WeVote
Log In

Bill

WeVote Research Nonpartisan
Bill Summary · SB 972

Summary of SB 972 (Session 2025, North Carolina) – “Cut State Agency Costs By 10%”

Purpose and Intent

  • The bill seeks to achieve structural savings in state government by reducing the budgets of state agencies by at least 10% by June 30, 2028.
  • It frames the reductions as a means to enhance efficiency through advances in technology and service delivery, with the Director of the Office of State Budget and Management (OSBM) having flexibility to manage the reductions in a way that minimizes burdens on agencies.

Key Provisions

1) Budget Reduction Target

  • Mandated reduction: All state agency budgets must be reduced by no less than 10% by June 30, 2028.
  • Flexibility: The Director of OSBM may adjust or manage the reductions to mitigate substantial burdens on individual agencies, as long as the overall target is met.

2) Agency Implementation Plans

  • Timeline for plans: By January 1, 2027, each agency head must submit a detailed plan to achieve the 10% reduction, including the methodology for reaching that target.
  • Director review: The Director must approve or require revisions to each plan by February 1, 2027.
  • Public disclosure: Approved plans must be published on the OSBM website.

3) Reporting

  • Progress reporting: By October 1, 2027, the Director must report to the Fiscal Research Division on progress toward meeting the act’s requirements.

4) Appropriation and Funding for Implementation

  • Initial funding: Effective July 1, 2026, the bill appropriates $200,000 in nonrecurring General Fund dollars to OSBM for the 2026–2027 fiscal year to support implementing the act.

5) Effective Date

  • The act takes effect upon becoming law, with the above sections applying as noted (noting exceptions where specified).

Affected Parties

  • Primary: State agencies and their heads (e.g., departments and offices funded by the General Fund).
  • Implementing Entity: Office of State Budget and Management (OSBM), which would develop guidance, review agency plans, and publish results.
  • Fiscal Oversight: Fiscal Research Division would receive progress reports.

Timeline and Milestones

  • January 1, 2027: Agency heads must submit detailed budget reduction implementation plans to the Director.
  • February 1, 2027: Director must approve plans or require revisions.
  • October 1, 2027: Director must report progress to the Fiscal Research Division.
  • June 30, 2028: Target date to achieve at least a 10% reduction in total agency budgets.
  • July 1, 2026: Beginning of appropriation period for the act’s implementation (with a one-time $200,000 funding for 2026–2027).

Potential Impacts and Considerations

  • Agency-level planning and targets: Agencies will need to identify efficiencies, potential headcount or program reductions, technology investments, shared services, or modernization efforts to meet the 10% goal.
  • Flexibility vs. uniform cuts: The Director’s flexibility aims to prevent disproportionate burdens on any single agency, potentially allowing tailored approaches.
  • Transparency: Published agency plans enhance public transparency on how reductions are to be achieved.
  • Fiscal oversight: Regular progress reporting to the Fiscal Research Division provides ongoing accountability.

Note: The bill is labeled as “Public” and is filed but not yet enacted; it outlines a framework and timeline for achieving a 10% budget reduction across state agencies by 2028.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.