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Chapter Three discusses Budgeting for Operating and Capital Expenditures. North

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Chapter Three discusses Budgeting for Operating and Capital Expenditures. North Carolina counties, municipalities, and public authorities (collectively, local units) are required to budget and spend money in accordance with the Local Government Budget Fiscal Control Act (LGBFCA).
A local unit may not expend any funds regardless of their source, unless the money has been properly budgeted through the annual budget ordinance, a project ordinance, or a financial plan adopted by the unit’s governing board.
Perhaps the most important statutory requirement is that the budget ordinance be balanced. A budget ordinance is balanced when ” the sum of estimated net revenues and appropriated fund balances is equal to appropriation. The law requires an exact balance, it permits neither a deficit nor a surplus.
Question: What type of provisions does a unit have if there is a short fall in revenues received?

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