GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 242*

Short Title:  UNC/Uniform Reversion Rate.	(Public)

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Sponsors: Representatives Cummings, Barnes, Black, Gray, Oldham, Rogers; Baker, Grady, Lemmond, McMahan, Pate, Preston, Sutton, and Weatherly.

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Referred to:  Appropriations, Subcommittee on Education.

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February 22, 1995

A BILL TO BE ENTITLED
AN ACT TO IMPLEMENT THE RECOMMENDATION OF THE JOINT LEGISLATIVE EDUCATION OVERSIGHT COMMITTEE TO ESTABLISH A UNIFORM REVERSION RATE UNDER THE UNC MANAGEMENT FLEXIBILITY AND ACCOUNTABILITY ACT.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 116-30.3 reads as rewritten:
"§ 116-30.3.  Reversions.
Of the General Fund current operations appropriations credit balance remaining in each budget code, except for that of the Area Health Education Centers of the University of North Carolina at Chapel Hill, of a special responsibility constituent institution at the close of a fiscal year, any amount greater than two percent (2%) of the General Fund appropriation for that fiscal year may be carried forward by the institution to the next fiscal year and may be used for one-time expenditures that will not impose additional financial obligations on the State.  Of the General Fund current operations appropriations credit balance remaining in the budget code of the Area Health Education Centers of the University of North Carolina at Chapel Hill, any amount greater than one percent (1%) of the General Fund appropriation for that fiscal year may be carried forward in that budget code to the next fiscal year and may be used for one-time expenditures that will not impose additional financial obligations on the State.  However, the amount carried forward under this section shall not exceed two and one-half percent (2 1/2%) of the General Fund appropriation. The Director of the Budget, after making adjustments for allotment reductions made to meet revenue shortfalls and to force credit balances during the preceding five fiscal years under the authority set forth in G.S. 143-25, shall establish the General Fund current operations credit balance remaining in each budget code of each institution.  Any special responsibility constituent institution that does not revert at least two percent (2%) of its General Fund current operations credit balance remaining in each budget code of that institution shall cease to be a special responsibility constituent institution unless the Board of Governors finds that the low reversion rate is due to adverse and unforeseen conditions.  In this instance, the Board may allow the institution to remain a special responsibility constituent institution for one year to come into conformity with this section.  The Board may make this exception only one time for any special responsibility constituent institution, and shall report these exceptions to the Joint Legislative Commission on Governmental Operations."
Sec. 2.  This act becomes effective July 1, 1995.