NC H980

Authorizes budget adjustments up to $451 million to cover a $333 million Medicaid budget shortfall and $118 million in federal drug rebate repayments for fiscal year 2012-2013.

Directs five prioritized funding sources: $74 million from drug rebate refunds, $20.9 million from prior appropriations, minimum $48 million from DHHS reversions, $213.4 million from June 30, 2012 fund balance, and up to $94.7 million from revenue overcollections.

Restricts all adjustments to paying only Medicaid program costs and drug rebates for 2012-2013, with any unused funds reverting to the General Fund.

Prohibits use of unearned or borrowed receipts and requires that no adjustments create financial obligations in 2013-2014 or subsequent fiscal years.

Requires joint reporting by October 1, 2013 from the Office of State Budget and Management, Department of Health and Human Services, and State Controller on implementation and compliance measures.