NC H7

Establishes the Savings Reserve as a component of the unappropriated General Fund balance with funds available for expenditure upon majority vote of the General Assembly for revenue declines, budget shortfalls, court-ordered costs, or emergency relief.

Requires the Governor's Recommended State Budget to include a transfer of 15% of estimated growth in General Fund tax revenues to the Savings Reserve each fiscal year, up to the recommended balance developed by the Office of State Budget and Management and Fiscal Research Division.

Limits ordinary use of Savings Reserve funds to 7.5% of the prior fiscal year's General Fund operating budget appropriations, with amounts exceeding this threshold or uses outside enumerated purposes requiring a two-thirds vote of both chambers.

Directs the Office of State Budget and Management and Fiscal Research Division to jointly develop an annual evaluation of adequate Savings Reserve levels based on tax revenue volatility, targeting coverage for two years of need in nine out of 10 revenue decline scenarios.

Applies refinancing savings from general obligation bonds and special indebtedness to the Savings Reserve only when the reserve balance remains below the recommended level, excluding Highway Fund and transportation-related debt.