North Carolina HB 1773: Taxpayer Bill of Rights.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2007
H 1
HOUSE BILL 1773

Short Title: Taxpayer Bill of Rights. (Public)
Sponsors: Representatives Blust, Holloway (Primary Sponsors); Brown, Dockham,
Hilton, Moore, Samuelson, and Starnes.
Referred to: Rules, Calendar, and Operations of the House.
April 19, 2007

A BILL TO BE ENTITLED 1
AN ACT TO PROVIDE GOVERNMENTAL ACCOUNTABILITY AND 2
PROTECTION TO THE TAXPAYERS BY LIMITING INCREASES IN THE 3
GENERAL FUND BUDGET, REFORMING THE BUDGET PROCESS, 4
ESTABLISHING AN EMERGENCY RESERVE TRUST FUND, AND TO 5
AMEND THE NORTH CAROLINA CONSTITUTION TO ESTABLISH A 6
GENERAL FUND EXPENDITURE LIMIT. 7
The General Assembly of North Carolina enacts: 8
SECTION 1. G.S. 143C-1-1(d) is amended by adding the following new 9
subdivisions: 10
"(12a) Fiscal growth factor. – The average of the sum of inflation and 11
population change for each of the preceding three calendar years. If 12
either inflation or the population change for the preceding three 13
calendar years is negative, then that change shall be counted as zero. 14
(16a) Inflation. – The percentage change in the consumer price index for the 15
United States for each calendar year as published by the Federal 16
Bureau of Labor Statistics. 17
(21a) Population change. – The percentage change in State population for 18
each calendar year as reported by the Office of State Budget and 19
Management." 20
SECTION 2. Article 4 of Chapter 143C of the General Statutes is amended 21
by adding the following new sections to read: 22
"§ 143C-4-8. Determination of General Fund expenditure limit. 23
(a) General Fund Expenditure Limit. – The General Fund expenditure limit for 24
each fiscal year shall be the previous fiscal year's General Fund expenditure limit 25
increased by a percentage rate that equals the fiscal growth factor. 26
(b) Base Fiscal Year for General Fund Expenditure Limit. – The total authorized 27
General Fund for the fiscal year beginning July 1, 2007, increased by the fiscal growth 28

General Assembly of North Carolina Session 2007
Page 2 House Bill 1773-First Edition
factor shall be used to determine the General Fund expenditure limit for the fiscal year 1
beginning July 1, 2008, which will then be used to determine the General Fund 2
expenditure limit for succeeding fiscal years. 3
(c) Decreases in General Fund Expenditure Limit. – If, on or after December 31, 4
2007, the cost of any State program or function is shifted from the General Fund to 5
another source of funding, including, but not limited to, counties or other units of local 6
government, or if moneys are transferred from the General Fund to another fund or 7
account, the General Fund expenditure limit shall be reduced by a like amount. 8
(d) Fiscal Reports. – On or before March 15 of each year, the Fiscal Research 9
Division and the Office of State Budget and Management shall issue a determination of 10
the General Fund expenditure limit for the fiscal year beginning July 1 of that year and a 11
projection of the General Fund expenditure limit for the next fiscal year. If the Fiscal 12
Research Division and the Office of State Budget and Management do not agree on the 13
General Fund expenditure limit, the lowest determination and projection shall be used. 14
"§ 143C-4-9. Increase in General Fund expenditure limited. 15
(a) Governor Bound by General Fund Expenditure Limit. – In preparing the 16
budget for a fiscal year, the Governor shall not propose expenditures from the General 17
Fund for the ensuing fiscal period in excess of the projected General Fund expenditure 18
limit established under G.S. 143C-4-8. 19
(b) General Assembly Bound by General Fund Expenditure Limit. – In enacting 20
the budget for the fiscal year, the General Assembly shall not make appropriations from 21
the General Fund in excess of the General Fund expenditure limit established under 22
G.S. 143C-4-8. 23
(c) No State Moneys to Be Paid in Excess of General Fund Expenditure Limit. – 24
Except as provided in G.S. 143C-4-10, no money shall be drawn from the State treasury 25
if the withdrawal will result in a State expenditure for any fiscal year in excess of the 26
General Fund expenditure limit established under G.S. 143C-4-8. Except as provided in 27
G.S. 143C-4-10, the Governor, the State Treasurer, and the State Controller shall not 28
issue or redeem any draft, check, warrant, or voucher that will result in a State 29
expenditure for any fiscal year in excess of the General Fund expenditure limit 30
established under G.S. 143C-4-8. 31
(d) Revenue in Excess of General Fund Expenditure Limit Credited to 32
Emergency Reserve Trust Fund. – All General Fund revenue collected in excess of the 33
General Fund expenditure limit shall be credited to the Emergency Reserve Trust Fund 34
at the end of each fiscal year. 35
"§ 143C-4-10. Two-thirds vote of General Assembly required to exceed General 36
Fund expenditure limit. 37
The General Assembly may, by an affirmative vote of two-thirds o