When the General Assembly fails to enact a budget by July 1, the state continues to operate under the statutory provisions found in GS. 143C-5-4. The statute authorizes and appropriates funds to continue operations at a level not to exceed the level of recurring certified expenditures from the prior fiscal year. See the OSBM guidance memo on the Continuing Budget Authority for FY 2023-24 for more details.
These provisions impose limitations around expenditures and prohibit certain salary actions. Below are answers and clarifications to frequently asked questions around these restrictions. In the event this information conflicts with statute, statute prevails.
No – all salary adjustment actions must have been entered and finalized in the Integrated HR Payroll System on or before June 30 to be implemented under the Continuing Resolution.
No – all salary increases, regardless of permanence, are not allowable.
Example: if an employee assumes an “acting” role and would qualify for acting pay, they will not receive payment until after the Continuing Resolution is no longer in effect.
Similarly, if agencies provide temporary salary actions for employees who have assumed extra duties and would qualify for extra duty pay, the employees will not receive payment until the Continuing Resolution is no longer in effect.
Yes – hiring actions are allowable. This includes filling vacant positions by new hire, promotion, lateral transfer, or reassignment (depending on if the class/grade of the job changed) UNLESS the vacant position was eliminated in either the House or Senate budget.
In general, if the promotion results in a position number change, then it is allowable. Salary adjustments of any type, including bonuses, in-range adjustments, and reclassifications, are prohibited under the Continuing Resolution.
Example: A Budget Manager I (position #65031250) is hired into another Budget Manager I position (#65078912) at a different division. The position was posted, and individuals applied, interviewed, etc. This hiring action is allowable.
Example: A Budget Manager I (position #65031250) is hired into another Budget Manager I position (#65078912) at a different agency. The position was posted, and individuals applied, interviewed, etc. This hiring action is allowable.
Example: A position is reclassified to reflect changing work demands at an agency. The reclassification does not alter the position number and results in an increase in salary. This is not a hiring action and is not allowable.
No – any vacant positions that were eliminated in either the House or Senate budget cannot be filled under the Continuing Resolution.
It depends – under the Continuing Resolution, employees are not allowed to receive any payments for bonus agreements signed after July 1, regardless of the source of funding (including federal or grant funds). All paused bonus payments will be completed once the Continuing Resolution ends, meaning agencies may offer sign-on or retention bonuses, but payment will be delayed.
However, if the bonus contract was signed prior to June 30, the employee is still able to receive payments under the Continuing Resolution.
Example: If an employee signed a bonus contract during the Continuing Resolution period, this payout would be delayed until the Continuing Resolution is no longer in effect.
Example: If an employee starts work after July 1 (during the Continuing Resolution period) and is eligible for a sign-on bonus, this bonus and any subsequent installments cannot be paid until after the Continuing Resolution is no longer in effect.
Example: If an employee signed a bonus contract-before the Continuing Resolution went into effect with installments due during the Continuing Resolution, they can receive payout.
Yes – agencies are allowed to create new receipt-supported positions and can post and hire for those positions like they can for vacant positions, excluding positions proposed for elimination in the House or Senate budgets. Note that agencies must have sufficient receipts available to support this recurring activity.
In general, hiring actions are allowable under the Continuing Resolution. This includes filling vacant positions, lateral transfer, or reassignment (depending on if the grade/classification of the job changes). Promotions that result in a position number change are allowable.
Yes – employees who work overtime hours under the Continuing Resolution will still receive payment at the overtime rate. Since overtime payments are not considered a form of salary adjustment, payment of these hours is still required.