Senate Bill 402 - Appropriations Act SB 402 Committee Report

Senate Bill 402 - Appropriations Act SB 402 Committee Report

S

ENATE

A

PPROPRIATIONS

/

B

ASE

B

UDGET

C

OMMITTEE

R

EPORT

ON THE

C

ONTINUATION

, E

XPANSION

,

A

ND

C

APITAL

B

UDGETS

Senate Bill 402

North Carolina General Assembly

May 22, 2013

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Table of Contents

General Fund Availability Statement

Summary: General Fund Appropriations

Education

Public Education

Community Colleges

UNC System

Health and Human Services

Natural and Economic Resources

Agriculture and Consumer Services

Labor

Environment and Natural Resources

Wildlife Resources Commission

Commerce

Commerce – State Aid

Justice and Public Safety

Public Safety

Justice

Judicial – Indigent Defense

Judicial

General Government

Cultural Resources

Cultural Resources – Roanoke Island Commission

Insurance

Insurance – Volunteer Safety Workers’ Compensation Fund

State Board of Elections

General Assembly

Governor

State Budget and Management

State Budget and Management – Special Appropriations

Auditor

Revenue

Secretary of State

Lieutenant Governor

State Controller

Administration

Reserve for E-Commerce Initiative

Housing Finance Agency

Office of Administrative Hearings

Treasurer

Fire Rescue National Guard Pensions & LDD Benefits

Transportation

Reserves, Debt Service, and Adjustments

Capital

Information Technology

1

2

F-1

F-6

F-9

G-1

H-1

H-3

H-4

H-10

H-11

H-16

I-1

I-8

I-10

I-11

J-11

J-12

J-13

J-14

J-15

J-16

J-17

J-20

J-1

J-3

J-4

J-5

J-6

J-7

J-9

J-10

J-22

J-23

J-24

J-26

K-1

L-1

M-1

N-1

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General Fund Availability Statement

16

17

18

19

1

10

11

8

9

6

7

4

5

2

3

12

13

14

15

20

21

Unappropriated Balance Remaining from Previous Year

Anticipated Overcollections from FY 2012-13

Overcollections Due to MSA Disputed Payments

Anticipated Reversions from FY 2012-13

Net Supplemental Medicaid Appropriations (H.B. 980)

Less Earmarkings of Year End Fund Balance

Savings Reserve

Repairs and Renovations

Beginning Unreserved Fund Balance

Revenues Based on Existing Tax Structure

Non-tax Revenues

Investment Income

Judicial Fees

Disproportionate Share

Insurance

Other Non-Tax Revenues

Highway Trust Fund/Use Tax Reimbursement Transfer

Highway Fund Transfer

41

42

43

44

45

44

Subtotal Non-tax Revenues

33

34

35

36

37

28

29

30

31

32

38

22

23

24

25

26

27

Total General Fund Availability

Adjustments to Availability: 2013 Session

Finance Package

Tobacco Master Settlement Agreement (MSA)

MSA Disputed Payments Erroneously Paid to Golden LEAF (S.L. 2011-145)

Repeal North Carolina Public Campaign Fund

Transfer from NC Flex FICA Fund Balance

Transfer from E-Commerce Reserve Fund Balance

Transfer from Misdemeanant Confinement Fund

Repeal Portion of Solid Waste Disposal Tax Earmark

Increase Lobbyist Fees

Adjust Transfer from Insurance Regulatory Fund

Adjust Transfer from Treasurer's Office

Adjust Gross Premiums Tax for Volunteer Safety Workers

Certificate of Need Exemption for Replacement of Equipment and Facilities on

Main Campus

39

40

Subtotal Adjustments to Availability: 2013 Session

Revised General Fund Availability

Less: General Fund Appropriations

Unappropriated Balance Remaining

FY 2013-14

213,432,877

405,700,000

51,510,749

170,000,000

(306,100,000)

(165,075,883)

(100,000,000)

269,467,743

19,628,100,000

13,700,000

250,200,000

110,000,000

72,500,000

173,000,000

0

218,100,000

837,500,000

20,735,067,743

(217,100,000)

137,500,000

24,639,357

3,500,000

2,000,000

5,111,585

1,000,000

2,300,000

400,000

(460,589)

175,215

(3,000,000)

(639,152)

(44,573,584)

FY 2014-15

106,360,611

0

0

0

0

(74,244,692)

(25,502,274)

6,613,645

20,549,000,000

14,100,000

251,400,000

109,000,000

73,400,000

175,000,000

0

215,900,000

838,800,000

21,394,413,645

(553,100,000)

137,500,000

0

0

0

4,000,000

1,000,000

2,300,000

400,000

(460,589)

175,215

(3,000,000)

(643,486)

(411,828,860)

20,690,494,159 20,982,584,785

(20,584,133,548) (20,954,514,333)

106,360,611 28,070,452

Page 1

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SUMMARY:

GENERAL FUND

APPROPRIATIONS

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2

Education:

Community Colleges

Public Education

University System

Total Education

Health and Human Services:

Central Management and Support

Aging and Adult Services

Blind and Deaf / Hard of Hearing Services

Child Development and Early Education

Health Service Regulation

Medical Assistance

Mental Health, Devel. Disabilities, & Substance Abuse Svcs

NC Health Choice

Public Health

Social Services

Vocational Rehabilitation

Total Health and Human Services

Justice and Public Safety:

Public Safety

Judicial

Judicial - Indigent Defense

Justice

Total Justice and Public Safety

Summary of General Fund Appropriations

Fiscal Year 2013-14

2013 Legislative Session

Continuation Budget

2013-14

Legislative Adjustments

Recurring Nonrecurring

Adjustments Adjustments

Net

Changes

FTE

Changes

1,037,430,475 (23,115,008) 12,000,000 (11,115,008) 2.50

7,984,924,757 (108,282,241) (26,950,674) (135,232,915) (43.25)

2,709,551,807 (69,907,058) (26,280,156) (96,187,214) 0.00

11,731,907,039 (201,304,307) (41,230,830) (242,535,137) (40.75)

54,028,354

54,443,196

8,178,618

259,254,083

16,761,992

3,069,576,810

706,797,747

80,131,026

156,784,502

170,629,904

39,284,143

4,615,870,375

1,722,061,784

458,416,996

114,505,898

77,773,575

2,372,758,253

1,511,658

(300,855)

0

(1,590,625)

(939,152)

413,997,962

(42,403,664)

(12,953,685)

(7,605,505)

(3,000,573)

(510,974)

346,204,587

(9,811,866)

(4,290,254)

(5,148,634)

(30,408,001)

(49,658,755)

9,529,134

0

0

(2,624,189)

0

1,170,982

11,344,203

0

(2,000,000)

4,826,346

0

22,246,476

371,399

2,750,000

5,000,000

111,424

8,232,823

11,040,792

0

415,168,944

(9,605,505)

1,825,773

(6.00)

(300,855) 0.00

0.00

(4,214,814) (14.00)

(939,152) 0.00

0.00

(31,059,461) (589.03)

(12,953,685) 0.00

(48.00)

0.00

(510,974) 0.00

368,451,063 (657.03)

(9,440,467)

(41,425,932)

(472.70)

(1,540,254) (24.50)

(148,634) (3.25)

(30,296,577) (414.00)

(914.45)

Revised

Appropriation

2013-14

1,026,315,467

7,849,691,842

2,613,364,593

11,489,371,902

65,069,146

54,142,341

8,178,618

255,039,269

15,822,840

3,484,745,754

675,738,286

67,177,341

147,178,997

172,455,677

38,773,169

4,984,321,438

1,712,621,317

456,876,742

114,357,264

47,476,998

2,331,332,321

2

Natural And Economic Resources:

Agriculture and Consumer Services

Commerce

Commerce - State Aid

Environment and Natural Resources

Labor

Wildlife Resources Commission

Total Natural and Economic Resources

General Government:

Administration

Auditor

Cultural Resources

Cultural Resources - Roanoke Island

General Assembly

Governor

Housing Finance Agency

Insurance

Insurance - Workers' Compensation Fund

Lieutenant Governor

Office of Administrative Hearings

Revenue

Secretary of State

State Board of Elections

State Budget and Management

State Budget and Management - Special

State Controller

Treasurer - Operations

Treasurer - Retirement / Benefits

Total General Government

Statewide Reserves and Debt Service:

Debt Service:

Interest / Redemption

Federal Reimbursement

Subtotal Debt Service

Summary of General Fund Appropriations

Fiscal Year 2013-14

2013 Legislative Session

Continuation Budget

2013-14

Legislative Adjustments

Recurring Nonrecurring

Adjustments Adjustments

Net

Changes

108,918,334

33,469,442

59,714,814

109,140,591

16,196,339

18,476,588

345,916,108

68,316,992

11,013,547

63,626,477

1,058,757

52,845,390

5,539,743

9,408,417

38,454,593

2,623,654

444,047

4,335,464

80,031,575

11,845,185

5,213,445

6,951,706

49,000

29,279,290

6,851,090

23,179,042

421,067,414

3,751,568

6,119,468

(50,459,004)

42,683,820

500,000

(9,000,000)

(6,404,148)

(49,148)

203,921

(1,713,559)

(1,058,757)

(499,499)

(419,693)

(32,168)

(460,589)

(2,623,654)

231,042

221,692

5,285,510

(229,184)

(20,313)

(114,634)

(49,000)

(1,118,599)

175,215

0

(2,271,417)

FTE

Changes

2,000,800

3,072,946

250,000

6,065,720

0

0

11,389,466

(1,150,659)

0

1,021,579

0

(896,608)

0

(876,785)

0

0

6,000

170,388

19,660

0

1,505,900

0

1,800,000

0

1,111,585

0

2,711,060

5,752,368

9,192,414

15.00

(7.17)

(50,209,004) 0.00

48,749,540 82.32

500,000 0.00

(9,000,000) 0.00

4,985,318 90.15

(1,199,807)

203,921

(4.90)

2.00

(691,980) (3.00)

(1,058,757) 0.00

(1,396,107) (3.60)

(419,693) 0.00

(908,953) 0.00

(460,589) (9.00)

(2,623,654) 0.00

237,042

392,080

3.00

1.00

5,305,170 3.00

(229,184) (2.00)

1,485,587 10.00

(114,634) (2.00)

1,751,000 0.00

(1,118,599) 0.00

1,286,800

0

439,643

(1.00)

0.00

(6.50)

Revised

Appropriation

2013-14

114,670,702

42,661,856

9,505,810

157,890,131

16,696,339

9,476,588

350,901,426

67,117,185

11,217,468

62,934,497

0

51,449,283

5,120,050

8,499,464

37,994,004

0

681,089

4,727,544

85,336,745

11,616,001

6,699,032

6,837,072

1,800,000

28,160,691

8,137,890

23,179,042

421,507,057

707,080,339

1,616,380

708,696,719

3

17,977,457

0

17,977,457

0

0

0

17,977,457

0

17,977,457

725,057,796

1,616,380

726,674,176

Statewide Reserves:

Statewide Compensation Study

Severance Expenditure Reserve

Disability Income Plan of North Carolina

Teachers' & State Employees' Retirement Contribution

Judicial Retirement System Contribution

Information Technology Fund

Information Technology Reserve Fund

One North Carolina Fund

State Health Plan

Contingency and Emergency Fund

Firemen's and Rescue Squad Workers' Pension Fund

NC Government Efficiency and Reform Project

Unemployment Insurance Reserve

Job Development Investment Grants (JDIG)

Reserve for Escheat Fund Global TransPark Debt Repayment

Subtotal Statewide Reserves

Total Reserves and Debt Service

Total General Fund for Operations

Capital Improvements

Water Resources Development Projects

Other Capital Improvements

Total Capital Improvements

Total General Fund Budget

Summary of General Fund Appropriations

Fiscal Year 2013-14

2013 Legislative Session

Continuation Budget

2013-14

Legislative Adjustments

Recurring Nonrecurring

Adjustments Adjustments

Net

Changes

FTE

Changes

Revised

Appropriation

2013-14

0

6,053,142

0

9,000,000

0

0

0

0

0

5,000,000

0

0

0

27,400,000

0

47,453,142

756,149,861

20,243,669,050

0

0

0

20,243,669,050

0

0

(1,100,000)

36,000,000

1,000,000

0

7,335,000

0

34,000,000

118,816,229 114,591,314

205,382,189 117,940,309

0

0

0

1,000,000

37,126,314

0

0

0

0

23,665,000

0

0

6,917,000

10,225,000

17,142,000

205,382,189 135,082,309

1,000,000

37,126,314

0.00

0.00

(1,100,000) 0.00

36,000,000 0.00

1,000,000

0

0.00

0.00

31,000,000 33.00

0 0.00

34,000,000 0.00

0 0.00

(820,000) 0.00

2,000,000

23,800,000

0.00

0.00

24,423,772

27,000,000

0.00

0.00

215,430,086 33.00

233,407,543 33.00

989,557,404

323,322,498 (1,495.58) 20,566,991,548

6,917,000

10,225,000

17,142,000

0.00

0.00

0.00

340,464,498 (1,495.58)

1,000,000

37,126,314

(1,100,000)

36,000,000

1,000,000

6,053,142

31,000,000

9,000,000

34,000,000

5,000,000

(820,000)

2,000,000

23,800,000

51,823,772

27,000,000

262,883,228

6,917,000

10,225,000

17,142,000

20,584,133,548

4

Education:

Community Colleges

Public Education

University System

Total Education

Health and Human Services:

Central Management and Support

Aging and Adult Services

Blind and Deaf / Hard of Hearing Services

Child Development and Early Education

Health Service Regulation

Medical Assistance

Mental Health, Devel. Disabilities, & Substance Abuse Svcs

NC Health Choice

Public Health

Social Services

Vocational Rehabilitation

Total Health and Human Services

Justice and Public Safety:

Public Safety

Judicial

Judicial - Indigent Defense

Justice

Total Justice and Public Safety

Summary of General Fund Appropriations

Fiscal Year 2014-15

2013 Legislative Session

Continuation Budget

2014-15

Legislative Adjustments

Recurring Nonrecurring

Adjustments Adjustments

Net

Changes

1,037,430,475

8,111,097,830

(23,115,008)

(78,509,502)

2,737,874,470 (110,005,310)

11,886,402,775 (211,629,820)

FTE

Changes

0

0

(23,115,008)

0 (110,005,310)

2.50

(78,509,502) (43.25)

4.00

0 (211,629,820) (36.75)

Revised

Appropriation

2014-15

1,014,315,467

8,032,588,328

2,627,869,160

11,674,772,955

54,718,515

54,443,196

8,178,618

259,254,083

16,761,992

3,083,576,810

706,797,747

80,131,026

156,784,502

170,629,904

39,284,143

4,630,560,536

1,732,859,184

458,416,996

114,505,898

80,773,575

2,386,555,653

7,072,041

(100,855)

0

(1,590,625)

(943,486)

571,509,742

(45,054,252)

(23,849,621)

(17,804,004)

(2,937,001)

(510,974)

485,790,965

(18,846,044)

(4,290,254)

(5,148,634)

(30,408,001)

864,655

0

0

(2,624,189)

0

0

16,848,589

0

6,000,000

4,826,346

0

25,915,401

(21,825,152)

1,250,000

0

1,000,000

7,936,696

(100,855)

0

571,509,742

(510,974)

511,706,366

(40,671,196)

(3,040,254)

(5,148,634)

(29,408,001)

(6.00)

0.00

0.00

(4,214,814) (14.00)

(943,486) 0.00

0.00

(28,205,663) (589.03)

(23,849,621) 0.00

(11,804,004) (208.00)

1,889,345 0.00

0.00

(817.03)

(437.70)

(24.50)

(3.25)

(414.00)

(58,692,933) (19,575,152) (78,268,085) (879.45)

62,655,211

54,342,341

8,178,618

255,039,269

15,818,506

3,655,086,552

678,592,084

56,281,405

144,980,498

172,519,249

38,773,169

5,142,266,902

1,692,187,988

455,376,742

109,357,264

51,365,574

2,308,287,568

5

Natural And Economic Resources:

Agriculture and Consumer Services

Commerce

Commerce - State Aid

Environment and Natural Resources

Labor

Wildlife Resources Commission

Total Natural and Economic Resources

General Government:

Administration

Auditor

Cultural Resources

Cultural Resources - Roanoke Island

General Assembly

Governor

Housing Finance Agency

Insurance

Insurance - Workers' Compensation Fund

Lieutenant Governor

Office of Administrative Hearings

Revenue

Secretary of State

State Board of Elections

State Budget and Management

State Budget and Management - Special

State Controller

Treasurer - Operations

Treasurer - Retirement / Benefits

Total General Government

Statewide Reserves and Debt Service:

Debt Service:

Interest / Redemption

Federal Reimbursement

Subtotal Debt Service

Summary of General Fund Appropriations

Fiscal Year 2014-15

2013 Legislative Session

Continuation Budget

2014-15

Legislative Adjustments

Recurring Nonrecurring

Adjustments Adjustments

Net

Changes

108,918,334

33,469,442

61,954,814

109,220,682

16,196,339

18,476,588

348,236,199

68,241,992

11,013,547

63,629,480

1,058,757

52,845,390

5,541,825

9,408,417

38,464,213

2,623,654

444,047

4,350,431

80,031,575

11,845,185

5,213,445

7,034,217

49,000

29,279,290

6,851,090

23,179,042

421,104,597

4,351,568

9,373,317

(52,699,004)

48,355,081

500,000

(9,000,000)

880,962

(194,212)

203,921

(2,359,776)

(1,058,757)

(529,499)

(419,693)

(32,168)

(460,589)

(2,623,654)

231,042

222,150

5,285,510

(229,184)

(20,313)

(114,634)

(49,000)

(1,118,599)

175,215

0

(3,092,240)

FTE

Changes

1,500,000

2,850,000

0

(190,000)

0

0

4,160,000

(1,476,543)

0

156,725

0

(831,124)

0

(876,785)

0

0

0

80,000

0

0

828,400

0

1,500,000

0

0

0

(619,327)

5,851,568

12,223,317

(52,699,004)

48,165,081

500,000

(9,000,000)

5,040,962

15.00

(8.17)

0.00

67.32

0.00

0.00

74.15

(1,670,755) (5.90)

203,921 2.00

(2,203,051) (4.00)

(1,058,757) 0.00

(1,360,623) (3.60)

(419,693)

(2,623,654)

231,042

302,150

5,285,510

1,451,000

(1,118,599)

175,215

0

0.00

(908,953) 0.00

(460,589) (9.00)

0.00

3.00

1.00

3.00

(229,184) (2.00)

808,087 10.00

(114,634) (2.00)

0.00

0.00

(1.00)

0.00

(3,711,567) (8.50)

Revised

Appropriation

2014-15

114,769,902

45,692,759

9,255,810

157,385,763

16,696,339

9,476,588

353,277,161

66,571,237

11,217,468

61,426,429

0

51,484,767

5,122,132

8,499,464

38,003,624

0

675,089

4,652,581

85,317,085

11,616,001

6,021,532

6,919,583

1,500,000

28,160,691

7,026,305

23,179,042

417,393,030

707,080,339

1,616,380

708,696,719

6

38,391,499

0

38,391,499

0

0

0

38,391,499

0

38,391,499

745,471,838

1,616,380

747,088,218

Statewide Reserves:

Firemen's and Rescue Squad Workers' Pension Fund

Disability Income Plan of North Carolina

Teachers' & State Employees' Retirement Contribution

Judicial Retirement System Contribution

Reserve for Future Benefit Needs

Information Technology Fund

Information Technology Reserve Fund

One North Carolina Fund

State Health Plan

Contingency and Emergency Fund

NC Government Efficiency and Reform Project

Unemployment Insurance Reserve

Job Development Investment Grants (JDIG)

Subtotal Statewide Reserves

Total Reserves and Debt Service

Total General Fund for Operations

Capital Improvements

Water Resources Development Projects

Other Capital Improvements

Total Capital Improvements

Total General Fund Budget

Summary of General Fund Appropriations

Fiscal Year 2014-15

2013 Legislative Session

Continuation Budget

2014-15

Legislative Adjustments

Recurring Nonrecurring

Adjustments Adjustments

Net

Changes

FTE

Changes

Revised

Appropriation

2014-15

0

6,053,142

0

9,000,000

0

5,000,000

0

0

27,400,000

47,453,142

0

0

0

0

756,149,861

20,429,009,621

(820,000)

(1,100,000)

36,000,000

1,000,000

56,400,000

0

11,820,000

0

77,000,000

0

0

0

35,645,357

215,945,357

254,336,856

467,593,790

24,180,000

0

0

0

2,000,000

13,600,000

0

0

0

39,780,000

0

0

0

0

39,780,000

49,660,922

(820,000)

(1,100,000)

36,000,000

1,000,000

56,400,000

0

36,000,000

0

77,000,000

0

2,000,000

13,600,000

35,645,357

255,725,357

294,116,856

517,254,712 (1,623.58)

0.00

0.00

0.00

0.00

0.00

0.00

44.00

0.00

0.00

0.00

0.00

0.00

0.00

44.00

44.00

(820,000)

(1,100,000)

36,000,000

1,000,000

56,400,000

6,053,142

36,000,000

9,000,000

77,000,000

5,000,000

2,000,000

13,600,000

63,045,357

303,178,499

1,050,266,717

20,946,264,333

0

0

0

20,429,009,621

0

0

0

467,593,790

5,000,000

3,250,000

8,250,000

57,910,922

5,000,000

3,250,000

8,250,000

0.00

0.00

0.00

525,504,712 (1,623.58)

5,000,000

3,250,000

8,250,000

20,954,514,333

7

EDUCATION

Section F

[This page intentionally blank.]

Senate Subcommittee on Education

Public Education

GENERAL FUND

FY 13-14

$7,984,924,757

FY 14-15

$8,111,097,830

Recommended Continuation Budget

Legislative Changes

A. Technical Adjustments

1

Average Daily Membership (ADM)

Revises projected ADM to reflect 6,642 more students than originally projected in FY 2013-14 and 6,636 more students than originally projected in FY 2014-15. This adjustment includes revisions to all position, dollar, and categorical allotments.

$11,776,341

R

Total revised allotted ADM for FY 2013-14 is 1,509,985, an increase of

17,192 students over FY 2012-13. Total revised allotted ADM for FY

2014-15 is 1,526,591, an increase of 16,606 students over FY 2013-14.

2

Average Salaries for Certified Personnel

Revises budgeted funding for certified personnel salaries based on actual salary data from December 2012. The adjustment does not reduce any salary paid to certified personnel, nor does it reduce the number of guaranteed State-funded teachers, administrators, or instructional support personnel.

($11,873,083)

R

3

Civil Penalties

Increases budgeted receipts from Civil Penalties and takes a corresponding General Fund reduction to reflect one-time transfers from the Department of Transportation in FY 2012-13. These funds are used to support State Public School Fund requirements.

4

Small County Supplemental Funding

Adjusts this supplemental allotment for small counties to align funding availability with actual school district eligibility. This adjustment will not reduce funding to eligible districts. $44.0 million will be available in this allotment in FY 2013-14 and FY 2014-15.

5

Sales Tax Receipts Transfer to State Public School Fund

Increases the annual transfer from the Department of Revenue (DOR) to the State Public School Fund based on projected growth in State sales tax proceeds. This transfer was initiated in S.L. 2005-276 in lieu of a State sales tax refund to local school administrative units (LEAs).

Funds from the DOR transfer are used to support State Public School

Fund requirements. The total DOR transfer will be $51.3 million in FY

2013-14; $52.8 million in FY 2014-15.

($25,950,674)

NR

($1,555,885)

($5,025,426)

R

R

$12,316,344

R

($11,980,756)

R

($1,555,885)

R

($6,553,965)

R

Public Education

Page F 1

Senate Subcommittee on Education

FY 13-14 FY 14-15

6

Low Wealth Supplemental Funding

Adjusts the supplemental allotment for school districts in low wealth communities to align funding availability with actual school district eligibility. This adjustment will not reduce funding to eligible districts.

In addition, Section 8.3 of this act adjusts the Low Wealth formula to modify the income eligibility criteria of certain districts with a significant military presence. $212.5 million will be available in this allotment in

FY 2013-14 and FY 2014-15.

($14,945,402)

B. Elimination of the LEA Adjustment

7

LEA Adjustment Elimination

Eliminates the LEA Adjustment completely. The elimination is accomplished by: 1) providing additional General Fund support to lower the recurring amount of the Adjustment, and, 2) reducing specific allotments in approximately the same proportion as school districts have done the last two years in implementing the Adjustment.

$376,124,279

8

Classroom Teachers

Adjusts funding to school districts for guaranteed Classroom Teachers positions, modifying this allotment in approximately the same proportion that school districts had done in previous fiscal years to implement the LEA Adjustment. Nearly 70% of all funds foregone by

LEAs over the last two years to comply with the Adjustment came from the Classroom Teachers and Career Technical Education Months of

Employment allotments. Revised ratios for distributing guaranteed positions from this allotment are as follows:

($286,433,312)

FY 2013-14

K: 1 teacher per 19 students

1-3: 1 teacher per 18 students

4-6: 1 teacher per 24 students

7-8: 1 teacher per 23 students

9: 1 teacher per 26.5 students

10-12: 1 teacher per 29 students

FY 2014-15

K: 1 teacher per 19 students

1: 1 teacher per 18 students

2-3: 1 teacher per 17 students

4-6: 1 teacher per 24 students

7-8: 1 teacher per 23 students

9: 1 teacher per 26.5 students

10-12: 1 teacher per 29 students

9

Instructional Support Personnel

Adjusts funding to school districts for guaranteed Instructional Support positions, modifying this allotment in approximately the same proportion that school districts had done in previous fiscal years to implement the LEA Adjustment. Nearly 5% of all funds foregone by

LEAs over the last two years to comply with the Adjustment came from this allotment. $323.0 million will be available in this allotment in FY

2013-14; $326.1 million will be available in FY 2014-15.

($16,990,590)

R

R

R

R

($14,945,402)

$376,124,279

($245,897,168)

R

($17,186,802)

R

R

R

Public Education

Page F 2

Senate Subcommittee on Education

FY 13-14 FY 14-15

10

Instructional Supplies

Adjusts funding to school districts for Instructional Supplies, modifying this allotment in approximately the same proportion that school districts had done in previous fiscal years to implement the LEA

Flexibility Adjustment. LEAs gave up over $5 million in FY 2012-13 from this allotment to comply with the Adjustment. $43.2 million will be available in this allotment in FY 2013-14; $43.3 million will be available in FY 2014-15.

($6,919,008)

R

C. Other Public School Funding Adjustments

11

Limited English Proficiency

Reduces the allotment for Limited English Proficiency. Of the $6 million reduction, $3 million is reduced to account for declining enrollment based on revised student headcount figures. $75.3 million will be available in this allotment in FY 2013-14; $82.0 million will be available in FY 2014-15.

12

ACT Assessments

Provides a dedicated source of State funding for the administration of the ACT testing suite, which include the ACT, PLAN, EXPLORE, and

WorkKeys diagnostic assessments.

13

School Bus Replacement

Reduces funding for school bus replacement and modifies the school bus replacement standards. Currently school buses are eligible for replacement after 20 years or 200,000 miles of service. This item modifies the mileage standard to 250,000 miles of service and appropriates sufficient funding to replace all school buses meeting the revised criteria. 604 buses will be replaced in FY 2013-14; 721 buses will be replaced in FY 2014-15. $39.1 million will be available for this purpose in FY 2013-14; $54.1 million will be available in FY 2014-15.

($6,000,000)

$7,500,000

($28,425,435)

R

R

R

14

Education Value Added Assessment System (EVAAS)

Increases General Fund support for EVAAS to continue expansion initially supported by receipts in FY 2012-13. That expansion enables:

1) direct access to value-added information for teachers who teach classes with an End of Course/End of Grade test, and 2) capability for users to export EVAAS data and merge it with other relevant analyses. Total EVAAS funding will be $2.7 million.

15

EVAAS School Performance Grades

Provides funds for the data collection, analysis and calculation of school performance grades, as described in Section 9.4.

16

Teacher Assistants

Reduces and modifies Teacher Assistants funding. The current allotment provides LEAs with $1,182.69 per student in grades K-3 for teacher assistants. The revised allotment will provide the funding equivalent of a Teacher Assistant position for every 18 students in grades K-1, or $1,727.83 per student. In FY 2013-14, $428.4 million will remain in this allotment. In FY 2014-15, $438.2 million will remain in this allotment.

$850,000

$300,000

($142,329,582)

R

NR

R

($7,372,550)

($6,000,000)

$7,500,000

($34,560,126)

$850,000

$100,000

R

R

R

R

R

R

($149,188,180)

R

Public Education

Page F 3

Senate Subcommittee on Education

FY 13-14

17

Education-Based Salary Supplements

Phases out education-based salary supplements in FY 2014-15 for education personnel not compensated for such supplements in FY

2013-14, as directed in Section 8.22.

18

Education Services for Children at Certain Juvenile Facilities

Transfers responsibility and funding for teachers in juvenile facilities to the Department of Public Instruction (DPI), effective July 1, 2014.

Local Education Agencies with a Youth Development Center or a

Detention Center within the district will be responsible for providing services and will receive funding from DPI to carry out these tasks.

D. Pass-through Funds

19

Teach for America

Provides additional State support to Teach for America (TFA), an organization that focuses on new teacher recruitment, training and placement in high-need school districts. Funds will support the establishment of a TFA program in the Triad region, growth of existing efforts in Southeastern North Carolina, targeted subject-specific recruitment, and the assumption of management responsibilities for the NC Teacher Corps program beginning in FY 2014-15. State support for TFA will total $6 million in both years of the biennium.

20

Tarheel ChalleNGe

Transfers funding from the Department of Public Instruction for

Tarheel ChalleNGe, a National Guard program for at-risk youth, to the

Department of Public Safety (DPS) budget. The State funds were transferred to DPI in 2009, but federal matching funds remain with

DPS. This transfer consolidates all of the funding for Tarheel

ChalleNGe in one place. A corresponding increase can be found in the Justice and Public Safety Section of this budget.

21

North Carolina Center for the Advancement of Teaching

(NCCAT)

Eliminates State support for the ongoing operations of this teacher professional development provider. $88,616 will remain available in FY

2013-14 for upkeep of the two NCCAT facilities until they are otherwise conveyed. Anticipated severance costs are included in the Severance

Expenditure Reserve.

22

Teaching Fellows

Continues the phase-out, begun in S.L. 2011-145, of State support for the Teaching Fellows program . This adjustment continues the reductions initiated in the preceding biennium while preserving the prior General Assembly's intent to support obligations made to previous Fellows classes until the State's scholarship commitment is completed. Additionally, this item reduces the cash balance of the

Teaching Fellows Trust Fund by $1.3 million in FY 2013-14.

$5,100,000

($767,719)

($3,130,606)

-46.25

R

R

R

($3,095,000)

($1,300,000)

R

NR

FY 14-15

($23,500,000)

R

$3,828,824

R

$5,100,000

R

($767,719)

R

($3,219,222)

R

-46.25

($6,190,000)

R

Public Education

Page F 4

Senate Subcommittee on Education

FY 13-14 FY 14-15

E. Department of Public Instruction

23

Office of Charter Schools

Adds three consultant positions to DPI's Office of Charter Schools.

These positions will be used to keep pace with the increase of newlyestablished charter schools in North Carolina. Funds are included for salaries and benefits, travel, technology needs, and miscellaneous expenses.

24

DPI Flexible Reduction

Reduces State support for Department of Public Instruction operations, including salaries and benefits, by 2.5%. The State Board of Education may allocate this reduction at its discretion.

F. Excellent Public Schools Act

25

Excellent Public Schools Act

Provides additional funds to the Department of Public Instruction to carry out the elements of the Excellent Public Schools Act contained in

Section 7A.1 of S.L. 2012-142.

26

Merit Pay for Teachers

Provides funds to allow superintendents to provide a $500 annual pay raise in FY 2014-15 for each teacher opting to enter into a four-year contract based on effectiveness, pursuant to Section 9.6.

$320,000

3.00

($1,040,654)

$18,578,841

R

R

R

Total Legislative Changes

Total Position Changes

Revised Budget

$320,000

3.00

($1,040,654)

$35,109,480

$10,200,000

R

R

R

R

($108,282,241)

($26,950,674)

-43.25

R

NR

$7,849,691,842

($78,509,502)

-43.25

$8,032,588,328

R

Public Education

Page F 5

Senate Subcommittee on Education

Community Colleges

GENERAL FUND

FY 13-14

$1,037,430,475

FY 14-15

$1,037,430,475

Recommended Continuation Budget

Legislative Changes

A. Enrollment

27

Enrollment Model Funding Change

Modifies the community college enrollment funding model. Currently, community colleges are funded based on the higher of the prior year's actual enrollment or the three-year average enrollment. This adjustment shifts the three-year average to a two-year average, and accounts for varying enrollment among the tiered funding levels.

The State Board of Community Colleges shall allocate the $4 million nonrecurring in FY 2013-14 to phase in the reduction for those colleges most affected by the policy change.

B. Tuition and Fees

28

Curriculum Tuition

Increases curriculum tuition by $2.50 per credit hour and makes a corresponding General Fund reduction in anticipation of increased tuition receipts.

Tuition will increase from $69 to $71.50 per credit hour for residents and from $261 to $263.50 for nonresidents. Tuition for full-time resident students will increase by a maximum of $80 per year, from

$2,208 to $2,288.

29

Continuing Education Fee

Increases continuing education fees by $5 per course and takes a corresponding General Fund reduction in anticipation of increased tuition receipts. The new fees will be as follows:

Classes 1-24 hours - $70,

Classes 25-50 hours - $125,

Classes 51+ hours - $180.

30

Senior Citizens Tuition Waiver

Eliminates the tuition waiver found in G.S. 115D-5(b)(11) that waives tuition for up to six hours of credit instruction and one course of noncredit instruction per academic semester for senior citizens age 65 or older who are qualified as legal residents of North Carolina.

($19,893,462)

$4,000,000

R

NR

($10,433,065)

($664,509)

($970,000)

R

R

R

($19,893,462)

R

($10,433,065)

R

($664,509)

R

($970,000)

R

Community Colleges

Page F 6

Senate Subcommittee on Education

FY 13-14

C. State Aid Adjustments

31

Restore Management Flexibility Reduction

Provides funding to restore 12% of the management flexibility reduction. These funds will be distributed to colleges in accordance with the Community College Institutional Performance Accountability structure, as amended in Section 10.5. The remaining management flexibility reduction will be $73,233,302.

32

Equipment

Provides funds for the purchase of instructional equipment and technology at all 58 colleges. These funds are in addition to the $49 million included in the base budget for this purpose. Funds shall be distributed in accordance with the existing equipment formula.

33

Manufacturing Solutions Center

Provides additional funding for the Manufacturing Solutions Center at

Catawba Valley Community College. Total funding for this program will be $696,922.

34

Textile Technology Center

Provides additional funding for the Textile Technology Center at

Gaston College. Total funding for this program will be $503,954.

35

Customized Training

Reduces the Customized Training budget on a one-time basis. Total recurring funding for the program is $12.5 million; however, per G.S.

115D-5.1(f2), unexpended funds for the program do not revert and are instead carried forward to the next year. The total amount available for expenditure in FY 2013-14 is projected to be $20.8 million.

36

Data Connectivity

Eliminates a portion of the recurring funding for data connectivity at each community college's main campus. Due to their concentrated buying power, community colleges were able to negotiate lower rates and these funds have remained unspent. Total funding remaining for the initiative will be $4,986,528.

37

BioNetwork

Reduces funds for the BioNetwork program. Total funding remaining for the program will be $4,159,611.

38

Botanical Laboratory

Reduces support for the categorical allotment for the botanical laboratory at Fayetteville Technical Community College. The college will continue to receive regular FTE formula funding for enrollment at the botanical laboratory, and may use other State funding allocated to it to continue the program.

39

Mentoring Program

Reduces funding for the Minority Male Mentoring program by 20% and expands the program mission to include all community college students with an increased likelihood of dropping out. Total funding remaining for the new program will be $648,000.

$10,000,000

$10,000,000

$150,000

$150,000

($2,000,000)

($647,972)

($100,000)

($164,000)

($162,000)

R

NR

R

R

NR

R

R

R

R

Community Colleges

FY 14-15

$10,000,000

R

$150,000

R

$150,000

R

($647,972)

R

($100,000)

R

($164,000)

R

($162,000)

R

Page F 7

Senate Subcommittee on Education

D. Community Colleges System Office Adjustments

40

GED Program Office

Shifts $104,266 in FY 2013-14 and $208,533 in FY 2014-15 from the

Basic Skills Block Grant to the Community Colleges System Office to administer the Adult High School and General Education Development

(GED) Programs.

S.L. 2011-145 shifted this program’s budget and the associated 2.5 positions from General Fund appropriations to receipt support from

GED exam fees. Due to changes in the GED exam, these fees will no longer be paid to the System Office as of January 1, 2014. This item shifts the program budget, including two GED and Adult High School

Tech positions and one-half of the Education Program Director position, back to General Fund appropriations.

41

State Board of Community Colleges Budget

Reduces funding for the State Board Reserve ($250,000) and State

Board travel ($10,000). Section 10.10 reduces the annual number of required State Board meetings from ten to eight.

42

System Office Advertising and Travel

Reduces the System Office budget for advertising ($100,000) and travel ($20,000).

FY 13-14

2.50

($260,000)

R

($120,000)

R

Total Legislative Changes

Total Position Changes

Revised Budget

FY 14-15

2.50

($260,000)

R

($120,000)

R

($23,115,008)

$12,000,000

2.50

R

NR

$1,026,315,467

($23,115,008)

2.50

$1,014,315,467

R

Community Colleges

Page F 8

Senate Subcommittee on Education

UNC System

GENERAL FUND

FY 13-14

$2,709,551,807

FY 14-15

$2,737,874,470

Recommended Continuation Budget

Legislative Changes

43

Management Flexibility Reduction

Mandates a management flexibility reduction for the UNC operating budget. As directed in Section 11.5, the UNC Board of Governors shall not allocate this reduction on an across-the-board basis to constituent institutions.

44

Administrative and Operational Efficiencies

Reduces funding in anticipation of savings from the implementation of administrative and operational efficiencies, including:

- Shared services for residency determination, internal audit,

financial aid review, and IT infrastructure;

- Strategic purchasing;

- Span of control evaluations;

- Improved business practices; and

- Energy efficiency measures.

45

Instructional Efficiencies

Reduces funding in anticipation of savings from the implementation of system-wide academic programming measures, including system-wide section size guidelines and improved transferability of credits between

UNC campuses.

46

Program Consolidation

Reduces funding in anticipation of savings from the consolidation of small or duplicative programs within the UNC System.

47

Optional Retirement Program Forfeitures

Reduces UNC's budget by $4 million annually. The UNC System shall offset this reduction by replacing contributions to the Optional

Retirement Program with forfeitures the Program receives under G.S.

135-5.1(b)(5).

48

McNair Hall Building Reserve

Eliminates recurring operating funds previously budgeted for an addition to McNair Hall at NCA&T State University. The McNair Hall addition was to be part of the Graduate Engineering School Project but has been cancelled.

($47,988,719)

($10,000,000)

($15,800,000)

($4,000,000)

($150,185)

R

R

R

R

R

($75,386,050)

R

($15,000,000)

R

($21,100,000)

R

($1,900,000)

($4,000,000)

($150,185)

R

R

R

UNC System

Page F 9

Senate Subcommittee on Education

FY 13-14

49

WCU Engineering Degree Program at Biltmore Park

Provides funding for a general engineering degree program at

Western Carolina University's Biltmore Park Town Square location in

Buncombe County. Funds will help support start-up costs, four full-time equivalent positions, and ongoing program operations.

50

Tuition Grant for NC Science & Math Graduates

Completes the phase out of the UNC tuition grant for graduates of the

North Carolina School of Science and Math (NCSSM). $1,220,765 will remain in the budget for FY 2013-14 to pay tuition for students who graduated from NCSSM in 2010; all funding is eliminated for FY 2014-

15.

51

National Board Certification Loan Program

Reduces recurring funding for this revolving loan program for teachers pursuing certification by the National Board for Professional Teaching

Standards. Total remaining recurring funding will be $100,000.

Additionally, Section 11.2 reduces the available fund balance for the program, leaving $1,300,000 to support ongoing operations.

52

UNC Need-Based Grant Forward Funding Reserve

Provides additional funding for the UNC Need-Based Grant Forward

Funding Reserve, in order to shift the entire program to forward funding for FY 2014-15. In addition to these funds, Section 11.2 appropriates an additional $60.2 million in FY 2013-14 to the reserve.

$698,962

($1,248,310)

($3,174,500)

$3,454,656

$20,882

NR

R

R

R

NR

A total of $122,475,842 will be available for scholarships for the 2013-

14 academic year; $123,447,347 will be available in the 2014-15 academic year.

53

UNC Need-Based Grant

Decreases General Fund support for the program on a nonrecurring basis, to offset a one-time increase from the Escheat Fund. Total funding available for scholarships in the 2013-14 academic year will remain at $122,475,842.

54

Institute for Regenerative Medicine

Transfers funds for the Institute for Regenerative Medicine at Wake

Forest University from the Commerce-State Aid budget to the UNC

System budget.

55

North Carolina Center for Vaccine Innovation

Provides start-up funding for the North Carolina Center for Vaccine

Innovation, a non-profit consortium of the Schools of Medicine at UNC-

Chapel Hill, East Carolina University, Wake Forest University, and

Duke University; as well as North Carolina State University, UNC

Charlotte, the North Carolina Biotechnology Center, the North Carolina

Biosciences Organization, and the National Center for Biotechnology

Workforce.

($27,000,000)

NR

$7,000,000

$2,000,000

R

R

FY 14-15

$719,844

4.00

R

($2,469,075)

R

($3,174,500)

R

$3,454,656

R

$7,000,000

R

$2,000,000

R

UNC System

Page F 10

Senate Subcommittee on Education

Total Legislative Changes

Total Position Changes

Revised Budget

FY 13-14 FY 14-15

($69,907,058)

($26,280,156)

R

NR

($110,005,310)

R

$2,613,364,593

4.00

$2,627,869,160

UNC System

Page F 11

[This page intentionally blank.]

HEALTH

&

HUMAN SERVICES

Section G

[This page intentionally blank.]

Senate Subcommittee on Health and Human Services

Health and Human Services

GENERAL FUND

FY 13-14

$4,615,870,375

FY 14-15

$4,630,560,536

Recommended Continuation Budget

Legislative Changes

( 1.0) Division of Central Management and Support

1

Office of Citizen Services Positions

Eliminates six positions associated with the elimination of the NC Care

Line in S.L. 2011-145.

60037847 Processing Assistant III

60037849 Community Service Consultant

60037850 Administrative Officer I

60037854 Processing Assistant V

60037855 Human Service Planner/Evaluator II

60090103 Administrative Officer I

2

Adjustment Based on Historical Transfers

Reduces funds based on transfers from the Division of Central

Management to the Division of Medical Assistance. In FY 2010-11 approximately $3.7 million was transferred from lapsed salary, contracts and Division of Information and Resource Management

(DIRM) administration accounts. In FY 2011-12 approximately $2.7 million was transferred from lapsed salary and indirect cost accounts.

These funds were transferred to the Division of Medical Assistance to cover Medicaid shortfalls in both years.

3

North Carolina Families Accessing Services Through

Technology (NC FAST)

Provides funds to match federal receipts and continue the development and implementation of NC FAST.

4

Department of Justice Settlement Agreement

Provides funds pursuant to the agreement between the State and the

U.S. Department of Justice to develop and implement housing, support, and other services for people with mental illness. The funds will be used to provide services to an additional 150 people in FY 2013-

14 and up to 708 people in FY 2014-15.

5

Medicaid Management Information System (MMIS)

Directs the Department to use prior-year earned revenue to fund this system.

FY 2013-14: $9,658,152 NR

FY 2014-15: $1,666,625 NR

($339,787)

-6.00

($1,982,830)

$3,834,275

R

R

R

($339,787)

-6.00

R

($1,982,830)

R

$864,655

NR

$9,394,658

R

Health and Human Services

Page G 1

Senate Subcommittee on Health and Human Services

FY 13-14

6

DHHS Competitive Block Grant for Non-Profits

Creates a performance-based, competitive block grant process to fund services historically provided by the non-State entities specifically designated for direct appropriation in S.L. 2012-142, Section 10.19(a).

In FY 2012-13, funds were provided in specific amounts to these nonprofit entities on a nonrecurring basis. Funds appropriated in FY 12-13

(approximately $9.2 million), funds provided to the High School Athletic

Association (approximately $300,000), and the federal block funding indicated below have been consolidated into a State block grant to be administered by the Office of the Secretary in the Department of

Health and Human Services. The Department is directed to create a

Request For Application (RFA) process that will allow non-State entities to receive State funds on a competitive basis.

Additional federal block grant funds available for this purpose include:

Social Service Block Grant (SSBG) - $3,852,500

Maternal and Child Health Block Grant - $89,374

Preventive Health Services Block Grant - $1,331,961

( 2.0) Division of Child Development and Early Education

7

Regulatory Positions Shifted from State to Federal Funding

Transfers $604,541 in salaries and $204,962 in benefits for14 positions as well as $90,497 in operating costs to receipt support by utilizing the Child Care Development Fund block grant. The Child

Care Regulatory fund has $1.5 million remaining in state appropriations. The following positions are affected:

60038736 Child Day Care Specialist

60038746 Child Day Care Specialist

60038747 Child Day Care Specialist

60038610 Child Day Care Specialist

60038743 Child Day Care Specialist

60038742 Child Day Care Specialist

60038735 Child Day Care Specialist

60038741 Child Day Care Specialist

60038745 Child Day Care Specialist

60038734 Child Day Care Specialist

60038739 Child Day Care Specialist

60038749 Child Day Care Specialist

60038730 Child Day Care Specialist

60038835 Program Assistant V

8

Seat Management Funding Elimination

Eliminates funding for seat management, the outsourcing of management of workstation capabilities for employees, including hardware and software.

$9,529,134

NR

($900,000)

-14.00

($38,125)

R

R

FY 14-15

($900,000)

-14.00

R

($38,125)

R

Health and Human Services

Page G 2

Senate Subcommittee on Health and Human Services

FY 13-14

9

Adjustments Based on Historical Transfers

Reduces funds based on transfers from the Division of Child

Development and Early Education to the Division of Medical

Assistance. In FY 2011-12 approximately $870,000 was transferred from lapsed salary, contracts and administrative services to the

Division of Medical Assistance to cover the Medicaid shortfall.

($652,500)

R

10

Pre-K Slot Transfers

Transfers 2,500 Pre-K slots in FY 2013-14 and 5,000 in FY 2014-15 along with the General Fund appropriation to Child Care Subsidy.

$52.6 million in General Fund appropriation is available for Pre-K in FY

2013-14, and $40.1 million General Fund appropriation is available for

Pre-K in FY 2014-15.

11

Child Care Subsidy Increase

Increases funding to address the waiting list for Child Care Subsidy.

FY 2013-14 funding will serve approximately 2,600 additional children.

FY 2014-15 funding will serve approximately 5,200 additional children.

12

State Funds for Child Care Subsidy Replacement

Replaces the General Fund appropriation for child care subsidy with block grant funds and a transfer from the Pre-K Program. There is an overall net increase to child care subsidy of $9.8 million in FY 2013-14 and a net increase of $22.2 million in FY 2014-15. Total funds from all sources will be $360 million in FY 2013-14 and $372 million in FY 2014-

15.

($12,440,000)

$12,440,000

($2,624,189)

R

R

NR

( 4.0) Division of Social Services

13

Seat Management Funding Elimination

Eliminates funding for seat management, the outsourcing of management of workstation capabilities for employees, including hardware and software.

14

Adjustment Based on Historical Transfers

Reduces funds based on historical transfers from the Division of Social

Services to the Division of Medical Assistance. In FY 2010-11 $9.7 million was transferred from contracts, unused adoption and foster care services funding, and other administrative funds. In FY 2011-12 the division transferred approximately $15.3 million. Of this amount approximately $4.5 million was from unspent foster care and adoption services funding, $600,000 from lapsed salary, $1 million in contracts, and $4 million from non-recurring revenue from prior year earned revenue, indirect costs and prior year audit and adjustments. The remaining funds came from administration, including seat management. Some of the historical transfers are reduced in the seat management and contract and administrative reduction items. Foster

Care and Adoption services funding was reduced in the continuation budget.

($606,695)

($1,875,000)

R

R

FY 14-15

($652,500)

R

($24,880,000)

R

$24,880,000

R

($2,624,189)

NR

($606,695)

R

($1,875,000)

R

Health and Human Services

Page G 3

Senate Subcommittee on Health and Human Services

FY 13-14

15

Contract and Administrative Savings

Eliminates funds for the Child Welfare Multiple Response System

(MRS) Conference that trained county staff on MRS. The conference is no longer needed as MRS has been implemented statewide. Also eliminates funds for the forms and supply warehouse that is no longer needed as the warehouse has closed. The remaining reduction is from administration and internet billing costs.

16

Federal Funds for County Child Welfare Services Replacement

Provides funds to partially replace federal funding for child welfare administration due to a change in the application of federal policy. The

State supports county DSS agencies at an overall rate of 31% of the non-federal share of their county budgets for public assistance and service programs. This appropriation replaces 33% of the lost federal funding on a nonrecurring basis to support the counties while the North

Carolina Families Accessing Services through Technology (NCFAST) information system is being developed and implemented. Once fully implemented, NCFAST is projected to save administrative costs for counties.

17

NC Reach - Child Welfare Postsecondary Education

Provides funds to support an additional 100 former foster care youth and children adopted after age 12 who attend college within the UNC and Community College systems. NC Reach funding is the payer of last resort and covers items such as books, supplies, transportation, and room and board not covered by other funding sources.

($1,066,123)

$4,826,346

$547,245

R

NR

R

( 6.0) Division of Vocational Rehabilitation

18

Independent Living Program Administration Reduction

Reduces the administrative budget for the Independent Living Program.

($10,000)

R

($102,236)

R

19

Vocational Rehabilitation Services Administration Funding

Replaces General Fund appropriations budgeted for administrative expenses in the Vocational Rehabilitation Basic Support program with program receipts.

20

State Funding in the Assistive Technology Program Replaced

Replaces the General Fund appropriation in the Assistive Technology

Program with program receipts.

21

Historical Transfers to Medicaid

Reduces funding based on transfers from the Division of Vocational

Rehabilitation to the Division of Medical Assistance. In FY 2011-12 approximately $845,000 was transferred from indirect costs funds to the Division of Medical Assistance to cover the Medicaid shortfall.

($98,738)

R

($300,000)

R

FY 14-15

($1,066,123)

R

$4,826,346

NR

$610,817

R

($10,000)

R

($102,236)

R

($98,738)

R

($300,000)

R

Health and Human Services

Page G 4

Senate Subcommittee on Health and Human Services

FY 13-14 FY 14-15

( 7.0) Division of Aging and Adult Services

22

Seat Management Funding Elimination

Eliminates funding for seat management within the Division. The

Department discontinued outsourcing management of its workstation capabilities including hardware and software.

23

Adjustment Based on Historical Transfers

Reduces funding based on transfers from the Division of Aging and

Adult Services to the Division of Medical Assistance. In FY 2011-12 approximately $470,000 was transferred from lapsed salary and administration accounts were transferred to the Division of Medical

Assistance to cover the Medicaid shortfall.

24

Home and Community Care Block Grant (HCCBG)

Reduces the HCCBG and transfers the funds to expand Project

C.A.R.E. statewide. $24.6 million in General Fund appropriation remains in the HCCBG to provide home and community-based services to seniors and disabled adults.

25

Caregiver Alternatives to Running on Empty (Project C.A.R.E.)

Provides $500,000 to replace an expiring federal grant and an additional $2.4 million to expand Project C.A.R.E. statewide. The program provides respite and support services to families caring for a person with dementia at home.

26

Long-Term Care Ombudsman

Replaces lost federal receipts and maintains the current level of service. In the FY 2011-13 budget, General Fund support for the Long-

Term Care Ombudsman was replaced with federal civil monetary penalties receipts. Since then, the Centers for Medicare and Medicaid

Services (CMS) has restricted the use of those federal receipts for this purpose.

( 8.0) Division of Public Health

27

Early Intervention - Children's Developmental Services Agencies

Reduces FY 2013-14 funding to the Division of Public Health based on historical transfers to the Division of Medical Assistance. In FY 2010-

11, approximately $17.1 million was transferred from lapsed salary, administration, and contract accounts to address the Medicaid shortfall. In FY 2011-12, approximately $17.4 million was transferred.

Of the amounts transferred, over half was lapsed salary and other unspent funds budgeted to the Early Intervention Branch. Also eliminates funding, effective July 1, 2014, for 4 of the 16 Children's

Development Service Agencies (CDSAs). In determining which

CDSAs to close, the Division shall make it a priority to maintain the

CDSAs that have the highest caseloads of children who reside in rural or medically underserved areas of the State.

($855)

($300,000)

($2,900,000)

$2,900,000

R

R

R

R

($8,000,000)

NR

($855)

($300,000)

($2,900,000)

$2,900,000

$200,000

R

R

R

R

R

($10,000,000)

R

-160.00

Health and Human Services

Page G 5

Senate Subcommittee on Health and Human Services

FY 13-14

28

AIDS Drug Assistance Program (ADAP) Drug Purchases

Reduces ADAP funding to more accurately reflect current spending levels. ADAP provides pharmaceuticals to financially-eligible persons with AIDS. There are currently two ADAP funding sources: federal

Ryan White CARE Act and State appropriations. Nonrecurring funds are provided in each year of the biennium to address potential waiting lists for AIDS pharmaceutical assistance.

29

Food and Lodging Permit Fee

Reduces the General Fund appropriation and budgets increased food and lodging permit fee receipts. Effective July 1, 2013, the annual food and lodging permit fee increases from $75 to $120; the State's portion increases from $25 to $50.

30

Oral Health Section

Eliminates 39 dental hygienist, 2 dental technician, and 7 administrative positions effective October 1, 2013, and reduces funding for administration. A portion of the savings will be allocated to local health department dental clinics to increase the number of dental hygienists and dental assistants providing clinical dental treatment and services.

In addition to the 41 dental hygienist and dental equipment technician positions, the following administrative positions are eliminated:

60039581 Accounting Clerk V

60039585 Dental Hygienist Regional Coordinator

60039588 Public Health Regional Dentist Supervisor

60039589 Dental Hygienist Regional Coordinator

60039608 Public Health Regional Dentist Supervisor

60039627 Public Health Regional Dentist Supervisor

60039644 Education Media Specialist I

31

Local Health Department Dental Clinics

Provides funding to local health departments that operate or sponsor dental clinics, effective October 1, 2013. The local health departments shall use the funds to hire dental hygienists to provide clinical dental treatment and services.

32

State Public Health Laboratory

Provides funding for the State Public Health Laboratory to offset receipts lost due to FY 2010-11 Medicaid provider rate reductions.

33

NC Tobacco Use Quitline

Provides funds to continue the operation of the North Carolina

Tobacco Use Quitline (NC Quitline). NC Quitline provides free tobacco cessation services and treatment for NC residents.

($8,000,000)

$6,000,000

R

NR

($750,000)

($2,865,762)

-48.00

$1,558,257

$1,052,000

$1,400,000

R

R

R

R

R

FY 14-15

($8,000,000)

$6,000,000

R

NR

($750,000)

R

($3,583,681)

-48.00

R

$2,077,677

R

$1,052,000

R

$1,400,000

R

Health and Human Services

Page G 6

Senate Subcommittee on Health and Human Services

FY 13-14 FY 14-15

( 9.0) Division of Mental Health, Developmental Disabilities, and Substance Abuse Services

34

LME/MCO Administration

Reduces funds provided for Local Management Entities

(LME)/Managed Care Organizations (MCO) administration funding formula. The LME/MCO transition phase will be fully implemented by

July 1, 2013 resulting in savings to the General Fund.

35

Gambling Fund Balance

Budgets accumulated lottery budget receipts transferred to the Division for gambling addiction education and treatment programs. This reduction is not anticipated to affect the level of services provided.

36

Alcohol and Drug Abuse Treatment Centers (ADATC)

Closes the three State-operated ADATCs, effective July 1, 2013.

Each ADATC has 80 beds, with average bed costs ranging from $570 to $670 per day. A portion of the resulting savings will be added to the single-stream funding and will be allocated to the Local Management

Entities/Managed Care Organizations to be used for alcohol and substance abuse treatment services.

($15,228,245)

($416,264)

($37,951,761)

-548.88

R

NR

R

$10,000,000

R

37

Alcohol and Substance Abuse Treatment

Budgets a portion of the savings resulting from the closure of the three

State-operated residential alcohol and drug abuse treatment facilities

(ADATCs) to fund community-based and residential alcohol and substance abuse treatment services.

38

NC High School Athletic Association (NCHSAA)

Eliminates the special appropriation for the NCHSAA and transfers the funding to the Division of Central Management and Support to be used for the performance-based, competitive block grant process, for which

NCHSAA would be eligible to apply.

39

Wright School

Closes the Wright School, a 24-bed residential school for children with mental health or behavioral disorders, effective July 1, 2013.

40

Broughton Hospital Beds

Realigns the Division's base budget to transfer $3,513,000 recurring from Fund Code 1910 - Reserves and Transfers to Fund Code - 1561

Broughton Hospital to open 19 additional adult psychiatric care beds.

These funds were originally appropriated by S.L. 2012-142 for this purpose but contingent upon the status of the Medicaid budget. Due to the contingency, FY 2012-13 funds were placed in the reserve account and then transferred to Budget Code 14445 to address the

Medicaid budget shortfall. In the Division's FY 2013-15 continuation budget, the funds remain in Fund Code 1910.

($332,491)

($2,709,912)

-40.15

R

R

($15,228,245)

R

($50,602,349)

-548.88

$20,000,000

($332,491)

($2,709,912)

-40.15

R

R

R

R

Health and Human Services

Page G 7

Senate Subcommittee on Health and Human Services

FY 13-14

41

Three-Way Contracts

Realigns the Division's base budget to transfer $9 million recurring from Fund Code 1910 Reserves and Transfers to Fund Code 1464,

Crisis Services to increase the number of three-way contract community hospital beds available to Local Management

Entities/Managed Care Organizations from 141 to 186. These funds were originally appropriated by S.L. 2012-142 for this purpose but contingent upon the status of the Medicaid budget. Due to the contingency, FY 2012-13 funds were placed in the reserve account and then transferred to Budget Code 14445 to address the Medicaid budget shortfall. In the Division's FY 2013-15 continuation budget, the funds remain in Fund Code 1910.

42

Statewide Telepsychiatry Program

Provides funds to establish a statewide telepsychiatry program to provide consultant services as an alternative to alleviate hospital emergency department wait times, involuntary commitments, and local law enforcement involvement in the transport of patients who have been involuntarily committed, especially in rural and medically underserved areas. The funds shall be used to establish and administer the program and to purchase telepsychiatry equipment for the State-owned hospitals.

43

New Broughton Hospital

Provides funds to purchase medical equipment, furniture, and information technology infrastructure for the new, expanded Broughton

Hospital scheduled to open in December 2014.

44

NC Child Treatment Program

Provides funds for the statewide implementation of the NC Child

Treatment Program. Funds will be used to provide clinical training to

Medicaid-certified physicians, child trauma treatment services, and to develop an online database system.

$2,000,000

$11,510,467

NR

$1,818,745

$250,000

R

R

NR

(10.0) Division of Health Service Regulation

45

Adjustment Based on Historical Transfers

Establishes a recurring reduction in the Division of Health Service

Regulation at the level of historical transfers made to cover Medicaid shortfalls. Approximately $600,000 was transferred to the Division of

Medical Assistance in FY 2010-11; approximately $800,000 was transferred to the Division of Medical Assistance in FY 2011-12.

Additional funds are reduced due to a reduction in administrative costs associated with reduced certificate of need responsibilities.

($939,152)

R

FY 14-15

$2,000,000

R

$16,598,589

NR

$1,818,745

$250,000

R

NR

($943,486)

R

Health and Human Services

Page G 8

Senate Subcommittee on Health and Human Services

FY 13-14 FY 14-15

(11.0) Division of Medical Assistance

46

Health Homes for the Chronically Ill

Reflects the last quarter of increased federal match under the Health

Homes for the Chronically Ill program for qualified care management per member per month expenditures. Includes an enhanced federal match for all Medicaid care management payments for recipients with comorbid conditions including a chronic health condition and severe and persistent mental health conditions paid through September 30,

2013.

47

Mental Health Drug Management

Reduces funds for prescription drugs. Mental health drugs will be subject to prior authorization to ensure appropriate use and clinical outcomes effective January 1, 2014. A 72-hour emergency supply may be provided if a beneficiary is waiting for acknowledgement of the prior authorization request. This will put mental health drugs on parity with all other medications paid for by Medicaid.

48

Hospital Provider Assessment

Effective July 1, 2013 the hospital provider assessment will be modified so the State's retention of hospital assessments will be

15.6% of the total assessment paid by hospitals instead of a stated amount of $43 million.

49

Report Separately Payments to CCNC and CCNC Providers

Establishes a separate budget item for per member per month payments to the North Carolina Community Care Network for care management activities and to Community Care North Carolina (CCNC) physicians for CCNC activities for reporting and tracking purposes.

The respective amounts are

FY 2013-14 Total Requirements State Funds

Care Management $125,800,000 $44,000,000

Provider Payments $ 43,800,000 $15,300,000

FY 2014-15

Care Management $131,600,000 $46,100,000

Provider Payments $ 45,700,000 $16,000,000

($3,757,682)

($4,975,290)

($7,000,000)

$59,340,923

NR

R

R

R

($11,258,127)

R

($7,140,000)

$62,046,013

R

R

Health and Human Services

Page G 9

Senate Subcommittee on Health and Human Services

FY 13-14

50

Physician Expenditures Adjustment to Appropriately Report

CCNC Payments

Establishes a separate budget item for per member per month payments to the North Carolina Community Care Network for care management activities and to Community Care North Carolina (CCNC) physicians for CCNC activities for reporting and tracking purposes.

The respective amounts are:

($59,340,923)

FY 2013-14 Total Requirements State Funds

Care Management ($125,800,000) ($44,000,000)

Provider Payments ($ 43,800,000) ($15,300,000)

FY 2014-15

Care Management ($131,600,000) ($46,100,000)

Provider Payments ($ 45,700,000) ($16,000,000)

51

Hospital Base Rates

Recalibrate the hospital inpatient payment system so that the base rates will be regionally set for all hospitals in that region to eliminate the disparity in rates for the same services between hospitals that exist in the current system. Hospital inpatient services are paid based on a diagnosis related group (DRG) system. There are 746 DRG's in the

Medicaid program that represent classifications of services provided during an inpatient hospitalization. Each of the 746 DRG's has a weight that represents the relative resources required for services related to that diagnosis, recipient age, sex and the presence of complications or comorbidities. Hospital payment is determined by applying a base rate, unique to each hospital, to the DRG weight. The hospital base rates were developed using each hospital's costs in

1994. Changes to these base rates have only occurred when the

General Assembly has approved an increase or decrease in rates.

DHHS will work with hospitals to identify appropriate regional differences and define regional definitions.

52

Medicaid Co-payments

Increases nominal copays for eligible Medicaid services to the maximum allowed by the Centers for Medicare and Medicaid Services

(CMS) effective November 1, 2013. Services that are excluded from copays by CMS are medical emergency services, family planning services, "preventative" services for children and pregnancy-related services. DHHS will maintain all nominal copays at the maximum allowed by CMS.

53

Medicaid Contract Reductions

Adjusts contract expenditures in the second year of the biennium to reflect a reduced cost of operation and adjudication of claims related to the new Medicaid Management Information System that will be implemented July 1, 2013 .

$0

($3,308,100)

$0

R

R

R

R

FY 14-15

($62,046,013)

R

$0

R

($4,962,150)

R

($2,016,771)

R

Health and Human Services

Page G 10

Senate Subcommittee on Health and Human Services

FY 13-14

54

Hospital Outpatient Payments at 70% of Costs

Reduces interim outpatient payments to hospitals to reflect the impact of reducing the settlement to 70% of costs effective January 1, 2014.

Hospitals are currently paid for outpatient services at 80% of costs.

This will result in $17.1 million less spending for outpatient services in

FY 2013-14 and $35.6 million in FY 2014-15. The Hospital GAP plan allows hospitals to receive supplemental payments to increase the overall payments for hospital outpatient services to 100% of costs. The reduction in the outpatient patient percentage will result in an increase in the hospital assessment, of which the State will retain 15.6% of the increase assessment, totaling $3.2 million in FY 2013-14 and $6.6 million in FY 2014-15.

55

Shared Savings Payment Plan

Establishes a 4% withhold on selective services effective July 1, 2013.

Services subject to the withhold include inpatient hospital, physician

(excluding primary care physicians until January 1, 2015), dental, optical services and supplies, podiatry, chiropractors, hearing aids, personal care services, nursing homes, adult care homes and drugs.

DHHS will work with providers to develop a shared savings plan that will be implemented by January 1, 2015 that will include incentives to provide effective and efficient care that results in positive outcomes for

Medicaid recipients. In FY 2013-14 the State share of the amount withheld will be $24.8 million. This represents a total impact of $70.9 million in provider payments, including both the State and federal shares. In FY 2014-15 the State share of the withhold will be $49.5 million, providers will be eligible for shared savings that are projected to total $14.9 million and the impact of the shared savings plan on expenditures is projected to be $27.5 million.

56

Prescribed Drugs- Payment Based on Invoice Cost

Implements a payment system for all medications based on an invoice cost that will be established through quarterly surveys to determine the actual cost of drugs to pharmacies effective January 1, 2014.

Currently, brand drugs are paid a Wholesale Acquisition Cost (WAC) plus 6% and generic drugs are paid at 195% of the State Medicaid

Average Costs (SMAC). The change to invoice pricing will reduce expenditures for drugs by $27 million and $55 million in FY 2014-15.

Effective January 1, 2014, dispensing fees will be increased to an average payment of $9.87 for all drugs. The payment system for dispensing fees will retain a $2 incentive differential for generic drugs and those on the preferred drug list. This will increase expenditures by

$9 million in FY 2013-14 and $18 million in FY 2014-15.

57

Private Duty Nursing Limitation

Limits adult Private Duty Nursing (PDN) to a cost not to exceed $432 per day, effective January 1, 2014.

58

Rehabilitation Services Limitation

Limits adult rehabilitative services for set up and training to three visits per year, effective January 1, 2014 .

($20,294,954)

($31,643,177)

($18,498,384)

($5,001,351)

($2,748,350)

R

R

R

R

R

FY 14-15

($42,132,325)

R

($50,742,748)

R

($36,996,767)

R

($5,001,351)

R

($5,651,495)

R

Health and Human Services

Page G 11

Senate Subcommittee on Health and Human Services

FY 13-14

59

Exchange Premiums for Selected Medicaid Eligibles

Reduces funds by purchasing insurance on the Health Benefits

Exchange (HBE) for selected Medicaid recipients that are between

133% and 185% of the Federal Poverty Level effective January 1,

2014. Providers providing services to these recipients will be reimbursed through the insurance product the individual purchases and not from Medicaid funding.

60

Physician Office Visits Limitation

Reduces the limit on office visits for adults from 22 visits a year to 10 visits a year effective January 1, 2014. Prior authorization will be required for medically necessary visits in excess of 10 per year.

Recipients with chronic conditions will be exempted from this limitation.

61

Rate Freeze for Services Subject to Automatic Increases

Freezes rates for hospital outpatient services, nursing home services and other rates that contain an inflation or increase factor not specifically approved by the General Assembly at the rate in effect

June 30, 2013. Hospital outpatient services percentage of cost will be adjusted to compensate for expected inflation for which hospitals would be eligible. The cost settlement will be limited to that percentage. Nursing direct care services will not receive case mix index increases after June 30, 2013 until reinstated. Federally

Qualified Health Centers, Rural Health Centers, State Operated services, Hospice, Part B and D Premiums, third party and HMO premiums, drugs and MCO capitation payments are excluded.

62

Medicaid Rate Methodologies Modification for Acquired

Providers

Modifies Medicaid rate methodologies to ensure that rates paid to hospital or physician providers that were acquired, merged, leased or managed after December 31, 2011 will not exceed rates that would have been paid if the provider had not been acquired, merged, leased or managed.

63

Non-emergency Fee for Emergency Services

Establishes a triage fee for non-emergency services provided in a hospital-owned and operated emergency department on parity with similar services provided in a physician's office. The fee will be effective January 1, 2014.

64

Additional Personal Care Services for Qualified Individuals

Establishes an increased limit of up to130 hours per month for qualified recipients with Alzheimer's Disease and other memory disorders in Special Care Units in Adult Care Homes (ACH). DHHS will implement an additional savings component that addresses the higher acuity level for Alzheimer's/memory care recipients in Adult Care

Homes. The unit rate for all Personal Care Services will be reduced to

$14.12.

($4,089,627)

($3,676,525)

($18,332,670)

($1,198,401)

$0

R

R

R

R

R

FY 14-15

($20,735,543)

R

($7,560,122)

R

($28,027,681)

R

($2,464,298)

R

$0

R

Health and Human Services

Page G 12

Senate Subcommittee on Health and Human Services

FY 13-14

65

Medicaid Rebase

Provides Medicaid funding for the continuation of the program at the current level, adjusted for changes in enrollment, mix of enrollment, consumption, new service and new policy. Additionally, the rebase includes the impact of changes in federal match (FMAP), annualization of reductions not fully implemented during FY 2012-13, the extension of Medicaid to the former foster care children until age 26 beginning

January 1, 2014, contracts and settlements.

$434,000,000

$18,000,000 66

Provider Cost Settlements

Increases funding for Medicaid cost settlements to provide for the growth in Medicaid recipients and the cost of serving Medicaid recipients for those providers whose payments are cost settled after the providers fiscal year. Providers that are cost settled include hospitals, skilled nursing facilities, and Intermediate Care for the

Mentally Retarded facilities (ICF-MRs).

67

Contracts

Provides funding for Medicaid contracts that ensure the appropriate level of medical service is provided, including contracts that provide prior authorization, utilization reviews and assessments of individuals receiving medical care. This increase is due to estimated increases in the Medicaid population being served. Funding is also provided for the asset verification contract which will ensure Medicaid recipients are within the asset limit for eligibility determination purposes.

$11,000,000

$49,684,791 68

"Woodwork" and Affordable Care Act

Provides funding for expenditures for new Medicaid recipients. Even though North Carolina has decided not to expand Medicaid eligibility under the Affordable Care Act (ACA) effective January 1, 2014,

69,683 new enrollees are expected to join Medicaid in FY 2013-14 and

72,426 are expected to join in FY 2014-15 as a result of provisions contained in the ACA related to penalties for non-coverage and outreach efforts.

69

Transfer of Health Choice Children

Transfers all children under 133% of the Federal Poverty Level beginning January 1, 2014 in accordance with the Affordable Care Act which requires they be covered under Medicaid instead of Health

Choice. Provides funding for the increase in costs that will be incurred as a result of these recipients being eligible for broader benefits under

Medicaid than they had when covered under Health Choice. In FY

2013-14 there will be about 51,000 recipients impacted. The State will retain the State Children's Health Insurance Program federal match instead of the traditional Medicaid federal match. There is a partial offset in Health Choice for this amount.

70

MMIS Implementation Costs

Provides funding to implement manual processes to ensure the appropriate payment of claims by hiring temporary staff or through external contracts. The new Medicaid Management Information

System (MMIS) for the adjudication of claims is scheduled to be implemented July 1, 2013. The new system will not contain all of the functionality of the current MMIS.

$22,080,000

$4,828,664

R

R

R

R

R

NR

Health and Human Services

FY 14-15

$607,000,000

R

$18,000,000

R

$11,000,000

R

$114,119,120

R

$46,080,000

R

Page G 13

Senate Subcommittee on Health and Human Services

FY 13-14

71

Community Care Of North Carolina Study

Provides funding for a study to determine whether the Community

Care of North Carolina model saves money and improves health outcomes. This was recommended by the State Auditor in the

January 2013 performance audit of the Medicaid Program. Total funding available for the study is $200,000 as the State funds may be used to match federal Medicaid administrative funds.

(12.0) NC Health Choice

$100,000

NR

72

Mental Health Drug Management

Reduces funds for prescription drugs. Mental health drugs will subject to prior authorization to ensure appropriate use and clinical outcomes, effective January 1, 2014. This will put mental health drugs on parity with all other medications paid for by Health Choice.

($254,504)

73

Transfer of Health Choice Children

Reduces funds by transferring children to Medicaid. Beginning

January 1, 2014 the Affordable Care Act requires all children under

133% of the Federal Poverty Level be covered under Medicaid instead of Health Choice. In FY 2013-14 there will be about 51,000 recipients impacted and the State will retain the State Children's Health

Insurance Plan federal match instead of the traditional Medicaid federal match.

($12,348,000)

74

Contract Budget Adjustment

Reduces Health Choice contract expenditures to actual amounts.

($2,800,000)

R

R

R

75

Rates Freeze for Services Subject to Automatic Increases

Freezes rates for hospital outpatient services, nursing home services and other rates that contain an inflation or increase factor not specifically approved by the General Assembly at the rate in effect

June 30, 2013. Hospital outpatient services percentage of cost will be adjusted to compensate for expected inflation for which hospitals would be eligible. Cost settlement will be limited to that percentage.

Nursing direct care services will not receive case mix index increases after June 30, 2013 until reinstated. Federally Qualified Health

Centers, Rural Health Centers, State Operated services, Hospice, Part

B and D Premiums, third party and HMO premiums, drugs and MCO capitation payments are excluded.

76

Shared Savings Payment Plan

Establishes a 4% withhold on selective services effective January 1,

2014. Services subject to the withhold include inpatient hospital, physician services (excluding primary care until January 1, 2015), dental, optical services and supplies, podiatry, chiropractors, hearing aids, personal care services, nursing homes, adult care homes and drugs. DHHS will collaborate with providers to develop and implement a shared savings plan that will be implemented by January 1, 2015 to provide incentives for effective and efficient care that results in positive outcomes for Medicaid recipients.

($1,265,912)

R

($1,175,520)

R

FY 14-15

($356,861)

R

($25,480,000)

R

($2,800,000)

R

($1,405,614)

R

($2,383,942)

R

Health and Human Services

Page G 14

Senate Subcommittee on Health and Human Services

FY 13-14

77

Non-emergency Fee for Emergency Services

Establishes a triage fee for non-emergency services provided in a hospital-owned and operated emergency department on parity with similar services provided in a physician's office. The fee will be effective January 1, 2014.

78

Prescribed Drugs- Payment Based on Invoice Costs

Implements a payment system for all medications based on an invoice cost that will be established through quarterly surveys to determine the actual cost of drugs to pharmacies effective January 1, 2014.

Currently, brand drugs are paid a Wholesale Acquisition Cost (WAC) plus 6% and generic drugs are paid at 195% of the State Medicaid

Average Costs (SMAC). The change to invoice pricing will reduce expenditures for drugs by $1.2 million and $2.5 million in FY 2014-15.

Effective January 1, 2014, dispensing fees will be increased to an average payment of $9.87 for all drugs. The payment system for dispensing fees will retain a $2 incentive differential for generic drugs and those on the preferred drug list. This will increase expenditures by

$401,633 in FY 2013-14 and $803,265 in FY 2014-15.

79

Physician Expenditures Adjusted to Appropriately Report CCNC

Payments

Establishes a separate budget for per member per month payments to the North Carolina Community Care Network for care management activities and to Community Care North Carolina (CCNC) physicians for CCNC activities for reporting and tracking purposes. The respective amounts are

Total Requirements State Funds

FY2013-14

CCNC Care Management $5,800,000 $1,400,000

Provider Payments $4,500,000 $1,100,000

FY 2014-15

CCNC Care Management $6,100,000 $1,500,000

Provider Payments $4,700,000 $1,200,000

80

Physician Expenditures Adjustment to Appropriately Report

CCNC Payments

Establishes a separate budget for per member per month payments to the North Carolina Community Care Network for care management activities and to Community Care North Carolina (CCNC) physicians for CCNC activities for reporting and tracking purposes. The respective amounts are

Total Requirements State Funds

FY2013-14

CCNC Care Management ($5,800,000) ($1,400,000)

Provider Payments ($4,500,000) ($1,100,000)

FY 2014-15

CCNC Care Management ($6,100,000) ($1,500,000)

Provider Payments ($4,700,000) ($1,200,000)

($88,796)

($832,236)

$2,557,144

R

R

R

($2,557,144)

R

Health and Human Services

FY 14-15

($183,809)

R

($1,664,473)

R

$2,699,001

R

($2,699,001)

R

Page G 15

Senate Subcommittee on Health and Human Services

FY 13-14

81

Health Choice Rebase

Provides Health Choice funding to continue of the program at the current level, adjusted for changes in enrollment, mix of enrollment, consumption, new services and new policy. Additionally, the rebase includes the impact of changes in federal match (FMAP), annualization of reductions not fully implemented during FY 2012-13.

82

Cost Settle Hospital Outpatient Services to 70% of Cost

Reduces interim outpatient payments to hospitals to reflect the impact of reducing the settlement to 70% of costs effective January 1, 2014.

Hospitals are currently paid for outpatient services at 80% of costs.

$6,176,522

($365,239)

R

R

Total Legislative Changes

Total Position Changes

Revised Budget

FY 14-15

$11,178,930

R

($753,852)

R

$346,204,587

$22,246,476

-657.03

R

NR

$4,984,321,438

$485,790,965

$25,915,401

-817.03

R

NR

$5,142,266,902

Health and Human Services

Page G 16

NATURAL

&

ECONOMIC

RESOURCES

Section H

[This page intentionally blank.]

Senate Subcommittee on Natural and Economic Resources

Agriculture and Consumer Services

GENERAL FUND

FY 13-14

$108,918,334

FY 14-15

$108,918,334

Recommended Continuation Budget

Legislative Changes

Department-wide

1

Management Flexibility Reserve

Reduces operational support to encourage increased efficiency. The reduction equates to a 1.4% operating reduction from the

Department's continuation budget.

Food & Drug

2

Food Compliance Officer Position

Provides funding to support a new position in the Food and Drug

Division to improve the compliance inspection process in the Grade

"A" Milk program.

Forest Service

3

Forest Service Operational Support/Aircraft Maintenance

Provides an additional $350,000 in recurring funding for operational support. Of the recurring funds provided, the Department shall establish an administrative position whose primary responsibility will be the collection of Forest Service receipts.

This section also provides a nonrecurring appropriation of $500,000 in

FY 2013-14 for aircraft maintenance.

Markets

4

Additional Marketing Funding

Provides an additional $1.5 million recurring to expand domestic and international marketing initiatives to support North Carolina agricultural products. The Department shall also use the additional funds to support the Wine and Grape Growers Council that was funded on nonrecurring basis in FY 2012-13.

The time-limited position supporting the Wine & Grape Growers

Council (60080945) will be made permanent and will be supported by funds allocated to the Wine and Grape Growers Council.

5

Funding for Southeastern NC Agricultural Center

Restores recurring funding and positions to the Southeastern NC

Agricultural Center in Lumberton. The Center was provided nonrecurring funding in FY 2012-13 and directed to study alternative operating models.

($1,500,000)

R

$64,338

$800

1.00

$350,000

$500,000

1.00

$1,500,000

1.00

$362,230

6.00

R

NR

R

NR

R

R

($1,500,000)

R

$64,338

1.00

R

$350,000

1.00

R

$1,500,000

1.00

R

$362,230

6.00

R

Agriculture and Consumer Services

Page H 1

Senate Subcommittee on Natural and Economic Resources

FY 13-14

Plant Industry

6

Plant Conservation Continuation

Provides recurring funding to restore the amount no longer transferred from the Natural Heritage Trust Fund. Shifts one position (60012489) previously supported by Natural Heritage Trust Fund receipts to

General Fund support.

Research Stations

7

Bioenergy Development

Provides funding to the Department of Agriculture & Consumer

Services to stimulate energy production from North Carolina agricultural or forestry based products. Funding is provided to support up to five new positions and a grant program. Operating expenses, including personnel and travel, are not to exceed $400,000 in FY 2013-

14 and $500,000 in FY 2014-15.

8

Research Stations Equipment

Provides funds to modernize farming equipment on Research Stations in each year of the biennium.

Reserves & Transfers

9

Agricultural Development and Farmland Preservation Trust

Fund

Reduces the General Fund appropriation by $1 million on nonrecurring basis in each year of the biennium. Reduction in General Fund support will be offset by $1 million in each year of the biennium from

TVA Settlement funds.

10

Tobacco Trust Fund

Provides funding to the Tobacco Trust Fund to be evenly disbursed as grants and loans to displaced tobacco farmers. Administrative expenses may be deducted proportionately from all funds available, but shall not exceed $350,000 in any fiscal year.

$75,000

1.00

$900,000

5.00

$2,500,000

R

R

NR

($1,000,000)

NR

$2,000,000

R

Total Legislative Changes

Total Position Changes

Revised Budget

$3,751,568

$2,000,800

15.00

R

NR

$114,670,702

FY 14-15

$75,000

1.00

R

$1,500,000

5.00

R

$2,500,000

NR

($1,000,000)

NR

$2,000,000

R

$4,351,568

$1,500,000

15.00

R

NR

$114,769,902

Agriculture and Consumer Services

Page H 2

Senate Subcommittee on Natural and Economic Resources

Labor

Recommended Continuation Budget

Legislative Changes

Occupational Safety & Health

11

Partial Restoration of OSHA Federal Receipts

Provides funds to offset federal funding reductions.

Standards & Inspections

12

Apprenticeship Bureau

Transfers $350,000 recurring in Workforce Investment Act funds from the Department of Commerce to the Department of Labor for the

Apprenticeship program.

GENERAL FUND

FY 13-14

$16,196,339

FY 14-15

$16,196,339

$500,000

R

$500,000

R

$500,000 R $500,000 R

Total Legislative Changes

Total Position Changes

Revised Budget

$16,696,339 $16,696,339

Labor

Page H 3

Senate Subcommittee on Natural and Economic Resources

Environment & Natural Resources

GENERAL FUND

FY 13-14

$109,140,591

FY 14-15

$109,220,682

Recommended Continuation Budget

Legislative Changes

Department-wide

13

Management Flexibility Reserve

Reduces funding to the Department by 2% and provides the Secretary with the flexibility to take the reduction to programs and activities that cause the least disruption in service.

Aquariums

14

Admission Receipts

Budgets over-realized admission fee receipts in the General Fund to offset the operating costs of the State's three aquariums at Roanoke

Island, Fort Fisher, and Pine Knoll Shores.

Conservation, Planning, and Community Affairs

15

Sustainable Communities Task Force

Abolishes the Community Planner position (60031547) that supports the Sustainable Communities Task Force, which was created by the

General Assembly in 2010 to lead and support the State's sustainable communities initiatives. Also, sunsets the Task Force on June 30,

2013.

16

Operating Support

Restores personnel and operating funds for the Office of

Conservation, Planning and Community Affairs that had been previously supported with a transfer from the Natural Heritage Trust

Fund.

60036191 Program Development Coordinator

60036192 Program Development Coordinator

60036213 Educational Development Coordinator

17

Water and Land Conservation Authority

Provides funding to establish a new Water and Land Conservation

Fund comprised of the former Natural Heritage Trust Fund and Clean

Water Management Trust Fund, and creates a new Authority to oversee the expenditures from the Fund. Provides staff (13.50 FTE) to administer the new fund and continues funding for the Natural Heritage

Program (15.75 FTE).

($2,277,894)

($100,000)

($95,331)

-1.00

$325,000

3.00

$12,000,000

29.25

R

R

R

R

R

($2,277,894)

R

($100,000)

R

($95,331)

-1.00

R

$325,000

3.00

R

$14,000,000

29.25

R

Environment & Natural Resources

Page H 4

Senate Subcommittee on Natural and Economic Resources

FY 13-14

Energy, Mineral and Land Resources

18

Energy Office

Transfers the Energy Office from the Department of Commerce to the

Department of Environment and Natural Resources as a Type I transfer, including 49.91 FTEs supported by receipts in special funds.

19

Pass-through Funding to Appalachian State University

Reduces funding to Appalachian State University. Instead, provides nonrecurring funds from the Tennessee Valley Authority settlement, which must be spent in accordance with either the Consent Decree

("Categories of Projects," paragraph 128) or the Compliance

Agreement ("Environmental Mitigation Projects," Appendix C).

20

Shale Gas Exploration

Provides funding to support up to four positions to assist the Energy and Mining Commission as well as operating support including but not limited to annual membership dues to the Southern States Energy

Board and marketing expenses related to shale gas resources. Also provides nonrecurring funding to provide for data collection and analysis of geological samples associated with the State's shale gas basins: Deep River Basin, Dan River Basin, and the Cumberland-

Marlboro Basin.

Environmental Assistance and Outreach

21

Small Business Assistance Program

Budgets Air Quality permit fees to partially offset General Fund support of a Senior Environmental Specialist (60035965) in the federally mandated Small Business Assistance Program, which helps small businesses comply with the requirements of the Clean Air Act.

22

Solid Waste Management

Provides funding for the activities of the Solid Waste Management

Outreach Program (previously the Solid Waste Management Trust

Fund), which now includes developing secondary markets for the reuse of scrap tires.

23

Operating Funds

Provides funds to support personnel and operating costs that were previously funded from the Solid Waste Management Trust Fund.

Marine Fisheries

24

Temporary Wages

Reduces temporary wages in the License Administration and Trip

Ticket programs, the Purchasing/Warehouse Unit and the Marine

Patrol Section. Total funding remaining for temporary wages is

$103,503.

$1,762,714

6.17

R

($240,000)

$300,000

$300,000

4.00

($19,422)

-0.30

$1,100,000

$1,375,000

15.50

($183,183)

NR

R

NR

R

R

R

R

FY 14-15

$1,762,714

6.17

R

($240,000)

NR

$400,000

$250,000

4.00

R

NR

($19,422)

-0.30

R

$1,100,000

R

$1,375,000

15.50

R

($183,183)

R

Environment & Natural Resources

Page H 5

Senate Subcommittee on Natural and Economic Resources

25

Shellfish Rehabilitation Program

Reduces funding for the Shellfish Rehabilitation Program by cutting temporary wages ($27,474). Also eliminates one Marine Biologist position (60032767), which supports the Oyster Shell Recycling program, and associated operating costs.

26

Fisheries Resource Grant Program

Eliminates the remaining appropriation for the Fishery Resource Grant

Program which promotes cooperative research among commercial fishers, recreational anglers, seafood businesses and university researchers.

27

Marine Patrol

Budgets anticipated federal receipts due to the creation of a Joint

Enforcement Agreement that would allow the Division of Marine

Fisheries to receive federal funds for enforcing federal fisheries laws in federal waters and law enforcement officers to be cross-sworn as

National Marine Fisheries Agents. North Carolina is the only coastal state without a Joint Enforcement Agreement.

28

At-Sea Observer Program

Provides nonrecurring funding for six new positions to support a statewide at-sea observer program for all fisheries, with an emphasis on the commercial estuarine gill net fishery. These positions, combined with nine existing positions, are necessary to meet federal requirements to monitor multiple fisheries.

Museum of Natural Sciences

29

Grassroots Science Museums

Transfers the funding and grant oversight for the Grassroots Science

Museums to the Museum of Natural Sciences, the State's lead science museum.

30

Museum of Forestry

Eliminates funding for the Museum of Forestry and transfers ownership of the Museum to the City of Whiteville. Provides funding for the Museum through the Grassroots Science Program.

60035027 Natural Science Museum Program Chief

60035029 Art Exhibits Technician

60035033 Natural Science Curator II

60035028 Administrative Assistant

Parks and Recreation

31

Adopt-a-Trails

Eliminates funding for the Adopt-a-Trails Program. Grant funding for trail projects is still available through the NC Parks and Recreation

Trust Fund.

32

Parks Operations

Restores funding to the Division's operating budget which was reduced on a nonrecurring basis in the 2011-13 biennium.

FY 13-14

($81,605)

-1.00

R

($100,000)

($150,000)

R

NR

$1,100,000

15.00

NR

$2,289,782

($357,397)

-4.00

($108,000)

$6,000,000

R

R

R

R

Environment & Natural Resources

FY 14-15

($81,605)

R

-1.00

($100,000)

R

($200,000)

NR

$2,286,043

R

($357,397)

-4.00

R

($108,000)

R

$6,000,000

R

Page H 6

Senate Subcommittee on Natural and Economic Resources

FY 13-14

33

Parks and Recreation Trust Fund

Provides a recurring General Fund appropriation to the Parks and

Recreation Trust Fund to replace the loss of the deed stamp tax revenue which will now be deposited in the State's General Fund.

Continues funding for staff associated with Trust Fund activities.

Waste Management

34

Texfi Site Contamination

Provides nonrecurring funds to be used for the cleanup and monitoring of groundwater and other contamination located at the Texfi site in

Fayetteville as well as any emergency cleanup activities at that site.

35

Scrap Tire Program

Provides recurring funding to support a portion of the salaries (.25

FTE) of four positions in four regional offices ($80,000) and $420,000 for scrap tire grants to counties.

60034594 Environmental Senior Specialist (0.25 FTE)

60034602 Environmental Program Supervisor (0.25 FTE)

60034608 Environmental Specialist (0.25 FTE)

60034595 Environmental Specialist (0.25 FTE)

36

Bernard Allen Memorial Emergency Drinking Water Fund

Provides funds to replace the loss of scrap tire tax revenue, which will now be deposited into the State's General Fund.

37

Inactive Hazardous Sites Cleanup Fund

Provides recurring funding to the Inactive Hazardous Sites Cleanup

Fund to be used to fund the assessment and remediation of pre-1983 landfills as provided in G.S. 130A-295.9(1) and G.S. 103A-310.6(c).

38

Inactive Hazardous Waste Sites

Provides funding for the Inactive Hazardous Sites Program to hire one engineer and one hydrogeologist to evaluate areas with known contamination that have limited data on water supply wells. The staff will sample water supply wells as well as investigate and abate contamination sources.

39

Noncommercial Fund

Provides a nonrecurring appropriation for the Noncommercial Leaking

Underground Storage Tank Fund to assist homeowners with the cleanup costs of petroleum releases from home heating oil tanks and smaller farm tanks.

$11,000,000

15.00

R

$50,000

$500,000

1.00

$400,000

$400,000

$250,000

2.00

$3,500,000

NR

R

R

R

R

NR

FY 14-15

$13,000,000

15.00

R

$500,000

1.00

R

$400,000

R

$400,000

R

$250,000

2.00

R

Environment & Natural Resources

Page H 7

Senate Subcommittee on Natural and Economic Resources

FY 13-14

Water Infrastructure Authority

40

Water Infrastructure Authority (WIA)

Creates a new division and authority within the Department of

Environment and Natural Resources for the purpose of addressing critical public water and wastewater infrastructure needs. Provides funding for a new Assistant Secretary for Infrastructure, a new Division

Director, as well as a recurring General Fund appropriation for a water and sewer database and planning and supplemental grants to assist local governments. WIA will also administer the State Revolving Funds and the Community Development Block Grant Infrastructure Grant

Program.

41

Drinking Water State Revolving Fund

Provides funding to meet State match requirements of $4.71 million to allow the Department to draw down the maximum amount of federal funds available ($23.54 million) for the Drinking Water State Revolving

Fund for FY 2013-14. State match will be provided by combining a nonrecurring General Fund appropriation of $1,255,720 with $3.8 million in State funds from the Drinking Water Reserve.

42

Clean Water State Revolving Fund

Provides funding for the required State match to draw down the maximum amount of federal funds available for the Clean Water State

Revolving Fund. This program provides low-interest loans to local governments to construct wastewater facilities and provides $5 in federal capitalization grant funds for every $1 the state provides in matching funds.

Water Quality

43

Clean Water State Revolving Fund

Transfers the Clean Water State Revolving Fund program and staff to the newly created Division of Water Infrastructure.

Water Resources

44

Receipt Support

Budgets additional federal receipts and shifts 4.3 positions from

General Fund appropriation to receipt support.

60034385 Engineering Manager (1.00 FTE)

60034388 Engineer (0.80 FTE)

60034394 Engineering Supervisor (1.00 FTE)

60034398 Engineering Supervisor (1.00 FTE)

60034397 Geologist (0.50 FTE)

45

Drinking Water State Revolving Fund

Transfers the Drinking Water State Revolving Fund program and staff to the newly created Division of Water Infrastructure.

$4,000,000

2.00

R

$1,255,720

NR

$4,925,000

($409,521)

-4.30

R

R

FY 14-15

$5,500,000

2.00

R

$5,000,000

R

($409,521)

-4.30

R

Environment & Natural Resources

Page H 8

Senate Subcommittee on Natural and Economic Resources

Zoo

46

Operating Reductions

Reduces operating support for temporary wages, worker's compensation and equipment.

47

Zoo Tram

Provides funding to support repair and replacement of zoo trams.

Total Legislative Changes

Total Position Changes

Revised Budget

FY 13-14 FY 14-15

($211,323)

R

($211,323)

R

$250,000

NR

$42,683,820

$6,065,720

82.32

R

NR

$157,890,131

$48,355,081

($190,000)

67.32

R

NR

$157,385,763

Environment & Natural Resources

Page H 9

Senate Subcommittee on Natural and Economic Resources

Wildlife Resources Commission

GENERAL FUND

FY 13-14

$18,476,588

FY 14-15

$18,476,588

Recommended Continuation Budget

Legislative Changes

Commission-wide

48

Wildlife Resources Commission Operations

Reduces General Fund appropriations by 49% and allows the Wildlife

Resources Commission to use other funds available to the

Commission to offset the reduction at its discretion.

($9,000,000)

R

($9,000,000)

R

($9,000,000)

R

($9,000,000)

R

Total Legislative Changes

Total Position Changes

Revised Budget $9,476,588 $9,476,588

Wildlife Resources Commission

Page H 10

Senate Subcommittee on Natural and Economic Resources

Commerce

GENERAL FUND

FY 13-14

$33,469,442

FY 14-15

$33,469,442

Recommended Continuation Budget

Legislative Changes

Department-wide

49

Management Flexibility Reserve

Reduces funding to the Department by 1.2% and provides the

Secretary with the flexibility to take the reduction to programs and activities that cause the least disruption in service.

50

Indirect Cost Receipts

Offsets the General Fund appropriation by maximizing the use of indirect cost receipts.

Administration

51

Special Funds

Offsets the General Fund appropriation for Administration by directing the unencumbered cash balance as of June 30, 2013 from the following funds toward operating costs:

NC Green Business Fund (24609-2535)

Energy Research Grants Special Fund (24609-2537)

International Trade Show Special Fund (24610-2431).

Closes the International Trade Show Special Fund after transfer.

52

Director of Internal Operations

Eliminates the Director of Internal Operations (60077182) position.

53

Accountant I and Accountant II

Eliminates an Account I position (60089502) and an Accountant II position (60077178). These positions are no longer required to monitor nonprofits.

54

Processing Assistant

Eliminates a Processing Assistant position (60080973).

55

Base Realignment and Closure (BRAC)

Provides nonrecurring funding for the State's preparation for

Department of Defense BRAC activities.

($354,200)

($205,786)

($332,527)

($131,001)

-1.00

($139,039)

-2.00

($47,581)

-1.00

R

R

NR

R

R

R

$1,000,000

NR

($354,200)

R

($205,786)

R

($131,001)

R

-1.00

($139,039)

R

-2.00

($47,581)

-1.00

R

Commerce

Page H 11

Senate Subcommittee on Natural and Economic Resources

FY 13-14

Business and Industry

56

Regional Office Restructuring

Eliminates existing regional office resources; redirects support to new

Rural Economic Development Division.

57

Economic Developer

Eliminates an Economic Developer position (60080949).

($1,399,422)

-19.00

($83,651)

-1.00

R

R

Commerce Finance Center

58

Utility Account Proceeds

Transfers anticipated proceeds from the Job Development Investment

Grant's (JDIG) Industrial Development Fund (IDF) - Utility Account to offset Commerce operating expenses and thereby reduce the agency's General Fund appropriation.

59

Job Maintenance and Capital Development Fund (JMAC)

Provides funds to fulfill JMAC agreements with Goodyear,

Bridgestone, and Domtar.

Community Assistance

60

Support Positions and Operating Budget

Reduces one Office Assistant IV position (60081170).

($5,000,000)

NR

$6,705,473

NR

($43,481)

-1.00

R

Energy

61

Energy

Transfers the Energy Office from the Department of Commerce to the

Department of Environment and Natural Resources as a Type I transfer.

Industrial Commission

62

Management Flexibility Reserve

Reduces funding to the Commission by 1.7% and provides the

Commissioner with the flexibility to take the reduction in programs and activities that cause the least disruption in service.

63

Commissioner

Eliminates a Commissioner position (60080616). Section 16 of S.L.

2011- 287 reduced the number of Commissioners from seven to six, but did not eliminate the associated funding.

64

Insurance Compliance Program

Provides funds to the Industrial Commission to establish a compliance program that will apply data analytics received from North Carolina's

Government Data Analytics Center (formerly the Government

Business Intelligence Competency Center). This data and its application will enable the Industrial Commission to proactively identify noncompliant businesses and ensure these businesses obtain and maintain the required workers' compensation coverage.

Commerce

($1,762,714)

-6.17

R

($81,539)

R

($150,029)

-1.00

R

$901,502

13.00

R

FY 14-15

($1,399,422)

R

-19.00

($83,651)

R

-1.00

($5,000,000)

NR

$7,500,000

NR

($43,481)

-1.00

R

($1,762,714)

-6.17

R

($81,539)

R

($150,029)

-1.00

R

$901,502

13.00

R

Page H 12

Senate Subcommittee on Natural and Economic Resources

65

Investigation Management System

Provides the Industrial Commission's newly established compliance program with the technology necessary to process, prioritize and track investigations and results based on data provided by North Carolina's

Government Data Analytics Center (formerly the Government

Business Intelligence Competency Center).

International Trade

66

Position Reduction

Eliminates four positions:

60081000 Administrative Assistant I Position

60081001 Events Coordinator Position

60081003 Business Development Manager Position

60081005 Business Development Manager Position

67

High Point Office

Eliminates the High Point office and an Office Assistant position

(60081007). The remaining Economic Developer position will co-locate with the High Point Market Authority.

68

Trade Shows

Reduces the trade show advertising budget to align with prior year expenditures. Total budget remaining is $92,705.

Labor and Economic Analysis Division

69

Common Follow-Up System

Provides funding for the Common Follow-Up System managed by the

Labor and Economic Analysis Division (LEAD), which is used to track performance measures related to current and former participants in

State job training, education and placement programs. Recurring funding will be contingent upon the findings of a legislative continuation review.

Marketing

70

Trade and Investment Event

Provides funds for the 2014 Southeastern U.S. Canadian Strategic

Trade and Investment Partnership Event. In an agreement signed in

2006, North Carolina agreed to host the event, which will identify opportunities to increase trade and investment between six southeastern U.S. States and seven Canadian provinces. The total cost is estimated at $400,000. It is expected that the remaining

$250,000 will be raised from private sponsors.

FY 13-14

$75,000

$50,000

R

NR

($286,202)

-4.00

R

($58,430)

-1.00

R

($48,347)

R

$500,000

NR

$150,000

NR

FY 14-15

$75,000

R

($286,202)

-4.00

R

($58,430)

-1.00

R

($48,347)

R

Commerce

Page H 13

Senate Subcommittee on Natural and Economic Resources

FY 13-14

NC Broadband

71

State Match

Eliminates the State match for the federal grant provided by the U.S.

Department of Commerce National Telecommunications and

Information Administration for State Broadband Data and Development

Grant, currently titled NC Broadband-Rigor in Mapping. The required

State match has been satisfied and the project will be complete by

October 2014.

Office of Science & Technology

72

Division Elimination

Eliminates the Office of Science and Technology, including the

Director position (60081266) and the Executive Assistant (60081264).

Directs Commerce Finance to administer outstanding grants.

Rural Economic Development

73

Rural Economic Development Division

Creates a new Division within the Department of Commerce for the purpose of addressing the economic development needs of the State's rural counties. Provides funding for a new Assistant Secretary for

Rural Economic Development who will oversee administration of a new infrastructure grant program to local governments in Tier One and

Two Counties. The Rural Economic Development Division may use up to three percent (3%) of the funds appropriated in this section to cover its expenses in administering the new infrastructure grant program.

The Assistant Secretary will also oversee existing programs, including the Industrial Development Fund - Utility Account and the Community

Development Block Grant for Economic Development. Also provides nonrecurring funding to encourage private sector broadband providers to extend connectivity to unserved areas that are otherwise not economically feasible for deployment.

74

Regional Office Restructuring

Establishes regional office resources under the Rural Economic

Development Division and provides additional funding in an effort to enhance regional office presence in rural areas, focusing on new business recruitment and existing industry support.

Wanchese Seafood Industrial Park

75

Receipt Support

Eliminates funding for the Wanchese Seafood Industrial Park, including the Director position (60080846). The Park must be fully receipt supported beginning in FY 2014-15.

($172,203)

($213,269)

-2.00

$7,000,000

R

R

R

$3,319,860

19.00

R

FY 14-15

($172,203)

R

($213,269)

-2.00

R

$10,000,000

$350,000

R

NR

$3,713,790

19.00

R

($140,081)

-1.00

R

Commerce

Page H 14

Senate Subcommittee on Natural and Economic Resources

Workforce Solutions

76

Workforce Investment Act Funds

Transfers $350,000 recurring in federal Workforce Investment Act funds from the Department of Commerce to the Department of Labor to be used for the Apprenticeship Program.

Total Legislative Changes

Total Position Changes

Revised Budget

FY 13-14

$6,119,468

$3,072,946

-7.17

R

NR

$42,661,856

FY 14-15

$9,373,317

$2,850,000

-8.17

R

NR

$45,692,759

Commerce

Page H 15

Senate Subcommittee on Natural and Economic Resources

Commerce - State Aid

GENERAL FUND

FY 13-14

$59,714,814

FY 14-15

$61,954,814

Recommended Continuation Budget

Legislative Changes

(1) State-Aid

77

Biofuels Center

Eliminates General Fund support for operational expenditures.

78

Community Development Initiative

Eliminates General Fund support for operational expenditures.

79

Council of Governments (COGs)

Eliminates General Fund support for operational expenditures.

80

Grassroots Science Museums

Reduces General Fund support for operational expenditures and transfers funding of the program to the Department of Environment and Natural Resources.

81

Institute of Minority Economic Development

Eliminates General Fund support for operational expenditures.

82

Land Loss Prevention Project

Eliminates General Fund support for operational expenditures.

83

NC Agriculture Foundation (FFA Foundation)

Eliminates General Fund support for operational expenditures from

Commerce State-Aid. The Department of Agriculture and Consumer

Services may use up to $50,000 of available administrative funds to support the program.

84

NC Association of Community Development Corporations

(CDCs)

Eliminates General Fund support for operational expenditures.

85

NC Farm Bureau - Ag in the Classroom

Eliminates General Fund support for operational expenditures.

86

NC Indian Economic Development Initiative

Eliminates General Fund support for operational expenditures.

($2,063,035)

R

($3,806,180)

R

($328,105)

R

($2,773,043)

R

($2,046,080)

R

($575,050)

R

($35,855)

R

($797,102)

R

($21,175)

R

($86,004)

R

($4,303,035)

R

($3,806,180)

R

($328,105)

R

($2,773,043)

R

($2,046,080)

R

($575,050)

R

($35,855)

R

($797,102)

R

($21,175)

R

($86,004)

R

Commerce - State Aid

Page H 16

Senate Subcommittee on Natural and Economic Resources

87

Partnership for the Sounds

Eliminates General Fund support for operational expenditures.

88

Regional Economic Development Commissions

Eliminates General Fund support for operational expenditures.

89

Research Triangle Institute

Provides funds for the Research Triangle Institute to leverage federal research funds.

90

The Support Center

Eliminates General Fund support for operational expenditures.

91

Wake Forest Institute of Regenerative Medicine

Transfers General Fund support for operational expenditures to the

University of North Carolina system.

92

Restore Negative Management Flexibility Reserve

Provides funding to fill a budget gap created by making a FY 2012-13 nonrecurring reduction permanent in the FY 2013-14 continuation budget.

(2) Biotechnology Center

93

Biotechnology Center

Reduces General Fund support for operational expenditures by 50%.

(3) Rural Economic Development Center

94

Rural Economic Development Center

Eliminates General Fund support for operational expenditures.

FY 13-14

($391,408)

R

($2,151,517)

$250,000

($2,543,021)

($7,649,897)

$28,000

($8,600,338)

R

NR

R

R

R

R

($16,619,194)

R

FY 14-15

($391,408)

R

($2,151,517)

R

($2,543,021)

R

($7,649,897)

R

$28,000

R

($8,600,338)

R

($16,619,194)

R

Total Legislative Changes

Total Position Changes

Revised Budget

($50,459,004)

$250,000

R

NR

($52,699,004)

R

$9,505,810 $9,255,810

Commerce - State Aid

Page H 17

Senate Committee on Appropriations/Base Budget

Drinking Water Reserve

Beginning Unreserved Fund Balance

Recommended Budget

Requirements

Receipts

Positions

Legislative Changes

Requirements:

Drinking Water Reserve

Provides a portion of the State match required to draw down the maximum amount of federal funds available ($23.54 million) for the Drinking Water

State Revolving Fund for FY 2013-14.

Subtotal Legislative Changes

FY 2013-14

$13,298,248

$472,051

$472,051

0.00

$0

$3,800,000

0.00

R

NR

$0

$3,800,000

0.00

R

NR

Budget Code: 64324

FY 2014-15

$9,498,248

$472,051

$472,051

0.00

$0

$0

0.00

R

NR

$0

$0

0.00

R

NR

Receipts:

Drinking Water Reserve

Subtotal Legislative Changes

$0

$0

R

NR

$0

$0

R

NR

$0

$0

R

NR

$0

$0

R

NR

Environment and Natural Resources

Page H 18

Senate Committee on Appropriations/Base Budget

Revised Total Requirements

Revised Total Receipts

Change in Fund Balance

Total Positions

Unappropriated Balance Remaining

FY 2013-14

$4,272,051

$472,051

($3,800,000)

0.00

$9,498,248

FY 2014-15

$472,051

$472,051

$0

0.00

$9,498,248

Environment and Natural Resources

Page H 19

Senate Committee on Appropriations/Base Budget

Commerce - Special Revenue - GF

Beginning Unreserved Fund Balance

Recommended Budget

Requirements

Receipts

Positions

Legislative Changes

Requirements:

NC Green Business Fund

Transfers a portion of the cash balance to

Commerce's Administration Division to offset operating expenses.

Energy Research Grants

Transfers a portion of the cash balance to

Commerce's Administration Division to offset operating expenses.

Subtotal Legislative Changes

FY 2013-14

$18,348,044

$28,711,556

$28,476,737

6.00

$0

$36,827

0.00

R

NR

$0

$278,500

0.00

R

NR

$0

$315,327

0.00

R

NR

Budget Code: 24609

FY 2014-15

$17,797,898

$28,711,556

$28,476,737

6.00

$0

$0

0.00

R

NR

$0

$0

0.00

R

NR

$0

$0

0.00

R

NR

Receipts:

NC Green Business Fund

Energy Research Grants

Subtotal Legislative Changes

$0

$0

R

NR

$0

$0

R

NR

$0

$0

R

NR

$0

$0

R

NR

$0

$0

R

NR

$0

$0

R

NR

Commerce

Page H 20

Senate Committee on Appropriations/Base Budget

Revised Total Requirements

Revised Total Receipts

Change in Fund Balance

Total Positions

Unappropriated Balance Remaining

FY 2013-14

$29,026,883

$28,476,737

($550,146)

6.00

$17,797,898

FY 2014-15

$28,711,556

$28,476,737

($234,819)

6.00

$17,563,079

Commerce

Page H 21

Senate Committee on Appropriations/Base Budget

Commerce- Special, Unbudgeted

Beginning Unreserved Fund Balance

Recommended Budget

Requirements

Receipts

Positions

Legislative Changes

Requirements:

International Trade Show

Transfers the cash balance to Commerce's

Administration Division to offset operating expenses.

Closes fund 24610 - 2431.

Subtotal Legislative Changes

FY 2013-14

$698,929

$66,100

$66,100

0.00

$0

$17,200

0.00

R

NR

$0

$17,200

0.00

R

NR

Budget Code: 24610

FY 2014-15

$681,729

$66,100

$66,100

0.00

$0

$0

0.00

R

NR

$0

$0

0.00

R

NR

Receipts:

International Trade Show

Subtotal Legislative Changes

$0

$0

R

NR

$0

$0

R

NR

$0

$0

R

NR

$0

$0

R

NR

Commerce

Page H 22

Senate Committee on Appropriations/Base Budget

Revised Total Requirements

Revised Total Receipts

Change in Fund Balance

Total Positions

Unappropriated Balance Remaining

FY 2013-14

$83,300

$66,100

($17,200)

0.00

$681,729

FY 2014-15

$66,100

$66,100

$0

0.00

$681,729

Commerce

Page H 23

[This page intentionally blank.]

JUSTICE

&

PUBLIC SAFETY

Section I

[This page intentionally blank.]

Senate Subcommittee on Justice and Public Safety

Public Safety

GENERAL FUND

FY 13-14

$1,722,061,784

FY 14-15

$1,732,859,184

Recommended Continuation Budget

Legislative Changes

A. Department-wide

1

Consolidation Efficiencies

Allows the Department to identify additional savings resulting from the consolidation of the Departments of Crime Control and Public Safety,

Juvenile Justice, and Adult Correction that occurred January 1, 2012.

2

Vacant Positions

Eliminates 15 vacant positions. No district level State Highway Patrol

(SHP) Troopers, custody and security officers or probation and parole positions in the Division of Adult Correction, or court counselors in the

Division of Juvenile Justice may be eliminated as a result of this reduction.

B. Administration

3

Secretary's Office Positions

Eliminates two vacant management positions in the Secretary's Office.

($5,000,000)

($952,582)

-15.00

R

R

($292,384)

R

-2.00

($579,244)

R

4

Operating Budget

Reduces various line items from the operating budget for the Division of Administration.

C. Law Enforcement

5

DPS Law Enforcement Health Benefits

Pays employer health premiums and contributions for sworn law enforcement officers from funds available in the Separate Insurance

Benefits Plan.

6

ALE Position Reduction

Eliminates three positions in Alcohol Law Enforcement (ALE) administration:

Total

Position Title Position Cost

60084333 ALE Assistant Director $116,774

60084297 Asst. Special Agent in Charge $ 84,963

60084287 Accreditation Manager $ 62,863

7

ALE Permit Inspection Function

Transfers responsibility for permit inspections from ALE to the

Alcoholic Beverage Control (ABC) Commission.

($16,510,611)

NR

($264,600)

-3.00

($1,900,000)

-29.00

R

R

($5,000,000)

R

($952,582)

-15.00

R

($292,384)

R

-2.00

($579,244)

R

($16,510,611)

NR

($264,600)

-3.00

R

($1,900,000)

-29.00

R

Public Safety

Page I 1

Senate Subcommittee on Justice and Public Safety

FY 13-14

8

Butner Public Safety

Eliminates the State grant to the Butner Public Safety Authority. The

Authority can receive State funds through the State Fire Protection

Grant Fund. $100,000 is appropriated in the General Government

Section of the budget to expand the program to Butner without reducing allotments to other fire departments.

9

SCP Positions

Provides funding for four telecommunicator positions and four public safety officer positions in the State Capitol Police.

10

SHP Vacant Trooper Positions

Budgets all vacant trooper positions (including vacant Senior Trooper and vacant Master Trooper positions) at the starting pay for troopers

($35,700 plus benefits). Currently, 69 vacant trooper positions cannot be filled because they are budgeted at $0.10 as a result of reductions taken in FY 2011-12. This appropriation restores that reduction, increasing the total number of troopers statewide.

11

SHP Fuel

Provides funding to increase the budget for State Highway Patrol fuel to actual expenditure levels.

12

SHP Aircards

Provides funds to support air card connectivity for mobile data computers in trooper vehicles. The air card allows troopers to have mobile access to multiple criminal, court, and DMV databases.

13

SHP Mobile Computers

Provides funds to replace outdated or failing mobile data computer equipment, including computers, printers, and docking stations, for

State Highway Patrol troopers' vehicles.

14

SHP Communication Center Consolidation

Consolidates communication centers from three troops. Transfers eighteen telecommunicator positions to other troops and provides funding in the first year for equipment required to expand communication operations in two of the remaining troops.

Consolidation of communication centers should be completed no later than October 1, 2013.

15

SHP Aviation

Consolidates the Highway Patrol Aviation section from four hangars to two.

16

SHP Consolidation of Technology Services Functions

Eliminates six civilian information technology related positions in the

Highway Patrol. Consolidation of all law enforcement information technology functions in the Department of Public Safety should result in additional reductions in the future.

17

SHP Warehouse Leases

Consolidates three State Highway Patrol warehouses into other existing Department of Public Safety warehouse space.

($1,751,118)

$336,122

$45,751

8.00

$2,147,463

$3,677,292

$626,000

$1,050,640

R

R

NR

R

R

R

NR

($1,141,480)

-30.00

R

($901,900)

-9.00

($506,517)

-6.00

($191,474)

R

R

R

Public Safety

FY 14-15

($1,751,118)

R

$336,122

R

8.00

$2,147,463

R

$3,677,292

R

$626,000

R

($1,662,707)

-30.00

R

($901,900)

R

-9.00

($506,517)

R

-6.00

($191,474)

R

Page I 2

Senate Subcommittee on Justice and Public Safety

FY 13-14

18

SHP Administration

Eliminates various positions in State Highway Patrol administration.

Positions that are eliminated should all be administrative and/or management positions. No district level positions should be eliminated as a result of this reduction.

19

SHP Accreditation Unit

Eliminates two sworn law enforcement and three civilian positions responsible for overseeing the State Highway Patrol's accreditation process.

($700,000)

($402,978)

-5.00

R

R

Total

Position Title Position Cost

60084955 Quality Accreditation Unit Mgr. $104,417

60086601 Policy & Procedure Manager $ 87,923

60085343 Accreditation Manager $ 87,923

60086920 Civilian Accreditation Mgr. $ 74,689

60084612 Tech Support Technician $ 48,026

20

SHP Support Positions

Eliminates nine vacant civilian positions that provide support services to various units within the Highway Patrol.

21

SHP Traffic Safety Information Officers

Eliminates the Traffic Safety Information Officer position in each

Highway Patrol Troop.

22

VIPER Operations and Maintenance

Provides additional funding for the operation and maintenance of the

Voice Interoperability Plan for Emergency Responders (VIPER) system.

23

SHP VIPER Technology Upgrade

Provides $25 million nonrecurring in FY 2013-14 to upgrade the VIPER system to P-25 technology.

24

SHP VIPER Tower Construction

Provides $7 million recurring in FY 2014-15 to complete construction of 29 State-funded towers for the VIPER system. Tower construction should be complete in FY 2016-17, at which time this appropriation will be reduced to $2 million recurring to fully fund operation and maintenance of the completed VIPER system.

($772,853)

-9.00

($527,288)

-8.00

$2,825,471

13.00

R

R

R

$25,000,000

NR

FY 14-15

($700,000)

R

($402,978)

-5.00

R

($772,853)

R

-9.00

($527,288)

R

-8.00

$2,825,471

$580,000

13.00

R

NR

$7,000,000

R

Public Safety

Page I 3

Senate Subcommittee on Justice and Public Safety

FY 13-14

25

State Bureau of Investigation

Transfers the State Bureau of Investigation to the Division of Law

Enforcement in the Department of Public Safety.

Removes the following from the SBI and places them under the direct control of the Attorney General:

- NC State Crime Laboratory ($13.7 million, 182.80 FTE)

- Public Corruption Investigation Unit ($393,723, 5.00 FTE)

- DOJ Information Technology Positions ($1.1 million, 16.00 FTE)

Consolidation of all of the State's major law enforcement agencies and criminal information sections under the Department of Public Safety should result in additional savings in the future. A reduction of $2 million in the second year reflects these anticipated savings.

D. National Guard

26

Armories Upgrade

Provides funds to address maintenance needs at the State's 93

National Guard Readiness Centers. Additional funds are appropriated in the Capital Section for repair and renovation of the armories.

27

Tarheel ChalleNGe

Transfers funding from the Department of Public Instruction (DPI) for

Tarheel ChalleNGe, a National Guard program for at-risk youth, back to the Department of Public Safety (DPS) budget. These funds were transferred to DPI in 2009, but federal matching funds are currently receipted to DPS. This transfer consolidates all of the funding for

Tarheel ChalleNGe in one place. A corresponding reduction can be found in the Education Section of the budget.

E. Adult Correction - General

28

Purchased Services

Reduces the Purchased Services fund to FY 2011-12 actual expenditures.

29

Budget Reserve Restoration

Eliminates the partial restoration of a nonrecurring budget reserve reduction from FY 2011-12 that reflected a lower prison population.

F. Adult Correction - Prisons

30

Education Supplies

Reduces funding for prison substance abuse supplies to reflect actual expenditures, leaving $100,557.

31

Inmate Health Care

Reduces Inmate Health Care funding to account for savings from completion of the new hospitals at Central Prison and NC Correctional

Institution for Women, increased Medicaid reimbursements for treatment of qualified inmates, and the payment cap on billed charges to hospital and other providers.

$32,954,964

423.00

$850,000

$767,719

($6,000,000)

($36,000)

($9,000,000)

R

R

R

R

R

R

Public Safety

FY 14-15

$30,954,964

423.00

R

$850,000

R

$767,719

R

($6,000,000)

R

($6,554,741)

NR

($36,000)

R

($9,000,000)

R

Page I 4

Senate Subcommittee on Justice and Public Safety

FY 13-14

32

Morrison CI Electronic Intrusion

Eliminates tower positions effective April 1, 2014 at Morrison

Correctional Institution through the use of an electronic intrusion system that provides increased security.

33

Bladen Correctional Center

Closes Bladen Correctional Center, a 172-bed minimum custody facility, effective October 1, 2013. The closure is part of a reduction in prison capacity to reflect the declining prison population.

34

Duplin Correctional Center

Closes Duplin Correctional Center, a 328-bed minimum custody facility, effective August 1, 2013. The closure is part of a reduction in prison capacity to reflect the declining prison population.

35

Robeson Correctional Center

Closes Robeson Correctional Center, a 276-bed minimum custody facility, effective August 1, 2013. The closure is part of a reduction in prison capacity to reflect the declining prison population.

36

Wayne Correctional Center

Closes Wayne Correctional Center, a 428-bed medium custody facility, effective February 1, 2014. The closure is part of a reduction in prison capacity to reflect the declining prison population.

37

Western Youth Institution

Closes the medium and close custody beds at Western Youth

Institution, effective January 1, 2014. The closure is part of a reduction in prison capacity to reflect the declining prison population.

38

Vacant Positions

Eliminates vacant positions throughout the Division of Adult

Correction. No vacant positions shall be eliminated within 50 miles of

Western Youth Institution.

39

Buncombe Correctional Center

Closes Buncombe Correctional Center, a 182-bed minimum custody facility, effective October 1, 2013. The closure is part of a reduction in prison capacity to reflect the declining prison population.

40

Orange Correctional Center

Closes Orange Correctional Center, a 200-bed minimum custody facility, effective October 1, 2013. The closure is part of a reduction in prison capacity to reflect the declining prison population.

($24,202)

-12.00

($1,969,779)

-52.00

($3,759,729)

-80.00

($3,625,960)

-80.00

($3,014,444)

-150.00

($7,027,307)

-288.00

($825,902)

($1,802,569)

-48.00

($2,739,773)

-73.00

R

R

R

R

R

R

R

R

R

FY 14-15

($404,911)

-12.00

R

($2,499,168)

-52.00

R

($4,101,522)

-80.00

R

($3,955,592)

-80.00

R

($7,234,666)

-150.00

R

($14,660,327)

R

-288.00

($1,651,805)

R

($2,403,425)

-48.00

R

($3,653,031)

-73.00

R

Public Safety

Page I 5

Senate Subcommittee on Justice and Public Safety

FY 13-14

41

Statewide Misdemeanant Confinement Fund Admin

Reallocates the Statewide Misdemeanant Confinement Fund administration allotment to reduce the NC Sheriffs' Association percentage from 10% to 5% and to increase the percentage going to the Department of Public Safety from 1% to 5%. Budgets an additional $750,000 in receipts in the Division of Prisons' budget.

Since the program's inception in August 2011, $39.5 million has been collected in the Fund. The Sheriff's Association has received $3.9 million and the Division of Adult Correction has received $394,881 to administer the program.

42

Statewide Misdemeanant Confinement Fund

Transfers funds from the Statewide Misdemeanant Confinement Fund

(Special Fund code 24500-2225) to the Department of Public Safety

(General Fund budget code 14550) for the Division of Adult

Correction. As of March 31, 2013, this fund has a balance of $20 million.

43

Tabor Correctional Institution Operating Reserve

Reduces the operating reserve for the new minimum-custody dorm at

Tabor Correctional Institution to reflect a delay in completion of construction.

G. Adult Correction - Community Corrections

44

TECS Reduction

Reduces the appropriation for Treatment for Effective Community

Supervision (TECS) to adjust for delayed community programming start dates in some counties. The total funding for this program is

$12.4 million after this non-recurring reduction.

45

Parole Commission

Increases funding for the Parole Commission in order to adequately manage the expected caseload of 12,500 to 15,000 offender records that will require review following implementation of the Justice

Reinvestment Act. Total funding for this program will be $2.3 million.

46

Probation and Parole Positions

Funds 175 new Probation Officer positions to adequately manage the increased caseloads created by the requirements of the Justice

Reinvestment Act. In addition, provides funding for the reallocation of surveillance officers to probation officer positions.

H. Juvenile Justice

47

Executive Management Staff

Eliminates three full-time executive positions in the Division of Juvenile

Justice. These positions are currently filled.

Total

Position Title Position Cost

60000972 Deputy Comm Courts and Programs $139,635

60001044 Deputy Comm Facilities $129,992

60000891 Director of Detention Services $ 93,556

($750,000)

($7,700,000)

NR

($529,424)

($1,500,000)

NR

$374,497

$49,893

8.00

$5,761,119

$465,150

75.00

($363,183)

-3.00

R

NR

R

NR

R

NR

R

Public Safety

FY 14-15

($750,000)

R

$374,497

8.00

R

$12,120,219

$660,200

175.00

R

NR

($363,183)

-3.00

R

Page I 6

Senate Subcommittee on Justice and Public Safety

FY 13-14

($100,000)

R

48

YDC Operating Reduction

Reduces the total operating budget for Youth Development Centers.

49

Lenoir Youth Development Center

Closes Lenoir Youth Development Center (YDC) and eliminates 71 fulltime equivalent (FTE) positions. This facility shall be closed by

October 1, 2013.

50

Richmond Detention Center

Closes Richmond Detention Center and eliminates 7.4 full-time equivalent (FTE) positions.

51

Buncombe Detention Center

Closes Buncombe Detention Center and eliminates 19.3 full-time equivalent (FTE) positions.

52

New Western Multipurpose Group Home

Appropriates funds for a new multipurpose group home in the Western district to provide youth services that may be needed following the closure of Buncombe Detention Center.

53

Juvenile Justice Community Programs

Provides funding to the Division of Juvenile Justice for the expansion of contracted services for adjudicated juveniles.

54

Educational Services Transfer to DPI

Transfers responsibility and funding for teachers in juvenile facilities to the Department of Public Instruction effective July 1, 2014.

55

Educational Administration Positions

Eliminates three educational administration positions in the Division of

Juvenile Justice that will no longer be required when the responsibility for education at juvenile facilities is transferred to DPI in FY 2014-15.

Total

Position Title Position Cost

60001388 YDC Regional Principal $ 92,480

60001611 Detention Ctr Regional Principal $ 81,786

60001945 YDC Assistant Principal $ 94,179

($3,701,387)

-71.00

R

($407,074)

-7.40

($1,250,786)

-19.30

$650,000

$1,500,000

R

R

R

R

Total Legislative Changes

Total Position Changes

Revised Budget

FY 14-15

($100,000)

R

($3,701,387)

-71.00

R

($407,074)

R

-7.40

($1,250,786)

R

-19.30

$650,000

R

$1,500,000

R

($3,828,824)

R

-62.00

($268,445)

R

-3.00

($9,811,866)

$371,399

-472.70

R

NR

$1,712,621,317

($18,846,044)

($21,825,152)

-437.70

R

NR

$1,692,187,988

Public Safety

Page I 7

Senate Subcommittee on Justice and Public Safety

Justice

GENERAL FUND

FY 13-14

$77,773,575

FY 14-15

$80,773,575

Recommended Continuation Budget

Legislative Changes

A. Department-wide

56

Vacant Position Reduction

Eliminates vacant positions throughout the Department of Justice. No vacant positions are to be eliminated from the NC State Crime

Laboratory.

B. Legal Services

57

Tobacco Attorney and Paralegal Positions

Transitions one attorney position (60010420) and two paralegal positions (60010422 and 60010421) from receipt support to General

Fund support. These positions were previously supported by receipts from Golden L.E.A.F. and the Tobacco Trust Fund. Another receipt supported attorney position that was vacant (60010423) is eliminated.

C. State Bureau of Investigation (SBI)

58

Transfer to DPS

Transfers the State Bureau of Investigation to the Division of Law

Enforcement in the Department of Public Safety.

Removes the following from the SBI and places them under the direct control of the Attorney General:

- NC State Crime Laboratory ($13.7 million , 182.80 FTE)

- Public Corruption Investigation Unit ($393,723, 5.00 FTE)

- DOJ Information Technology Positions ($1.1 million, 16.00 FTE)

Consolidation of all of the State's major law enforcement agencies and criminal information sections under the Department of Public Safety should result in additional savings in the future.

D. NC State Crime Laboratory

59

Toxicology Positions

Provides funding for 19 new toxicology positions in the Crime Lab to serve the western part of the State. The Crime Lab is directed to work with the Office of State Personnel to create a new apprentice level analyst position at a pay grade lower than that of Forensic Analyst I for trainee analysts.

($947,698)

-13.00

$244,661

3.00

($32,954,964)

-423.00

$1,500,000

$111,424

19.00

R

R

R

R

NR

($947,698)

-13.00

R

$244,661

3.00

R

($32,954,964)

R

-423.00

$1,500,000

19.00

R

Justice

Page I 8

Senate Subcommittee on Justice and Public Safety

60

Crime Lab Equipment

Provides additional funds for equipment to expand the Crime Lab's ability to provide toxicology services in the western part of the State.

61

Toxicology Outsourcing Funds

Provides funds for the outsourcing of toxicology cases to private lab service providers. Priority should be given to cases originating in the western part of the State to reduce the need for Crime Lab analysts from Raleigh and Greensboro to travel to those areas. If the

Department determines that outsourcing of toxicology cases is not feasible due to legal concerns involving analyst testimony, these funds may be redirected to increase toxicology analysis capabilities within the Crime Lab.

E. Training and Standards

62

Sheriffs' Education and Training Standards

Appropriates funds to support the Sheriffs' Education and Training

Standards Commission. Section 16C.6 transfers funds from the

Statewide Misdemeanant Confinement Fund to the General Fund for this purpose. This Commission is currently supported by a portion of the $2 court fee designated for law enforcement training. Those funds will now wholly support the Criminal Justice Education and Training

Standards Commission. These changes increase the funds available to DOJ to support both Standards Commissions.

63

Criminal Justice Education and Training

Section 18B.18 changes the allocation of the $2 court fee designated for law enforcement training and standards by directing that all of the funds go to the Criminal Justice Education and Training Standards

Commission (CJTS). Previously, those funds were split between the

Sheriffs' Standards Commission and CJTS. The appropriation of funds to support Sheriffs' Standards in the previous item allows for the redirection of all of the $2 court fee to CJTS, increasing the amount available to DOJ for the support of both Standards Commissions.

FY 13-14

$750,000

R

$1,000,000

R

Total Legislative Changes

Total Position Changes

Revised Budget

($30,408,001)

$111,424

-414.00

R

NR

$47,476,998

FY 14-15

$1,000,000

NR

$750,000

R

$1,000,000

R

($30,408,001)

$1,000,000

-414.00

R

NR

$51,365,574

Justice

Page I 9

Senate Subcommittee on Justice and Public Safety

Judicial - Indigent Defense

GENERAL FUND

FY 13-14

$114,505,898

FY 14-15

$114,505,898

Recommended Continuation Budget

Legislative Changes

64

Administrative Staff Operations Reduction

Reduces administrative staff through efficiencies gained by increased partnership with the School of Government for training, greater utilization of existing staff in lieu of contracted consultants, and more efficient distribution of workload. One position is being reduced to halftime (Special Counsel Legal Assistant, 60091441). The following three positions are being eliminated:

Total

Position Title Position Cost

60002264 IDS Admin Asst. $44,473

60096765 IDS Research Staff $28,000

60002229 Special Counsel $52,739

65

Prisoner Legal Services Terminals

Eliminates the State contract with Prisoner Legal Services in favor of prison legal terminals provided by the Department of Public Safety.

Section 16C.9 directs the Department of Public Safety to look for an effective and efficient software alternative in prison libraries.

66

Low-Level Misdemeanor Reclassification

Reclassifies low-level misdemeanors that rarely result in incarceration as Class 3 misdemeanors or infractions and modifies the sentencing structure for Class 3 misdemeanors so that the first three charges are fineable offenses. With no possibility of incarceration, these offenses do not require legal counsel.

67

Additional Private Assigned Counsel Funds

Allocates nonrecurring funds to pay private counsel assigned to represent indigent defendants, reducing a budget shortfall that has accumulated over several years. This budget shortfall creates a hardship for small business legal firms whose payments are delayed when State funding is exhausted before the end of the fiscal year.

($258,634)

-3.25

($2,890,000)

R

($2,000,000)

$5,000,000

R

R

NR

Total Legislative Changes

Total Position Changes

Revised Budget

($5,148,634)

$5,000,000

-3.25

R

NR

$114,357,264

Judicial - Indigent Defense

($258,634)

-3.25

R

($2,890,000)

R

($2,000,000)

R

($5,148,634)

R

-3.25

$109,357,264

Page I 10

Senate Subcommittee on Justice and Public Safety

Judicial

GENERAL FUND

FY 13-14

$458,416,996

FY 14-15

$458,416,996

Recommended Continuation Budget

Legislative Changes

68

Magistrates Workload Formula

Restores 39.5 magistrate positions to fund a minimum number of four magistrates per county.

69

State Court Reporters Reduction

Reduces the number of Court Reporters by half and redirects that half of the funds saved be used for contracts with private vendors. This change leaves $5.8 million for court reporter functions in each year of the 2013-15 biennium.

70

Audio Equipment for Courts

Provides funding for audio equipment in courtrooms in lieu of an assigned court reporter.

71

Special Superior Court Judges Elimination

Eliminates 12 Special Superior Court Judges who are not assigned to

Business Court.

72

Administrative Budget Reduction

Reduces funding for the Administrative Office of the Courts'

Administration Division. This reduction will not impact any county or district level court personnel. This changes leaves total funding of

$46.3 million for the Division in each year of the 2013-15 biennium.

73

Funds for Interpreters, Witnesses, and Juries

Increases the budget for interpreters, expert witnesses, and jury fees as necessary to operate the State court system. Funds for interpreters would increase by $342,821 over the current budget of $1.0 million.

Funds for expert witnesses would increase by $203,458 over the current budget of $422,498. Funds for jury fees would increase by

$462,977 over the current budget of $3.2 million.

74

Electronic Court Information Pilot

Provides funds for a pilot project in Pender County to create a paperless courtroom. These funds will expand the availability and use of e-filing and related information technology.

75

Local Hospital Toxicology Analysis

Establishes a fund to be administered by the Conference of District

Attorneys to allow district attorneys to use local hospitals for toxicology services in DWI cases.

$1,795,776

39.50

($1,938,939)

-52.00

$1,000,000

R

R

($2,156,347)

-12.00

($3,000,000)

R

R

$1,009,256

$500,000

$1,250,000

NR

R

NR

NR

$1,795,776

R

39.50

($1,938,939)

R

-52.00

($2,156,347)

R

-12.00

($3,000,000)

R

$1,009,256

$500,000

$750,000

R

NR

NR

Judicial

Page I 11

Senate Subcommittee on Justice and Public Safety

Total Legislative Changes

Total Position Changes

Revised Budget

FY 13-14 FY 14-15

($4,290,254)

$2,750,000

-24.50

R

NR

$456,876,742

($4,290,254)

$1,250,000

-24.50

R

NR

$455,376,742

Judicial

Page I 12

Subcommittee on Justice and Public Safety

DPS Special Fund (Statewide Misdemeanant Confi

Budget Code: 24550

Beginning Unreserved Fund Balance

Recommended Budget

Requirements

Receipts

Positions

Legislative Changes

Requirements:

Statewide Misdemeanant Confinement Fund

Transfers $7.7 million nonrecurring to the

Department of Public Safety (General Fund budget code 14550) for the Division of Adult Correction.

Sheriffs' Education and Training Standards

Transfers $1 million recurring to the General Fund to support the Sheriffs' Education and Training

Standards Commission.

Continuation Budget Correction

Corrects a $5 million nonrecurring transfer to the

Division of Adult Correction for the Treatment of

Effective Community Superivision that was inadvertently omitted from the Governor's

Continuation Budget.

Subtotal Legislative Changes

FY 2013-14

$20,085,259

$0

$0

0.00

$7,700,000

0.00

R

NR

$1,000,000

$0

0.00

R

NR

$0

$5,000,000

0.00

R

NR

$1,000,000

$12,700,000

0.00

R

NR

FY 2014-15

$6,385,259

$0

$0

0.00

$0

0.00

R

NR

$1,000,000

$0

0.00

R

NR

$0

$0

0.00

R

NR

$1,000,000

$0

0.00

R

NR

Receipts:

Statewide Misdemeanant Confinement Fund

$0

$0

R

NR

$0

$0

R

NR

Public Safety Page I 13

Subcommittee on Justice and Public Safety

Subtotal Legislative Changes

Revised Total Requirements

Revised Total Receipts

Change in Fund Balance

Total Positions

Unappropriated Balance Remaining

FY 2013-14

$0

$0

R

NR

$13,700,000

$0

($13,700,000)

0.00

$6,385,259

FY 2014-15

$0

$0

R

NR

$1,000,000

$0

($1,000,000)

0.00

$5,385,259

Public Safety Page I 14

GENERAL

GOVERNMENT

Section J

[This page intentionally blank.]

Senate Subcommittee on General Government

( 1.0) Cultural Resources

Recommended Continuation Budget

Legislative Changes

1100 - Administration

1

Strategic Marketing Program

Provides funding to create a department-wide marketing strategy. The

Department shall coordinate these efforts with the Department of

Commerce.

1230 - Archives and Records

2

Director of Division of Historical Resources

Eliminates one vacant supervisor position (60083302). The salary is

$93,523 and benefits are $25,657.

1241 - Historic Sites

3

Savings at Historic Sites

Achieves savings at historic sites by implementing a policy of standard operating days, reducing contracts, and securing revenue enhancements. There will be a reduction of one position: Building and

Environmental Technician (600083487).

4

Historic Sites Partnerships

Reduces State appropriations for operations and eliminates a position in FY 2013-14 and another position in FY 2014-15 for the following historic sites: Aycock Birthplace, Polk Memorial, Vance Birthplace, and House in the Horseshoe. The appropriations for these sites are reduced by 25% in FY 2013-14 and 50% in FY 2014-15 in anticipation of increased local and private participation. The total State appropriations remaining for these sites is $170,908.

1242 - Tryon Palace Historic Sites and Gardens

5

Tryon Palace

Provides nonrecurring funding for Tryon Palace for FY 2013-14 and reduces recurring funds, leaving $2,475,196 in State appropriations.

The nonrecurring funding of $476,725 appropriated for Tryon Palace must be matched dollar for dollar in order to receive the entire State appropriation for FY 2013-14.

GENERAL FUND

FY 13-14

$63,626,477

FY 14-15

$63,629,480

$53,000

NR

($119,190)

-1.00

R

($152,190)

-1.00

R

($85,454)

-1.00

R

($156,725)

$476,725

R

NR

($119,190)

-1.00

R

($152,190)

-1.00

R

($170,908)

-2.00

R

($156,725)

$156,725

R

NR

( 1.0) Cultural Resources

Page J 1

Senate Subcommittee on General Government

1320 - Museum of Art

6

Museum of Art Operations

Reduces the recurring State appropriations for the Museum of Art and adds nonrecurring funds for FY 2013-14. If private funds do not replace the State appropriations, positions may be eliminated. The remaining State appropriations total $5,329,866.

1330 - NC Arts Council

7

NC Arts Council and Other Grants

Reduces funds for the Grassroots grants program, the grant to the

Lost Colony, and the Basic grant program. The current State appropriations for the Arts Council including its grants program totals

$7.4 million, after these reductions the total budget will be $6.7 million, of which $5 million is grant funding.

8

Administration

Reduces State appropriations available for administration of the Arts

Council activities; remaining funding will be $1,325,049. Positions may be eliminated in this reduction.

Agency Wide

9

Budget Gaps

Provides non-recurring funds for workers' compensation and disability claims and corrects underfunded budget line items in Archives and

Records and Historic Preservation.

Workers' Compensation and Disability Claims $116,629

Account Code: 531631

Archives and Records and Historic Preservation $95,419

FY 13-14

($450,000)

$279,806

R

NR

($500,000)

R

($250,000)

R

$212,048

NR

Total Legislative Changes

Total Position Changes

Revised Budget

($1,713,559)

$1,021,579

-3.00

R

NR

$62,934,497

FY 14-15

($730,383)

R

($780,380)

R

($250,000)

R

($2,359,776)

$156,725

-4.00

R

NR

$61,426,429

( 1.0) Cultural Resources

Page J 2

Senate Subcommittee on General Government

( 2.0) Cultural Resources - Roanoke Island

Commission

Recommended Continuation Budget

Legislative Changes

2584 - Roanoke Island Commission

10

Roanoke Island Commission

Eliminates recurring funds for the Roanoke Island Festival Park.

Total Legislative Changes

Total Position Changes

Revised Budget

GENERAL FUND

FY 13-14

$1,058,757

FY 14-15

$1,058,757

($1,058,757)

R

($1,058,757)

R

($1,058,757)

R

($1,058,757)

R

$0 $0

( 2.0) Cultural Resources - Roanoke Island Commission

Page J 3

Senate Subcommittee on General Government

( 3.0) Insurance

Recommended Continuation Budget

Legislative Changes

1100 - Across Divisions

11

Position Eliminations

Eliminates nine positions across the Department of Insurance.

1500 - Fire Marshal

12

Fire Protection Grants

Provides additional funds for the State Fire Protection Grant Fund.

These funds will be used to provide fire protection for the State-owned facilities located in Butner.

GENERAL FUND

FY 13-14

$38,454,593

FY 14-15

$38,464,213

($560,589)

-9.00

R

$100,000

R

($560,589)

-9.00

R

$100,000

R

($460,589)

R

($460,589)

R

Total Legislative Changes

Total Position Changes

Revised Budget

-9.00

$37,994,004

-9.00

$38,003,624

( 3.0) Insurance

Page J 4

Senate Subcommittee on General Government

( 4.0) Insurance - Volunteer Safety Workers'

Compensation Fund

GENERAL FUND

FY 13-14

$2,623,654

FY 14-15

$2,623,654

Recommended Continuation Budget

Legislative Changes

Volunteer Safety Workers' Compensation Fund

13

Fund

Eliminates recurring State appropriations. This funds for the Volunteer

Safety Workers' Compensation Fund will come from G.S. 105-

228.5(d)(3). Up to 20% of the tax shall be deposited into this Fund to continue financial support.

($2,623,654)

R

($2,623,654)

R

Total Legislative Changes

Total Position Changes

Revised Budget $0

($2,623,654)

R

($2,623,654)

R

$0

( 4.0) Insurance - Volunteer Safety Workers' Compensation Fund

Page J 5

Senate Subcommittee on General Government

( 5.0) State Board of Elections

GENERAL FUND

FY 13-14

$5,213,445

FY 14-15

$5,213,445

Recommended Continuation Budget

Legislative Changes

1100 - Administration

14

Voter Photo Identification Requirement

Appropriates funds for the implementation of a voter identification program. These funds will be used for new staff for the State Board of

Elections and for other activities related to implementation of the new requirement.

15

Operating Budget

Reduces the operating budget across all divisions.

$1,505,900

10.00

NR

($20,313)

R

$828,400

10.00

NR

($20,313)

R

Total Legislative Changes

Total Position Changes

Revised Budget

($20,313)

$1,505,900

10.00

R

NR

$6,699,032

($20,313)

$828,400

10.00

R

NR

$6,021,532

( 5.0) State Board of Elections

Page J 6

Senate Subcommittee on General Government

( 6.0) General Assembly

Recommended Continuation Budget

Legislative Changes

1100 - Administration

16

Furniture - Across Divisions

Reduces the funds available for purchase of furniture for FY 2014-15.

17

Management Flexibility Reduction - Agency Wide

Creates a management flexibility reduction of $153,035 for the

General Assembly.

18

Operating Budgets - All Divisions

Reduces operating budgets to actual FY 2011-12 expenditures.

19

Rental Parking Space Budget

Reduces the rental parking space budget due to anticipated revenues to be generated from charging temporary staff a monthly parking fee.

20

Vacant Position Eliminations - Administrative Division

Eliminates three positions that have been vacant over 180 days:

1.0 FTE Bill Room Supervisor (P30118)

0.6 FTE Housekeeper (P30549)

1.0 FTE Food Services Assistant I (P30615A)

21

School of Government

Eliminates funds for the School of Government contract.

GENERAL FUND

FY 13-14

$52,845,390

FY 14-15

$52,845,390

($153,035)

R

($120,504)

-2.60

R

($185,000)

R

($35,000)

NR

($153,035)

R

($31,500)

NR

($30,000)

R

($120,504)

-2.60

R

($185,000)

R

1213 - Research Division

22

Vacant Position

Eliminates one vacant positions that has been vacant for approximately 150 days:

1.0 FTE Senior Legislative Secretary (P30343)

House and Senate

23

Subsistence

Reduces the subsistence budget for FY 2014-15 based on the assumption that the long session end date of mid-July.

24

Temporary Wages

Reduces funding available for floaters during sessions.

($40,960)

-1.00

R

($422,905)

NR

($40,960)

-1.00

R

($123,760)

NR

($640,864)

NR

( 6.0) General Assembly

Page J 7

Senate Subcommittee on General Government

House and Senate

25

Committee Reserves

Reduces funds available for committee activities during FY 2013-14.

FY 13-14

Total Legislative Changes

Total Position Changes

Revised Budget

FY 14-15

($473,703)

NR

($499,499)

($896,608)

-3.60

R

NR

$51,449,283

($529,499)

($831,124)

-3.60

R

NR

$51,484,767

( 6.0) General Assembly

Page J 8

Senate Subcommittee on General Government

( 7.0) Governor

Recommended Continuation Budget

Legislative Changes

26

Savings

Reduces funds to achieve savings through reducing non-essential dues and memberships by $369,693 and the personnel budget by

$50,000.

Total Legislative Changes

Total Position Changes

Revised Budget

GENERAL FUND

FY 13-14

$5,539,743

FY 14-15

$5,541,825

($419,693)

R

($419,693)

R

($419,693)

R

($419,693)

R

$5,120,050 $5,122,132

( 7.0) Governor

Page J 9

Senate Subcommittee on General Government

( 8.0) State Budget & Management

Recommended Continuation Budget

Legislative Changes

Across Divisions

27

Position Eliminations

Eliminates two vacant positions:

1.0 FTE Grants Assistant (60008975)

1.0 FTE Management Analyst (60008594)

Total Legislative Changes

Total Position Changes

Revised Budget

GENERAL FUND

FY 13-14

$6,951,706

FY 14-15

$7,034,217

($114,634)

-2.00

R

($114,634)

R

-2.00

$6,837,072

($114,634)

-2.00

R

($114,634)

R

-2.00

$6,919,583

( 8.0) State Budget & Management

Page J 10

Senate Subcommittee on General Government

( 9.0) State Budget and Management - Special

GENERAL FUND

FY 13-14

$49,000

FY 14-15

$49,000

Recommended Continuation Budget

Legislative Changes

Grants-in-Aid

28

North Carolina Humanities Council

Eliminates funds for the North Carolina Humanities Council.

29

Grants for Nonprofits

Provides funding to the Office of State Budget and Management for nonprofits including the North Carolina Symphony and The Bridge

Down East.

($49,000)

R

$1,800,000

NR

($49,000)

R

$1,500,000

NR

Total Legislative Changes

Total Position Changes

Revised Budget

($49,000)

$1,800,000

R

NR

$1,800,000

($49,000)

$1,500,000

R

NR

$1,500,000

( 9.0) State Budget and Management - Special

Page J 11

Senate Subcommittee on General Government

(10.0) Auditor

Recommended Continuation Budget

Legislative Changes

30

Audit Positions

Funds two auditor positions that will focus on IT security and fraud detection.

Total Legislative Changes

Total Position Changes

Revised Budget

GENERAL FUND

FY 13-14

$11,013,547

FY 14-15

$11,013,547

$203,921

2.00

R

$203,921

R

2.00

$11,217,468

$203,921

2.00

R

$203,921

R

2.00

$11,217,468

(10.0) Auditor

Page J 12

Senate Subcommittee on General Government

(11.0) Revenue

GENERAL FUND

FY 13-14

$80,031,575

FY 14-15

$80,031,575

Recommended Continuation Budget

Legislative Changes

1624 - Income Tax Division

31

Income Tax Division Auditors

Adds two auditor positions in the Income Tax Division to help with backlogged cases. Backlogged cases are the result of requests for reviews of disputed audits.

1627 - Sales and Use Tax

32

Sales and Use Tax Division Auditor

Adds one auditor position to the Sales and Use Tax Division to help with backlogged cases. Backlogged cases are the result of requests for review of disputed audits.

Agency Wide

33

Funding for Tax Information Management System (TIMS)

Uses receipts from prior project phases to continue the implementation of TIMS. Revenues equaling $8.9 million generated in prior years will support the internal costs of implementation.

34

Support for Tax Law Changes

Provides funds to the Department to pay for staffing level increases and other costs associated with changes in tax law. This reserve is contingent on the passage of the Senate Tax Reform package.

$190,027

$12,630

2.00

$95,483

$7,030

1.00

$5,000,000

R

NR

R

NR

R

Total Legislative Changes

Total Position Changes

Revised Budget

$5,285,510

$19,660

3.00

R

NR

$85,336,745

$190,027

2.00

R

$95,483

1.00

R

$5,000,000

R

$5,285,510

R

3.00

$85,317,085

(11.0) Revenue

Page J 13

Senate Subcommittee on General Government

(12.0) Secretary of State

Recommended Continuation Budget

Legislative Changes

1230 - Securities Registration

35

Eliminate Vacant Positions in the Securities Registration

Division

Eliminates two vacant positions (60008779 - Administrative Assistant II and 60008777 - Program Assistant IV) in the Securities Registration

Division.

Agency Wide

36

Operations Reductions

Achieves savings throughout the Department by reducing various operating accounts.

GENERAL FUND

FY 13-14

$11,845,185

FY 14-15

$11,845,185

($81,091)

R

-2.00

($148,093)

R

($81,091)

R

-2.00

($148,093)

R

($229,184)

R

($229,184)

R

Total Legislative Changes

Total Position Changes

Revised Budget

-2.00

$11,616,001

-2.00

$11,616,001

(12.0) Secretary of State

Page J 14

Senate Subcommittee on General Government

(13.0) Lieutenant Governor

Recommended Continuation Budget

Legislative Changes

1110 - Administration

37

Support for Office Operations

Adds a Communication Director, Policy Director, and Director of

Constituent Services to the Lieutenant Governor's Office.

Total Legislative Changes

Total Position Changes

Revised Budget

GENERAL FUND

FY 13-14

$444,047

FY 14-15

$444,047

$231,042

$6,000

3.00

R

NR

$231,042

$6,000

3.00

R

NR

$681,089

$231,042

3.00

R

$231,042

R

3.00

$675,089

(13.0) Lieutenant Governor

Page J 15

Senate Subcommittee on General Government

(14.0) State Controller

GENERAL FUND

FY 13-14

$29,279,290

FY 14-15

$29,279,290

Recommended Continuation Budget

Legislative Changes

38

Operating Budget

Reduces various accounts across the office to achieve savings.

39

ITS Charges

Reflects the reduced Information Technology Services (ITS) charges that will result from a new help desk ticketing system.

1000 - Office of State Controller

40

Personnel

Directs the State Controller to reduce the Department's personnel budget by $1,038,599.

($45,000)

($35,000)

R

R

($1,038,599)

R

($1,118,599)

R

Total Legislative Changes

Total Position Changes

Revised Budget $28,160,691

($45,000)

R

($35,000)

R

($1,038,599)

R

($1,118,599)

R

$28,160,691

(14.0) State Controller

Page J 16

Senate Subcommittee on General Government

(15.0) Administration

GENERAL FUND

FY 13-14

$68,316,992

FY 14-15

$68,241,992

Recommended Continuation Budget

Legislative Changes

1411 - Office of State Construction

41

Office of State Construction Receipts

Moves positions at the Office of State Construction back to General

Fund support. In FY 2011-12, nine positions within the Office of State

Construction and 0.85 positions within the Management Information

System Division were placed on receipt support. The receipts were to be from various projects' contingency reserves. The collection of funds from the contingency reserve has been problematic and the receipt source is uncertain. The following positions are to be moved back to General Fund support:

60014580 Engineer

60014582 Engineer

60014588 Engineer

60014589 Mechanical Engineer

60014590 Engineer

60014608 Engineering Technician

60014614 Engineer

60014700 Control System Technician

60089475 Engineer

60014137 Business & Technology Applications Analyst

1421 - Facilities Management Division

42

Public Health Lab/Office of the Chief Medical Examiner Reserve

Provides increased funding for the operation and maintenance of the

Public Health Lab/Office of the Chief Medical Examiner building. The building first received funding in FY 2011-12.

43

Utility Increases

Increases the budget in the utility line item (5322XX) to prepare for an upcoming rate increase to the water and sewer rate and any increase in the electric rate.

1511 - Purchase and Contract Division

44

E-Commerce Reserve

Utilizes funds collected in the E-Commerce Reserve to fund the ongoing operations of the Purchase and Contract Division. The

Reserve is funded by a charge paid on goods purchased through the

State's E-Procurement System.

$924,013

9.85

$254,493

$254,494

R

R

R

($1,218,659)

NR

$924,013

9.85

R

$254,493

R

$254,494

R

($1,476,543)

NR

(15.0) Administration

Page J 17

Senate Subcommittee on General Government

1732 - Displaced Homemakers Program

45

Displaced Homemakers Program Elimination

Eliminates the Displaced Homemakers Program and transfers funds collected from the divorce filing fee to the Domestic Violence Center

Fund. The Domestic Violence Center Fund provides funding related to domestic violence. In FY 2011-12, the Displaced Homemakers

Program Fund received $1.8 million from the fee.

1741 - Human Relations Commission

46

Consolidation

Consolidates staff functions by reducing the Human Relations

Commission by three FTEs.

1761 - Youth Involvement Division

47

Youth Involvement Elimination

Eliminates the Youth Involvement Division and reimburses any related registration fees and grant funds back to the original payee or grantor.

The following positions and benefits are eliminated:

60014061 Administrative Officer II

60014064 Advocacy Program Director

60014065 Administrative Officer II

60014502 Program Assistant IV

60014506 Administrative Secretary III

1771 - Division of Veterans Affairs

48

Grant in Aid Program

Eliminates the grant in aid program to county governments for the provision of veterans' services over a two year period.

49

Veterans Affairs ITS Consolidation

Provides funding to complete the Information Technology Services consolidation for the Division of Veterans Affairs field offices.

1810 - State Ethics Commission

50

Position Funding

Uses receipts from the Highway Fund to fund one new attorney position in the State Ethics Commission.

Attorney II $110,330

51

Position

Eliminates recurring funding for one filled paralegal position

(65012030) in FY 2014-15.

52

Operating Expenses

Achieves savings by reducing various operating accounts.

FY 13-14

($292,390)

-2.00

R

($178,521)

-3.00

R

($526,252)

-5.00

R

($48,082)

R

$115,000

$68,000

R

NR

($22,434)

R

FY 14-15

($292,390)

-2.00

R

($178,521)

-3.00

R

($526,252)

-5.00

R

($138,000)

R

$115,000

R

($55,146)

R

-1.00

($22,434)

R

(15.0) Administration

Page J 18

Senate Subcommittee on General Government

1861 - Commission of Indian Affairs

53

Commission of Indian Affairs Consolidation

Eliminates a vacant Administrative Assistant II position (60013923) at the Commission of Indian Affairs.

1900 - Reserves and Transfers

54

Reserve and Transfer Reduction

Eliminates an unnecessary appropriation within the Reserve and

Transfer budget.

Agency Wide

55

Vacant Position Eliminations

Eliminates four vacant positions and benefits throughout the

Department.

65010199 Human Services Planner/Evaluator IV

65015257 Building Environmental Services Tech

60014593 Engineer Manager

60014715 Processing Assistant IV

Office of State Personnel

56

Operations

Reduces funds from various operating line items including: supplies, office furniture, office equipment, computer/data processing services, travel, and other contracted services within the Office of State

Personnel.

Total Legislative Changes

Total Position Changes

Revised Budget

FY 13-14

($34,444)

-0.75

R

($32,942)

R

($286,119)

-4.00

R

($175,964)

R

($49,148)

($1,150,659)

-4.90

R

NR

$67,117,185

FY 14-15

($34,444)

-0.75

R

($32,942)

R

($286,119)

-4.00

R

($175,964)

R

($194,212)

($1,476,543)

-5.90

R

NR

$66,571,237

(15.0) Administration

Page J 19

Senate Committee on Appropriations/Base Budget

Reserve for E-Commerce Initiative (2514)

Beginning Unreserved Fund Balance

Recommended Budget

Requirements

Receipts

Positions

Legislative Changes

Requirements:

E-Commerce Fund Transfer

Transfers $5,111,585 in FY 2013-14 and $4,000,000 in FY 2014-15 to general availability.

FY 2013-14

$15,318,833

$21,748,642

$19,278,000

0.00

Purchase and Contract Use of E-Commerce

Reserve

Utilizes the E-Commerce Reserve to support operations within the Division of Purchase and

Contract. Funds from the Reserve are to be transferred to the Division (1511) to support recurring operating requirements.

Subtotal Legislative Changes

$0

$5,111,585

0.00

R

NR

$0 R

$1,218,659

0.00

NR

$0

$6,330,244

0.00

R

NR

Budget Code: 24100

FY 2014-15

$6,517,947

$21,748,642

$19,278,000

0.00

$0

$4,000,000

0.00

R

NR

$0 R

$1,476,543

0.00

NR

$0

$5,476,543

0.00

R

NR

Receipts:

E-Commerce Funds Transfer

E-Commerce Funds Transfer

$0

$0

R

NR

$0

$0

R

NR

$0

$0

R

NR

$0

$0

R

NR

Department of Administration

Page J 20

Senate Committee on Appropriations/Base Budget

Subtotal Legislative Changes

Revised Total Requirements

Revised Total Receipts

Change in Fund Balance

Total Positions

Unappropriated Balance Remaining

FY 2013-14

$0

$0

R

NR

$28,078,886

$19,278,000

($8,800,886)

0.00

$6,517,947

FY 2014-15

$0

$0

R

NR

$27,225,185

$19,278,000

($7,947,185)

0.00

($1,429,238)

Department of Administration

Page J 21

Senate Subcommittee on General Government

(16.0) Housing Finance Agency

Recommended Continuation Budget

Legislative Changes

1100 - HOME Match

57

HOME Match Reduction

Reduces the State match for the HOME program by two percent.

1100 Housing Trust Fund

58

Housing Trust Fund

Reduces the General Fund appropriation to the Housing Trust Fund to

$7,000,000 for each year of the FY 2013-15 Fiscal Biennium.

GENERAL FUND

FY 13-14

$9,408,417

FY 14-15

$9,408,417

($32,168)

R

($876,785)

NR

($32,168)

R

($876,785)

NR

Total Legislative Changes

Total Position Changes

Revised Budget

($32,168)

($876,785)

R

NR

$8,499,464

($32,168)

($876,785)

R

NR

$8,499,464

(16.0) Housing Finance Agency

Page J 22

Senate Subcommittee on General Government

(17.0) Office of Administrative Hearings

Recommended Continuation Budget

Legislative Changes

1100 - Civil Rights Division

59

Vacant Civil Rights Position and Contractual Services

Eliminates vacant Civil Rights Investigator position (60088609) in the

Civil Rights Division and reduces contractual services (532199). The position to be eliminated is:

60

Staffing for Hearings Division

Increases staffing for the Hearings Division in order to meet increased case filings. The increased funding will provide for one Administrative

Law Judge and one Law Clerk.

1100 - Hearings Division

61

Case Management System

Provides funding to fully implement the AMCAD case management system. This system will reduce paper filing, clerical entry, and mail processing.

GENERAL FUND

FY 13-14

$4,335,464

FY 14-15

$4,350,431

($82,845)

-1.00

R

$194,687

$10,388

2.00

R

NR

$109,850

$160,000

R

NR

($82,845)

-1.00

R

$194,687

2.00

R

$110,308

$80,000

R

NR

Total Legislative Changes

Total Position Changes

Revised Budget

$221,692

$170,388

1.00

R

NR

$4,727,544

$222,150

$80,000

1.00

R

NR

$4,652,581

(17.0) Office of Administrative Hearings

Page J 23

Senate Subcommittee on General Government

(18.0) Treasurer

GENERAL FUND

FY 13-14

$6,851,090

FY 14-15

$6,851,090

Recommended Continuation Budget

Legislative Changes

1210 - Investment Division

62

Operating Reduction to Investment Division

Eliminates the appropriated position reserve (537199) for Investment

Directors and Chief Investment Officer.

1310 - Local Government Division

63

State and Local Government Automation Project

Authorizes the use of receipts for the State and Local Government

Automation Project. This project is a multi-year effort to replace outdated information systems used by local government units. Project components include infrastructure upgrades, audit package with document management capabilities, modernization of Annual Financial

Information Reporting (AFIR) process, and implementation of audit software. The Automation Project is funded from fees paid by local governments for debt issuance. The first phase of this project was authorized in FY 2011-12. The nonrecurring costs for this project are

$1,048,200 for FY 2013-14. There will be additional recurring costs of

$200,419.

1510 - Financial Operations

64

Reduction to Operating Funds in Financial Operations Division

Reduces transfers to the Information Management Division by $70,000

(538175) to reflect change in the allocation formula, and reduces miscellaneous contractual services (532199) by $25,000. In addition, a vacant Banking Specialist position (60009292) is eliminated. The position has been vacant over three years.

1510 - Financial Operations Division

65

Core Banking System Upgrade

Provides non-recurring funds for the upgrade of the State's Core

Banking System. Appropriations to the Division for this item will not be subject to G.S. 147-68.1.

66

Operation of State Core Banking System

Allows the Financial Operations Division to access funds under management to fund the operations of the upgraded State's Core

Banking System Upgrade. Appropriations to the Division will be reimbursed in accordance with G.S. 147-68.1.

($45,416)

($133,221)

-1.00

$1,111,585

NR

$353,852

R

R

R

($45,416)

R

($133,221)

-1.00

R

$353,852

R

(18.0) Treasurer

Page J 24

Senate Subcommittee on General Government

Total Legislative Changes

Total Position Changes

Revised Budget

FY 13-14

$175,215

$1,111,585

-1.00

R

NR

$8,137,890

FY 14-15

$175,215

R

-1.00

$7,026,305

(18.0) Treasurer

Page J 25

Senate Subcommittee on General Government

(19.0) Fire Rescue Nat Guard Pensions & LDD

Benefits

Recommended Continuation Budget

GENERAL FUND

FY 13-14

$23,179,042

FY 14-15

$23,179,042

Legislative Changes

1412 - Fire Pension

67

General Fund Fire Contribution

Provides the General Fund contribution to the Firemen's Pension

Fund. The payment of these pension benefits is made pursuant to

G.S. 58-86. The amount of the recurring General Fund contribution in the continuation budget is $14,015,734.

1413 - Rescue Squad

68

General Fund Contribution to the Rescue Squad Workers

Pension Fund

Provides the General Fund contribution to the Rescue Squad Workers'

Pension Fund. The payment of these pension benefits is made pursuant to G.S. 58-86. The amount of the recurring General Fund contribution in the continuation budget is $1,430,865. The appropriation is reduced by $820,000 relative to the continuation budget in order to align with the Annual Required Contribution in the

June 30, 2012 actuarial valuation. This reduction appears in a corresponding money item in the Statewide Reserves section of the

Committee Report.

1414 - National Guard

69

General Fund Contribution to National Guard

Provides the General Fund contribution to the National Guard Pension

Fund. The payment of these pension benefits is made pursuant to

G.S. 127A-40. The amount of the recurring General Fund contribution to the fund is $7,007,443.

1432 - Line of Duty Death Benefits

70

General Fund Contribution to Line of Duty Death Benefits

Provides the General Fund contribution to the Line of Duty Death

Benefits Fund. The Fund provides benefits to families of certain public servants who die in the line of duty. The payment of these death benefits is made pursuant to G.S. 143-12A. The amount of the recurring General Fund contribution to the fund is $725,000.

(19.0) Fire Rescue Nat Guard Pensions & LDD Benefits

Page J 26

Senate Subcommittee on General Government

Total Legislative Changes

Total Position Changes

Revised Budget

FY 13-14 FY 14-15

$23,179,042 $23,179,042

(19.0) Fire Rescue Nat Guard Pensions & LDD Benefits

Page J 27

[This page intentionally blank.]

TRANSPORTATION

Section K

[This page intentionally blank.]

Senate Subcommittee on Transportation

Highway Fund

Recommended Continuation Budget

Legislative Changes

Adjustments to Availability

1

Inspection Program Account & Telecommunications Account

Appropriates $10.5 million of accumulated unencumbered fund balance in accordance with the elimination of the Inspection Program

Account and Telecommunications Account upon completion of the

Motor Vehicle Inspection and Law Enforcement System (MILES) information technology project. Projected recurring revenues from the consolidation of the Inspection ($3.00) and Telecommunications

($1.75) electronic authorization fees total $23.6 million in FY 2013-14 and $21.6 million in FY 2014-15.

2

Division of Motor Vehicles Technology Improvement Account

Appropriates $4.55 million of accumulated unencumbered fund balance in accordance with the elimination of the Technology

Improvement Account. Additional recurring revenues to the Highway

Fund total $634,000.

3

Access and Public Service Road Program

Appropriates $3.0 million of accumulated unencumbered fund balance from the Access and Public Service Road Program.

4

Division Small Urban Construction Program

Appropriates $25.0 million of accumulated unencumbered fund balance from the Division Small Urban Construction Program.

5

Contingency Fund

Appropriates $28.0 million of accumulated unencumbered fund balance from the Contingency Fund for maintenance projects.

6

Economic Development Program

Appropriates $3.1 million of accumulated unencumbered fund balance within the Economic Development Program for qualifying projects to be used in FY 2013-14.

7

Shallow Draft Navigation Channel Dredging Fund

Reduces Highway Fund revenue by $2,280,350 in FY 2013-14 and

$2,193,500 in FY 2014-15 to reflect the crediting of one-sixth of one percent (1/6 of 1%) of motor fuel tax revenue to the Shallow Draft

Navigation Channel Dredging Fund established by Section 14.22.

HIGHWAY FUND

FY 13-14

$1,696,197,124

FY 14-15

$1,692,322,459

Highway Fund

Page K 1

Senate Subcommittee on Transportation

FY 13-14

8

Registration Fee for Hybrid/Electric Vehicles

Increases Highway Fund revenue by $1.5 million recurring resulting from the establishment of a $100 surcharge on registration fees for electric vehicles and a $50 surcharge on registration fees for hybridelectric vehicles.

9

Freight Rail & Rail Crossing Safety Improvement Fund

Increases Highway Fund availability to reflect dividend payments issued by the North Carolina Railroad Company during the 2013-15 fiscal biennium. Estimated receipts total $19.2 million in FY 2013-14 and $3.75 million in FY 2014-15.

Administration

10

Facility Security

Appropriates recurring funds to maintain the existing level of contract security at seven DOT buildings, as recommended in the Governor's

Budget. Funds were previously allocated from the year-end credit balance within the Highway Fund for this purpose.

11

Fiscal Section - Appalachian Regional Commission

Appropriates funding for the Department's share of the Appalachian

Regional Commission Assessment, as recommended in the

Governor's Budget. Funds were previously allocated from the Highway

Fund year-end credit balance for this purpose.

12

Occupational Safety and Health (OSHA) Program

Reduces funding for the Occupational Safety and Health (OSHA)

Program, leaving $365,337, as recommended in the Governor's

Budget.

13

DOT-IT - Mainframe Application Modernization

Appropriates funds to advance the development and implementation of replacement systems for Division of Motor Vehicles mainframe applications, including the State Titling and Registration System

(STARS), State Automated Driver License System (SADLS), and

Liability Insurance Tracking and Enforcement System (LITES). Funds are authorized for the procurement of contractual services, hardware and software for these replacement efforts.

14

Fiscal Section - Combined Registration and Tax Collection

System

Authorizes three additional receipt-supported positions to administer the collection of registration fees and property taxes upon implementation of the Combined Motor Vehicle Registration and

Property Tax Collection System. Budgeted receipts are increased by

$189,278 recurring in FY 2013-14 and $189,372 recurring in FY 2014-

15. Costs incurred for project administration are supported by the administrative fee authorized in G.S. 105-330.5(b) and determined pursuant to the Memorandum of Understanding between the

Department of Revenue and Division of Motor Vehicles, as required by

G.S. 105-330.11. Total budgeted receipts for Fiscal Section project administration are $634,702 in FY 2013-14 and $634,796 in FY 2014-

15.

$303,896

$278,099

($7,455)

R

R

R

$8,832,000

NR

Highway Fund

FY 14-15

$303,896

R

$278,099

R

($7,455)

R

$5,000,000

$8,798,400

R

NR

Page K 2

Senate Subcommittee on Transportation

15

DOT-IT - Combined Registration and Tax Collection System

Authorizes two additional receipt-supported positions to support and maintain the Combined Motor Vehicle Registration and Property Tax

Collection System. Budgeted receipts are increased by $240,296 recurring and $232,750 nonrecurring in FY 2013-14, and are reduced by $1,767,963 in FY 2014-15 per project close-out. Costs incurred for project administration are supported by the administrative fee authorized in G.S. 105-330.5(b) and determined pursuant to the

Memorandum of Understanding between the Department of Revenue and Division of Motor Vehicles, as required by G.S. 105-330.11. Total budgeted receipts for DOT-IT project administration are $4,831,480 in

FY 2013-14 and $2,861,062 in FY 2014-15.

FY 13-14 FY 14-15

Highway Fund

Page K 3

Senate Subcommittee on Transportation

16

Departmental Staffing Efficiencies

Eliminates 25 vacant administrative positions within the Department and 11 vacant receipt-supported positions:

Position Position Title

60019254 Office Assistant IV

60019645 Processing Assistant III

60019641 Processing Assistant IV

60020157 Processing Assistant III

60021214 Processing Assistant III

60022816 Processing Assistant III

60021741 Accounting Technician

60017652 Processing Assistant III

60027656 Engineering Manager

60021749 Processing Assistant III

60022317 Processing Assistant III

60019740 Processing Assistant III

60015796 Engineer

60015799 Engineer

60015802 Engineer

60015815 Engineer

60015819 Engineer

60015839 Engineer

60015335 Accountant

60015603 Transportation Program Section Chief

60015602 Aircraft Mechanic

60015443 Processing Assistant II

60015109 Business And Technology Applic Analyst

60015474 Processing Assistant III

60015532 Plant Maintenance Supervisor 1

60027024 Administrative Secretary III

60027234 Processing Assistant III

60015547 Plant Maintenance Supervisor 1

60025668 Executive Assistant I

60025676 Office Assistant III

60015364 Accounting Director

60015454 Accountant

60015412 Processing Assistant II

60015163 Transportation Planner III

65002114 Engineer Supervisor

65012864 Engineering Supervisor

Additionally, 303 vacant positions assigned to field and equipment units, of which 125 have been vacant longer than 600 days, are eliminated throughout the department. Projected savings associated with these position eliminations are returned to the funding programs.

FY 13-14

($1,374,402)

-25.00

R

FY 14-15

($1,374,402)

-25.00

R

Highway Fund

Page K 4

Senate Subcommittee on Transportation

FY 13-14

Aid to Municipalities

17

State Aid to Municipalities

Appropriates additional funding from the consolidation of State Aid to

Municipalities/Powell Bill allocations within the Highway Fund.

Budgeted funds total $142,293,840 for FY 2013-14 and $136,874,010 for FY 2014-15.

Capital, Repairs & Renovations

18

Repairs & Renovations

Appropriates funds for repairs and renovations to eight Department of

Transportation owned facilities during the 2013-15 fiscal biennium.

19

Capital Improvements

Appropriates nonrecurring funds for capital improvement projects included in the Department of Transportation's 2013-2019 Capital

Improvements Plan.

$53,407,542

$3,532,900

$14,522,600

R

NR

NR

Construction

20

Secondary Road Construction and Unpaved Secondary Road

Paving Programs

Reduces funding for the Secondary Road Construction Program in FY

2013-14 and eliminates the program in FY 2014-15. The fund will be renamed in FY 2014-15 to the Unpaved Secondary Road Paving

Program. The total budget is $27.0 million in FY 2013-14 and $12.0 million in FY 2014-15. The Department will allocate $12.0 million recurring beginning in FY 2013-14 for the paving of unpaved secondary roads based on the statewide prioritization list.

21

Division Small Urban Construction

Eliminates funding to the Division Small Urban Construction Program, as recommended in the Governor's Budget.

22

Access and Public Service Road Program

Reduces funding for the Access and Public Service Roads Program by

2%, leaving $1,723,707, as recommended in the Governor's Budget.

23

Economic Development Program Fund

Appropriates $3.1 million of accumulated unencumbered fund balance within the Economic Development Program for qualifying projects to be used in FY 2013-14. $4,036,171 nonrecurring is appropriated in FY

2014-15.

($76,886,298)

$15,000,000

($7,000,000)

($35,178)

$3,100,000

R

NR

R

R

NR

FY 14-15

$48,165,484

R

$2,792,000

NR

$17,145,700

NR

($76,708,526)

R

($7,000,000)

R

($35,178)

R

$4,036,171

NR

Highway Fund

Page K 5

Senate Subcommittee on Transportation

FY 13-14

Division of Motor Vehicles

24

Customer Service Improvement Initiative

Appropriates funds to support part-time personnel, utilities, and other operating costs associated with the provision of extended weekday and Saturday hours of operation at 20 driver license offices during FY

2013-14, increasing to 30 offices by FY 2014-15, as recommended in the Governor's Budget.

Nonrecurring funds are appropriated for the training of new personnel and to replace three digital scanners which are no longer supported by the manufacturer.

25

Credit/Debit Transaction Costs

Appropriates funds to support transaction costs incurred for the acceptance of credit and debit card payments for registration, title, and highway use tax transactions.

26

Combined Registration and Tax Collection System

Continues funding for a total of 79 receipt-supported positions authorized by S.L. 2012-142, Sec. 24.10, of which 58 are time-limited, to administer the Combined Motor Vehicle Registration and Property

Tax Collection System. Fifty-four of these authorized time-limited positions shall terminate no later than June 30, 2015. Vehicle Services personnel are responsible for system training, transaction and document processing, and resolution of branch agent and customer service requests.

Budgeted receipts are increased by $8,151,788 in FY 2013-14 and

$10,460,702 in FY 2014-15. Costs incurred for project administration are supported by the administrative fee authorized in G.S. 105-

330.5(b) and determined pursuant to the Memorandum of

Understanding between the Department of Revenue and Division of

Motor Vehicles, as required by G.S. 105-330.11. Total budgeted receipts for DMV project administration are $11,591,432 in FY 2013-14 and $11,423,636 in FY 2014-15. Funding is reduced by $167,796 in

FY 2014-15 due to the elimination of four positions responsible for initial training activities.

27

Combined Registration and Tax Collection System - Receipts

Reduces funding to account for additional receipts derived from compensation for property tax transactions performed by the Division of Motor Vehicles and from the administrative fee for the production of combined registration renewal notices and vehicle property tax bills

(G.S. 105-330.5(b)). Receipts budgeted within Vehicle Services (Fund

Center 1500/157055) are increased by $1,112,258 in FY 2013-14 and

$1,334,710 in FY 2014-15, and will partially offset costs incurred for credit/debit transactions. Receipts budgeted within General Services

(Fund Center 1500/157030) are increased by $2,358,157.

$889,782

$540,683

$6,646,233

($3,470,415)

R

NR

R

R

FY 14-15

$963,829

R

$7,975,480

R

($3,692,867)

R

Highway Fund

Page K 6

Senate Subcommittee on Transportation

FY 13-14

28

Division Staffing Efficiencies

Eliminates 12 positions within the Division of Motor Vehicles which have been vacant longer than 180 days:

Position Position Title

60031363 Administrative Assistant III

60029937 Title Examining Supervisor III

60029941 Information Processing Technician

60031316 Law Enforcement Manager

60030972 Law Enforcement Supervisor

60031068 Law Enforcement Supervisor

60031138 Law Enforcement Agent

60031108 Law Enforcement Agent

60031041 Law Enforcement Agent

60031173 Law Enforcement Agent

60031170 Law Enforcement Agent

60030097 Nurse Consultant

29

Inspection Program

Increases funding to support the costs of administering the Inspection

Program per the elimination of the Inspection Program Account and

Telecommunications Account. Receipt-supported functions are converted to Highway Fund appropriation. Recurring funding for the

Inspection Program (Fund Center 1500/150054) is increased by

$8,964,895, for a total Program budget of $12,158,854 recurring.

Receipts budgeted for split-funded positions within the License and

Theft Bureau (Fund Center 1500/157060) are reduced by $6,475,642.

Intermodal

30

Aviation Division - State Aid to Airports

Reduces funding for grants to airports to $20.0 million recurring, a reduction of $2,311,031 from the FY 2012-13 Certified Budget.

Amounts shown represent adjustments relative to the Continuation

Budget for the 2013-15 fiscal biennium, in accordance with the repeal of G.S. 136-16.4.

31

Public Transportation Division - Grant Programs

Reduces funding across all public transportation grant programs by

2%, leaving $83,351,374, as recommended in the Governor's Budget.

32

Ferry Division - Operating Efficiencies

Reduces funding for Ferry Division operations by 2%, as recommended in the Governor's Budget.

33

Ferry Division - Operations

Appropriates funds to offset the shifting of toll revenue to a reserve for capital improvements to the North Carolina Ferry System. Toll revenue previously offset recurring operating and maintenance costs. Recurring budgeted receipts in Fund Center 1500/157825 from other revenue sources, including memorabilia sales and vending receipts, total

$370,742.

($817,202)

-12.00

$15,440,537

$31,627

($1,692,861)

($820,763)

$4,629,258

R

R

R

R

R

R

FY 14-15

($817,202)

-12.00

R

$15,440,537

R

$2,128,306

R

($1,692,861)

R

($820,763)

R

$4,629,258

R

Highway Fund

Page K 7

Senate Subcommittee on Transportation

FY 13-14

34

Ferry Division - Spoil Site Capacity

Appropriates nonrecurring funds to re-establish capacity at spoil sites at Fort Fisher ($100,000), Southport ($150,000), Cherry Branch

($400,000), and Swan Quarter ($500,000), as recommended in the

Governor's Budget.

35

Ferry Division - Reserve for Capital Improvements

Establishes a reserve for tolls collected on the North Carolina Ferry

System. Proceeds shall be credited to separate accounts within the reserve for each Highway Division in which system terminals are located and revenue is earned. Gross annual revenue, based on the fare structure and rates determined by the Board of Transportation for system-wide implementation effective November 1, 2013, shall generate no less than $5 million and may not exceed $10 million.

Toll proceeds shall be used exclusively for prioritized capital improvements to the North Carolina Ferry System.

36

Rail Division - Operations

Reduces funding for Rail Division programs by 2%, as recommended in the Governor's Budget.

37

Rail Division - Infrastructure Assistance Programs

Eliminates funding for the Rail Industrial Access Program and Short

Line Infrastructure Assistance Program. Eligible projects may qualify for funding through the Freight Rail and Rail Crossing Safety Fund and

Strategic Prioritization Funding Plan for Transportation Investments.

38

Rail Division - Freight Rail & Rail Crossing Safety Improvement

Fund

Appropriates receipts from dividend payments issued by the North

Carolina Railroad Company. Funds shall be used for the enhancement of freight rail service and railroad-roadway crossing safety improvements, including projects which improve access to industrial, port, and military facilities. A total of $19.2 million is budgeted in FY

2013-14 and $3.75 million in FY 2014-15 from estimated dividend payments.

39

Division of Bicycle & Pedestrian Transportation - Planning

Grants

Reduces funding for the Regional Bicycle Planning Grant Program to

$250,000 recurring.

$1,150,000

($424,023)

($269,000)

$3,700,000

$15,500,000

($129,447)

Maintenance

40

Primary System

Reduces funding for the Primary System Maintenance Program, leaving $146,864,736 in FY 2013-14 and $144,044,736 in FY 2014-15, as recommended in the Governor's Budget.

($16,488,083)

NR

R

R

R

NR

R

R

FY 14-15

($424,023)

R

($269,000)

R

$3,750,000

R

($129,447)

R

($19,308,083)

R

Highway Fund

Page K 8

Senate Subcommittee on Transportation

FY 13-14

41

Secondary Road Maintenance and Improvement Program

Reduces funding to the Secondary Road Maintenance and

Improvement Program, leaving $270,244,518 in FY 2013-14 and

$268,364,518 in FY 2014-15, as recommended in the Governor's

Budget.

42

System Preservation

Reduces funding for the System Preservation Program, consistent with new revenue estimates and G.S. 119-18(b).

($12,755,795)

($500,000)

$100,771,279 43

System Preservation

Increases funding for the System Preservation Program. Budgeted funds total $179,599,774 for FY 2013-14 and $155,008,350 for FY

2014-15.

44

Reserve for General Maintenance

Increases funding for the Reserve for General Maintenance. Budgeted funds total $169,122,827 for FY 2013-14 and $112,580,168 for FY

2014-15.

45

Contract Resurfacing

Increases funding for the Contract Resurfacing Program. Budgeted funds total $375,655,932 for FY 2013-14 and $351,664,508 for FY

2014-15.

$103,850,698

$27,471,817

$100,771,279

R

R

R

R

NR

R

Reserves

46

State Retirement System Contributions

Increases the State’s contribution to the Teachers’ and State

Employees’ Retirement System for the 2013-15 biennium to fund the

Annual Required Contribution.

47

State Health Plan

Provides additional funding to increase maximum annual employer contributions for group health benefit coverage by the projected increase in the Consumer Price Index (CPI-U): 1.8% in FY 2013-14 and 2.2% in FY 2014-15.

48

Disability Income Plan of North Carolina

Reduces the State's contribution to the Disability Income Plan from

0.44% to 0.43% of payroll as a result of the December 31, 2011 actuarial valuation.

49

Reserve for Future Benefit Needs

Creates a reserve for increased contributions to existing employee benefits programs.

$1,121,000

$1,700,000

($31,150)

R

R

R

FY 14-15

($14,635,795)

R

($1,400,000)

R

$76,779,855

R

$74,779,856

R

$76,779,855

R

$1,121,000

R

$3,800,000

R

($31,150)

R

$1,745,000

R

Highway Fund

Page K 9

Senate Subcommittee on Transportation

FY 13-14 FY 14-15

Transfers

50

Department of Public Instruction - Driver Education Program

Reduces funds for transfer to the Department of Public Instruction in accordance with an authorized increase to the optional driver education fee, from $45.00 to $65.00 per participating student.

Estimates adjust for projected increases in 9th grade average daily membership (ADM) and eligible private and federal school students over the 2013-15 fiscal biennium. Per student appropriations are reduced from $200.94 to $184.94. Transfers total $25,054,988 for FY

2013-14 and $25,575,792 for FY 2014-15.

51

State Ethics Commission

Transfers $110,330 to the State Ethics Commission to support an

Attorney II position for the implementation of Section 34.18.

($2,792,962)

R

$110,330

R

Total Legislative Changes

Total Position Changes

Revised Budget

($2,808,263)

$110,330

R

R

$268,156,526

$89,650,000

-37.00

R

NR

$2,054,003,650

$192,595,770

$32,772,271

-37.00

R

NR

$1,917,690,500

Highway Fund

Page K 10

Senate Subcommittee on Transportation

Highway Trust Fund

Recommended Continuation Budget

HIGHWAY TRUST

FUND

FY 13-14

$1,118,600,000

FY 14-15

$1,152,000,000

Legislative Changes

Administration

52

Administration

Eliminates the statutory adjustment to Administration and holds funding at the FY 2012-13 certified budget amount.

Aid to Municipalities

53

Aid to Municipalities

Eliminates the Highway Trust Fund allocation to the Aid to

Municipalities program and transfers funds to the Strategic

Prioritization Program. The Highway Fund allocation to the Aid to

Municipalities program is increased to hold municipalities harmless over a five-year period.

Construction

54

Strategic Prioritization Program

Appropriates funding for highway and intermodal capital projects funded through the Highway Trust Fund per the new Strategic

Prioritization Funding Plan for Transportation Investments.

55

Intrastate System

Eliminates the Intrastate System program and transfers funds to the

Strategic Prioritization Program.

56

Mobility Fund

Eliminates the Mobility Fund program and transfers funds to the

Strategic Prioritization Program.

57

Secondary Roads

Eliminates the Secondary Road program and transfers funds to the

Strategic Prioritization Program.

58

Urban Loops

Eliminates the Urban Loops program and transfers funds to the

Strategic Prioritization Program.

($8,008,320)

($56,072,216)

$931,539,030

R

$950,101,672

R

($515,520,933)

R

($530,210,557)

R

($58,000,000)

($78,972,723)

($164,864,838)

R

R

R

R

R

($9,611,520)

($58,054,337)

($58,000,000)

($86,253,540)

($191,571,718)

R

R

R

R

R

Highway Trust Fund

Page K 11

Senate Subcommittee on Transportation

FY 13-14 FY 14-15

Turnpike Authority

59

Gap Funding

Eliminates gap funding in the amounts of $35 million for the Garden

Parkway and $28 million for the Mid-Currituck Bridge projects. The projects are eligible to compete for funding based on the prioritization process established under the Strategic Prioritization Funding Plan for

Transportation Improvements.

($63,000,000)

R

($12,900,000) R

Total Legislative Changes

Total Position Changes

Revised Budget

$1,105,700,000

($63,000,000)

R

($46,600,000) R

$1,105,400,000

Highway Trust Fund

Page K 12

Senate Subcommittee on Transportation

Turnpike Authority

Recommended Continuation Budget

Legislative Changes

Administration

60

Departmental Staffing Efficiencies

Eliminates two vacant receipt-supported positions within the Turnpike

Authority. Recurring savings total $153,884.

Position Position Title

65004790 Turnpike Marketing Manager

65002113 Information & Communication Specialist I

TURNPIKE AUTHORITY

FY 13-14

$0

FY 14-15

$0

Total Legislative Changes

Total Position Changes

Revised Budget $0 $0

Turnpike Authority

Page K 13

[This page intentionally blank.]

RESERVES/

DEBT SERVICE/

ADJUSTMENTS

Section L

[This page intentionally blank.]

Senate Committee on Appropriations/Base Budget

Statewide Reserves

Recommended Continuation Budget

GENERAL FUND

FY 13-14

$756,149,861

Legislative Changes

A. Employee Benefits

1

Severance Expenditure Reserve

Provides funding for severance salary continuation payments and health benefits coverage under the State Health Plan for eligible employees who are reduced in force (RIF) during FY 2013-14. Any funds remaining in this reserve at the end of FY 2013-14 shall not revert and shall be used to pay severance salary continuation needs in

FY 2014-15.

2

Statewide Compensation Study

Establishes a reserve to fund a statewide compensation study by the

Office of State Personnel (OSP). OSP shall report the results of its study to the chairs of the Senate Appropriations/ Base Budget

Committee, the chairs of the House of Representatives Appropriations

Committee, and the Fiscal Research Division by May 1, 2014.

$37,126,314

NR

$1,000,000

NR

R

3

State Retirement System Contributions

Increases the State’s contribution to the Teachers’ and State

Employees’ Retirement System for the 2013-15 biennium to fund the

Annual Required Contribution.

4

Judicial Retirement System Contributions

Increases the State’s contribution to the Consolidated Judicial

Retirement System for the 2013-15 biennium to fund the Annual

Required Contribution.

5

Highway Fund Retirement System Contributions

Increases the State’s contribution to the Teachers’ and State

Employees’ Retirement System for positions supported by the Highway

Fund by $1,121,000 for 2013-15 biennium to fund the Annual Required

Contribution. The increased expenditures appear in a corresponding item in the Transportation section of the Committee Report.

6

Reserve for Future Benefit Needs

Creates a General Fund reserve for increased contributions to existing employee benefits programs.

7

Highway Fund Reserve for Future Benefit Needs

Creates a Highway Fund reserve of $1,745,000 for increased contributions to existing employee benefits programs. Funds for the reserve appear in a corresponding item in the Transportation section of the Committee Report.

$36,000,000

$1,000,000

R

FY 14-15

$756,149,861

$36,000,000

R

$1,000,000

R

$56,400,000

R

Statewide Reserves

Page L 1

Senate Committee on Appropriations/Base Budget

FY 13-14

8

Disability Income Plan of North Carolina

Reduces the State’s contribution to the Disability Income Plan from

0.44% to 0.43% of payroll as a result of the December 31, 2011 actuarial valuation.

9

Highway Fund Disability Income Plan of North Carolina

Reduces the Highway Fund's contribution to the Disability Income Plan from 0.44% to 0.43% of payroll as a result of the December 31, 2011 actuarial valuation. The reduction appears in a corresponding item in the Transportation section of the Committee Report.

10

Firemen’s and Rescue Squad Workers’ Pension Fund

Reduces contributions to the Firemen’s and Rescue Squad Workers’

Pension Fund for the 2013-15 biennium to match the Annual Required

Contribution.

11

State Health Plan

Provides additional funding to increase maximum annual employer contributions for group health benefit coverage by the projected increase in the Consumer Price Index (CPI-U): 1.8% in FY 2013-14 and 2.2% in FY 2014-15.

12

Highway Fund State Health Plan Contributions

Increases maximum annual employer contributions for positions funded through the Highway Fund by the projected increase in the

Consumer Price Index (CPI-U): 1.8% in FY 2013-14 and 2.2% in FY

2014-15. The additional funding required from the Highway Fund is

$1.7 million for FY 2013-14 and $3.8 million for FY 2014-15. The increased expenditures appear in a corresponding item in the

Transportation section of the Committee Report.

B. Other Reserves

13

Reserve for Escheat Fund Global TransPark Loan Repayment

Provides General Fund appropriation to repay the Global TransPark's loan funded from the Escheat Fund. The Office of State Budget and

Management shall transfer these funds to the Escheat Fund. Any excess funds remaining after the loan is paid in full shall remain in the

Escheat Fund.

14

IT Reserve Fund

Provides additional funds for the Information Technology (IT) Reserve

Fund in the Office of the State Chief Information Officer. Additional information about these funds is provided in the IT section of this report.

15

Job Development Investment Grant Reserve

Increases funding for the Job Development Investment Grant (JDIG)

Reserve to meet projected needs for FY 2013-14 and FY 2014-15.

Total funding in FY 2013-14 will be $51,823,772; total funding in FY

2014-15 will be $63,045,357.

($1,100,000)

($820,000)

$34,000,000

$24,423,772

R

R

R

$27,000,000

NR

$7,335,000

$23,665,000

33.00

R

NR

R

FY 14-15

($1,100,000)

R

($820,000)

R

$77,000,000

R

$11,820,000

$24,180,000

44.00

R

NR

$35,645,357

R

Statewide Reserves

Page L 2

Senate Committee on Appropriations/Base Budget

FY 13-14

16

NC GEAR

Establishes a statewide reserve in the Office of State Budget and

Management for the NC Government Efficiency and Reform (NC

GEAR) project.

17

Unemployment Insurance (UI) Reserve

Establishes a reserve for the requirements of S.L. 2013-2, UI Fund

Solvency and Program Changes. The Office of State Budget and

Management shall distribute the reserve to State agencies to fund the

1% UI reserve requirements for General Fund-supported employees and State-funded teachers. These amounts are supplemented by an additional $17 million in FY 2013-14 from the Worker Training Trust

Fund, the Training and Employment Account, and the Special

Employment Security Administration Fund.

C. Debt Service

18

Debt Service Adjustment

Adjusts debt service appropriations based on updated cash flow requirements.

$2,000,000

$23,800,000

($34,949,705)

19

Debt Service Increase

Increases debt service in anticipation of an additional $100 million issuance of general obligation bonds under Article V, Section 4(2) of the NC Constitution for repair and renovations of State buildings.

20

Clean Water, Parks and Recreation, and Natural Heritage Trust

Fund Debt

Provides a direct General Fund appropriation for debt service associated with the Clean Water Management Trust Fund, the Parks and Recreation Trust Fund, and the Natural Heritage Trust Fund.

$4,318,572

$13,158,590

21

Tobacco Master Settlement Agreement Debt

Provides a direct General Fund appropriation for University projects' debt service that was previously funded by Tobacco Master Settlement

Agreement receipts.

$35,450,000

NR

NR

R

R

R

R

FY 14-15

$2,000,000

NR

$13,600,000

NR

($18,648,784)

R

$8,637,142

R

$13,113,417

R

$35,289,724

R

Total Legislative Changes

Total Position Changes

Revised Budget

$118,816,229

$114,591,314

33.00

R

NR

$989,557,404

$254,336,856

$39,780,000

44.00

R

NR

$1,050,266,717

Statewide Reserves

Page L 3

Senate Committee on Appropriations/Base Budget

State Health Plan (Administration)

FY 2013-14

$5

Beginning Unreserved Fund Balance

Recommended Budget

Requirements

Receipts

Positions

Legislative Changes

Requirements:

$195,380,187

$195,380,187

46.00

Medical Benefits/Claims Processing Contract

Adjusts the budgeted amounts for Third Party

Administrative Services contracts based on newly effective contracts, changes in membership, and ongoing administrative services.

Pharmacy Benefits Management (PBM) Contract

Adjusts the budgeted amount for the PBM contract based on anticipated contractual costs, changes in membership, and administrative services provided by the PBM. Reflects a full year of the Employer Group

Waiver Plan (EGWP) in FY 2013-14.

Disease & Case Management Contracts

Adjusts the budgeted amount for Population Health

Management Services contracts based on anticipated contractual costs, changes in membership, and on-going disease and case management services.

Wellness Initiatives and Programs

Adjusts the budgeted amount for Wellness Initiatives contracts based on on-going contracts, programs, and initiatives and reflecting the expiration of some contracts.

($19,507,650) R

$0

0.00

NR

($3,020,918)

$0

0.00

$1,830,916

$0

0.00

($177,425)

$0

0.00

R

NR

R

NR

R

NR

Budget Code: 28410

FY 2014-15

$5

$195,380,187

$195,380,187

46.00

($15,997,012) R

$0

0.00

NR

($11,804,511) R

$0

0.00

NR

$2,808,916

$0

0.00

R

NR

($379,250) R

$0

0.00

NR

Department of State Treasurer

Page L 4

Senate Committee on Appropriations/Base Budget

Other Administrative Costs

Adjusts the budgeted amounts for the Plan's other administrative costs to reflect increased member communications due to plan design changes, enhanced auditing efforts, and anticipated adjustments to contractual costs due to inflation and membership changes. Reflects the transitional reinsurance fee under the federal Affordable Care

Act in FY 2014-15.

Department Overhead Allocation

Directs the Office of State Budget and Management to create a new fund code for the Department of

State Treasurer core services allocation. The amounts in other fund codes may only be used for purposes directly related to the administration of the

State Health Plan.

Subtotal Legislative Changes

FY 2013-14

$6,841,519

$0

0.00

R

NR

$1,100,000

$0

0.00

R

NR

($12,933,558)

R

$0

0.00

NR

Receipts:

Adjust Transfers from Trust Funds

Adjusts the amount of transfer from the Plan's health benefit trust fund budget codes to support administrative costs authorized for the 2013-15 fiscal biennium.

Subtotal Legislative Changes

Revised Total Requirements

Revised Total Receipts

Change in Fund Balance

Total Positions

Unappropriated Balance Remaining

($12,933,558)

$0

R

NR

($12,933,558)

R

$0

NR

$182,446,629

$182,446,629

$0

46.00

$5

Department of State Treasurer

FY 2014-15

$41,043,218 R

$0

0.00

NR

$1,100,000

$0

0.00

R

NR

$16,771,361

$0

0.00

R

NR

$16,771,361

$0

R

NR

$16,771,361

$0

R

NR

$212,151,548

$212,151,548

$0

46.00

$5

Page L 5

[This page intentionally blank.]

CAPITAL

Section M

[This page intentionally blank.]

Senate Committee on Appropriations/Base Budget

Capital

GENERAL FUND

FY 13-14 FY 14-15

A. Department of Administration

1

Division of Veterans Affairs - Sandhills State Veterans Cemetery

Appropriates $125,000 to construct an enclosed committal structure for the Sandhills State Veterans Cemetery in Spring Lake, NC. The funding will match contributions from non-State entities. The total cost of the project is $300,000.

2

Division of Veterans Affairs - New State Veterans Cemetery

Appropriates funds to construct an additional State Veterans Cemetery in Goldsboro. The State currently has three cemeteries located in

Black Mountain, Kinston, and Spring Lake.

B. Department of Agriculture and Consumer Services

3

Agriculture Water Resources Assistance Program

Provides funding for the Agriculture Water Resources Assistance

Program administered by the Soil and Water Conservation

Commission.

C. Department of Environment and Natural Resources

4

Water Resources Development Projects

Provides funds for the State's share of Water Resource Development

Projects. Funds will provide a State match for $21.3 million in federal funds and $3.4 million in local funds in FY 2013-14. The projects are specified in a special provision. In FY 2014-15, additional State funds will be available for projects and to provide the State match for federal and local projects.

D. Department of Public Safety

5

Armory and Facility Development Projects

Appropriates $8.25 million in State funds over the fiscal biennium to expand and renovate National Guard Armories and Facilities located throughout the State. These funds will match $21 million in federal funds. The projects are specified in a special provision.

$125,000

$600,000

$500,000

NR

NR

NR

$6,917,000

NR

$5,000,000

NR

$5,000,000

NR

$3,250,000

NR

Capital

Page M 1

Senate Committee on Appropriations/Base Budget

FY 13-14

E. University of North Carolina

6

University of North Carolina - Asheville - Land Purchases

Appropriates funds for the University of North Carolina - Asheville for land purchases to allow for the long-term growth and expansion of the campus consistent with the strategic plans of the campus and the

Board of Governors.

7

Appalachian State University - Health Sciences Building

Funds advance planning for Appalachian State University’s College of

Nursing and Health Sciences Building. The 200,000 sq. ft. facility will be constructed in association with the Watauga Medical Center.

Planning funds for this project were originally appropriated in S.L. 2008-

107 but were reverted by the Governor to cover the FY 2008-09 budgetary shortfall. The project is estimated to cost $80.2 million.

F. General Obligation Bonds

8

Repair and Renovations

Authorizes the issuance of general obligation bonds under Article V,

Section 4(2) of the NC Constitution to be allocated to the Reserve for

Repair and Renovation. The University of North Carolina System will receive 46 percent of the allocation to be distributed to the various campuses. The Office of State Management and Budget will receive

54 percent of the allocation to be distributed to various State agencies.

The total debt authorized is $100,000,000.

$2,000,000

NR

$2,000,000

NR

Total Appropriation to Capital

$17,142,000

NR

FY 14-15

$8,250,000

NR

Capital

Page M 2

INFORMATION

TECHNOLOGY

SERVICES

Section N

[This page intentionally blank.]

Senate Committee on Appropriations/Base Budget

Information Technology Fund

Beginning Unreserved Fund Balance

Recommended Budget

Requirements

Receipts

Positions

Legislative Changes

Requirements:

Criminal Justice Information Network

Provides $189,563 in each year of the biennium to the Criminal Justice Information Network (CJIN).

The CJIN is a statewide criminal justice infrastructure that allows the sharing of information between State and local criminal justice agencies.

Center for Geographic Information and Analysis

Provides $495,338 in each year of the biennium for the Center for Geographic Information and Analysis

(CGIA). The CGIA is the lead agency for geographic information systems (GIS) services and GIS coordination for North Carolina. CGIA provides GIS services to State and local governments as well as the private sector.

Enterprise Security Risk Management Office

Reduces funding for Enterprise Security Risk

Management to 2011-2013 levels, leaving $864,148

(recurring) for each year of the biennium. The

Enterprise Security and Risk Management Office

(ESRMO) is responsible for the development, delivery and maintenance of an information security and risk management program that safeguards the

State's information assets and the supporting infrastructure against unauthorized use, disclosure, modification, damage, or loss.

FY 2013-14

$0

$6,053,142

$6,053,142

33.00

R

NR

R

NR

($248,746) R

NR

Budget Code: 24667

FY 2014-15

$2,200

$6,053,142

$6,053,142

33.00

R

NR

R

NR

($248,746) R

NR

Information Technology

Page N 1

Senate Committee on Appropriations/Base Budget

Enterprise Project Management Office

Reduces funding for the Enterprise Project

Management Office (EPMO) to 2011-13 levels, leaving $1,473,285 for FY 2013-14 and FY 2014-15.

The EPMO was established to improve the management of IT projects in State government.

Architecture and Engineering

Reduces funding for the Office of Enterprise

Architecture to 2011-2013 levels, providing $851,986 for FY 2013-14 and FY 2014-15. The Office acts as a strategic planner and architect for the State's IT programs and is responsible for formulating and advancing a vision for those programs.

State Web Site

Provides funding of $224,741 for FY 2013-14 and FY

2014-15 to support the operation and maintenance of the State's web site.

Enterprise Licenses

Provides funding of $33,000 for FY 2013-14 and FY

2014-15 for enterprise license agreements.

Enterprise license agreements support multiple agencies' IT projects and applications.

Consolidation

Reduces funding for consolidation to $1,021,081 for each year of the biennium to offset other requirements within the Office of the State Chief

Information Officer.

Electronic Forms and Digital Signatures

Provides funding to continue the State's effort to develop and enterprise electronic forms and digital signatures capability.

Government Data Analytics Center

Provides funding to continue the efforts of the

Government Data Analytics Center (GDAC) and the

North Carolina Financial Accountability and

Compliance Technology System (NCFACTS) to develop an enterprise business intelligence capability.

Subtotal Legislative Changes

FY 2013-14

($219,116) R

NR

($48,354)

R

NR

R

NR

R

NR

($383,784) R

NR

$900,000 R

NR

$1,417,515

$1,582,485

8.00

R

NR

$1,417,515

$1,582,485

8.00

R

NR

Information Technology

FY 2014-15

($219,116) R

NR

($48,354)

R

NR

R

NR

R

NR

($383,784) R

NR

$900,000 R

NR

$1,417,515

$3,000,000

8.00

R

NR

$1,417,515

$3,000,000

8.00

R

NR

Page N 2

Senate Committee on Appropriations/Base Budget

FY 2013-14

Receipts:

Interest

Accounts for interest generated by the Information

Technology Fund during FY 2012-13 and 2013-14.

Funding for Government Data Analytics Center

Provides funding for the Government Data

Analytics Center and the North Carolina Financial

Accountability and Compliance Technology System to continue the State's efforts to develop an enterprise business intelligence capability.

Subtotal Legislative Changes

$2,200

$0

R

NR

$1,417,515

$1,582,485

R

NR

Revised Total Requirements

Revised Total Receipts

Change in Fund Balance

Total Positions

Ending Unreserved Fund Balance

$1,419,715

$1,582,485

R

NR

$9,053,142

$9,055,342

$2,200

41.00

$2,200

FY 2014-15

$2,200

$0

R

NR

$1,417,515

$3,000,000

R

NR

$1,419,715

$3,000,000

R

NR

$10,470,657

$10,472,857

$2,200

41.00

$4,400

Information Technology

Page N 3

Senate Committee on Appropriations/Base Budget

Information Technology Reserve Fund

Beginning Unreserved Fund Balance

Recommended Budget

Requirements

Receipts

Positions

Legislative Changes

Requirements:

Adjustment to IT Reserve

Adjusts Information Technology Reserve requirements to reflect the availability of funding by moving requirements from FY 2013-14 to FY 2014-

15. This includes delaying the hiring of two IT managers and one IT professional responsible for planning until second year ($450,000), delaying the hiring of five IT analysts responsible for the build function until the second year ($550,000), and delaying network simplification until the second year

($3,000,000).

Prepare/Focus (Strategic Plan)

Provides $250,000 in FY 2013-14 to allow the State

Chief Information Officer (CIO) to develop a new strategic plan that can be consistently implemented across State agencies, using a cross-agency working group to assess Statewide needs and formulate a plan. To support this effort, the State CIO will retain consultants with public and private sector expertise and estimates a requirement for 1,250 hours of support at $200 per hour.

FY 2013-14

$0

$35,000,000

$27,000,000

0.00

($1,000,000)

($3,000,000)

R

NR

R

NR

Budget Code: 00000

FY 2014-15

$0

$32,000,000

$32,000,000

0.00

$1,000,000

$3,000,000

R

NR

R

NR

Information Technology

Page N 4

Senate Committee on Appropriations/Base Budget

Plan (Enterprise Architecture)

Provides the State CIO with funding of $1,592,526 in

FY 2013-14 and $2,232,321 in FY 2014-15 to hire personnel with the skills necessary to ensure that the

State has an enterprise architecture that can be used as the basis for planning Statewide IT support and integrating agency requirements. As part of this effort, a consistent, detailed business case development process will be created that is based on best practices and ensures that the State acquires the best support at the lowest cost. To facilitate this process, the State CIO plans to recruit personnel with the necessary expertise. These will include the following:

1 IT Executive

4 IT Managers (2 hired in FY 2014-15)

11 IT Professionals (6 hired 10/01/2013) (1 hired in

FY 2014-15)

Build (Project Management)

Provides funding of $1,602,433 in FY 2013-14 and

$2,754,163 in FY 2014-15 to allow the State CIO to hire staff with the skills required to create and deploy a development model for Cabinet agencies that will assist them in defining software requirements and require standard methodologies for project management and system development. The State

CIO has projected the following staffing requirements:

1 IT Executive

3 IT Managers (1 to be hired 10/01/2013, 1 to be hired 01/01/2014)

14 IT Analysts (6 to be hired 10/1/2013, 5 to be hired

01/01/2014)

8 IT Analysts for 2014 (1 to be hired 10/01/2014, 1 to be hired 01/01/2015)

Remediation (Equipment Relocation)

Provides the State CIO with funding to move information technology equipment from substandard facilities to State data centers. The associated costs are estimated as follows:

Vendor support of $300,000 in FY 2013-2014

Equipment costs of $800,000 in FY 2013-14 &

$600,000 in FY 2014-15

FY 2013-14

13.00

R

NR

18.00

R

NR

R

NR

FY 2014-15

16.00

R

NR

26.00

R

NR

R

NR

Information Technology

Page N 5

Senate Committee on Appropriations/Base Budget

Security

Ensures that State agencies are meeting IT security requirements by providing nonrecurring funding of

$1,500,000 in FY 2013-14 and $250,000 in FY 2014-

15 to allow the State CIO to conduct an assessment of their current status, then implement improvements based on identified shortfalls. To accomplish this, the services of an outside consultant will be required. The State CIO has also identified shortfalls in the IT Security staff and requires an additional IT security specialist, to be hired in January 2014, with an annual salary and benefits totaling $142,788.

Network Simplification

Provides nonrecurring funding of $5,250,000 in FY

2014-15 to allow for the upgrade, simplification, and modernization of the State's internal IT infrastructure to accommodate current technology. Applications will also be upgraded.

Desktop Remediation

Provides funding of $16,000,000 (nonrecurring) in FY

2013-14 and $14,300,000 ($13,300,000 nonrecurring) in FY 2014-15 for the replacement of obsolete computers and applications.

MS Office

Provides $4,000,000 in FY 2013-14 and $2,300,000 in FY 2014-15, as well as nonrecurring funding of

$3,615,000 in FY 2013-14 to update approximately

50,000 agency software licenses to meet current standards.

Operate (Standards and Measures)

Allows the State CIO to establish consistent, comparable IT standards and measures. To accomplish this, the State CIO has requested funding of $183,505 in FY 2013-14 and FY 2014-15 for an IT

Executive to be responsible for managing the delivery of IT services for State agencies. To enable this executive to standardize IT, the State CIO will engage the services of a consultant with nonrecurring funding of $800,000 in FY 2013-14 and $500,000 in

FY 2014-15.

FY 2013-14

1.00

R

NR

R

NR

R

NR

R

NR

1.00

R

NR

FY 2014-15

1.00

R

NR

1.00

R

NR

R

NR

R

NR

R

NR

Information Technology

Page N 6

Senate Committee on Appropriations/Base Budget

FY 2013-14

Customer Data

Facilitates the State CIO developing a standard State policy regarding access to and use of data held by the State, using the services of a consultant at a nonrecurring cost of $400,000 in FY 2013-14 and $1 million in FY 2014-15.

Secure Sign-On

Provides recurring funding of $3,070,000 and nonrecurring funding of $3,280,000 in FY 2014-15 for the upgrade of the State's identity management system to accommodate increasing security requirements for anyone accessing certain types of data.

Innovation Center

Creates an innovation center to encourage collaboration between State agencies, institutions of higher learning, citizens, and the private sector to create information technology solutions with potential benefit to the State and anyone using government services.

Subtotal Legislative Changes

R

NR

R

NR

R

NR

($1,000,000)

($3,000,000)

33.00

R

NR

Receipts:

Increase to IT Reserve Receipts

Increases Information Technology Reserve receipts by $4 million each year of the biennium to address Statewide critical information technology infrastructure and security deficiencies, and to provide additional resources to support Statewide oversight and enterprise planning.

Information Technology Reserve Receipts

Sets IT Reserve receipts at $31,000,000 in appropriations for FY 2013-14 and $36,000,000 for

FY 2014-15.

Subtotal Legislative Changes

$0

$4,000,000

R

NR

R

NR

$0

$4,000,000

R

NR

Information Technology

FY 2014-15

R

NR

R

NR

R

NR

$1,000,000

$3,000,000

44.00

R

NR

$0

$4,000,000

R

NR

R

NR

$0

$4,000,000

R

NR

Page N 7

Senate Committee on Appropriations/Base Budget

Revised Total Requirements

Revised Total Receipts

Change in Fund Balance

Total Positions

Ending Unreserved Fund Balance

FY 2013-14

$31,000,000

$31,000,000

$0

33.00

$0

FY 2014-15

$36,000,000

$36,000,000

$0

44.00

$0

Information Technology

Page N 8

Senate Committee on Appropriations/Base Budget

Information Technology Internal Service Fund

FY 2013-14

$16,656,521 Beginning Unreserved Fund Balance

Recommended Budget

Requirements

Receipts

Positions

Legislative Changes

Requirements:

Information Technology Internal Service Fund

Provides funding for the Office of Information

Technology Services. For FY 2013-14 and FY 2014-

15, the Fund is limited to $190 million.

Subtotal Legislative Changes

$190,000,000

$190,000,000

507.00

$0

$0

R

NR

$0

$0

R

NR

Budget Code: 74660

FY 2014-15

$16,656,521

$190,000,000

$190,000,000

507.00

$0

$0

R

NR

$0

$0

R

NR

Receipts:

IT Internal Service Fund Receipts

Limits receipts for SFY 2013-14 and 2014-15 to

$190 million each year.

Subtotal Legislative Changes

$0

$0

R

NR

$0

$0

R

NR

$0

$0

R

NR

$0

$0

R

NR

Information Technology

Page N 9

Senate Committee on Appropriations/Base Budget

Revised Total Requirements

Revised Total Receipts

Change in Fund Balance

Total Positions

Ending Unreserved Fund Balance

FY 2013-14

$190,000,000

$190,000,000

$0

$16,656,521

FY 2014-15

$190,000,000

$190,000,000

$0

$16,656,521

Information Technology

Page N 10

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