North Carolina SB 177: Continuing Budget Adjustments.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 3
SENATE BILL 177
House Committee Substitute Favorable 6/24/25
Third Edition Engrossed 6/25/25

Short Title: Continuing Budget Adjustments. (Public)
Sponsors:
Referred to:
February 27, 2025
*S177-v-3*
A BILL TO BE ENTITLED 1
AN ACT TO MAKE VARIOUS ADJUSTMENTS AFFECTING THE CONTINUING 2
OPERATIONS OF THE STATE. 3
The General Assembly of North Carolina enacts: 4
5
PART I. HEALTH AND HUMAN SERVICES 6
7
MEDICAID REBASE AND MANAGED CARE ADMINISTRATION 8
SECTION 1.1. There is appropriated from the General Fund to the Department of 9
Health and Human Services, Division of Health Benefits, the sum of five hundred million dollars 10
($500,000,000) in recurring funds and associated receipts for each year of the 2025-2027 fiscal 11
biennium. These funds shall be used to adjust Medicaid funding to account for projected changes 12
in enrollment, enrollment mix, service and capitation costs, and federal match rates, as well as 13
the implementation of the Children and Families Specialty Plan in December 2025 or for 14
contracts needed to operate the State's Medicaid managed care program. 15
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PART II. GENERAL GOVERNMENT 17
18
AUDITOR POSITIONS 19
SECTION 2.1. There is appropriated from the General Fund to the Office of the 20
State Auditor the sum of two million two hundred fifty thousand dollars ($2,250,000) in recurring 21
funds for each fiscal year of the 2025-2027 fiscal biennium for up to 25 additional positions, 22
including salaries, benefits, and operating costs. 23
24
SBE EXEMPT POSITIONS/FUNDS 25
SECTION 2.2.(a) There is appropriated from the General Fund to the State Board 26
of Elections the sum of one million one hundred ninety-three thousand nine hundred seventy-nine 27
dollars ($1,193,979) in recurring funds for each fiscal year of the 2025-2027 fiscal biennium to 28
provide funds for the following seven new exempt positions, including salaries, benefits, and 29
operating costs: 30
(1) Administrative Officer III. 31
(2) Agency General Counsel II. 32
(3) Agency HR Director II. 33
(4) Assistant General Counsel II. 34
(5) Internal Auditor. 35

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 177-Third Edition
(6) Legislative Affairs Manager. 1
(7) Public Information Manager. 2
SECTION 2.2.(b) G.S. 126-5 reads as rewritten: 3
"§ 126-5. Employees subject to Chapter; exemptions. 4
... 5
(c14) Notwithstanding any provision of this Chapter to the contrary, each Council of State 6
agency and agency, the Office of the State Controller Controller, and the Executive Director of 7
the State Board of Elections has the sole authority to set the salary of its exempt policymaking 8
and exempt managerial positions within the minimum rates, and the maximum rates plus ten 9
percent (10%), established by the State Human Resources Commission under G.S. 126-4(2). 10
... 11
(d)(1) Exempt Positions in Cabinet Department. – Subject to this Chapter, which is 12
known as the North Carolina Human Resources Act, the Governor may designate a total of 425 13
exempt positions throughout the following departments and offices: 14
... 15
(2) Exempt Positions in Council of State Departments and Offices and Offices, 16
the Office of the State Controller. Controller, and the State Board of Elections. 17
– The Secretary of State, the Auditor, the Treasurer, the Attorney General, the 18
Superintendent of Public Instruction, the Commissioner of Agriculture, the 19
Commissioner of Insurance, the Labor Commissioner, and the State 20
Controller Controller, and the Executive Director of the State Board of 21
Elections may designate exempt positions. The number of exempt 22
policymaking positions in each department headed by an elected department 23
head listed in this subdivision is limited to 25 exempt policymaking positions 24
or two percent (2%) of the total number of full-time positions in the 25
department, whichever is greater. The number of exempt managerial positions 26
is limited to 25 positions or two percent (2%) of the total number of full-time 27
positions in the department, whichever is greater. The number of exempt 28
policymaking positions designated by the Superintendent of Public Instruction 29
is limited to 70 exempt policymaking positions or two percent (2%) of the 30
total number of full-time positions in the department, whichever is greater. 31
The number of exempt managerial positions designated by the Superintendent 32
of Public Instruction is limited to 70 exempt managerial positions or two 33
percent (2%) of the total number of full-time positions in the department, 34
whichever is greater. The total number of exempt positions, policymaking and 35
managerial, designated by the Office of the State Controller is limited to 10. 36
The total number of exempt positions designated by the Executive Director of 37
the State Board of Elections is limited to the following seven positions: 38
Agency Human Relations Director II, Agency General Counsel II, Assistant 39
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