38 SECTION (c) Pursuant to 143C-4-2, the State Controller shall transfer a 39 total of two hundred twenty-one million five hundred forty-two thousand nine hundred fifty-nine 40 dollars ($221,542,959) to the Savings Reserve in the 2018-2019 fiscal year. This transfer is not 41 an "appropriation made by law," as that phrase is used in Section 7(1) of Article V of the NORTH 42 CAROLINA Constitution. 43 SECTION (d) Notwithstanding any provision of 143C-4-2 to the contrary, 44 the State Controller shall transfer the sum of fifty-nine million seven hundred fifty-five thousand 45 two hundred thirty dollars ($59,755,230) in nonrecurring funds for the 2018-2019 fiscal year 46 from the Savings Reserve to the State Emergency Response/Disaster Relief Reserve in the 47 GENERAL Fund.

8 48 SECTION (e) The State Controller shall reserve to the Medicaid Transformation 49 Reserve from funds available in the GENERAL Fund the sum of one hundred thirty-five million 50 dollars ($135,000,000) in nonrecurring funds for the 2018-2019 fiscal year. Funds reserved in 51 GENERAL ASSEMBLY Of NORTH CAROLINA Session 2017 Page 6 Senate Bill 99 S99-PCCS55094-MMxr-2 the Medicaid Transformation Reserve do not constitute an "appropriation made by law," as that 1 phrase is used in Section 7(1) of Article V of the NORTH CAROLINA Constitution. 2 SECTION (f) The State Controller shall transfer the sum of one hundred 3 fifty-five million two hundred one thousand seventy dollars ($155,201,070) from the unreserved 4 fund balance in the GENERAL Fund to the Project Reserve Account, established pursuant to 5 143C-8-10, on June 30, 2018.

9 6 SECTION (g) Subsections (b), (f), and (g) of this section become effective June 7 30, 2018. 8 9 PART III. CURRENT OPERATIONS/HIGHWAY FUND 10 11 CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND 12 SECTION Appropriations from the State Highway Fund for the maintenance 13 and operation of the Department of Transportation and for other purposes as enumerated are 14 made for the fiscal year ending June 30, 2019, according to the following schedule. Amounts set 15 out in parentheses are reductions from Highway Fund Appropriations for the 2018-2019 fiscal 16 year. 17 18 Current Operations Highway Fund FY 2018-2019 19 20 Department of Transportation 21 Administration $ 2,000,000 22 23 Division of Highways 24 Administration 0 25 Construction (8,556,922) 26 Maintenance (25,799,234) 27 Planning and Research 0 28 OSHA Program 0 29 30 State Aid to Municipalities 0 31 32 Intermodal Divisions 33 Ferry 0 34 Public Transportation (8,556,922) 35 Aviation 1,600,000 36 Rail (300,000)

10 37 Bicycle and Pedestrian 0 38 39 Governor's Highway Safety 0 40 41 Division of Motor Vehicles 80,000 42 43 Other State Agencies, Reserves, Transfers 12,535,390 44 45 Capital Improvements 0 46 47 Total Highway Fund Appropriations $ 2,224,500,000 48 49 HIGHWAY FUND AVAILABILITY STATEMENT 50 GENERAL ASSEMBLY Of NORTH CAROLINA Session 2017 S99-PCCS55094-MMxr-2 Senate Bill 99 Page 7 SECTION Section of 2017-57 is repealed. The Highway Fund 1 availability used in adjusting the 2018-2019 fiscal year budget is shown below: 2 3 Highway Fund Availability Statement FY 2018-2019 4 5 Unreserved Fund Balance $ 0 6 Estimated Revenue $ 2,224,500,000 7 Adjustment to Revenue Availability: 8 9 Total Highway Fund Availability $ 2,224,500,000 10 11 Unappropriated Balance $ 0 12 13 PART IV. HIGHWAY TRUST FUND APPROPRIATIONS 14 15 HIGHWAY TRUST FUND APPROPRIATIONS 16 SECTION Appropriations from the State Highway Trust Fund for the 17 maintenance and operation of the Department of Transportation and for other purposes as 18 enumerated are made for the fiscal year ending June 30, 2019, according to the following 19 schedule.