A BILL TO BE ENTITLED
AN ACT TO AMEND THE north carolina CONSTITUTION, SUBJECT TO APPROVAL OF THE VOTERS OF THE STATE, TO PROHIBIT THE GOVERNOR FROM WITHHOLDING LOCAL FUNDS.
The General Assembly of North Carolina enacts:
SECTION 1.  Section 5(3) of Article III of the North Carolina Constitution reads as rewritten:
"(3)	Budget. The Governor shall prepare and recommend to the General Assembly a comprehensive budget of the anticipated revenue and proposed expenditures of the State for the ensuing fiscal period. The budget as enacted by the General Assembly shall be administered by the Governor.
The total expenditures of the State for the fiscal period covered by the budget shall not exceed the total of receipts during that fiscal period and the surplus remaining in the State Treasury at the beginning of the period. To insure that the State does not incur a deficit for any fiscal period, the Governor shall continually survey the collection of the revenue and shall effect the necessary economies in State expenditures, after first making adequate provision for the prompt payment of the principal of and interest on bonds and notes of the State according to their terms, whenever the Governor determines that receipts during the fiscal period, when added to any surplus remaining in the State Treasury at the beginning of the period, will not be sufficient to meet budgeted expenditures. This section shall not be construed to impair the power of the State to issue its bonds and notes within the limitations imposed in Article V of this Constitution, nor to impair the obligation of bonds and notes of the State now outstanding or issued hereafter. Unless authorized by an act of the General Assembly, the Governor may not withhold from distribution funds that have been collected by the State on behalf of a unit of local government or funds the General Assembly has appropriated or otherwise committed to a unit of local government."
SECTION 2.  The amendment set out in Section 1 of this act shall be submitted to the qualified voters of the State at the next statewide primary, general, or special election, which election shall be conducted under the laws then governing elections in the State. Ballots, voting systems, or both may be used in accordance with Chapter 163 of the General Statutes. The question to be used in the voting systems and ballots shall be:
"[ ] FOR	[ ] AGAINST
Constitutional amendment providing that the Governor's power to reduce expenditures to balance the budget does not include the power to withhold funds designated for distribution to local governments."
SECTION 3.  If a majority of the votes cast on the question are in favor of the amendment set out in Section 1 of this act, the State Board of Elections shall certify the amendment to the Secretary of State. The amendment becomes effective upon this certification. The Secretary of State shall enroll the amendment so certified among the permanent records of that office.
SECTION 4. This act is effective when it becomes law.