senate report cover-floor...table of contents general fund availability statement i summary: general...

SENATE APPROPRIATIONS COMMITTEE

REPORTON THE

CONTINUATION, EXPANSIONAND

CAPITAL BUDGETS

Senate Bill 897 – 3rd Edition

May 19th, 2010

Table of Contents

General Fund Availability Statement i

Summary: General Fund Appropriations 1

EducationPublic Education F-1Community Colleges F-8UNC System F-11

Health and Human Services G-1

Natural and Economic ResourcesAgriculture and Consumer Services H-1Labor H-5Environment and Natural Resources H-7DENR –Clean Water Management Trust Fund H-16Commerce H-17Commerce – State Aid H-21NC Biotechnology Center H-23Rural Economic Development Center H-24

Justice and Public SafetyJudicial I-1Judicial – Indigent Defense I-3Justice I-5Juvenile Justice and Delinquency Prevention I-7Correction I-9Crime Control and Public Safety I-13

General GovernmentAdministration J-1Auditor J-10Cultural Resources J-12General Assembly J-19Governor J-23Housing Finance Agency J-24Insurance J-25Insurance-Volunteer Safety Workers' Compensation Fund J-26Lieutenant Governor J-27Office of Administrative Hearings J-28Revenue J-29Secretary of State J-32State Board of Elections J-34State Budget and Management J-36State Budget and Management – Special Appropriations J-37State Controller J-38Treasurer J-40Treasurer – Retirement for Fire and Rescue Squad Workers J-41

Transportation K-1

Reserves, Debt Service, and Adjustments L-1

Capital M-1

FY 2010-2011

1 Unappropriated Balance Remaining from Previous Year 3,702,182

2 Adjustment from Estimated to Actual 2009-10 Beginning Unreserved Balance 270,080

3 Beginning Unreserved Fund Balance 3,972,262

4

5 Revenues Based on Existing Tax Structure 18,199,339,016

6

7 Non-tax Revenues

8 Investment Income 57,500,000

9 Judicial Fees 239,100,000

10 Disproportionate Share 100,000,000

11 Insurance 67,000,000

12 Other Non-Tax Revenues 182,700,000

13 Highway Trust Fund/Use Tax Reimbursement Transfer 72,800,000

14 Highway Fund Transfer 17,600,000

15 Subtotal Non-tax Revenues 736,700,000

16

17 Total General Fund Availability 18,940,011,278

18

19 Adjustments to Availability: Senate Bill 897

20 IRC Conformity (1,200,000)

21 Cap Tax Rate on Family-Owned and Other Small Business Income (39,700,000)

22 Lower Sales Tax Compliance Burden on Small Retailers (7,000,000)

23 Relieve Annual Report Compliance Burden on Small Business (400,000)

24 Extend Sunset on Expiring Tax Incentive Income Tax Credits and Sales Tax

25 Refunds One Year (3,500,000)

26 Modernize Sales Tax On Accommodations 1,700,000

27 Modernize Admissions Tax and Restore Amenities Exclusion (700,000)

28 Improve Tax and Debt Collection Process 3,000,000

29 Reduce Franchise Tax Burden On Construction Companies (1,500,000)

30 Department of Revenue Corporate Settlement Initiative 110,000,000

31 Loss of Estate Tax Revenues for FY 2010-11 (85,000,000)

32 Transfer from Disproportionate Share Reserve 35,000,000

33 Adjust Highway Fund Transfer - Commerce Executive Aircraft Transfer (500,000)

34 Increase Justice and Public Safety Fees 22,214,722

35 Transfer From Severance Reserve Expenditure Account 30,000,000

36 Commerce Business Recruitment Initiatives (Pending Legislation) (10,000,000)

37 Transfer from Tobacco Trust Fund 2,500,000

38

39 Subtotal Adjustments to Availabilty: Senate Bill 897 54,914,722

40

41 Revised General Fund Availability 18,994,926,000

42 Less: General Fund Appropriations 18,989,677,375

43

44 Unappropriated Balance Remaining 5,248,625

General Fund Availability Statement

i

SUMMARY:

GENERAL FUNDAPPROPRIATIONS

Adjusted Revised

Continuation Budget Recurring Nonrecurring Net FTE Appropriation

2010-11 Adjustments Adjustments Changes Changes 2010-11

Education:

Community Colleges 1,012,467,778 65,244,859 (14,500,000) 50,744,859 -7.00 1,063,212,637

Public Education 7,360,833,223 (187,669,707) (31,590,226) (219,259,933) -36.00 7,141,573,290

University System 2,656,552,008 (3,344,409) 13,254,517 9,910,108 2,666,462,116

Total Education 11,029,853,009 (125,769,257) (32,835,709) (158,604,966) -43.00 10,871,248,043

Health and Human Services:

Central Management and Support 74,172,339 (4,462,834) (461,000) (4,923,834) -24.00 69,248,505

Aging Division 37,282,029 0 0 0 0.00 37,282,029

Blind and Deaf / Hard of Hearing Services 8,649,731 (557,484) (75,428) (632,912) -3.00 8,016,819

Child Development 269,183,962 (21,334,255) (24,756,300) (46,090,555) -2.00 223,093,407

Education Services 36,844,718 (5,612,680) 0 (5,612,680) -67.00 31,232,038

Health Service Regulation 17,914,125 (342,592) (1,718,754) (2,061,346) -2.00 15,852,779

Medical Assistance 2,720,196,757 212,255,147 (561,531,417) (349,276,270) 0.00 2,370,920,487

Mental Health 664,695,955 9,987,828 11,607,991 21,595,819 -1.00 686,291,774

NC Health Choice 81,964,241 6,444,925 0 6,444,925 0.00 88,409,166

Public Health 160,515,329 (5,441,724) (650,000) (6,091,724) -27.00 154,423,605

Social Services 208,589,483 (13,189,407) (2,455,677) (15,645,084) -48.00 192,944,399

Vocational Rehabilitation 41,020,173 (516,798) (2,585,674) (3,102,472) -8.00 37,917,701

Total Health and Human Services 4,321,028,842 177,230,126 (582,626,259) (405,396,133) -182.00 3,915,632,709

Justice and Public Safety:

Correction 1,326,492,230 (49,709,580) (4,372,000) (54,081,580) 760.00 1,272,410,650

Crime Control & Public Safety 33,718,963 183,826 (1,500,000) (1,316,174) -7.00 32,402,789

Judicial Department 463,753,479 (12,518,245) (3,300,000) (15,818,245) -58.75 447,935,234

Judicial - Indigent Defense 120,132,010 1,697,164 (5,892,031) (4,194,867) 11.50 115,937,143

Justice 88,652,538 (1,790,307) (1,200,000) (2,990,307) 16.00 85,662,231

Juvenile Justice & Delinquency Prevention 147,183,945 (4,737,080) 0 (4,737,080) -31.50 142,446,865

Total Justice and Public Safety 2,179,933,165 (66,874,222) (16,264,031) (83,138,253) 690.25 2,096,794,912

Legislative Adjustments

Summary of General Fund Appropriations

Fiscal Year 2010-2011

2009 Legislative Session

Page 1

Adjusted Revised







Natural And Economic Resources:

Agriculture and Consumer Services 60,559,608 (1,938,749) 0 (1,938,749) -27.00 58,620,859

Commerce 40,915,209 (3,447,413) 37,400,000 33,952,587 -24.00 74,867,796

Commerce - State Aid 15,388,725 (719,436) 5,700,000 4,980,564 0.00 20,369,289

Environment and Natural Resources 190,399,356 (8,932,429) 10,160,000 1,227,571 -59.25 191,626,927

DENR - Clean Water Mgmt. Trust Fund 50,000,000 0 0 0 0.00 50,000,000

Labor 17,400,863 (1,411,321) 0 (1,411,321) -8.00 15,989,542

NC Biotechnology Center 14,501,900 (725,095) 0 (725,095) 0.00 13,776,805

Rural Economic Development Center 23,832,436 (1,191,622) 4,125,000 2,933,378 0.00 26,765,814

Total Natural and Economic Resources 412,998,097 (18,366,065) 57,385,000 39,018,935 -118.25 452,017,032

General Government:

Administration 67,446,884 (1,763,676) (394,234) (2,157,910) -9.00 65,288,974

Auditor 13,255,123 (777,194) 0 (777,194) -5.00 12,477,929

Cultural Resources 73,249,990 (2,093,712) (1,811,345) (3,905,057) -15.19 69,344,933

Cultural Resources - Roanoke Island 1,990,632 (115,926) 0 (115,926) 0.00 1,874,706

General Assembly 56,584,484 (3,295,241) 0 (3,295,241) 0.00 53,289,243

Governor 6,067,739 (353,359) 0 (353,359) -3.00 5,714,380

Housing Finance Agency 14,608,417 (730,421) (120,311) (850,732) 0.00 13,757,685

Insurance 32,242,706 0 0 0 0.00 32,242,706

Insurance - Worker's Compensation Fund 1,561,846 0 0 0 0.00 1,561,846

Lieutenant Governor 931,703 (54,235) 0 (54,235) -1.50 877,468

Office of Administrative Hearings 4,111,476 (278,356) 0 (278,356) -1.00 3,833,120

Revenue 87,790,970 (2,980,759) 1,457,118 (1,523,641) -42.00 86,267,329

Secretary of State 11,451,488 (666,886) 0 (666,886) -8.00 10,784,602

State Board of Elections 6,221,208 266,722 107,129 373,851 1.00 6,595,059

State Budget and Management 6,407,809 (373,164) 0 (373,164) -3.00 6,034,645

State Budget and Management -- Special 4,161,125 (4,650) 0 (4,650) 0.00 4,156,475

State Controller 23,188,207 8,700,000 (624,677) 8,075,323 26.50 31,263,530

Page 2

Adjusted Revised







Treasurer - Operations 17,565,400 0 0 0 0.00 17,565,400

Treasurer - Retirement / Benefits 10,804,671 0 0 0 0.00 10,804,671

Total General Government 439,641,878 (4,520,857) (1,386,320) (5,907,177) -60.19 433,734,701

Statewide Reserves and Debt Service:

Debt Service:

Interest / Redemption 707,573,496 (15,845,385) 0 (15,845,385) 0.00 691,728,111

Federal Reimbursement 1,616,380 0 0 0 0.00 1,616,380

Subtotal Debt Service 709,189,876 (15,845,385) 0 (15,845,385) 0.00 693,344,491

Statewide Reserves:

Contingency and Emergency Fund 5,000,000 0 0 0 0.00 5,000,000

State Health Plan (S.L. 2009-16) 276,179,709 0 0 0 0.00 276,179,709

State Retirement System Contributions 160,000,000 20,000,000 0 20,000,000 0.00 180,000,000

Judicial Retirement System Contributions 1,300,000 0 0 0 0.00 1,300,000

Information Technology Funds 7,840,000 0 0 0 0.00 7,840,000

Statewide Administrative Support Reduction (6,600,000) 0 0 0 0.00 (6,600,000)

Convert Contract Employees to State Employees (4,000,000) 0 0 0 0.00 (4,000,000)

University Cancer Research Fund 0 600,000 0 600,000 0.00 600,000

Reserve for Capital 0 18,222,000 18,222,000 0.00 18,222,000

Job Development Investment Grants (JDIG) 27,400,000 0 (6,600,000) (6,600,000) 0.00 20,800,000

Subtotal Statewide Reserves 467,119,709 38,822,000 (6,600,000) 32,222,000 0.00 499,341,709

Total Reserves and Debt Service 1,176,309,585 22,976,615 (6,600,000) 16,376,615 0.00 1,192,686,200

Total General Fund for Operations 19,559,764,576 (15,323,660) (582,327,319) (597,650,979) 286.81 18,962,113,597

Capital Improvements

Page 3

Adjusted Revised







Water Resources Development Projects 0 0 9,130,000 9,130,000 0.00 9,130,000

Capital Improvements 0 0 18,433,778 18,433,778 0.00 18,433,778

Total Capital Improvements 0 0 27,563,778 27,563,778 0.00 27,563,778

Total General Fund Budget 19,559,764,576 (15,323,660) (554,763,541) (570,087,201) 286.81 18,989,677,375

Page 4

EDUCATIONSection F

Public Education

Budget Changes

$7,360,833,223

GENERAL FUND

Senate Subcommittee on Education

FY 10-11Total Budget Approved 2009 Session

A. Technical Adjustments

($4,980,046)1 RRevi ses pr oj ect ed i ncr ease i n ADM f or FY 2010- 11 t o r ef l ect 3, 127 f ewer st udent s t han or i gi nal l y pr oj ect ed. Dol l ar amount of adj ust ment i ncl udes r evi si ons t o al l posi t i on, dol l ar , and cat egor i cal al l ot ment s.

Tot al f unded ADM f or FY 2010- 11 i s 1, 475, 668, an i ncr ease of 10, 754 over FY 2009- 10. Ther e was a t empor ar y ADM r educt i on i n FY 2009- 10 pr eci pi t at ed by a change i n t he Ki nder gar t en el i gi bi l i t y age.

Average Daily Membership

($44,950,676)2 RRevi ses budget ed f undi ng f or cer t i f i ed per sonnel sal ar i es based on act ual sal ar y dat a f r om December 2009. Adj ust ment does not r educe any sal ar y pai d t o cer t i f i ed per sonnel .

Average Teacher Salary

($36,638,646)3 RAdj ust s t he r ecei pt s budget ed f or t he Cl assr oom Teacher s al l ot ment t o r ef l ect hal f of t he pr oj ect ed $73 mi l l i on gr owt h i n Educat i on Lot t er y r evenues over t he $368 mi l l i on budget ed amount .

Education Lottery Receipts

($6,000,000)4 RAdj ust s f undi ng pr evi ousl y budget ed f or t he Chi l dr en Wi t h Di sabi l i t i es al l ot ment t o r ef l ect act ual st udent headcount and does not r educe f undi ng per st udent . The cont i nuat i on budget i ncl udes ant i ci pat ed gr owt h based on t he pr oj ect ed headcount of chi l dr en wi t h di sabi l i t i es. Thi s adj ust ment r evi ses budget ed f undi ng f or bot h pr eschool and school - age chi l dr en wi t h speci al needs t o r ef l ect t he Apr i l 1, 2010 headcount .

Exceptional Children Headcount

Page F - 1Public Education

Senate Subcommittee on Education FY 10-11

($3,000,000)5 RReduces f undi ng t o adj ust f or t he expi r at i on of Cur r i t uck Count y' s f undi ng el i gi bi l i t y i n FY 2009- 10 as wel l as a sur pl us of f undi ng needed t o f ul l y f und t he ot her el i gi bl e count i es. The r emai ni ng $43. 5 mi l l i on i s suf f i ci ent t o f ul l y f und t he 28 el i gi bl e count i es.

Small County Supplemental Funding

($310,000)6 RAdj ust s f undi ng t o r ef l ect t he del ayed openi ng of one Lear n and Ear n School schedul ed t o open i n FY 2009- 10. S. L. 2009- 451 pr ovi ded f undi ng t o open t wel ve Lear n and Ear n school s t hat had been gi ven pl anni ng f undi ng i n FY 2008- 09. Onl y t en of t he t wel ve pl anni ng school s wer e r eady t o open i n FY 2009- 10, but one of t hem wi l l be r eady t o open i n FY 2010- 11. Cur r ent l y 66 Lear n and Ear n " Br i cks and Mor t ar " school s ar e oper at i ng i n Nor t h Car ol i na.

Learn and Earn Early College High Schools

B. Other Public School Funding Adjustments

($2,618,501)7 RReduces t he Cont i ngency Reser ve by 50%. The Reser ve i s mai nt ai ned t o pr ovi de addi t i onal suppor t t o school syst ems t hat exper i ence gr eat er t han pr oj ect ed st udent headcount gr owt h. $2. 6 mi l l i on wi l l r emai n t o suppor t t he Reser ve.

ADM Contingency Reserve

($10,000,000)($16,176,036)

8 RNRReduces pr ogr am f undi ng by 15% f r om i t s $165. 5 mi l l i on combi ned

appr opr i at i on of Gener al Fund and Lot t er y pr oceeds. The Joi nt Task For ce on Ear l y Chi l dhood Educat i on and Car e est i mat es t hat $5 mi l l i on i n pr ogr am savi ngs can be achi eved by t he cappi ng of admi ni st r at i ve cost s, as pr oposed i n sect i on 7. 5 of t he Budget Bi l l . An addi t i onal $16. 2 mi l l i on i n Feder al r ecei pt s i s ant i ci pat ed t o suppor t Mor e at Four i n FY 2010- 11.

More at Four

($5,000,000)9 RReduces t he I nst r uct i onal Suppl i es al l ot ment by 6%. $89. 2 mi l l i on wi l l r emai n f or t hi s pur pose.

Instructional Supplies



($10,000,000)10 RReduces t he dol l ar al l ot ment t o LEAs f or t he sal ar i es and benef i t s of cent r al of f i ce st af f by 9. 1%. Thi s st af f i ncl udes, but i s not l i mi t ed t o, super i nt endent s, associ at e and assi st ant super i nt endent s, f i nance of f i cer s, at hl et i c t r ai ner s, and t r anspor t at i on di r ect or s. $99. 8 mi l l i on wi l l r emai n t o suppor t t hese l ocal st af f .

Central Office Administration

($7,100,000)11 RReduces r ecur r i ng f undi ng f or t hi s al l ot ment , whi ch suppor t s cl er i cal assi st ant s, cust odi ans, and subst i t ut e t eacher s, amongst ot her i t ems. $15 mi l l i on i n St at e f unds wi l l r emai n avai l abl e f or t hi s al l ot ment i n addi t i on t o $373 mi l l i on i n f eder al Educat i on St abi l i zat i on Fundi ng pr ovi ded t o LEAs t hat may al so be used f or t he same pur poses.

Noninstructional Support Personnel

($9,214,190)12

NREl i mi nat es al l St at e f undi ng f or LEA ment or i ng pr ogr ams on a nonr ecur r i ng basi s i n FY 2010- 11 onl y.

Mentoring

($4,000,000)13 RReduces f undi ng f or t hi s al l ot ment by 5. 0%. $76. 5 mi l l i on wi l l r emai n avai l abl e f or t hi s al l ot ment .

Limited English Proficiency

($10,035,622)14 RReduces f undi ng f or t he al l ot ment , whi ch suppor t s t he sal ar i es of t r anspor t at i on per sonnel as wel l as t he mai nt enance of yel l ow buses, by appr oxi mat el y 2. 3%. $403 mi l l i on wi l l r emai n avai l abl e f or t hi s al l ot ment .

Transportation

($4,500,000)15 RReduces f undi ng f or t he al l ot ment by 4. 8%. Adj ust s t he basi s of f undi ng a t en- mont h Assi st ant Pr i nci pal ( AP) posi t i on f r om 1 AP f or ever y 800 st udent s t o 1 AP f or ever y 830. 5 st udent s. $88. 3 mi l l i on wi l l r emai n avai l abl e f or t hi s al l ot ment .

Assistant Principals

($5,000,000)16 RReduces t hi s al l ot ment by 1. 4%. Thi s al l ot ment suppor t s gui dance counsel or s, l i br ar i ans, medi a speci al i st s, school nur ses, soci al wor ker s and ot her cer t i f i ed per sonnel . $353 mi l l i on wi l l r emai n avai l abl e f or t hi s al l ot ment .

Instructional Support



($1,200,000)17 RReduces t hi s al l ot ment by 0. 5%. Par t of t hi s al l ot ment pr ovi des f undi ng t o hi r e a School Resour ce Of f i cer ( SRO) based on a speci f i ed sal ar y and benef i t s amount t hat i s gr eat er t han t he act ual aver age sal ar y and benef i t s pr ovi ded t o SROs. Thi s r educt i on adj ust s t he al l ot ment t o r ef l ect act ual expendi t ur es. $234. 7 mi l l i on wi l l r emai n avai l abl e f or t hi s al l ot ment .

At-Risk Student Services

($1,975,008)18 RReduces t he al l ot ment by 2. 5% by el i mi nat i ng a hol d har ml ess cl ause t hat benef i t s t he 16 LEAs i ni t i al l y el i gi bl e f or t hi s f undi ng i n FY 2005- 06. Ever y LEA now qual i f i es f or DSSF f undi ng. $76. 8 mi l l i on wi l l r emai n avai l abl e f or t hi s al l ot ment .

Disadvantaged Student Supplemental Funding

($2,500,000)19 RReduces t hi s al l ot ment by 21. 3%. Thi s al l ot ment pr ovi des f undi ng f or a dedi cat ed soci al wor ker and school nur se i n 100 school s. $9. 2 mi l l i on wi l l r emai n avai l abl e f or t hi s al l ot ment .

Child and Family Support Teams

($11,900,000)20

NREl i mi nat es f undi ng f or t he pur chase of new r epl acement school buses i n FY 2010- 11. $44 mi l l i on wi l l r emai n avai l abl e t o suppor t t he ext ended f i nanci ng payment s r equi r ed f or buses pur chased i n FYs 2007- 10, and an addi t i onal $1 mi l l i on wi l l be avai l abl e f or emer gency bus r epl acement pur chases.

School Bus Replacement

($5,574,784)21 REl i mi nat es t he di r ect appr opr i at i on f or t he Nor t h Car ol i na Vi r t ual Publ i c School s ( NCVPS) . I nst ead of bei ng f unded t hr ough a di r ect appr opr i at i on, NCVPS wi l l be f unded vi a a new f undi ng f or mul a. The new f undi ng f or mul a r educes LEA al l ot ment s based on pr oj ect ed LEA enr ol l ment i n NCVPS cour ses, i n or der t o r ecogni ze t he ext ent t o whi ch " enr ol l ment i n e- l ear ni ng cour ses af f ect s f undi ng r equi r ed f or ot her al l ot ment s t hat ar e based on ADM, " as di r ect ed by S. L. 2006- 66, Sect i on 7. 16. NCVPS cour ses wi l l cont i nue t o be avai l abl e at no cost t o al l hi gh school st udent s i n Nor t h Car ol i na who ar e enr ol l ed i n Nor t h Car ol i na' s publ i c school s, Depar t ment of Def ense school s, and school s oper at ed by t he Bur eau of I ndi an Af f ai r s.

North Carolina Virtual Public Schools



($202,130)22 RReduces appr opr i at i ons t o al l non- publ i c school or gani zat i ons ( Communi t i es i n School s, NC Sci ence Ol ympi ad, Tar heel Chal l eNGe Academy, Teach f or Amer i ca, and Teacher Cadet ) by 5%.

Appropriations to Non-Public School Organizations

($13,000,000)23 RDi scont i nues f undi ng f or Dr opout Pr event i on Gr ant s.Dropout Prevention Grants

($1,000,000)($3,000,000)

24 RNRReduces f undi ng f or t he School Connect i vi t y I ni t i at i ve ( SCI ) as

i t i s depl oyed i n al l LEAs and i s i n t he oper at i ons and mai nt enance phase. Thi s adj ust ment al so i ncl udes a $3 mi l l i on nonr ecur r i ng r educt i on of t he cash bal ance. The r ecur r i ng cut of $1 mi l l i on r epr esent s a r educt i on t o r ecur r i ng appr opr i at i ons of appr oxi mat el y 4. 5%, and l eaves r ecur r i ng appr opr i at i ons at $21 mi l l i on per year . The nonr ecur r i ng cut of $3 mi l l i on r educes i ni t i at i ve f undi ng pr oj ect ed t o be unexpended i n FY 2009-10.

Connectivity

$1,000,00025 RPr ovi des $250, 000 t o expand f undi ng f or EVAAS l i censes t hat had pr evi ousl y been f unded out of r ever si ons and $750, 000 t o pur chase EVAAS Teacher Anal ysi s.

Education Value Added Assessment System (EVAAS)

$15,000,00026

NRPr ovi des nonr ecur r i ng f undi ng t o ext end t he St udent Di agnost i c Pi l ot pr ogr am an addi t i onal year i n t he exi st i ng 40 pi l ot school s. Addi t i onal f undi ng wi l l expand t he pi l ot pr ogr am t o addi t i onal school si t es whi l e al so suppor t i ng t he t r ai ni ng needed f or t eacher s t o pr oper l y i mpl ement t he pr ogr am.

Student Diagnostic and Intervention Initiative

$200,00027 RPr ovi des f undi ng t o suppor t t he cr eat i on of cer t ai n school si t es r ecommended by t he Joi nt Legi sl at i ve Joi ni ng Our Busi nesses and School s ( JOBS) St udy Commi ssi on.

JOBS Commission Schools



C. Department of Public Instruction

($2,375,850)28 RReduces agency oper at i ng f unds by t he same amount t hat t he Depar t ment of Publ i c I nst r uct i on has hel d i n r eser ve and t hat has r emai n unexpended f or FY 2009- 10.

DPI Operating Funds

($1,000,000)29 RReduces f undi ng f or t he Nor t h Car ol i na Cent er f or t he Advancement of Teachi ng ( NCCAT) by appr oxi mat el y 17%, br i ngi ng annual r ecur r i ng f undi ng f or t he pr ogr am t o $4, 913, 229.

North Carolina Center for the Advancement of Teaching

($2,000,000)($5,000,000)

30 RNRReduces t he annual appr opr i at i on f or t he Nor t h Car ol i na Wi ndow

on St udent Educat i on ( NC WI SE) , as t hi s pr oj ect i s depl oyed and i s i n oper at i ons and mai nt enance phase. As such, i t s annual budget ar y needs ar e $2 mi l l i on l ess t han pr evi ousl y budget ed. Thi s i t em al so i ncl udes a $5 mi l l i on nonr ecur r i ng r educt i on of t he cash bal ance. The r emai ni ng bal ance wi l l suppor t t he har dwar e and r epor t i ng pr oj ect s associ at ed wi t h NC WI SE.

NC WISE

($2,828,444)

-26.00

31 REl i mi nat es 26 posi t i ons and one cont r act or i n or der t o f i nd ef f i ci enci es and r educe r edundancy i n t he Depar t ment of Publ i c I nst r uct i on I T Pr ogr am Management Of f i ce ( I T PMO) . The r educt i on i ncl udes depar t ment al NC WI SE posi t i ons, Of f i ces of t he Chi ef I nf or mat i on Of f i cer , Chi ef Technol ogy Of f i cer , Technol ogy Busi ness Ser vi ces, and Pr oj ect Management . NC WI SE has been depl oyed, r educi ng t he need f or per sonnel .

Department of Public Instruction IT Program Management Office

($1,080,000)

-10.00

32 REl i mi nat es 10 posi t i ons i n t he Academi c Ser vi ces and I nst r uct i onal Suppor t depar t ment . The Di st r i ct and School Tr ansf or mat i on ar ea shal l be excl uded f r om t hi s r educt i on.

Department of Public Instruction Academic Services

($1,300,000)33

NREl i mi nat es t he cash bal ance f or t hi s pr oj ect . Funds wer e appr opr i at ed on a nonr ecur r i ng basi s i n t hr ee consecut i ve year s t o enabl e DPI t o br i ng i nf or mat i on t echnol ogy appl i cat i ons i nt o compl i ance wi t h t he st at ewi de ar chi t ect ur e r equi r ement s. Thi s pr oj ect has now been compl et ed. The t ot al appr opr i at i on f or t hi s pur pose was $6 mi l l i on.

Legacy Fund Balance



($187,669,707)

($31,590,226)

-36.00

Budget Changes

Total Position Changes

Revised Total Budget $7,141,573,290

R

NR


Community Colleges

Budget Changes

$1,012,467,778

GENERAL FUND



A. Technical Adjustments

$85,041,63234 RPr ovi des f unds t o f ul l y f und enr ol l ment gr owt h. Accor di ng t o t he 2009- 10 spr i ng semest er census, enr ol l ment has i ncr eased by 15. 8% ( 34, 118 f ul l - t i me equi val ent s or FTE) above t he 2009- 10 adj ust ed budget ed enr ol l ment of 213, 472. Thi s i ncr ease br i ngs FY 2010- 11 budget ed enr ol l ment t o 247, 590.

Thi s f undi ng i s i n addi t i on t o t he $41, 126, 850 i n t he cont i nuat i on budget f or FY 2010- 11 enr ol l ment gr owt h, f or a t ot al of $126, 168, 482 i n enr ol l ment gr owt h f undi ng.

Fully Fund Enrollment Growth

B. State Aid Adjustments

($13,500,000)35 RReduces f unds i n t he St at e Ai d budget , br i ngi ng t he t ot al management f l exi bi l i t y r educt i on f or FY 2010- 11 t o $27. 5 mi l l i on. The St at e Boar d of Communi t y Col l eges shal l di st r i but e t he f l exi bi l i t y r educt i on, account i ng f or t he uni que needs of each col l ege. Each col l ege r educed shal l have t he f l exi bi l i t y t o adj ust i t s budget t o i mpl ement t hi s r educt i on, but shal l not i mpact t hose act i vi t i es di r ect l y i nvol ved i n r et r ai ni ng di spl aced wor ker s.

Management Flexibility Reduction

($23,244,836)36 RI ncr eases cur r i cul um t ui t i on f r om $50 t o $55 f or r esi dent s ( $5 i ncr ease) and f r om $241. 30 t o $247 f or nonr esi dent s ( $5. 70 i ncr ease) . Tui t i on f or f ul l - t i me r esi dent st udent s wi l l i ncr ease by a maxi mum of $160 per year , f r om $1, 600 t o $1, 760.

Tuition Increase

($10,000,000)37

NRI ncr eases t he amount budget ed f or t ui t i on r ecei pt s t o mor e accur at el y r ef l ect ant i ci pat ed r ecei pt s. Gi ven r ecent enr ol l ment gr owt h t r ends, i t i s ant i ci pat ed t hat enr ol l ment i n FY 2010- 11 wi l l i ncr ease by mor e t han t he budget ed amount .

Overrealized Tuition Receipts

Page F - 8Community Colleges


($4,500,000)38

NRI ncr eases t he amount budget ed f or f eder al l i t er acy r ecei pt s, due t o a one- t i me i ncr ease, and t akes a cor r espondi ng one- t i me r educt i on i n St at e f undi ng.

One-time Increase in Federal Literacy Receipts

$402,86139 RRest or es t he r educt i on made t o t he Smal l Busi ness Cent er al l ot ment i n 2009. Thi s f undi ng wi l l be added t o each col l eges' base al l ocat i on. Wi t h t hi s r est or at i on, t he t ot al f undi ng avai l abl e f or t hi s pr ogr am wi l l be $5, 756, 853.

Restore Small Business Center Funding

$17,649,73540 RRest or es par t i al f undi ng t o t he pr i soner educat i on pr ogr am. The pr ogr am r ecei ved $32. 9 mi l l i on i n non- r ecur r i ng f unds i n FY 2009-10 whi l e under goi ng a cont i nuat i on r evi ew. A t ot al of $20 mi l l i on wi l l be r est or ed - i n addi t i on t o t he $17. 6 mi l l i on i ncl uded i n t hi s i t em, an addi t i onal $2, 350, 256 i s i ncl uded i n t he Depar t ment of Cor r ect i on budget i n t he Just i ce and Publ i c Saf et y sect i on of t hi s r epor t t o pay f or pr i soner t ui t i on at t he communi t y col l eges.

Restore Funding for Prisoner Education

C. System Office Adjustments

($60,747)41 RReduces appr opr i at i ons by shi f t i ng one Educat i on Consul t ant posi t i on ent i r el y t o pr opr i et ar y school r ecei pt s. Thi s posi t i on over sees t he act i vi t i es t hat gener at e t hese r ecei pt s.

Move Position to Receipt Support

($160,000)42 RReduces f undi ng f or t he St at e Boar d Reser ve by 24% f r om $660, 000 t o $500, 000.

Reduce State Board Reserve

($150,000)43 RReduces f unds f or adver t i si ng by 50%.Reduce Advertising Budget

($158,764)44 RReduces t he Syst em Of f i ce oper at i ng budget wi t h speci f i c r educt i ons t o be i dent i f i ed by t he Syst em Of f i ce. Reduct i ons shoul d f ocus on t r avel , pr i nt i ng, post age, and r egi st r at i on f ees.

Reduce System Office Operating Budget



($575,022)

-7.00

45 REl i mi nat es 7 posi t i ons i n t he Communi t y Col l ege Syst em Of f i ce. The dut i es of t hese posi t i ons shal l be el i mi nat ed or absor bed by ot her Syst em Of f i ce empl oyees. The posi t i ons ar e:

- Educat i on Pr ogr am Di r ect or #60088171 ( Bi onet wor k) - $94, 250 sal ar y and $22, 045 benef i t s.

- Technol ogy Suppor t Anal yst #60088065 ( I nf or mat i on Technol ogy) - $54, 724 sal ar y and $14, 867 benef i t s.

- I nf or mat i on Technol ogy Manager #60088013 ( I nf or mat i on Technol ogy) - $98, 976 sal ar y and $22, 903 benef i t s.

- Educat i on Pr ogr am Di r ect or I I #60088192 ( Wor kf or ce Devel opment and Cont i nui ng Educat i on) - $102, 750 sal ar y and $23, 588 benef i t s.

- Tel evi si on Pr oduct i on Asst I I I #60088049 ( Di st ance Lear ni ng) - $35, 497 sal ar y and $11, 375 benef i t s.

- Busi ness Of f i cer - C #60088111 ( Faci l i t i es and Admi ni st r at i on) - $34, 283 sal ar y and $11, 155 benef i t s.

- Of f i ce Assi st ant I V #60088142 ( St udent Ser vi ces) - $36, 966 sal ar y and $11, 642 benef i t s.

Eliminate Positions

$65,244,859

($14,500,000)

-7.00

Budget Changes



R

NR


UNC System

Budget Changes

$2,656,552,008

GENERAL FUND



A. Base Budget Adjustments

($50,000,000)46 RMandat es a management f l exi bi l i t y r educt i on f or t he UNC oper at i ng budget wi t h a pr i or i t y on non- t eachi ng r el at ed budget cut s. Thi s r educt i on i s i n addi t i on t o t he $100 mi l l i on management f l exi bi l i t y r educt i on aut hor i zed f or t he FY 2010- 11 base budget .

Management Flexibility Reduction

($755,917)47 REl i mi nat es t he r emai ni ng bal ance of a $10 mi l l i on r eser ve appr opr i at ed i n 1999 f or I nf or mat i on Technol ogy ( I T) . UNC Gener al Admi ni st r at i on used t he r eser ve t o pr ovi de gr ant s t o campuses f or I T sof t war e and har dwar e.

IT Reserve Eliminated

($651,483)48 REl i mi nat es t he r emai ni ng bal ance of a $1. 93 mi l l i on r eser ve appr opr i at ed i n 1996 f or di st ance l ear ni ng ef f or t s. The expansi on of di st ance l ear ni ng i s now f unded by t he enr ol l ment gr owt h model and by r eser ves f or UNC Onl i ne and 2+2 ef f or t s.

Distance Education Reserve Eliminated

($632,140)49 RReduces t he $1. 8 mi l l i on UNC- TV ut i l i t i es budget by 35% due t o t he st at i on' s conver si on f r om anal og t o di gi t al i n June 2009.

UNC-TV Utilities Reduction

($2,000,000)50 RReduces t he $44 mi l l i on annual appr opr i at i on t o UNC Hospi t al s by 4. 5%.

Aid to UNC Hospitals Reduced

Page F - 11UNC System


($1,500,000)51 RReduces t he appr opr i at i on f or Legi sl at i ve Tui t i on Gr ant s ( LTG) f or Nor t h Car ol i na r esi dent st udent s at t endi ng t he St at e' s pr i vat e col l eges and uni ver si t i es. The cur r ent appr opr i at i on f or LTG i s $55, 233, 705.

Legislative Tuition Grant

$5,636,81452 RI ncr eases t he UNC syst em enr ol l ment gr owt h f undi ng i n t he FY 2010- 11 base budget due t o pr oj ect ed i ncr ease of 441 FTE over pr evi ous est i mat es. Thi s f undi ng i s i n addi t i on t o t he $53, 432, 226 f or 4, 485 FTE i ncl uded i n t he FY 2010- 11 base budget .

Enrollment Growth

$34,776,30153 RRepeal s t he FY 2010- 11 l egi sl at i ve t ui t i on r at es enact ed i n t he 2009 l egi sl at i ve sessi on and r est or es t he associ at ed appr opr i at i on r educt i on.

Tuition Repeal

$8,195,51754

NRI ncr eases UNC Need- Based Fi nanci al Ai d t o account f or 1) f undi ng 4, 600 addi t i onal st udent s t hat qual i f y f or assi st ance and i nf l at i onar y i ncr eases f or pr evi ousl y f unded st udent s ( $22. 85 mi l l i on) and 2) r est or i ng need- based ai d t hat was nonr ecur r i ng i n FY 2009- 10 ( $12 mi l l i on) . Thi s Gener al Fund appr opr i at i on pl us l ot t er y r ecei pt s of $26, 661, 046 equal s t he addi t i onal $34, 856, 563 needed i n FY 2010- 11 f or UNC need- based ai d.

Need-Based Financial Aid

$282,01655 RRest or es base budget cut s made i n FY 2009- 10 t o t he t wo hi gh school pr ogr ams i n t he UNC syst em. The Nor t h Car ol i na School of Sci ence and Mat h wi l l r ecei ve $80, 851 f or l ab and educat i onal suppl i es and t he Uni ver si t y of Nor t h Car ol i na School of t he Ar t s wi l l r ecei ve $201, 165 f or cost of l i vi ng i ncr eases i n t hei r r esi dent i al hi gh school .

UNC High School Funding Restored



$6,000,00056 RFunds addi t i onal f acul t y and oper at i ng needs of t he new School of Dent i st r y at East Car ol i na Uni ver si t y t hat wi l l open wi t h 50 st udent s i n t he Fal l of 2011. To dat e, $5. 5 mi l l i on has been appr opr i at ed f or t he school ' s oper at i ng budget . To ensur e accr edi t at i on by t he Amer i can Dent al Associ at i on' s Commi ssi on on Accr edi t at i on and t o compl et e t he i nst r uct i onal and oper at i onal budget f or a st udent body of 200, t he Gener al Assembl y pl edges t o f und an addi t i onal $3. 5 mi l l i on i n FY 2011- 12 and $1. 5 mi l l i on i n FY 2012- 13.

ECU Dental School Operations

$3,000,00057 RCompl et es t he st af f i ng and oper at i onal needs of t he Ener gy Pr oduct i on I nf r ast r uct ur e Cent er ( EPI C) openi ng at UNC- Char l ot t e i n t he Fal l of 2011. These f unds wi l l enabl e t he hi r i ng of r esear ch f acul t y i n el ect r i cal power , power syst em i nf r ast r uct ur e, and power pl ant engi neer i ng. These f unds ar e i n addi t i on t o t he $2 mi l l i on appr opr i at ed i n 2009.

Energy Production Infrastructure Center (EPIC)

$500,00058 RFunds t he oper at i ng and st af f i ng needs of t he newl y est abl i shed Col l ege of Heal t h Sci ences and Al l i ed Pr of essi ons at Appal achi an St at e Uni ver si t y.

ASU College of Health Sciences and Allied Professions

$4,000,00059

NRI ncr eases t he Di st i ngui shed Pr of essor Endowment Fund t o r educe t he backl og of 66 pr of essor shi ps awai t i ng St at e mat chi ng f unds. The Fund has an annual base budget appr opr i at i on of $8 mi l l i on.

Distinguished Professor Endowment Fund

$309,00060

NRFunds an expansi on of t he Fel l ows pr ogr am at t he I nst i t ut e f or Emer gi ng I ssues at Nor t h Car ol i na St at e Uni ver si t y. Facul t y and st udent Fel l ows wi l l appl y t hei r exper t i se t o t he St at e' s cur r ent publ i c pol i cy i ssues such as j ob gr owt h and economi c devel opment .

Institute for Emerging Issues Fellows Program



$500,00061

NRCont i nues St at e suppor t f or t he Cent er f or t he Acqui si t i on of Spoken Language t hr ough Li st eni ng Enr i chment ( CASTLE) at UNC-Chapel Hi l l . The f unds wi l l be used t o 1) t r ai n t eacher s and t her api st s t o wor k wi t h deaf pr eschool - age chi l dr en wi t h cochl ear i mpl ant s and 2) pr ovi de or al pr eschool cl asses t o t hese chi l dr en. The pr ogr am has r ecei ved nonr ecur r i ng appr opr i at i ons annual l y si nce 2005.

CASTLE

$2,000,00062 RFunds r esear ch, desi gn, and const r uct i on of devi ces t o capt ur e t he ener gy of ocean waves. The r esear ch wi l l be conduct ed by a consor t i um t hat i ncl udes t he Uni ver si t y of Nor t h Car ol i na Coast al St udi es I nst i t ut e and t he Col l eges of Engi neer i ng at Nor t h Car ol i na St at e Uni ver si t y, Nor t h Car ol i na Agr i cul t ur al and Techni cal St at e Uni ver si t y, and t he Uni ver si t y of Nor t h Car ol i na Char l ot t e.

Coastal Wave Energy Research

$250,00063

NRCont i nues st at e f undi ng f or t he Nor t h Car ol i na St at e Uni ver si t y Col l ege of Vet er i nar y Medi ci ne Cl i ni cal Teachi ng and Resear ch Fund. Thi s f und was cr eat ed i n 2007 t o al l ow advanced di agnost i c and t r eat ment opt i ons f or ani mal s wher e a) owner f i nanci ng of such opt i ons ar e l i mi t ed, b) si gni f i cant i nst r uct i onal val ue exi st s, or c) t he di agnost i c and t r eat ment opt i ons have t he pot ent i al of addi ng si gni f i cant l y t o t he cor e knowl edge i n t he r el evant cl i ni cal ar ea.

Veterinary Medicine Clinical Teaching and Research Fund

($3,344,409)

$13,254,517Budget Changes



R

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HEALTH&

HUMAN SERVICESSection G

Health and Human Services

Budget Changes

$4,321,028,842

GENERAL FUND

Senate Subcommittee on Health and Human Services


( 1.0) Division of Child Development

($261,518)1 RReduces t he f undi ng wi t hi n t he oper at i ons budget . Thi s r educt i on hol ds t he Di vi si on t o i t s FY2009- 10 spendi ng l evel f or oper at i ons.

Equipment, Travel and Supplies

($72,737)

-2.00

2 REl i mi nat es t wo vacant posi t i ons wi t hi n t he Di vi si on of Chi l d Devel opment . The posi t i ons t o be el i mi nat ed ar e Admi ni st r at i ve Assi st ant I budget ed at $31, 564 and an Admi ni st r at i ve Of f i cer I I I budget ed at $41, 173. These posi t i ons have been vacant l onger t han si x mont hs.

Vacant Positions

($24,756,300)3

NRRepl aces St at e f undi ng f or chi l d car e subsi dy wi t h Tempor ar y Assi st ance f or Needy Fami l i es Bl ock Gr ant ( TANF) f unds f or FY2010- 11.

Child Care Subsidy

($6,000,000)4 RReduces f unds avai l abl e wi t hi n t he Di vi si on of Chi l d Devel opment i n ant i ci pat i on of savi ng money r el at ed t o bet t er management and t r acki ng of chi l d car e subsi dy expendi t ur es. The new syst em wi l l r educe expendi t ur es associ at ed wi t h f r audul ent and i naccur at e payment s.

Electronic Payment System

($10,000,000)5 RReduces f undi ng f or t he Nor t h Car ol i na Par t ner shi p f or Chi l dr en, I nc. Thi s i s a 5. 2% r educt i on and t he r emai ni ng f undi ng t ot al s $183 mi l l i on.

Smart Start

Page G - 1Health and Human Services

Senate Subcommittee on Health and Human Services FY 10-11

($5,000,000)6 RReduces f undi ng f or t he Smar t St ar t Heal t h I ni t i at i ves, cur r ent l y f unded at appr oxi mat el y $8 mi l l i on annual l y. Remai ni ng Heal t h I ni t i at i ves f undi ng wi l l be used t o l ever age f eder al f unds t o pay f or heal t h- r el at ed act i vi t i es f unded t hr ough Smar t St ar t .

Health Initiatives

( 2.0) Division of Mental Health, Developmental Disabilities, and Substance Abuse Services

($523,638)7 REl i mi nat es f undi ng avai l abl e f or syst em coor di nat or s wi t hi n t he 15 LME pi l ot ar eas. These f unds suppor t 18 Car e Coor di nat or s.

School-based Child and Family Teams

($84,864)

-1.00

8 RReduces f undi ng f or a vacant posi t i on wi t hi n t he Di vi si on of Ment al Heal t h, Devel opment al Di sabi l i t i es, and Subst ance Abuse Ser vi ces. Thi s posi t i on i s a Ment al Heal t h Pr ogr am Admi ni st r at or I I and has been vacant f or one year . Thi s posi t i on i s budget ed at $84, 864 and t he wor k l ocat i on i s Ral ei gh.

Vacant Position

($4,461,202)9

NRRepl aces St at e f undi ng wi t h t he Di vi si on of Ment al Heal t h, Devel opment al Di sabi l i t i es, and Subst ance Abuse Ser vi ces wi t h f eder al Ment al Heal t h and Subst ance Abuse bl ock gr ant f unds f or FY2010- 11. The t ot al i ncl udes $1, 731, 432 f r om t he Ment al Heal t h Bl ock Gr ant and $2, 729, 770 f r om Subst ance Abuse Bl ock Gr ant . Thi s i s a one- t i me swap of st at e wi t h f eder al f unds.

State Service Funds

($7,180,807)10

NRReduces unobl i gat ed f undi ng avai l abl e at t he Di vi si on' s di scr et i on f or one- t i me needs of communi t y pr ovi der s or LME syst em needs. The t ot al i ncl udes $1, 169, 355 f or ment al heal t h, $3, 398, 534 f or devel opment al di sabi l i t i es, and $2, 612, 918 f or subst ance abuse ser vi ces. These f unds have hi st or i cal l y been spent t o addr ess speci f i c one- t i me needs; t hese f unds ar e not al l ocat ed t o LMEs f or ser vi ce pr ovi si on.

Division Management Funds

($1,938,465)11 RReduces St at e f unds f or t he Whi t aker School ; t he pr ogr am wi l l become a Psychi at r i c Resi dent i al Tr eat ment Faci l i t y i n whi ch ser vi ces ar e Medi cai d r ei mbur sabl e.

Convert Whitaker School to a PRTF



$12,000,00012 RI ncr eases f unds avai l abl e f or t he t hr ee- way cont r act s t o pur chase l ocal hospi t al bed capaci t y f or cr i si s r esponse wi t hi n t he communi t y. These f unds wi l l suppor t t he pur chase of an est i mat ed 50 beds, br i ngi ng t he f undi ng t o $32 mi l l i on.

Local In-Patient Bed Capacity

$534,79513 RI ncr eases f unds avai l abl e f or t r ai ni ng di r ect car e st af f and f r ont l i ne l eader s i n pat i ent car e. Tr ai ni ng wi l l i ncl ude medi cat i on admi ni st r at i on, t her apeut i c communi cat i on, cl i ni cal and l egal aspect s of document at i on and cul t ur al awar eness.

Training in Facilities

$23,000,00014

NRPr ovi des f undi ng f or communi t y ser vi ce f unds admi ni st er ed t hr ough Local Management Ent i t i es. An addi t i onal $17 mi l l i on of TANF f unds i s al l ocat ed t o f ul l y r est or e t he $40 mi l l i on non-r ecur r i ng r educt i on f or FY2010- 11.

Community Service Funds

$250,00015

NRPr ovi des f unds f or a Ment al Heal t h Leader shi p Academy f or t r ai ni ng f or Ment al Heal t h manager s, f i nance/ budget of f i cer s, and ot her l eader s wi t hi n Local Management Ent i t i es.

Leadership Academy

( 3.0) Division of Central Management and Support

($561,000)16

NRReduces f undi ng avai l abl e f or Key Pr ogr am r ent al subsi di es. The Key Pr ogr am pr ovi des r ent al assi st ance f or di sabl ed per sons i n t ar get ed Low- I ncome Housi ng Tax Cr edi t ( LI HTC) uni t s. Appr oxi mat el y 187 r ent al uni t s wi l l not be compl et ed dur i ng FY 2010- 11, t her eby r educi ng pr oj ect ed r equi r ement s f or subsi di es.

Key Program

($937,161)17 RReduces r ecur r i ng f undi ng wi t hi n t he Di vi si on of I nf or mat i on Resour ce Management f or I TS t el ecommuni cat i on dat a ser vi ces ( $300, 564) , comput er / dat a pr ocessi ng ( $286, 597) , and I TS managed l ocal ar ea net wor k ser vi ces ( $350, 000) . Tr ansi t i oned CSE pr ogr ams, ef f ect i ve Jul y 1, 2010, wi l l assume r esponsi bi l i t y f or I TS char ges f or t el ecommuni cat i ons ser vi ces. Remai ni ng r educt i ons r ef l ect I TS r at e r educt i ons and decr eased mai nf r ame use as new appl i cat i ons come onl i ne.

Information Technology Services



($1,362,201)18 RReduces f undi ng wi t h t he Cont r ol l er ' s Of f i ce. Thi s r educt i on wi l l be of f set by budget i ng addi t i onal r ecei pt s r egul ar l y r ecei ved but not cur r ent l y budget ed.

Over-Realized Receipts

($257,004)

-4.00

19 RReduces t he hour s of oper at i on f or t he Depar t ment of Heal t h and Human Ser vi ces CARE LI NE t o r egul ar busi ness hour s, and t r ansf er s af t er - hour cal l s t o t he Mar t i n Count y Cal l Cent er . Appr oxi mat el y 20% of cal l s ar e pr esent l y r ecei ved af t er r egul ar busi ness hour s.

CARE-LINE

($263,581)20 RReduces f undi ng f or equi pment , t r avel , and suppl i es wi t hi n t he Di vi si on of Cent r al Management and Suppor t . Thi s r educt i on was al so t aken on a non- r ecur r i ng basi s dur i ng FY 2009- 10 t o meet t he pr oj ect ed r evenue shor t f al l .


($1,228,875)

-20.00

21 REl i mi nat es posi t i ons wi t hi n t he Di vi si on of Cent r al Management .Position Eliminations

($39,430)22 REl i mi nat es f undi ng f or t he Pest i ci de Task For ce act i vi t i es. These act i vi t i es ar e pai d f or t hr ough t he f eder al NC Far mwor ker heal t h gr ant .

Pesticide Task Force

($183,833)23 REl i mi nat es St at e appr opr i at i on f or demonst r at i on gr ant s- -obesi t y, st r oke pr event i on, and emer gency r oom di ver si on- - t o t est al t er nat i ve met hods t o managi ng t he ut i l i zat i on of heal t h car e ser vi ces. demonst r at i on pr oj ect s wi t hi n t he CCNC pr ogr am.

Community Care of NC Grants

($190,749)24 RReduces f undi ng f or t he Rur al Heal t h Loan Repayment Pr ogr am. Thi s r educt i on amount r epr esent s t hr ee cont r act s f or heal t h pr ovi der s.

Rural Health Loan Repayment Program



$100,00025

NRPr ovi des f undi ng f or a gr ant - i n- ai d t o Speci al Ol ympi cs.Special Olympics

( 4.0) Division of Public Health

($11,000)26 RReduces st at e appr opr i at i ons f or l ocal heal t h depar t ment ser vi ce cont r act s t hat meet t he l anguage needs of cl i ent s.

Minority Health Interpreter Services

($85,895)27 RReduce St at e appr opr i at i ons f or st at e and l ocal heal t h depar t ment cont r act s by l ess t han 3 per cent .

Community Focused Eliminating Health Disparities Contracts

($400,601)28 RReduces St at e appr opr i at i ons r emai ni ng i n t wo cont r act s-Per i nat al Out r each and Fami l y Heal t h Resour ce Li ne- t hat have been el i mi nat ed.

Division of Public Health Contracts

($650,000)29

NRSuspends f or an addi t i onal year t he Di vi si on of Publ i c Heal t h' s eval uat i on and accr edi t at i on of Local Heal t h Depar t ment s ( LHDs) . Cent er s f or Communi cabl e Di sease and Pr event i on i s schedul ed t o l aunch a nat i onwi de ef f or t t o accr edi t l ocal heal t h depar t ment s t o nat i onal st andar ds i n 2011.

Accreditation of Local Health Departments

($283,477)30 RRepl ace St at e appr opr i at i ons wi t h Medi cai d f undi ng f or Medi cai d-el i gi bl e chi l dr en r equi r i ng a di et of met abol i c f oods.

Medicaid Funding for WIC Metabolic Foods

($900,000)

-27.00

31 REl i mi nat es 27 posi t i ons i n Di vi si on of Publ i c Heal t h.Position Eliminations

($443,530)32 RReduces St at e appr opr i at i ons f or equi pment , t r avel , and suppl i es at Di vi si on of f i ces.

Operations Reduction



($15,894,853)33 REl i mi nat es St at e appr opr i at i on f or t he pur chase of vacci nes, f or whi ch heal t h car e pr ovi der s, i ncl udi ng l ocal heal t h depar t ment s, can be bi l l i ng heal t h i nsur er s f or r ei mbur sement . Nor t h Car ol i na Heal t h I nsur er s r ei mbur se f or t he f ul l ser i es of st andar d i mmuni zat i ons r ecommended by Cent er s f or Di sease Cont r ol and Pr event i on ( CDC) and t he Amer i can Academy of Fami l y Physi ci ans; and r equi r ed by t he Nor t h Car ol i na I mmuni zat i on Pr ogr am.

Immunization Changes

($2,600,000)34 ROf f set s Gener al f unds wi t h over r eal i zed r ecei pt s f r om Medi cai d. Thi s pr ogr am has been i ncr easi ng i t s t hi r d par t y col l ect i ons.

Children's Development Services Agency

$1,000,00035 RPr ovi des f unds t o hi r e 20 addi t i onal school nur ses t o br i ng t he t ot al number of school heal t h nur ses suppor t ed by t he Di vi si on of Publ i c Heal t h t o 265. Thi s i s i n addi t i on t o t he 20 school nur ses pr ovi ded f or i n SFY 2010- 11 i n S. L. 2009- 451, Sec. 10. 24.

School Health Nurses

$14,177,63236 RPr ovi des St at e f unds t o cont i nue t o ser ve peopl e i n t he AI DS Dr ug Assi st ance Pr ogr am who ar e enr ol l ed as of Jul y 1, 2010. These f unds wi l l al l ow el i gi bl e i ndi vi dual s wi t h annual i ncomes of up t o 125% FPL, who ar e on t he wai t i ng l i st as of Jul y 1, 2010 t o be enr ol l ed. To t he degr ee t hat f unds ar e avai l abl e, addi t i onal peopl e wi l l be enr ol l ed i n t he pr ogr am.

AIDS Drug Assistance Program

( 5.0) NC Health Choice

($114,550)37 RDi r ect s t he Heal t h Choi ce Pr ogr am t o cont r act wi t h Depar t ment of Cor r ect i on f or opt i cal suppl i es.

Optical Supplies

$59,47538 RPr ovi des St at e f unds f or t hr ee st af f t o t r ansi t i on t he admi ni st r at i on of NC Heal t h Choi ce f r om t he St at e Heal t h Pl an t o t he Di vi si on of Medi cal Assi st ance. The st af f i ncl udes t wo t i me-l i mi t ed empl oyees f or cl i ni cal pol i cy and pr ovi der enr ol l ment and one per manent empl oyee f or pr ogr am i nt egr i t y act i vi t i es.

NC Health Choice Transition Staff



$6,500,00039 RPr ovi des St at e appr opr i at i on t o i ncr ease enr ol l ment i n Heal t h Choi ce by 2% or 2, 750 chi l dr en f or a t ot al of 137, 789 chi l dr en ser ved by t he pr ogr am.

NC Health Choice Enrollment

( 6.0) Division of Medical Assistance

($45,000,000)40 RPr ovi des savi ngs i n over al l Medi cai d expendi t ur es t hr ough t he expanded ef f or t s of t he Communi t y Car e Net wor k of Nor t h Car ol i na ( CCNC) . DHHS cont r act s wi t h CCNC t o manage ut i l i zat i on of Medi cai d ser vi ces. Savi ngs wi l l be gener at ed by expandi ng CCNC' s car e management pr ogr ams i n hospi t al di schar ge, ment al heal t h; pal l i at i ve car e, and phar macy. The i mpr oved I nf or mat i cs syst em wi l l enhance dat a i nt egr at i on, anal yt i cs, and r epor t i ng, i ncr easi ng per f or mance and cost savi ngs.

CCNC Savings

($292,974)41 RTr ansi t i ons pr egnant women r ecei vi ng ser vi ces t hr ough Local Heal t h Depar t ment s f r om Mat er nal Out r each Wor ker s ( MOW) t o ser vi ces pr ovi ded by Mat er nal Car e Coor di nat or s ( MCC) and Chi l dr en Ser vi ces Coor di nat or s ( CSC) . MCC and CSC per sonnel ar e r equi r ed t o have a Bachel or ' s Degr ee.

Maternal Outreach Workers (MOW)

($5,566,096)42 RGener at es savi ngs by i mpl ement i ng var i ous phar macy pr ogr am i mpr ovement s, i ncl udi ng col l ect i ng dr ug r ebat es on cer t ai n pr escr i pt i on dr ug cl ai ms ( $3. 6 mi l l i on) ; st oppi ng r ei mbur sement f or l ost pr escr i pt i ons ( $252, 000) ; r equi r i ng pr i or appr oval on br and dr ugs when ' medi cal l y necessar y' i s wr i t t en on t he pr escr i pt i on ( $938, 700) ; cr eat i ng a speci al t y dr ug net wor k f or di spenser s of cer t ai n hi gh cost dr ugs ( $316, 040) ; r equi r i ng pr i or appr oval on al l r equest s f or t he dr ug Synagi s ( $376, 253) ; and el i mi nat i ng t he i nef f ect i ve FORM phar macy pr ogr am ( $83, 103) .

Pharmacy Program Improvements

($777,138)43 REl i mi nat es Medi cai d cover age of pr escr i pt i ons f or vi t ami ns and mi ner al s t hat ar e avai l abl e over - t he count er , whi l e cont i nui ng t o r ei mbur se f or mul t i - vi t ami n pr escr i pt i ons f or pr egnant women.

Prescription Vitamins



($603,000)44 RReduces Gener al Fund appr opr i at i ons f or Medi cai d phar macy by l ocki ng Medi cai d enr ol l ees wi t h a nar cot i c pr escr i pt i on ( e. g. Vi codi n, Benzodi azi pi ne) i nt o a si ngl e phar macy and si ngl e doct or t o pr event phar macy and doct or shoppi ng and nar cot i cs abuse.

Narcotic Prescriptions

($10,000,000)45 RGener at es savi ngs by addi ng ment al heal t h dr ugs t o t he Pr ef er r ed Dr ug Li st ( PDL) , whi ch wer e pr evi ousl y not par t of t he PDL savi ngs, and al so r equi r es pr i or aut hor i zat i on but onl y f or of f -l abel pr escr i bi ng of ment al heal t h dr ugs.

Mental Health Drug Savings

($1,560,600)46 RExpands t he capi t at ed behavi or al heal t h pi l ot pr ogr am t o t wo addi t i onal l ocal management ent i t i es ( LMEs) , ef f ect i ve Januar y 1, 2011. Ef f or t i s based on t he Pi edmont Behavi or al Heal t h pi l ot .

Capitated Behavior Health Pilot Programs

($933,547)47 REst abl i shes Pr i or Aut hor i zat i on f or Chi l dr en' s Out pat i ent Ment al Heal t h Ser vi ces at 16 vi si t s ver sus t he cur r ent 26 vi si t s.

Prior Authorization for Children's Outpatient Mental Health Services

($7,730,207)48 RI mpl ement s i ndependent assessment s on var i ous ment al heal t h ser vi ces i n t he Medi cai d pr ogr am. Pr i or t o t he ser vi ce bei ng del i ver ed, an i ndependent assessment wi l l be conduct ed t o ensur e t he pr oper ut i l i zat i on of ser vi ces.

Independent Assessments on Mental Health Services

($41,000,000)49 RModi f i es t he communi t y suppor t t eam ( CST) ser vi ce f or adul t s t o l i mi t t he number of hour s f r om 18 per week t o 5, and r educes t he r at e f r om $15. 60 per uni t t o $11. 80 per uni t . Savi ngs al so r ef l ect a del ay i n t he i mpl ement at i on of t he Peer Suppor t pr ogr am by si x mont hs, ef f ect i ve Januar y 1, 2011.

Enhanced Mental Health Changes



($59,805,207)50 RRef or ms t he I n- Home Per sonal Car e Ser vi ces pr ogr am t o pr ovi de car e t o t hose i ndi vi dual s at gr eat est r i sk of needi ng i nst i t ut i onal car e. Ref or m i ncl udes t he el i mi nat i on of i n- home PCS ser vi ces f or adul t s and t he cr eat i on of a new pr ogr am f or adul t s wi t h t he most i nt ense needs - t hose needi ng assi st ance wi t h t hr ee or mor e act i vi t i es of dai l y l i vi ng ( ADLs) .

In-Home Personal Care Services

($16,982)51 RGener at es savi ngs by i mpl ement i ng pol i cy i mpr ovement s i n t he dent al pr ogr am f or chi l dr en, i ncl udi ng i mpl ement i ng l i mi t s on i magi ng f or chi l dr en under t he age of 6 year s of age; l i mi t i ng t hr ee f i l m r adi ogr aphs t o chi l dr en aged 13 and ol der ; and l i mi t i ng t he r ei mbur sement f or pr i mar y t eet h composi t es.

Dental Program Improvements

($3,000,000)52 RExpands t he HI PP Pr ogr am, i n whi ch Medi cai d pays f or empl oyer -based heal t h i nsur ance cost s on behal f of Medi cai d- el i gi bl e i ndi vi dual s when i t i s l ess expensi ve t han Medi cai d cover age.

Health Insurance Premium Payment Program (HIPP)

($5,000,000)53 REl i mi nat es Medi cai d r ei mbur sement of ' never event s' i n hospi t al i npat i ent set t i ngs. ' Never event s' ar e cer t ai n t ypes of medi cal i ssues t hat devel op or ar e acqui r ed whi l e a per son i s i n a hospi t al , but shoul d have been pr event ed. The pol i cy change br i ngs Medi cai d i n l i ne wi t h Medi car e r ei mbur sement .

Reimbursement of 'Never Events'

($125,148)54 REl i mi nat es cover age of cer t ai n t ypes of sur ger y, i ncl udi ng br east r educt i on and mast opl exy ( br east l i f t ) sur ger y ( $23, 420) ; panni cul ect omy sur ger y ( $12, 328) ; and sur ger y f or sever e obesi t y ( $89, 400) .

Coverage of Certain Types of Surgery

($4,530,404)55 RI ncr eases cur r ent copayment amount s t o a maxi mum of $3. 40, and expands col l ect i on of copayment s t o l ocal heal t h depar t ment s and out pat i ent behavi or al heal t h ser vi ces. I n addi t i on, i mpl ement s a $6. 80 copayment f or nonemer gency hospi t al emer gency r oom ( ER) vi si t s.

Medical Assistance Co-Payments



($36,188,013)56 RGener at es savi ngs t hr ough new Pr ogr am I nt egr i t y i ni t i at i ves, i ncl udi ng Medi cai d SWAT t eams f or on- si t e i nvest i gat i ons, st r engt heni ng Medi cai d f r aud l aws, i nnovat i ve t echnol ogy t o det ect f r aud and abuse, and pr epayment r evi ews f or quest i onabl e pr ovi der s.

Program Integrity Savings

($1,000,000)57 R

Gener at es savi ngs by doubl i ng t he Medi cai d I nvest i gat i ve Uni t st af f at t he AGO t o expand t he pr osecut i on of Medi cai d f r aud and abuse. Addi t i onal st af f wi l l ensur e i ncr eased pr osecut i on and addi t i onal Medi cai d f unds r ecover ed f r om f r audul ent pr ovi der s.

Attorney General's Office (AGO) Medicaid Investigative Unit Staff Savings

($180,250)58 RReduces payment f or dupl i cat i ve or unnecessar y admi ni st r at i ve f unct i ons per f or med under t he Medi cai d cont r act wi t h HP, i ncl udi ng el i mi nat i ng t he pr ocessi ng of dupl i cat i ve cl ai ms and pr ocessi ng pr i or appr oval ( PA) on cl ai ms t hat do not r equi r e PA.

Contract Reductions

($482,111,583)59

NRReduces Gener al Fund appr opr i at i ons ant i ci pat i ng t hat Congr ess wi l l pass a l aw ext endi ng by si x mont hs t he enhanced f eder al mat chi ng f unds pr ovi ded under t he Amer i can Recover y and Rei nvest ment Act ( ARRA) t hr ough June 2011.

ARRA Federal Enhanced Matching Funds Extension

($79,419,834)60

NRReduces Gener al Fund appr opr i at i ons based on savi ngs f r om enhanced f eder al mat chi ng f unds pr ovi ded by t he Amer i can Recover y and Rei nvest ment Act ( ARRA) . The enhanced f eder al f unds of f set St at e f undi ng f or Medi cai d pai d t o cover a por t i on of pr escr i pt i on dr ug cost s pai d by Medi car e Par t D f or dual l y-el i gi bl e ( Medi cai d/ Medi car e) i ndi vi dual s. Savi ngs al so ant i ci pat e t hat Congr ess wi l l pass l egi sl at i on ext endi ng t he enhanced r at e f or si x mont hs, t hr ough June 2011.

ARRA Medicare Part D Clawback Savings



$430,564,71361 RI ncr eases Gener al Fund appr opr i at i ons t o t he FY 2010- 11 Medi cai d budget t o account f or 5. 6% gr owt h i n el i gi bl es above cur r ent l evel s ( $5, 054, 765) ; consumpt i on ( $121, 867, 913) ; i nf l at i on f or cost - set t l ed pr ovi der s ( $5, 568, 149) ; new ser vi ces and mi x of ser vi ces ( $16, 094, 752) ; ant i ci pat ed cost of f l u ( $7, 985, 000) ; r educt i ons not achi eved i n t he pr evi ous f i scal year ( $225, 537, 633) ; and i ncr eased appr opr i at i ons due t o t he change i n t he Feder al Medi cal Assi st ance Per cent age ( FMAP) ( $48, 456, 502) .

Medicaid Rebase

$5,000,00062 RI ncr eases f undi ng f or adul t car e homes based on acui t y l evel s f or t he per sonal car e ser vi ces pr ovi ded i n adul t car e homes. Fundi ng wi l l assi st i n t he devel opment of a 1915( c) Medi cai d Assi st ed Li vi ng wai ver f or i ndi vi dual s t hat r esi de i n adul t car e homes t hat meet ski l l ed nur si ng l evel of car e and cur r ent l y r ecei ve St at e Count y Speci al Assi st ance ( SA) .

Adult Care Home Funds

( 7.0) Division of Health Service Regulation

($92,038)$22,797

-2.00

63 RNRCl oses Lexi ngt on of f i ce and home- bases l i censur e and

cer t i f i cat i on st af f , el i mi nat i ng oper at i ng cost s and t wo admi ni st r at i ve posi t i ons.

Home Base Licensure and Certification Staff/Lexington Office

($104,739)64 RGener at es savi ngs by col l ect i ng f eder al Medi cai d r ecei pt s t o suppor t l i censur e and cer t i f i cat i on act i vi t i es f or home car e agenci es. Si nce home car e agenci es ar e Medi cai d pr ovi der s, t hi s wi l l al l ow DHSR t o col l ect f eder al Medi cai d r ecei pt s.

Medicaid Funding for Home Care Licensure and Certification

($110,575)65 REst abl i shes a $25 f ee f or t he t est i ng and mat er i al s pr ovi ded t o adul t car e home medi cat i on ai des t o hel p def r ay t he cost s of admi ni st er i ng t he t est s.

Fee for Adult Care Home Medication Aide Testing

($35,240)66 REst abl i shes a $50 adul t car e home admi ni st r at or t est f ee and a $30 adul t car e home admi ni st r at or cer t i f i cat e r enewal f ee. Cer t i f i cat e r enewal s occur ever y t wo year s.

Fees for Adult Care Home Administrator Testing and Certificates



($1,741,551)67

NRRepl aces Gener al Fund appr opr i at i ons wi t h f eder al r ecei pt s i n t he Nur si ng Home Li censur e and Cer t i f i cat i on Sect i on on a nonr ecur r i ng basi s. The r ecei pt s come f r om ci vi l monet ar y penal t i es assessed agai nst nur si ng homes.

Nursing Home Licensure and Certification Funds

( 8.0) Division of Social Services

($492,000)68 RReduces f undi ng f or equi pment , t r avel , and suppl i es wi t hi n t he Di vi si on of Soci al Ser vi ces. Thi s r educt i on was al so t aken on a non- r ecur r i ng basi s dur i ng FY 2009- 10 t o meet t he pr oj ect ed r evenue shor t f al l .


($150,000)69 RReduces over - budget ed f unds f or adul t car e home case management ser vi ces, per hi st or i cal r ever si ons.

Adult Care Home Case Management

($959,632)

-15.00

70 REl i mi nat es posi t i ons wi t hi n t he Di vi si on of Soci al Ser vi ces.Position Eliminations

($192,166)71 REl i mi nat es f undi ng f or cont r act ed i nst al l at i on and suppor t f or Suppl ement al Nut r i t i on Assi st ance Pr ogr am ( SNAP) El ect r oni c Benef i t Tr ansf er ( EBT) i nf r ast r uct ur e at Far mer s Mar ket s. Feder al f unds ar e avai l abl e t o suppor t t hi s i ni t i at i ve, and t her e has been l i mi t ed vendor act i vi t y t o dat e.

Economic Services Contract

($1,282,777)

-33.00

72 RSt r eaml i nes f unct i ons wi t hi n t he Chi l d Suppor t Sect i on and r educes oper at i ng f unds t o coi nci de wi t h t he el i mi nat i on of si xt een St at e- oper at ed Chi l d Suppor t Enf or cement of f i ces. Ef f ect i ve Jul y 1, 2010, S. L. 2009- 451 t r ansi t i ons f i nanci al and admi ni st r at i ve r esponsi bi l i t i es f or l ocal chi l d suppor t enf or cement t o t went y- ei ght count i es pr esent l y ser ved by t he St at e of f i ces. Under t hi s pr oposal , appr oxi mat el y t went y f i l l ed and t hi r t een vacant posi t i ons wi t hi n t he cent r al Chi l d Suppor t Sect i on ar e el i mi nat ed.

Child Support Enforcement Consolidation



($375,000)73 RRepl aces r ecur r i ng gr ant s- i n- ai d f or t he t went y- t wo accr edi t ed Chi l d Advocacy Cent er s st at ewi de. Thi s r educt i on i s of f set by a non- r ecur r i ng al l ocat i on of Soci al Ser vi ces Bl ock Gr ant r ecei pt s f or ser vi ces pr ovi ded by t he Chi l d Advocacy Cent er s dur i ng FY 2010- 11.

Child Advocacy Centers

($160,507)($1,584,125)

74 RNRReduces f undi ng f or NC REACH schol ar shi ps per pr oj ect ed gr owt h

i n awar ds dur i ng FY 2010- 11. Thi s non- r ecur r i ng r educt i on l eaves $1, 584, 125 avai l abl e t o suppor t schol ar shi ps i n FY 2010- 11. I n addi t i on, f undi ng f or cont r act ual case management ser vi ces i s r educed commensur at e wi t h act ual FY 2009- 10 obl i gat i ons.

NC REACH Post-Secondary Scholarship Program

($420,804)75 REl i mi nat es f undi ng f or t wel ve chi l d and f ami l y t eam f aci l i t at or posi t i ons l ocat ed i n t he f ol l owi ng count i es: Anson, Ber t i e, Dupl i n, Gr eene, Hal i f ax, Hoke, Hyde, Mar t i n, McDowel l , Nash, Paml i co, and Vance. These f unds suppor t f aci l i t at or posi t i ons est abl i shed f or pi l ot pr ogr ams i n t he above count i es. The r emai ni ng ei ght y- ei ght count i es have ut i l i zed ot her r esour ces t o hi r e f aci l i t at or s.

Child and Family Teams

($1,238,821)76 REl i mi nat es f undi ng f or 1) Mul t i pl e Response ( $229, 086) and Adopt i on Pr ogr ams ( $459, 156) ; 2) Gr ant s- i n- Ai d ( $413, 044) f or chi l d pl acement ser vi ces; and 3) Met hamphet ami ne Tr ai ni ng ( $137, 535) . Thi s r educt i on el i mi nat es f undi ng f or non- mandat ed ser vi ces, conf er ences, and t r ai ni ngs. Addi t i onal l y, because pl acement agenci es r ecei ve st andar di zed r at es f or chi l dr en i n f ost er car e ( st andar di zat i on ef f ect i ve Januar y 2009) , suppl ement ar y gr ant s- i n- ai d ar e no l onger necessar y. Last l y, pr i or Met hamphet ami ne t r ai ni ng and suppor t t o al l count y DSS' have l ed t o t he cr eat i on of communi t y pr ot ocol s, r educi ng t he need f or ongoi ng t r ai ni ng.

Child Welfare Contracts

($2,378,213)77 RRepl aces f undi ng f or El ect i ng Count i es' Wor k Fi r st pr ogr ams wi t h Tempor ar y Assi st ance f or Needy Fami l i es ( TANF) f unds. Thi s r educt i on does not r educe budget ed f unds f or El ect i ng Count i es' Wor k Fi r st Count y Bl ock Gr ant s or Wor k Fi r st Fami l y Assi st ance.

Electing Counties' Work First State Funds



($3,388,044)78 RReduces f undi ng i n accor dance wi t h pr oj ect ed FY 2010- 11 assi st ance l evel s. Count i es' r equi r ement s ar e l i kewi se r educed, due t o equal f i nanci al par t i ci pat i on f or St at e- Count y Speci al Assi st ance. Pr oj ect ed savi ngs ar e t he r esul t of t he Speci al Assi st ance r at e r educt i on t hat t ook ef f ect Oct ober 1, 2009.

State-County Special Assistance

($1,421,552)79

NRReduces f undi ng f or f ost er car e and adopt i on assi st ance payment s per ext ensi on of t he ARRA enhanced f eder al f i nanci al par t i ci pat i on ( FMAP) r at e - base 6. 2 per cent age poi nt i ncr ease f r om Januar y 2011 t hr ough June 2011.

FMAP Extension - Foster Care & Adoption Assistance

80Addi t i onal TANF f unds, t ot al i ng $16, 176, 036, ar e al l ocat ed t o t he Depar t ment of Publ i c I nst r uct i on f or t he Mor e at Four Pr e-ki nder gar t en pr ogr am t o r epl ace an equi val ent r educt i on i n St at e f unds.

Temporary Assistance for Needy Families (TANF) Funds

($450,000)81

NRBudget s pr i or year ear ned r evenue on a non- r ecur r i ng basi s t o of f set an equi val ent r educt i on i n Gener al Fund appr opr i at i ons.


($2,390,896)82 RCont i nues a r educt i on i n St at e f undi ng aut hor i zat i ons f or count i es f or Fost er Car e/ Adopt i on Ti t l e I V- E, Chi l d Pr ot ect i ve Ser vi ces- St at e, and Chi l d Pr ot ect i ve Ser vi ces Ti t l e I V- E. These r educt i ons wer e i mpl ement ed dur i ng FY 2009- 10 t o cover t he pr oj ect ed r evenue shor t f al l .

State Funding Authorizations for Counties

$1,000,00083

NRPr ovi des a non- r ecur r i ng gr ant - i n- ai d t o be equal l y di st r i but ed t o t he si x r egi onal f ood banks wi t hi n Nor t h Car ol i na.

Food Banks

$239,45384 RCont i nues suppor t of t he Chi l d Wel f ar e Educat i on Col l abor at i ve educat i onal assi st ance pr ogr am f or soci al wor k st udent s who commi t t o wor ki ng i n chi l d pr ot ect i ve ser vi ces i n count y depar t ment s of soci al ser vi ces.

Child Welfare Education Collaborative



( 9.0) Office of Education Services

($2,127,065)

-50.00

85 REl i mi nat es posi t i ons wi t hi n t he Of f i ce of Educat i on Ser vi ces.Position Eliminations

($282,991)

-10.00

86 REl i mi nat es t en f i l l ed f ood ser vi ce st af f posi t i ons wi t hi n t he r esi dent i al school s f or t he bl i nd and deaf . The Depar t ment of Publ i c I nst r uct i on' s Chi l d Nut r i t i on Sect i on, usi ng USDA st andar ds, audi t ed t he t hr ee r esi dent i al school s' f ood ser vi ce oper at i ons and det er mi ned t hat f ood ser vi ce oper at i ons wer e over -st af f ed. Under USDA st andar ds, meal s per l abor hour shoul d aver age bet ween 15 and 20. Pr esent r at i os at t he r esi dent i al school s ar e appr oxi mat el y 1. 7 meal s per l abor hour .

Food Service Staffing

($58,500)87 RReduces f undi ng f or t empor ar y wages wi t hi n t he Of f i ce of Educat i on Ser vi ces.

Temporary Staffing

($605,386)

-7.00

88 RConsol i dat es f unct i ons among r esi dent i al school admi ni st r at i ve posi t i ons, r equi r i ng t he di r ect or s of t he r esi dent i al school s t o assume f ul l over si ght of academi c and busi ness oper at i ons.

El i mi nat es t wo f i l l ed and one vacant posi t i on wi t hi n t he Nor t h Car ol i na School f or t he Deaf :School Pr i nci pal , #60039101 - $101, 516School Assi st ant Pr i nci pal , #60039082 - $88, 786School Assi st ant Pr i nci pal , #60039080 - $88, 804

El i mi nat es t wo f i l l ed posi t i ons wi t hi n t he East er n Nor t h Car ol i na School f or t he Deaf : School Pr i nci pal , #60039225 - $108, 563School Assi st ant Pr i nci pal , #60039138 - $85, 317

El i mi nat es t wo f i l l ed posi t i ons wi t hi n t he Gover nor Mor ehead School f or t he Bl i nd:School Pr i nci pal , #60039380 - $71, 636School Assi st ant Pr i nci pal , #60039392 - $60, 764

Residential School Administrative Staffing



($46,459)89 RReduces f undi ng f or t r ai ni ng of ear l y i nt er vent i on and publ i c school pr of essi onal s. Thi s i s a 4. 8% r educt i on i n t ot al f undi ng f or cont r act ual ser vi ces pr ovi ded by Begi nni ngs, I nc, l eavi ng $919, 730 i n r ecur r i ng f undi ng.

Beginnings, Inc. Contract

($2,492,279)90 REl i mi nat es t he Of f i ce of Educat i on Ser vi ces Cent r al Of f i ce, Resour ce Suppor t , Gover nor Mor ehead School Out r each, Deaf / Bl i nd, and Except i onal Chi l dr en Suppor t pr ogr ams.

The over si ght of t he Nor t h Car ol i na School f or t he Deaf , East er n Nor t h Car ol i na School f or t he Deaf , Gover nor Mor ehead School f or t he Bl i nd, Gover nor Mor ehead Pr eschool , Ear l y I nt er vent i on Ser vi ces - Pr eschool , and Fami l y Resour ce Cent er pr ogr ams i s t r ansf er r ed t o t he Depar t ment of Publ i c I nst r uct i on, Except i onal Chi l dr en Di vi si on by Type I t r ansf er .

Office of Education Services

(11.0) Divisions of Services for the Blind and Services for the Deaf and Hard of Hearing

($287,807)

-1.00

91 RMer ges t he Speci al Assi st ance f or t he Bl i nd sub- pr ogr am pr esent l y admi ni st er ed by t he Di vi si on of Ser vi ces f or t he Bl i nd wi t h t he St at e- Count y Speci al Assi st ance pr ogr am wi t hi n t he Di vi si on of Agi ng and Adul t Ser vi ces.

Special Assistance for the Blind Consolidation

($176,256)($150,428)

92 RNRBudget s r ecei pt s wi t hi n t he Di vi si on of Ser vi ces f or t he Bl i nd

as f ol l ows: 1) Soci al Secur i t y Admi ni st r at i on r ecei pt s ( $150, 428) per successf ul vocat i onal r ehabi l i t at i on cl i ent empl oyment out comes on a non- r ecur r i ng basi s; and 2) Ot her vendi ng r ecei pt s ( $155, 829) f or i ndependent l i vi ng ser vi ces.

I n addi t i on, $20, 417 i n Tel ecommuni cat i ons Rel ay Tr ust Fund r ecei pt s ar e budget ed wi t hi n t he Di vi si on of Ser vi ces f or t he Deaf and Har d of Hear i ng f or gener al admi ni st r at i on. These addi t i onal r ecei pt s wer e i dent i f i ed dur i ng FY 2009- 10 t hr ough updat es t o DHHS cost al l ocat i on pl ans.

These cumul at i ve r ecei pt s of f set equi val ent r educt i ons i n Gener al Fund appr opr i at i ons.




($93,421)

-2.00

93 REl i mi nat es posi t i ons wi t hi n t he Di vi si ons of Ser vi ces f or t he Bl i nd, Deaf and Har d of Hear i ng.

Position Eliminations

$75,00094

NRFunds cont r act ed el ect r oni c i nf or mat i on ser vi ces, whi ch al l ow vi sual l y- i mpai r ed per sons t o access pr i nt medi a t hr ough t el ephone syst ems.

Accessible Electronic Information for Blind and Disabled Persons

(12.0) Division of Vocational Rehabilitation

($516,798)

-8.00

95 REl i mi nat es posi t i ons wi t hi n t he Di vi si on of Vocat i onal Rehabi l i t at i on Ser vi ces.

Position Eliminations

($2,585,674)96

NRReduces f undi ng f or vocat i onal r ehabi l i t at i on ( VR) ser vi ces. Thi s r educt i on r ef l ect s mai nt enance of ef f or t r equi r ement s f or t he VR Basi c Suppor t Gr ant , and l eaves $22, 957, 317 i n appr opr i at i ons f or case ser vi ces. DHHS i mpl ement ed a non-r ecur r i ng r educt i on of $5, 513, 648 dur i ng FY 2009- 10 t o manage t he pr oj ect ed r evenue shor t f al l . DVRS wi l l budget f eder al f unds mat ched i n pr i or year s t o par t i al l y of f set t hi s non- r ecur r i ng r educt i on i n FY 2010- 11 appr opr i at i ons.

Aid & Public Assistance - Vocational Rehabilitation Basic Support

$177,230,126

($582,626,259)

-182.00

Budget Changes



R

NR


NATURAL&

ECONOMICRESOURCES

Section H

Agriculture and Consumer Services

Budget Changes

$60,559,608

GENERAL FUND

Senate Subcommittee on Natural and Economic Resources


Department-wide

($440,218)

-9.00

1 REl i mi nat es 9. 0 vacant posi t i ons acr oss t he Depar t ment . El i mi nat ed posi t i ons i ncl ude:

#60012677 Resear ch Techni ci an#60011868 Technol ogy Suppor t Anal yst#60011886 Pr ocessi ng Assi st ant I I I#60011902 Pr ocessi ng Assi st ant I I I#60011965 Food I nspect or#65006175 Qual i t y Assur ance Manager#60012160 Vet Lab Assi st ant I#60012115 Li vest ock Compl i ance Of f i cer#60095971 Pr ocessi ng Assi st ant I I I

Vacant Positions

($84,036)2 RReduces t he Depar t ment ' s non- sal ar y I T budget by 3%. Thi s r educt i on i s based on t he aver age di f f er ence bet ween budget ed and act ual expendi t ur es f or t he past f our f i scal year s.

IT Budget Reductions

($70,995)3 RReduces t he budget f or payment s t o t he Mot or Fl eet Management ( MFM) Di vi si on by 7. 5%. Thi s decr ease r ef l ect s t he r ecent r at e r educt i on i mpl ement ed by MFM.

Travel Budget Reductions

($223,520)4 RReduces t he equi pment budget i n t he Depar t ment by $223, 520. Thi s r epr esent s appr oxi mat el y a 4. 5% r educt i on t o t he Depar t ment ' s equi pment budget .

Equipment Budget Reductions

Page H - 1Agriculture and Consumer Services

Senate Subcommittee on Natural and Economic Resources FY 10-11

Ag Statistics

($32,500)5 RReduces t he budget f or suppl i es and equi pment wi t hi n t he Ag St at i st i cs Di vi si on.

Operating Expense Reduction

Emergency Programs

($15,000)6 RReduces f unds f or cont r act s wi t hi n t he Emer gency Pr ogr ams Di vi si on by $15, 000, appr oxi mat el y 12% of t ot al f unds f or mi scel l aneous cont r act ual ser vi ces.

Contracts Funds

Food and Drug Protection

($151,481)

-3.00

7 RReduces t he Egg Law Pr ogr am by el i mi nat i ng 3. 0 posi t i ons and associ at ed oper at i ng. One posi t i on wi l l r emai n and wi l l f ocus on i nvest i gat i ons and consumer compl ai nt s. Ot her i nspect or s wi t hi n t he Food and Dr ug Pr ot ect i on Di vi si on wi l l assume Egg Law i nspect i on dut i es wher e possi bl e. The el i mi nat ed posi t i ons i ncl ude:

#60011637 Egg Law I nspect or#60011638 Egg Law I nspect or#60011639 Egg Law I nspect or

NC Egg Law Program

$710,687

7.00

8 RConsol i dat es t he Gr ade " A" Mi l k Pr ogr am i n t he Di vi si on of Envi r onment al Heal t h i n t he Depar t ment of Envi r onment and Nat ur al Resour ces wi t h t he Dai r y Pr ogr am. The t r ansf er i ncl udes 7. 0 posi t i ons and $710, 687 i n Gener al Fund appr opr i at i ons.

Grade "A" Milk Program

($250,000)9 RRequi r es t he Ani mal Feed & Pet Food Br anch wi t hi n t he Food & Dr ug Pr ot ect i on Di vi si on t o budget over r eal i zed r ecei pt s. The Br anch has over r eal i zed r ecei pt s by at l east $250, 000 each year si nce FY 2006- 07.

Over Realized Receipts



Food Distribution

($50,000)10 RFund shi f t s a por t i on of t he di esel f uel budget wi t hi n t he Food Di st r i but i on di vi si on t o Feder al r ecei pt s. Feder al r ecei pt s f und appr oxi mat el y 45% of t he Di vi si on' s oper at i ons.

Fuel Budget to Federal Receipts

General Administration

($2,376)11 RReduces t he r ecur r i ng pass- t hr ough appr opr i at i on f or t he FFA Foundat i on, I nc by 5%, l eavi ng $45, 144 r ecur r i ng.

FFA Foundation, Inc

Plant Industry

($20,000)12 RI ncr eases phyt osani t ar y f ees wi t hi n t he Pl ant I ndust r y Di vi si on. Subchapt er 48A of Nor t h Car ol i na Admi ni st r at i ve Code, Expor t Cer t i f i cat i on I nspect i on Fee, di r ect l y t i es t he Di vi si on' s f ee st r uct ur e f or phyt osani t ar y i nspect i ons t o t he f eder al phyt osani t ar y f ee st r uct ur e. Thi s f ee i ncr ease br i ngs t he Depar t ment ' s f ee st r uct ur e i n l i ne wi t h USDA.

Phytosanitary Fees

Public Affairs

($25,000)13 RReduces f undi ng f or publ i cat i on of t he Ag Revi ew by $25, 000 and di r ect s t he Depar t ment t o publ i sh t he Ag Revi ew f ewer t i mes annual l y. The Ag Revi ew i s cur r ent l y publ i shed 11 t i mes a year . Thi s r epr esent s a 15% r educt i on t o t he por t i on of t he Publ i c Af f ai r s budget t hat i s spent t o pr oduce t he Ag Revi ew.

Ag Review Publication

($1,188)14 RReduces t he r ecur r i ng pass- t hr ough appr opr i at i on f or Ag i n t he Cl assr oom by 5%, l eavi ng $22, 572 r ecur r i ng.

Ag in the Classroom



Structural Pest and Pesticides

($726,324)

-15.00

15 REl i mi nat es Gener al Fund suppor t f or t he Pest i ci de Sect i on by r equi r i ng t he Sect i on t o budget over r eal i zed r ecei pt s and i ncr easi ng f ees. Thi s change r equi r es t hat 15. 0 posi t i ons be t r ansf er r ed t o r ecei pt suppor t .

Pesticide Section to Receipt Support

($100,000)16 RI ncr eases f ees f or cer t i f i ed appl i cat or and l i cense exams, st r uct ur al l i censes, st r uct ur al cer t i f i ed appl i cat or car ds, and r egi st er ed t echni ci an car ds.

Structural Pest Section Fees

Veterinary Services

($431,798)

-7.00

17 REl i mi nat es t he Rose Hi l l Vet Lab. The Rose Hi l l Lab i s t he l east act i ve and ol dest of t he Di vi si on' s f i ve vet er i nar y l abs. El i mi nat i on of t hi s l ab wi l l st r eaml i ne l abor at or y pr ocesses and el i mi nat e an under per f or mi ng f aci l i t y. Thi s wi l l el i mi nat e 7. 0 posi t i ons, i ncl udi ng:

#60012203 Vet er i nar i an#60012204 Vet er i nar i an#60012205 Pr ocessi ng Assi st ant I I I#60012206 Pr ocessi ng Assi st ant I I I#60012208 Vet Lab Assi st ant I#60012209 Medi cal Lab Technol ogi st I #60012214 Medi cal Lab Assi st ant I I

Rose Hill Vet Lab

($25,000)18 RDi r ect s t he Vet er i nar y Ser vi ces Di vi si on t o i ncr ease t he use of onl i ne r epor t i ng of vet l ab r esul t s. The Di vi si on shal l def aul t t o onl i ne r epor t i ng of vet r esul t s but wi l l pr ovi de pr i nt ed r esul t s upon r equest . Thi s $25, 000 r educt i on r educes t he post age and pr i nt i ng budget f or t he Vet er i nar y Ser vi ces Di vi si on by appr oxi mat el y 25%.

Online Reporting of Lab Results

($1,938,749)

-27.00

Budget Changes


Revised Total Budget $58,620,859

R


Labor

Budget Changes

$17,400,863

GENERAL FUND



Department-wide

($280,280)19 RReduces sal ar y r eser ve acr oss t he Depar t ment by $280, 280. Sal ar y Reser ve i s t he di f f er ence bet ween t he budget ed amount f or a posi t i on and t he act ual sal ar y pai d.

Salary Reserve

($32,778)20 RReduces t he budget f or payment s t o t he Mot or Fl eet Management ( MFM) Di vi si on by 7. 5%. Thi s decr ease r ef l ect s t he r ecent r at e r educt i on i mpl ement ed by MFM.

Travel Budget Reductions

($38,295)21 RReduces t he oper at i ng budget acr oss t he Depar t ment by $38, 295.Operating Expense Reduction

Commissioner's Office

($52,784)

-1.00

22 RFund shi f t s an admi ni st r at i ve posi t i on wi t hi n t he Commi ssi oner ' s Of f i ce t o f ees gener at ed by t he El evat or and Amusement Devi ce and Boi l er I nspect i on Bur eaus.

Administrative Position to Fee Support

Occupational Safety & Health

($341,184)23 RRepl aces Gener al Fund appr opr i at i ons f or t he Occupat i onal Saf et y & Heal t h Di vi si on wi t h f eder al r ecei pt s. I n FY 2008- 09, f eder al r ecei pt s account ed f or appr oxi mat el y 35. 5% of t he budget f or Occupat i onal Saf et y & Heal t h.

Operating Expenses to Federal Receipts

Page H - 5Labor


Standards and Inspections

($666,000)

-7.00

24 RReduces Gener al Fund appr opr i at i on f or t he Appr ent i ceshi p pr ogr am by 50% and f und shi f t s 7. 0 posi t i ons t o r ecei pt s. I f suf f i ci ent r ecei pt s ar e not r ecei ved t o suppor t t he posi t i ons, t hese posi t i ons shal l be el i mi nat ed.

Apprenticeship Program

($1,411,321)

-8.00

Budget Changes


Revised Total Budget $15,989,542

R

Page H - 6Labor

Environment & Natural Resources

Budget Changes

$190,399,356

GENERAL FUND



(1.0) Department-wide

($1,046,094)25 RReduces t he Depar t ment ' s non- sal ar y I T budget by 7. 3%. Thi s r educt i on i s based on t he aver age di f f er ence bet ween budget ed and act ual expendi t ur es f or t he past f our f i scal year s.

IT Budget Reductions

($120,432)26 RReduces t he budget f or payment s t o t he Mot or Fl

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