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2019 - 21 Budget Instructions - Change Budget

2019-21 Change Budget Instructions

The Change Budget consists of all proposals for expansion or reduction from the Base Budget. This includes requests for meeting critical needs, expanding or creating programs, and addressing issues that cannot be accommodated in the Base Budget realignment process. For the 2019-21 biennium, Change Budget proposals should focus on addressing the following priorities identified by Governor Cooper:

  1. Positioning North Carolina to create new jobs and grow middle class paychecks;
  2. Making North Carolina a top ten educated state;
  3. Promoting healthier and safer communities; and
  4. Ensuring an effective, accountable, well-run state government.

Given current expectations for modest revenue growth in the 2019-21 biennium, agencies should limit total General Fund expansion requests to no more than two percent (2%) of their FY 2018-19 BD 307 certified recurring appropriation (excluding changes in enrollment for certain programs identified below). Expansion requests should focus on delivering critical services, filling budget gaps and unmet needs, and addressing agency and administration strategic priorities.Although reduction options are not required, agencies are encouraged to look for opportunities to improve program delivery and agency operational efficiency.

  • Funding adjustments due to changes in enrollment or population served in public schools, community colleges, the University of North Carolina system, prisons, and North Carolina’s Medicaid and Health Choice programs, State and County Special Assistance program, and Foster Care and Adoption Assistance program (these adjustments are not subject to 2% limitation).
  • Additional funding for new programs, expanding or improving existing programs, and fulfilling mandated functions.
  • Departmental proposals to redirect funds from inefficient or ineffective programs.
  • One-time major equipment purchases.>
  • Continued phase-in of new programs initiated in a previous biennium.>
  • Adjustments to address inflation and related cost increases
  • Information technology projects.
  • Operating Building Reserves.
  • Funds to replace lost federal funds.
  • Changes to compensation and benefits to attract and retain talent.
  • Other increases and adjustments.>

Change Budget requests will be submitted via the Expansion Request and Reduction Proposal Worksheet II forms in IBIS. In addition to General Fund appropriation expansion requests, agencies should also submit Worksheet IIs for expansion requests supported from 100 percent non-General Fund sources (federal funds or other receipts) or if an expansion item is supported from cash balances in non-reverting funds. These items do not count toward the 2% cap on General Fund expansion requests.

OSBM will evaluate Change Budget requests based on the strength of the business case and supporting data and evidence provided by the agency. Agencies should focus their efforts on ensuring the narrative components of the Worksheet II clearly and succinctly articulate the problem being addressed, the intended outcome, and the expected impact of the request. Requests for new or expanded programs or services must include evidence and research supporting the program's effect on desired outcomes. For certain requests, such as addressing inflation and related increases in operational costs, less detail on these components is required. However, it is imperative that agencies complete all components of the form and provide supporting data to present a compelling justification for the request where appropriate.

Information Technology projects must be included in the agency’s IT plan if required in order to be considered for inclusion in the Governor's recommended budget. A copy of agency IT plans for the upcoming biennium must be submitted to OSBM upon completion. Additionally, IT requests should be submitted via a Worksheet II in IBIS and the Enterprise Project Management Office’s Touchdown System. IT requests must conform to the process and requirements found in the IT Job Aid.

OSBM is continuing efforts to integrate and utilize strategic planning information in the budget development process. For the 2019-21 biennium, all agencies are required to submit select strategic planning information in conjunction with their budget requests. This information will be used to review spending requests during the budget development process in conjunction with the Governor's recommended budget. Budget expansion requests must clearly support goals included in the agency's strategic plan to be considered in the Governor's 2019-21 recommended budget. Please see Agency Strategic Planning Guidelines for additional information.

OSBM will be conducting executive meetings with all agencies beginning in October to facilitate biennial budget development. Agencies should be prepared to begin a discussion of top budget priorities, changes to investments in those priorities, and associated goals, success measures, estimated costs, and proposals to pay for the identified priorities. In addition, please be prepared to discuss top structural budget needs and identified efficiencies to improve your agency. OSBM analysts will also be available for consultation and assistance throughout the process of developing Change Budget proposals.

All expansion and reduction proposals should be reflected in Worksheet IIs developed in IBIS and are due to OSBM on or before November 30, 2018. Additional information on change budget requests and instructions for completing Worksheet IIs can be found in the Job Aids for Change Budget Expansion Requests, Change Budget Reduction Proposals, and Information Technology.

Change Budget Job Aids

Change Job Aid: Change Budget Expansion Request
Change Job Aid: Change Budget Reduction Proposal
Change Job Aid: Change Budget - Information Technology