NORTH CAROLINA GENERAL ASSEMBLY
1975 SESSION

CHAPTER 875
SENATE BILL 45

AN ACT TO MAKE APPROPRIATIONS FOR CURRENT OPERATIONS OF 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 biennium.
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 biennium ending June 30, 1977, according to the following schedule:
1975-76	1976-77
General Assembly
Continuation	$3,822,139	$5,442,805
Expansion	___ 87,239	___ 80,259
Total	3,909,378	5,523,064
Judicial Department
Continuation	40,136,213	40,993,108
Expansion	_1,323,922	__944,233
Total	41,460,135	41,937,341
The Governor's Office
Continuation	725,249	736,069
Expansion	___68,548	___68,548
Total	793,797	5,523,064
The Lieutenant Governor
Continuation	129,822	130,143
Expansion	______0	_______0
Total	129,822	130,143
Department of Administration
Continuation	16,960,535	17,479,499
Expansion	_1,298,122	_1,039,127
Total	17,258,657	18,518,626
Department of Secretary of State
Continuation	414,739	407,360
Expansion	___14,454	___14,598
Total	429,193	421,958
Department of State Auditor
Continuation	4,531,637	4,693,427
Expansion	_______0	_______0
Total	4,531,637	4,693,427
Department of State Treasurer
Continuation	2,909,863	2,939,518
Expansion	__127,320	__122,259
Total	3,036,183	3,062,224
Department of Justice
Continuation	8,569,664	8,754,026
Expansion	1,516,527	_2,341,906
Total	10,086,191	3,062,224
Department of Revenue
Continuation	16,647,019	17,109,343
Expansion	__233,105	__379,965
Total	16,880,124	17,489,308
State Board of Elections
Continuation	130,400	133,130
Expansion	______0	___25,500
Total	130,400	158,630
Department of Military &
Veterans Affairs
Continuation	3,308,649	3,386,414
Expansion	__214,280	__198,425
Total	3,522,929	3,584,839
Department of Commerce
Continuation	5,046,539	5,133,902
Expansion	_1,397,519	_1,456,124
Total	6,444,058	6,590,026
Department of Insurance
Continuation	2,858,796	2,955,955
Expansion	___87,992	__105,630
Total	2,946,788	3,061,585
Department of Labor
Continuation	2,367,915	2,342,552
Expansion	__418,631	__455,319
Total	2,786,546	2,797,871
Department of Correction
Continuation	72,291,675	73,646,741
Expansion	_5,231,941	_5,990,535
Total	77,523,616	79,637,276
Department of Public Education
1.  Department of Public
	Instruction
Continuation	4,736,598	4,791,659
Expansion	_______0	_______0
Total	4,736,598	4,791,659
2.  State Public School Fund
Continuation	722,409,995	729,798,698
Expansion	_19,458,610	_32,778,884
Total	4,736,598	4,791,659
3.  State Board of Education
Continuation	2,471,058	2,530,468
Expansion	_10,000	_37,000
Total	4,736,598	4,791,659
4.  Occupational Education
Continuation	40,415,792	40,485,421
Expansion	_______0	_1,010,000
Total	40,415,792	41,495,421
5.  Governor's School
Continuation	219,488	219,488
Expansion	_______0	_______0
Total	219,488	219,488
6.  Purchase of School Buses
Continuation	4,880,921	4,877,816
Expansion	_1,644,888	_3,704,118
Total	6,525,809	8,581,934
7.  Program of Education
	by Television
Continuation	418,640	424,552
Expansion	_______0	_______0
Total	418,640	424,552
8.  Advancement School
Grant-in-aid	_186,452	_______0
Total	186,452	0
9.  School Food Service
Continuation	3,593,057	3,897,226
Expansion	_______0	_______0
Total	3,593,057	3,897,226
10.  Professional Improvement
	Of Teachers
Continuation	968,398	970,090
Expansion	_150,000	_150,000
Total	1,118,398	1,120,090
11.  Planning Research & Development
Continuation	120,532	0
Expansion	_______0	_______0
Total	120,532	0
12.  Evaluation & Assessment
Continuation	750,467	498,599
Expansion	_______0	_______0
Total	750,467	498,599
	Subtotal-Public Schools
Continuation	781,171,398	788,494,017
Expansion	_21,263,498	_37,680,002
Total	802,434,896	826,174,019
Department of Community Colleges
1.  Dept. of Community Colleges
Continuation	92,997,457	93,060,177
Expansion	__5,016,652	__8,001,742
Total	98,014,109	101,061,919
2.  Department of Community Colleges				
	Equipment				
Continuation	4,516,458		4,516,458	
Expansion	1,687,000		2,288,750	
Special Equipment				
Cape Fear Technical Institute	60,000		80,000	
Haywood Technical Institute	140,000		60,000	
Wilson Technical Institute	635,000		562,500	
Institutional Equipment	852,800		1,586,250	
	Total	6,204,258		6,805,208	
3.  Vocational Textile School				
Continuation	258,220		262,580	
Expansion	0		0	
	Total	258,220		262,580	
Subtotal-Community Colleges				
	Continuation	97,772,135		97,839,215	
	Expansion	6,704,452		10,290,492	
	Total	104,476,587		108,129,707	
The University of North Carolina				
	Board of Governors				
1.  General Administration				
Continuation	3,431,624		3,624,023	
Expansion	0		0	
	Total	3,431,624		3,624,023	
2.  Lump Sum appropriations				
Continuation	1,278,408		1,278,408	
Expansion	13,580,674		23,406,541	
Institutional Programs	11,966,590		20,796,398	
East Carolina University				
	Medical School	1,442,278		2,363,337	
North Carolina Central				
	University Law School	75,000		150,000	
Vocational Rehabilitation				
	Center	96,806		96,806	
	Total	14,859,082		24,684,949	
3.  Related Educational Programs				
Continuation	8,012,165		8,416,302	
Expansion	4,700,000		5,489,380	
	Total	12,712,165		13,905,682	
University of North Carolina at 				
	Chapel Hill				
1.  Academic Affairs 				
Continuation	35,799,589		38,841,834	
Expansion	0		0	
	Total	35,799,589		38,841,834	
2.  Division of Health Affairs				
Continuation	23,173,017		23,414,702	
Expansion	0		0	
	Total	23,173,017		23,414,702	
3.  Area Health Education Centers				
Continuation	5,928,303		5,939,673	
Expansion	0		0	
	Total	5,928,303		5,939,673	
North Carolina State University 				
	at Raleigh				
1.  Academic Affairs 				
Continuation	32,252,700		33,211,229	
Expansion	0		0	
	Total	32,252,700		33,211,229	
2.  Industrial Extension Service				
Continuation	718,430		720,894	
Expansion	0		0	
3.  Agricultural Experiment				
	Station				
Continuation	11,100,524		11,245,097	
Expansion	0		0	
	Total	11,100,524		11,245,097	
4.  Agricultural Extension 				
	Service				
Continuation	8,461,729		8,546,525	
Expansion	0		0	
University of North Carolina				
	at Greensboro				
Continuation	13,869,353		14,076,228	
Expansion	0		0	
	Total	13,869,353		14,076,228	
University of North Carolina				
	at Charlotte				
Continuation	11,172,619		11,326,467	
Expansion	0		0	
	Total	11,172,619		11,326,467	
University of North Carolina				
	at Asheville				
Continuation	2,485,609		2,518,595	
Expansion	0		0	
	Total	2,485,609		2,518,595	
University of North Carolina				
	at Wilmington				
Continuation	4,783,686		4,903,332	
Expansion	0		0	
	Total	4,783,686		4,903,332	
East Carolina University				
Continuation	17,407,742		17,702,641	
Expansion	0		0	
	Total	17,407,742		17,702,641	
North Carolina Agricultural				
& Technical State University				
Continuation	8,193,303		8,444,705	
Expansion	0		0	
	Total	8,193,303		8,444,705	
Western Carolina University				
Continuation	9,070,276		9,175,637	
Expansion	0		0	
	Total	9,070,276		9,175,637	
Appalachian State University				
Continuation	12,950,545		13,254,447	
Expansion	0		0	
	Total	12,950,545		13,254,447	
Pembroke State University				
Continuation	3,242,805		3,311,595	
Expansion	0		0	
	Total	3,242,805		3,311,495	
Winston-Salem State University				
Continuation	3,458,257		3,552,001	
Expansion	0		0	
	Total	3,458,257		3,552,001	
Elizabeth City State University				
Continuation	2,760,569		2,801,554	
Expansion	0		0	
	Total	2,760,569		2,801,554	
Fayetteville State University				
Continuation	3,484,010		3,578,616	
Expansion	0		0	
	Total	3,484,010		3,578,616	
North Carolina Central University				
Continuation	7,236,592		7,344,356	
Expansion	0		0	
	Total	7,236,592		7,344,356	
North Carolina School of the Arts				
Continuation	1,861,995		1,938,985	
Expansion	0		0	
	Total	1,861,995		1,938,985	
North Carolina Memorial Hospital				
Continuation	16,405,175		17,154,578	
Expansion	0		0	
	Total	16,405,175		17,154,578	
Subtotal-University of North Carolina				
Continuation	248,539,025		256,322,424	
Expansion	18,280,674		28,895,921	
	Total	266,819,699		285,218,345	
Department of Cultural Resources				
Continuation	9,746,722		9,845,180	
Expansion	751,134		526,056	
	Total	10,497,856		10,371,236	
Department of Transportation				
& Highway Safety				
1.  State Ports Authority				
Continuation	292,504		292,504	
Expansion	0		0	
	Total	292,504		292,504	
2.  Aid to Airports				
Continuation	1,000,000		2,000,000	
Expansion	126,027		119,379	
	Total	1,126,027		2,119,379	
3.  Grants - Mass Transit				
Continuation	0		0	
Expansion	1,000,000		1,000,000	
	Total	1,000,000		1,000,000	
4.  Teaching of Certifying Breath				
Test Operators				
Continuation	0		0	
Expansion	159,572		166,399	
	Total	159,572		166,399	
Subtotal-Department of				
Transportation & Highway Safety				
Continuation	1,292,504		2,292,504	
Expansion	1,285,599		1,785,778	
	Total	2,578,103		4,078,282	
Department of Human Resources				
1.  Departmental Administration				
	and Support				
Continuation	1,982,444		2,013,382	
Expansion	334,665		334,665	
	Total	2,317,109		2,348,047	
2.  Health Services				
Continuation	22,070,400		22,305,746	
Expansion	3,151,838		5,290,111	
	Total	25,222,238		27,595,857	
3.  Services for the Blind				
Continuation	3,172,966		3,190,280	
Expansion	167,800		332,664	
	Total	3,340,766		3,522,944	
4.  Vocational Rehabilitation				
Continuation	4,937,542		5,107,595	
Expansion	206,837		204,982	
	Total	5,144,379		5,312,577	
5.  Mental Health Services				
(a) Administration and Grants-in-aid				
Continuation	29,197,314		28,449,639	
Expansion	1,650,000		1,852,099	
	Total	30,847,314		30,301,738	
(b) Alcoholic Rehabilitation Center,				
	Black Mountain				
Continuation	1,400,227		1,449,325	
Expansion	25,000		35,000	
	Total	1,425,227		1,484,325	
( c ) Alcoholic Rehabilitation Center				
	Butner				
Continuation	995,635		1,027,343	
Expansion	5,000		5,000	
	Total	1,000,635		1,032,343	
(d) Walter B. Jones Alcoholic				
	Rehabilitation Center, Greenville				
Continuation	1,004,774		1,036,495	
Expansion	10,000		10,000	
	Total	1,014,774		1,046,495	
( e ) Dorothea Dix Hospital				
Continuation	15,569,442		15,770,388	
Expansion	110,250		147,000	
	Total	15,679,692		15,917,388	
(f) Broughton Hospital				
Continuation	11,522,498		12,078,121	
Expansion	173,248		231,000	
	Total	11,695,746		12,309,121	
(g) Western Carolina Center				
Continuation	7,783,784		8,017,810	
Expansion	187,000		250,000	
	Total	7,970,454		8,267,810	
(h) Cherry Hospital				
Continuation	13,117,578		13,405,663	
Expansion	89,250		119,000	
	Total	13,206,828		13,524,663	
(i) O'Berry Center				
Continuation	6,408,300		6,488,878	
Expansion	196,350		262,500	
	Total	6,604,650		6,751,378	
(j) John Umstead Hospital				
Continuation	10,715,974		10,962,197	
Expansion	152,252		203,000	
	Total	10,868,226		11,165,197	
(k) Murdoch Center				
Continuation	10,987,585		10,969,004	
Expansion	252,450		337,500	
	Total	11,240,035		11,306,504	
(l) Caswell Center				
Continuation	10,868,761		10,970,455	
Expansion	299,200		400,000	
	Total	11,167,961		11,370,455	
(m) Wright School				
Continuation	550,218		561,954	
Expansion	0		0	
	Total	550,218		561,954	
6. North Carolina Orthopedic				
	Hospital				
Continuation	911,248		928,465	
Expansion	0		0	
	Total	911,248		928,465	
7. Lenox D. Baker Cerebral				
	Palsy & Crippled Children's				
	Hospital of North Carolina				
Continuation	655,804		679,748	
Expansion	29,100		29,100	
	Total	684,904		708,848	
8. Confederate Women's Home				
Continuation	95,269		95,269	
Expansion	0		0	
	Total	95,269		95,269	
9. North Carolina Specialty				
	Hospitals				
(a) General Administrative Office				
Continuation	237,854		246,236	
Expansion	0		0	
	Total	237,854		246,236	
(b) McCain Hospital				
Continuation	2,696,901		2,702,538	
Expansion	0		0	
	Total	2,696,901		2,702,538	
( c ) Western Carolina Hospital				
Continuation	2,617,099		2,577,944	
Expansion	0		0	
	Total	2,617,099		2,577,944	
(d) Eastern North Carolina Hospital				
Continuation	2,723,257		2,659,761	
Expansion	0		0	
	Total	2,723,257		2,659,761	
10. North Carolina School for the Deaf				
Continuation	3,414,642		3,444,992	
Expansion	163,334		166,554	
	Total	3,577,976		3,611,546	
11. Eastern North Carolina				
	School for the Deaf				
Continuation	1,958,424		2,016,554	
Expansion	21,278		22,148	
	Total	1,979,702		2,038,702	
12. Central North Carolina				
	School for the Deaf				
Continuation	1,469,177		1,418,958	
Expansion	43,252		71,093	
	Total	1,512,429		1,490,051	
13. Governor Morehead School				
Continuation	2,376,748		2,413,152	
Expansion	0		0	
	Total	2,376,748		2,413,152	
14. Facility Services				
Continuation	5,858,504		5,817,431	
Expansion	411,913		422,088	
	Total	6,270,417		6,239,519	
15. Social Services				
Continuation	77,823,696		77,079,152	
Expansion	19,844,670		28,521,076	
	Total	97,668,366		105,600,228	
16. State Aid to Non-State				
	Health & Welfare Agencies				
Continuation	2,495,232		2,495,232	
Expansion	199,779		199,779	
	Total	2,695,011		2,695,011	
Subtotal-Department of				
Human Resources				
Continuation	257,618,967		258,379,707	
Expansion	27,724,466		39,446,359	
	Total	285,343,433		297,826,066	
Department of Natural & Economic				
Resources				
Continuation	23,421,276		23,865,418	
Expansion	1,068,512		1,304,324	
	Total	24,489,788		25,169,742	
Department of Agriculture				
Continuation	13,339,874		13,618,129	
Expansion	303,494		181,099	
	Total	13,643,368		13,799,228	
Debt Service-Interest				
Continuation	15,900,615		20,819,000	
Expansion	0		0	
	Total	15,900,615		20,819,000	
Debt Service-Redemption				
Continuation	18,970,000		21,300,000	
Expansion	0		0	
	Total	18,970,000		21,300,000	
Contingency & Emergency				
Continuation	2,000,000		2,000,000	
Expansion	0		0	
	Total	2,000,000		2,000,000	
Salary Adjustments of State Employees				
Continuation	600,000		600,000	
Expansion	0		0	
	Total	600,000		600,000	
Reserve for Retirement				
Continuation	0		0	
Expansion	2,000,000		2,000,000	
	Total	2,000,000		2,000,000	
Reserve for Cost Increase				
Utilities & Fuel				
Continuation	0		0	
Expansion	4,350,000		4,350,000	
	Total	4,350,000		4,350,000	
Reserve for Cost Increase Postage				
Continuation	0		0	
Expansion	250,000		250,000	
	Total	250,000		250,000	
Reserve for Salary Increase				
for certain employees not subject				
to the Personnel Act:				
College Academic Personnel EPA				
Continuation	0		0	
Expansion	834,827		1,669,654	
Community College Personnel EPA:				
Continuation	0		0	
Expansion	1,475,572		2,951,144	
	Total	2,310,399		4,620,798	
Reserve to provide for				
one month's salary				
for deleted positions				
Continuation	0		0	
Expansion	300,000		0	
	Total	300,000		0	
TOTAL GENERAL FUND				
	Continuation	1,651,222,370		1,681,659,586	
	Expansion	98,611,828		144,553,704	
	Total	1,749,834,198		1,826,213,290	

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 transportation-related activities, are hereby made for the biennium ending June 30, 1977, according to the following schedule:
TRANSPORTATION
1975-76	1976-77
A. Department of Transportation	$393,789,661 		$374,005,979 	
1. General Administration				
	a. Policy & Program Direction	555,688		556,408	
	b. Central Management & Service	8,669,107		8,972,723	
	c. Transportation Planning	780,930		775,040	
	d. Transportation Safety	10,271,593		10,626,144	
2. Highways				
	a. General Management	1,353,856		1,352,210	
	b. Engineering Management	14,883,381		14,641,316	
	c. State Construction				
	    1. Primary Construction	41,006,395		21,280,912	
	    2. Secondary Construction				
	        (a) Statewide	0		0	
	        (b) Safety Improvements	100,000		100,000	
	        (c ) County	30,000,000		30,000,000	
	    3. Urban Construction	16,067,997		10,573,649	
	    4. Access & Public Roads	1,500,000		1,500,000	
	    5. Bridge Replacements	5,000,000		5,000,000	
	d. State Funds to Match				
	    Federal Highway Aid-				
	    Planning Survey &				
	    Highway Planning Research	1,356,526		1,367,714	
	e. State Funds to Match Federal				
	    Highway Aid-Construction	44,595,615		44,595,614	
	f. State Maintenance				
	        1. Primary	39,360,480		43,624,655	
	        2. Secondary	64,847,320		64,301,380	
	        3. Urban	11,679,066		11,974,892	
	g. Ferry Operations	7,355,235		4,564,901	
	h. State Aid to Municipalities	29,750,000		29,375,000	
3. Mass Transportation Planning	102,454		118,457	
4. Revenue Collection & Vehicle Regulation	13,418,783		13,457,175	
5. State Highway Patrol	24,686,680		24,697,052	
6. Reserve and Transfers				
	a. Merit Salary Increments				
	b. Employers Retirement				
	    Contribution for central offices				
	    & Division of Highways	9,975,109		9,994,282	
	c. Highway Fund Contribution				
	    to the Law Enforcement				
	    Officers Retirement Fund	1,330,000		1,435,000	
	d. Employers Social Security				
	    Contribution for the central				
	    offices and the Division of				
	    Highways	6,115,903		6,127,080	
	e. Employers Contribution for				
	    Hospital/Medical Insurance				
	    central offices & Division of 				
	    Highways	1,918,956		1,922,856	
	f. Disability & Salary				
	    Continuation for the central offices			
	    and the Division of Highways	442,834		443,736	
	g. Reimbursement to the 				
	    Department of Revenue for 				
	    Gasoline Tax Collection	680,803		690,642	
	h. Reserve for Implementation of				
	    the Occupational Health and				
	    Safety Act	375,000		375,000	
B. Other Highway Fund:  (Total)	26,905,839		26,194,021	
1. Debt Service	23,776,500		23,156,000	
2. Salary Adjustments for 				
	Highway Fund Positions	1,000,000		1,000,000	
3. Reserve for Contingencies	500,000		500,000	
4. Reserve for Increased				
	Retirement Benefits	220,000		220,000	
5. Department of Commerce for 				
	Transportation Inspection	415,659		418,658	
6. Department of Agriculture for				
	Gasoline Inspection	993,680		899,363	
	    TOTAL HIGHWAY FUND	$420,695,500 		$400,200,000 	

Transfers may be made by authorization of the director of the budget from Section 3, Title A 2.a. and b. to Title A 2.c(l), c(2)(a), c(2)(b), c(2)(c), c(3), c(4), A 2.d., and A 2.e. Transfers may be made by authorization of the director of the budget from Section 3, Title A 2.c(l), c(3), c(4), A 2.d. and A 2.e. to Title A 2.a. and A 2.b., provided that the original appropriation from which the transfer is made shall not be reduced by more than ten percent (10%), and provided further that transfers to Title A 2.a. and A 2.b. for the purpose of providing additional positions, shall be approved by the Advisory Budget Commission. Transfers of appropriations within subparagraphs A 2.c. (1), c(2), c(3), c(4), A 2.d., A 2.e., A 2.f(l), f(2), f(3), and A 2.g., shall be governed by the provisions of G.S. 136-44.2. Allocations may be made from the Reserve for Contingencies by authorization of the Governor and Council of State. In the event the revenue exceeds the Highway Fund appropriation made herein, the excess will be allocated to construction of the three highway systems in the same proportional amounts as appropriated.
In the event the revenue is less than the appropriations, State funded construction appropriations in the Primary, Secondary, and Urban systems shall be reduced up to the extent necessary to maintain a viable highway maintenance program.
The Controller of the Department of Transportation and Highway Safety is hereby directed to allocate at the beginning of each fiscal year from the various appropriations in Section 3 under Titles A 2.c, A 2.d., A 2.e., A 2.f., and A 2.g. herein made to the Office of Highways, 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 availability of federal funds or the rate of federal matching for any program under the federal aid construction program is changed during any part of the 1975-77 biennium, the director of the budget may authorize transfers in Section 3 between Title A 2.c, State construction, A 2.f., State maintenance, A 2.d., State funds to match federal aid highway planning survey and highway planning research, and A 2.e., State funds to match federal aid construction, or within the affected federal aid programs, of sufficient funds to provide adequate matching for federal aid construction funds; provided that no transfers shall be made from Title A 2.c.(2), secondary construction, or A 2.f.(2), secondary maintenance, for this purpose.
During each fiscal year, the director of the budget, upon recommendation of the Board of Transportation, may authorize establishment of a reserve for school and industrial access roads and emergencies as provided for by G.S. 136-44.2, and other required reserves.
Notwithstanding any other provisions of this act or any other provision of the law, no transfers shall be made from the appropriation for secondary road county construction, nor shall that appropriation be reduced by any amount, except by a reduction, uniformly applicable to all highway construction appropriations made necessary by reduction in revenues.
Sec. 4.  General Statute 20-7(j) is hereby rewritten to read as follows: "The fees collected under this section and G.S. 20-14 shall be placed in the Highway Fund."
General Statute 20-85 is hereby amended by deleting the last sentence thereof.
General Statute 20-183.7 is hereby amended by rewriting the last sentence thereof as follows: "The Department of Motor Vehicles shall receive thirty-five cents (35¢) for each inspection certificate, and these proceeds shall be placed in the Highway Fund."
Sec. 5.  Of the three hundred seventy-five thousand dollars ($375,000) appropriated for the Occupational Safety and Health Act (OSHA) in the Department of Transportation, one hundred seventy-five thousand dollars($175,000) shall be transferred to the Department of Labor to administer the OSHA program in the Department of Transportation.
Sec. 6.  It is the intent of the General Assembly that funds appropriated herein for regional and divisional personnel offices and related expenses shall be used only for those personnel officers who function in a staff or subordinate role to the Assistant Chief Engineers or Division Engineers.
Sec. 7.  Highway Fund appropriations shall not be transferred to the State Board of Education to supplement the annual vehicle registration tax collected under the provision of G.S. 20-88.1.
Sec. 8.  In each year that an appropriation bill is considered by the General Assembly, the Department of Transportation shall make a report to the appropriations committee of each house on all services provided by the department to the public for which a fee is charged. The report shall include an analysis of the cost of each service and the fee charged for that service.
Sec. 9.  Any balances remaining in the "Drivers License Fund", the "Safety Equipment Inspection Fund" and the "Lien Recording Fund" on July 1, 1975, shall be placed in the Highway Fund.
Funds appropriated by previous General Assemblies from the Highway Fund to the Governor's Highway Safety Program in the amount of one million nine hundred eighty thousand dollars ($1,980,000) which are not now obligated are hereby reverted and reapplied to meet Highway Fund appropriations authorized in this act.
Sec. 10.  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. 11.  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.
SPECIAL PROVISIONS
Sec. 12.  Appropriations in Section 2 for services provided, in accordance with 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	90 percent of allowable costs.
State Mental and Specialty
Hospitals & Mental
Retardation Centers 	Allowable costs ("Fair" compensation).
(All Medicaid services
including mental, medical,
intermediate care & skilled
nursing care)
Skilled Nursing Facilities	Allowable costs up to $25.00
(SNF)	per day.
Drugs	Average national wholesale drug cost plus $2.50 professional service fee per prescription per month.
Physicians	90 percent of allowable usual & customary charges.
Chiropractors	90 percent of allowable usual & customary charges.
Dental	90 percent of allowable usual & customary charges.
Home Health	Allowable Costs.
Optical Services	90 percent of allowable usual & customary charges.
Medicare Buy-in	Actual premium.
Public Health Clinics	Allowable Costs.
Ambulance Services	100 percent of allowable, reasonable, usual & customary charges.
Pre-21 Screening	Allowable costs.
Hearing Aids	80 percent usual, customary, & reasonable charges (including dispensing fee).
Mental Health Clinics	Allowable costs (federal portion only; nonfederal share covered by State/local operating funds.)
Intermediate Care Facilities	Allowable costs
Family Planning	Allowable costs (See specific services, i.e., Physician, Clinic, etc.).
Independent Laboratory
& X-Ray Services	90 percent of allowable usual & customary charges.
Optical Supplies	100 percent of reasonable wholesale cost of materials.
Any changes in services or rates of payment in the Medicaid Program must be approved by the Governor and the Advisory Budget Commission.
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 nonfederal costs of applicable services herein listed or a prepaid premium if Medicaid Services and related administrative costs are paid for by a health-insuring contractor.
It is the further intent of this General Assembly that, as allowed by federal regulations, recipient co-payments shall be required 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	   1.00
Physicians	x	   1.00
Optometrists	x	   1.00
Drugs	x	x	     .50
Dental	x	x	   2.00
Chiropractors	x	x	   1.00
Optical Services	x	x	   2.00
Maximum net family annual income eligibility standards for Medicaid shall be as follows; any change must be approved by the Governor and the Advisory Budget Commission.
Categorically	Medically
Family Size	Needy	Needy
1	$1,452	$1,700
2	  1,908	  2,200
3	  2,196	  2,500
4	  2,400	  2,800
5	  2,628	  3,000
6	  2,832	  3,200
7	  3,036	  3,400
8	  3,168	  3,600
9	  3,300	  3,800
10	  3,480	  4,000
11	  3,660	  4,200
12	  3,840	  4,400
13	  4,020	  4,600
Sec. 13.  Providers of medical services under the 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 Division of Health Services, services under Vocational Rehabilitation and services for the blind under the Department of Human Resources.
Maximum net family annual income eligibility standards for services in these programs shall be as follows; any change must be approved by the Governor and the Advisory Budget Commission.
Maternal and Child
Care, Cancer	Blind
Family Size	Migrant Health	Kidney	Rehabilitation
1	$4,200	$6,400	3,600
2	5,300	8,000	4,800
3	6,400	9,600	5,700
4	7,500	11,000	6,300
5	7,900	12,000	6,900
6	8,300	12,800	7,500
7	8,800	13,600	8,100
8	9,300	14,400	8,700
9	9,800	15,200	9,300
10	10,300	16,000	9,900
11	10,900
12	11,400
13	12,000

Medical Eye	Medical Eye Care
	Care Blind	Blind Pre-School &	Vocational
Family Size	Adults	School Children	Rehabilitation
1	$1,800	$4,200	$2,568
2	2,520	5,300	4,260
3	3,180	6,400	5,052
4	3,600	7,500	6,204
5	3,960	7,900	7,104
6	4,320	8,300	7,814
7	4,680	8,800	8,524
8	5,040	9,300	9,235
9		9,800	9,945
10		10,300	10,656
11		10,900	11,366
12		11,400	12,076
13		12,000	12,787

Sec. 14.  Appropriations made herein for health programs not covered under Medicaid are intended to provide for the purchase of medical services for a full twelve-month period for eligible recipients under these programs. If during the fiscal year, expenditures in these programs indicate that the funds may be insufficient for a full twelve months, the Department of Human Resources shall adjust the eligibility requirements for participation in these programs to the end that the appropriations are sufficient.
Sec. 15.  Appropriations made herein to the Division of Mental Health Services 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. 16.  It is the intent of this General Assembly that non-State health and welfare agencies submit their appropriation requests for grants-in-aid through the Secretary of the Department of Human Resources for recommendations to the Governor and the Advisory Budget Commission and the General Assembly, and that agencies receiving these grants, at the request of the Secretary of the Department of Human Resources, provide a post-audit of their operations that has been done by a certified public accountant.
Sec. 17.  The Department of Human Resources is authorized and directed to utilize any funds available to the department by reason of increased Social Security and/or Supplemental Security Income checks to General Assistance recipients, and consequent reduction in the amounts otherwise required as supplementary State funds, to provide increased payments for those General Assistance recipients receiving family care, rest home, and attendant care services.
Sec. 18.  It is the intent and purpose of this act to establish a more adequate level of direct patient care in each of the mental health institutions. Positions recommended for direct patient care in the budget shall not be reclassified and funds shall not be reallocated to non-direct patient-care activities.
Sec. 19.  Appropriations made herein to the Department of Community Colleges for equipment and library books are made for each year of the biennium, and all unencumbered appropriations shall revert to the General Fund twelve months after the close of the fiscal year for which they were appropriated. Encumbered balances or unliquidated obligations outstanding at the end of this period shall be handled in accordance with existing State budget policies.
Sec. 20.  Funds appropriated herein to the State Department of Public Education, Department of Community Colleges, as operating expenses for allocation to the institutions comprising the Community College System shall not be used to support recreation extension courses. The financing of such courses by any institution shall be on a self-supporting basis and contact hours produced from such activities shall not be counted when computing full-time equivalent students for use in budget-funding formulas at the State level.
Sec. 21.  Each stipend recipient in the Department of Community Colleges Administrator Training Program shall serve public post-secondary education in North Carolina two months for every one month on stipend, or repay a pro rata share of the State funds received.
Sec. 22.  For the purposes of determining the system-wide number of curriculum instructional unit positions each year, the total curriculum and extension full-time equivalent student enrollment shall be divided by 23.
Sec. 23.  Funds appropriated in Section 2 for the Department of Community Colleges to increase support for supplies and materials shall be used to increase the formulas by which supplies and materials funds are allocated to the institutions and shall not be used to change any other allocation formulas. All other funds appropriated for operating costs of the community colleges and technical institutes are intended to support student enrollment at the per student rate provided by the formulas adopted by the State Board of Education for the preceding year and shall not be used to increase the formulas by which fund allocations will be determined.
Sec. 24.  Funds appropriated herein to the Department of Community Colleges 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. 25.  Funds appropriated 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 biennium.
Sec. 26.  Funds appropriated in Section 2 to the State Department of Public Education for clerical assistance in the public schools and for instructional personnel in psychological and guidance counseling, health and social services, reading, mathematics, and cultural arts shall be allocated to local administrative units according to formulas in effect on June 30, 1975. The State Board of Education shall require local administrative units to provide evidence that the expenditure of local funds for each such purpose is no less than the amount expended per pupil in average daily membership for each such purpose during the prior year. At the discretion of the State Board of Education, funds appropriated under this act may be withheld to ensure that supplanting of local funds does not occur. The State Board of Education is empowered to waive this requirement upon evidence provided by the local administrative units that compliance will result in inefficient use of funds and that the overall per pupil expenditure from local funds for instructional purposes is no less than the overall per pupil expenditure from local funds for such purposes in the preceding fiscal year.
Sec. 27.  Funds appropriated in Section 2 of this act to the State Department of Public Education for the development of health, physical education, and athletic activities shall be allocated by the State Board of Education to local administrative units on the basis of average daily membership in kindergarten through grade six.
Sec. 28.  Funds appropriated in Section 2 to the State Department of Public Education to replace lost federal receipts shall be utilized only for existing programs that experience a loss in federal funding and any amounts not so required shall revert to the General Fund.
Sec. 29.  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 certifications of the respective schools of medicine that show the number of North Carolina residents as first-, second-, third- and fourth-year students in the school as of November 1, 1975, and November 1, 1976. Disbursement to Wake Forest University shall be made in the amount of eight thousand dollars ($8,000) for each such student, one thousand dollars ($1,000) of which shall be placed by the school in a fund to be used to provide financial aid to needy North Carolina students who are enrolled in the school, provided that the maximum aid given to any student from this fund in a given year shall not exceed the amount of the difference in tuition and academic fees charged by the school and those charged at the School of Medicine at The University of North Carolina at Chapel Hill.
Disbursement to Duke University shall be made 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 student financial aid 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) each year. In addition to this basic disbursement for each year of the 1975-77 biennium, a disbursement of one thousand dollars ($1,000) shall be made for each such student in the first-year class to the extent that the enrollment of the first-year class exceeds 30 North Carolina students in the 1975-76 fiscal year. In the 1976-77 fiscal year, the additional disbursement of one thousand dollars ($1,000) shall be made for each such student in the first- and second-year class to the extent that enrollment of each class exceeds 30 North Carolina students.
The Board of Governors shall establish the criteria for determining the eligibility for financial aid of needy North Carolina students who are enrolled in the schools and shall review the grants or awards to said eligible students. The Board of Governors shall promulgate regulations for determining which students are residents of North Carolina for the purposes of these programs. The Board shall also make such regulations as it may deem desirable to insure that these funds are used directly for instruction in the medical programs of the schools and not for religious or other nonpublic purposes. The Board shall encourage the two schools to orient students towards personal health care in North Carolina giving special emphasis to family and community medicine.
Sec. 30.  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, G.S. 116-21, and G.S. 116-22. These funds are intended to provide up to two hundred dollars ($200.00) per full-time equivalent North Carolina undergraduate student enrolled at a private institution as of October 1 each year.
In addition to any funds appropriated pursuant to G.S. 116-19 and in addition to all other financial assistance made available to private educational institutions located within the State, or to students attending such institutions, there is hereby granted to each full-time North Carolina undergraduate student attending an approved institution, as defined in G.S. 116-22, the sum of two hundred dollars ($200.00) per academic year, which shall be distributed to the student as hereinafter provided.
The tuition grants provided for herein shall be administered by the State Education Assistance Authority pursuant to rules and regulations promulgated by the State Education Assistance Authority not inconsistent with this act. The State Education Assistance Authority shall not approve any grant until there has been received from an appropriate officer of the approved institution a certification that the student applying for said grant is an eligible student. Upon receipt of such certification, in proper form, the State Education Assistance Authority shall remit, at such times as it shall prescribe, said grant to the approved institution on behalf and to the credit of such student.
In the event a student on whose behalf a grant has been paid shall not be enrolled and carrying a minimum academic load as of the tenth classroom day following the beginning of the school term for which such grant was paid, the institution shall refund to the State Education Assistance Authority the amount of grant paid on behalf of such student for such term. Each approved institution shall be subject to examination by the State Auditor for the purpose of determining whether such institution has properly certified eligibility and enrollment of students and credited grants paid in the behalf of such students.
In the event there are not sufficient funds to provide each eligible student with a full grant, each eligible student shall receive a reduced but equal share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation.
Expenditures made pursuant to this section shall be used for secular educational purposes only. If any provision of this section or the application thereof to any person or circumstances be held invalid, such invalidity shall not affect other provisions or applications of this section which can be given effect without the invalid provision or application, and to this end the provisions of this section are declared to be severable.
Sec. 31.  Within the limits of the appropriations made in Section 2 to the Board of Governors of The University of North Carolina, community hospitals are to be awarded grants in the amount of fifteen thousand dollars ($15,000) per year for each certified residency that is established and filled and that represents an increase over the number of certified residencies at those hospitals as of June 30, 1974, in the fields of family practice, internal medicine, pediatrics, and obstetrics and gynecology.
Sec. 32.  The Board of Governors is urged to utilize the funds appropriated in Section 2 for institutional programs to maintain accreditation of the North Carolina Central University Law School; to obtain accreditation of the East Carolina University School of Medicine; to provide for scheduled enrollment increases in the Division of Health Affairs at UNC-Chapel Hill, East Carolina University, and in other health-related programs on other campuses of the University; and to provide for the planned expansion of the Area Health Education Centers.
Sec. 33.  The balance, as of June 30, 1975, of the seven million five hundred thousand dollars ($7,500,000) appropriated in Chapter 562 of the 1973 Session Laws to the Board of Governors of The University of North Carolina as a reserve to establish an additional degree-granting school of medicine within The University of North Carolina and carried forward by Chapter 1190 of the 1973 Session Laws, and the balance, as of June 30, 1975, of the seven million five hundred thousand dollars ($7,500,000) appropriated in Chapter 1190 of the 1973 Session Laws as a reserve for the purposes outlined in Section 46 of that act, are hereby carried forward as a non-reverting special fund to the Board of Governors of The University of North Carolina, which shall be available for current operation or capital improvement expenditures, or both, in support of the development of a degree-granting school of medicine within The University of North Carolina, heretofore authorized by the Board of Governors at East Carolina University. These funds may be used for, but are not limited to, expenditures for the planning and construction of clinical and other educational facilities to support the medical education program in buildings of the Pitt County Memorial Hospital.
If these funds are used for such purposes, any alterations or construction that is required for these purposes that is within or attached to the physical confines of the buildings of Pitt County Memorial Hospital according to construction contracts that have been previously entered into by the contracting parties for Pitt County Memorial Hospital, may be exempt from the requirements of G.S. 143-129 and G.S. 143-132 and accomplished by negotiated change orders to existing contracts.
This exemption does not apply to the construction of any free-standing addition or additions to the Pitt County Memorial Hospital for the accomplishment of the above purposes.
Sec. 34.  Fifty percent (50%) of all indirect costs (overhead receipts) received in connection with contracts and grants in any fiscal year by any of the constituent institutions of The University of North Carolina shall be transferred to their general operating budget as reimbursement for operating costs.
Sec. 35.  This act provides for withdrawing four million dollars ($4,000,000) from the balances of the overhead receipts funds at the constituent institutions of The University of North Carolina. This reduction shall be apportioned among the constituent institutions in proportion to the May 31, 1975, balances in these funds at each institution.
Sec. 36.  Of the amount appropriated in Section 2 to the Board of Governors for related educational programs, five hundred thousand dollars ($500,000) for 1975-76 and six hundred fifty thousand dollars ($650,000) for 1976-77 and any matching federal funds shall be used by the State Education Assistance Authority to establish a North Carolina incentive grants program for financial aid to needy North Carolina undergraduate students enrolled in post- secondary education institutions in North Carolina.
Sec. 37.  Funds appropriated herein to the Board of Governors of The University of North Carolina for allocation to the constituent institutions shall be distributed fairly and equitably among the institutions in accordance with the provisions of G.S. 116-11(9).
Sec. 38.  All funds provided as grants-in-aid to private nonprofit organizations in the areas of history, art, and culture are appropriated to the Department of Cultural Resources for allocation in accordance with law. Funds appropriated to the department for grants-in-aid to assist in the restoration of significant historic sites owned by private nonprofit organizations shall be expended only in accordance with Sections 121-11, 121-12 and 143-31.2 of the General Statutes.
It is the intent of the General Assembly that non-State organizations operating in the areas of history, art, and culture submit their requests for grant-in-aid appropriations through the Secretary of the Department of Cultural Resources for recommendations to the Governor, the Advisory Budget Commission and the General Assembly. The Secretary is empowered and directed to make regular and timely reviews, studies and recommendations concerning the operations and needs of these organizations for State funds. In discharging this responsibility, the Secretary may request from the grantees operating statements, audit reports and other information deemed appropriate.
Sec. 39.  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. 40.  Subject to a recommendation of the director of the budget and with the approval of the Council of State, funds may be allotted out of the Contingency and Emergency Appropriation for use by the State Department of Agriculture, the North Carolina Agricultural Experiment Station, the United States Department of Agriculture, or any of them, for a witch weed control program or for payment of hog cholera indemnities, or both.
Sec. 41.  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, the Judicial Department 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 1305 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 of Hospital-Medical Insurance, 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.
Sec. 42.  Subject to the rules and regulations promulgated by the Department of Administration and approved by the director of the budget, any State department, institution, or agency of the State is hereby authorized to expend, from appropriations made in this act, funds to pay reasonable expenses for transporting the household goods of an employee and members of his household when the transfer of the employee is considered by the director of the budget to be in the best interests of the State.
Sec. 43.  The director of the budget with the approval of the Council of State is authorized to make transfers from the Contingency and Emergency Fund for any purpose authorized by law for which no specific appropriation has been made, or when, inadvertently, an insufficient appropriation has been made.
Sec. 44.  The director of the budget, with the approval of the Advisory Budget Commission and upon the request of the Governor's Aviation Committee, is authorized and empowered to allocate grants from the appropriations for airport improvements made in Section 2 of this act.
Sec. 45.  The Secretary of the Department of Human Resources is authorized to establish rules and regulations applicable to local human resource agencies for the purpose of program evaluation, fiscal audits, and collection of third-party payments.
Sec. 46.  It is the intent of this General Assembly that, of the appropriations enumerated above in this act, the elements listed below are to be financed from the General Revenue Sharing Trust Fund of the State.
Public Schools, Direct Financial Support of Local School Systems Programs
Support Services at the Local Level Subprogram
1975-76	1976-77
Pupil Transportation Element:
Operational Costs	$36,712,159	$36,441,040
Bus Replacement	6,525,809	5,010,760
Textbooks Element	5,541,862	__________
Total	$48,779,830	$41,451,800
Sec. 47.  There is hereby repealed G.S. 135-4(m) and G.S. 135-5(u) which require that the employer portion of the annual cost to fund the provisions of G.S. 135-4(f)(6), (k) and (1) and G.S. 135-5, subsections (s) and (t) shall be paid by the employer based on the employer contribution rate as determined by the actuary and no cost shall be paid from funds now held by the Retirement System.
Sec. 48.  Subject to legislative action to transfer the Division of Youth Development and the training schools of the Department of Correction to the Department of Human Resources, it is the intent of the General Assembly that all funds appropriated in this act for the administration and operation of the Division of Youth Development and the schools shall be transferred to the Department of Human Resources.
Sec. 49.  Grant-in-aid funds appropriated to the Department of Cultural Resources, as a supplement to private funds for expenses incurred by the North Carolina Symphony Orchestra, shall be the responsibility of and administered by the North Carolina Symphony Society, Inc., subject to audit and recommendations by the State Auditor.
It is the intent of the appropriation made for administration of the North Carolina Symphony that the Department of Cultural Resources be responsible for the expenditure of funds for administration and have authority over the employment of administrative personnel, subject to the provisions of G.S. 126. The department may seek the advice and assistance of the North Carolina Symphony Society, Inc., in administrative personnel actions.
Sec. 50.  There is appropriated in Section 2 of this act a reserve for merit salary increases to permanent college academic personnel and permanent community college personnel whose salaries are exempt from the State Personnel Act.
The director of the budget is authorized and empowered to transfer from that reserve to the appropriate departments an amount for merit salary increases. The total amount of funds are to be allocated to individuals according to rules and regulations established by the Board of Governors of The University of North Carolina and the State Board of Education.
The director of the budget is authorized and empowered to allocate, out of special operating funds, or from sources other than tax revenues under which personnel exempt from the State Personnel Act are employed, 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 merit salary increases for employees whose salaries are paid from inter-agency receipts, where payments for the services of such employees originate from State appropriations, as long as the effective purchasing power of such appropriations is not materially reduced as a result of these merit increases. Any question 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 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.
Sec. 51.  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 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. 52.  The salary per annum of the following shall be:
Chief Justice, Supreme Court	$ 39,000
Associate Justice, Supreme Court	38,000
Chief Judge, Court of Appeals	36,500
Judge, Court of Appeals	35,500
Judge, Superior Court	30,500
Chief Judge, District Court	24,500
Judge, District Court	23,500
Solicitor or District Attorney	27,000
Assistant Solicitor or
Assistant District Attorney	an average of	17,500
Administrative Officer of the Courts	32,500
Assistant Administrative Officer of the Courts	24,000
Public Defender	27,000
Assistant Public Defender	an average of	17,500
The minimum salary of any Assistant Solicitor or Assistant District Attorney and Assistant Public Defender shall be twelve thousand dollars($12,000) per annum; provided, that on recommendation of the District Attorney or the Public Defender with the approval of the Administrative Officer of the Courts the salaries of Assistant District Attorneys and Assistant Public Defenders may be adjusted so long as the average salaries of Assistant District Attorneys and Assistant Public Defenders in a judicial district do not exceed seventeen thousand five hundred dollars ($17,500).
Sec. 53.  It is the intent of this General Assembly that the Employee Disability Salary Continuation Program be shifted from a pre-paid premium basis to a pay-as-you-go basis. Beginning July 1, 1975, funds budgeted for the existing Employee Disability Salary Continuation Program ($3.00 per month per employee) shall be used to pay the increased employee cost for hospitalization insurance ($3.50 per month per employee) which becomes effective October 1, 1975. Funds budgeted for Disability Salary Continuation in 1975-76 which are not required for hospitalization insurance in 1975-76 may be transferred to 1976-77, to the extent necessary, to fund hospitalization insurance. Employee disability salary continuation payments payable in 1975-77 shall be paid by the N. C. Teachers' and State Employees' Retirement System from the existing reserves and interest income of the Disability Salary Continuation Program Fund.
Sec. 54.  In an effort to balance the 1975-77 budget, it was necessary to make reductions in personnel and to eliminate certain programs. To assure that the intent of the General Assembly is followed, no department of State government may transfer funds within its budget to fund positions or programs eliminated, except upon approval of the Governor and Advisory Budget Commission.
Sec. 55.  The Day-Care Licensing Element of the Department of Administration shall not be transferred to any other department.
Sec. 56.  It is the intent and purpose of the General Assembly at its 1976 Session to establish as its first priority the funding of equal salary increases in 1976-77 for all State employees, including those subject to and exempt from the State Personnel Act, highway employees, public school employees and staff members of community colleges and higher educational institutions.
Sec. 57.  The appropriation made in Section 2 of this act to the Governor's office for the ombudsman program is to be reviewed by the Governor and Advisory Budget Commission in preparing the next budget to determine if that program should be continued beyond the 1975-77 biennium.
Sec. 58.  Funds appropriated in Section 2 of this act to the State Board of Education provide for the improvement of reading instruction in the public schools. These funds are to be expended in accordance with a plan to be submitted to the Governor and Advisory Budget Commission specifying how programs will be designed, developed and evaluated. These funds for reading improvement shall be non-recurring and non-reverting and the approved programs shall be completed no later than June 30, 1978.
Sec. 59.  There is herein appropriated to the General Assembly ten thousand dollars ($10,000) in 1975-76 to support a special study commission which is to make a detailed examination of the programs of research, development, evaluation, and assessment within the Department of Public Instruction and do such other studies as the commission might determine to be pertinent in evaluating these programs in order to determine the effectiveness of said programs and whether they should be transferred, in whole or in part, expanded or decreased.
This study commission shall consist of one co-chairperson and six other members to be appointed by the Speaker of the House, four of whom shall be members of the House of Representatives and three members of the public at large; one co-chairperson and six other members to be appointed by the President of the Senate, four of whom shall be members of the Senate and three members of the public at large. Appointments to this study commission are to be made by August 15, 1975, and upon their appointment the co-chairpersons shall organize and begin work as they deem appropriate. This commission shall report to the General Assembly at the convening of its 1976 session.
Sec. 60.  It is the intent of this act that the Board of Governors shall set tuition rates for nonresident students who are enrolled in the constituent institutions of the University of North Carolina and that such existing annual rates be increased by approximately one hundred dollars ($100.00) for the academic year beginning on or about September 1, 1975.
It is the further intent of this act that the State Board of Education shall set tuition rates for nonresident students who are enrolled in the institutions of the Community College System and that such existing annual rates be increased by approximately one hundred dollars ($100.00) for the academic year beginning on or about July 1, 1975. Registration fees for extension courses for which instruction is financed primarily from State funds shall be increased to three dollars ($3.00) per course beginning on or about July 1, 1975.
Sec. 61.  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. 62.  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. 63.  All laws and clauses of laws in conflict with this act are hereby repealed.
Sec. 64.  This act shall become effective July 1, 1975.
In the General Assembly read three times and ratified, this the 26th day of June, 1975.