| 13 | 13 | | A BILL TO BE ENTITLED 1 |
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| 14 | 14 | | AN ACT TO REQUIRE THE LEGISLATIVE AND EXECUTIVE BRANCHES TO 2 |
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| 15 | 15 | | COLLABORATE ON LONG -TERM BUDGET ASSESSMENTS THAT MEASURE 3 |
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| 16 | 16 | | ONGOING BUDGET SUSTAINABILITY UTILIZING A CURRENT SERVICES 4 |
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| 17 | 17 | | BASELINE TO ENSURE FISCAL RESPONSIBILITY. 5 |
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| 18 | 18 | | The General Assembly of North Carolina enacts: 6 |
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| 19 | 19 | | SECTION 1. Article 3 of Chapter 143C of the General Statutes is amended by adding 7 |
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| 20 | 20 | | a new section to read: 8 |
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| 21 | 21 | | "§ 143C-3-4.1. Long-term budget assessment. 9 |
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| 22 | 22 | | The Director shall collaborate annually with the legislative branch to create and update a 10 |
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| 23 | 23 | | long-term budget assessment and consensus revenue forecast covering at least the following five 11 |
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| 24 | 24 | | years and which shall include at least the following: 12 |
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| 25 | 25 | | (1) A projection of spending required to maintain current services and programs 13 |
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| 26 | 26 | | in the context of changes to the cost of delivering services, including inflation 14 |
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| 27 | 27 | | and changes to the size of the population and the population served. 15 |
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| 28 | 28 | | (2) An analysis of the cost of program changes or policies to be enacted as well 16 |
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| 29 | 29 | | as those mandated by statute or the courts that may not have been included in 17 |
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| 30 | 30 | | the base year. 18 |
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| 31 | 31 | | (3) An analysis of the cost to the State for maintaining or increasing employee 19 |
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| 32 | 32 | | salaries and benefits to reflect current economic factors, including inflation 20 |
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| 33 | 33 | | and benefit cost increases. 21 |
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| 34 | 34 | | (4) A comparison of potential impacts on the State budget based upon fiscal 22 |
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| 35 | 35 | | scenarios related to economic performance, changes to transfers from the 23 |
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| 36 | 36 | | federal government, or both." 24 |
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| 37 | 37 | | SECTION 2. G.S. 143C-3-5 reads as rewritten: 25 |
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| 38 | 38 | | "§ 143C-3-5. Budget recommendations and budget message. 26 |
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| 39 | 39 | | (a) Budget Proposals. – The Governor shall present budget recommendations, consistent 27 |
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| 40 | 40 | | with G.S. 143C-3-1, 143C-3-2, and 143C-3-3 143C-3-3, and 143C-3-4.1 to each regular session 28 |
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| 41 | 41 | | of the General Assembly at a mutually agreeable time to be fixed by joint resolution. 29 |
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| 42 | 42 | | … 30 |
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| 43 | 43 | | (f) Budget Message. – The Governor's budget recommendations shall be accompanied 31 |
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| 44 | 44 | | by a written budget message that does all of the following: 32 |
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| 45 | 45 | | (1) Explains the goals embodied in the recommended budget. 33 |
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| 46 | 46 | | (2) Explains important features of the activities anticipated in the budget. 34 |
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| 49 | 52 | | (4) Sets forth the reasons for changes from the previous biennium or fiscal year, 1 |
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| 50 | 53 | | as appropriate, in terms of programs, program goals, appropriation levels, and 2 |
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| 51 | 54 | | revenue yields. 3 |
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| 52 | 55 | | (5) Identifies anticipated sources of funding for major spending initiatives. 4 |
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| 53 | 56 | | (6) Prepares a fiscal analysis that addresses the State's budget outlook for the 5 |
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| 54 | 57 | | upcoming five-year period. period, consistent with the assessment required 6 |
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| 55 | 58 | | under G.S. 143C-3-4.1. This fiscal analysis shall include detailed estimates 7 |
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| 56 | 59 | | for five years for any proposals to create new or significantly expand programs 8 |
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| 57 | 60 | | and for proposals to create new or change existing law. 9 |
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| 58 | 61 | | …." 10 |
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| 59 | 62 | | SECTION 3. This act is effective when it becomes law and applies to the adoption 11 |
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| 60 | 63 | | of the Current Operations Appropriations Act for the fiscal year beginning on or after that date. 12 |
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