GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	1 

SENATE BILL 92

Short Title:  State Pay Local Costs.	(Public)
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Sponsors: Senator Hardin.
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Referred to:  Ways and Means.
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February 1, 1989

A BILL TO BE ENTITLED
AN ACT TO AMEND THE EXECUTIVE BUDGET ACT TO PROVIDE THAT WHEN  BILL IS RATIFIED ON OR AFTER JULY 1, WHICH IMPOSES ANY ADDITIONAL COSTS UPON COUNTIES AND/OR MUNICIPALITIES DURING THE FISCAL YEAR IN WHICH THE BILL IS RATIFIED, THE STATE SHALL REIMBURSE THE COUNTIES AND/OR MUNICIPALITIES FOR SUCH COSTS DURING THAT FISCAL YEAR.
Whereas, the Local Government Budget and Fiscal Control Act requires counties and municipalities to adopt budgets no later than July 1, and provides no means for raising additional revenues after the budget is adopted; and
Whereas, the State budget is often enacted on or after July 1, and many times contains provisions imposing additional costs upon the counties and municipalities; and
Whereas, if for State reasons, the General Assembly cannot enact the budget until July 1 or after, it should either delay passing along costs to the counties and municipalities for one year, or reimburse the counties for such costs; Now, therefore,
The General Assembly of North Carolina enacts:
Section 1.  The Executive Budget Act, Article 1 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143-31.6. Reimbursement for county and municipal mandates not enacted in a timely manner.
Whenever an act is ratified which imposes financial obligations on counties or municipalities during the fiscal year in which the act is ratified, the State shall reimburse them for such costs during that fiscal year."
Sec. 2.  This act is effective upon ratification.