GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 2346

Short Title:  Budget Flexibility/1990-91.	(Public)
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Sponsors: Representatives Pope; Abernethy, Brawley, Creech, Diggs, Dockham, Esposito, Gardner, Gray, Grimmer, Hege, Howard, Huffman, Justus, Ligon, Loflin, Privette, Rhyne, Sizemore, Stam, Walker, Weatherly, P. Wilson, and Wood.
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Referred to:  Finance.
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June 6, 1990

A BILL TO BE ENTITLED
AN ACT TO AMEND THE EXECUTIVE BUDGET ACT TO PROVIDE ADDITIONAL MANAGEMENT FLEXIBILITY.
The General Assembly of North Carolina enacts:
Section 1. G.S. 143-27 reads as rewritten:
"§ 143-27. Appropriations to educational, charitable and correctional institutions are in addition to receipts by them.
All appropriations now or hereafter made to the educational institutions, and to the charitable and correctional institutions, and to such other departments and agencies of the State as receive moneys available for expenditure by them are declared to be in addition to such receipts of said institutions, departments or agencies, and are to be available as and to the extent that such receipts are insufficient to meet the costs anticipated in the budget authorized by the General Assembly, of maintenance of such institutions, departments, and agencies.
."
Sec. 2.  G.S. 143-16.3 is repealed.
Sec. 3. G.S. 143-23 reads as rewritten:
"§ 143-23. All maintenance funds for itemized purposes; transfers between objects and items.
(a)	All appropriations now or hereafter made for the maintenance of the various departments, institutions and other spending agencies of the State, are for the purposes and/or objects enumerated in the itemized requirements of such departments, institutions and other spending agencies submitted to the General Assembly by the Director of the Budget and the Advisory Budget Commission, and/or as amended by the General Assembly. The function of the Advisory Budget Commission under this subsection applies only if the Director of the Budget consults with the Commission in preparation of the budget.
(a1)	No transfers may be made between line items in the budget of any department, institution, or other spending agency; however, with the approval of the Director of the Budget, a department, institution, or other spending agency may spend more than was appropriated for a line item if the overexpenditure is:
(1)	In a program for which funds were appropriated for that fiscal period and the total amount spent for the program is no more than was appropriated for the program for the fiscal period;
(2)	Required to continue a program because of unforeseen events, so long as the scope of the program is not increased;
(3)	Required by a court, Industrial Commission, or administrative hearing officer's order or award or to match unanticipated federal funds;
(4)	Required to respond to an unanticipated disaster such as a fire, hurricane, or tornado; 
(5)	Required to call out the National Guard; or
(6)	Necessary to implement an executive order of the Governor.
The Director of the Budget shall report on a quarterly basis to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office the reason if the amount expended for a program is more than the amount appropriated for it from all sources.
Funds appropriated for salaries and wages may be used for any operating expenses of departments, institutions, and agencies. Lapsed salary funds that become available from vacant positions may not be used for new permanent employee positions or to raise the salary of existing employees. 
As used in this subsection, ‘program' means a group of expenditure and receipt line items for support of a specific budgeted activity outlined in the certified budget for each department, agency, or institution, as designated by the four-digit fund (purpose)	number in the Budget Preparation System.
The requirements in this section that the Director of the Budget report to the Joint Legislative Commission on Governmental Operations shall not apply to expenditures of receipts by entities that are wholly receipt supported, except for entities supported by the Wildlife Resources Fund.
(b)	Repealed by Session Laws 1985, c. 290, s. 8, effective July 1, 1985.
(b1)	A department, institution, or other spending agency may, with the approval of the Director of the Budget, combine or eliminate fund codes.
(c)	Transfers or changes as between objects and items in the budget of the Senate may be made by the President Pro Tempore of the Senate;
(d)	Transfers or changes as between objects and items in the budget of the House of Representatives may be made by the Speaker of the House of Representatives;
(e)	Transfers or changes as between objects and items in the budget of the General Assembly other than of the Senate and House of Representatives may be made jointly by the President Pro Tempore of the Senate and the Speaker of the House of Representatives."
Sec. 4.  Section 48 of Chapter 752 of the 1989 Session Laws reads as rewritten:
"Sec. 48.  Sections 156 through 160 of Chapter 479 of the 1985 Session Laws, as amended, do not apply to the extent that the Director of the Budget finds that compliance is impossible and that deviation is necessary because of complications in the budget process that were not contemplated when the budget for the 1989-91 fiscal biennium was enacted.
The Director of the Budget shall report, on a monthly basis to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office on any deviations from Sections 156 through 160 of Chapter 479 of the 1985 Session Laws, as amended, and the reasons it was impossible to comply.
."
Sec. 5.  There is appropriated from the General Fund to the Office of State Budget and Management the sum of $5,000 for the 1990-91 fiscal year to implement the provisions of this act.
Sec. 6.  Sections 1 through 4 of this act shall become effective July 1, 1990, and shall remain in effect through June 30, 1991. The remainder of this act shall become effective July 1, 1990.