AN ACT to require the legislative and executive branches to collaborate on long‑term budget assessments that measure ONGOING budget sustainability utilizing a current services baseline to ensure fiscal responsibility.

The General Assembly of North Carolina enacts:

SECTION 1.  Article 3 of Chapter 143C of the General Statutes is amended by adding a new section to read:

§ 143C‑3‑4.1.  Long‑term budget assessment.

The Director shall collaborate annually with the legislative branch to create and update a long‑term budget assessment and consensus revenue forecast covering at least the following five years and which shall include at least the following:

(1)        A projection of spending required to maintain current services and programs in the context of changes to the cost of delivering services, including inflation and changes to the size of the population and the population served.

(2)        An analysis of the cost of program changes or policies to be enacted as well as those mandated by statute or the courts that may not have been included in the base year.

(3)        An analysis of the cost to the State for maintaining or increasing employee salaries and benefits to reflect current economic factors, including inflation and benefit cost increases.

(4)        A comparison of potential impacts on the State budget based upon fiscal scenarios related to economic performance, changes to transfers from the federal government, or both.

SECTION 2.  G.S. 143C‑3‑5 reads as rewritten:

§ 143C‑3‑5.  Budget recommendations and budget message.

(a)        Budget Proposals. – The Governor shall present budget recommendations, consistent with G.S. 143C‑3‑1, 143C‑3‑2, and 143C‑3‑3 143C‑3‑3, and 143C‑3‑4.1 to each regular session of the General Assembly at a mutually agreeable time to be fixed by joint resolution.

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(f)        Budget Message. – The Governor's budget recommendations shall be accompanied by a written budget message that does all of the following:

(1)        Explains the goals embodied in the recommended budget.

(2)        Explains important features of the activities anticipated in the budget.

(3)        Explains the assumptions underlying the statement of revenue availability.

(4)        Sets forth the reasons for changes from the previous biennium or fiscal year, as appropriate, in terms of programs, program goals, appropriation levels, and revenue yields.

(5)        Identifies anticipated sources of funding for major spending initiatives.

(6)        Prepares a fiscal analysis that addresses the State's budget outlook for the upcoming five‑year period. period, consistent with the assessment required under G.S. 143C‑3‑4.1. This fiscal analysis shall include detailed estimates for five years for any proposals to create new or significantly expand programs and for proposals to create new or change existing law.

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SECTION 3.  This act is effective when it becomes law and applies to the adoption of the Current Operations Appropriations Act for the fiscal year beginning on or after that date.