NORTH CAROLINA GENERAL ASSEMBLY

1965 SESSION

 

 

CHAPTER 914

HOUSE BILL 12

 

 

AN ACT TO MAKE APPROPRIATIONS FOR CURRENT OPERATIONS OF THE STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES, AND FOR OTHER PURPOSES.

 

The General Assembly of North Carolina do enact:

 

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 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 two fiscal years ending June 30, 1966, and June 30, 1967, respectively, according to the following schedule:

I. GENERAL GOVERNMENT

1965-66                    1966-67

The General Assembly                                                                      $ —                  $1,277,510

Legislative Council                                                                           25,000                      25,000

Supreme Court                                                                              406,214                    405,829

Superior Courts                                                                          1,440,350                 1,440,350

Judicial Council                                                                                  4,195                        4,195

Counsel for Indigent Defendants                                                     442,332                    475,382

The Governor's Office                                                                $ 188,886                 $ 191,166

The Lieutenant Governor                                                                 12,655                      11,619

Department of Administration                                                      2,692,433                 2,830,908

State Personnel Department                                                           428,091                    445,663

Secretary of State                                                                          121,313                    124,729

State Auditor                                                                                 386,195                    398,832

State Treasurer:

1. State Treasurer                                                                    189,222                    192,876

2. Local Government Commission                                              98,023                    100,923

Department of Justice:

1. Attorney General                                                                 210,984                    214,190

2. State Bureau of Investigation                                                498,807                    502,420

3. General Statutes Commission                                                 11,327                      11,396

Department of Revenue                                                              5,764,398                 5,962,674

Department of Tax Research                                                            88,423                      94,980

North Carolina Tax Review Board                                                     5,615                        5,819

State Board of Elections                                                                  26,230                      27,170

North Carolina Courts Commission                                                  40,000                      40,000

Contingency and Emergency:

1. To provide for contingency and emergency expenditures for any purpose authorized by law for which no specific appropriation is made hereunder, or for which inadvertently an insufficient appropriation has been made under this Section. Allotments are to be made from this appropriation under the provisions of G.S. 143-12, or such other statute as may be

applicable                                                                                   1,750,000                 1,750,000

Salary Adjustments of State Employees

Subject to Personnel Act                                                         500,000                    500,000

Reserve for Implementation of 40-hour

Workweek for State General Fund Employees

subject to the Personnel Act                                                   735,000`                    795,231

_____________    _____________

Subtotal-General Government                                          $ 16,065,693            $ 17,828,862

_____________    _____________

II. PUBLIC SAFETY AND REGULATION

The Adjutant General:

1. Adjutant General's Office                                                  $ 553,517                 $ 554,895

2. Armory Commission                                                              50,500                      36,000

State Civil Air Patrol                                                                        17,869                      17,920

State Civil Defense Agency                                                            134,646                    138,554

Department of Motor Vehicles:

1. Automobile Drivers' Financial

Responsibility Program                                                        320,286                    329,000

Utilities Commission                                                                    $ 389,888                 $ 395,849

Insurance Department:

1. Insurance Department                                                          576,583                    596,704

2. State Property Fire Insurance Fund                                      250,000                    250,000

3. Firemen's Relief Fund                                                              1,750                        1,750

4. Building Code Council                                                             3,808                        3,808

Department of Labor                                                                     670,692                    676,963

Industrial Commission                                                                    363,855                    366,735

State Board of Alcoholic Control                                                   625,475                    632,262

Department of Agriculture:

1. Gasoline and Oil Inspection Service                                     113,233                    114,922

_____________    _____________

Subtotal — Public Safety and Regulation                                  $ 4,072,102              $ 4,115,362

_____________    _____________

III. CORRECTION

North Carolina Board of Juvenile Correction:

1. General Administration                                                        $ 86,793                   $ 90,166

2. Stonewall Jackson Training School                                       514,002                    554,712

3. State Home and Industrial School

for Girls—Samarcand Manor                                              485,608                    498,407

4. Morrison Training School                                                     622,909                    592,295

5. Eastern Carolina Training School                                          317,713                    343,604

6. State Training School for Girls—

Dobbs Farm                                                                       309,670                    315,478

7. Leonard Training School                                                      438,904                    451,992

8. Juvenile Evaluation and Treatment

Center                                                                                504,084                    746,584

9. New Training Facilities—Operations                                        —                         117,596

Fugitives From Justice                                                                        6,500                        6,500

Prison Department                                                                    11,994,464               12,353,081

Probation Commission                                                                1,338,120                 1,444,548

Board of Paroles                                                                           717,276                    733,489

_____________    _____________

Subtotal— Correction                                                           $ 17,336,043            $ 18,248,452

_____________    _____________

IV. PUBLIC WELFARE

Department of Public Welfare                                                $ 15,431,746            $ 16,126,952

State Commission for the Blind                                                   1,455,196                 1,490,081

Veterans Commission:

1. Veterans Commission                                                          402,733                    413,993

2. County Service Officers                                                         94,000                      94,000

Confederate Women's Home                                                           63,072                      63,770

Oxford Orphanage                                                                          62,250                      62,250

Junior Order Children's Home                                                          55,000                      55,000

Oxford Colored Orphanage                                                          $ 86,000                   $ 86,000

Odd Fellows Home                                                                         11,000                      11,000

Pythian Home                                                                                  11,000                      11,000

Alexander Schools, Inc.                                                                   40,000                      40,000

Eliada Homes, Inc.                                                                          15,000                      15,000

Boys Home of North Carolina, Inc.                                                  10,000                      10,000

Sipe's Orchard Home, Inc.                                                              10,750                      10,750

_____________    _____________

Subtotal— Public Welfare                                                     $ 17,747,747            $ 18,489,796

_____________    _____________

V. EDUCATION

Department of Public Instruction:

1. Administration and Supervision                                         $ 995,393               $1,009,361

State Board of Education:

1. Nine Months School Fund                                            270,198,256             285,480,291

2. State Board of Education                                                     644,791                    647,813

3. Vocational Education                                                        7,890,938                 8,704,853

4. Purchase of Free Textbooks                                             6,386,350                 6,055,417

5. Vocational Textile School                                                    108,074                    107,463

6. Purchase of School Buses                                                 2,577,800                 2,577,800

7. Division of School Planning                                                  185,224                    189,551

8. Vocational Rehabilitation                                                   1,334,741                 1,363,442

9. Department of Community Colleges—

Equipment                                                                        5,845,013                 1,828,861

10. Instruction and Training for Trainable

Mentally Handicapped Children                                                     886,009                    962,486

11. National Defense Education Program                                 217,527                    225,884

12. Department of Community Colleges                                9,216,842               11,297,241

13. Program of Education by Television                                   113,264                    113,264

14. Professional Improvement of Teachers                               148,511                    149,585

State Board of Higher Education                                                    120,631                    121,849

University of North Carolina (Consolidated):

1. General Administration                                                         990,732                    998,200

2. Long Range Planning Program                                               38,993                      39,405

3. University of North Carolina

at Chapel Hill

a. University of North Carolina at

Chapel Hill                                                                  11,706,849               12,988,731

b. Division of Health Affairs                                              4,414,883                 4,710,473

4. North Carolina State University                                       10,175,294               10,988,153

5. University of North Carolina at

Greensboro                                                                      3,700,178                 3,833,815

6. University of North Carolina at

Charlotte                                                                          1,487,356                 1,711,976

East Carolina College                                                                 4,695,519                 5,088,674

The Agricultural and Technical College                                        2,315,466                 2,524,921

Western Carolina College                                                        $ 1,796,653              $ 2,058,575

Appalachian State Teachers College                                           2,378,065                 2,664,638

Pembroke State College                                                                818,633                    852,992

Winston-Salem State College                                                         969,202                 1,019,139

Elizabeth City State College                                                           790,583                    836,760

Fayetteville State College                                                               829,553                    843,932

North Carolina College at Durham                                              2,122,402                 2,289,350

Asheville-Biltmore College                                                             711,568                    752,900

Wilmington College                                                                        766,236                    791,630

North Carolina Board of Science and

Technology                                                                              317,468                    318,260

North Carolina School for the Deaf                                             1,100,487                 1,138,281

Eastern North Carolina School for the Deaf                                    317,462                    352,292

The Governor Morehead School                                                 1,209,823                 1,262,910

Student Loan Funds:

1. Medical Care Commission—Medical

Education                                                                                                             130,000

2. State Board of Education—Teacher Ed.                              695,000                    695,000

Department of Archives and History                                               775,489                    721,275

Tryon Palace—Department of Archives and

History                                                                                      81,850                      85,942

State Library:

1. Library                                                                                188,222                    191,337

2. State Aid to Public Libraries                                                685,113                    737,111

North Carolina Museum of Art                                                      245,905                    249,705

North Carolina State Art Society                                                       7,000                        7,000

North Carolina Symphony Society, Inc.                                           75,000                      75,000

North Carolina School of the Arts                                                  469,675                    476,320

Old Salem, Inc.                                                                               50,000                      50,000

Highlands Biological Station, Inc.                                                     15,150                      15,150

Moore's Creek Battleground Association                                              500                           500

Department of Administration:

1. Reserve for Higher Education — To

Replace contributions by Auxiliary

Services to Academic Expense                                            195,871                    195,871

_____________    _____________

Subtotal—Education                                                  $364,007,544           $382,531,379

_____________    _____________

VII. NON-HIGHWAY TRANSPORTATION

State Ports Authority                                                                  $ 209,395                 $ 209,395

VIII. HEALTH AND HOSPITALS

State Board of Health                                                              $ 4,521,431              $ 4,669,297

Medical Care Commission:

1. Medical Care Commission—

Administration                                                                     156,501                    160,121

University of North Carolina:                                                                     $                               $

1. Memorial Hospital—Psychiatric

Center                                                                                732,144                    746,037

2. Memorial Hospital                                                            2,697,992                 2,806,725

Department of Mental Health:

1. General Administration                                                      1,539,471                 1,547,033

2. Alcoholic Rehabilitation Program                                          123,547                    125,941

3. Dorothea Dix Hospital                                                      5,113,578                 5,227,616

4. Broughton Hospital                                                           5,170,908                 5,254,027

5. Western Carolina Center                                                  1,603,824                 1,644,648

6. Cherry Hospital                                                                5,088,427                 5,188,562

7. O'Berry Center                                                                 2,326,854                 2,493,145

8. John Umstead Hospital                                                     4,168,471                 4,255,271

9. Murdoch Center                                                               3,618,742                 3,962,236

10. Caswell Center                                                               3,429,354                 3,517,713

11. Wright School                                                                     72,807                             —

12. Advisory Council on Mental

Retardation                                                                           20,804                      21,608

North Carolina Orthopedic Hospital                                               607,874                    617,630

North Carolina Cerebral Palsy Hospital                                          246,609                    250,654

North Carolina Sanatorium System:

1. General Administration                                                           44,963                      45,323

2. North Carolina Sanatorium                                               1,392,426                 1,417,931

3. Western North Carolina Sanatorium                                  1,267,805                 1,288,993

4. Eastern North Carolina Sanatorium                                   1,619,575                 1,658,535

5. Gravely Sanatorium                                                             584,132                    589,162

Asheville Orthopedic Hospital                                                          85,000                      90,000

North Carolina Cancer Institute, Inc.                                                26,000                      26,000

_____________    _____________

Subtotal— Health and Hospitals                                      $ 46,259,239            $ 47,604,208

_____________    _____________

IX. NATURAL RESOURCES AND RECREATION

Department of Conservation and Development:

1. Department of Conservation and

Development                                                                 $ 3,889,716              $ 3,862,171

2. Division of Commercial Fisheries                                          255,028                    342,334

3. Division of Commercial Fisheries—

Shellfish Division                                                                 133,114                    133,916

4. Kerr Reservoir Development Commission—

Nutbush Conservation Area                                                  41,961                      42,605

Department of Water Resources                                                    613,032                    621,103

North Carolina National Park, Parkway and

Forest Development Commission                                                 9,232                        9,496

Industrial Extension Service—North Carolina

State University                                                                       116,353                    120,779

Rural Electrification Authority                                                           70,126                      71,769

North Carolina Recreation Commission                                       $ 106,619                 $ 108,104

Confederate Museum-Richmond, Virginia                                             200                           200

Confederate Cemetery-Raleigh, North

Carolina                                                                                         350                           350

Garden Clubs of North Carolina, Inc.—The

Elizabethan Garden                                                                      5,500                        5,500

_____________    _____________

Subtotal — Natural Resources and

Recreation                                                                               $ 5,241,231              $ 5,318,327

_____________    _____________

X. AGRICULTURE

Department of Agriculture:

1. Contribution from General Fund                                     $ 2,720,938              $ 2,751,528

2. State Meat and Poultry Inspection                                        565,005                    613,528

Agricultural Experiment Station-North

Carolina State University                                                       3,144,866                 3,259,273

Cooperative Agricultural Extension Service-

North Carolina State University                                             3,605,594                 3,740,052

State Soil and Water Conservation

Committee                                                                               168,383                    170,188

_____________    _____________

Subtotal—Agriculture                                                      $ 10,204,786            $ 10,534,569

_____________    _____________

XII. RETIREMENT AND PENSIONS

Teachers' and State Employees' Retirement

System:

1. Administration                                                                  $ 316,077                 $ 323,463

2. State Contributions                                                         40,966,049               45,235,991

3. Teachers and State Employees Who

Had Attained Age 65 at August 1, 1959                              190,000                    181,600

Law Enforcement Officers' Benefit and

Retirement Fund-Contributions from

General Fund                                                                             57,986                      54,318

North Carolina Firemen's Pension Fund                                         486,379                    483,158

Pensions-Confederate Widows                                                        63,342                      58,092

Pensions-Widows of Governors                                                       12,000                      12,000

_____________    _____________

Subtotal—Retirement and Pensions                                  $ 42,091,833            $ 46,348,622

_____________    _____________

XIII. DEBT SERVICE

Interest on Bonds                                                                    $ 3,713,870              $ 6,102,595

Redemption of Bonds                                                                 8,165,000               11,070,000

Landscrip Fund                                                                                 7,500                        7,500

_____________    _____________

Subtotal—Debt Service                                                   $ 11,886,370            $ 17,180,095

_____________    _____________

XIV. SALARY INCREASES

State Employees Subject to Personnel Act                               $ 8,905,177              $ 9,012,306

_____________    _____________

TOTAL— GENERAL FUND                                       $544,027,160           $577,421,373

_____________    _____________

_____________    _____________

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 highway activities, are hereby made for the two fiscal years ending June 30, 1966, and June 30, 1967, respectively, according to the following schedule:

II. PUBLIC SAFETY AND REGULATION

Department of Motor Vehicles                                               $ 12,973,381            $ 13,117,106

Transportation Inspection (Utilities

Commission)                                                                           178,717                    177,925

Gasoline Inspection Service (Department of

Agriculture)                                                                             339,995                    345,030

Subtotal— Public Safety and Regulation                           $ 13,492,093            $ 13,640,061

_____________    _____________

V. EDUCATION

Driver Training and Safety Education                                        $ 2,191,099              $ 2,054,174

_____________    _____________

VI. HIGHWAYS

State Highway Commission:

1. Merit Salary Increments                                                 $ 1,568,493              $ 2,581,429

2. Reserve for Contingencies                                                    500,000                    500,000

3. General Administration                                                      2,266,755                 2,276,847

4. Engineering Administration and

Supervision                                                                      5,569,320                 5,496,423

5. State Maintenance and Construction:

a. Primary System                                                          27,650,000               29,989,000

b. Secondary System                                                     58,130,901               62,144,826

c. Urban System                                                              5,275,000                 6,575,000

d. Public Service Roads                                                   1,300,000                 1,300,000

6. State Funds to Match Federal Aid

Highway Planning Survey and

Highway Planning Research                                                 518,500                    527,710

7. State Funds to Match Federal Aid

Construction                                                                  26,356,500               26,782,290

8. State Aid to Municipalities                                                9,191,700                 9,558,400

9. Salary Adjustments of State

Employees Subject to Personnel Act                                   250,000                    250,000

_____________    _____________

Subtotal— Highways                                                      $138,577,169           $147,981,925

_____________    _____________

XII. RETIREMENT AND PENSIONS

Contribution to Retirement System-Salary

Increases                                                                              $ 537,734                 $ 538,931

Contribution to Retirement System                                              5,008,160                 5,218,103

_____________    _____________

Subtotal— Retirement and Pensions                                   $ 5,545,894              $ 5,757,034

_____________    _____________

XIII. DEBT SERVICE

Interest on and Redemption of Highway

Bonds                                                                             $ 12,356,875            $ 12,381,875

_____________    _____________

XIV. SALARY INCREASES

Salary Increases for Highway Fund

Employees                                                                         $ 5,572,992              $ 5,579,864

_____________    _____________

TOTAL— HIGHWAY FUND                                      $177,736,122           $187,394,933

_____________    _____________

_____________    _____________

(Transfers and Changes may be made in the Highway Fund from Merit Salary Increments, Salary Increases, Contribution to Retirement System — Salary Increases, Salary Adjustments, and Reserve for Contingencies to other operating appropriations in the Highway Fund by authorization of the Director of the Budget. Transfers and Changes may be made to and /or from Title VI-3, 4, 5(a), (b), (c), (d), 6, and 7 by authorization of the Director of the Budget: PROVIDED, Title VI-5(a), (b), (c), (d), 6 or 7 shall not be reduced by more than ten per cent (10%).

In the event that the revenues accruing to the Highway Fund exclusive of one cent (l¢) gasoline tax for Debt Service, exceed the amount of one hundred sixty-three million, three hundred seventy-eight thousand dollars ($163,378,000) for the fiscal year 1965-66 and the amount of one hundred seventy million, nine hundred sixteen thousand dollars ($170,916,000) for the fiscal year 1966-67 such excesses may be allocated in the next succeeding year by the Director of the Budget, to increase the appropriations under Title VI-3, 4, 5(a), (b), (c), (d), 6, and 7. Increases in Highway Fund surplus from sources other than revenues may be allocated in the next succeeding year by the Director of the Budget, to increase the appropriations under Titles VI-3, 4, 5(a), (b), (c), (d), 6 and 7.

AGRICULTURE FUND

Sec. 4.  Appropriations from the Agriculture Fund of the State for maintenance of agricultural activities are hereby made for the two fiscal years ending June 30, 1966, and June 30, 1967, respectively, according to the following schedule:

1965-66                     1966-67

1. Department of Agriculture                                              $ 1,520,150              $ 1,520,150

2. State Fair (The State Fair may be

operated within its own receipts in the

discretion of the State Board of

Agriculture.)

WILDLIFE RESOURCES COMMISSION

Sec. 5.  Notwithstanding any laws or clauses of laws pertaining to the Wildlife Resources Commission, there is hereby appropriated out of funds available to the Wildlife Resources Commission the following sums for the biennium 1965-67, subject to expenditure under the provisions of the Executive Budget Act, Chapter 143, Article I, General Statutes of North Carolina.

Wildlife Resources Commission                                               $ 3,835,422              $ 3,523,522

Wildlife Resources Commission—Motorboat

Section                                                                                    175,101                    176,927

_____________    _____________

TOTAL                                                                             $ 4,010,523              $ 3,700,449

_____________    _____________

_____________    _____________

Sec. 6.  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 I, General Statutes of North Carolina.

GENERAL PROVISIONS

Sec. 7.  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. 8.  The appropriation made out of the General Fund for the Prison Department includes funds to be transferred or paid to the Dorothea Dix Hospital at Raleigh and Cherry Hospital at Goldsboro for care, custody, and treatment of the criminally insane prisoners, and to the North Carolina Sanatorium for care, custody, and treatment of prisoners who have tuberculosis; with the amount of funds to be determined as follows: At the beginning of each month the Dorothea Dix Hospital at Raleigh, the Cherry Hospital at Goldsboro, and North Carolina Sanatorium shall render to the Prison Department a bill, on the basis of the per capita cost per day for the preceding fiscal year, as may be determined by the Director of the Budget, for the care, custody, and treatment, during the preceding month, of criminally insane prisoners and prisoners who have tuberculosis and who have been transferred from the Prison System to said institutions, and the Prison Department shall pay such bills monthly.

Sec. 9.  Appropriations made herein to the Department of Public Welfare and to the Commission for the Blind, for hospitalization of the medically indigent, are limited to payment of per diem reimbursable costs up to twenty-two dollars ($22.00), provided that no depreciation on buildings may be included in computing hospital costs, and further provided that foundation funds, received by such hospitals for indigent care must be deducted from hospital reimbursable costs rates.

Appropriations made herein to the Department of Public Welfare for Medical Services to the Indigent are limited to payment for services which are being provided at the date of passage of this Act.

Sec. 10.  Appropriations made to the North Carolina School for the Deaf, to the Eastern North Carolina School for the Deaf, and to the Governor Morehead School under Section 2 of this Act include provisions for the cost of clothing and transportation for indigent pupils. The institutions shall be reimbursed for these items by the counties liable therefor under the provisions of G.S. 116-118.

Sec. 11.  Funds appropriated herein to the State Board of Education to provide additional teachers for specified grades and/or purposes shall be used for those purposes, and may not be diverted to any other use.

Sec. 12.  The experimental and research projects designated "The Comprehensive School Improvement Project", "The Advancement School", and "The Governor's School", for which appropriations are herein made to the State Board of Education, are to be operated and maintained by the said Board under the terms of the Executive Budget Act, for the fiscal year July 1, 1965 to June 30, 1966. If, after the end of the above fiscal year, it is the opinion of the Governor and Advisory Budget Commission that such experimental projects, or any of them, shall continue, the funds appropriated for the fiscal year July 1, 1966 to June 30, 1967 for such project or projects shall be utilized therefor. If the Governor and Advisory Budget Commission do not recommend continuance of such project, or any of them, for the said second year, funds appropriated for such of them as are not so recommended shall revert to the General Fund.

Sec. 13.  Allotments of the appropriations made herein to the Department of Archives and History, as grants-in-aid for the Confederate Troop Roster, and for the Colonial Records of North Carolina, are conditioned upon matching funds from non-appropriated sources being made available for use at the time such allotments are made.

Sec. 14.  The appropriation made herein for twenty-two thousand dollars ($22,000) for additional personnel for the State Soil and Water Conservation Committee, (Code 28081) is conditioned upon the Federal support for this program being continued at the level effective at the time of passage of this Act, and if the level of Federal support is reduced, the Advisory Budget Commission is authorized and empowered to review the requirements for such additional personnel, and to reduce the number of new employees as may be deemed advisable.

Sec. 15.  From the funds appropriated to the State institutions of higher education in Section 2 of this Act and institutional receipts accruing to said institutions, the respective State institutions of higher education are hereby directed to pay the student help employed to perform work in said institutions a rate of pay which shall not be less in any case than seventy-five cents (75¢) per hour of work performed.

Sec. 16.  Appropriations made to the Oxford Colored Orphanage under Section 2 of this Act shall be available only if and when the expenditures shall be recommended by the trustees of the institution appointed by the Governor of the State, and the expenditures shall be under the supervision of said trustees.

Sec. 17.  The Director of the Budget shall require that the Highway Fund, the Agriculture Fund, other special funds employing personnel, and other operations employing personnel and which are designated by the resolution of the Governor and Advisory Budget Commission as self-supporting operations shall budget as a line item object of expenditure sufficient funds to pay their employer proportion of contributions to the Teachers' and State Employees' Retirement System as required by the Act creating said system.

No part of the appropriation made in Section 2 of this Act to the Teachers' and State Employees' Retirement System as "contributions" under Title XII-2 shall be used to supply the State's or employer's contribution for retirement system purposes or social security purposes with respect to the compensation of any State employee (1) whose compensation is paid out of receipts of any State institution or agency (other than gifts, including foundation funds), which receipts are deposited in institutional funds for the specific purpose of paying the compensation of such employee, or (2) who performs his duties for an operation or activity designated by the Director of the Budget as a self-supporting operation or activity, or (3) who performs his duties for an operation or activity not directly supported by an appropriation from the State General Fund. In those instances in which an employee's salary is paid in part from the General Fund or from gifts (including foundations) and in part from receipts of the State institution or agency (other than gifts, including foundation funds), which receipts are deposited in institutional funds for the specific purpose of paying part of the compensation of such State employee, the appropriation described above shall be used to pay a portion of the employer's contribution for retirement and social security equal to that proportion of the employee's total salary paid from the General Fund or from gifts (including foundations), and the remainder of the employer's contribution shall be paid from the same sources as supply the remainder of such employee's salary. It is the intent and purpose of this Act that, when retirement system or social security matching funds are required to be made on behalf of the State as an employer in the situations described above in this paragraph, such matching funds to the extent necessary shall be paid out of the funds of the institution or operation or activity described above in this paragraph. Any question as to the applicability of this paragraph shall be resolved by the Director of the Budget and the Advisory Budget Commission.

Sec. 18.  Subject to 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 the expenses of transporting the household goods and furniture of an employee and members of his household when such an employee is directed by the employing agency to transfer from one location to another.

Sec. 19.  The Department of Administration is directed to make a study of the telephone services to the various agencies of the State, and to take such action as may be necessary to provide effective telephone service at the most economical cost. To achieve this purpose, the Department is authorized to redirect budgeted funds for telephone service for the State's agencies, within the amounts herein appropriated, transferring appropriations for telephone service into consolidated telephone budget amounts as may be required.

Sec. 20.  Subject to a recommendation of the Advisory Budget Commission, funds not to exceed one hundred thousand dollars ($100,000) for each year of the biennium 1965-67 may be allotted out of the Contingency and Emergency Appropriation for use by the State Department of Agriculture, North Carolina Experiment Station, and the U. S. Department of Agriculture, for a witch weed control program; and, subject to a recommendation by the Advisory Budget Commission, funds not to exceed fifty thousand dollars ($50,000) each year may be allotted out of the Contingency and Emergency Fund for use by the State Department of Agriculture for payment of hog cholera indemnities.

SALARIES AND WAGES

Sec. 21.  The Director of the Budget is authorized and empowered to transfer from the appropriations for salary increases of State employees subject to the Personnel Act, such sums as may be required to increase salaries in effect on June 30, 1965, under the salary schedule established by the State Personnel Council.

The appropriations for salary increases of State employees who are subject to the State Personnel Act shall be transferred by the Director of the Budget to departments, institutions and agencies in such amounts as may be required to increase salaries, commencing July 1, 1965, for all full-time, permanent employees in accordance with the following provisions: For granting a ten per cent (10%) Legislative salary increase to each permanent full-time employee who is subject to the provisions of the State Personnel Act. This ten per cent (10%) increase shall be based on each employee's monthly salary in effect on June 30, 1965, and may be rounded to the next highest even dollar.

The provisions of this Section shall be applied to increase salaries paid out of special funds or from sources other than tax revenues; provided, the necessary funds are made available from operations or from sponsoring agents. The Director of the Budget is authorized and empowered to allocate out of special operating funds, under which personnel is employed, sufficient funds to conform with the provisions of this Section; provided, funds are available or made available by the sponsoring agents.

Salaries for positions which are paid from funds which are 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 paid from the General Fund.

The salary increases for employees whose salaries are paid from receipts received from self-supporting activities shall be contingent upon availability of funds out of receipts which shall be determined by the Director of the Budget.

The salary increases shall not affect the status of eligibility for automatic and/or merit salary increments for which the employee may be eligible for the fiscal years 1965-67 notwithstanding the granting of the Legislative salary increase.

The salary ranges for all employees under the Personnel Act shall be increased, so far as the maximum is concerned, by an amount equal to this Legislative salary increase to the end that, even after the salary increase provided for in this Act is made, every employee will continue to have the same relative position with respect to salary increase and future increments as he would have had if the salary increases provided by this Act had not been made.

The amounts appropriated herein from the General Fund for salary increases for Experiment Station and Agricultural Extension Service personnel, and other higher education institutional personnel who are exempt from the State Personnel Act, are intended to be proportional to the total salary increase for such personnel as the total of General Fund support for the respective activities is to the total budget for these activities.

The salary increase provided in this Act, shall not apply to persons separated from State service due to resignation, dismissal, reduction in force, death or retirement, whose last work day is prior to July 1, 1965.

EFFECTIVE

Sec. 22.  The provisions of the Executive Budget Act, Chapter 143, Article 2 of the General Statutes, are re-enacted and shall remain in full force and effect, and are incorporated in this Act by reference.

Sec. 23.  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. 24.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 25.  This Act shall become effective on July 1, 1965.

In the General Assembly read three times and ratified, this the 10th day of June, 1965.