A BILL TO BE ENTITLED
AN ACT to enact community college efficiency initiatives.
The General Assembly of North Carolina enacts:

USE OF OVERREALIZED RECEIPTS TO SUPPORT ENROLLMENT GROWTH RESERVE RATHER THAN EQUIPMENT RESERVE
SECTION 1.  G.S. 115D‑31(e) reads as rewritten:
"(e)	If receipts for community college tuition and fees exceed the amount certified in General Fund Codes at the end of a fiscal year, the State Board of Community Colleges shall transfer the amount of receipts and fees above those budgeted to the Enrollment Growth Reserve. Funds in the Enrollment Growth Reserve shall not revert to the General Fund and shall remain available to the State Board until expended. The State Board may allocate funds in this reserve to colleges experiencing an enrollment increase greater than five percent (5%) of budgeted enrollment levels."

two percent (2%) of budget may be carried forward
SECTION 2.(a)  Each college may retain and carry forward into the next fiscal year up to two percent (2%) of its final fiscal year General Fund appropriations. Funds retained by the colleges shall be used for the purchase of equipment, initial program start‑up costs including faculty salaries for the first year of a program, and one‑time faculty and staff bonuses. These funds shall not be used for continuing salary increases or for other obligations beyond the fiscal year into which they were carried forward. These funds shall be encumbered within 12 months of the fiscal year into which they were carried forward.
SECTION 2.(b)  G.S. 115D‑31.3(i) does not apply to the provisions of this section.

effective date
SECTION 3.  This act becomes effective July 1, 2011.