GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 1839

Short Title:  2000 Appropriations Act.-2	(Public)

─────────────────────────────────────── 
Sponsors: Representatives Easterling and Redwine (Primary Sponsors).

─────────────────────────────────────── 
Referred to:  Appropriations.

─────────────────────────────────────── 

May 30, 2000

A BILL TO BE ENTITLED
AN ACT TO MODIFY THE CURRENT OPERATIONS AND CAPITAL IMPROVEMENTS APPROPRIATIONS ACT OF 1999 AND TO MAKE OTHER CHANGES IN THE BUDGET OPERATION OF THE STATE.
The General Assembly of North Carolina enacts:

PART I.  INTRODUCTION AND TITLE OF ACT

INTRODUCTION
Section 1.  The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget.  Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and, except as allowed by the Executive Budget Act, or this act, the savings shall revert to the appropriate fund at the end of each fiscal year.

TITLE OF ACT
Section 1.1.  This act shall be known as "The Current Operations and Capital Improvements Appropriations Act of 2000."

PART II.  CURRENT OPERATIONS/GENERAL FUND

Section 2.  Appropriations from the General Fund of the State for the maintenance of the State departments, institutions, and agencies, and for other purposes as enumerated are made for the fiscal year ending June 30, 2001, according to the schedule that follows.  Amounts set out in brackets are reductions from General Fund appropriations for the 2000-2001 fiscal year.  

Current Operations-General Fund	2000-2001

Department of Administration	 (714,893)

Office of Administrative Hearings	(45,780)

Department of Cultural Resources
Cultural Resources	2,260,000

Department of Revenue	(610,805)

Department of Correction	(13,654,377)

Department of Health and Human Services
01.	Division of Child Development	18,054,056
02.	Division of Social Services	250,000
03.	Division of Medical Assistance	(114,535,129)
04.	Division of Mental Health, Developmental
Disabilities, and Substance
Abuse Services	2,858,474
05.	Division of Facility Services	1,149,000
06.	Division of Vocational Rehabilitation
Services	(956,328)
07.	Division of Public Health	(3,434,871)
08.	North Carolina Health Choice	1,413,226

Department of Public Education	89,083,352

Community Colleges System Office	19,496,417

University of North Carolina
	Board of Governors	25,224,554

Department of Agriculture and Consumer Services	1,200,000

Department of Labor	(400,000)

Department of Environment and
Natural Resources	(1,531,337)

Department of Commerce
01.	Commerce	3,005,480
02.	State Aid to Non-State Entities	2,000,000
03.	ITS	(9,000,000)

Reserve for Compensation Increase 	414,628,515

Debt Service	(45,612,595)

Capital Improvements	14,974,172

Disaster Relief	(15,000,000)

PART III.  CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND

Section 3.  Appropriations from the Highway Fund of the State for the maintenance and operation of the Department of Transportation, and for other purposes as enumerated, are made for the fiscal year ending June 30, 2001, according to the schedule that follows.  Amounts set out in brackets are reductions from Highway Fund appropriations for the 2000-2001 fiscal year.

Current Operations - Highway Fund	2000-2001  
Department of Transportation
01.	Administration	1,276,914
02.	Construction and Maintenance
a.	Construction
(00)	Secondary Construction	192,000
b.	State Maintenance	23,500,000
c.	State Aid to Municipalities	192,000
g.	State Aid for Public
Transportation and Railroads	5,200,000
03.	Division of Motor Vehicles	809,284

GRAND TOTAL CURRENT OPERATIONS
AND EXPANSION	31,170,198

PART IV.  HIGHWAY TRUST FUND

Section 4.  Appropriations from the Highway Trust Fund are made for the fiscal year ending June 30, 2001, according to the schedule that follows.  Amounts set out in brackets are reductions from Highway Trust Fund appropriations for the 2000-2001 fiscal year.

Highway Trust Fund	 	2000-2001  
01.	Intrastate System	48,538,626
02.	Secondary Roads Construction	6,102,120
03.	Urban Loops	19,626,998
04.	State Aid - Municipalities	5,092,834
05.	Program Administration	4,119,422

GRAND TOTAL - HIGHWAY TRUST FUND	83,480,000

PART V. BLOCK GRANT FUNDS

Requested by:  Representatives Easterling, Redwine
DHHS BLOCK GRANT PROVISIONS
Section 5.(a)	Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2001.

COMMUNITY SERVICES BLOCK GRANT

01.	Community Action Agencies	 

02.	Limited Purpose Agencies

03.	Department of Health and Human Services
to administer and monitor
the activities of the
Community Services Block Grant

TOTAL COMMUNITY SERVICES BLOCK GRANT	 

SOCIAL SERVICES BLOCK GRANT

01.	County departments of social services	 
(Transfer from TANF - $4,500,000)

02.	Allocation for in-home services provided
by county departments of
social services

03.	Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services

04.	Division of Services for the Blind

05.	Office of Juvenile Justice

06.	Division of Facility Services

07.	Division of Aging - Home and Community
Care Block Grant

08.	Transfer from TANF Block Grant for 
Child Care Subsidies

09.	Division of Vocational Rehabilitation - 
United Cerebral Palsy

10.	State administration

11.	Child Medical Evaluation Program

12.	Adult day care services

13.	County departments of social services for
child abuse prevention and
permanency planning

14.	Transfer to Preventive Health Services 
Block Grant for emergency medical services

15.	Transfer to Preventive Health Services Block
Grant for AIDS education, counseling, and 
testing

16.	Department of Administration
for the N.C. Commission of Indian Affairs
In-Home Services Program for the elderly

17.	Division of Vocational Rehabilitation -
Easter Seals Society

18.	UNC-CH CARES Program for training and
consultation services

19.	Transfer from TANF Block Grant for Allocation
to the Adolescent Pregnancy Prevention Program

20.	Office of the Secretary - Office of Economic
Opportunity for N.C. Senior Citizens'
Federation for outreach services to
low-income elderly persons

21.	County departments of social services
for child welfare improvements
(Transfer from TANF - $300,000)

22.	Transfer from TANF Block Grant for Division
of Mental Health, Developmental Disabilities,
and Substance Abuse Services for juvenile 
offenders

23.	Transfer from TANF Block Grant for 
Enhanced Employee Assistance Program

24.	Transfer from TANF Block Grant for 
Division of Social Services - Child 
Caring Agencies

25.	Division of Mental Health,
Developmental Disabilities, and 
Substance Abuse Services - Developmentally
Disabled Waiting List for services

26.	Transfer from TANF Block Grant to
Enhance Special Children Adoption Fund

27.	Transfer from TANF Block Grant for
Local County Child Welfare Workers

TOTAL SOCIAL SERVICES BLOCK GRANT	 

LOW-INCOME ENERGY BLOCK GRANT

01.	Energy Assistance Programs	 

02.	Crisis Intervention

03.	Administration

04.	Department of Commerce - 
Weatherization Program

05.	Department of Administration - 
N.C. Commission of Indian Affairs

TOTAL LOW-INCOME ENERGY BLOCK GRANT	 

MENTAL HEALTH SERVICES BLOCK GRANT

01.	Provision of community-based
services in accordance with the
Mental Health Study Commission's
Adult Severe and Persistently
Mentally Ill Plan	 

02.	Provision of community-based
services in accordance with the
Mental Health Study Commission's
Child Mental Health Plan

03.	Administration

TOTAL MENTAL HEALTH SERVICES BLOCK GRANT	 

SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT

01.	Provision of community-based
alcohol and drug abuse services,
tuberculosis services, and services
provided by the Alcohol, Drug Abuse
Treatment Centers	 

02.	Continuation of services for
pregnant women and women
with dependent children

03.	Continuation and expansion of
services to IV drug abusers and others
at risk for HIV diseases

04.	Provision of services in accordance with
the Mental Health Study Commission's
Child and Adolescent Alcohol and Other
Drug Abuse Plan

05.	Juvenile Services - Family Focus

06.	Juvenile offender services and substance
abuse pilot

07.	Administration

TOTAL SUBSTANCE ABUSE PREVENTION 
AND TREATMENT BLOCK GRANT	 

CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT

01.	Child care subsidies

02.	Quality and availability initiatives

03.	Administrative expenses

04.	Transfer from TANF Block Grant for 
child care subsidies

05.	Transfer from TANF Block Grant for
child care rate increases and quality
initiatives

TOTAL CHILD CARE AND DEVELOPMENT FUND
BLOCK GRANT

TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT 

01.	Work First Cash Assistance
   Standard Counties	 
   Electing Counties

02.	Work First County Block Grants

03.	Transfer to the Child Care and 
Development Fund Block Grant
for child care subsidies

04.	Allocation to the Division of Mental
Health, Developmental Disabilities, and
Substance Abuse Services for Work First
substance abuse screening, diagnostic, and
support treatment services and drug testing 

05.	Allocation to the Division of Social 
Services for Work First Evaluation

06.	Allocation to the Division of Social
Services for staff development

07.	Reduction of out-of-wedlock births

08.	Transfer to the Social Services Block Grant
for substance abuse services for juveniles

09.	Transfer to the Social Services Block Grant
for the Special Children Adoption Fund

10.	Employment Security Commission -
First Stop Employment Assistance

11.	Transfer to Social Services Block Grant - 
Enhanced Employee Assistance Program

12.	Work First Job Retention and Follow-Up
Initiatives

13.	Allocation to the Division of Public Health
for teen pregnancy prevention

14.	Transfer to Social Services Block Grant
for Child Caring Agencies

15.	Child Care Subsidies for TANF Recipients

16.	Work First Business Council

17.	Work First Housing Initiative

18.	Transfer to Child Care and Development Fund
Block Grant for Child Care Rate Increases

19.	Allocation to the Division of Social
Services for Domestic Violence

20.	Implementation of HB 1159 - Protection
from Violent Caregivers

21.	Transfer to Social Services Block Grant for 
Additional County Foster Care and Adoption 
Workers

22.	Intensive Family Preservation Program
Expansion

23.	Contract for MOE Analysis and Assistance

24.	Work First/Boys and Girls Clubs

25.	Community Colleges - Enhanced Pathways

26.	Transfer to Social Services Block Grant for
Child Care Subsidies

27.	Transfer to Social Services Block Grant for
County Departments of Social Services for
Children's Services

28.	Transfer to Social Services Block Grant for
Adolescent Pregnancy Prevention Program

TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT

MATERNAL AND CHILD HEALTH BLOCK GRANT

01.	Healthy Mothers/Healthy Children
Block Grants to Local Health
Departments	 

02.	High Risk Maternity Clinic Services,
Perinatal Education and Training, 
Childhood Injury Prevention,
Public Information and Education, and
Technical Assistance to Local Health
Departments

03.	Services to Children With Special Health
Care Needs

TOTAL MATERNAL AND CHILD
HEALTH BLOCK GRANT	 

PREVENTIVE HEALTH SERVICES BLOCK GRANT

01.	Transfer from Social Services
Block Grant - 
Emergency Medical Services	    

02.	Hypertension and Statewide
Health Promotion Programs	    

03.	Dental Health for Fluoridation
of Water Supplies	      

04.	Rape Prevention and Rape
Crisis Programs	      

05.	Rape Prevention and Rape Education

06.	Transfer from Social Services
Block Grant - 
AIDS/HIV Education, Counseling,
and Testing	       

07.	Office of Minority Health and
Minority Health Council	      

08.	Administrative and Indirect Cost

TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT	   

Section 5.(b)	Decreases in Federal Fund Availability. – If the United States Congress reduces federal fund availability in the Social Services Block Grant below the amounts appropriated in this section, then the Department of Health and Human Services shall allocate these decreases giving priority first to those direct services mandated by State or federal law, then to those programs providing direct services that have demonstrated effectiveness in meeting the federally and State-mandated services goals established for the Social Services Block Grant.  The Department shall not include transfers from TANF for specified purposes in any calculations of reductions to the Social Services Block Grant.
If the United States Congress reduces the amount of TANF funds below the amounts appropriated in this section after the effective date of this act, then the Department shall allocate the decrease in funds after considering any underutilization of the budget and the effectiveness of the current level of services.  Any TANF Block Grant fund changes shall be reported to the Senate Appropriations Committee on Human Resources, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.
The Department of Health and Human Services shall make a report in collaboration with all other State and local agencies and public and private entities (i) that are impacted by the Social Services or TANF Block Grants and (ii) that will be affected by future reductions in either of these block grants detailing plans for dealing with future reductions or adjustments in either of these block grants, including plans for programs funded wholly or in part with transfers from the TANF Block Grant.
Decreases in federal fund availability shall be allocated for the Maternal and Child Health and Preventive Health Services federal block grants by the Department of Health and Human Services after considering the effectiveness of the current level of services.
Section 5.(c)	Increases in Federal Fund Availability. – Any block grant funds appropriated by the United States Congress in addition to the funds specified in this act shall be expended by the Department of Health and Human Services, with the approval of the Office of State Budget and Management, provided the resultant increases are in accordance with federal block grant requirements and are within the scope of the block grant plan approved by the General Assembly.
Section 5.(d) Changes to the budgeted allocations to the block grants appropriated in this act due to decreases or increases in federal funds shall be reported immediately to the Senate Appropriations Committee on Human Resources, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division.

Requested by:   Representatives Easterling, Redwine
NER BLOCK GRANT FUNDS
Section 5.1.(a) Appropriations from federal block grant funds shall be made for the fiscal year ending June 30, 2001.

WELFARE TO WORK BLOCK GRANT	   

COMMUNITY DEVELOPMENT BLOCK GRANT

01.	State Administration	    

02.	Urgent Needs and Contingency	   

03.	Community Empowerment	   

04.	Economic Development	   

05.	Community Revitalization	  

06.	State Technical Assistance	     

07.	Housing Development

08.	Infrastructure

TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT - 2001 Program Year	 

Section 5.1.(b)	Decreases in Federal Fund Availability. –
Decreases in federal fund availability for the Community Development Block Grants. – If federal funds are reduced below the amounts specified above after the effective date of this act, then every program in each of these federal block grants shall be reduced by the same percentage as the reduction in federal funds.
Section 5.1.(c)	Increases in Federal Fund Availability for Community Development Block Grants. –
Any block grant funds appropriated by the Congress of the United States in addition to the funds specified in this section shall be expended as follows: – Each program category under the Community Development Block Grant shall be increased by the same percentage as the increase in federal funds.

PART VI.  GENERAL FUND AND HIGHWAY FUND AVAILABILITY STATEMENTS

Requested by:  Representatives Easterling, Redwine
GENERAL FUND AVAILABILITY STATEMENT
Section 6.  The General Fund availability used to adjust 2000-2001 budget is shown below:

2000-2001
	($ Millions)
Budget Reform Statement
Beginning Unrestricted Fund Balance	0
Tax Revenues	13,191.8
Nontax Revenues
Invest Income	218.0
Judicial Fees	104.6
Disproportionate Share Receipts	105.0
Subtotal
Other Nontax Revenue	137.5
Highway Trust Fund Transfer	170.0
Highway Fund Transfer	13.8

Total Availability	13,940.7

PART VII.  GENERAL PROVISIONS

Requested by:   Representatives Easterling, Redwine
SPECIAL FUNDS, FEDERAL FUNDS, AND DEPARTMENTAL RECEIPTS/AUTHORIZATION FOR EXPENDITURES
Section 7.(a) There is appropriated out of the cash balances, federal receipts, and departmental receipts available to each department, sufficient amounts to carry on authorized activities included under each department's operations.  All these cash balances, federal receipts, and departmental receipts shall be expended and reported in accordance with provisions of the Executive Budget Act, except as otherwise provided by statute, and shall be expended at the level of service authorized by the General Assembly.  If the receipts, other than gifts and grants that are unanticipated and are for a specific purpose only, collected in a fiscal year by an institution, department, or agency exceed the receipts certified for it in General Fund Codes or Highway Fund Codes, then the Director of the Budget shall decrease the amount he allots to that institution, department, or agency from appropriations from that Fund by the amount of the excess, unless the Director of the Budget finds that the appropriations from the Fund are necessary to maintain the function that generated the receipts at the level anticipated in the certified Budget Codes for that Fund.
Funds that become available from overrealized receipts in General Fund Codes and Highway Fund Codes may be used for new permanent employee positions or to raise the salary of existing employees only as follows:
(1)	As provided in G.S. 116-30.1, 116-30.2, 116-30.3, 116-30.4; or
(2)	If the Director of the Budget finds that the new permanent employee positions are necessary to maintain the function that generated the receipts at the level anticipated in the certified budget codes for that Fund.  The Director of the Budget shall notify the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the chairmen of the appropriations committees of the Senate and the House of Representatives, and the Fiscal Research Division of the Legislative Services Office that he intends to make such a finding at least 10 days before he makes the finding.  The notification shall set out the reason the positions are necessary to maintain the function.
The Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office within 30 days after the end of each quarter the General Fund Codes or Highway Fund Codes that did not result in a corresponding reduced allotment from appropriations from that Fund.
Section 7.(b) The Director of the Budget shall develop necessary budget controls, regulations, and systems to ensure that these funds and other State funds subject to the Executive Budget Act, are not spent in a manner which would cause a deficit in expenditures.

Requested by:   Representatives Easterling, Redwine
EXPENDITURES OF FUNDS IN RESERVES LIMITED
Section 7.1.  All funds appropriated by this act into reserves may be expended only for the purposes for which the reserves were established.

Requested by:  Representatives Easterling, Redwine
STATE MONEY RECIPIENTS/CONFLICT OF INTEREST POLICY
Section 7.2.  Each private, nonprofit entity eligible to receive State funds, either by General Assembly appropriation, or by grant, loan, or other allocation from a State agency, before funds may be disbursed to the entity, shall file with the disbursing agency a notarized copy of that entity's policy addressing conflicts of interest that may arise involving the entity's management employees and the members of its board of directors or other governing body.  The policy shall address situations where any of these individuals may directly or indirectly benefit, except as the entity's employees or members of the board or other governing body, from the entity's disbursing of State funds, and shall include actions to be taken by the entity or the individual, or both, to avoid conflicts of interest and the appearance of impropriety.

Requested by:  Representatives Easterling, Redwine
BUDGETING OF PILOT PROGRAMS
Section 7.3.(a)	Any program designated by the General Assembly as experimental, model, or pilot shall be shown as a separate budget item and shall be considered as an expansion item until a succeeding General Assembly reapproves it.
Any new program funded in whole or in part through a special appropriations bill shall be designated as an experimental, model, or pilot program.
Section 7.3.(b)	The Governor shall submit to the General Assembly with his proposed budget a report of which items in the proposed budget are subject to the provisions of this section.

PART VIII.  MISCELLANEOUS PROVISIONS

Requested by:  Representatives Easterling, Redwine
EXECUTIVE BUDGET ACT APPLIES
Section 8.  The provisions of the Executive Budget Act, Chapter 143, Article 1 of the General Statutes, are reenacted and shall remain in full force and effect and are incorporated in this act by reference.

Requested by:  Representatives Easterling, Redwine
MOST TEXT APPLIES ONLY TO 2000-2001
Section 8.1.  Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2000-2001 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2000-2001 fiscal year.

Requested by:  Representatives Easterling, Redwine
EFFECT OF HEADINGS
Section 8.2.  The headings to the parts and sections of this act are a convenience to the reader and are for reference only.  The headings do not expand, limit, or define the text of this act, except for effective dates referring to a Part.

Requested by:  Representatives Easterling, Redwine
SEVERABILITY CLAUSE
Section 8.3.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part so declared to be unconstitutional or invalid.

Requested by:  Representatives Easterling, Redwine
EFFECTIVE DATE
Section 8.4.  Except as otherwise provided, this act becomes effective July 1, 2000.