Senate committee substitute makes the following changes to 2nd edition. Replaces previous bill with AN ACT TO PROTECT UNEMPLOYMENT BENEFITS AND PREVENT ANY SHUTDOWN OF STATE GOVERNMENT with following provisions:
• Amends GS 96-12.01(a1)(4) to add new sub-subsubdivisions to provide for extended unemployment benefits as allowed under federal Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 for weeks beginning after December 17, 2010, and ending no later than December 31, 2011, under specified conditions. Provides that intent is to allow extended benefits so long as payment does not hinder state ability to reduce its debt to federal government for payment of extended benefits. New extended benefits provisions are void if payment would divert federal payroll tax revenue payable by NC employers from paying down amount state owes to federal government. Expires January 1, 2012.
• Until 2011 budget act is enacted, authorizes governor to allocate funds for fiscal 2011-12 at 87% of governor’s recommended base budget for that period excluding debt service amounts, and appropriates funds at that level. Specifies that governor is not to use overrealized receipts, cash balances, or other funds to offset expenditures. Legislative and judicial branches are to manage cuts in their budgets.
• Prohibits increases in salaries beyond June 30, 2011, level from any source until 2011 budget act takes effect. Also prohibits step increases for assistant and deputy clerks of court, magistrates, and Highway Patrol unless authorized by General Assembly.
• Amends S 265, revision of state health plan, if it becomes law, to increase state employer contribution rates for teachers and state employees, state law enforcement officers, and judicial retirement system. Appropriates following amounts from General Fund for fiscal 2011-12 for retirement contributions: $5.8 million to Treasurer for fire and rescue squad workers and $263,000 for National Guard; $297.4 million for reserve for state employees and $7.9 million reserve for judicial system. Also appropriates $13.6 million from Highway Fund to reserve for state employees retirement.
• Prohibits Controller from transferring funds from unreserved credit balance to Repairs and Renovations Reserve Account or Savings Reserve Account on June 30, 2011.
• Authorizes use of up to $125 million in unreserved credit balance to address Medicaid liabilities incurred in fiscal 2009-10, and appropriates funds for that purpose.
• Amends GS 147-69.2(b)(11) to defer from October 1, 2011, to October 1, 2012, payment of Global TransPark Authority obligations.
• Specifies that provisions of 2009 and 2010 budget acts that funds not revert at end of fiscal year remain in effect for current fiscal year. Effective June 30, 2011.
• Allows funds appropriation in act to be used for increases in enrollment in public schools, community colleges, and UNC.
• Requires that appropriations in act be used to fully fund state debt service.
• Specifies that if S 265, revision of state health plan, becomes law, funds appropriated in that act are to be used only for those purposes.
• Prohibits governor from using funds in Savings Reserve Account unless approved by General Assembly.
• Effective July 1, 2011, and expires June 30, 2012, or when 2011 budget act becomes law, whichever occurs first.
