Bill Summary for H 727 (2017-2018)

Summary date: 

Apr 10 2017

Bill Information:

View NCGA Bill Details2017-2018 Session
House Bill 727 (Public) Filed Monday, April 10, 2017
AN ACT TO PROTECT THE TAXPAYERS OF NORTH CAROLINA WITH CONSTITUTIONAL LIMITS ON THE GROWTH OF STATE SPENDING.
Intro. by Blust, Riddell, Bert Jones, K. Hall.

View: All Summaries for BillTracking:

Bill summary

Subject to approval by voters at the statewide election in November 2018, adds new Article XV of the North Carolina Constitution providing that the maximum annual percentage change in state fiscal year spending equals inflation plus the percentage change in state population in the prior calendar year. Allows the General Assembly to vote to increase this fiscal year spending limit, with approval by a two‑thirds majority of the members of each house of the General Assembly.

Creates the Emergency Reserve Fund (Fund), with appropriations from the Fund for declared emergencies upon approval by a two‑thirds majority of the members of each house of the General Assembly. Also creates the Budget Stabilization Fund (Stabilization Fund) to be used to make up the differences between total state revenues and the fiscal year spending limit when total state revenues are less than the fiscal year spending limit.

Specifies how to treat state revenues in excess of the fiscal year spending limit.

Prohibits the transfer of state cash fund principal from any state cash fund to the General Fund, other than transfers from the Fund or Stabilization Fund.

Prohibits the state from imposing on any unit of local government any part of the total costs of new programs or services, or increases in existing programs or services, unless a specific appropriation is made sufficient to pay the unit of local government for that purpose. Prohibits the proportion of state revenue paid to all units of local government from being reduced below that proportion in effect on July 1, 2018. 

Includes a severabililty clause.

Requires the General Assembly to enact legislation to implement and enforce the new Article.

Sets out the ballot language.

If approved, effective July 1, 2019.

© 2022 School of Government The University of North Carolina at Chapel Hill

This work is copyrighted and subject to "fair use" as permitted by federal copyright law. No portion of this publication may be reproduced or transmitted in any form or by any means without the express written permission of the publisher. Distribution by third parties is prohibited. Prohibited distribution includes, but is not limited to, posting, e-mailing, faxing, archiving in a public database, installing on intranets or servers, and redistributing via a computer network or in printed form. Unauthorized use or reproduction may result in legal action against the unauthorized user.

Printer-friendly: Click to view