§ 143C-6-2. Methods to avoid deficit.
§ 143C‑6‑2. Methods to avoid deficit.
(a) Appropriations. Eachappropriation is maximum and conditional. The expenditures authorized by anappropriation from a fund shall be made only if necessary and only if theaggregate revenues to the fund during each fiscal year of the biennium, whenadded to any unreserved fund balance from the previous fiscal year, aresufficient to support the expenditures.
(b) RevenueCollections. The Director, with the assistance of the Secretary of Revenueand other officials collecting or receiving appropriated State revenue, shallcontinuously survey the revenue collections. If the Director finds thatrevenues to any fund, when added to the beginning unreserved fund balance inthat fund, will be insufficient to support appropriations from that fund, theDirector shall immediately notify the General Assembly that a deficit isanticipated. The Director shall consult with the Chief Justice to identifyexpenditure reductions and other lawful measures the Chief Justice and JudicialBranch can implement to reduce expenditures. The Director shall report in atimely manner to the General Assembly a plan containing the expenditurereductions and other lawful measures as the Director is implementing in orderto avert the deficit.
(c) Local GovernmentsFunds. In exercising the powers contained in Section 5(3) of Article III ofthe North Carolina Constitution, the Governor shall not withhold fromdistribution funds that have been collected by the State on behalf of localgovernments or funds that the General Assembly has appropriated to localgovernments unless the Governor has exhausted all other sources of revenue ofthe State including any appropriated surplus remaining in the treasury at thebeginning of the fiscal period.
In accordance with Section 19of Article I of the North Carolina Constitution and the Due Process Clause ofthe United States Constitution, the State is prohibited from taking local taxrevenue. This subsection does not authorize the Governor to withhold revenues fromtaxes levied by units of local governments and collected by the State. (2006‑203, s. 3; 2007‑393,s. 6.)