GENERAL ASSEMBLY OF NORTH CAROLINA …

1 GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 SESSION LAW 2017 -57 SENATE BILL 257 *S257-v-9* 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. TITLE OF ACT AND INTRODUCTION TITLE OF ACT SECTION This act shall be known as the "Current Operations Appropriations Act of 2017 ." INTRODUCTION SECTION 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 State 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.

2 PART II. CURRENT OPERATIONS AND EXPANSION GENERAL FUND CURRENT OPERATIONS AND EXPANSION/ GENERAL FUND SECTION 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 fiscal biennium ending June 30, 2019, according to the following schedule: Current Operations GENERAL Fund FY 2017 -2018 FY 2018-2019 EDUCATION Community Colleges System Office $ 1,121,815,001 $ 1,141,757,845 Department of Public Instruction 9,046,403,622 9,425,109,426 Appalachian State University 134,672,993 134,672,993 East CAROLINA University Academic Affairs 214,598,809 214,598,809 Health Affairs 74,373,798 75,014,745 Elizabeth City State University 31,964,712 31,154,712 Fayetteville State University 52,116,162 52,116,162 Page 2 Session Law 2017 -57 Senate Bill 257 NC A&T State University 92,703,482 92,703,482 NC Central University 83,243,559 83,243,559 NC State University Academic Affairs 410,148,050 407,648,050 Agricultural Extension 39,095,231 39,195,231 Agricultural Research 52,636.

3 905 52,636,905 UNC-Asheville 38,750,625 38,750,625 UNC-Chapel Hill Academic Affairs 252,574,119 251,809,119 Health Affairs 195,665,032 195,305,973 AHEC 48,783,693 48,783,693 UNC-Charlotte 226,376,692 226,376,692 UNC-Greensboro 150,156,774 150,156,774 UNC-Pembroke 53,711,549 53,715,428 UNC-School of the Arts 30,424,499 30,424,499 UNC-Wilmington 120,327,946 120,327,946 Western CAROLINA University 89,729,461 89,730,641 Winston-Salem State University 64,717,512 64,717,512 GENERAL Administration 42,172,369 42,172,369 University Institutional Programs 108,655,110 173,791,646 Related Educational Programs 109,968,501 109,968,501 NC School of Science & Math 20,958,012 20,959,212 Aid to Private Institutions 155,249,754 167,799,754 Total University of NORTH CAROLINA Board of Governors 2,893,775,349 2,967,775,032 HEALTH AND HUMAN SERVICES Department of Health and Human Services Central Management and Support 117,155,209 122,769,405 Division of Aging & Adult Services 46,076,033 45,149,105 Division of Blind Services/Deaf/HH 8,446,767 8,507,081 Division of Child Development & Early Education 268,428,501 278,332,315 Division of Health Service Regulation 18,773,807 19,396,718 Division of Medical Assistance 3,690,755,171 3,801,681,212 Division of Mental Health, Developmental Disabilities, & Substance Abuse Services 696,268,319 705,030,589 NC Health Choice 459,248 396,409 Division of Health Benefits 9,735,051 9,779.

4 090 Division of Public Health 157,394,523 154,985,218 Division of Social Services 200,973,125 205,204,844 Division of Vocational Rehabilitation 38,833,788 39,055,491 Total Health and Human Services 5,253,299,542 5,390,287,477 NATURAL AND ECONOMIC RESOURCES Department of Agriculture and Consumer Services 133,669,904 122,853,685 Department of Commerce Commerce 140,649,732 130,158,878 Commerce State-Aid 20,100,810 16,155,810 Senate Bill 257 Session Law 2017 -57 Page 3 Wildlife Resources Commission 11,178,987 10,843,541 Department of Environmental Quality 78,170,327 77,012,714 Department of Labor 17,614,979 17,819,951 Department of Natural and Cultural Resources 185,613,349 174,477,424 Department of Natural and Cultural Resources Roanoke Island 555,571 555,571 JUSTICE AND PUBLIC SAFETY Department of Public Safety 2,002,700,046 2,020,592,037 Judicial Department 530,239,572 539,023,422 Judicial Department Indigent Defense 121,304,090 122,280,359 Department of Justice 47,711,294 46,511,531 GENERAL GOVERNMENT Department of Administration 63,691,021 63,396,752 Office of Administrative Hearings 5,962,480 6,010,687 Office of State Auditor 13,828,208 13,780,531 Office of State Controller 20,873,868 23,243,476 State Board of Elections 6,624,283 6,686,614 GENERAL ASSEMBLY 65,975,613 65,973,007 Office of the Governor 5,374,977 4,976.

5 409 Office of the Governor Special Projects 0 0 Office of State Budget and Management Office of State Budget and Management 8,180,546 8,255,244 OSBM Reserve for Special Appropriations 8,740,000 2,000,000 Housing Finance Agency 14,609,159 30,660,000 Department of Insurance 48,838,212 48,314,700 Office of Lieutenant Governor 793,708 771,497 Department of Military and Veterans Affairs 11,457,358 8,960,743 Page 4 Session Law 2017 -57 Senate Bill 257 Department of Revenue 84,645,611 85,483,970 Department of Secretary of State 13,104,311 13,314,943 Department of State Treasurer State Treasurer 4,813,596 4,832,053 State Treasurer Retirement for Fire and Rescue Squad Workers 27,861,861 28,211,861 DEPARTMENT OF INFORMATION TECHNOLOGY 51,500,581 51,646,845 RESERVES, ADJUSTMENTS, AND DEBT SERVICE Contingency & Emergency Fund 0 0 Classification and Compensation System 3,900,000 7,800,000 Workers' Compensation Settlement Reserve 2,000,000 0 Salary Adjustment Fund 5,000,000 5,000,000 Pay Plan Reserve 9,688,494 0 University System Enrollment Reserve 46,571,112 94,734,518 Public Schools Average Daily Membership Reserve 0 48,410,289 NC Promise Tuition Plan 0 11,000,000 Film and Entertainment Grant Fund 15,000,000 31,000,000 Pending Legislation (Supplemental Disaster Recovery Funds and House Bill 589, Competitive Energy Solutions for )

6 100,150,000 500,000 Enterprise Resource Planning 3,000,000 10,000,000 Debt Service GENERAL Debt Service 727,166,339 770,458,736 Federal Reimbursement 1,616,380 1,616,380 TOTAL CURRENT OPERATIONS GENERAL FUND $ 22,975,769,893 $ 23,650,253,958 GENERAL FUND AVAILABILITY STATEMENT SECTION (a) The GENERAL Fund availability used in developing the 2017 -2019 fiscal biennial budget is shown below: FY 2017 -2018 FY 2018-2019 Unappropriated Balance $ 208,607,416 $ 499,303,328 Disaster Recovery Appropriations ( 2016-124) (200,928,370) 0 Transfer From Savings Reserve 100,928,370 0 Revised Unappropriated Balance 108,607,416 499,303,328 Over Collections FY 2016-17 580,600,000 0 Reversions FY 2016-17 271,000,000 0 Replenish Savings Reserve ( 2016-124) (100,928,370) 0 Earmarkings of Year End Fund Balance.

7 Savings Reserve (263,000,000) 0 Repairs and Renovations (125,000,000) 0 Beginning Unreserved Fund Balance 471,279,046 499,303,328 Senate Bill 257 Session Law 2017 -57 Page 5 Revenues Based on Existing Tax Structure 22,303,700,000 23,299,200,000 Non-tax Revenues Investment Income 60,100,000 60,600,000 Judicial Fees 240,900,000 240,500,000 Disproportionate Share 164,700,000 149,600,000 Insurance 75,500,000 75,500,000 Master Settlement Agreement (MSA) 127,200,000 127,200,000 Other Non-Tax Revenues 180,600,000 182,900,000 Subtotal Non-tax Revenues 849,000,000 836,300,000 Total GENERAL Fund Availability 23,623,979,046 24,634,803,328 Adjustments to Availability: 2017 Session Tax Law Changes (6,900,000) (521,800,000) Transfer of Taxes From Short-Term Lease or Rental of Motor Vehicles to Highway Fund (10,000,000) (10,000,000) Transfer to Savings Reserve ( 2017 -5) 0 (72,090,000) Transfer Additional MSA funds to Golden (7,500,000) (7,500,000) Transfer to Medicaid Transformation Fund (75,000,000) 0 Transfer from Contingency and Emergency Fund 7,000,000 0 Transfer from Department of Insurance 3,655,405 4,026,728 Transfer from the Department of the State Treasurer (5,453,230) (5,434,773) Subtotal Adjustments to Availability.

8 2017 Session (94,197,825) (612,798,045) Revised GENERAL Fund Availability $ 23,529,781,221 $ 24,022,005,283 Less GENERAL Fund Net Appropriations (23,030,477,893) (23,652,171,951) Unappropriated Balance Remaining $ 499,303,328 $ 369,833,332 SECTION (b) Notwithstanding the provisions of 143C-4-3(a), the State Controller shall transfer a total of one hundred twenty-five million dollars ($125,000,000) from the unreserved fund balance to the Repairs and Renovations Reserve on June 30, 2017 . This subsection becomes effective June 30, 2017 . Funds transferred under this section to the Repairs and Renovations Reserve are appropriated for the 2017 -2018 fiscal year and shall be used in accordance with Section of this act.

9 SECTION (c) Notwithstanding 143C-4-2, the State Controller shall transfer a total of three hundred sixty-three million nine hundred twenty-eight thousand three hundred seventy dollars ($363,928,370) from the unreserved fund balance to the Savings Reserve Account on June 30, 2017 . This transfer is not an "appropriation made by law," as that phrase is used in Section 7(1) of Article V of the NORTH CAROLINA Constitution. This subsection becomes effective June 30, 2017 . SECTION (d) The State Controller shall reserve from funds available in the GENERAL Fund the sum of seventy-five million dollars ($75,000,000) in nonrecurring funds for the 2017 -2018 fiscal year. The funds reserved in this subsection shall be transferred and deposited in the Medicaid Transformation Fund established in Section of 2015-241.

10 Funds deposited in the Medicaid Transformation Fund do not constitute an Page 6 Session Law 2017 -57 Senate Bill 257 "appropriation made by law," as that phrase is used in Section 7(1) of Article V of the NORTH CAROLINA Constitution. SECTION (e) Funds reserved in the Medicaid Contingency Reserve established in Section of 2014-100 do not constitute an "appropriation made by law," as that phrase is used in Section 7(1) of Article V of the NORTH CAROLINA Constitution. SECTION (f) (a) reads as rewritten: "(a) Distribution. Taxes Of the taxes collected under this Article at the rate of eight percent (8%) (8%), the sum of ten million dollars ($10,000,000) shall be credited annually to the Highway Fund, and the remainder shall be credited to the GENERAL Fund.