Response to State Controller's Memorandum on "Interfund Temporary Borrowing"

Mar 15th, 2011
by Jeanette Doran


Contact: Jeanette Doran
Phone: 919-838-5313
The NC Institute for Constitutional Law’s Response
to Memorandum on “Interfund Temporary Borrowing”
RALEIGH, NC. March 15, 2011—Today, lawyers with the North Carolina Institute for Constitutional Law (NCICL) received and reviewed a memorandum prepared by State Controller David McCoy in which he claims the Governor’s plan to raid the Employment Security Commission Reserve Fund is constitutional. NCICL attorneys take exception to the Controller’s analysis which they characterize as incomplete and factually inaccurate.
“The Governor must administer the budget as the General Assembly has written it, whether she likes it or not,” said NCICL Senior Staff Attorney Jeanette Doran. “Constitutional mandates do not and should not bend to convenience or expediency.”  In a Memorandum of Law, Doran explains the errors in the Controller’s analysis and the constitutional flaws in the Governor’s plan to use various special funds, including the Employment Security Reserve Fund, to pay General Fund expenditures. Last week, NCICL published two memoranda of law questioning the constitutionality of the Governor’s plan.
Today’s Memorandum of Law as well as the two previous memoranda are available at
If you would like more information on this topic, please call Jeanette Doran at 919-838-5313 or email at