NC S847

Establishes procedures for state government operations if a fiscal year begins without a Current Operations Appropriations Act becoming law, allowing the Director of the Budget to continue allocating funds at prior fiscal year recurring expenditure levels or lower if revenues cannot support that level.

Requires state employee salaries to remain frozen at prior fiscal year levels, with no automatic step increases, annual raises, performance bonuses, or other increments until the General Assembly authorizes them through the Current Operations Appropriations Act.

Freezes public school employee salaries on teacher and school-based administrator salary schedules at prior year levels with no automatic step increases until authorized by the General Assembly.

Maintains state employer contribution rates for retirement and related benefits at prior fiscal year levels until the appropriations act becomes law, then allows Director of the Budget to adjust rates to reflect annual targets set in that act.

Suspends statutory transfers to the Savings Reserve Account and Repairs and Renovations Reserve Account on June 30 of the prior fiscal year and allows state agencies to spend certain federal grant funds under $2.5 million without State matching fund requirements upon Director of the Budget approval.