NORTH CAROLINA GENERAL ASSEMBLY

1973 SESSION

 

 

CHAPTER 533

HOUSE BILL 50

 

 

AN ACT TO MAKE APPROPRIATIONS FOR CURRENT OPERATIONS OF THE 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 fiscal year.

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 fiscal year ending June 30, 1974, according to the following schedule:

1973-74

I. GENERAL ASSEMBLY

General Assembly                                                                          $ 3,386,756

II. JUDICIAL

Judicial Department                                                                     $ 34,571,550

Judicial Council                                                                                        1,276

Subtotal – Judicial                                                                  $ 34,572,826

III. GENERAL GOVERNMENT

The Governor's Office                                                                      $ 626,132

The Lieutenant Governor                                                                     102,190

Department of Administration                                                            9,455,104

Department of Administration –

Subsidiary Programs                                                                   2,758,384

Department of Secretary of State                                                         454,930

Department of State Auditor                                                             3,728,336

Department of State Treasurer                                                          1,149,015

Department of Justice:

1. Attorney General                                                                    1,807,590

2. State Bureau of Investigation                                                   3,943,636

3. Police Information Network                                                    1,161,376

4. General Statutes Commission                                                       13,230

Department of Revenue                                                                  12,831,790

Pensions - Widows of Governors                                                             9,000

Courts Commission                                                                               10,000

Commission on Indian Affairs                                                                 92,859

Subtotal - General Government                                              $ 38,143,572

IV. PUBLIC SAFETY AND REGULATION

Department of Military and

Veterans' Affairs                                                                            $ 2,301,583

Department of Commerce                                                                 4,011,730

Insurance Department:

1. Insurance Department                                                             2,116,483

2. State Property Fire Insurance

Fund                                                                                         250,000

3. Firemen's Relief Fund                                                                    1,750

4. Building Code Council                                                                   2,600

Department of Labor                                                                        1,601,583

Subtotal – Public Safety and

Regulation                                                                             $ 10,285,729

V. CORRECTION

Department of Social Rehabilitation

and Control:

1. Office of Secretary                                                              $ 1,684,458

2. Office of Youth Development:

a. General Administration                                                         222,823

b. Stonewall Jackson School                                                 1,175,879

c. Samarkand Manor                                                            1,183,125

d. Cameron Morrison School                                                1,280,895

e. Richard T. Fountain School                                               1,014,214

f. Dobbs School for Girls                                                         834,436

g. Samuel Leonard School                                                       954,435

h. Juvenile Evaluation Center                                                 1,476,374

i. C. A. Dillon School                                                               649,898

3. Office of Correction                                                              37,566,262

4. Office of Probation                                                                 4,539,317

5. Office of Paroles                                                                     1,986,285

Subtotal - Department of Social

Rehabilitation and Control                                                      $ 54,568,401

The Governor's Office – Fugitives

from Justice                                                                                       6,500

Subtotal – Correction                                                            $ 54,574,901

VI. EDUCATION

Department of Public Education:

1. Department of Public

Instruction                                                                         $ 3,278,479

2. Nine Months School Fund                                                  648,377,625

3. State Board of Education                                                        2,207,327

4. Occupational Education                                                        31,497,700

5. Purchase of School Buses                                                     13,148,452

6. Program of Education by

Television                                                                                222,743

7. Advancement School                                                                 838,430

8. School Food Service                                                              2,326,541

9. Professional Improvement of

Teachers                                                                                 645,270

10. Planning, Research and

Development                                                                           388,654

11. Evaluation & Assessment                                                          346,180

12. Vocational Textile School                                                          211,238

13. Department of Community Colleges                                      83,638,766

14. Department of Community

Colleges – Equipment                                                         14,219,595

The University of North Carolina –

Board of Governors:

1. General Administration                                                            2,293,384

2. Institutional Programs and

Facilities:

a. Institutional Programs and

Facilities                                                                         29,495,008

b. Academic Salary Increases                                               6,335,206

3. Related Educational Programs                                                 6,294,460

4. University of North Carolina

at Chapel Hill:

a. Academic Affairs                                                            26,466,634

b. Division of Health Affairs                                                16,484,576

5. North Carolina State University

at Raleigh:

a. Academic                                                                       23,530,126

b. Industrial Extension Service                                                  505,340

6. University of North Carolina

at Greensboro                                                                      9,447,808

7. University of North Carolina

at Charlotte                                                                          6,699,927

8. University of North Carolina

at Asheville                                                                           1,647,445

9. University of North Carolina

at Wilmington                                                                       2,743,995

10. East Carolina University                                                       11,580,733

11. North Carolina Agricultural

and Technical State University                                               4,782,695

12. Western Carolina University                                                   6,192,138

13. Appalachian State University                                                  7,869,620

14. Pembroke State University                                                     2,048,698

15. Winston-Salem State University                                              2,019,085

16. Elizabeth City State University                                                1,843,129

17. Fayetteville State University                                                    1,889,932

18. North Carolina Central University                                           4,339,567

19. North Carolina School of the Arts                                          1,275,953

Department of Administration – Reserve

for Educational Benefits – Children

of Veterans                                                                                  1,200,000

Department of Art, Culture and

History:

1. Department of Art, Culture

and History                                                                           7,682,523

2. State Art Society                                                                           8,000

3. North Carolina Symphony

Society, Inc.                                                                            420,471

Historical – Educational Grants-

in-aid                                                                                                   242,600

Subtotal – Education                                                             $986,686,053

VII. TRANSPORTATION

Department of Transportation

and Highway Safety:

1. State Ports Authority                                                              $ 272,096

2. Office of Motor Vehicles –

Automobile Financial

Responsibility Program                                                         1,018,491

Subtotal – Transportation                                                         $ 1,290,587

VIII. HEALTH, WELFARE AND REHABILITATION

Department of Human Resources:

1. Administrative Support Services:

a. Administration                                                                   $ 213,072

b. Miscellaneous Programs                                                      127,938

c. Employment of the

Handicapped                                                                        44,666

d. Council on Developmental

Disabilities                                                                           436,770

2. Office of Health Services:

a. Board of Health                                                              15,417,074

3. Office of Mental Health

Services:

a. Office of Mental Health                                                   16,710,373

b. Alcoholic Rehabilitation

Center - Black Mountain                                                     805,977

c. Alcoholic Rehabilitation

Center – Butner                                                                  806,566

d. Walter B. Jones Alcoholic

Rehabilitation Center –

Greenville                                                                            789,867

e. Dorothea Dix Hospital                                                    12,547,095

f. Broughton Hospital                                                            9,879,806

g. Western Carolina Center                                                   7,147,473

h. Cherry Hospital                                                              11,286,815

i. O'Berry Center                                                                  6,482,492

j. John Umstead Hospital                                                      8,441,058

k. Murdoch Center                                                               8,611,726

l. Caswell Center                                                                  8,466,729

m. Wright School                                                                     301,830

4. Office of Social Services:

a. Office of Social Services                                                 32,544,405

b. Child Welfare and Day Care

Services                                                                           1,844,219

c. Medical Assistance Programs                                          36,997,486

5. Office of Rehabilitation Services:

a. Commission for the Blind                                                  3,459,236

b. Vocational Rehabilitation                                                   4,517,880

6. Office of Medical Care and

Institutional Services:

a. Medical Care Commission:

Administration                                                                     296,961

Student Loan Fund –

Medical Education                                                              733,743

b. North Carolina Orthopedic

Hospital                                                                           1,013,172

c. North Carolina Cerebral

Palsy Hospital                                                                     555,009

d. North Carolina Sanatorium

System:

General Administration                                                        116,857

North Carolina Sanatorium                                               2,176,625

Western North Carolina

Sanatorium                                                                       2,128,566

Eastern North Carolina

Sanatorium                                                                       2,525,853

Gravely Sanatorium                                                          1,180,105

e. Schools for the Blind and the

Deaf:

North Carolina School for

the Deaf                                                                           2,805,047

Eastern North Carolina

School for the Deaf                                                          1,691,326

Central North Carolina

School for the Deaf                                                             749,123

Governor Morehead School                                             2,046,539

f. Confederate Women's Home                                                  94,494

Department of Administration – Child

Day Care Licensing Board                                                             148,765

Child-Caring Institutions                                                                       625,907

Children's Home Society                                                                        25,000

The University of North Carolina –

Memorial Hospital                                                                    11,682,705

North Carolina Cancer Institute                                                              26,000

Orthopedic Hospital and

Rehabilitation Center                                                                      375,832

Subtotal - Health, Welfare and

Rehabilitation                                                                        $218,878,182

IX. RESOURCE DEVELOPMENT AND PRESERVATION

Department of Natural and Economic

Resources                                                                             $ 20,988,772

Department of Administration –

North Carolina Zoological

Authority                                                                                         91,931

Subtotal - Resource Development

and Preservation                                                                    $ 21,080,703

X. AGRICULTURE

Department of Agriculture                                                              $ 7,715,282

The University of North Carolina:

Agricultural Experiment Station –

North Carolina State University

at Raleigh                                                                                   8,155,460

Cooperative Agricultural Extension

Service – North Carolina State

University at Raleigh                                                                   6,613,466

Subtotal – Agriculture                                                            $ 22,484,208

XI. DEBT SERVICE

Interest on Bonds                                                                        $ 16,522,042

Redemption of Bonds                                                                     31,625,000

Subtotal - Debt Service                                                         $ 48,147,042

XII. RESERVES

Contingency and Emergency:

To provide for contingency and

emergency expenditures for any

purpose authorized by law for

which no specific appropriation

has been made, or for which

inadvertently an insufficient

appropriation has been made.

Allotments are to be made from

this appropriation under the

provisions of G.S. 143-12, or

such other statutes as may be

applicable.                                                                               $ 2,000,000

Salary Increases of State Employees                                               29,057,248

Salary Adjustments of State

Employees                                                                                  4,200,000

Reserve for Social Security

Increases                                                                                    4,128,331

Reserve for Unemployment

Compensation                                                                               100,000

Teachers' and State Employees'

Retirement System:

Reserve for Hospitalization –

Medical Insurance and Disability

Salary Continuation Benefits                                                20,903,448

Reserve for Travel                                                               300,000

Reserve for Longevity,

SPA Employees                                                               1,811,115

Subtotal – Reserves                                                               $ 62,500,142

TOTAL GENERAL FUND                                    $1,502,030,701

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 highway activities, are hereby made for the fiscal year ending June 30, 1974, according to the following schedule:

IV. PUBLIC SAFETY AND REGULATION

Transportation Inspection:

Department of Commerce                                                           $ 302,581

VI. EDUCATION

Driver Training and Safety

Education                                                                                $ 3,119,695

VII. TRANSPORTATION

Department of Transportation

and Highway Safety:

1. Office of Secretary                                                                 $ 220,000

2. Office of Motor Vehicles                                                      34,332,574

3. Governor's Highway Safety

Program                                                                               2,137,963

4. State Highway Commission:

a. Merit Salary Increments                                                    3,647,960

b. Reserve for Contingencies                                                    500,000

c. General Administration                                                      4,593,941

d. Engineering Administration

and Supervision                                                              10,403,112

e. State Maintenance and

Construction:

(1) Primary System                                                        96,178,138

(2) Secondary System                                                    69,609,938

(3) Urban System                                                           26,814,054

(4) Public Service Roads                                                  1,635,451

f. State Funds to Match Federal

Aid Highway Planning Survey

and Highway Planning Research                                          832,828

g. State Funds to Match Federal

Aid Construction                                                            32,815,929

h. State Aid to Municipalities                                               28,500,000

i. Employer's Contribution –

Retirement                                                                       7,842,332

j. Employer's Contribution –

Social Security                                                                 5,321,690

Subtotal – Highway                                                                    $288,695,373

Subtotal – Transportation                                                            $325,385,910

X. AGRICULTURE

Department of Agriculture:

Gasoline and Oil Inspection

Service                                                                                       $ 535,865

XI. DEBT SERVICE

Bond Fund Act of 1965 – Interest

and Redemption                                                                    $ 25,083,000

XII. RESERVES

Salary Adjustments of State

Employees                                                                               $ 2,095,944

Salary Increases of State

Employees                                                                                13,156,327

Longevity Pay —

Highway Fund Employees                                                              850,000

Reserve for Hospitalization –

Medical Insurance and Disability

Salary Continuation Benefits –

Highway Fund Employees                                                           2,751,432

Reserve for Social Security

Increases                                                                                       447,493

Reserve for Travel —

Highway Fund Employees                                                                50,000

Subtotal – Reserves                                                               $ 19,351,196

TOTAL HIGHWAY FUND                              $373,778,247

Transfers and changes may be made in the Highway Fund from Salary Increases, Salary Adjustments, Longevity Pay, Reserve for Social Security, and Hospitalization-Medical and Disability Insurance Benefits to other appropriations in the Highway Fund by authorization of the Director of the Budget. Transfers and changes may be made from the Reserve for Contingencies to other appropriations in the Highway Fund by authorization of the Governor and Council of State. Transfers may be made by authorization of the Director of the Budget from Merit Salary Increments to other appropriations from the Highway Fund for the State Highway Commission. Transfers may be made by authorization of the Director of the Budget from Title VII - 4.c. and d. to Title VII - 4.e(1), e(2), e(3), e(4), 4.f. and 4.g. Transfers may be made by authorization of the Director of the Budget from Title VII - 4.e(1), e(3), e(4), 4.f., and 4.g. to Title VII - 4.c. and 4.d., provided that the original appropriation from which the transfer is made shall not be reduced by more than 10%, and provided further that transfers to Title VII - 4.c. and d. for the purpose of providing new personnel positions, shall be approved by the Advisory Budget Commission. Transfers of appropriations within subparagraphs 4.e.(1)(2)(3)(4), f, and g, of Title VII shall be governed by the provisions of G.S. 136-17(c).

The Controller of the Department of Transportation and Highway Safety is hereby directed to allocate at the beginning of each fiscal year from the appropriation "State Maintenance and Construction" herein made to the State Highway Commission, 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 rate of Federal matching under the Federal Aid Construction program is reduced effective during any part of fiscal year 1973-74, the Board of Transportation may transfer to Title VII-4-g, State Funds to Match Federal Aid Construction, sufficient funds from Title VII-4-e(1) and e(3) to provide adequate matching for Federal Aid Construction funds.

Sec. 4.  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. 5.  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.

Sec. 6.  The Director of the Budget is authorized and empowered to transfer, as between the offices, institutions or agencies under a principal department, any appropriations made herein to any of them, when in his opinion it shall be deemed to be in the best interest of the State.

SPECIAL PROVISIONS

Sec. 7.  Services herein provided for under 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                                            Pay 90% of allowable costs

State Mental and TB Hospitals                             Allowable costs (non-federal

share to be funded 100% by the

State)

Nursing Homes                                                    Pay allowable costs up to

$18.50 per day with non-federal

share paid 85% by State and

15% by counties and counties

to pay all non-federal cost

above $18.50 as may be

authorized by the General

Assembly

Drugs                                                                  Pay $2.00 service fee per

prescription plus actual drug

cost

Physicians                                                            Pay 90% of allowable usual and

customary charges

Chiropractors                                                      Pay 90% of allowable usual and

customary charges

Dental                                                                 Pay 90% of allowable usual and

customary charges

Home Health                                                       Allowable costs

Optical Services                                                  Pay 90% of allowable usual and

customary charges

Medicare Buy-In                                                 Actual cost

Public Health Clinics                                            Allowable costs

Ambulance Services                                            Allowable costs

Pre-21 Screening                                                 Allowable costs

Hearing Aids                                                       Allowable costs

Mental Health Clinics                                           Allowable costs (Federal

portion only; non-federal

share covered by State /local

operating funds)

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 non-federal costs of applicable services herein listed except as specified otherwise.

It is the further intent of this General Assembly that, as allowed by federal regulations, recipient co-payments shall be implemented 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                                        2.00

Physicians                                                                     x                                        2.00

Drugs                                          x                               x                                        1.00

Dental                                         x                               x                                        2.00

Chiropractors                              x                               x                                        2.00

Optical Services                          x                               x                                        3.00

Public Health Clinics                    x                               x                                        1.00

Mental Health Clinics                   x                               x                                        2.00

Sec. 8.  Providers of medical services under the various State programs 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 State Board of Health, services under Vocational Rehabilitation and the Commission for the Blind, and the school health program under the Department of Public Instruction. Income eligibility requirements for services shall be those requirements existing as of January 1, 1973. Any changes must be approved by the Advisory Budget Commission.

Sec. 9.  Appropriations made herein to the State Board of Health are intended to provide for the purchase of medical services for a full twelve month period for eligible recipients under certain programs; namely. Cancer, Crippled Children, and Maternal and Child Health. If during the fiscal year, expenditures in these programs indicate that the funds may be insufficient for a full twelve months, the State Board of Health shall adjust the eligibility requirements for participation in these programs to the end that the appropriations are sufficient.

Sec. 10.  Appropriations made herein to the Department of Mental Health 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. 11.  It is the intent and purpose of this act that funds appropriated herein to replace federal receipts expected to be lost shall be expended only for the specific program or activity intended. Should federal funds which were not expected to be available and which were replaced by appropriations actually be received, the appropriations so made shall revert.

Sec. 12.  It is the intent of this General Assembly that the Richard T. Fountain School at Rocky Mount shall be converted from its present custodial function to a reception and diagnostic center for students admitted to the Youth Development System from central and eastern North Carolina. Should sufficient reductions in the population of the schools be effected, the Department of Social Rehabilitation and Control shall have the authority, subject to approval of the Advisory Budget Commission, to close one or more of the remaining schools, and to redirect the resources to other programs within the Department.

Sec. 13.  It is the intention of this act that it shall be the announced policy of the Department of Community Colleges that, as to capital improvement projects, no construction contracts may be let until it has been clearly established that funds are available for the related permanent equipment.

Funds appropriated herein to the State Department of Public Education, Department of Community Colleges, to purchase equipment and library books for the community colleges institutions shall be permanent appropriations, and unexpended portions of these appropriations shall not revert to the General Fund at the end of the fiscal year.

Sec. 14.  Funds appropriated herein to the State Department of Public Education, Department of Community Colleges, for allocation to the institutions comprising the Community College System as operating expenses shall not be used to support general adult education extension courses. The financing of such courses by any institution shall be in accordance with the State Board of Education's Policy #3.0222 - Extension - self-supported, which reads:

"An institution in the Community College System shall have the authority to sponsor self-supporting programs, seminars, cultural exhibits, and the like, as differentiated from normal organized class instruction, deposit income, if any, to a local account, and pay all expenses from such local account. (6-2-66) However, contact hours produced from such activities shall not be counted for inclusion when computing FTE for use in budget‑funding formulas at the State level.(2-1-68) Institutions may also offer self-supporting organized class instruction in recreational or avocational areas by making special request to the Department of Community Colleges, showing income to offset expenditures, and justifying same. Such income will be State funds, and deposited accordingly. Expenditures will be made from an allocation of State funds made to the institution on the basis of the increased receipts shown in the application. (6-2-66)."

Sec. 15.  Funds appropriated herein to the State Department of Public Education, Department of Community Colleges, for operating costs of the community colleges and technical institutes are intended to support student enrollment at the per student rate provided by the formula adopted by the State Board of Education for 1972-73 for allocation of these operating funds and shall not be used to increase the formula by which the fund allocations will be determined.

Sec. 16.  Funds appropriated herein 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 fiscal year.

Sec. 17.  Funds appropriated herein to the State Board of Education 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. 18.  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 certification of the respective school of medicine showing the number of North Carolina residents enrolled as first, second, third and fourth year students in the school as of November 1, 1973. To the extent of the appropriation made herein, disbursement shall be made to the school 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 for tuition remission 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) per year. The Board of Governors shall prescribe regulations consistent with acts of the General Assembly for determining which students are residents of North Carolina. The Board shall also make such regulations as it may deem desirable to ensure that these funds are used directly for instruction in the medical programs of the schools and not for religious or other non-public purposes. The Board shall encourage the two schools to orient students toward personal health care in North Carolina giving special emphasis to family and community medicine.

Sec. 19.  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, 116-21, and 166-22. These funds are intended to provide up to two hundred dollars ($200.00) per full-time equivalent North Carolina student enrolled at a private institution as of October 1, 1973. These funds shall not be used for the provision of G.S. 1 16-20 and any funds not required to fulfill the intent of the General Assembly shall revert to the General Fund as of June 30, 1974.

Sec. 20.  Appropriations made herein to the Board of Governors of the University of North Carolina - Institutional Programs (Code 18106) include three million five hundred thousand dollars ($3,500,000) in a Reserve for Possible Loss of Federal Funds. It is the intent of the General Assembly that these funds be utilized only for existing programs that suffer a loss in federal funding, and that transfers or allocations of funds from this Reserve may not be made until approved by the Board of Governors, the Advisory Budget Commission, and the Standing Interim Joint Appropriations Committee. Funds remaining in this Reserve as of June 30, 1974, shall revert to the General Fund.

Sec. 21.  All appropriations for grants-in-aid to private non-profit organizations in the areas of history, art and culture shall be placed in the State fund entitled Historical - Educational Grants-in-Aid. This fund is assigned to the Department of Art, Culture and History for allocation of the funds as directed by the Director of the Budget.

The appropriation of Highlands Biological Station shall be transferred on July 1, 1973, from the fund Historical - Educational Grants-in-Aid to the Board of Governors of the University of North Carolina.

It is the intent of the General Assembly that the designated State agencies and institutions make regular and timely reviews, studies and recommendations relating the actual operations of the recipients of grants-in-aid to their needs for and use of State funds. The designated State agencies and institutions may request operating statements, audit reports and other information they deem appropriate from the grantees. Appropriation requests for all non-State organizations in these areas for the fiscal year 1974-75 shall be transmitted Old Burying Ground Richmond Hill Law School through the designated agencies and institutions for their recommendations to the Governor and the Advisory Budget Commission.

Sec. 22.  Funds appropriated in Section 2 of this act herein to the Office of Archives and History of the Department of Art, Culture and History, for grants-in-aid to assist in the restoration of significant historic sites owned by private non-profit organizations shall be expended only in accordance with Sections 121-7.5 and 143-31.2 of the General Statutes. All expenditures of State appropriated funds are contingent upon matching dollar-for-dollar by non-State funds raised by the designated recipient organizations for the same purposes on or after July 1, 1973.

The sites, amounts of State appropriations, and organizations are:

Site                                                   Appropriation                           Organization

John Wheeler House                                       $35,000                   Historic Murfreesboro

Commission

Old Burying Ground                                         15,000                   Beaufort Historical

Association

Richmond Hill Law School                                20,000                   Richmond Hill Law School

Association

Historic Hope                                                    7,000                    Historic Hope Foundation

Hezekiah Alexander Homeplace                       32,500                   Hezekiah Alexander

Foundation, Inc.

Fort Defiance                                                   35,000                   Fort Defiance, Inc.

Joel Lane House                                               20,000                   Joel Lane House, Inc.

Old Wilkes County Jail                                     11,000                   Old Wilkes, Inc.

Newbold-White House                                     25,000                   Perquimans County

Restoration Association

Wright Tavern                                                  15,000                   Rockingham County

Historical Society, Inc.

Barker and Cupola Houses                                9,000                    Historic Edenton, Inc.

Bernard Franklin House                                    30,000                   Surry County Historical

Society

Sec. 23.  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. 24.  Subject to a recommendation of the Director of the Budget, funds not to exceed one hundred fifty thousand dollars ($150,000) for the fiscal year 1973-74 may be allotted out of the Contingency and Emergency Appropriation for use by the State Department of Agriculture, North Carolina Agricultural Experiment Station, and the U.S. Department of Agriculture, for a witch weed control program and/or for payment of hog cholera indemnities.

Sec. 25.  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, 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 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 for Hospital-Medical Insurance, Disability Salary Continuation Benefits, 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.

SALARIES AND WAGES

Sec. 26.  The Director of the Budget is authorized and empowered to transfer from the appropriations in Section 2 of this act for Salary Increases of State Employees, such amounts, including the employer's retirement and social security contributions, as may be required to increase salaries in effect on June 30, 1973, for all permanent employees subject to the Personnel Act whose salaries are paid from the General Fund, and from the appropriations in Section 3 of this act for Salary Increases of State Employees, such amounts, including the employee's retirement and social security contributions, as may be required to increase salaries in effect on June 30, 1973, for all permanent employees subject to the Personnel Act whose salaries are paid from the Highway Fund, by an average of five percent (5%) commencing July 1, 1973, and for those employees whose salaries as of June 30, 1973, are two dollars and sixty-three cents ($2.63) or less per hour by an additional average of five percent (5%), rounded to conform to the steps in such salary ranges as may be adopted by the State Personnel Board. For an employee whose salary in effect on June 30, 1973, is not equal to a specific pay rate within the present salary schedule, the annual increase will be the amount applicable to the next lower pay rate.

The Director of the Budget is further authorized to transfer any unexpended balances which may remain, after the provisions of this section have been fully met, from the appropriations for Salary Increases of State Employees to the appropriations for Salary Adjustments of State Employees.

The Director of the Budget is authorized and empowered to allocate, out of special operating funds under which personnel are employed or from sources other than tax revenues, 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 salary increases for 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 these salary increases. Any question as to the applicability of the provisions of this paragraph 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.

The salary increases shall not affect the status of eligibility for automatic and/or merit salary increments for which the employee may be eligible for the fiscal year 1973-74 notwithstanding the granting of the legislative salary increase.

The salary ranges for all employees under the Personnel Act shall be increased, so far as the maximums are concerned, by amounts corresponding to those of this legislative salary increase to the end that, after the salary increases provided for in this act are made, every employee will continue to have the same relative position with respect to salary increases and future increments as he would have had if the salary increases provided by this act had not been made.

The salary increases provided in this act to be effective July 1, 1973, shall not apply to persons separated from the State service due to resignation, dismissal, reduction in force, death or retirement, whose last work day is prior to July 1, 1973.

Sec. 27.  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, including premium pay, 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. 28.  The salary of the Chief Justice of the Supreme Court shall be thirty‑nine thousand dollars ($39,000) per annum, and the salary of each of the Associate Justices of the Supreme Court shall be thirty-eight thousand dollars ($38,000) per annum; the salary of the Chief Judge of the Court of Appeals shall be thirty-six thousand five hundred dollars ($36,500) per annum, and the salaries of the Judges of said Court shall be thirty-five thousand five hundred dollars ($35,500) per annum; the salaries of the Judges of the Superior Court shall be thirty thousand five hundred dollars ($30,500) per annum; the salary of the Chief Judge of each District Court shall be twenty-four thousand five hundred ($24,500) per annum, and the salary of each District Court Judge shall be twenty-three thousand five hundred dollars ($23,500) per annum; the salary of each Solicitor shall be twenty-seven thousand dollars ($27,000) per annum, and the salaries of the Assistant Solicitors shall average seventeen thousand five hundred dollars ($17,500) per annum. The salary of the Administrative Officer of the Courts shall be thirty-two thousand five hundred dollars ($32,500) per annum, and the salary of the Assistant Administrative Officer of the Courts shall be twenty-four thousand dollars ($24,000) per annum. The salary of each Public Defender shall be twenty-seven thousand dollars ($27,000) per annum, and the salaries of the Assistant Public Defenders shall average seventeen thousand five hundred dollars ($17,500) per annum. The salary of the Clerk of the Court of Appeals shall be twenty-one thousand and fifty-two dollars ($21,052) per annum, the salary of the Clerk of the Supreme Court shall be twenty-two thousand one hundred and eight dollars ($22,108) per annum, and the salary of the Marshall-Librarian of the Supreme Court shall be twenty-one thousand one hundred and sixty dollars ($21,160) per annum.

The beginning salary of any Assistant Solicitor and Assistant Public Defender shall be twelve thousand dollars ($12,000) or less per annum, unless said employee has more than one year of criminal trial experience.

Sec. 29.  The requirements of paragraph five (5) of Chapter 864 of 1971, which requires each department to submit an Annual Plan of Work, is waived for fiscal year 1973-74.

EFFECTIVE

Sec. 30.  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. 31.  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. 32.  All laws and clauses of laws in conflict with this act are hereby repealed.

Sec. 33.  This act shall become effective July 1, 1973.

In the General Assembly read three times and ratified, this the 16th day of May, 1973.