NORTH CAROLINA GENERAL ASSEMBLY

1975 SESSION

 

 

CHAPTER 875

SENATE BILL 45

 

 

AN ACT TO MAKE APPROPRIATIONS FOR CURRENT OPERATIONS OF STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES, AND FOR OTHER PURPOSES.

 

The General Assembly of North Carolina enacts:

 

Section 1.  The appropriations made herein are intended to be for maximum amounts necessary to provide the services and accomplish the purposes described in the budget. It is the intent of the General Assembly that savings shall be effected where the total amounts appropriated shall not be required to perform these services and accomplish these purposes, and that, except as allowed by the Executive Budget Act, or as hereinafter provided, such savings shall be reverted to the appropriate fund at the end of the biennium.

GENERAL FUND

Sec. 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 hereby made for the biennium ending June 30, 1977, according to the following schedule:

1975-76                                             1976-77

General Assembly

Continuation                                                  $3,822,139                                         $5,442,805

Expansion                                                    ___ 87,239                                         ___ 80,259

Total                                     3,909,378                                           5,523,064

Judicial Department

Continuation                                                  40,136,213                                         40,993,108

Expansion                                                    _1,323,922                                          __944,233

Total                                    41,460,135                                         41,937,341

The Governor's Office

Continuation                                                        725,249                                              736,069

Expansion                                                       ___68,548                                          ___68,548

Total                                        793,797                                           5,523,064

The Lieutenant Governor

Continuation                                                        129,822                                              130,143

Expansion                                                         ______0                                           _______0

Total                                        129,822                                              130,143

Department of Administration

Continuation                                                    16,960,535                                         17,479,499

Expansion                                                      _1,298,122                                         _1,039,127

Total                                    17,258,657                                         18,518,626

Department of Secretary of State

Continuation                                                        414,739                                              407,360

Expansion                                                      ___14,454                                          ___14,598

Total                                        429,193                                              421,958

Department of State Auditor

Continuation                                                       4,531,637                                           4,693,427

Expansion                                                       _______0                                           _______0

Total                                     4,531,637                                           4,693,427

Department of State Treasurer

Continuation                                                     2,909,863                                           2,939,518

Expansion                                                      __127,320                                          __122,259

Total                                     3,036,183                                           3,062,224

Department of Justice

Continuation                                                     8,569,664                                           8,754,026

Expansion                                                       1,516,527                                         _2,341,906

Total                                    10,086,191                                          3,062,224

Department of Revenue

Continuation                                                     16,647,019                                         17,109,343

Expansion                                                         __233,105                                          __379,965

Total                                    16,880,124                                         17,489,308

State Board of Elections

Continuation                                                           130,400                                              133,130

Expansion                                                          ______0                                          ___25,500

Total                                        130,400                                              158,630

Department of Military &

Veterans Affairs

Continuation                                                       3,308,649                                           3,386,414

Expansion                                                       __214,280                                          __198,425

Total                                     3,522,929                                           3,584,839

Department of Commerce

Continuation                                                       5,046,539                                           5,133,902

Expansion                                                      _1,397,519                                         _1,456,124

Total                                     6,444,058                                           6,590,026

Department of Insurance

Continuation                                                       2,858,796                                           2,955,955

Expansion                                                       ___87,992                                          __105,630

Total                                     2,946,788                                           3,061,585

Department of Labor

Continuation                                                       2,367,915                                           2,342,552

Expansion                                                       __418,631                                          __455,319

Total                                     2,786,546                                           2,797,871

Department of Correction

Continuation                                                    72,291,675                                         73,646,741

Expansion                                                      _5,231,941                                         _5,990,535

Total                                    77,523,616                                         79,637,276

Department of Public Education

1.  Department of Public

            Instruction

Continuation                                                       4,736,598                                           4,791,659

Expansion                                                       _______0                                           _______0

Total                                     4,736,598                                           4,791,659

2.  State Public School Fund

Continuation                                                     722,409,995                                       729,798,698

Expansion                                                    _19,458,610                                       _32,778,884

Total                                     4,736,598                                           4,791,659

3.  State Board of Education

Continuation                                                       2,471,058                                           2,530,468

Expansion                                                            _10,000                                              _37,000

Total                                     4,736,598                                           4,791,659

4.  Occupational Education

Continuation                                                     40,415,792                                         40,485,421

Expansion                                                          _______0                                         _1,010,000

Total                                    40,415,792                                         41,495,421

5.  Governor's School

Continuation                                                     219,488                                              219,488

Expansion                                                   _______0                                           _______0

Total                                        219,488                                              219,488

6.  Purchase of School Buses

Continuation                                                     4,880,921                                           4,877,816

Expansion                                                    _1,644,888                                         _3,704,118

Total                                     6,525,809                                           8,581,934

7.  Program of Education

            by Television

Continuation                                                        418,640                                              424,552

Expansion                                                         _______0                                           _______0

Total                                        418,640                                              424,552

8.  Advancement School

Grant-in-aid                                                          _186,452                                          _______0

Total                                        186,452                                                        0

9.  School Food Service

Continuation                                                       3,593,057                                           3,897,226

Expansion                                                       _______0                                           _______0

Total                                     3,593,057                                           3,897,226

10.  Professional Improvement

            Of Teachers

Continuation                                                        968,398                                              970,090

Expansion                                                         _150,000                                            _150,000

Total                                     1,118,398                                           1,120,090

11.  Planning Research & Development

Continuation                                                          120,532                                                        0

Expansion                                                         _______0                                           _______0

Total                                        120,532                                                        0

12.  Evaluation & Assessment

Continuation                                                        750,467                                              498,599

Expansion                                                         _______0                                           _______0

Total                                        750,467                                              498,599

            Subtotal-Public Schools

Continuation                                                 781,171,398                                       788,494,017

Expansion                                                    _21,263,498                                       _37,680,002

Total                                 802,434,896                                       826,174,019

Department of Community Colleges

1.  Dept. of Community Colleges

Continuation                                                    92,997,457                                         93,060,177

Expansion                                                      __5,016,652                                       __8,001,742

Total                                  98,014,109                                       101,061,919

2.  Department of Community Colleges

Equipment

Continuation

4,516,458

4,516,458

Expansion

1,687,000

2,288,750

Special Equipment

Cape Fear Technical Institute

60,000

80,000

Haywood Technical Institute

140,000

60,000

Wilson Technical Institute

635,000

562,500

Institutional Equipment

852,800

1,586,250

Total

6,204,258

6,805,208

3.  Vocational Textile School

Continuation

258,220

262,580

Expansion

0

0

Total

258,220

262,580

Subtotal-Community Colleges

Continuation

97,772,135

97,839,215

Expansion

6,704,452

10,290,492

Total

104,476,587

108,129,707

The University of North Carolina

Board of Governors

1.  General Administration

Continuation

3,431,624

3,624,023

Expansion

0

0

Total

3,431,624

3,624,023

2.  Lump Sum appropriations

Continuation

1,278,408

1,278,408

Expansion

13,580,674

23,406,541

Institutional Programs

11,966,590

20,796,398

East Carolina University

Medical School

1,442,278

2,363,337

North Carolina Central

University Law School

75,000

150,000

Vocational Rehabilitation

Center

96,806

96,806

Total

14,859,082

24,684,949

3.  Related Educational Programs

Continuation

8,012,165

8,416,302

Expansion

4,700,000

5,489,380

Total

12,712,165

13,905,682

University of North Carolina at

Chapel Hill

1.  Academic Affairs

Continuation

35,799,589

38,841,834

Expansion

0

0

Total

35,799,589

38,841,834

2.  Division of Health Affairs

Continuation

23,173,017

23,414,702

Expansion

0

0

Total

23,173,017

23,414,702

3.  Area Health Education Centers

Continuation

5,928,303

5,939,673

Expansion

0

0

Total

5,928,303

5,939,673

North Carolina State University

at Raleigh

1.  Academic Affairs

Continuation

32,252,700

33,211,229

Expansion

0

0

Total

32,252,700

33,211,229

2.  Industrial Extension Service

Continuation

718,430

720,894

Expansion

0

0

3.  Agricultural Experiment

 

Station

 

Continuation

11,100,524

11,245,097

 

Expansion

0

0

 

Total

11,100,524

11,245,097

 

4.  Agricultural Extension

 

Service

 

Continuation

8,461,729

8,546,525

 

Expansion

0

0

 

University of North Carolina

 

at Greensboro

 

Continuation

13,869,353

14,076,228

 

Expansion

0

0

 

Total

13,869,353

14,076,228

 

University of North Carolina

 

at Charlotte

 

Continuation

11,172,619

11,326,467

 

Expansion

0

0

 

Total

11,172,619

11,326,467

 

University of North Carolina

 

at Asheville

 

Continuation

2,485,609

2,518,595

 

Expansion

0

0

 

Total

2,485,609

2,518,595

 

University of North Carolina

 

at Wilmington

 

Continuation

4,783,686

4,903,332

 

Expansion

0

0

 

Total

4,783,686

4,903,332

 

East Carolina University

 

Continuation

17,407,742

17,702,641

 

Expansion

0

0

 

Total

17,407,742

17,702,641

 

North Carolina Agricultural

 

& Technical State University

 

Continuation

8,193,303

8,444,705

 

Expansion

0

0

 

Total

8,193,303

8,444,705

 

Western Carolina University

 

Continuation

9,070,276

9,175,637

 

Expansion

0

0

 

Total

9,070,276

9,175,637

 

Appalachian State University

 

Continuation

12,950,545

13,254,447

 

Expansion

0

0

 

Total

12,950,545

13,254,447

 

Pembroke State University

 

Continuation

3,242,805

3,311,595

 

Expansion

0

0

 

Total

3,242,805

3,311,495

 

Winston-Salem State University

 

Continuation

3,458,257

3,552,001

 

Expansion

0

0

 

Total

3,458,257

3,552,001

 

Elizabeth City State University

 

Continuation

2,760,569

2,801,554

 

Expansion

0

0

 

Total

2,760,569

2,801,554

 

Fayetteville State University

 

Continuation

3,484,010

3,578,616

 

Expansion

0

0

 

Total

3,484,010

3,578,616

 

North Carolina Central University

 

Continuation

7,236,592

7,344,356

 

Expansion

0

0

 

Total

7,236,592

7,344,356

 

North Carolina School of the Arts

 

Continuation

1,861,995

1,938,985

 

Expansion

0

0

 

Total

1,861,995

1,938,985

 

North Carolina Memorial Hospital

 

Continuation

16,405,175

17,154,578

 

Expansion

0

0

 

Total

16,405,175

17,154,578

 

Subtotal-University of North Carolina

 

Continuation

248,539,025

256,322,424

 

Expansion

18,280,674

28,895,921

 

Total

266,819,699

285,218,345

 

Department of Cultural Resources

 

Continuation

9,746,722

9,845,180

 

Expansion

751,134

526,056

 

Total

10,497,856

10,371,236

 

Department of Transportation

 

& Highway Safety

 

1.  State Ports Authority

 

Continuation

292,504

292,504

 

Expansion

0

0

 

Total

292,504

292,504

 

2.  Aid to Airports

 

Continuation

1,000,000

2,000,000

 

Expansion

126,027

119,379

 

Total

1,126,027

2,119,379

 

3.  Grants - Mass Transit

 

Continuation

0

0

 

Expansion

1,000,000

1,000,000

 

Total

1,000,000

1,000,000

 

4.  Teaching of Certifying Breath

 

Test Operators

 

Continuation

0

0

 

Expansion

159,572

166,399

 

Total

159,572

166,399

 

Subtotal-Department of

 

Transportation & Highway Safety

 

Continuation

1,292,504

2,292,504

 

Expansion

1,285,599

1,785,778

 

Total

2,578,103

4,078,282

 

Department of Human Resources

 

1.  Departmental Administration

 

and Support

 

Continuation

1,982,444

2,013,382

 

Expansion

334,665

334,665

 

Total

2,317,109

2,348,047

 

2.  Health Services

 

Continuation

22,070,400

22,305,746

 

Expansion

3,151,838

5,290,111

 

Total

25,222,238

27,595,857

 

3.  Services for the Blind

 

Continuation

3,172,966

3,190,280

 

Expansion

167,800

332,664

 

Total

3,340,766

3,522,944

 

4.  Vocational Rehabilitation

 

Continuation

4,937,542

5,107,595

 

Expansion

206,837

204,982

 

Total

5,144,379

5,312,577

 

5.  Mental Health Services

 

(a) Administration and Grants-in-aid

 

Continuation

29,197,314

28,449,639

 

Expansion

1,650,000

1,852,099

 

Total

30,847,314

30,301,738

 

(b) Alcoholic Rehabilitation Center,

 

Black Mountain

 

Continuation

1,400,227

1,449,325

 

Expansion

25,000

35,000

 

Total

1,425,227

1,484,325

 

( c ) Alcoholic Rehabilitation Center

 

Butner

 

Continuation

995,635

1,027,343

 

Expansion

5,000

5,000

 

Total

1,000,635

1,032,343

 

(d) Walter B. Jones Alcoholic

 

Rehabilitation Center, Greenville

 

Continuation

1,004,774

1,036,495

 

Expansion

10,000

10,000

 

Total

1,014,774

1,046,495

 

( e ) Dorothea Dix Hospital

 

Continuation

15,569,442

15,770,388

 

Expansion

110,250

147,000

 

Total

15,679,692

15,917,388

 

(f) Broughton Hospital

 

Continuation

11,522,498

12,078,121

 

Expansion

173,248

231,000

 

Total

11,695,746

12,309,121

 

(g) Western Carolina Center

 

Continuation

7,783,784

8,017,810

 

Expansion

187,000

250,000

 

Total

7,970,454

8,267,810

 

(h) Cherry Hospital

 

Continuation

13,117,578

13,405,663

 

Expansion

89,250

119,000

 

Total

13,206,828

13,524,663

 

(i) O'Berry Center

 

Continuation

6,408,300

6,488,878

 

Expansion

196,350

262,500

 

Total

6,604,650

6,751,378

 

(j) John Umstead Hospital

 

Continuation

10,715,974

10,962,197

 

Expansion

152,252

203,000

 

Total

10,868,226

11,165,197

 

(k) Murdoch Center

 

Continuation

10,987,585

10,969,004

 

Expansion

252,450

337,500

 

Total

11,240,035

11,306,504

 

(l) Caswell Center

 

Continuation

10,868,761

10,970,455

 

Expansion

299,200

400,000

 

Total

11,167,961

11,370,455

 

(m) Wright School

 

Continuation

550,218

561,954

 

Expansion

0

0

 

Total

550,218

561,954

 

6. North Carolina Orthopedic

 

Hospital

 

Continuation

911,248

928,465

 

Expansion

0

0

 

Total

911,248

928,465

 

7. Lenox D. Baker Cerebral

 

Palsy & Crippled Children's

 

Hospital of North Carolina

 

Continuation

655,804

679,748

 

Expansion

29,100

29,100

 

Total

684,904

708,848

 

8. Confederate Women's Home

 

Continuation

95,269

95,269

 

Expansion

0

0

 

Total

95,269

95,269

 

9. North Carolina Specialty

 

Hospitals

 

(a) General Administrative Office

 

Continuation

237,854

246,236

 

Expansion

0

0

 

Total

237,854

246,236

 

(b) McCain Hospital

 

Continuation

2,696,901

2,702,538

 

Expansion

0

0

 

Total

2,696,901

2,702,538

 

( c ) Western Carolina Hospital

 

Continuation

2,617,099

2,577,944

 

Expansion

0

0

 

Total

2,617,099

2,577,944

 

(d) Eastern North Carolina Hospital

 

Continuation

2,723,257

2,659,761

 

Expansion

0

0

 

Total

2,723,257

2,659,761

 

10. North Carolina School for the Deaf

 

Continuation

3,414,642

3,444,992

 

Expansion

163,334

166,554

 

Total

3,577,976

3,611,546

 

11. Eastern North Carolina

 

School for the Deaf

 

Continuation

1,958,424

2,016,554

 

Expansion

21,278

22,148

 

Total

1,979,702

2,038,702

 

12. Central North Carolina

 

School for the Deaf

 

Continuation

1,469,177

1,418,958

 

Expansion

43,252

71,093

 

Total

1,512,429

1,490,051

 

13. Governor Morehead School

 

Continuation

2,376,748

2,413,152

 

Expansion

0

0

 

Total

2,376,748

2,413,152

 

14. Facility Services

 

Continuation

5,858,504

5,817,431

 

Expansion

411,913

422,088

 

Total

6,270,417

6,239,519

 

15. Social Services

 

Continuation

77,823,696

77,079,152

 

Expansion

19,844,670

28,521,076

 

Total

97,668,366

105,600,228

 

16. State Aid to Non-State

 

Health & Welfare Agencies

 

Continuation

2,495,232

2,495,232

 

Expansion

199,779

199,779

 

Total

2,695,011

2,695,011

 

Subtotal-Department of

 

Human Resources

 

Continuation

257,618,967

258,379,707

 

Expansion

27,724,466

39,446,359

 

Total

285,343,433

297,826,066

 

Department of Natural & Economic

 

Resources

 

Continuation

23,421,276

23,865,418

 

Expansion

1,068,512

1,304,324

 

Total

24,489,788

25,169,742

 

Department of Agriculture

 

Continuation

13,339,874

13,618,129

 

Expansion

303,494

181,099

 

Total

13,643,368

13,799,228

 

Debt Service-Interest

 

Continuation

15,900,615

20,819,000

 

Expansion

0

0

 

Total

15,900,615

20,819,000

 

Debt Service-Redemption

 

Continuation

18,970,000

21,300,000

 

Expansion

0

0

 

Total

18,970,000

21,300,000

 

Contingency & Emergency

 

Continuation

2,000,000

2,000,000

 

Expansion

0

0

 

Total

2,000,000

2,000,000

 

Salary Adjustments of State Employees

 

Continuation

600,000

600,000

 

Expansion

0

0

 

Total

600,000

600,000

 

Reserve for Retirement

 

Continuation

0

0

 

Expansion

2,000,000

2,000,000

 

Total

2,000,000

2,000,000

 

Reserve for Cost Increase

 

Utilities & Fuel

 

Continuation

0

0

 

Expansion

4,350,000

4,350,000

 

Total

4,350,000

4,350,000

 

Reserve for Cost Increase Postage

 

Continuation

0

0

 

Expansion

250,000

250,000

 

Total

250,000

250,000

 

Reserve for Salary Increase

 

for certain employees not subject

 

to the Personnel Act:

 

College Academic Personnel EPA

 

Continuation

0

0

 

Expansion

834,827

1,669,654

 

Community College Personnel EPA:

 

Continuation

0

0

 

Expansion

1,475,572

2,951,144

 

Total

2,310,399

4,620,798

 

Reserve to provide for

 

one month's salary

 

for deleted positions

 

Continuation

0

0

 

Expansion

300,000

0

 

Total

300,000

0

 

TOTAL GENERAL FUND

 

Continuation

1,651,222,370

1,681,659,586

 

Expansion

98,611,828

144,553,704

 

Total

1,749,834,198

1,826,213,290

 

 

HIGHWAY FUND

Sec. 3.  Appropriations from the Highway Fund of the State for the expense of collecting revenues, for the service of the highway debt, and for the maintenance of the transportation-related activities, are hereby made for the biennium ending June 30, 1977, according to the following schedule:

TRANSPORTATION

1975-76                                            1976-77

A. Department of Transportation

$393,789,661

$374,005,979

1. General Administration

a. Policy & Program Direction

555,688

556,408

b. Central Management & Service

8,669,107

8,972,723

c. Transportation Planning

780,930

775,040

d. Transportation Safety

10,271,593

10,626,144

2. Highways

a. General Management

1,353,856

1,352,210

b. Engineering Management

14,883,381

14,641,316

c. State Construction

    1. Primary Construction

41,006,395

21,280,912

    2. Secondary Construction

        (a) Statewide

0

0

        (b) Safety Improvements

100,000

100,000

        (c ) County

30,000,000

30,000,000

    3. Urban Construction

16,067,997

10,573,649

    4. Access & Public Roads

1,500,000

1,500,000

    5. Bridge Replacements

5,000,000

5,000,000

d. State Funds to Match

    Federal Highway Aid-

    Planning Survey &

    Highway Planning Research

1,356,526

1,367,714

e. State Funds to Match Federal

    Highway Aid-Construction

44,595,615

44,595,614

f. State Maintenance

        1. Primary

39,360,480

43,624,655

        2. Secondary

64,847,320

64,301,380

        3. Urban

11,679,066

11,974,892

g. Ferry Operations

7,355,235

4,564,901

h. State Aid to Municipalities

29,750,000

29,375,000

3. Mass Transportation Planning

102,454

118,457

4. Revenue Collection & Vehicle Regulation

13,418,783

13,457,175

5. State Highway Patrol

24,686,680

24,697,052

6. Reserve and Transfers

a. Merit Salary Increments

b. Employers Retirement

    Contribution for central offices

    & Division of Highways

9,975,109

9,994,282

c. Highway Fund Contribution

 

    to the Law Enforcement

 

    Officers Retirement Fund

1,330,000

1,435,000

 

d. Employers Social Security

 

    Contribution for the central

 

    offices and the Division of

 

    Highways

6,115,903

6,127,080

 

e. Employers Contribution for

 

    Hospital/Medical Insurance

 

    central offices & Division of

 

    Highways

1,918,956

1,922,856

 

f. Disability & Salary

 

    Continuation for the central offices

 

    and the Division of Highways

442,834

443,736

 

g. Reimbursement to the

 

    Department of Revenue for

 

    Gasoline Tax Collection

680,803

690,642

 

h. Reserve for Implementation of

 

    the Occupational Health and

 

    Safety Act

375,000

375,000

 

B. Other Highway Fund:  (Total)

26,905,839

26,194,021

 

1. Debt Service

23,776,500

23,156,000

 

2. Salary Adjustments for

 

Highway Fund Positions

1,000,000

1,000,000

 

3. Reserve for Contingencies

500,000

500,000

 

4. Reserve for Increased

 

Retirement Benefits

220,000

220,000

 

5. Department of Commerce for

 

Transportation Inspection

415,659

418,658

 

6. Department of Agriculture for

 

Gasoline Inspection

993,680

899,363

 

    TOTAL HIGHWAY FUND

$420,695,500

$400,200,000

 

 

Transfers may be made by authorization of the director of the budget from Section 3, Title A 2.a. and b. to Title A 2.c(l), c(2)(a), c(2)(b), c(2)(c), c(3), c(4), A 2.d., and A 2.e. Transfers may be made by authorization of the director of the budget from Section 3, Title A 2.c(l), c(3), c(4), A 2.d. and A 2.e. to Title A 2.a. and A 2.b., provided that the original appropriation from which the transfer is made shall not be reduced by more than ten percent (10%), and provided further that transfers to Title A 2.a. and A 2.b. for the purpose of providing additional positions, shall be approved by the Advisory Budget Commission. Transfers of appropriations within subparagraphs A 2.c. (1), c(2), c(3), c(4), A 2.d., A 2.e., A 2.f(l), f(2), f(3), and A 2.g., shall be governed by the provisions of G.S. 136-44.2. Allocations may be made from the Reserve for Contingencies by authorization of the Governor and Council of State. In the event the revenue exceeds the Highway Fund appropriation made herein, the excess will be allocated to construction of the three highway systems in the same proportional amounts as appropriated.

In the event the revenue is less than the appropriations, State funded construction appropriations in the Primary, Secondary, and Urban systems shall be reduced up to the extent necessary to maintain a viable highway maintenance program.

The Controller of the Department of Transportation and Highway Safety is hereby directed to allocate at the beginning of each fiscal year from the various appropriations in Section 3 under Titles A 2.c, A 2.d., A 2.e., A 2.f., and A 2.g. herein made to the Office of Highways, sufficient funds to eliminate all overdrafts on State maintenance and construction projects, and such allocations may not be diverted to other purposes.

In the event the availability of federal funds or the rate of federal matching for any program under the federal aid construction program is changed during any part of the 1975-77 biennium, the director of the budget may authorize transfers in Section 3 between Title A 2.c, State construction, A 2.f., State maintenance, A 2.d., State funds to match federal aid highway planning survey and highway planning research, and A 2.e., State funds to match federal aid construction, or within the affected federal aid programs, of sufficient funds to provide adequate matching for federal aid construction funds; provided that no transfers shall be made from Title A 2.c.(2), secondary construction, or A 2.f.(2), secondary maintenance, for this purpose.

During each fiscal year, the director of the budget, upon recommendation of the Board of Transportation, may authorize establishment of a reserve for school and industrial access roads and emergencies as provided for by G.S. 136-44.2, and other required reserves.

Notwithstanding any other provisions of this act or any other provision of the law, no transfers shall be made from the appropriation for secondary road county construction, nor shall that appropriation be reduced by any amount, except by a reduction, uniformly applicable to all highway construction appropriations made necessary by reduction in revenues.

Sec. 4.  General Statute 20-7(j) is hereby rewritten to read as follows: "The fees collected under this section and G.S. 20-14 shall be placed in the Highway Fund."

General Statute 20-85 is hereby amended by deleting the last sentence thereof.

General Statute 20-183.7 is hereby amended by rewriting the last sentence thereof as follows: "The Department of Motor Vehicles shall receive thirty-five cents (35¢) for each inspection certificate, and these proceeds shall be placed in the Highway Fund."

Sec. 5.  Of the three hundred seventy-five thousand dollars ($375,000) appropriated for the Occupational Safety and Health Act (OSHA) in the Department of Transportation, one hundred seventy-five thousand dollars($175,000) shall be transferred to the Department of Labor to administer the OSHA program in the Department of Transportation.

Sec. 6.  It is the intent of the General Assembly that funds appropriated herein for regional and divisional personnel offices and related expenses shall be used only for those personnel officers who function in a staff or subordinate role to the Assistant Chief Engineers or Division Engineers.

Sec. 7.  Highway Fund appropriations shall not be transferred to the State Board of Education to supplement the annual vehicle registration tax collected under the provision of G.S. 20-88.1.

Sec. 8.  In each year that an appropriation bill is considered by the General Assembly, the Department of Transportation shall make a report to the appropriations committee of each house on all services provided by the department to the public for which a fee is charged. The report shall include an analysis of the cost of each service and the fee charged for that service.

Sec. 9.  Any balances remaining in the "Drivers License Fund", the "Safety Equipment Inspection Fund" and the "Lien Recording Fund" on July 1, 1975, shall be placed in the Highway Fund.

Funds appropriated by previous General Assemblies from the Highway Fund to the Governor's Highway Safety Program in the amount of one million nine hundred eighty thousand dollars ($1,980,000) which are not now obligated are hereby reverted and reapplied to meet Highway Fund appropriations authorized in this act.

Sec. 10.  There is hereby appropriated out of funds available in the various Special Funds sufficient amounts to carry on required activities included under each fund's operations subject to provisions of the Executive Budget Act, Chapter 143, Article 1, General Statutes of North Carolina.

GENERAL PROVISIONS

Sec. 11.  All insurance and all official fidelity and surety bonds authorized for the several departments, institutions, and agencies shall be effected and placed by the Insurance Department, and the cost of such placement shall be paid by the department, institution, or agency involved upon bills rendered to and approved by the Insurance Commissioner.

SPECIAL PROVISIONS

Sec. 12.  Appropriations in Section 2 for services provided, in accordance with Title XIX of the Social Security Act (Medicaid) are intended for both the categorically needy and the medically needy. Funds appropriated for such services are to be expended in accordance with the following schedule of services and payment rates:

Services                                                             Payment Rate

In-Patient Hospital                                             Allowable costs.

Out-Patient Hospital                                           90 percent of allowable costs.

State Mental and Specialty

Hospitals & Mental

Retardation Centers                                           Allowable costs ("Fair" compensation).

(All Medicaid services

including mental, medical,

intermediate care & skilled

nursing care)

Skilled Nursing Facilities                                     Allowable costs up to $25.00

(SNF)                                                                per day.

Drugs                                                                 Average national wholesale drug cost plus $2.50 professional service fee per prescription per month.

Physicians                                                          90 percent of allowable usual & customary charges.

Chiropractors                                                     90 percent of allowable usual & customary charges.

Dental                                                                90 percent of allowable usual & customary charges.

Home Health                                                      Allowable Costs.

Optical Services                                                 90 percent of allowable usual & customary charges.

Medicare Buy-in                                                Actual premium.

Public Health Clinics                                           Allowable Costs.

Ambulance Services                                           100 percent of allowable, reasonable, usual & customary charges.

Pre-21 Screening                                               Allowable costs.

Hearing Aids                                                      80 percent usual, customary, & reasonable charges (including dispensing fee).

Mental Health Clinics                                         Allowable costs (federal portion only; nonfederal share covered by State/local operating funds.)

Intermediate Care Facilities                                Allowable costs

Family Planning                                                  Allowable costs (See specific services, i.e., Physician, Clinic, etc.).

Independent Laboratory

& X-Ray Services                                              90 percent of allowable usual & customary charges.

Optical Supplies                                                 100 percent of reasonable wholesale cost of materials.

Any changes in services or rates of payment in the Medicaid Program must be approved by the Governor and the Advisory Budget Commission.

It is the intent of the General Assembly that the State will pay eighty-five percent (85%) and the counties will pay fifteen percent (15%) of the nonfederal costs of applicable services herein listed or a prepaid premium if Medicaid Services and related administrative costs are paid for by a health-insuring contractor.

It is the further intent of this General Assembly that, as allowed by federal regulations, recipient co-payments shall be required for services under Medicaid as follows:

Eligibility                                               Co-Payment for

Categorically          Medically                              Each Occasion

Service                                        Needy                 Needy                                of Service

In-Patient Hospital                                                      x                                        $ 2.00

Out-Patient Hospital                                                    x                                           1.00

Physicians                                                                   x                                           1.00

Optometrists                                                               x                                           1.00

Drugs                                               x                         x                                             .50

Dental                                              x                         x                                           2.00

Chiropractors                                   x                         x                                           1.00

Optical Services                               x                         x                                           2.00

Maximum net family annual income eligibility standards for Medicaid shall be as follows; any change must be approved by the Governor and the Advisory Budget Commission.

Categorically          Medically

Family Size                                  Needy                 Needy

1                                        $1,452                $1,700

2                                          1,908                  2,200

3                                          2,196                  2,500

4                                          2,400                  2,800

5                                          2,628                  3,000

6                                          2,832                  3,200

7                                          3,036                  3,400

8                                          3,168                  3,600

9                                          3,300                  3,800

10                                        3,480                  4,000

11                                        3,660                  4,200

12                                        3,840                  4,400

13                                        4,020                  4,600

Sec. 13.  Providers of medical services under the offering medical care to citizens of the State shall be reimbursed at the same rates as those provided under the Medicaid program. This provision relates specifically to the Crippled Children and Maternal and Child Health programs and the Chronic Disease Section of the Division of Health Services, services under Vocational Rehabilitation and services for the blind under the Department of Human Resources.

Maximum net family annual income eligibility standards for services in these programs shall be as follows; any change must be approved by the Governor and the Advisory Budget Commission.

Maternal and Child

Care, Cancer                                                           Blind

Family Size                            Migrant Health               Kidney                                     Rehabilitation

1                                                $4,200                     $6,400                                                 3,600

2                                                5,300                       8,000                                                   4,800

3                                                6,400                       9,600                                                   5,700

4                                                7,500                       11,000                                                 6,300

5                                                7,900                       12,000                                                 6,900

6                                                8,300                       12,800                                                 7,500

7                                                8,800                       13,600                                                 8,100

8                                                9,300                       14,400                                                 8,700

9                                                9,800                       15,200                                                 9,300

10                                            10,300                      16,000                                                 9,900

11                                            10,900

12                                            11,400

13                                            12,000

 

Medical Eye             Medical Eye Care

                                                Care Blind            Blind Pre-School &                             Vocational

Family Size                                Adults                 School Children                              Rehabilitation

1                                              $1,800                   $4,200                                                 $2,568

2                                              2,520                     5,300                                                   4,260

3                                              3,180                     6,400                                                   5,052

4                                              3,600                     7,500                                                   6,204

5                                              3,960                     7,900                                                   7,104

6                                              4,320                     8,300                                                   7,814

7                                              4,680                     8,800                                                   8,524

8                                              5,040                     9,300                                                   9,235

9                                                                            9,800                                                   9,945

10                                                                          10,300                                                 10,656

11                                                                          10,900                                                 11,366

12                                                                          11,400                                                 12,076

13                                                                          12,000                                                 12,787

 

Sec. 14.  Appropriations made herein for health programs not covered under Medicaid are intended to provide for the purchase of medical services for a full twelve-month period for eligible recipients under these programs. If during the fiscal year, expenditures in these programs indicate that the funds may be insufficient for a full twelve months, the Department of Human Resources shall adjust the eligibility requirements for participation in these programs to the end that the appropriations are sufficient.

Sec. 15.  Appropriations made herein to the Division of Mental Health Services for community mental health programs, as authorized by G.S. 122-35.1, are intended to be for both out-patient and in-patient services.

Sec. 16.  It is the intent of this General Assembly that non-State health and welfare agencies submit their appropriation requests for grants-in-aid through the Secretary of the Department of Human Resources for recommendations to the Governor and the Advisory Budget Commission and the General Assembly, and that agencies receiving these grants, at the request of the Secretary of the Department of Human Resources, provide a post-audit of their operations that has been done by a certified public accountant.

Sec. 17.  The Department of Human Resources is authorized and directed to utilize any funds available to the department by reason of increased Social Security and/or Supplemental Security Income checks to General Assistance recipients, and consequent reduction in the amounts otherwise required as supplementary State funds, to provide increased payments for those General Assistance recipients receiving family care, rest home, and attendant care services.

Sec. 18.  It is the intent and purpose of this act to establish a more adequate level of direct patient care in each of the mental health institutions. Positions recommended for direct patient care in the budget shall not be reclassified and funds shall not be reallocated to non-direct patient-care activities.

Sec. 19.  Appropriations made herein to the Department of Community Colleges for equipment and library books are made for each year of the biennium, and all unencumbered appropriations shall revert to the General Fund twelve months after the close of the fiscal year for which they were appropriated. Encumbered balances or unliquidated obligations outstanding at the end of this period shall be handled in accordance with existing State budget policies.

Sec. 20.  Funds appropriated herein to the State Department of Public Education, Department of Community Colleges, as operating expenses for allocation to the institutions comprising the Community College System shall not be used to support recreation extension courses. The financing of such courses by any institution shall be on a self-supporting basis and contact hours produced from such activities shall not be counted when computing full-time equivalent students for use in budget-funding formulas at the State level.

Sec. 21.  Each stipend recipient in the Department of Community Colleges Administrator Training Program shall serve public post-secondary education in North Carolina two months for every one month on stipend, or repay a pro rata share of the State funds received.

Sec. 22.  For the purposes of determining the system-wide number of curriculum instructional unit positions each year, the total curriculum and extension full-time equivalent student enrollment shall be divided by 23.

Sec. 23.  Funds appropriated in Section 2 for the Department of Community Colleges to increase support for supplies and materials shall be used to increase the formulas by which supplies and materials funds are allocated to the institutions and shall not be used to change any other allocation formulas. All other funds appropriated for operating costs of the community colleges and technical institutes are intended to support student enrollment at the per student rate provided by the formulas adopted by the State Board of Education for the preceding year and shall not be used to increase the formulas by which fund allocations will be determined.

Sec. 24.  Funds appropriated herein to the Department of Community Colleges to provide financial assistance to hospital programs of nursing education leading to diplomas in nursing which are fully accredited by the North Carolina Board of Nursing and operated under the authority of a public or nonprofit hospital licensed by the North Carolina Medical Care Commission shall be distributed, upon application for financial assistance, on the basis of eight hundred fifty dollars ($850.00) for each student duly enrolled in the program as of December 1 of the preceding year and on condition that accreditation is maintained. The State Board of Education shall make such rules and regulations as are necessary to ensure that this financial assistance is used directly for faculty and instructional needs of diploma nursing programs.

Sec. 25.  Funds appropriated to the State Department of Public Education for the purchase of elementary basic textbooks shall be permanent appropriations, and unexpended portions of these appropriations shall not revert to the General Fund at the end of the biennium.

Sec. 26.  Funds appropriated in Section 2 to the State Department of Public Education for clerical assistance in the public schools and for instructional personnel in psychological and guidance counseling, health and social services, reading, mathematics, and cultural arts shall be allocated to local administrative units according to formulas in effect on June 30, 1975. The State Board of Education shall require local administrative units to provide evidence that the expenditure of local funds for each such purpose is no less than the amount expended per pupil in average daily membership for each such purpose during the prior year. At the discretion of the State Board of Education, funds appropriated under this act may be withheld to ensure that supplanting of local funds does not occur. The State Board of Education is empowered to waive this requirement upon evidence provided by the local administrative units that compliance will result in inefficient use of funds and that the overall per pupil expenditure from local funds for instructional purposes is no less than the overall per pupil expenditure from local funds for such purposes in the preceding fiscal year.

Sec. 27.  Funds appropriated in Section 2 of this act to the State Department of Public Education for the development of health, physical education, and athletic activities shall be allocated by the State Board of Education to local administrative units on the basis of average daily membership in kindergarten through grade six.

Sec. 28.  Funds appropriated in Section 2 to the State Department of Public Education to replace lost federal receipts shall be utilized only for existing programs that experience a loss in federal funding and any amounts not so required shall revert to the General Fund.

Sec. 29.  Funds appropriated herein to the Board of Governors of The University of North Carolina for continuation of financial assistance to the medical schools of Duke University and Wake Forest University shall be disbursed on certifications of the respective schools of medicine that show the number of North Carolina residents as first-, second-, third- and fourth-year students in the school as of November 1, 1975, and November 1, 1976. Disbursement to Wake Forest University shall be made in the amount of eight thousand dollars ($8,000) for each such student, one thousand dollars ($1,000) of which shall be placed by the school in a fund to be used to provide financial aid to needy North Carolina students who are enrolled in the school, provided that the maximum aid given to any student from this fund in a given year shall not exceed the amount of the difference in tuition and academic fees charged by the school and those charged at the School of Medicine at The University of North Carolina at Chapel Hill.

Disbursement to Duke University shall be made in the amount of five thousand dollars ($5,000) for each such student, five hundred dollars ($500.00) of which shall be placed by the school in a fund to be used to provide student financial aid to financially needy North Carolina students who are enrolled in the school, provided that no individual student shall be awarded assistance from this fund in excess of one thousand five hundred dollars ($1,500) each year. In addition to this basic disbursement for each year of the 1975-77 biennium, a disbursement of one thousand dollars ($1,000) shall be made for each such student in the first-year class to the extent that the enrollment of the first-year class exceeds 30 North Carolina students in the 1975-76 fiscal year. In the 1976-77 fiscal year, the additional disbursement of one thousand dollars ($1,000) shall be made for each such student in the first- and second-year class to the extent that enrollment of each class exceeds 30 North Carolina students.

The Board of Governors shall establish the criteria for determining the eligibility for financial aid of needy North Carolina students who are enrolled in the schools and shall review the grants or awards to said eligible students. The Board of Governors shall promulgate regulations for determining which students are residents of North Carolina for the purposes of these programs. The Board shall also make such regulations as it may deem desirable to insure that these funds are used directly for instruction in the medical programs of the schools and not for religious or other nonpublic purposes. The Board shall encourage the two schools to orient students towards personal health care in North Carolina giving special emphasis to family and community medicine.

Sec. 30.  Funds appropriated in this act to the Board of Governors of The University of North Carolina for aid to private colleges shall be disbursed in accordance with the provisions of G.S. 116-19, G.S. 116-21, and G.S. 116-22. These funds are intended to provide up to two hundred dollars ($200.00) per full-time equivalent North Carolina undergraduate student enrolled at a private institution as of October 1 each year.

In addition to any funds appropriated pursuant to G.S. 116-19 and in addition to all other financial assistance made available to private educational institutions located within the State, or to students attending such institutions, there is hereby granted to each full-time North Carolina undergraduate student attending an approved institution, as defined in G.S. 116-22, the sum of two hundred dollars ($200.00) per academic year, which shall be distributed to the student as hereinafter provided.

The tuition grants provided for herein shall be administered by the State Education Assistance Authority pursuant to rules and regulations promulgated by the State Education Assistance Authority not inconsistent with this act. The State Education Assistance Authority shall not approve any grant until there has been received from an appropriate officer of the approved institution a certification that the student applying for said grant is an eligible student. Upon receipt of such certification, in proper form, the State Education Assistance Authority shall remit, at such times as it shall prescribe, said grant to the approved institution on behalf and to the credit of such student.

In the event a student on whose behalf a grant has been paid shall not be enrolled and carrying a minimum academic load as of the tenth classroom day following the beginning of the school term for which such grant was paid, the institution shall refund to the State Education Assistance Authority the amount of grant paid on behalf of such student for such term. Each approved institution shall be subject to examination by the State Auditor for the purpose of determining whether such institution has properly certified eligibility and enrollment of students and credited grants paid in the behalf of such students.

In the event there are not sufficient funds to provide each eligible student with a full grant, each eligible student shall receive a reduced but equal share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation.

Expenditures made pursuant to this section shall be used for secular educational purposes only. If any provision of this section or the application thereof to any person or circumstances be held invalid, such invalidity shall not affect other provisions or applications of this section which can be given effect without the invalid provision or application, and to this end the provisions of this section are declared to be severable.

Sec. 31.  Within the limits of the appropriations made in Section 2 to the Board of Governors of The University of North Carolina, community hospitals are to be awarded grants in the amount of fifteen thousand dollars ($15,000) per year for each certified residency that is established and filled and that represents an increase over the number of certified residencies at those hospitals as of June 30, 1974, in the fields of family practice, internal medicine, pediatrics, and obstetrics and gynecology.

Sec. 32.  The Board of Governors is urged to utilize the funds appropriated in Section 2 for institutional programs to maintain accreditation of the North Carolina Central University Law School; to obtain accreditation of the East Carolina University School of Medicine; to provide for scheduled enrollment increases in the Division of Health Affairs at UNC-Chapel Hill, East Carolina University, and in other health-related programs on other campuses of the University; and to provide for the planned expansion of the Area Health Education Centers.

Sec. 33.  The balance, as of June 30, 1975, of the seven million five hundred thousand dollars ($7,500,000) appropriated in Chapter 562 of the 1973 Session Laws to the Board of Governors of The University of North Carolina as a reserve to establish an additional degree-granting school of medicine within The University of North Carolina and carried forward by Chapter 1190 of the 1973 Session Laws, and the balance, as of June 30, 1975, of the seven million five hundred thousand dollars ($7,500,000) appropriated in Chapter 1190 of the 1973 Session Laws as a reserve for the purposes outlined in Section 46 of that act, are hereby carried forward as a non-reverting special fund to the Board of Governors of The University of North Carolina, which shall be available for current operation or capital improvement expenditures, or both, in support of the development of a degree-granting school of medicine within The University of North Carolina, heretofore authorized by the Board of Governors at East Carolina University. These funds may be used for, but are not limited to, expenditures for the planning and construction of clinical and other educational facilities to support the medical education program in buildings of the Pitt County Memorial Hospital.

If these funds are used for such purposes, any alterations or construction that is required for these purposes that is within or attached to the physical confines of the buildings of Pitt County Memorial Hospital according to construction contracts that have been previously entered into by the contracting parties for Pitt County Memorial Hospital, may be exempt from the requirements of G.S. 143-129 and G.S. 143-132 and accomplished by negotiated change orders to existing contracts.

This exemption does not apply to the construction of any free-standing addition or additions to the Pitt County Memorial Hospital for the accomplishment of the above purposes.

Sec. 34.  Fifty percent (50%) of all indirect costs (overhead receipts) received in connection with contracts and grants in any fiscal year by any of the constituent institutions of The University of North Carolina shall be transferred to their general operating budget as reimbursement for operating costs.

Sec. 35.  This act provides for withdrawing four million dollars ($4,000,000) from the balances of the overhead receipts funds at the constituent institutions of The University of North Carolina. This reduction shall be apportioned among the constituent institutions in proportion to the May 31, 1975, balances in these funds at each institution.

Sec. 36.  Of the amount appropriated in Section 2 to the Board of Governors for related educational programs, five hundred thousand dollars ($500,000) for 1975-76 and six hundred fifty thousand dollars ($650,000) for 1976-77 and any matching federal funds shall be used by the State Education Assistance Authority to establish a North Carolina incentive grants program for financial aid to needy North Carolina undergraduate students enrolled in post- secondary education institutions in North Carolina.

Sec. 37.  Funds appropriated herein to the Board of Governors of The University of North Carolina for allocation to the constituent institutions shall be distributed fairly and equitably among the institutions in accordance with the provisions of G.S. 116-11(9).

Sec. 38.  All funds provided as grants-in-aid to private nonprofit organizations in the areas of history, art, and culture are appropriated to the Department of Cultural Resources for allocation in accordance with law. Funds appropriated to the department for grants-in-aid to assist in the restoration of significant historic sites owned by private nonprofit organizations shall be expended only in accordance with Sections 121-11, 121-12 and 143-31.2 of the General Statutes.

It is the intent of the General Assembly that non-State organizations operating in the areas of history, art, and culture submit their requests for grant-in-aid appropriations through the Secretary of the Department of Cultural Resources for recommendations to the Governor, the Advisory Budget Commission and the General Assembly. The Secretary is empowered and directed to make regular and timely reviews, studies and recommendations concerning the operations and needs of these organizations for State funds. In discharging this responsibility, the Secretary may request from the grantees operating statements, audit reports and other information deemed appropriate.

Sec. 39.  It is the intent of this act that expenditures of funds appropriated herein as reserves shall not be scheduled in amounts or in such manner as to create an increased annual obligation in the succeeding year, except as provided by statute.

Sec. 40.  Subject to a recommendation of the director of the budget and with the approval of the Council of State, funds may be allotted out of the Contingency and Emergency Appropriation for use by the State Department of Agriculture, the North Carolina Agricultural Experiment Station, the United States Department of Agriculture, or any of them, for a witch weed control program or for payment of hog cholera indemnities, or both.

Sec. 41.  Appropriations are provided in Section 2 of this act for required employer contributions to the Teachers' and State Employees' Retirement Fund, the Law Enforcement Officers' Benefit and Retirement Fund, the Judicial Department Retirement Fund, and the Social Security Agency, for employees whose salaries are paid from the General Fund; in Section 3 of this act, for required employer contributions for employees whose salaries are paid from the Highway Fund; and in Section 4 of this act, for required employer contributions for employees whose salaries are paid from Special Funds. For employees whose salaries are paid from department, office, institution, or agency receipts (other than gifts, including foundation funds), the employer requirement shall be paid from the same source as the source of the employee's 1305 salary. In those instances in which an employee's salary is paid in part from the General Fund and in part from department, office, institution, or agency receipts(other than gifts, including foundation funds), required employer contributions shall be paid from the General Fund only to the extent of the proportionate part paid from the General Fund in support of the salary of such employee, and the remainder of the employer's requirement shall be paid from the same source which supplies the remainder of such employee's salary. The requirements of this section as to source of payment are also applicable to payments on behalf of employees of Hospital-Medical Insurance, Longevity, and Unemployment Insurance, except that where the employee's salary is paid in whole or in part from gifts, including foundations, the source of such gifts must bear its proportional share of the employer's requirement for these purposes.

Notwithstanding the restrictions in this section, the director of the budget is authorized and empowered to promulgate special rules and regulations to apply to employer requirements with respect to employees whose salaries are paid from inter-agency receipts, where payments for the services of such employees originate from State appropriations, to the end that the effective purchasing power of such appropriations shall not be materially reduced as a result of payment of the employer's requirement.

Any questions as to the applicability of the provisions of this section shall be resolved by the director of the budget and the Advisory Budget Commission.

Sec. 42.  Subject to the rules and regulations promulgated by the Department of Administration and approved by the director of the budget, any State department, institution, or agency of the State is hereby authorized to expend, from appropriations made in this act, funds to pay reasonable expenses for transporting the household goods of an employee and members of his household when the transfer of the employee is considered by the director of the budget to be in the best interests of the State.

Sec. 43.  The director of the budget with the approval of the Council of State is authorized to make transfers from the Contingency and Emergency Fund for any purpose authorized by law for which no specific appropriation has been made, or when, inadvertently, an insufficient appropriation has been made.

Sec. 44.  The director of the budget, with the approval of the Advisory Budget Commission and upon the request of the Governor's Aviation Committee, is authorized and empowered to allocate grants from the appropriations for airport improvements made in Section 2 of this act.

Sec. 45.  The Secretary of the Department of Human Resources is authorized to establish rules and regulations applicable to local human resource agencies for the purpose of program evaluation, fiscal audits, and collection of third-party payments.

Sec. 46.  It is the intent of this General Assembly that, of the appropriations enumerated above in this act, the elements listed below are to be financed from the General Revenue Sharing Trust Fund of the State.

Public Schools, Direct Financial Support of Local School Systems Programs

Support Services at the Local Level Subprogram

1975-76                                       1976-77

Pupil Transportation Element:

Operational Costs                                             $36,712,159                                 $36,441,040

Bus Replacement                                                  6,525,809                                     5,010,760

Textbooks Element                                                        5,541,862                                __________

Total                                                                $48,779,830                                 $41,451,800

Sec. 47.  There is hereby repealed G.S. 135-4(m) and G.S. 135-5(u) which require that the employer portion of the annual cost to fund the provisions of G.S. 135-4(f)(6), (k) and (1) and G.S. 135-5, subsections (s) and (t) shall be paid by the employer based on the employer contribution rate as determined by the actuary and no cost shall be paid from funds now held by the Retirement System.

Sec. 48.  Subject to legislative action to transfer the Division of Youth Development and the training schools of the Department of Correction to the Department of Human Resources, it is the intent of the General Assembly that all funds appropriated in this act for the administration and operation of the Division of Youth Development and the schools shall be transferred to the Department of Human Resources.

Sec. 49.  Grant-in-aid funds appropriated to the Department of Cultural Resources, as a supplement to private funds for expenses incurred by the North Carolina Symphony Orchestra, shall be the responsibility of and administered by the North Carolina Symphony Society, Inc., subject to audit and recommendations by the State Auditor.

It is the intent of the appropriation made for administration of the North Carolina Symphony that the Department of Cultural Resources be responsible for the expenditure of funds for administration and have authority over the employment of administrative personnel, subject to the provisions of G.S. 126. The department may seek the advice and assistance of the North Carolina Symphony Society, Inc., in administrative personnel actions.

Sec. 50.  There is appropriated in Section 2 of this act a reserve for merit salary increases to permanent college academic personnel and permanent community college personnel whose salaries are exempt from the State Personnel Act.

The director of the budget is authorized and empowered to transfer from that reserve to the appropriate departments an amount for merit salary increases. The total amount of funds are to be allocated to individuals according to rules and regulations established by the Board of Governors of The University of North Carolina and the State Board of Education.

The director of the budget is authorized and empowered to allocate, out of special operating funds, or from sources other than tax revenues under which personnel exempt from the State Personnel Act are employed, sufficient funds to conform with the provisions of this section, provided necessary funds are available or made available by sponsoring agents. The director of the budget is further authorized to promulgate special rules and regulations to apply to merit salary increases for employees whose salaries are paid from inter-agency receipts, where payments for the services of such employees originate from State appropriations, as long as the effective purchasing power of such appropriations is not materially reduced as a result of these merit increases. Any question as to the applicability of the provisions of this section shall be resolved by the director of the budget and the Advisory Budget Commission.

Salaries for positions which are paid partially from the General Fund and partially from sources other than the General Fund shall be increased from the General Fund appropriation only to the extent of the proportionate part of the salaries paid from the General Fund.

Sec. 51.  The director of the budget is authorized and empowered to transfer to General Fund budget codes from the General Fund salary adjustment appropriation, and to Highway Fund budget codes from the Highway Fund salary adjustment appropriation, such amounts as may be required to support approved salary adjustments made necessary by difficulties in recruiting and holding qualified employees in State Government. These funds are intended to be transferred only when the use of salary reserve funds in individual operating budgets is not feasible.

Sec. 52.  The salary per annum of the following shall be:

Chief Justice, Supreme Court                                                                                        $ 39,000

Associate Justice, Supreme Court                                                                                    38,000

Chief Judge, Court of Appeals                                                                                         36,500

Judge, Court of Appeals                                                                                                  35,500

Judge, Superior Court                                                                                                      30,500

Chief Judge, District Court                                                                                               24,500

Judge, District Court                                                                                                        23,500

Solicitor or District Attorney                                                                                            27,000

Assistant Solicitor or

Assistant District Attorney                                 an average of                                     17,500

Administrative Officer of the Courts                                                                                 32,500

Assistant Administrative Officer of the Courts                                                                   24,000

Public Defender                                                                                                               27,000

Assistant Public Defender                                       an average of                                     17,500

The minimum salary of any Assistant Solicitor or Assistant District Attorney and Assistant Public Defender shall be twelve thousand dollars($12,000) per annum; provided, that on recommendation of the District Attorney or the Public Defender with the approval of the Administrative Officer of the Courts the salaries of Assistant District Attorneys and Assistant Public Defenders may be adjusted so long as the average salaries of Assistant District Attorneys and Assistant Public Defenders in a judicial district do not exceed seventeen thousand five hundred dollars ($17,500).

Sec. 53.  It is the intent of this General Assembly that the Employee Disability Salary Continuation Program be shifted from a pre-paid premium basis to a pay-as-you-go basis. Beginning July 1, 1975, funds budgeted for the existing Employee Disability Salary Continuation Program ($3.00 per month per employee) shall be used to pay the increased employee cost for hospitalization insurance ($3.50 per month per employee) which becomes effective October 1, 1975. Funds budgeted for Disability Salary Continuation in 1975-76 which are not required for hospitalization insurance in 1975-76 may be transferred to 1976-77, to the extent necessary, to fund hospitalization insurance. Employee disability salary continuation payments payable in 1975-77 shall be paid by the N. C. Teachers' and State Employees' Retirement System from the existing reserves and interest income of the Disability Salary Continuation Program Fund.

Sec. 54.  In an effort to balance the 1975-77 budget, it was necessary to make reductions in personnel and to eliminate certain programs. To assure that the intent of the General Assembly is followed, no department of State government may transfer funds within its budget to fund positions or programs eliminated, except upon approval of the Governor and Advisory Budget Commission.

Sec. 55.  The Day-Care Licensing Element of the Department of Administration shall not be transferred to any other department.

Sec. 56.  It is the intent and purpose of the General Assembly at its 1976 Session to establish as its first priority the funding of equal salary increases in 1976-77 for all State employees, including those subject to and exempt from the State Personnel Act, highway employees, public school employees and staff members of community colleges and higher educational institutions.

Sec. 57.  The appropriation made in Section 2 of this act to the Governor's office for the ombudsman program is to be reviewed by the Governor and Advisory Budget Commission in preparing the next budget to determine if that program should be continued beyond the 1975-77 biennium.

Sec. 58.  Funds appropriated in Section 2 of this act to the State Board of Education provide for the improvement of reading instruction in the public schools. These funds are to be expended in accordance with a plan to be submitted to the Governor and Advisory Budget Commission specifying how programs will be designed, developed and evaluated. These funds for reading improvement shall be non-recurring and non-reverting and the approved programs shall be completed no later than June 30, 1978.

Sec. 59.  There is herein appropriated to the General Assembly ten thousand dollars ($10,000) in 1975-76 to support a special study commission which is to make a detailed examination of the programs of research, development, evaluation, and assessment within the Department of Public Instruction and do such other studies as the commission might determine to be pertinent in evaluating these programs in order to determine the effectiveness of said programs and whether they should be transferred, in whole or in part, expanded or decreased.

This study commission shall consist of one co-chairperson and six other members to be appointed by the Speaker of the House, four of whom shall be members of the House of Representatives and three members of the public at large; one co-chairperson and six other members to be appointed by the President of the Senate, four of whom shall be members of the Senate and three members of the public at large. Appointments to this study commission are to be made by August 15, 1975, and upon their appointment the co-chairpersons shall organize and begin work as they deem appropriate. This commission shall report to the General Assembly at the convening of its 1976 session.

Sec. 60.  It is the intent of this act that the Board of Governors shall set tuition rates for nonresident students who are enrolled in the constituent institutions of the University of North Carolina and that such existing annual rates be increased by approximately one hundred dollars ($100.00) for the academic year beginning on or about September 1, 1975.

It is the further intent of this act that the State Board of Education shall set tuition rates for nonresident students who are enrolled in the institutions of the Community College System and that such existing annual rates be increased by approximately one hundred dollars ($100.00) for the academic year beginning on or about July 1, 1975. Registration fees for extension courses for which instruction is financed primarily from State funds shall be increased to three dollars ($3.00) per course beginning on or about July 1, 1975.

Sec. 61.  The provisions of the Executive Budget Act, Chapter 143, Article 1, of the General Statutes, are re-enacted and shall remain in full force and effect, and are incorporated in this act by reference.

Sec. 62.  If any section or provision of this act be declared unconstitutional or invalid by the courts, the same shall not affect the validity of the act as a whole or any part other than the part so declared to be unconstitutional or invalid.

Sec. 63.  All laws and clauses of laws in conflict with this act are hereby repealed.

Sec. 64.  This act shall become effective July 1, 1975.

In the General Assembly read three times and ratified, this the 26th day of June, 1975.