§ 143C-3-5. Budget recommendations and budget message. - North Carolina Statutes

§ 143C‑3‑5. Budget recommendations and budget message.

(a)        Budget Proposals. –The Governor shall present budget recommendations, consistent with G.S. 143C‑3‑1,143C‑3‑2, and 143C‑3‑3 to each regular session of theGeneral Assembly at a mutually agreeable time to be fixed by joint resolution.

(b)        Odd‑NumberedFiscal Years. – In odd‑numbered years the budget recommendations shallinclude the following components:

(1)        A Recommended StateBudget setting forth goals for improving the State with recommended expenditurerequirements, funding sources, and performance information for each Stategovernment program and for each proposed capital improvement. The RecommendedState Budget may be presented in a format chosen by the Director, except thatthe Recommended State Budget shall clearly distinguish program continuationrequirements, program reductions, program eliminations, program expansions, andnew programs, and shall explain all proposed capital improvements in thecontext of the Six‑Year Capital Improvements Plan and as required by G.S.143C‑8‑6. The Director shall include as continuation requirementsthe amounts the Director proposes to fund for the enrollment increases inpublic schools, community colleges, and the university system.

(2)        A Budget Support Documentshowing, for each budget code and purpose or program in State government,accounting detail corresponding to the Recommended State Budget.

a.         The Budget SupportDocument shall employ the North Carolina Accounting System Uniform Chart ofAccounts adopted by the State Controller to show both uses and sources of fundsand shall display in separate parallel columns all of the following: (i) actualexpenditures and receipts for the most recent fiscal year for which actualinformation is available, (ii) the certified budget for the preceding fiscalyear, (iii) the currently authorized budget for the preceding fiscal year, (iv)program continuation requirements for each fiscal year of the biennium, (v)proposed expenditures and receipts for each fiscal year of the biennium, and(vi) proposed increases and decreases.

b.         The Budget SupportDocument shall include detailed information on recommended expenditures forcapital improvements as required by G.S. 143C‑8‑6.

c.         The Budget SupportDocument shall include accurate projections of receipts, expenditures, and fundbalances. Estimated receipts, including tuition collected by university orcommunity college institutions, shall be adjusted to reflect actual collectionsfrom the previous fiscal year, unless the Director recommends a change thatwill result in collections in the budget year that differ from prior yearactuals, or the Director otherwise determines there is a more reasonable basisupon which to accurately project receipts. Revenue and expenditure detailprovided in the Budget Support Document shall be no less detailed than the two‑digitlevel in the North Carolina Accounting System Uniform Chart of Accounts asprescribed by the State Controller.

d.         The Budget SupportDocument shall clearly identify all proposed expenditures supported by existingor proposed appropriations, including statutory appropriations.

(3)        A Current OperationsAppropriation Act that makes appropriations for each fiscal year of theupcoming biennium for the operating expenses of all State agencies as containedin the Recommended State Budget, together with a Capital ImprovementsAppropriations Act that authorizes any capital improvements projects.

(4)        The biennial StateInformation Technology Plan as outlined in G.S. 147‑33‑72B to be consistentin facilitating the goals outlined in the Recommended State Budget.

(c)        Even‑NumberedFiscal Years. – In even‑numbered years, the Governor may recommendchanges in the enacted budget for the second year of the biennium. Theserecommendations shall be presented as amendments to the enacted budget andshall be incorporated in a recommended Current Operations Appropriation Act anda recommended Capital Improvements Appropriations Act as necessary. Anyrecommended changes shall clearly distinguish program reductions, programeliminations, program expansions, and new programs, and shall explain allproposed capital improvements in the context of the Six‑Year CapitalImprovements Plan and as required by G.S. 143C‑8‑6. The Governorshall provide sufficient supporting documentation and accounting detail,consistent with that required by G.S. 143C‑3‑5(b), corresponding tothe recommended amendments to the enacted budget.

(d)        Funds Included inBudget. – Consistent with requirements of the North Carolina Constitution,Article 5, Section 7(a), the Governor's Recommended State Budget, together withthe Budget Support Document, shall include recommended expenditures of Statefunds from all Governmental and Proprietary Funds, as those funds are describedin G.S. 143C‑1‑3. Except where provided otherwise by federal law,funds received from the federal government become State funds when deposited inthe State treasury and shall be classified and accounted for in the Governor'sbudget recommendations no differently than funds from other sources.

(e)        Revenue Estimates.– The recommended Current Operations Appropriations Act shall contain astatement showing the estimates of General Fund availability, Highway Fundavailability, and Highway Trust Fund availability upon which the RecommendedState Budget is based.

(f)         Budget Message. – TheGovernor's budget recommendations shall be accompanied by a written budgetmessage that does all of the following:

(1)        Explains the goalsembodied in the recommended budget.

(2)        Explains importantfeatures of the activities anticipated in the budget.

(3)        Explains theassumptions underlying the statement of revenue availability.

(4)        Sets forth thereasons for changes from the previous biennium or fiscal year, as appropriate,in terms of programs, program goals, appropriation levels, and revenue yields.

(5)        Identifiesanticipated sources of funding for major spending initiatives.

(6)        Prepares a fiscalanalysis that addresses the State's budget outlook for the upcoming five‑yearperiod. This fiscal analysis shall include detailed estimates for five yearsfor any proposals to create new or significantly expand programs and forproposals to create new or change existing law.

(g)        DifferentGubernatorial Administrations. – For years in which there will be a change ingubernatorial administrations, the incumbent Governor shall complete the budgetrecommendations and budget message by December 15 and deliver them to theGovernor‑elect. (2006‑203, s. 3; 2007‑393, s. 4.)