GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
S 2
SENATE BILL 622
Appropriations/Base Budget Committee Substitute Adopted 5/3/05
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Short Title: 2005 Appropriations Act. |
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Sponsors: |
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Referred to: |
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March 17, 2005
A BILL TO BE ENTITLED
AN ACT TO MAKE BASE BUDGET APPROPRIATIONS FOR CURRENT OPERATIONS OF STATE DEPARTMENTS, INSTITUTIONS, AND AGENCIES, AND FOR OTHER PURPOSES.
The General Assembly of North Carolina enacts:
PART i. INtroduction and title of act
Requested by: Senators Garrou, Dalton, Hagan
SECTION 1.1. The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget in accordance with the Executive Budget Act. Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes and the savings shall revert to the appropriate fund at the end of each fiscal year, except as otherwise provided by law.
Requested by: Senators Garrou, Dalton, Hagan
SECTION 1.2. This act shall be known as the "Current Operations and Capital Improvements Appropriations Act of 2005."
PART iI. current operations and expansion/general fund
CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
Current Operations – General Fund 2005‑2006 2006‑2007
EDUCATION
Community Colleges System Office $ 792,784,715 $ 746,844,357
Department of Public Instruction 6,686,828,445 6,694,525,352
University of North Carolina – Board of Governors
Appalachian State University 97,985,189 98,017,482
East Carolina University
Academic Affairs 163,117,460 165,825,346
Health Affairs 45,236,835 45,199,318
Elizabeth City State University 27,836,223 27,945,857
Fayetteville State University 42,457,022 42,888,221
NC Agricultural and Technical University 76,760,995 77,033,079
North Carolina Central University 58,670,213 58,651,761
North Carolina School of the Arts 19,903,778 19,887,953
North Carolina State University
Academic Affairs 298,649,068 303,604,023
Agricultural Extension 35,806,488 35,806,688
Agricultural Research 45,270,285 45,549,731
University of North Carolina at Asheville 28,616,607 29,645,303
University of North Carolina at Chapel Hill
Academic Affairs 212,811,809 221,386,937
Health Affairs 163,536,496 165,717,793
Area Health Education Centers 44,519,506 44,519,506
University of North Carolina at Charlotte 125,946,379 132,426,616
University of North Carolina at Greensboro 112,494,664 113,358,313
University of North Carolina at Pembroke 40,978,831 41,646,390
University of North Carolina at Wilmington 74,233,617 76,212,723
Western Carolina University 71,221,796 71,938,286
Winston‑Salem State University 48,827,490 48,923,209
General Administration 47,357,834 47,356,334
University Institutional Programs 24,985,466 28,970,466
Related Educational Programs 112,128,293 113,991,033
North Carolina School of Science and Mathematics 13,840,377 13,840,377
UNC Hospitals at Chapel Hill 39,231,482 39,231,482
Total University of North Carolina –
Board of Governors 2,072,424,203 2,109,574,227
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
Office of the Secretary 114,180,919 130,744,045
Division of Aging 29,495,139 29,495,139
Division of Blind Services/Deaf/HH 9,636,797 9,681,220
Division of Child Development 264,750,017 267,356,799
Division of Education Services 33,852,267 34,281,895
Division of Facility Services 16,045,403 17,795,105
Division of Medical Assistance 2,461,281,279 2,606,201,525
Division of Mental Health 600,373,655 602,298,655
NC Health Choice 62,035,981 62,035,981
Division of Public Health 139,796,232 141,314,496
Division of Social Services 185,339,061 186,973,442
Division of Vocation Rehabilitation 41,755,526 42,142,193
Total Health and Human Services $ 3,958,542,276 $ 4,130,320,495
NATURAL AND ECONOMIC RESOURCES
Department of Agriculture and Consumer Services 49,829,113 49,456,901
Department of Commerce
Commerce 44,407,935 36,759,201
Commerce State‑Aid 11,222,085 11,222,085
NC Biotechnology Center 12,083,395 10,583,395
Rural Economic Development Center 24,802,607 24,802,607
Department of Environment and Natural Resources 171,187,401 163,712,105
Department of Labor 14,154,785 14,169,511
JUSTICE AND PUBLIC SAFETY
Department of Correction $ 1,023,193,451 $ 1,041,825,169
Department of Crime Control and Public Safety 33,509,206 33,899,206
Judicial Department 338,914,267 341,627,255
Judicial Department – Indigent Defense 90,879,188 85,879,188
Department of Justice 76,555,200 77,190,756
Department of Juvenile Justice and
Delinquency Prevention 135,174,503 135,774,503
GENERAL GOVERNMENT
Department of Administration 62,419,016 58,783,228
Office of Administrative Hearings 2,987,410 2,969,712
Department of State Auditor 10,850,737 10,840,918
Office of State Controller 10,043,268 10,044,511
Department of Cultural Resources
Cultural Resources 63,541,449 61,950,582
Roanoke Island Commission 1,783,374 1,783,374
State Board of Elections 5,067,543 5,069,307
General Assembly 42,984,588 46,965,432
Office of the Governor
Office of the Governor 5,324,590 5,344,528
Office of State Budget and Management 5,019,735 5,021,795
OSBM – Reserve for Special Appropriations 4,430,000 4,180,000
Housing Finance Agency 5,750,945 4,750,945
Department of Insurance
Insurance 28,088,214 28,110,582
Insurance – Volunteer Safety Workers'
Compensation 2,500,000 4,500,000
Office of Lieutenant Governor 754,737 753,037
Department of Revenue 78,238,895 77,858,775
Department of Secretary of State 8,657,943 8,638,857
Department of State Treasurer
State Treasurer 8,690,595 8,295,843
State Treasurer – Retirement for Fire and Rescue
Squad Workers 8,551,457 8,551,457
TRANSPORTATION
Department of Transportation 0 0
RESERVES, ADJUSTMENTS AND DEBT SERVICE
Reserve for Compensation Increases 192,876,000 499,876,000
Salary Adjustment Fund: 2005‑2007 Biennium 4,500,000 4,500,000
Salary Adjustment Fund: 2004‑2005 Fiscal Year 4,500,000 4,500,000
Reserve for Teachers' and State Employees'
Retirement Contribution 14,617,000 14,617,000
Reserve for Retirement System Payback 25,000,000 0
Reserve for Death Benefit Trust 12,899,200 12,899,200
Reserve for Disability Income Plan 6,586,500 6,586,500
Reserve for State Health Plan 125,000,000 167,000,000
Contingency and Emergency Fund 5,000,000 5,000,000
Reserve for Information Technology
Rate Adjustments (2,300,000) (2,300,000)
Information Technology Fund 24,375,000 8,025,000
MH/DD/SAS Trust Fund 5,000,000 0
Health and Wellness Trust Fund 10,000,000 0
Reserve for Job Development Investment Grants (JDIG) 8,000,000 12,400,000
Reserve for Healthy NC 2,000,000 0
Reserve for Increased Fuel Costs 3,000,000 0
Debt Service
General Debt Service 489,544,211 619,291,140
Federal Reimbursement 1,616,380 1,616,380
TOTAL CURRENT OPERATIONS –
GENERAL FUND $ 16,824,391,562 $ 17,416,590,416
Requested by: Senators Garrou, Dalton, Hagan
GENERAL FUND AVAILABILITY STATEMENT
FY 2005‑2006 FY 2006‑2007
Unappropriated Balance Remaining
from Previous Year $ 0 $ 247,722,490
Projected Over Collections FY 2004‑2005 428,400,000 0
Projected Reversions FY 2004‑2005 75,000,000 0
Less Earmarkings of Year End Credit Balance 0 0
Savings Reserve Account (125,850,000) 0
Repairs and Renovations (50,000,000) 0
Beginning Unreserved Credit Balance $ 327,550,000 $ 247,722,490
Revenues Based on Existing Tax Structure $ 15,250,100,000 $ 15,903,000,000
Nontax Revenues
Investment Income 75,300,000 78,500,000
Judicial Fees 142,200,000 147,900,000
Disproportionate Share 100,000,000 100,000,000
Insurance 56,600,000 58,800,000
Other Nontax Revenues 150,400,000 161,800,000
Highway Trust Fund/Use Tax Reimbursement
Transfer 252,558,117 252,663,009
Highway Fund Transfer 16,200,000 16,200,000
Subtotal Nontax Revenues 793,258,117 815,863,009
Total General Fund Availability $ 16,370,908,117 $ 16,966,585,499
Adjustments to Availability: 2005 Session
Streamlined Sales Tax Changes 72,200,000 87,800,000
Maintain 4.5% Sales Tax Rate 413,400,000 458,700,000
Other Sales Tax Changes
Apply Sales Tax to Service Contracts and
Warranties 9,100,000 16,800,000
Apply Sales Tax to Candy 11,000,000 15,800,000
Exempt Potting Soil for Farmers (200,000) (300,000)
Tobacco Tax Rate Changes 201,300,000 229,900,000
Reduce Highest Marginal Individual
Income Tax Rate to 7.75% Over Two Years 20,100,000 24,600,000
Continue Use Tax Line on Individual Returns 3,200,000 3,200,000
Conform Estate Tax to Federal Sunset 30,700,000 121,600,000
Reduce Corporate Income Tax Rate 0 0
Corporate Tax "Throwout" Rule 9,800,000 10,300,000
Film Industry Jobs Incentives (4,800,000) (4,800,000)
IRC Update – Partial Conformance (8,000,000) (10,700,000)
Increase Earmarking for NC Grape Growers Council (150,000) (150,000)
Justice and Public Safety Fees 20,428,271 20,428,271
Transfer from Tobacco Trust Fund 34,000,000 30,000,000
Transfers from Special Revenue and Other Funds 8,953,950 0
Reimburse Debt Service for Certain Capital Facilities
and Land Acquisition per SL 2004‑179 5,958,723 21,060,827
Adjust Transfer from Insurance Regulatory Fund 256,513 243,813
Adjust Transfer from Treasurer's Office 68,478 67,478
Subtotal Adjustments to Availability:
2005 Session $ 827,315,935 $ 1,024,550,389
Revised General Fund Availability $ 17,198,224,052 $ 17,991,135,888
Less: General Fund Appropriations
SB 622 (2005 Appropriations Act ) (16,850,501,562) (17,416,590,416)
G.S. 143‑15.3B: Clean Water Management
Trust Fund (100,000,000) (100,000,000)
Total General Fund Appropriations 2005‑2007
Biennium ($16,950,501,562) ($17,516,590,416)
Unappropriated Balance Remaining $ 247,722,490 $ 474,545,472
SECTION 2.2.(b) Notwithstanding G.S. 143‑16.4(a2), of the funds credited to the Tobacco Trust Account from the Master Settlement Agreement pursuant to Section 6(2) of S.L. 1999‑2 during the 2005‑2007 fiscal biennium, the sum of thirty‑four million dollars ($34,000,000) for the 2005‑2006 fiscal year and the sum of thirty million dollars ($30,000,000) for the 2006‑2007 fiscal year shall be transferred from the Department of Agriculture and Consumer Services, Budget Code 23703 (Tobacco Trust Fund) to the State Controller to be deposited in Nontax Budget Code 19978 (Intrastate Transfers) to support General Fund appropriations for the 2005‑2006 and 2006‑2007 fiscal years.
SECTION 2.2.(c) G.S. 143‑15.3 is amended by adding a new subsection to read:
"(a2) The transfer of funds to the Savings Reserve Account in accordance with this section or any other provision of law is not an "appropriation made by law", as that phrase is used in Article V, Section 7(1) of the North Carolina Constitution."
This subsection becomes effective June 30, 2005.
SECTION 2.2.(e) When the Highway Trust Fund was created in 1989, the revenue from the sales tax on motor vehicles was transferred from the General Fund to the Highway Trust Fund. To offset this loss of revenue from the General Fund, the Highway Trust Fund was required to transfer one hundred seventy million dollars ($170,000,000) to the General Fund each year, an amount equal to the revenue in 1989 from the sales tax on motor vehicles. This transfer did not, however, make the General Fund whole after the transfer of the sales tax revenue because no provision has been made to adjust the amount for the increased volume of transactions and increased vehicle prices. The additional eighty million dollars ($80,000,000) transferred from the Highway Trust Fund to the General Fund by this act is an effort to recover a portion of the sales tax revenues that would have gone to the General Fund over the last 16 years.
SECTION 2.2.(f) Notwithstanding G.S. 105‑187.9(b)(1), the sum to be transferred under that subdivision for the 2005‑2006 fiscal year and for the 2006‑2007 fiscal year is two hundred fifty million dollars ($250,000,000).
SECTION 2.2.(g) Section 2.2(g) of S.L. 2002‑126 is repealed.
SECTION 2.2.(h) Notwithstanding any other provision of law to the contrary, effective July 1, 2005, cash balances remaining in special funds on June 30, 2005, shall be transferred to the State Controller to be deposited in Nontax Budget Code 19978 (Intrastate Transfers) according to the schedule that follows. These funds shall be used to support General Fund appropriations for the 2005‑2006 fiscal year.
Fund Amount Transferred
Department of Environment and Natural Resources
Budget Code 24300, Fund Code 2338 (DAQ‑Inspections
and Maintenance – Air Pollution) $ 300,000
Budget Code 24300, Fund Code 2106 (DEH – Sleep Products) 200,000
Budget Code 24300, Fund Code 2735 (DLR – Sedimentation Fees) 200,000
Budget Code 24306, Fund Code 2127 (DWQ – Clean‑Up Dry
Cleaning Solvent) 3,000,000
Budget Code 24300, Fund Code 2130 (DWQ – Well Construction Fund) 100,000
Budget Code 24300, Fund Code 2335 (DWQ – Lab Certification Fees) 100,000
Budget Code 24300, Fund Code 2341 (DWQ – Water Permits) 500,000
Budget Code 64306, Fund Code 6341 (DWQ – WW Treatment
Maintenance and Repair) 100,000
Budget Code 24304, Fund Code 2982 (DWQ – Riparian Buffer
Restoration) 2,000,000
Department of Commerce
Budget Code 24600, Fund Code 2711 (Industrial Development Fund) 500,000
Department of Corrections
Budget Code 24502, (Inmate Canteen/Welfare Fund) 440,000
Judicial Department
Budget Code 22005, Fund Code 2263 (Worthless Check Fund) 100,000
Department of Administration
Budget Code 24160, Fund Code 2000 (NC Flex) 913,950
SECTION 2.2.(i) The transfer of cash from Department of Correction, Budget Code 74500, Fund Code 7100 (Prison Enterprises) to Nontax Budget Code 19978 (Intrastate Transfers) shall be increased by five hundred thousand dollars ($500,000), effective July 1, 2005, for the 2005‑2006 fiscal year.
PART iII. current operations and expansion/highway fund
Requested by: Senators Jenkins, Garrou, Dalton, Hagan
current operations and expansion/highway fund
Current Operations – Highway Fund 2005‑2006 2006‑2007
Department of Transportation
Administration $ 93,888,317 $ 95,100,980
Division of Highways
Administration 30,621,612 30,632,164
Construction 140,470,000 143,080,000
Maintenance 715,895,029 665,722,211
Planning and Research 4,280,000 4,280,000
OSHA Program 425,000 425,000
Ferry Operations 21,264,811 21,264,811
State Aid
Municipalities 93,370,000 95,980,000
Public Transportation 66,466,447 89,866,447
Railroads 16,531,153 15,531,153
Governor's Highway Safety 293,118 293,118
Division of Motor Vehicles 95,447,914 95,268,137
Other State Agencies 237,392,745 230,530,729
Reserves and Transfers 20,798,052 36,958,052
TOTAL $1,537,144,198 $ 1,524,932,802
Requested by: Senators Jenkins, Garrou, Dalton, Hagan
highway fund availability statement
SECTION 3.2. The Highway Fund availability used in developing the 2005‑2007 biennial budget is shown below:
Highway Fund Availability Statement 2005‑2006 2006‑2007
Beginning Credit Balance ‑ ‑
Estimated Revenue $ 1,631,640,000 $ 1,661,240,000
Estimated Reversions ‑ ‑
Total Highway Fund Availability $ 1,631,640,000 $ 1,661,240,000
PART iv. highway trust fund appropriations
Requested by: Senators Jenkins, Garrou, Dalton, Hagan
highway trust fund appropriations
Current Operations – Highway Trust Fund 2005‑2006 2006‑2007
Intrastate System $469,925,196 $486,590,730
Urban Loops 190,018,179 196,757,026
Aid to Municipalities 49,306,114 51,054,717
Secondary Roads 86,596,114 89,274,717
Program Administration 41,156,280 42,259,800
Transfer to General Fund 252,558,117 252,663,009
GRAND TOTAL CURRENT OPERATIONS
AND EXPANSION $1,089,560,000 $1,118,600,000
PART V. BLOCK GRANTS
Requested by: Senators Purcell, Malone, Garrou, Dalton, Hagan
DHHS Block Grants
SECTION 5.1.(a) Appropriations from federal block grant funds are made for the fiscal year ending June 30, 2006, according to the following schedule:
COMMUNITY SERVICES BLOCK GRANT
01. Community Action Agencies $ 15,071,666
02. Limited Purpose Agencies 837,315
03. Department of Health and Human Services
to administer and monitor
the activities of the
Community Services Block Grant 837,315
TOTAL COMMUNITY SERVICES BLOCK GRANT $ 16,746,296
SOCIAL SERVICES BLOCK GRANT
01. County departments of social services $ 28,868,189
(Transfer from TANF – $4,500,000)
02. Allocation for in‑home services provided
by county departments of
social services 2,101,113
03. Adult day care services 2,155,301
04. Child Protective Services/CPS Investigative
Services/Child Medical Evaluation Program 238,321
05. Foster Care Services – CCIS 1,500,000
06. Division of Aging and Adult Services – Home and Community
Care Block Grant 1,834,077
07. UNC‑CH CARES Program for training and
consultation services 247,920
08. Mental Health Services Program 422,003
09. Division of Mental Health, Developmental Disabilities, and
Substance Abuse Services – Developmentally Disabled
Services Program 5,000,000
10. Division of Mental Health, Developmental Disabilities,
and Substance Abuse Services 3,234,601
11. Division of Services for the Blind – Independent
Living Program 3,182,987
12. Division of Vocational Rehabilitation Services –
Easter Seals Society/UCP 188,263
13. Office of the Secretary – Office of Economic
Opportunity for N.C. Senior Citizens'
Federation for outreach services to
low‑income elderly persons 41,302
14. Child Care Subsidies 3,356,063
15. Division of Facility Services –
Adult Care Licensure Program 411,897
16. Division of Facility Services –
Mental Health Licensure 205,668
17. State administration 1,706,017
18. Division of Mental Health, Developmental
Disabilities, and Substance Abuse Services –
Administration 18,098
19. Division of Facility Services 37,204
20. Office of the Secretary – NC Interagency Council
for Coordinating Homeless Programs 250,000
21. Department of Administration
for the N.C. State Commission of Indian Affairs
In‑Home Services Program for the Elderly 203,198
22. Transfer to Preventative Health Services Block
Grant for HIV/AIDS education, counseling, and
testing 145,819
TOTAL SOCIAL SERVICES BLOCK GRANT $ 55,348,041
LOW‑INCOME ENERGY BLOCK GRANT
01. Energy Assistance Programs $ 13,208,740
02. Crisis Intervention 9,592,387
03. Administration 3,186,258
County DSS $1,930,734
Division of Social Services $300,000
Division of Mental Health, Developmental
Disabilities, and Substance Abuse
Services $7,146
Local Residential Energy Efficiency
Service Providers $353,820
Office of the Secretary $594,558
04. Weatherization Program 4,343,072
05. Department of Administration –
N.C. State Commission of Indian Affairs 54,840
06. Heating Air Repair and Replacement Program 2,025,687
TOTAL LOW‑INCOME ENERGY BLOCK GRANT $ 32,410,984
MENTAL HEALTH SERVICES BLOCK GRANT
01. Provision of community‑based
services for severe and persistently
mentally ill adults $ 6,983,202
02. Provision of community‑based
services to children 3,921,991
03. Comprehensive Treatment Services
Program for Children 1,500,000
04. Administration 568,911
TOTAL MENTAL HEALTH SERVICES BLOCK GRANT $ 12,974,104
SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT
01. Provision of community‑based
alcohol and drug abuse services,
tuberculosis services, and services
provided by the Alcohol and Drug Abuse
Treatment Centers $ 20,441,082
02. Continuation of services for
pregnant women and women
with dependent children 8,069,524
03. Continuation of services to
IV drug abusers and others at risk
for HIV diseases 4,816,378
04. Child Substance Abuse Prevention 5,835,701
05. Provision of services to children
and adolescents 4,940,500
06. Juvenile Services – Family Focus 851,156
07. Allocation to the Division of Public Health
for HIV/STD Risk Reduction Projects 383,980
08. Allocation to the Division of Public Health
for HIV/STD Prevention by County Health
Departments 209,576
09. Allocation to the Division of Public Health
for the Maternal and Child Health Hotline 37,779
10. Administration 2,596,307
TOTAL SUBSTANCE ABUSE PREVENTION
AND TREATMENT BLOCK GRANT $ 48,181,983
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
01. Child care subsidies $158,708,393
02. Quality and availability initiatives 33,059,644
03. Administrative expenses 7,163,654
04. Transfer from TANF Block Grant for
child care subsidies 81,292,880
TOTAL CHILD CARE AND DEVELOPMENT FUND
BLOCK GRANT $280,224,571
TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT
01. Work First Cash Assistance $107,794,365
02. Work First County Block Grants 94,653,315
03. Child Protective Services –
Child Welfare Workers for local DSS 12,452,391
04. Support Our Students – Department of
Juvenile Justice and Delinquency
Prevention 2,749,642
05. Family Violence Prevention 1,200,000
06. Work First – After‑School Services for
At‑Risk Children 2,249,642
07. Division of Social Services –
Administration 356,291
08. Office of the Secretary –
Administration 60,249
09. Child Welfare Training 2,550,000
10. Boys and Girls Clubs 1,000,000
11. Work Central Career Advancement Center 550,000
12. Special Children's Adoption Fund 3,000,000
13. Maternity Homes 838,000
14. After‑School Programs for At‑Risk Youth in
Middle Schools 500,000
15. Teen Pregnancy Prevention Initiatives 2,500,000
16. Subsidized Child Care Program 36,601,205
17. TANF Automation Projects 592,500
18. NC FAST Implementation 1,447,640
19. Transfer to the Child Care and
Development Fund Block Grant
for child care subsidies 81,292,880
20. Transfer to Social Services Block Grant for
County Departments of Social Services for
Children's Services 4,500,000
TOTAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES
(TANF) BLOCK GRANT $356,888,120
MATERNAL AND CHILD HEALTH BLOCK GRANT
01. Healthy Mothers/Healthy Children
Block Grants to Aid‑to‑County 9,359,236
02. Children's Health Services Aid‑to‑County 7,364,216
03. Healthy Beginnings Aid‑to‑County 404,559
04. Maternal Health Aid‑to‑County 397,761
05. Children's Health Services 2,878,883
06. Office of Women's Health and
Maternal Health Activities 114,063
07. State Center for Health Statistics 28,874
08. Local Technical Assistance & Training 46,866
09. Injury and Violence Prevention 149,438
10. Office of Minority Health 99,352
11. Special Supplemental Nutrition Program
for Women, Infants and Children (WIC) 25,713
12. Immunization Program – Vaccine Distribution 819,997
13. Administration 518,137
TOTAL MATERNAL AND CHILD
HEALTH BLOCK GRANT $ 22,207,095
PREVENTIVE HEALTH SERVICES BLOCK GRANT
01. Statewide Health Promotion Programs $3,637,771
02. Rape Crisis/Victims' Services
Program – Council for Women 197,112
03. Transfer from Social Services
Block Grant – HIV/AIDS education,
counseling, and testing 145,819
04. Adolescent Pregnancy Prevention Coalition of NC 150,000
05. Administration and Program Support 121,271
06. Osteoporosis Task Force Operating Costs 150,000
TOTAL PREVENTIVE HEALTH SERVICES BLOCK GRANT $4,401,973
GENERAL PROVISIONS
SECTION 5.1.(b) Information to Be Included in Block Grant Plans. – The Department of Health and Human Services shall submit a separate plan for each Block Grant received and administered by the Department, and each plan shall include the following:
(1) A delineation of the proposed allocations by program or activity, including State and federal match requirements.
(2) A delineation of the proposed State and local administrative expenditures.
(3) An identification of all new positions to be established through the Block Grant, including permanent, temporary, and time‑limited positions.
(4) A comparison of the proposed allocations by program or activity with two prior years' program and activity budgets and two prior years' actual program or activity expenditures.
(5) A projection of current year expenditures by program or activity.
(6) A projection of federal Block Grant funds available, including unspent federal funds from the current and prior fiscal years.
Prior to allocating the change in federal fund availability, the proposed allocation must be approved by the Office of State Budget and Management. If the Department adjusts the allocation of any Block Grant due to changes in federal fund availability, then a report shall be made to the Joint Legislative Committee on Governmental Operations, the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.
(1) Performance standards for recipients.
(2) Financial audit standards for non‑State entities equivalent to the requirements in G.S. 143‑6.1 for non‑State entities receiving State funds.
(3) Means for collecting performance data from recipients.
(4) Any other information necessary for monitoring and overseeing the use of Block Grant funding.
The Department shall provide the plan to the Fiscal Research Division by January 1, 2006.
(1) All State positions currently funded through the Block Grant, including permanent, temporary, and time‑limited positions.
(2) Budgeted salary and fringe benefits for each position.
(3) Identify the percentage of Block Grant funds used to fund each position.
The report shall be submitted no later than December 1, 2005.
SOCIAL SERVICES BLOCK GRANT
SECTION 5.1.(g) Social Services Block Grant funds appropriated to the North Carolina Inter‑Agency Council for Coordinating Homeless Program are exempt from the provisions of 10A NCAC 71R.0201(3).
LOW‑INCOME HOME ENERGY ASSISTANCE PROGRAM
MENTAL HEALTH BLOCK GRANT
CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
SECTION 5.1.(k) The sum of four hundred thousand dollars ($400,000) appropriated in this section to the Department of Health and Human Services in the Child Care and Development Fund Block Grant shall be used for the operations of the Medical Child Care Pilot.
SECTION 5.1.(l) Payment for subsidized child care services provided with federal TANF funds shall comply with all regulations and policies issued by the Division of Child Development and School Readiness for the subsidized child care program.
TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BLOCK GRANT (TANF)
SECTION 5.1.(o) The sum of two million seven hundred forty‑nine thousand six hundred forty‑two dollars ($2,749,642) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services and transferred to the Department of Juvenile Justice and Delinquency Prevention for the 2005‑2006 fiscal year shall be used to support the existing Support Our Students Program and to expand the Program statewide, focusing on low‑income communities in unserved areas. These funds shall not be used for administration of the Program.
SECTION 5.1.(p) The sum of one million two hundred thousand dollars ($1,200,000) appropriated under this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for the 2005‑2006 fiscal year shall be used to provide domestic violence services to Work First recipients. These funds shall be used to provide domestic violence counseling, support, and other direct services to clients. These funds shall not be used to establish new domestic violence shelters or to facilitate lobbying efforts. The Division of Social Services may use up to seventy‑five thousand dollars ($75,000) in TANF funds to support one administrative position within the Division of Social Services to implement this subsection.
Each county department of social services and the local domestic violence shelter program serving the county shall jointly develop a plan for utilizing these funds. The plan shall include the services to be provided and the manner in which the services shall be delivered. The county plan shall be signed by the county social services director or the director's designee and the domestic violence program director or the director's designee and submitted to the Division of Social Services by December 1, 2005. The Division of Social Services, in consultation with the Council for Women, shall review the county plans and shall provide consultation and technical assistance to the departments of social services and local domestic violence shelter programs, if needed.
The Division of Social Services shall allocate these funds to county departments of social services according to the following formula: (i) each county shall receive a base allocation of five thousand dollars ($5,000); and (ii) each county shall receive an allocation of the remaining funds based on the county's proportion of the statewide total of the Work First caseload as of July 1, 2005, and the county's proportion of the statewide total of the individuals receiving domestic violence services from programs funded by the Council for Women as of July 1, 2005. The Division of Social Services may reallocate unspent funds to counties that submit a written request for additional funds.
The Department of Health and Human Services shall report on the uses of these funds no later than March 1, 2006, to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.
SECTION 5.1.(q) The sum of two million two hundred forty‑nine thousand six hundred forty‑two dollars ($2,249,642) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, shall be used to expand after‑school programs and services for at‑risk children. The Department shall develop and implement a grant program to award grants to community‑based programs that demonstrate the ability to reach children at risk of teen pregnancy and school dropout. The Department shall award grants to community‑based organizations that demonstrate the ability to develop and implement linkages with local departments of social services, area mental health programs, schools, and other human services programs in order to provide support services and assistance to the child and family. These funds may be used to fund one position within the Division of Social Services to coordinate at‑risk after‑school programs and shall not be used for other State administration. The Department shall report no later than March 1, 2006, on its progress in complying with this section to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Committee on Health and Human Services, and the Fiscal Research Division.
SECTION 5.1.(r) The sum of twelve million four hundred fifty‑two thousand three hundred ninety‑one dollars ($12,452,391) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in the TANF Block Grant for the 2005‑2006 fiscal year for Child Welfare Improvements, shall be allocated to the county departments of social services for hiring or contracting staff to investigate and provide services in Child Protective Services cases; to provide foster care and support services; to recruit, train, license, and support prospective foster and adoptive families; and to provide interstate and post‑adoption services for eligible families.
SECTION 5.1.(s) The sum of two million five hundred fifty thousand dollars ($2,550,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Division of Social Services, for fiscal year 2005‑2006 shall be used to support various child welfare training projects as follows:
(1) Provide a regional training center in southeastern North Carolina.
(2) Support the Masters Degree in Social Work/Baccalaureate Degree in Social Work Collaborative.
(3) Provide training for residential child care facilities.
(4) Provide for various other child welfare training initiatives.
SECTION 5.1.(t) The sum of eight hundred thirty‑eight thousand dollars ($838,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services shall be used to purchase services at maternity homes throughout the State.
SECTION 5.1.(u) The sum of three million dollars ($3,000,000) appropriated in this section in the TANF Block Grant to the Department of Health and Human Services, Special Children Adoption Fund, for the 2005‑2006 fiscal year shall be used to implement this subsection. The Division of Social Services, in consultation with the North Carolina Association of County Directors of Social Services and representatives of licensed private adoption agencies, shall develop guidelines for the awarding of funds to licensed public and private adoption agencies upon the adoption of children described in G.S. 108A‑50 and in foster care. Payments received from the Special Children Adoption Fund by participating agencies shall be used exclusively to enhance the adoption services program. No local match shall be required as a condition for receipt of these funds.
SECTION 5.1.(v) The sum of one million five hundred thousand dollars ($1,500,000) appropriated in this section in the TANF Block Grant and transferred to the Social Services Block Grant to the Department of Health and Human Services, Division of Social Services, for child caring agencies for the 2005‑2006 fiscal year shall be allocated to the State Private Child Caring Agencies Fund.
SECTION 5.1.(w) The sum of one million dollars ($1,000,000) appropriated in this section to the Department of Health and Human Services in the TANF Block Grant for Boys and Girls Clubs shall be used to make grants for approved programs. The Department of Health and Human Services, in accordance with federal regulations for the use of TANF Block Grant funds, shall administer a grant program to award funds to the Boys and Girls Clubs across the State in order to implement programs that improve the motivation, performance, and self‑esteem of youths and to implement other initiatives that would be expected to reduce school dropout and teen pregnancy rates. The Department shall encourage and facilitate collaboration between the Boys and Girls Clubs and Support Our Students, Communities in Schools, and similar programs to submit joint applications for the funds if appropriate.
SECTION 5.1.(z) The sum of five hundred thousand dollars ($500,000) appropriated in this section to the Department of Health and Human Services, Division of Social Services, in the TANF Block Grant shall be used to expand after‑school programs for at‑risk children attending middle school. The Department shall develop and implement a grant program to award funds to community‑based programs demonstrating the capacity to reach children at risk of teen pregnancy and school dropout. These funds shall not be used for training or administration at the State level. All funds shall be distributed to community‑based programs, focusing on those communities where similar programs do not exist in middle schools. The Department shall report to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division on its progress in complying with this subsection no later than May 1, 2006.
MATERNAL AND CHILD HEALTH BLOCK GRANT
SECTION 5.1.(cc) Of the funds budgeted in the Maternal and Child Health Block Grant, three million two hundred fifty thousand dollars ($3,250,000) shall be used for a school nurse funding initiative for the 2005‑2006 fiscal year. The Department of Health and Human Services, Division of Public Health, in conjunction with the Department of Public Instruction, shall provide funds to communities to hire school nurses. The program will fund approximately 65 time‑limited nurses. The criteria shall include determining the areas in the greatest need for school nurses with the greatest inability to pay for these nurses. Among other criteria, consideration shall also be given to (i) the current nurse‑to‑student ratio; (ii) the economic status of the community; and (iii) the health needs of area children.
There shall be no supplanting of local or Title I funds with these block grant funds. Communities shall maintain their current level of effort and funding for school nurses. No block grant funds shall be used for funding nurses for State agencies. All funding shall be used for direct services.
The Department of Health and Human Services shall report on the use of funds allocated under this section by December 1, 2005, to the House of Representatives Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Committee on Health and Human Services, and the Fiscal Research Division.
Requested by: Senators Weinstein, Garrou, Dalton, Hagan
SECTION 5.2.(a) Appropriations from federal block grant funds are made for fiscal year ending June 30, 2006, according to the following schedule:
COMMUNITY DEVELOPMENT BLOCK GRANT
01. State Administration $ 1,000,000
02. Urgent Needs and Contingency 1,000,000
03. Scattered Site Housing 13,200,000
04. Economic Development 8,710,000
05. Community Revitalization 13,500,000
06. State Technical Assistance 450,000
07. Housing Development 2,000,000
08. Infrastructure 5,140,000
TOTAL COMMUNITY DEVELOPMENT
BLOCK GRANT – 2006 Program Year $ 45,000,000
SECTION 5.2.(b) Decreases in Federal Fund Availability. – If federal funds are reduced below the amounts specified above after the effective date of this act, then every program in each of these federal block grants shall be reduced by the same percentage as the reduction in federal funds.
SECTION 5.2.(c) Increases in Federal Fund Availability for Community Development Block Grant. – Any block grant funds appropriated by the Congress of the United States in addition to the funds specified in this section shall be expended as follows: each program category under the Community Development Block Grant shall be increased by the same percentage as the increase in federal funds.
SECTION 5.2.(d) Limitations on Community Development Block Grant Funds. – Of the funds appropriated in this section for the Community Development Block Grant, the following shall be allocated in each category for each program year: up to one million dollars ($1,000,000) may be used for State Administration; not less than one million dollars ($1,000,000) may be used for Urgent Needs and Contingency; up to thirteen million two hundred thousand dollars ($13,200,000) may be used for Scattered Site Housing; up to eight million seven hundred ten thousand dollars ($8,710,000) may be used for Economic Development, including Urban Redevelopment Grants and Small Business or Entrepreneurial Assistance; not less than thirteen million five hundred thousand dollars ($13,500,000) shall be used for Community Revitalization; up to four hundred fifty thousand dollars ($450,000) may be used for State Technical Assistance; up to two million dollars ($2,000,000) may be used for Housing Development; up to five million one hundred forty thousand dollars ($5,140,000) may be used for Infrastructure. If federal block grant funds are reduced or increased by the Congress of the United States after the effective date of this act, then these reductions or increases shall be allocated in accordance with subsection (b) or (c) of this section, as applicable.
SECTION 5.2.(e) Increase Capacity for Nonprofit Organizations. – Assistance to nonprofit organizations to increase their capacity to carry out CDBG‑eligible activities in partnership with units of local government is an eligible activity under any program category in accordance with federal regulations. Capacity building grants may be made from funds available within program categories, program income, or unobligated funds.
SECTION 5.2.(f) Department of Commerce Demonstration Grants in Partnership with Rural Economic Development Center, Inc. – The Department of Commerce, in partnership with the Rural Economic Development Center, Inc., shall award up to two million two hundred fifty thousand dollars ($2,250,000) in demonstration grants to local governments in very distressed rural areas of the State. These grants shall be used to address critical infrastructure and entrepreneurial needs and to provide small business assistance.
SECTION 5.2.(g) The Department of Commerce shall consult with the Joint Legislative Commission on Governmental Operations prior to reallocating Community Development Block Grant Funds. Notwithstanding the provisions of this subsection, whenever the Director of the Budget finds that:
(1) A reallocation is required because of an emergency that poses an imminent threat to public health or public safety, the Director of the Budget may authorize the reallocation without consulting the Commission. The Department of Commerce shall report to the Commission on the reallocation no later than 30 days after it was authorized and shall identify in the report the emergency, the type of action taken, and how it was related to the emergency.
(2) The State will lose federal block grant funds or receive less federal block grant funds in the next fiscal year unless a reallocation is made, the Department of Commerce shall provide a written report to the Commission on the proposed reallocation and shall identify the reason that failure to take action will result in the loss of federal funds. If the Commission does not hear the issue within 30 days of receipt of the report, the Department may take the action without consulting the Commission.
PART VI. general provisions
Requested by: Senators Garrou, Dalton, Hagan
APPROPRIATION OF CASH BALANCES AND RECEIPTS
SECTION 6.1.(a) Expenditures of cash balances, federal funds, departmental receipts, grants, and gifts from the various General Fund, Special Revenue Fund, Enterprise Fund, Internal Service Fund, and Trust and Agency Fund budget codes are appropriated and authorized for the 2005‑2007 fiscal biennium as follows:
(1) For all budget codes listed in "State of North Carolina, Recommended Continuation Budget 2005‑2007, Volumes 1 through 6", cash balances and receipts are appropriated up to the amounts specified in Volumes 1 through 6, as adjusted by the General Assembly, for the 2005‑2006 fiscal year and the 2006‑2007 fiscal year. Funds may be expended only for the programs and purposes and objects and line items specified in Volumes 1 through 6, or otherwise authorized by the General Assembly.
(2) For all budget codes that are not listed in "State of North Carolina, Recommended Continuation Budget 2005‑2007, Volumes 1 through 6", cash balances and receipts are appropriated for each year of the 2005‑2007 fiscal biennium up to the level of actual expenditures for the 2004‑2005 fiscal year, unless otherwise provided by law. Funds may be expended only for the programs and purposes and objects and line items authorized for the 2004‑2005 fiscal year.
(3) Notwithstanding subdivisions (1) and (2) of this subsection, any receipts that are required to be used to pay debt service requirements for various outstanding bond issues and certificates of participation are appropriated up to the actual amounts received for the 2005‑2006 fiscal year and the 2006‑2007 fiscal year and shall be used only to pay debt service requirements.
(4) Notwithstanding subdivisions (1) and (2) of this subsection, cash balances and receipts of funds that meet the definition issued by the Governmental Accounting Standards Board of a trust or agency fund, are appropriated for and in the amounts required to meet the legal requirements of the trust agreement for the 2005‑2006 fiscal year and the 2006‑2007 fiscal year.
All these cash balances, federal funds, departmental receipts, grants, and gifts shall be expended and reported in accordance with the provisions of the Executive Budget Act, except as otherwise provided by law and this section.
SECTION 6.1.(b) Receipts collected in a fiscal year in excess of the amounts authorized by this section shall remain unexpended and unencumbered until appropriated by the General Assembly in a subsequent fiscal year, unless the expenditure of over‑realized receipts in the fiscal year in which the receipts were collected is authorized by the Executive Budget Act.
Over‑realized receipts are appropriated up to the amounts necessary to implement this subsection.
In addition to the consultation and reporting requirements set out in G.S. 143‑23 and G.S. 143‑27, the Office of State Budget and Management shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office within 30 days after the end of each quarter on any over‑realized receipts approved for expenditure under this subsection by the Director of the Budget. The report shall include the source of the receipt, the amount over‑realized, the amount authorized for expenditure, and the rationale for expenditure.
SECTION 6.1.(c) Notwithstanding subsections (a) and (b) of this section, there is appropriated from the Reserve for Reimbursements to Local Governments and Shared Tax Revenues for each fiscal year an amount equal to the amount of the distributions required by law to be made from that reserve for that fiscal year.
SECTION 6.1.(d) Notwithstanding subsections (a) and (b) of this section, if Senate Bill 1126, 2005 Session, or substantially similar legislation revising the Coastal Recreational Fishing License program or establishing a unified fishing license for hunting and fishing in coastal, joint, and inland waters, becomes law, any receipts from license revenues generated pursuant to such legislation are hereby appropriated for the 2005‑2006 fiscal year and the 2006‑2007 fiscal year for programs and purposes authorized by law.
SECTION 6.1.(e) Notwithstanding subsections (a)(2) and (b) of this section, the cash balances and receipts of any occupational licensing board, as defined in G.S. 93B‑1, that are not included in the budget codes listed in "State of North Carolina, Recommended Continuation Budget 2005‑2007, Volumes 1 through 6," are hereby appropriated for the 2005‑2006 fiscal year and the 2006‑2007 fiscal year and may be expended for programs and purposes authorized by law.
Requested by: Senators Garrou, Dalton, Hagan
contingency and emergency fund allocations
SECTION 6.2. Funds in the amount of five million dollars ($5,000,000) for the 2005‑2006 fiscal year and five million dollars ($5,000,000) for the 2006‑2007 fiscal year are appropriated in this act to the Contingency and Emergency Fund. Of these funds:
(1) Up to two million dollars ($2,000,000) for the 2005‑2006 fiscal year may be used for purposes related to the Base Realignment and Closure Act (BRAC); and
(2) Up to five hundred thousand dollars ($500,000) for the 2005‑2006 fiscal year and up to five hundred thousand dollars ($500,000) for the 2006‑2007 fiscal year may be expended for purposes other than those set out in G.S.143‑23(a1)(2) or in subdivision (1) of this section.
The remainder of these funds shall be expended for purposes outlined in G.S. 143‑23(a1)(2).
Requested by: Senators Garrou, Dalton, Hagan
expenditures of funds in reserves limited
SECTION 6.3. All funds appropriated by this act into reserves may be expended only for the purposes for which the reserves were established.
Requested by: Senators Garrou, Dalton, Hagan
Budget Reports accurately reflect projected receipts, expenditures, fund balances, and actual collections
SECTION 6.4. G.S. 143‑11(a) reads as rewritten:
"§
143‑11. Survey of departments. departments and recommended
budget report.
(a) On or before the fifteenth day of December, biennially in the even‑numbered years, the Director shall make a complete, careful survey of the operation and management of all the departments, bureaus, divisions, officers, boards, commissions, institutions, and agencies and undertakings of the State and all persons or corporations who use or expend State funds, in the interest of economy and efficiency, and of obtaining a working knowledge upon which to base recommendations to the General Assembly as to appropriations for maintenance and special funds and capital expenditures for the succeeding biennium. If the Director and the Commission shall agree in their recommendations for the budget for the next biennial period, he shall prepare their report in the form of a proposed budget, together with such comment and recommendations as they may deem proper to make. If the Director and Commission shall not agree in substantial particulars, the Director shall prepare the proposed budget based on his own conclusions and judgment, and the Commission or any of its members retain the right to submit separately to the General Assembly such statement of disagreement and the particulars thereof as representing their views. The budget report shall contain a complete and itemized plan of all proposed expenditures for each State department, bureau, board, division, institution, commission, State agency or undertaking, person or corporation who receives or may receive for use and expenditure any State funds, in accordance with the classification of funds and accounts adopted by the State Controller, and of the estimated revenues and borrowings for each year in the ensuing biennial period beginning with the first day of July thereafter. Opposite each line item of the proposed expenditures, the budget shall show in separate parallel columns:
(1) Proposed expenditures and receipts for each fiscal year of the biennium;
(2) The certified budget for the preceding fiscal year;
(3) The currently authorized budget for the preceding fiscal year;
(4) Actual expenditures and receipts for the most recent fiscal year for which actual expenditure information is available; and
(5) Proposed increases and decreases.
Revenue and expenditure information shall be no less specific than the two‑digit level in the State Accounting System Chart of Accounts as prescribed by the State Controller. The budget shall clearly differentiate between general fund expenditures for operating and maintenance, special fund expenditures for any purpose, and proposed capital improvements. The budget report shall include accurate projections of receipts, expenditures, and fund balances for all budget codes, funds, and accounts. Estimated receipts, including tuition collected by university or community college institutions, shall be adjusted to reflect actual collections from the previous fiscal year, unless the Director either (i) recommends a change that will result in collections in the budget year that differ from the actual collections of the prior year or (ii) otherwise determines there is a more reasonable basis upon which to accurately project receipts."
Requested by: Senators Garrou, Dalton, Hagan
AUTHORIZATION TO ESTABLISH RECEIPT‑SUPPORTED POSITIONS
SECTION 6.5. Notwithstanding G.S. 143‑34.1(a1), a department, institution, or other agency of State government may establish receipt‑supported positions authorized in this act upon approval by the Director of the Budget. The Director, if necessary, may establish a receipt‑supported position pursuant to this section at an annual salary amount different from the salary amount set out in this act if (i) funds are available from the proposed funding source and (ii) the alternative salary amount remains within the established salary range grade identified for the job classification of the affected receipt‑supported position established in this act. The Director shall not change the job classifications or increase the number of receipt‑supported positions specified in this act without prior consultation with the Joint Legislative Commission on Governmental Operations.
Requested by: Senators Garrou, Dalton, Hagan
SECTION 6.6.(a) The General Assembly finds that the General Fund supports many state agencies that provide services and administer programs that impact all of State government. These agencies include the Office of the Governor, the Office of State Controller, the Department of Administration, including the Office of State Personnel, State Property Office, Office of State Construction, and the Division of Purchase and Contract, the Secretary of State, the Office of State Treasurer, and the Office of State Auditor. The General Assembly also finds that the General Fund supports the departmental administrative overhead costs for many receipt‑supported programs, activities, boards, and commissions. The General Assembly further finds that only federally funded programs routinely reimburse the State for such administrative overhead activities through an indirect cost allocation method. The General Assembly finds that an indirect cost allocation program should be established to recover overhead and indirect costs from all receipt‑supported programs, activities, boards, and commissions.
SECTION 6.6.(b) The Office of State Budget and Management shall study the collection of overhead receipts and develop an overhead cost recovery program. In implementing this section, the Office of State Budget and Management shall do the following:
(1) For each receipt, determine the authority and requirements for the allocation of overhead costs and collection of overhead receipts.
(2) For each receipt for which the State currently redirects a portion for overhead costs, ensure that all future receipts revert to the General Fund in accordance with the State Budget Manual, except as otherwise required by law.
(3) For each receipt for which the State does not currently redirect a portion for overhead costs, establish an indirect cost allocation methodology and redirect a portion of future receipts for overhead costs to the General Fund, except as otherwise required by law.
(5) Estimate the anticipated reimbursement to the General Fund for the 2006‑2007 fiscal year.
(6) Effective with the 2006‑2007 fiscal year, the Office of State Budget and Management shall implement the overhead cost recovery program to maximize reimbursement of statewide indirect costs supported by the General Fund.
SECTION 6.6.(c) The Office of State Budget and Management shall report on its progress in implementing this section to the Chairs of the Senate Committee on Appropriations/Base Budget, the Chairs of the House of Representatives Committee on Appropriations, and the Fiscal Research Division by April 1, 2006. The report shall recommend any statutory changes required to implement the requirements of this section.
SECTION 6.6.(d) This section does not apply to overhead cost reimbursements collected under any grant agreement by The University of North Carolina or any of its affiliated institutions.
SECTION 6.6.(e) The requirements of this section shall apply to all receipts credited to a State agency, special revenue fund, enterprise fund, internal service fund or trust fund, except as otherwise provided by law and subsection (d) of this section.
Requested by: Senators Garrou, Dalton, Hagan
prior consultation with the joint legislative commission on governmental operations
SECTION 6.7.(a) The last paragraph of G.S. 120‑76(8) is recodified as G.S. 120‑76.1 and reads as rewritten:
"§ 120‑76.1. Prior consultation with the Commission.
(a) Notwithstanding
the provisions of this subdivision G.S. 120‑76(8) or
any other provision of law requiring prior consultation by the Governor with
the Commission, whenever an expenditure is required because of an emergency
that poses an imminent threat to public health or public safety, and is either
the result of a natural event, such as a hurricane or a flood, or an accident,
such as an explosion or a wreck, the Governor may take action under this
subsection without consulting the Commission if the action is determined by
the Governor to be related to the emergency. The Governor shall report to the
Commission on any expenditures made under this paragraph subsection no
later than 30 days after making the expenditure and shall identify in the
report the emergency, the type of action taken, and how it was related to the
emergency.
(b) Any agency, board, commission, or other entity required under G.S. 120‑76(8) or any other provision of law to consult with the Commission prior to taking an action shall submit a detailed report of the action under consideration to the Chairs of the Commission, the Commission Assistant, and the Fiscal Research Division of the General Assembly. If the Commission does not hold a meeting to hear the consultation within 60 days of receiving the submission of the detailed report, the consultation requirement is satisfied."
SECTION 6.7.(b) G.S. 143‑23(a1) reads as rewritten:
"(a1) Notwithstanding the provisions of subsection (a) of this section, a department, institution, or other spending agency may, with approval of the Director of the Budget, spend more than was appropriated for:
(1) An object or line item within a purpose or program so long as the total amount expended for the purpose or program is no more than was appropriated from all sources for the purpose or program for the fiscal period;
(2) A purpose or program, without consultation with the Joint Legislative Commission on Governmental Operations, if the overexpenditure of the purpose or program is:
a. Required by a court, Industrial Commission, or administrative hearing officer's order;
b. Required to respond to an unanticipated disaster such as a fire, hurricane, or tornado; or
c. Required to call out the National Guard.
The Director of the Budget shall report on a quarterly basis to the Joint Legislative Commission on Governmental Operations on any overexpenditures under this subdivision; or
(3) A purpose or program, after consultation with the Joint Legislative Commission on Governmental Operations in accordance with G.S. 120‑76(8), and only if: (i) the overexpenditure is required to continue the purpose or programs due to complications or changes in circumstances that could not have been foreseen when the budget for the fiscal period was enacted and (ii) the scope of the purpose or program is not increased. The consultation is required as follows:
a. For a purpose or program with a certified budget of up to five million dollars ($5,000,000), consultation is required when the authorization for the overexpenditure exceeds ten percent (10%) of the certified budget;
b. For a purpose or program with a certified budget of from five million dollars ($5,000,000) up to twenty million dollars ($20,000,000), consultation is required when the authorization for the overexpenditure exceeds five hundred thousand dollars ($500,000) or seven and one‑half percent (7.5%) of the certified budget, whichever is greater;
c. For a purpose or program with a certified budget of twenty million dollars ($20,000,000) or more, consultation is required when the authorization for the overexpenditure exceeds one million five hundred thousand dollars ($1,500,000) or five percent (5%) of the certified budget, whichever is greater;
d. For a purpose or program supported by federal funds or when expenditures are required for the reasons set out in subdivision (2) of this subsection, no consultation is required.
If the Joint Legislative
Commission on Governmental Operations does not meet for more than 30 days, the
Director of the Budget may satisfy the requirements of the subsection to report
to or consult with the Commission by reporting to or consulting with a joint
meeting of the Chairs of the Appropriations Committees of the Senate and the
House of Representatives."
Requested by: Senators Garrou, Dalton, Hagan
consultation not required prior to establishing or increasing fees in accordance with budget act
SECTION 6.8.(a) Notwithstanding G.S. 12‑3.1(a), an agency is not required to consult with the Joint Legislative Commission on Governmental Operations prior to establishing or increasing a fee as authorized or anticipated in the Current Operations and Capital Improvements Appropriations Act of 2005 or the Senate Appropriations Committee Report on the Continuation, Expansion and Capital Budgets, which was distributed in the Senate and the House of Representatives and used to explain this act.
SECTION 6.8.(b) This section expires June 30, 2007.
Requested by: Senators Garrou, Dalton, Hagan
State Money Recipients/Conflict of Interest Policy
SECTION 6.9.(a) G.S. 143‑6.2 is amended by adding a new subsection to read:
"(a1) Every non‑State entity that receives, uses, or expends State funds, either by General Assembly appropriation, or by grant, loan, or other allocation from a State agency shall file with the State department or agency disbursing funds to the entity a copy of that entity's policy addressing conflicts of interest that may arise involving the entity's management employees and the members of its board of directors or other governing body before funds may be disbursed to the entity. The policy shall address situations in which any of these individuals may directly or indirectly benefit, except as the entity's employees or members of the board or other governing body, from the entity's disbursing of State funds, and shall include actions to be taken by the entity or the individual, or both, to avoid conflicts of interest and the appearance of impropriety."
SECTION 6.9.(b) G.S. 143‑6.2(d) is amended by adding a new subdivision to read:
"(13) Require grantees to report their policies addressing conflicts of interest that may arise involving the entity's management employees and the members of its board of directors or other governing body before funds may be disbursed to the entity."
SECTION 6.9.(c) This section applies to non‑State entities that receive State funds on or after July 1, 2005, and State funds shall not be disbursed to those entities on or after July 1, 2005, until the entity files the policy required by this section with the disbursing agency or department.
Requested by: Senators Garrou, Dalton, Hagan
Non‑State Entities Shall Not Have Outstanding Tax Assessments/Applicability of Reporting Requirements
SECTION 6.10.(a) G.S. 143‑6.2 is amended by adding a new subsection to read:
"(c1) No Overdue Tax Debts. – No grantee or subgrantee shall receive a grant of State funds from a State agency, department, or institution if the grantee or subgrantee has any overdue tax debts, as defined by G.S. 105‑243.1, at the federal, State, or local level."
SECTION 6.10.(b) This section shall apply to all State grant funds appropriated or awarded on or after July 1, 2005. Grants awarded prior to July 1, 2005, shall be subject to the reporting requirements in effect at the time the grant was made.
Requested by: Senators Garrou, Dalton, Hagan, Kerr, Hoyle
RESERVE FOR SMALL EMPLOYER HEALTH INSURANCE
SECTION 6.11.(a) It is the intent of the General Assembly to establish Healthy NC, a program to assist small employers in purchasing affordable health insurance coverage for their employees. It is further the intent of the General Assembly that Healthy NC will be modeled after the Healthy NY program operating successfully in that state since 2001. Healthy NC will be designed to encourage small employers with 50 or fewer employees to offer health insurance coverage to their employees and dependents and other qualified individuals. Uninsured sole proprietors and workers whose employers do not provide health insurance may also purchase coverage directly from insurers participating in Healthy NC. Coverage under Healthy NC will be streamlined, yet comprehensive. Benefits available will include inpatient and outpatient hospital services, physician services, maternity care, preventive health services, diagnostic and X‑ray services, and emergency services. Employers may select a benefit package that offers limited prescription drug coverage, or one that does not include coverage for prescription drugs. A feature of Healthy NC that will enable premiums to be set at affordable rates is the availability of stop‑loss coverage to protect insurers from excessive claims. Stop‑loss coverage is an insurance policy or other arrangement whereby stop‑loss funds are used to pay claims or indemnify the health plan insurer for losses incurred under the health plan in excess of specified loss limits for individual claims or for all claims combined. It is anticipated that successes of Healthy NC will be marked by, among other things, affordable premiums and an increase in the number of small employers and their employees that have health care coverage.
SECTION 6.11.(b) There is created in the Office of State Budget and Management a nonreverting Reserve for Healthy NC. Funds appropriated in this act to the Reserve for Healthy NC shall be allocated by the Commissioner of Insurance exclusively for the purpose of reimbursing insurers providing health insurance to small employers under Part 5A of Article 50 of Chapter 58 of the General Statutes, Healthy NC Program, if enacted by the 2005 General Assembly.
SECTION 6.11.(c) Subsection (b) of this section becomes effective only if the 2005 General Assembly enacts the Healthy NC program and appropriates funds to the Reserve for Healthy NC.
Requested by: Senators Garrou, Dalton, Hagan
Amend the Tobacco Reserve Fund to Promote the Health and Wellness of the State's Citizens and Economic Development
SECTION 6.12.(a) G.S. 66‑291(b)(2) reads as rewritten:
"(2) To the extent that a
tobacco product manufacturer establishes that the amount it was required to
place into escrow on account of units sold in the State in a particular
year was greater than the State's allocable share of the total payments that
such manufacturer would have been required to make in that year under the
Master Settlement Agreement (as determined pursuant to section IX(i)(2) of the
Master Settlement Agreement, and before any of the adjustments or offsets
described in section IX(i)(3) of that Agreement other than the Inflation
Adjustment)the Master Settlement Agreement payments, as determined
pursuant to Section IX(i) of that agreement, including after final
determination of all adjustments, that the manufacturer would have been
required to make on account of the units sold had it been a participating
manufacturer, the excess shall be released from escrow and revert back to such
tobacco product manufacturer; or".
SECTION 6.12.(b) If this section, or any portion of the amendment made to G.S. 66‑291(b)(2) by this section, is held by a court of competent jurisdiction to be unconstitutional, then G.S. 66‑291(b)(2) shall be deemed to be repealed in its entirety. If G.S. 66‑291(b)(2) shall thereafter be held by a court of competent jurisdiction to be unconstitutional, then this section shall be repealed, and G.S. 66‑291(b)(2) shall be restored as if no amendments had been made by this section. Neither any judicial holding of unconstitutionality nor the repeal of G.S. 66‑291(b)(2) shall affect, impair, or invalidate any other portion of Part 1 of Article 37 of Chapter 66 of the General Statutes or the application of Part 1 of Article 37 of Chapter 66 of the General Statutes to any other person or circumstance, and the remaining portions of Part 1 of Article 37 of Chapter 66 of the General Statutes shall at all times continue in full force and effect.
SECTION 6.12.(c) This section becomes effective October 1, 2005.
Requested by: Senators Garrou, Dalton, Hagan
stATEWIDE INFORMATION TECHNOLOGY PROJECTS
SECTION 6.13.(a) There is appropriated from the Information Technology Fund established in G.S. 147‑33.72H to the Office of Information Technology Services the sum of five million one hundred thousand dollars ($5,100,000) for the 2005‑2006 fiscal year and the sum of three million three hundred thousand dollars ($3,300,000) for the 2006‑2007 fiscal year to continue existing Information Technology Fund activities including project management assistance, security assessment remedial actions, asset management, related legal support, and legacy system assessment.
SECTION 6.13.(b) There is appropriated from the Information Technology Fund established in G.S. 147‑33.72H to the Office of Information Technology Services the sum of one million six hundred thousand dollars ($1,600,000) for the 2005‑2006 fiscal year and the sum of one million four hundred thousand dollars ($1,400,000) for the 2006‑2007 fiscal year to establish two project management assistant positions and one enterprise licensing position and to purchase and maintain asset management software and enterprise licenses.
SECTION 6.13.(c) There is appropriated from the Information Technology Fund established in G.S. 147‑33.72H to the Office of Information Technology Services the sum of six million three hundred thousand dollars ($6,300,000) for the 2005‑2006 fiscal year and the sum of five million eight hundred thousand dollars ($5,800,000) for the 2006‑2007 fiscal year to provide services previously supported by cross‑subsidies in the information technology rate structure, including: (i) the operation of Enterprise Technology Services within the Office of Information Technology Services, (ii) security services, (iii) State portal maintenance, (iv) enterprise identity management, and (v) the operations of the Office of the State Chief Information Officer.
SECTION 6.13.(d) There is appropriated from the Information Technology Fund established in G.S. 147‑33.72H to the Office of Information Technology Services the sum of five hundred thousand dollars ($500,000) for the 2005‑2006 fiscal year to facilitate consolidation of information technology activities in State agencies.
Requested by: Senators Garrou, Dalton, Hagan
STATE BUSINESS INFRASTRUCTURE PROGRAM
SECTION 6.14.(a) According to a study conducted by the Office of State Controller, the State's personnel and payroll information systems are at risk of failure within five years. This would result in delayed payments to over 80,000 state employees. The current personnel and payroll information systems were designed and supported by agency staff, and staff members familiar with these information systems are near retirement from State government service. Through the State Business Infrastructure Program, the State Controller identified the personnel and payroll information systems as priorities for replacement.
SECTION 6.14.(b) There is appropriated from the Information Technology Fund established in G.S.147‑33.72H to the Office of State Controller the sum of twenty million eight hundred seventy‑five thousand dollars ($20,875,000) for the 2005‑2006 fiscal year and two million five hundred twenty‑five thousand dollars ($2,525,000) for the 2006‑2007 fiscal year to initiate the replacement of the State's personnel and payroll information systems. These funds shall be used to procure software, hardware, integration services, project management, implementation activities, software license maintenance, hardware maintenance, contract support, and Information Technology Services Data Center activities.
SECTION 6.14.(c) Funds appropriated under this section are subject to the reporting requirement set out in G.S. 147‑33.72H.
Requested by: Senators Garrou, Dalton, Hagan
information technology fund
SECTION 6.15.(a) Of the funds collected by the Office of Information Technology Services from the information technology enterprise fee approved by the Office of State Budget and Management pursuant to G.S. 147‑33.82, the Office shall deposit the sum of five million dollars ($5,000,000) for the 2005‑2006 fiscal year and for the 2006‑2007 fiscal year in the Information Technology Fund established in G.S. 147‑33.72H.
SECTION 6.15.(b) Effective July 1, 2005, the State Controller shall transfer to the Information Technology Fund established in G.S. 147‑33.72H the sum of five million dollars ($5,000,000) from the cash balance remaining in the Office of Information Technology Services Internal Service Fund on June 30, 2005. These funds shall be used to support statewide information technology initiatives.
PART vII. PUBLIC SCHOOLS
Requested by: Senator Lucas, Swindell, Garrou, Dalton, Hagan
SECTION 7.1.(a) Effective for the 2005‑2006 school year and for the 2006‑2007 school year, the Director of the Budget shall transfer from the Reserve for Experience Step Salary Increase for Teachers and Principals in Public Schools funds necessary to implement the teacher salary schedules set out in subsection (b) of this section and for longevity in accordance with subsection (d) of this section, including funds for the employer's retirement and social security contributions for all teachers whose salaries are supported from the State's General Fund.
These funds shall be allocated to individuals according to rules adopted by the State Board of Education.
SECTION 7.1.(b) The following monthly salary schedules shall apply for the 2005‑2006 and the 2006‑2007 fiscal years to certified personnel of the public schools who are classified as teachers. The schedule contains 30 steps with each step corresponding to one year of teaching experience.
2005‑2006 Monthly Salary Schedule
"A" Teachers
Years of Experience "A" Teachers NBPTS Certification
0 $2,545 N/A
1 $2,587 N/A
2 $2,631 N/A
3 $2,786 $3,120
4 $2,926 $3,278
5 $3,059 $3,427
6 $3,189 $3,571
7 $3,292 $3,687
8 $3,340 $3,740
9 $3,389 $3,795
10 $3,439 $3,851
11 $3,488 $3,906
12 $3,539 $3,963
13 $3,589 $4,019
14 $3,642 $4,079
15 $3,696 $4,140
16 $3,751 $4,202
17 $3,806 $4,263
18 $3,864 $4,328
19 $3,922 $4,393
20 $3,980 $4,458
21 $4,042 $4,528
22 $4,104 $4,596
23 $4,169 $4,669
24 $4,233 $4,740
25 $4,298 $4,813
26 $4,364 $4,887
27 $4,432 $4,963
28 $4,502 $5,043
29 $4,573 $5,122
2005‑2006 Monthly Salary Schedule
"M" Teachers
Years of Experience "M" Teachers NBPTS Certification
0 $2,800 N/A
1 $2,846 N/A
2 $2,894 N/A
3 $3,063 $3,431
4 $3,219 $3,605
5 $3,366 $3,769
6 $3,507 $3,927
7 $3,621 $4,055
8 $3,673 $4,114
9 $3,727 $4,175
10 $3,782 $4,236
11 $3,837 $4,298
12 $3,892 $4,360
13 $3,947 $4,421
14 $4,006 $4,487
15 $4,065 $4,553
16 $4,126 $4,621
17 $4,188 $4,690
18 $4,250 $4,759
19 $4,315 $4,832
20 $4,379 $4,904
21 $4,447 $4,980
22 $4,514 $5,056
23 $4,585 $5,136
24 $4,656 $5,215
25 $4,726 $5,288
26 $4,795 $5,376
27 $4,875 $5,460
28 $4,952 $5,547
29 $5,031 $5,634
2006‑2007 Monthly Salary Schedule
"A" Teachers
Years of Experience "A" Teachers NBPTS Certification
0 $2,574 N/A
1 $2,617 N/A
2 $2,661 N/A
3 $2,818 $3,156
4 $2,960 $3,315
5 $3,095 $3,466
6 $3,225 $3,612
7 $3,329 $3,729
8 $3,378 $3,783
9 $3,428 $3,839
10 $3,478 $3,896
11 $3,528 $3,951
12 $3,580 $4,009
13 $3,630 $4,066
14 $3,684 $4,126
15 $3,739 $4,187
16 $3,794 $4,250
17 $3,850 $4,312
18 $3,909 $4,378
19 $3,967 $4,443
20 $4,026 $4,509
21 $4,089 $4,580
22 $4,151 $4,649
23 $4,217 $4,723
24 $4,281 $4,795
25 $4,347 $4,869
26 $4,414 $4,944
27 $4,483 $5,021
28 $4,554 $5,101
29 $4,626 $5,181
2006‑2007 Monthly Salary Schedule
"M" Teachers
Years of Experience "M" Teachers NBPTS Certification
0 $2,832 N/A
1 $2,879 N/A
2 $2,927 N/A
3 $3,099 $3,470
4 $3,256 $3,646
5 $3,404 $3,812
6 $3,547 $3,972
7 $3,663 $4,102
8 $3,715 $4,161
9 $3,770 $4,223
10 $3,826 $4,284
11 $3,881 $4,347
12 $3,937 $4,410
13 $3,993 $4,472
14 $4,052 $4,539
15 $4,112 $4,605
16 $4,173 $4,674
17 $4,236 $4,744
18 $4,299 $4,814
19 $4,364 $4,888
20 $4,429 $4,961
21 $4,498 $5,038
22 $4,566 $5,114
23 $4,638 $5,195
24 $4,710 $5,275
25 $4,781 $5,355
26 $4,855 $5,438
27 $4,931 $5,523
28 $5,009 $5,611
29 $5,088 $5,699
SECTION 7.1.(c) Annual longevity payments for teachers shall be at the rate of one and one‑half percent (1.5%) of base salary for 10 to 14 years of State service, two and twenty‑five hundredths percent (2.25%) of base salary for 15 to 19 years of State service, three and twenty‑five hundredths percent (3.25%) of base salary for 20 to 24 years of State service, and four and one‑half percent (4.5%) of base salary for 25 or more years of State service. The longevity payment shall be paid in a lump sum once a year.
SECTION 7.1.(d) Certified public schoolteachers with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers. Certified public schoolteachers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for certified personnel of the public schools who are classified as "M" teachers.
SECTION 7.1.(e) The first step of the salary schedule for school psychologists shall be equivalent to Step 5, corresponding to five years of experience, on the salary schedule established in this section for certified personnel of the public schools who are classified as "M" teachers. Certified psychologists shall be placed on the salary schedule at an appropriate step based on their years of experience. Certified psychologists shall receive longevity payments based on years of State service in the same manner as teachers.
Certified psychologists with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for certified psychologists. Certified psychologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for certified psychologists.
SECTION 7.1.(f) Speech pathologists who are certified as speech pathologists at the masters degree level and audiologists who are certified as audiologists at the masters degree level and who are employed in the public schools as speech and language specialists and audiologists shall be paid on the school psychologist salary schedule.
Speech pathologists and audiologists with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided for speech pathologists and audiologists. Speech pathologists and audiologists with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for speech pathologists and audiologists.
SECTION 7.1.(g) Certified school nurses who are employed in the public schools as nurses shall be paid on the "M" salary schedule.
SECTION 7.1.(h) As used in this section, the term "teacher" shall also include instructional support personnel.
Requested by: Senator Lucas, Swindell, Garrou, Dalton, Hagan
SCHOOL‑BASED ADMINISTRATOR SALARY SCHEDULE
SECTION 7.2.(a) Effective for the 2005‑2006 school year and for the 2006‑2007 school year, the Director of the Budget shall transfer from the Reserve for Compensation Increases funds necessary to implement the salary schedules for school‑based administrators as provided in this section. These funds shall be used for State‑paid employees only.
SECTION 7.2.(b) The base salary schedule for school‑based administrators shall apply only to principals and assistant principals. The base salary schedule for the 2005‑2006 fiscal year, commencing July 1, 2005, is as follows:
2005‑2006
Principal and Assistant Principal Salary Schedules
Classification
Yrs. of Assistant Prin I Prin II Prin III Prin IV
Exp Principal (0‑10) (11‑21) (22‑32) (33‑43)
0‑4 $3,256 ‑ ‑ ‑
5 $3,404 ‑ ‑ ‑ ‑
6 $3,547 ‑ ‑ ‑ ‑
7 $3,662 ‑ ‑ ‑ ‑
8 $3,715 $3,715 ‑ ‑ ‑
9 $3,769 $3,769 ‑ ‑ ‑
10 $3,825 $3,825 $3,880 ‑ ‑
11 $3,880 $3,880 $3,936 ‑ ‑
12 $3,936 $3,936 $3,993 $4,052 ‑
13 $3,993 $3,993 $4,052 $4,111 $4,173
14 $4,052 $4,052 $4,111 $4,173 $4,235
15 $4,111 $4,111 $4,173 $4,235 $4,298
16 $4,173 $4,173 $4,235 $4,298 $4,363
17 $4,235 $4,235 $4,298 $4,363 $4,428
18 $4,298 $4,298 $4,363 $4,428 $4,497
19 $4,363 $4,363 $4,428 $4,497 $4,565
20 $4,428 $4,428 $4,497 $4,565 $4,638
21 $4,497 $4,497 $4,565 $4,638 $4,708
22 $4,565 $4,565 $4,638 $4,708 $4,780
23 $4,638 $4,638 $4,708 $4,780 $4,855
24 $4,708 $4,708 $4,780 $4,855 $4,931
25 $4,780 $4,780 $4,855 $4,931 $5,008
26 $4,855 $4,855 $4,931 $5,008 $5,088
27 $4,931 $4,931 $5,008 $5,088 $5,189
28 $5,008 $5,008 $5,088 $5,189 $5,294
29 $5,088 $5,088 $5,189 $5,294 $5,400
30 $5,189 $5,189 $5,294 $5,400 $5,508
31 $5,294 $5,294 $5,400 $5,508 $5,617
32 ‑ $5,400 $5,508 $5,617 $5,730
33 ‑ ‑ $5,617 $5,730 $5,845
34 ‑ ‑ $5,730 $5,845 $5,962
35 ‑ ‑ ‑ $5,962 $6,081
36 ‑ ‑ ‑ $6,081 $6,203
37 ‑ ‑ ‑ ‑ $6,327
2005‑2006
Principal and Assistant Principal Salary Schedules
Classification
Yrs. of PrinV PrinVI PrinVII PrinVIII
Exp (44‑54) (55‑65) (66‑100) (101+)
14 $4,298 ‑ ‑ ‑
15 $4,363 ‑ ‑ ‑
16 $4,428 $4,497 ‑ ‑
17 $4,497 $4,565 $4,708 ‑
18 $4,565 $4,638 $4,780 $4,855
19 $4,638 $4,708 $4,855 $4,931
20 $4,708 $4,780 $4,931 $5,008
21 $4,780 $4,855 $5,008 $5,088
22 $4,855 $4,931 $5,088 $5,189
23 $4,931 $5,008 $5,189 $5,294
24 $5,008 $5,088 $5,294 $5,400
25 $5,088 $5,189 $5,400 $5,508
26 $5,189 $5,294 $5,508 $5,617
27 $5,294 $5,400 $5,617 $5,730
28 $5,400 $5,508 $5,730 $5,845
29 $5,508 $5,617 $5,845 $5,962
30 $5,617 $5,730 $5,962 $6,081
31 $5,730 $5,845 $6,081 $6,203
32 $5,845 $5,962 $6,203 $6,327
33 $5,962 $6,081 $6,327 $6,453
34 $6,081 $6,203 $6,453 $6,583
35 $6,203 $6,327 $6,583 $6,714
36 $6,327 $6,453 $6,714 $6,847
37 $6,453 $6,583 $6,847 $6,985
38 $6,583 $6,714 $6,985 $7,124
39 ‑ $6,847 $7,124 $7,266
40 ‑ $6,985 $7,266 $7,412
41 ‑ ‑ $7,412 $7,560
SECTION 7.2.(c) The base salary schedule for school‑based administrators shall apply only to principals and assistant principals. The base salary schedule for the 2006‑2007 fiscal year, commencing July 1, 2006, is as follows:
2006‑2007
Principal and Assistant Principal Salary Schedules
Classification
Yrs. of Assistant Prin I Prin II Prin III Prin IV
Exp Principal (0‑10) (11‑21) (22‑32) (33‑43)
0‑4 $3,297 ‑ ‑ ‑ ‑
5 $3,448 ‑ ‑ ‑ ‑
6 $3,593 ‑ ‑ ‑ ‑
7 $3,709 ‑ ‑ ‑ ‑
8 $3,762 $3,762 ‑ ‑ ‑
9 $3,817 $3,817 ‑ ‑ ‑
10 $3,874 $3,874 $3,930 ‑ ‑
11 $3,930 $3,930 $3,987 ‑ ‑
12 $3,987 $3,987 $4,044 $4,104 ‑
13 $4,044 $4,044 $4,104 $4,163 $4,226
14 $4,104 $4,104 $4,163 $4,226 $4,289
15 $4,163 $4,163 $4,226 $4,289 $4,353
16 $4,226 $4,226 $4,289 $4,353 $4,419
17 $4,289 $4,289 $4,353 $4,419 $4,484
18 $4,353 $4,353 $4,419 $4,484 $4,554
19 $4,419 $4,419 $4,484 $4,554 $4,623
20 $4,484 $4,484 $4,554 $4,623 $4,697
21 $4,554 $4,554 $4,623 $4,697 $4,769
22 $4,623 $4,623 $4,697 $4,769 $4,842
23 $4,697 $4,697 $4,769 $4,842 $4,917
24 $4,769 $4,769 $4,842 $4,917 $4,994
25 $4,842 $4,842 $4,917 $4,994 $5,072
26 $4,917 $4,917 $4,994 $5,072 $5,153
27 $4,994 $4,994 $5,072 $5,153 $5,256
28 $5,072 $5,072 $5,153 $5,256 $5,361
29 $5,153 $5,153 $5,256 $5,361 $5,469
30 $5,256 $5,256 $5,361 $5,469 $5,579
31 $5,361 $5,361 $5,469 $5,579 $5,689
32 ‑ $5,469 $5,579 $5,689 $5,803
33 ‑ ‑ $5,689 $5,803 $5,920
34 ‑ ‑ $5,803 $5,920 $6,039
35 ‑ ‑ ‑ $6,039 $6,158
36 ‑ ‑ ‑ $6,158 $6,282
37 ‑ ‑ ‑ ‑ $6,408
2006‑2007
Principal and Assistant Principal Salary Schedules
Classification
Yrs. of PrinV PrinVI PrinVII PrinVIII
Exp (44‑54) (55‑65) (66‑100) (101+)
14 $4,353 ‑ ‑ ‑
15 $4,419 ‑ ‑ ‑
16 $4,484 $4,554 ‑ ‑
17 $4,554 $4,623 $4,769 ‑
18 $4,623 $4,697 $4,842 $4,917
19 $4,697 $4,769 $4,917 $4,994
20 $4,769 $4,842 $4,994 $5,072
21 $4,842 $4,917 $5,072 $5,153
22 $4,917 $4,994 $5,153 $5,256
23 $4,994 $5,072 $5,256 $5,361
24 $5,072 $5,153 $5,361 $5,469
25 $5,153 $5,256 $5,469 $5,579
26 $5,256 $5,361 $5,579 $5,689
27 $5,361 $5,469 $5,689 $5,803
28 $5,469 $5,579 $5,803 $5,920
29 $5,579 $5,689 $5,920 $6,039
30 $5,689 $5,803 $6,039 $6,158
31 $5,803 $5,920 $6,158 $6,282
32 $5,920 $6,039 $6,282 $6,408
33 $6,039 $6,158 $6,408 $6,536
34 $6,158 $6,282 $6,536 $6,667
35 $6,282 $6,408 $6,667 $6,800
36 $6,408 $6,536 $6,800 $6,935
37 $6,536 $6,667 $6,935 $7,074
38 $6,667 $6,800 $7,074 $7,215
39 $6,935 $7,215 $7,359
40 $7,074 $7,359 $7,507
SECTION 7.2.(d) The appropriate classification for placement of principals and assistant principals on the salary schedule, except for principals in alternative schools and in cooperative innovative high schools, shall be determined in accordance with the following schedule:
Number of Teachers
Classification Supervised
Assistant Principal
Principal I Fewer than 11 Teachers
Principal II 11‑21 Teachers
Principal III 22‑32 Teachers
Principal IV 33‑43 Teachers
Principal V 44‑54 Teachers
Principal VI 55‑65 Teachers
Principal VII 66‑100 Teachers
Principal VIII More than 100 Teachers
The number of teachers supervised includes teachers and assistant principals paid from State funds only; it does not include teachers or assistant principals paid from non‑State funds or the principal or teacher assistants.
The beginning classification for principals in alternative schools and in cooperative innovative high school programs shall be the Principal III level. Principals in alternative schools who supervise 33 or more teachers shall be classified according to the number of teachers supervised.
SECTION 7.2.(e) A principal shall be placed on the step on the salary schedule that reflects total number of years of experience as a certificated employee of the public schools and an additional step for every three years of experience as a principal. A principal or assistant principal shall also continue to receive any additional State‑funded percentage increases earned for the 1997‑1998, 1998‑1999, and 1999‑2000 school years for improvement in student performance or maintaining a safe and orderly school.
SECTION 7.2.(f) Principals and assistant principals with certification based on academic preparation at the six‑year degree level shall be paid a salary supplement of one hundred twenty‑six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary supplement of two hundred fifty‑three dollars ($253.00) per month.
SECTION 7.2.(g) Longevity pay for principals and assistant principals shall be as provided for State employees under the State Personnel Act.
SECTION 7.2.(h) If a principal is reassigned to a higher job classification because the principal is transferred to a school within a local school administrative unit with a larger number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the higher job classification.
If a principal is reassigned to a lower job classification because the principal is transferred to a school within a local school administrative unit with a smaller number of State‑allotted teachers, the principal shall be placed on the salary schedule as if the principal had served the principal's entire career as a principal at the lower job classification.
This subsection applies to all transfers on or after the effective date of this section, except transfers in school systems that have been created, or will be created, by merging two or more school systems. Transfers in these merged systems are exempt from the provisions of this subsection for one calendar year following the date of the merger.
SECTION 7.2.(i) Participants in an approved full‑time masters in school administration program shall receive up to a 10‑month stipend at the beginning salary of an assistant principal during the internship period of the masters program. For the 2005‑2006 fiscal year and subsequent fiscal years, the stipend shall not exceed the difference between the beginning salary of an assistant principal and any fellowship funds received by the intern as a full‑time student, including awards of the Principal Fellows Program. The Principal Fellows Program or the school of education where the intern participates in a full‑time masters in school administration program shall supply the Department of Public Instruction with certification of eligible full‑time interns.
SECTION 7.2.(j) During the 2005‑2006 fiscal year and the 2006‑2007 fiscal year, the placement on the salary schedule of an administrator with a one‑year provisional assistant principal's certificate shall be at the entry‑level salary for an assistant principal or the appropriate step on the teacher salary schedule, whichever is higher.
Requested by: Senator Lucas, Swindell, Garrou, Dalton, Hagan
SECTION 7.3.(a) The monthly salary ranges that follow apply to assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 2005‑2006 fiscal year, beginning July 1, 2005.
School Administrator I $2,932 $5,506
School Administrator II $3,112 $5,840
School Administrator III $3,303 $6,195
School Administrator IV $3,436 $6,442
School Administrator V $3,574 $6,702
School Administrator VI $3,792 $7,108
School Administrator VII $3,945 $7,394
The monthly salary ranges that follow apply to assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 2006‑2007 fiscal year, beginning July 1, 2006.
School Administrator I $2,932 $5,671
School Administrator II $3,112 $6,015
School Administrator III $3,303 $6,380
School Administrator IV $3,436 $6,636
School Administrator V $3,574 $6,903
School Administrator VI $3,792 $7,322
School Administrator VII $3,945 $7,616
The local board of education shall determine the appropriate category and placement for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or finance officer within the salary ranges and within funds appropriated by the General Assembly for central office administrators and superintendents. The category in which an employee is placed shall be included in the contract of any employee.
SECTION 7.3.(b) The monthly salary ranges that follow apply to public school superintendents for the 2005‑2006 fiscal year, beginning July 1, 2005.
Superintendent I $4,187 $7,844
Superintendent II $4,445 $8,318
Superintendent III $4,716 $8,825
Superintendent IV $5,005 $9,360
Superintendent V $5,312 $9,931
The monthly salary ranges that follow apply to public school superintendents for the 2006‑2007 fiscal year, beginning July 1, 2006.
Superintendent I $4,187 $8,080
Superintendent II $4,445 $8,568
Superintendent III $4,716 $9,090
Superintendent IV $5,005 $9,641
Superintendent V $5,312 $10,229
The local board of education shall determine the appropriate category and placement for the superintendent based on the average daily membership of the local school administrative unit and within funds appropriated by the General Assembly for central office administrators and superintendents.
SECTION 7.3.(c) Longevity pay for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers shall be as provided for State employees under the State Personnel Act.
SECTION 7.3.(d) Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided pursuant to this section. Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for under this section.
SECTION 7.3.(e) The State Board of Education shall not permit local school administrative units to transfer State funds from other funding categories for salaries for public school central office administrators.
SECTION 7.3.(f) The annual salary increase for all permanent full‑time personnel paid from the Central Office Allotment who work a nine‑, 10‑, 11‑, or 12‑month work year schedule shall be the greater of five hundred dollars ($500.00) or two percent (2%), commencing July 1, 2005. The annual salary increase for all permanent full‑time personnel paid from the Central Office Allotment who work a nine‑, 10‑, 11‑, or 12‑month work year schedule shall be the three percent (3%), commencing July 1, 2006. The State Board of Education shall allocate these funds to local school administrative units. The local boards of education shall establish guidelines for providing salary increases to these personnel.
Requested by: Senator Lucas, Swindell, Garrou, Dalton, Hagan
SECTION 7.4.(a) The annual salary increase for permanent, full‑time noncertified public school employees whose salaries are supported from the State's General Fund shall be the greater of five hundred dollars ($500.00) or two percent (2%), commencing July 1, 2005.
The annual salary increase for permanent, full‑time noncertified public school employees whose salaries are supported from the State's General Fund shall be three percent (3%), commencing July 1, 2006.
SECTION 7.4.(b) Local boards of education shall increase the rates of pay for such employees who were employed for all or part of fiscal year 2004‑2005 and who continue their employment for fiscal year 2005‑2006 by providing an annual salary increase for employees of the greater of five hundred dollars ($500.00) or two percent (2%).
Local boards of education shall increase the rates of pay for such employees who were employed for all or part of fiscal year 2005‑2006 and who continue their employment for fiscal year 2006‑2007 by providing an annual salary increase for employees of three percent (3%).
For part‑time employees, the pay increase shall be pro rata based on the number of hours worked.
SECTION 7.4.(c) The State Board of Education may adopt salary ranges for noncertified personnel to support increases of the greater of five hundred dollars ($500.00) or two percent (2%) for the 2005‑2006 fiscal year.
The State Board of Education may adopt salary ranges for noncertified personnel to support increases of three percent (3%) for the 2006‑2007 fiscal year.
SECTION 7.4.(d) For the 2005‑2006 fiscal year, permanent full‑time employees who work a nine‑, 10‑, or 11‑month work year schedule shall receive the five hundred dollars ($500.00) or the two percent (2%) annual increase provided by this act, whichever is greater.
For the 2006‑2007 fiscal year, permanent full‑time employees who work a nine‑, 10‑, or 11‑month work year schedule shall receive the three percent (3%) annual increase provided by this act.
Requested by: Senator Lucas, Swindell, Garrou, Dalton, Hagan
bonus for certified personnel at the top of their salary schedules
SECTION 7.5. Effective July 1, 2005, any permanent certified personnel employed on July 1, 2003, and paid on the teacher salary schedule with 29+ years of experience shall receive a one‑time bonus equivalent to the average increase of the 26 to 29 year steps. Effective July 1, 2005, any permanent personnel employed on July 1, 2004, and paid at the top of the principal and assistant principal salary schedule shall receive a one‑time bonus equivalent to two percent (2%).
Effective July 1, 2006, any permanent certified personnel employed on July 1, 2003, and paid on the teacher salary schedule with 29+ years of experience shall receive a one‑time bonus equivalent to the average increase of the 26 to 29 year steps. Effective July 1, 2006, any permanent personnel employed on July 1, 2005, and paid at the top of the principal and assistant principal salary schedule shall receive a one‑time bonus equivalent to two percent (2%).
For permanent part‑time personnel, the one‑time bonus shall be adjusted pro rata. Personnel defined under G.S. 115C‑325(a)(5a) are not eligible to receive the bonus.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
SUPPLEMENTAL FUNDING IN LOW‑WEALTH COUNTIES
SECTION 7.6.(a) Funds for Supplemental Funding. – The General Assembly finds that it is appropriate to provide supplemental funds in low‑wealth counties to allow those counties to enhance the instructional program and student achievement. Therefore, funds are appropriated to State Aid to Local School Administrative Units for the 2005‑2006 fiscal year and the 2006‑2007 fiscal year to be used for supplemental funds for the schools.
SECTION 7.6.(b) Use of Funds for Supplemental Funding. – All funds received pursuant to this section shall be used only: (i) to provide instructional positions, instructional support positions, teacher assistant positions, clerical positions, school computer technicians, instructional supplies and equipment, staff development, and textbooks; (ii) for salary supplements for instructional personnel and instructional support personnel; and (iii) to pay an amount not to exceed ten thousand dollars ($10,000) of the plant operation contract cost charged by the Department of Public Instruction for services.
Local boards of education are encouraged to use at least twenty‑five percent (25%) of the funds received pursuant to this section to improve the academic performance of children who are performing at Level I or II on either reading or mathematics end‑of‑grade tests in grades 3‑8 and children who are performing at Level I or II on the writing tests in grades 4 and 7. Local boards of education shall report to the State Board of Education on an annual basis on funds used for this purpose, and the State Board shall report this information to the Joint Legislative Education Oversight Committee. These reports shall specify how these funds were targeted and used to implement specific improvement strategies of each local school administrative unit and its schools, such as teacher recruitment, closing the achievement gap, improving student accountability, addressing the needs of at‑risk students, and establishing and maintaining safe schools.
SECTION 7.6.(c) Definitions. – As used in this section:
(1) "Anticipated county property tax revenue availability" means the county‑adjusted property tax base multiplied by the effective State average tax rate.
(2) "Anticipated total county revenue availability" means the sum of the:
a. Anticipated county property tax revenue availability,
b. Local sales and use taxes received by the county that are levied under Chapter 1096 of the 1967 Session Laws or under Subchapter VIII of Chapter 105 of the General Statutes,
c. Sales tax hold harmless reimbursement received by the county under G.S. 105‑521, and
d. Fines and forfeitures deposited in the county school fund for the most recent year for which data are available.
(3) "Anticipated total county revenue availability per student" means the anticipated total county revenue availability for the county divided by the average daily membership of the county.
(4) "Anticipated State average revenue availability per student" means the sum of all anticipated total county revenue availability divided by the average daily membership for the State.
(5) "Average daily membership" means average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual, adopted by the State Board of Education. If a county contains only part of a local school administrative unit, the average daily membership of that county includes all students who reside within the county and attend that local school administrative unit.
(6) "County‑adjusted property tax base" shall be computed as follows:
a. Subtract the present‑use value of agricultural land, horticultural land, and forestland in the county, as defined in G.S. 105‑277.2, from the total assessed real property valuation of the county,
b. Adjust the resulting amount by multiplying by a weighted average of the three most recent annual sales assessment ratio studies,
c. Add to the resulting amount the:
1. Present‑use value of agricultural land, horticultural land, and forestland, as defined in G.S. 105‑277.2,
2. Value of property of public service companies, determined in accordance with Article 23 of Chapter 105 of the General Statutes, and
3. Personal property value for the county.
(7) "County‑adjusted property tax base per square mile" means the county‑adjusted property tax base divided by the number of square miles of land area in the county.
(8) "County wealth as a percentage of State average wealth" shall be computed as follows:
a. Compute the percentage that the county per capita income is of the State per capita income and weight the resulting percentage by a factor of five‑tenths,
b. Compute the percentage that the anticipated total county revenue availability per student is of the anticipated State average revenue availability per student and weight the resulting percentage by a factor of four‑tenths,
c. Compute the percentage that the county‑adjusted property tax base per square mile is of the State‑adjusted property tax base per square mile and weight the resulting percentage by a factor of one‑tenth,
d. Add the three weighted percentages to derive the county wealth as a percentage of the State average wealth.
(9) "Effective county tax rate" means the actual county tax rate multiplied by a weighted average of the three most recent annual sales assessment ratio studies.
(10) "Effective State average tax rate" means the average of effective county tax rates for all counties.
(10a) "Local current expense funds" means the most recent county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C‑447.
(11) "Per capita income" means the average for the most recent three years for which data are available of the per capita income according to the most recent report of the United States Department of Commerce, Bureau of Economic Analysis, including any reported modifications for prior years as outlined in the most recent report.
(12) "Sales assessment ratio studies" means sales assessment ratio studies performed by the Department of Revenue under G.S. 105‑289(h).
(13) "State average current expense appropriations per student" means the most recent State total of county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C‑447.
(14) "State average adjusted property tax base per square mile" means the sum of the county‑adjusted property tax bases for all counties divided by the number of square miles of land area in the State.
(14a) "Supplant" means to decrease local per student current expense appropriations from one fiscal year to the next fiscal year.
(15) "Weighted average of the three most recent annual sales assessment ratio studies" means the weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available. If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used. If property has been revalued the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used.
SECTION 7.6.(d) Eligibility for Funds. – Except as provided in subsection (h) of this section, the State Board of Education shall allocate these funds to local school administrative units located in whole or in part in counties in which the county wealth as a percentage of the State average wealth is less than one hundred percent (100%).
SECTION 7.6.(e) Allocation of Funds. – Except as provided in subsection (g) of this section, the amount received per average daily membership for a county shall be the difference between the State average current expense appropriations per student and the current expense appropriations per student that the county could provide given the county's wealth and an average effort to fund public schools. (To derive the current expense appropriations per student that the county could be able to provide given the county's wealth and an average effort to fund public schools, multiply the county wealth as a percentage of State average wealth by the State average current expense appropriations per student.)
The funds for the local school administrative units located in whole or in part in the county shall be allocated to each local school administrative unit located in whole or in part in the county based on the average daily membership of the county's students in the school units.
If the funds appropriated for supplemental funding are not adequate to fund the formula fully, each local school administrative unit shall receive a pro rata share of the funds appropriated for supplemental funding.
SECTION 7.6.(f) Formula for Distribution of Supplemental Funding Pursuant to This Section Only. – The formula in this section is solely a basis for distribution of supplemental funding for low‑wealth counties and is not intended to reflect any measure of the adequacy of the educational program or funding for public schools. The formula is also not intended to reflect any commitment by the General Assembly to appropriate any additional supplemental funds for low‑wealth counties.
SECTION 7.6.(g) Minimum Effort Required. – Counties that had effective tax rates in the 1996‑1997 fiscal year that were above the State average effective tax rate but that had effective rates below the State average in the 1997‑1998 fiscal year or thereafter shall receive reduced funding under this section. This reduction in funding shall be determined by subtracting the amount that the county would have received pursuant to Section 17.1(g) of Chapter 507 of the 1995 Session Laws from the amount that the county would have received if qualified for full funding and multiplying the difference by ten percent (10%). This method of calculating reduced funding shall apply one time only.
This method of calculating reduced funding shall not apply in cases in which the effective tax rate fell below the statewide average effective tax rate as a result of a reduction in the actual property tax rate. In these cases, the minimum effort required shall be calculated in accordance with Section 17.1(g) of Chapter 507 of the 1995 Session Laws.
If the county documents that it has increased the per student appropriation to the school current expense fund in the current fiscal year, the State Board of Education shall include this additional per pupil appropriation when calculating minimum effort pursuant to Section 17.1(g) of Chapter 507 of the 1995 Session Laws.
SECTION 7.6.(h) Nonsupplant Requirement. – A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. For the 2005‑2007 fiscal biennium, the State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds. The State Board of Education shall make a finding that a county has used these funds to supplant local current expense funds in the prior year, or the year for which the most recent data are available, if:
(1) The current expense appropriation per student of the county for the current year is less than ninety‑five percent (95%) of the average of the local current expense appropriations per student for the three prior fiscal years; and
(2) The county cannot show: (i) that it has remedied the deficiency in funding or (ii) that extraordinary circumstances caused the county to supplant local current expense funds with funds allocated under this section.
The State Board of Education shall adopt rules to implement this section.
SECTION 7.6.(i) Reports. – The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to May 1, 2006, if it determines that counties have supplanted funds.
SECTION 7.6.(j) Department of Revenue Reports. – The Department of Revenue shall provide to the Department of Public Instruction a preliminary report for the current fiscal year of the assessed value of the property tax base for each county prior to March 1 of each year and a final report prior to May 1 of each year. The reports shall include for each county the annual sales assessment ratio and the taxable values of (i) total real property, (ii) the portion of total real property represented by the present‑use value of agricultural land, horticultural land, and forestland as defined in G.S. 105‑277.2, (iii) property of public service companies determined in accordance with Article 23 of Chapter 105 of the General Statutes, and (iv) personal property.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING
SECTION 7.7.(a) Funds for Small School Systems. – Except as provided in subsection (b) of this section, the State Board of Education shall allocate funds appropriated for small school system supplemental funding (i) to each county school administrative unit with an average daily membership of fewer than 3,175 students and (ii) to each county school administrative unit with an average daily membership from 3,175 to 4,000 students if the county in which the local school administrative unit is located has a county‑adjusted property tax base per student that is below the State‑adjusted property tax base per student and if the total average daily membership of all local school administrative units located within the county is from 3,175 to 4,000 students. The allocation formula shall:
(1) Round all fractions of positions to the next whole position.
(2) Provide five and one‑half additional regular classroom teachers in counties in which the average daily membership per square mile is greater than four, and seven additional regular classroom teachers in counties in which the average daily membership per square mile is four or fewer.
(3) Provide additional program enhancement teachers adequate to offer the standard course of study.
(4) Change the duty‑free period allocation to one teacher assistant per 400 average daily membership.
(5) Provide a base for the consolidated funds allotment of at least seven hundred forty thousand seventy‑four dollars ($740,074), excluding textbooks for the 2005‑2006 fiscal year and a base of seven hundred forty thousand seventy‑four dollars ($740,074) for the 2006‑2007 fiscal year.
(6) Allot vocational education funds for grade 6 as well as for grades 7‑12.
If funds appropriated for each fiscal year for small school system supplemental funding are not adequate to fully fund the program, the State Board of Education shall reduce the amount allocated to each county school administrative unit on a pro rata basis. This formula is solely a basis for distribution of supplemental funding for certain county school administrative units and is not intended to reflect any measure of the adequacy of the educational program or funding for public schools. The formula is also not intended to reflect any commitment by the General Assembly to appropriate any additional supplemental funds for such county administrative units.
SECTION 7.7.(b) Nonsupplant Requirement. – A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. For the 2005‑2007 fiscal biennium, the State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds. The State Board of Education shall make a finding that a county has used these funds to supplant local current expense funds in the prior year, or the year for which the most recent data are available, if:
(1) The current expense appropriation per student of the county for the current year is less than ninety‑five percent (95%) of the average of the local current expense appropriations per student for the three prior fiscal years; and
(2) The county cannot show: (i) that it has remedied the deficiency in funding or (ii) that extraordinary circumstances caused the county to supplant local current expense funds with funds allocated under this section.
The State Board of Education shall adopt rules to implement this section.
SECTION 7.7.(c) Phase‑Out Provisions. – If a local school administrative unit becomes ineligible for funding under this formula solely because of an increase in the county‑adjusted property tax base per student of the county in which the local school administrative unit is located, funding for that unit shall be phased out over a two‑year period. For the first year of ineligibility, the unit shall receive the same amount it received for the prior fiscal year. For the second year of ineligibility, it shall receive one‑half of that amount.
If a local school administrative unit becomes ineligible for funding under this formula solely because of an increase in the population of the county in which the local school administrative unit is located, funding for that unit shall be continued for five years after the unit becomes ineligible.
SECTION 7.7.(d) Definitions. – As used in this section:
(1) "Average daily membership" means within two percent (2%) of the average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual adopted by the State Board of Education.
(2) "County‑adjusted property tax base per student" means the total assessed property valuation for each county, adjusted using a weighted average of the three most recent annual sales assessment ratio studies, divided by the total number of students in average daily membership who reside within the county.
(2a) "Local current expense funds" means the most recent county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C‑447.
(3) "Sales assessment ratio studies" means sales assessment ratio studies performed by the Department of Revenue under G.S. 105‑289(h).
(4) "State‑adjusted property tax base per student" means the sum of all county‑adjusted property tax bases divided by the total number of students in average daily membership who reside within the State.
(4a) "Supplant" means to decrease local per student current expense appropriations from one fiscal year to the next fiscal year.
(5) "Weighted average of the three most recent annual sales assessment ratio studies" means the weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available. If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used. If property has been revalued during the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used.
SECTION 7.7.(e) Reports. – The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to May 1, 2006, if it determines that counties have supplanted funds.
SECTION 7.7.(f) Use of Funds. – Local boards of education are encouraged to use at least twenty percent (20%) of the funds they receive pursuant to this section to improve the academic performance of children who are performing at Level I or II on either reading or mathematics end‑of‑grade tests in grades 3‑8 and children who are performing at Level I or II on the writing tests in grades 4 and 7. Local boards of education shall report to the State Board of Education on an annual basis on funds used for this purpose, and the State Board shall report this information to the Joint Legislative Education Oversight Committee. These reports shall specify how these funds were targeted and used to implement specific improvement strategies of each local school administrative unit and its schools such as teacher recruitment, closing the achievement gap, improving student accountability, addressing the needs of at‑risk students, and establishing and maintaining safe schools.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
disadvantaged student supplemental funding
SECTION 7.8.(a) Funds are appropriated in this act to address the capacity needs of local school administrative units to meet the needs of disadvantaged students. Each local school administrative unit shall use funds allocated to it for disadvantaged student supplemental funding to implement a plan jointly developed by the unit and the LEA Assistance Program team. The plan shall be based upon the needs of students in the unit not achieving grade‑level proficiency. The plan shall detail how these funds shall be used in conjunction with all other supplemental funding allotments such as Low‑Wealth, Small County, At‑Risk Student Services/Alternative Schools, and Improving Student Accountability, to provide instructional and other services that meet the educational needs of these students. Prior to the allotment of disadvantaged student supplemental funds, the plan shall be approved by the State Board of Education.
Funds received for disadvantaged student supplemental funding shall be used, consistent with the policies and procedures adopted by the State Board of Education, only to:
(1) Provide instructional positions or instructional support positions and/or professional development;
(2) Provide intensive in‑school and/or after‑school remediation;
(3) Purchase diagnostic software and progress‑monitoring tools; and
(4) Provide funds for teacher bonuses and supplements. The State Board of Education shall set a maximum percentage of the funds that may be used for this purpose.
SECTION 7.8.(b) Funds are appropriated in this act to evaluate the Disadvantaged Students Supplemental Funding Initiatives and Low‑Wealth Initiatives. The State Board of Education shall use these funds to:
(1) Evaluate the strategies implemented by local school administrative units with Disadvantaged Student Supplemental Funds and Low‑Wealth Funds and assess their impact on student performance; and
(2) Evaluate the efficiency and effectiveness of the technical assistance and support provided to local school administrative units by the Department of Public Instruction.
The State Board of Education shall report the results of the evaluation to the Office of State Budget and Management, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division by February 15, 2006, and by January 15 of each subsequent year.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
students with limited english proficiency
SECTION 7.9.(a) The State Board of Education shall develop guidelines for identifying and providing services to students with limited proficiency in the English language.
The State Board shall allocate these funds to local school administrative units and to charter schools under a formula that takes into account the average percentage of students in the units or the charters over the past three years who have limited English proficiency. The State Board shall allocate funds to a unit or a charter school only if (i) average daily membership of the unit or the charter school includes at least 20 students with limited English proficiency or (ii) students with limited English proficiency comprise at least two and one‑half percent (2.5%) of the average daily membership of the unit or charter school. For the portion of the funds that is allocated on the basis of the number of identified students, the maximum number of identified students for whom a unit or charter school receives funds shall not exceed ten and six‑tenths percent (10.6%) of its average daily membership.
Local school administrative units shall use funds allocated to them to pay for classroom teachers, teacher assistants, tutors, textbooks, classroom materials/instructional supplies/equipment, transportation costs, and staff development of teachers for students with limited English proficiency.
A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds.
Students in the head count shall be assessed at least once every three years to determine their level of English proficiency. A student who scores "superior" on the standard English language proficiency assessment instrument used in this State shall not be included in the head count of students with limited English proficiency.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
flexibility for the highest priority elementary schools
SECTION 7.10. The State Board of Education may allow high priority schools that have made high growth for three consecutive years to be removed from the list of high priority schools. If a local board of education chooses to have a school removed from the list of high priority schools, the additional high priority funding for that school shall be discontinued.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
AT‑RISK STUDENT SERVICES/ALTERNATIVE SCHOOLS
SECTION 7.11. The State Board of Education may use up to two hundred thousand dollars ($200,000) of the funds in the Alternative Schools/At‑Risk Student allotment each year for the 2005‑2006 fiscal year and for the 2006‑2007 fiscal year to implement G.S. 115C‑12(24).
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
funds for CHILDREN WITH DISABILITIES
SECTION 7.12. The State Board of Education shall allocate funds for children with disabilities on the basis of two thousand eight hundred thirty‑eight dollars and thirty‑nine cents ($2,838.39) per child for a maximum of 169,164 children for the 2005‑2006 school year. Each local school administrative unit shall receive funds for the lesser of (i) all children who are identified as children with disabilities or (ii) twelve and five‑tenths percent (12.5%) of the 2005‑2006 allocated average daily membership in the local school administrative unit.
The dollar amounts allocated under this section for children with disabilities shall also adjust in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve children with disabilities.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
funds for academically gifted children
SECTION 7.13. The State Board of Education shall allocate funds for academically or intellectually gifted children on the basis of nine hundred twenty‑six dollars and fifty‑five cents ($926.55) per child. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its 2005‑2006 allocated average daily membership, regardless of the number of children identified as academically or intellectually gifted in the unit. The State Board shall allocate funds for no more than 55,895 children for the 2005‑2006 school year.
The dollar amounts allocated under this section for academically or intellectually gifted children shall also adjust in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve academically or intellectually gifted children.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
EXPENDITURE OF FUNDS TO IMPROVE STUDENT ACCOUNTABILITY
The principal of a school receiving these funds, in consultation with the faculty and the site‑based management team, shall implement plans for expending these funds to improve the performance of students.
Local boards of education are encouraged to use federal funds such as Title I Comprehensive School Reform Development Funds and to examine the use of State funds to ensure that every student is performing at or above grade level in reading and mathematics.
These funds shall be allocated to local school administrative units for the 2005‑2006 fiscal year within 30 days of the date this act becomes law.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
SECTION 7.15. The State Board of Education may expend up to five hundred thousand dollars ($500,000) each year for the 2005‑2006 and 2006‑2007 fiscal years from unexpended funds for certified employees' salaries to pay expenses related to pending litigation.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
BASE BUDGET REDUCTION TO DEPARTMENT OF PUBLIC INSTRUCTION
SECTION 7.16. Notwithstanding any other provision of law, the Department of Public Instruction may use salary reserve funds and other funds and may transfer funds within the Department's continuation budget to implement budget reductions for the 2005‑2006 fiscal year.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
REPLACEMENT SCHOOL BUSES FUNDS
(1) The local board of education shall use the funds only to make the first, second, or third year's payment on a financing contract entered into pursuant to G.S. 115C‑528.
(2) The term of a financing contract entered into under this section shall not exceed three years.
(3) The local board of education shall purchase the buses only from vendors selected by the State Board of Education and on terms approved by the State Board of Education.
(4) The Department of Administration, Division of Purchase and Contract, in cooperation with the State Board of Education, shall solicit bids for the direct purchase of school buses and activity buses and shall establish a statewide term contract for use by the State Board of Education. Local boards of education and other agencies shall be eligible to purchase from the statewide term contract. The State Board of Education shall also solicit bids for the financing of school buses.
(5) A bus financed pursuant to this section shall meet all federal motor vehicle safety regulations for school buses.
(6) Any other condition the State Board of Education considers appropriate.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
expenditures for driving eligibility certificates
SECTION 7.18. G.S. 115C‑12(28) reads as rewritten:
"§ 115C‑12. Powers and duties of the Board generally.
The general supervision and administration of the free public school system shall be vested in the State Board of Education. The State Board of Education shall establish policy for the system of free public schools, subject to laws enacted by the General Assembly. The powers and duties of the State Board of Education are defined as follows:
…
(28) Duty to Develop Rules for Issuance of Driving Eligibility Certificates. – The State Board of Education shall adopt the following rules to assist schools in their administration of procedures necessary to implement G.S. 20‑11 and G.S. 20‑13.2:
a. To define what is equivalent to a high school diploma for the purposes of G.S. 20‑11 and G.S. 20‑13.2. These rules shall apply to all educational programs offered in the State by public schools, charter schools, nonpublic schools, or community colleges.
b. To establish the procedures a person who is or was enrolled in a public school or in a charter school must follow and the requirements that person shall meet to obtain a driving eligibility certificate.
c. To require the person who is required under G.S. 20‑11(n) to sign the driving eligibility certificate to provide the certificate if he or she determines that one of the following requirements is met:
1. The person seeking the certificate is eligible for the certificate under G.S. 20‑11(n)(1) and is not subject to G.S. 20‑11(n1).
2. The person seeking the certificate is eligible for the certificate under G.S. 20‑11(n)(1) and G.S. 20‑11(n1).
These rules shall apply to public schools and charter schools.
d. To provide for an appeal to an appropriate education authority by a person who is denied a driving eligibility certificate. These rules shall apply to public schools and charter schools.
e. To define exemplary student behavior and to define what constitutes the successful completion of a drug or alcohol treatment counseling program. These rules shall apply to public schools and charter schools.
The State Board also shall develop policies as to when it is appropriate to notify the Division of Motor Vehicles that a person who is or was enrolled in a public school or in a charter school no longer meets the requirements for a driving eligibility certificate.
The State Board shall develop a form for parents, guardians, or emancipated juveniles, as appropriate, to provide their written, irrevocable consent for a school to disclose to the Division of Motor Vehicles that the student no longer meets the conditions for a driving eligibility certificate under G.S. 20‑11(n)(1) or G.S. 20‑11(n1), if applicable, in the event that this disclosure is necessary to comply with G.S. 20‑11 or G.S. 20‑13.2. Other than identifying under which statutory subsection the student is no longer eligible, no other details or information concerning the student's school record shall be released pursuant to this consent. This form shall be used for students enrolled in public schools or charter schools.
The State Board of Education may use funds appropriated for drivers education to cover the costs of driving eligibility certificates."
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
discrepancies between anticipated and actual adm
The allotments reduced pursuant to this subsection shall include only those allotments that may be increased pursuant to the Allotment Adjustments for ADM Growth provisions of the North Carolina Public Schools Allotment Policy Manual.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
CHARTER SCHOOL ADVISORY COMMITTEE/CHARTER SCHOOL EVALUATION
SECTION 7.20. The State Board of Education may spend up to fifty thousand dollars ($50,000) a year from State Aid to Local School Administrative Units for the 2005‑2006 and 2006‑2007 fiscal years to continue support of a charter school advisory committee and to continue to evaluate charter schools.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
mentor teacher funds may be used for full‑time mentors
SECTION 7.21.(a) The State Board of Education shall grant flexibility to a local board of education regarding the use of mentor funds to provide mentoring support, provided the local board submits a detailed plan on the use of the funds to the State Board and the State Board approves that plan. The plan shall include information on how all mentors in the local school administrative unit have been or will be adequately trained to provide mentoring support.
Local boards of education shall use funds allocated for mentor teachers to provide mentoring support to all State‑paid newly certified teachers, second‑year teachers who were assigned mentors during the prior school year, and entry‑level instructional support personnel who have not previously been teachers.
SECTION 7.21.(b) The State Board, after consultation with the Professional Teaching Standards Commission, shall adopt standards for mentor training.
SECTION 7.21.(c) Each local board of education with a plan approved pursuant to subsection (a) of this section shall report to the State Board on the impact of its mentor program on teacher retention. The State Board shall analyze these reports to determine the characteristics of mentor programs that are most effective in retaining teachers and shall report its findings to the Joint Legislative Education Oversight Committee by October 15, 2006.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
visiting international exchange teachers
SECTION 7.22. G.S. 115C‑105.25(b) is amended by adding a new subdivision to read:
"(5a) Positions allocated for classroom teachers may be converted to dollar equivalents to contract for visiting international exchange teachers. These positions shall be converted at the statewide average salary for classroom teachers, including benefits. The converted funds shall be used only to cover the costs associated with bringing visiting international exchange teachers to the local school administrative unit through a State‑approved visiting international exchange teacher program and supporting the visiting exchange teachers."
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
FUNDS TO IMPLEMENT THE ABCS OF PUBLIC EDUCATION
(1) Incentive awards in schools that achieve higher than expected improvements may be:
a. Up to one thousand five hundred dollars ($1,500) for each teacher and for certified personnel; and
b. Up to five hundred dollars ($500.00) for each teacher assistant.
(2) Incentive awards in schools that meet the expected improvements may be:
a. Up to seven hundred fifty dollars ($750.00) for each teacher and for certified personnel; and
b. Up to three hundred seventy‑five dollars ($375.00) for each teacher assistant.
SECTION 7.23.(b) The State Board of Education may use funds appropriated to the State Public School Fund for assistance teams to low‑performing schools.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
SECTION 7.24. Of the funds appropriated to the State Public School Fund, the State Board of Education shall use five hundred thousand dollars ($500,000) for the 2005‑2006 fiscal year and five hundred thousand dollars ($500,000) for the 2006‑2007 fiscal year to provide assistance to the State's low‑performing Local School Administrative Units (LEAs) and to assist schools in meeting adequate yearly progress in each subgroup identified in the No Child Left Behind Act of 2001. The State Board of Education shall report to the Office of State Budget and Management, the Fiscal Research Division, and the Joint Legislative Education Oversight Committee on the expenditure of these funds by May 15, 2006, and by December 15, 2007. The report shall contain: (i) the criteria for selecting LEAs and schools to receive assistance, (ii) measurable goals and objectives for the assistance program, (iii) an explanation of the assistance provided, (iv) findings from the assistance program, (v) actual expenditures by category, (vi) recommendations for the continuance of this program, and (vii) any other information the State Board deems necessary. These funds shall not revert at the end of each fiscal year but shall remain available until expended for this purpose.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
FUNDS FOR THE TESTING AND IMPLEMENTATION OF THE NEW STUDENT INFORMATION SYSTEM
SECTION 7.25.(a) Funds appropriated for the Uniform Education Reporting System shall not revert at the end of the 2005‑2006 and 2006‑2007 fiscal years but shall remain available until expended.
SECTION 7.25.(b) This section becomes effective June 30, 2005.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
PUBLIC SCHOOL BUILDING CAPITAL and technology FUND
SECTION 7.26.(a) The title of Article 38A of Chapter 115C of the General Statutes reads as rewritten:
"Article 38A.
Public School Building Capital and Technology Fund."
SECTION 7.26.(b) G.S. 115C‑546.1 is amended by deleting the language "Public School Building Capital Fund" wherever it appears and substituting "Public School Building Capital and Technology Fund".
SECTION 7.26.(c) Notwithstanding the provisions of G.S. 115C‑546.1(b), as rewritten by subsection (b) of this section, for the third and fourth quarters of the 2005‑2006 fiscal year only, the Secretary of Revenue shall remit to the State Treasurer an amount equal to five sixty‑ninths of the net collections received during the previous quarter by the Department of Revenue under G.S. 105‑130.3. Of these funds, twenty‑five million dollars ($25,000,000) each quarter shall be for credit to the State Public School Fund, and the remainder shall be for credit to the Public School Building Capital and Technology Fund.
SECTION 7.26.(d) Notwithstanding the provisions of G.S. 115C‑546.1(b), as rewritten by subsection (b) of this section, for the first and second quarters of the 2006‑2007 fiscal year only, the Secretary of Revenue shall remit to the State Treasurer an amount equal to five sixty‑ninths of the net collections received during the previous quarter by the Department of Revenue under G.S. 105‑130.3. Of these funds, twenty million five hundred thousand dollars ($20,500,000) each quarter shall be for credit to the State Public School Fund, and the remainder shall be for credit to the Public School Building Capital and Technology Fund.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
LEA Sales Tax Refund Reporting
SECTION 7.27.(a) G.S. 105‑164.14(c) reads as rewritten:
"(c) Certain Governmental Entities. – A governmental entity listed in this subsection is allowed an annual refund of sales and use taxes paid by it under this Article on direct purchases of tangible personal property and services, other than electricity and telecommunications service. Sales and use tax liability indirectly incurred by a governmental entity on building materials, supplies, fixtures, and equipment that become a part of or annexed to any building or structure that is owned or leased by the governmental entity and is being erected, altered, or repaired for use by the governmental entity is considered a sales or use tax liability incurred on direct purchases by the governmental entity for the purpose of this subsection. A request for a refund must be in writing and must include any information and documentation required by the Secretary. A request for a refund is due within six months after the end of the governmental entity's fiscal year. The Secretary shall make an annual report to the Department of Public Instruction and the Fiscal Research Division of the General Assembly by January 1 of the amount of refunds, identified by taxpayer, claimed under subdivisions (2b) and (2c) of this subsection over the preceding year.
This subsection applies only to the following governmental entities:
(1) A county.
(2) A city as defined in G.S. 160A‑1.
(2a) A consolidated city‑county as defined in G.S. 160B‑2.
(2b) A local school administrative unit.
(2c) A joint agency created by interlocal agreement among local school administrative units pursuant to G.S. 160A‑462 to jointly purchase food service‑related materials, supplies, and equipment on their behalf.
(3) A metropolitan sewerage district or a metropolitan water district in this State.
(4) A water and sewer authority created under Chapter 162A of the General Statutes.
(5) A lake authority created by a board of county commissioners pursuant to an act of the General Assembly.
(6) A sanitary district.
(7) A regional solid waste management authority created pursuant to G.S. 153A‑421.
(8) An area mental health, developmental disabilities, and substance abuse authority, other than a single‑county area authority, established pursuant to Article 4 of Chapter 122C of the General Statutes.
(9) A district health department, or a public health authority created pursuant to Part 1A of Article 2 of Chapter 130A of the General Statutes.
(10) A regional council of governments created pursuant to G.S. 160A‑470.
(11) A regional planning and economic development commission or a regional economic development commission created pursuant to Chapter 158 of the General Statutes.
(12) A regional planning commission created pursuant to G.S. 153A‑391.
(13) A regional sports authority created pursuant to G.S. 160A‑479.
(14) A public transportation authority created pursuant to Article 25 of Chapter 160A of the General Statutes.
(14a) A facility authority created pursuant to Part 4 of Article 20 of Chapter 160A of the General Statutes.
(15) A regional public transportation authority created pursuant to Article 26 of Chapter 160A of the General Statutes, or a regional transportation authority created pursuant to Article 27 of Chapter 160A of the General Statutes.
(16) A local airport authority that was created pursuant to a local act of the General Assembly.
(17) A joint agency created by interlocal agreement pursuant to G.S. 160A‑462 to operate a public broadcasting television station.
(18) Repealed by Session Laws 2001‑474, s. 7, effective November 29, 2001.
(19) Repealed by Session Laws 2001‑474, s. 7, effective November 29, 2001.
(20) A constituent institution of The University of North Carolina, but only with respect to sales and use tax paid by it for tangible personal property or services that are eligible for refund under this subsection acquired by it through the expenditure of contract and grant funds.
(21) The University of North Carolina Health Care System.
(22) A regional natural gas district created pursuant to Article 28 of Chapter 160A of the General Statutes."
SECTION 7.27.(b) G.S. 105‑259(b) is amended by adding a new subdivision to read:
"(b) Disclosure Prohibited. – An officer, an employee, or an agent of the State who has access to tax information in the course of service to or employment by the State may not disclose the information to any other person unless the disclosure is made for one of the following purposes:
…
(32) To provide the report required under G.S. 105‑164.14(c) to the Department of Public Instruction and the Fiscal Research Division of the General Assembly."
SECTION 7.27.(c) In addition to the report required under G.S. 105‑164.14(c), as amended by this section, the Secretary of Revenue shall make a report to the Department of Public Instruction and the Fiscal Research Division of the General Assembly within 30 days after this act becomes law of the amount of refunds, identified by taxpayer, claimed under subdivisions (2b) and (2c) of G.S. 105‑164.14(c) during the 2002‑2003, 2003‑2004, and 2004‑2005 fiscal years.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
REVIEW OF standards for Masters in school administration PROGRAMS
SECTION 7.28. The State Board of Education, in consultation with the Board of Governors of The University of North Carolina, shall review standards for Masters in School Administration programs to ensure that appropriate competencies related to teacher retention, teacher evaluations, teacher support programs, and teacher effectiveness are included and emphasized.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
EVALUATION OF SCHOOL PRINCIPALS
SECTION 7.29. Chapter 115C of the General Statutes is amended by adding a new section to read:
"§ 115C‑286.1. Evaluations of principals.
Local school administrative units shall evaluate all principals and assistant principals at least once each year. Either the superintendent or the superintendent's designee shall conduct the evaluations.
The State Board of Education shall ensure that the standards and criteria for the evaluations include the accountability measures of teacher retention, teacher support, and school climate. The State Board shall revise its evaluation instruments to include these measures. A local board shall use the performance standards and criteria adopted by the State Board unless the board develops an alternative evaluation that is properly validated and that includes standards and criteria similar to those adopted by the State Board."
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
SECTION 7.30. The State Board of Education shall report on best practices from North Carolina schools for providing a minimum of five hours per week within the instructional day for planning, collaborating with colleagues and parents, and professional development, especially within elementary school schedules. The State Board shall submit its report to the Education Cabinet and to the Joint Legislative Education Oversight Committee by December 31, 2005.
The State Board shall disseminate this information about best practices to schools and school systems across the State.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
ONLINE PROFESSIONAL DEVELOPMENT RESOURCE CENTER FOR TEACHERS AND PRINCIPALS
SECTION 7.31. The State Board of Education and the Department of Public Instruction shall develop a Web portal that catalogues high‑quality professional development opportunities for teachers and principals.
The State Chief Information Officer must approve the system's information technology project plan before funds are spent for the implementation of this system.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
SECTION 7.32.(a) Funds are appropriated in this act for the Learn and Earn high school workforce development program. The purpose of the program is to create rigorous and relevant high school options that provide students with the opportunity and assistance to earn an associate degree or two years of college credit by the conclusion of the year after their senior year in high school. The State Board of Education shall work closely with the Education Cabinet and the New Schools Project in administering the program.
SECTION 7.32.(b) These funds shall be used to establish new high schools in which a local school administrative unit, two‑ and four‑year colleges and universities, and local employers work together to ensure that high school and postsecondary college curricula operate seamlessly and meet the needs of participating employers.
Funds shall not be allotted until Learn and Earn high schools are certified as operational.
SECTION 7.32.(c) During the first year of its operation, a high school established under G.S. 115C‑238.50 shall be allotted a principal regardless of the number of State‑paid teachers assigned to the school or the number of students enrolled in the school.
SECTION 7.32.(d) The State Board of Education, in consultation with the State Board of Community Colleges and The University of North Carolina Board of Governors, shall conduct an annual evaluation of this program. The evaluation shall include measures as identified in G.S. 115C‑238.55. It shall also include: (i) an accounting of how funds and personnel resources were utilized and their impact on student achievement, retention, and employability; (ii) recommended statutory and policy changes; and (iii) recommendations for improvement of the program. The State Board of Education shall report the results of this evaluation to the Office of State Budget and Management, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division by January 15 of each fiscal year.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
FLEXIBILITY FOR HIGH SCHOOL INNOVATION
SECTION 7.33.(a) Part 9 of Article 16 of Chapter 115C of the General Statutes reads as rewritten:
"Part 9. Cooperative Innovative High School Programs.
"§ 115C‑238.50. Purpose.
(a) The purpose of this Part
is to authorize boards of trustees of community colleges and local boards of
education to jointly establish local boards of education to jointly
establish with one or more boards of trustees cooperative innovative
programs in high schools and community colleges or universities that
will expand students' opportunities for educational success through high
quality instructional programming. These cooperative innovative high school
programs shall target:
(1) High school students who are at risk of dropping out of school before attaining a high school diploma; or
(2) High school students who would benefit from accelerated academic instruction.
(b) All the cooperative innovative high school programs established under this Part shall:
(1) Prepare students adequately for future learning in the workforce or in an institution of higher education.
(2) Expand students' educational opportunities within the public school system.
(3) Be centered on the core academic standards represented by the college preparatory or tech prep program of study as defined by the State Board of Education.
(4) Encourage the cooperative
or shared use of resources, personnel, and facilities between public schools
and community colleges. colleges or universities, or both.
(5) Integrate and emphasize both academic and technical skills necessary for students to be successful in a more demanding and changing workplace.
(6) Emphasize parental involvement and provide consistent counseling, advising, and parent conferencing so that parents and students can make responsible decisions regarding course taking and can track the students' academic progress and success.
(7) Be held accountable for meeting measurable student achievement results.
(8) Encourage the use of different and innovative teaching methods.
(9) Establish joint institutional responsibility and accountability for support of students and their success.
(10) Effectively utilize
existing funding sources for high school, community college, university,
and vocational programs and actively pursue new funding from other sources.
(11) Develop methods for early identification of potential participating students in the middle grades and through high school.
(12) Reduce the percentage of students needing remedial courses upon their initial entry from high school into a college or university.
(c) Programs developed under this Part that target students who are at risk of dropping out of high school before attaining a high school diploma shall:
(1) Provide these students with the opportunity to graduate from high school possessing the core academic skills needed for postsecondary education and high‑skilled employment.
(2) Enable students to complete a technical or academic program in a field that is in high demand and has high wages.
(3) Set and achieve goals
that significantly reduce dropout rates and raise high school and community college
retention, certification, and degree completion rates.
(4) Enable students who complete these programs to pass employer exams, if applicable.
(d) Cooperative innovative high school programs that offer accelerated learning programs shall:
(1) Provide a flexible, customized program of instruction for students who would benefit from accelerated, higher level coursework or early graduation from high school.
(2) Enable students to obtain
a high school diploma in less than four years and years, to begin
or complete an associate degree program or program, to master a
certificate or vocational program.program, or to earn up to two years
of college credit.
(3) Offer a college preparatory academic core and in‑depth studies in a career or technical field that will lead to advanced programs or employment opportunities in engineering, health sciences, or teaching.
(e) Cooperative innovative
high school programs may include the creation of a school within a school, a
technical high school, or a high school or technical center located on the
campus of a community college.college or university.
(f) Students are eligible to attend these programs as early as ninth grade.
"§ 115C‑238.50A. Definitions.
The following definitions apply in this Part:
(1) Constituent institution. – A constituent institution as defined in G.S. 116‑2(4).
(2) Education partner. – An education partner as provided in G.S. 115C‑238.52.
(3) Governing board. – The State Board of Community Colleges, the Board of Governors of The University of North Carolina, or the Board of the North Carolina Independent Colleges and Universities.
(4) Local board of trustees. – The board of trustees of a community college, constituent institution of The University of North Carolina, or private college located in North Carolina.
"§ 115C‑238.51. Application process.
(a) A local board of
education and a at least one local board of trustees of a
community college shall jointly apply to establish a cooperative innovative
high school program under this Part.
(b) The application shall contain at least the following information:
(1) A description of a program that implements the purposes in G.S. 115C‑238.50.
(2) A statement of how the program relates to the Economic Vision Plan adopted for the economic development region in which the program is to be located.
(3) The facilities to be used by the program and the manner in which administrative services of the program are to be provided.
(4) A description of student academic and vocational achievement goals and the method of demonstrating that students have attained the skills and knowledge specified for those goals.
(5) A description of how the program will be operated, including budgeting, curriculum, transportation, and operating procedures.
(6) The process to be followed by the program to ensure parental involvement.
(7) The process by which students will be selected for and admitted to the program.
(8) A description of the funds that will be used and a proposed budget for the program. This description shall identify how the average daily membership (ADM) and full‑time equivalent (FTE) students are counted.
(9) The qualifications required for individuals employed in the program.
(10) The number of students to be served.
(11) A description of how the program's effectiveness in meeting the purposes in G.S. 115C‑238.50 will be measured.
(c) The application shall be
submitted to the State Board of Education and the State Board of Community
Colleges applicable governing Boards by November 1 of each year. The
State Board of Education and the State Board of Community Colleges Boards
shall appoint a joint advisory committee to review the applications and to
recommend to the State Boards those programs that meet the requirements
of this Part and that achieve the purposes set out in G.S. 115C‑238.50.
(d) The State Board of
Education and the State Board of Community Colleges shall approve two
cooperative innovative high school programs in each of the State's economic
development regions. The State Boards may approve programs
recommended by the joint advisory committee or may approve other programs that
were not recommended. The State Boards shall approve all applications by
March 15 of each year. No application shall be approved unless the State Boards
State Board of Education and the applicable governing Board find
that the application meets the requirements set out in this Part and that
granting the application would achieve the purposes set out in G.S. 115C‑238.50.
Priority shall be given to applications that are most likely to further State
education policies, to address the economic development needs of the economic
development regions in which they are located, and to strengthen the
educational programs offered in the local school administrative units in which
they are located.
"§ 115C‑238.52. Participation by other education partners.
(a) Any or all of the following education partners may participate in the development of a cooperative innovative program under this Part that is targeted to high school students who would benefit from accelerated academic instruction:
(1) A constituent
institution of The University of North Carolina.
(2) A private
college or university located in North Carolina.
(3) A private business or organization.
(4) The county board of commissioners in the county in which the program is located.
(b) Any or all of the education partners listed in subsection (a) of this section that participate shall:
(1) Jointly apply with the
local board of education and the local board of trustees of the community
college to establish a cooperative innovative program under this Part.
(2) Be identified in the application.
(3) Sign the written agreement under G.S. 115C‑238.53(b).
"§ 115C‑238.53. Program operation.
(a) A program approved by
the State shall be is accountable to the local board of
education.
(b) A program approved under
this Part shall operate under the terms of a written agreement signed by the
local board of education, local board of trustees of the community college, trustees,
State Board of Education, and State Board of Community Colleges. applicable
governing Board. The agreement shall incorporate the information provided
in the application, as modified during the approval process, and any terms and
conditions imposed on the program by the State Board of Education and the State
Board of Community Colleges. applicable governing Board. The
agreement may be for a term of no longer than five school years.
(c) A program may be
operated in a facility owned or leased by the local board of education, the
local board of trustees of the community college, trustees, or
the education partner, if any.
(d) A program approved under this Part shall provide instruction each school year for at least 180 days during nine calendar months, shall comply with laws and policies relating to the education of students with disabilities, and shall comply with Article 27 of this Chapter.
(e) A program approved under
this Part may use State, federal, and local funds allocated to the local school
administrative unit, to the State Board of Community Colleges, applicable
governing Board, and to the community college or university to
implement the program. If there is an education partner and if it is a public
body, the program may use State, federal, and local funds allocated to that
body.
(f) Except as provided in
this Part and pursuant to under the terms of the agreement, a
program is exempt from laws and rules applicable to a local board of education,
a local school administrative unit, a community college, a constituent
institution, or a local board of trustees of a community college.trustees.
"§ 115C‑238.54. Funds for programs.
(a) The Department of Public Instruction shall assign a school code for each program that is approved under this Part. All positions and other State and federal allotments that are generated for this program shall be assigned to that school code. Notwithstanding G.S. 115C‑105.25, once funds are assigned to that school code, the local board of education may use these funds for the program and may transfer these funds between funding allotment categories.
(b) The local board of
trustees of a community college may allocate State and federal funds for
a program that is approved under this Part.
(c) An education partner under G.S. 115C‑238.52 that is a public body may allocate State, federal, and local funds for a program that is approved under this Part.
(d) If not an education partner under G.S. 115C‑238.52, a county board of commissioners in a county where a program is located may nevertheless appropriate funds to a program approved under this Part.
(e) The local board of
education and the local board of trustees of the community college are
strongly encouraged to seek funds from sources other than State, federal, and
local appropriations. They are strongly encouraged to seek funds the Education
Cabinet identifies or obtains under G.S. 116C‑4.
"§ 115C‑238.55. Evaluation of programs.
The State Board of Education and
the State Board of Community Colleges governing Boards shall
evaluate the success of students in programs approved under this Part. Success
shall be measured by high school retention rates, high school completion rates,
high school dropout rates, certification and associate degree completion,
admission to four‑year institutions, postgraduation employment in career
or study‑related fields, and employer satisfaction of employees who
participated in and graduated from the programs. Beginning October 15, 2005,
and annually thereafter, the Boards shall jointly report to the Joint
Legislative Education Oversight Committee on the evaluation of these programs.
If, by October 15, 2006, the Boards determine any or all of these programs have
been successful, they shall jointly develop a prototype plan for similar
programs that could be expanded across the State. This plan shall be included
in their report to the Joint Legislative Education Oversight Committee that is
due by October 15, 2007."
SECTION 7.33.(b) It is the intent of the General Assembly that three cooperative innovative high school programs are established that emphasize the educational development of high school students in the areas of science and mathematics in a nonresidential setting. One of these programs shall be located in the eastern region of the State, one shall be located in the central region of the State, and one shall be located in the western region of the State. The State Board of Education shall begin planning for the design and implementation of these programs and shall report their plan to the Joint Legislative Education Oversight Committee and the Fiscal Research Division of the General Assembly by March 15, 2006.
The plan shall include, but not be limited to, the following aspects of the proposed programs:
(1) Programmatic design including location, curriculum, student access, and calendar,
(2) Projected costs of operation, including instructional, administrative, transportation, capital, and other costs,
(3) Any plans for coordination with institutes of higher education,
(4) Proposed implementation schedule.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
SECTION 7.34. G.S. 115C‑302.1(b) reads as rewritten:
"(b) Salary Payments. – State‑allotted teachers shall be paid for a term of 10 months. State‑allotted months of employment for vocational education to local boards shall be used for the employment of teachers of vocational and technical education for a term of employment to be determined by the local boards of education. However, local boards shall not reduce the term of employment for any vocational agriculture teacher personnel position that was 12 calendar months for the 1982‑83 school year for any school year thereafter. In addition, local boards shall not reduce the term of employment for any vocational agriculture teacher personnel position that was 12 calendar months for the 2003‑2004 school year for any school year thereafter.
Each local board of education
shall establish a set date on which monthly salary payments to State‑allotted
teachers shall be made. This set pay date may differ from the end of the month
of service. The daily rate of pay for teachers shall equal midway between one
twenty‑first and one twenty‑second of the monthly rate of pay. Except
for teachers employed in a year‑round school or paid in accordance with a
year‑round calendar, or both, theThe initial pay date for
teachers, except for teachers employed in a year‑round school and other
teachers paid on a year‑round calendar, shall be no later than August
31 and the end of the first month of employment. The initial payment
shall include a be a full monthly payment. Subsequent pay dates
shall be spaced no more than one month apart and shall include a full monthly
payment.
Teachers may be prepaid on the monthly pay date for days not yet worked. A teacher who fails to attend scheduled workdays or who has not worked the number of days for which the teacher has been paid and who resigns, is dismissed, or whose contract is not renewed shall repay to the local board any salary payments received for days not yet worked. A teacher who has been prepaid and continues to be employed by a local board but fails to attend scheduled workdays may be subject to dismissal under G.S. 115C‑325 or other appropriate discipline.
Any individual teacher who is not employed in a year‑round school may be paid in 12 monthly installments if the teacher so requests on or before the first day of the school year. The request shall be filed in the local school administrative unit which employs the teacher. The payment of the annual salary in 12 installments instead of 10 shall not increase or decrease the teacher's annual salary nor in any other way alter the contract made between the teacher and the local school administrative unit. Teachers employed for a period of less than 10 months shall not receive their salaries in 12 installments.
Notwithstanding this subsection, the term "daily rate of pay" for the purpose of G.S. 115C‑12(8) or for any other law or policy governing pay or benefits based on the teacher salary schedule shall not exceed one twenty‑second of a teacher's monthly rate of pay."
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
funds for education of STUDENTS at eckerd youth ALTERNATIVES therapeutic camp
SECTION 7.35. If a student is placed in an Eckerd Youth Alternatives therapeutic camp on the recommendation of a local school administrative unit, the unit shall transfer to the camp the State funds allocated to the unit for the education of the child. For each day that the child receives educational services at the camp, that unit shall pay 1/180 of the annual amount a charter school located in that unit would receive in State funds for that child, for a maximum of 180 days in a fiscal year. If the child is a child with special needs, the unit shall also be responsible for the State per pupil allocation for children with special needs.
Requested by: Senators Lucas, Garrou, Dalton, Hagan
fund one local school administrative unit per county
SECTION 7.36.(a) Notwithstanding any other provision of law, the State Board of Education shall allot State funds on the basis of only one local school administrative unit per county. To implement this change, the State Board shall change formulas that allot funds on a per local school administrative unit basis to formulas that allot funds on a per county basis. If the amount previously allotted per local school administrative unit was graduated on the basis of average daily membership, the amount allotted per county shall be graduated on the basis of the total average daily membership of all units located in the county.
If a city school administrative unit is located in more than one county, the State Board of Education shall include in each county's average daily membership the average daily membership of the county's students in the city school administrative unit.
If a county contains more than one local school administrative unit, the State Board shall divide the amount allotted on a per county basis between the units on the basis of average daily membership.
SECTION 7.36.(b) This section does not apply to allotments to the Nash‑Rocky Mount School Administrative Unit, the Edgecombe County School Administrative Unit, the Cleveland County School Administrative Unit, or the Gaston County School Administrative Unit.
SECTION 7.36.(c) This section becomes effective July 1, 2006.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
minimize time devoted to standardized tests
SECTION 7.37. G.S. 115C‑174.12(a) reads as rewritten:
"(a) The State Board of Education shall establish policies and guidelines necessary for minimizing the time students spend taking tests administered through State and local testing programs, for minimizing the frequency of field testing at any one school, and for otherwise carrying out the provisions of this Article. These policies and guidelines shall include the following:
(1) Schools shall devote no more than two days of instructional time per year to the taking of practice tests that do not have the primary purpose of assessing current student learning;
(2) Students in a school shall not be subject to field tests or national tests during the two‑week period preceding the administration of end‑of‑grade tests, end‑of‑course tests, or the school's regularly scheduled final exams; and
(3) No school shall participate in more than two field tests at any one grade level during a school year unless that school volunteers, through a vote of its school improvement team, to participate in an expanded number of field tests.
These policies shall reflect standard testing practices to insure reliability and validity of the sample testing. The results of the field tests shall be used in the final design of each test. The State Board of Education's policies regarding the testing of children with disabilities shall (i) provide broad accommodations and alternate methods of assessment that are consistent with a child's individualized education program and section 504 (29 U.S.C. § 794) plans, (ii) prohibit the use of statewide tests as the sole determinant of decisions about a child's graduation or promotion, and (iii) provide parents with information about the Statewide Testing Program and options for students with disabilities. The State Board shall report its proposed policies and proposed changes in policies to the Joint Legislative Education Oversight Committee prior to adoption.
The State Board of Education may appoint an Advisory Council on Testing to assist in carrying out its responsibilities under this Article."
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
SECTION 7.38.(a) G.S. 116C‑1(b) reads as rewritten:
"(b) The Education Cabinet shall consist of the Governor, who shall serve as chair, the President of The University of North Carolina, the State Superintendent of Public Instruction, the Chairman of the State Board of Education, the President of the North Carolina Community Colleges System, the Secretary of Health and Human Services, and the President of the North Carolina Independent Colleges and Universities. The Education Cabinet may invite other representatives of education to participate in its deliberations as adjunct members."
SECTION 7.38.(b) The Education Cabinet shall study:
(1) The extent to which school nurses, school social workers, and other instructional support personnel collaborate with each other and with local health, mental health, and social services providers to meet the needs of at‑risk children and their families and to support the educational achievement of at‑risk children; and
(2) The need for additional training for school nurses, school social workers, and other instructional support personnel on multidisciplinary assessments and on referral and care coordination for at‑risk students and their families.
The Education Cabinet shall report the results of its study and its recommendations to the Joint Legislative Education Oversight Committee prior to April 15, 2006.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
the center for 21st century skills
SECTION 7.39.(a) The State Board of Education shall transfer funds appropriated for the Center for 21st Century Skills to the Office of the Governor. These funds shall be used for the establishment of the Center for 21st Century Skills within the North Carolina Business Committee for Education, Inc. The purpose of the Center shall be to design curriculum, teacher training, and student assessment to support students acquiring the knowledge and skills needed for the emerging workforce of the 21st century.
SECTION 7.39.(b) The North Carolina Business Committee for Education, Inc., and the Center for 21st Century Skills shall coordinate their efforts on high school reform with the North Carolina New Schools Project.
SECTION 7.39.(c) The North Carolina Business Committee for Education, Inc., and the Center for 21st Century Skills shall work with the North Carolina Science, Mathematics and Technology Education Center, the North Carolina School of Science and Mathematics, the North Carolina Board of Science and Technology, and the governing boards of education to research and propose options to create new or expand existing mathematics and science summer enrichment programs across the State and to establish nonresidential high schools focused on mathematics, science, and technology. The Center shall also support efforts of the Futures for Kids Program to connect students with the workforce needs of their home communities.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
TEACHER WORKING CONDITIONS INITIATIVE
SECTION 7.40.(a) Funds are appropriated in this act to continue the Governor's Teacher Working Conditions Survey. The State Board of Education shall use these funds: (i) for the administration of the survey by the Professional Teaching Standards Commission on a biennial basis, and (ii) to establish an advisory board to oversee implementation of recommendations from the survey.
SECTION 7.40.(b) The State Board of Education may supplement these funds with gifts or other private funds donated for this purpose.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
plan and funding for a virtual high school
SECTION 7.41.(a) The State Board of Education, the Board of Governors of The University of North Carolina, the Independent Colleges and Universities, and the State Board of Community Colleges shall develop E‑learning standards and plans for infrastructures that provide virtual learning opportunities accessible to students and other citizens through all North Carolina schools, universities, and community colleges. In developing the plan for the public schools, the State Board of Education shall focus initially on high schools while also researching and developing, where appropriate, E‑learning for middle schools, junior high schools, and elementary schools. E‑learning programs shall support both teachers and students.
SECTION 7.41.(b) As used in this section, "E‑learning" is electronic learning that includes a wide set of applications and processes, such as Web‑based learning, computer‑based learning, virtual classrooms, and digital collaboration. It includes the delivery of content via Internet, intranet/extranet (LAN/WAN), audiotape, videotape, satellite broadcast, interactive television, and CD‑ROM.
SECTION 7.41.(c) It is the intent of the General Assembly to give public schools the highest priority in funding for and development of E‑learning. Funding for E‑learning should be a new appropriation and not come exclusively from existing funds.
SECTION 7.41.(d) The State Board of Education shall use funds appropriated for a virtual high school to establish and implement a pilot virtual high school during the 2005‑2006 school year and the 2006‑2007 school year.
The State Board of Education shall include in the pilot program instruction on personal financial literacy. This instruction shall be designed to equip students with the knowledge and skills they need, before they become self‑supporting, to make critical decisions regarding their personal finances. The components of instruction shall include, at a minimum, consumer financial education, personal finance, and personal credit.
SECTION 7.41.(e) If the pilot program is successful, it is the intent of the General Assembly to provide funding to implement a virtual high school on a statewide basis for the 2006‑2007 fiscal year.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
feasibility study for developing regional EDUCATION networks
SECTION 7.42. The North Carolina Rural Economic Development Center and the e‑NC Authority, in collaboration with representatives from local school administrative units, The University of North Carolina, the State Board of Education, the State Chief Information Officer, and the Community College System shall perform a feasibility study on developing regional education networks that are centrally managed to provide and sustain broadband connectivity to individual students and teachers in schools, community colleges, and universities.
The study shall include an evaluation of existing technology infrastructures, such as the statewide infrastructure, the North Carolina Research and Education Network, or the regional infrastructure, Winston‑Net. These state‑of‑the‑art infrastructures may be capable of supporting growth in traffic and thus serve as a backbone infrastructure for delivering high‑speed access to underserved regions.
The North Carolina Rural Economic Development Center and the e‑NC Authority shall report the results of the study to the 2006 Regular Session of the 2005 General Assembly.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
plan for projecting school technology funding needs
SECTION 7.43.(a) G.S. 115C‑102.6A(c) reads as rewritten:
"(c) Components of the State school technology plan shall include at least the following:
…
(17) A baseline template for:
a. Technology infrastructure, including broadband connectivity, personnel recommendations, and other resources needed to operate effectively from the classroom desktop to local, regional, and State networks, and
b. An evaluation component that provides for local school administrative unit accountability for maintaining quality upgradeable systems."
SECTION 7.43.(b) Before November 2005, the Department of Public Instruction shall hold regional workshops for local school administrative units to provide guidance in developing local school system technology plans that meet the criteria established in the State school technology plan, including the components added under subsection (a) of this section. The State Chief Information Officer will assist with the regional meetings as needed to provide technical assistance.
SECTION 7.43.(c) G.S. 115C‑102.7 is amended by adding the following new subsection to read:
"(c) The Department of Public Instruction shall randomly check local school system technology plans to ensure that local school administrative units are implementing their plans as approved. The Department shall report to the State Board of Education and the State Chief Information Officer on which local school administrative units are not complying with their plans. The report shall include the reasons these local school administrative units are out of compliance and a recommended plan of action to support each of these local school administrative units in carrying out their plans."
SECTION 7.43.(d) The State Board of Education shall determine the total amount of funds needed for the recurring total cost of ownership to implement, maintain, and upgrade technology infrastructures and instructional technology as specified in the revised local school system technology plans. This shall include personnel costs for both technical and instructional needs so that a three‑ to five‑year budget plan can be developed for the General Assembly.
SECTION 7.43.(e) The State Board of Education shall also study and identify the types of resources needed to operate schools designed to meet the needs of twenty‑first century learners.
The State Board shall report the results of this study to the 2006 Regular Session of the 2005 General Assembly.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
annual report that highlights the IMPACT of education preparation on economic growth
SECTION 7.44. The North Carolina Board of Science and Technology shall prepare an annual report by county on the status of trends that reflect the impact of education on economic growth for the twenty‑first century. This report shall contain information about the status of each county with regard to education and economic growth.
The Board shall provide the report to the Regular 2006 Session of the 2005 General Assembly and shall make the report available for citizens.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
process for more assistance for e‑rate
SECTION 7.45. 2IIn order to provide assistance to local school administrative units with E‑rate applications, the Department of Public Instruction shall, within existing funds, ensure that a minimum of one full‑time coordinator who has technical knowledge and skills is assigned this responsibility. The Department shall notify local school administrative units about the person or office assigned the responsibility of providing assistance with E‑rate applications.
The Department shall provide the State Board of Education with an annual report on E‑rate, including funding, commitments, and enrollment by local school administrative units.
As used in this section, "E‑rate" is the mechanism to provide discount rates to support universal telecommunications services for use by schools and libraries as provided in section 254 of the federal Telecommunications Act of 1996.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
planning for a state central INFRASTRUCTURE office
SECTION 7.46.(a) The Office of State Budget and Management shall conduct a study to determine the feasibility of establishing a State Central Infrastructure Office that would collect and manage information for technology, water, sewer, and other utility infrastructures needed to assist communities in becoming and remaining economically viable.
SECTION 7.46.(b) The Office of State Budget and Management shall report the results of this study to the 2006 Regular Session of the 2005 General Assembly. The report shall include legislative proposals, including a proposal to define the term "infrastructure" in the General Statutes to include technology.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
SECTION 7.47. The Joint Legislative Education Oversight Committee shall study the current salary structure for teachers and other school employees. In the course of the study, the Committee shall:
(1) Develop a plan to get the State moving toward the national average in teacher salaries by 2008 and toward the top 10 states in the nation by 2010.
(2) Consider strategies for maintaining the lead in teacher salaries in the Southeastern United States.
(3) Consider the need to reduce the number of steps on the teacher salary schedule, increase the beginning teacher salary, and enable an individual to reach the maximum salary sooner.
(4) Perform a market‑sensitive analysis of the skills and knowledge needed to be a successful teacher to determine what it takes to make the schedule attractive and competitive.
(4) Consider the placement of appropriate extraordinary increases on schedule for achievement of career status, teacher retention, and other purposes.
(5) Determine the need to modify the masters schedule differential.
(6) Determine the need to modify the alternative salary schedules to reward different levels of academic preparation and career accomplishments such as attainment of national certification.
(7) Consider the appropriate relationship of the school counselor's schedule to the schedules for other members of the school‑based staff.
(8) Determine the need to modify the administrator salary schedule.
(9) Consider other matters the Committee deems appropriate.
The Committee shall report the results of its study to the 2006 Regular Session of the 2005 General Assembly.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
commission for a sound basic education
SECTION 7.48.(a) The North Carolina Commission for a Sound Basic Education is hereby established. The Commission shall (i) investigate strategies and resources which contribute to the opportunity for North Carolina students to obtain a sound basic education, (ii) analyze all current plans for implementing the strategies developed to enhance every child's ability to fulfill his or her potential, and (iii) if necessary, provide a cost analysis for implementing those plans.
SECTION 7.48.(b) The Commission shall consist of six members appointed by the President Pro Tempore of the Senate and six members appointed by the Speaker of the House of Representatives. The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each designate a cochair of the Commission from their appointees.
SECTION 7.48.(c) The Commission shall appoint advisory members to assist it in its work. The advisory members shall include at least two parents of children in the public schools and representatives of State agencies, the Community College System, The University of North Carolina, education organizations, child health organizations, and child advocacy organizations.
SECTION 7.48.(d) The full commission shall meet on a monthly basis. The commission shall develop the necessary and appropriate committees and subcommittees to facilitate completion of its work. The committees and subcommittees shall meet as necessary to effectively conduct the work with which they are charged.
SECTION 7.48.(e) Only members of the Commission may vote on any matter before the Commission.
SECTION 7.48.(f) Members of the Commission and advisory members of the Commission shall receive per diem, subsistence, and travel allowances in accordance with G.S. 120‑3.1, 138‑5, or 138‑6, as appropriate.
SECTION 7.48.(g) The Commission, while in the discharge of its official duties, may exercise all powers provided for under G.S. 120‑19 and G.S. 120‑19.1 through G.S. 120‑19.4. The Commission may meet at any time upon the joint call of the cochairs. The Commission may meet in the Legislative Building or the Legislative Office Building.
The Legislative Services Commission, through the Legislative Services Officer, shall assign professional staff to assist the Commission in its work. The House of Representatives' and the Senate's Supervisors of Clerks shall assign clerical staff to the Commission, and the expenses relating to the clerical employees shall be borne by the Commission. The Commission may contract for professional, clerical, or consultant services as provided by G.S. 120‑32.02. If the Commission hires a consultant, the consultant shall not be a State employee or a person currently under contract with the State to provide services.
All State departments and agencies and local governments and their subdivisions shall furnish the Commission with any information in their possession or available to them.
The Legislative Services Commission, through the Legislative Services Officer, shall assign professional staff to assist the Commission in its work. The House of Representatives' and the Senate's Supervisors of Clerks shall assign clerical staff to the Commission, and the expenses relating to the clerical employees shall be borne by the Commission.
SECTION 7.48.(h) The Commission shall provide opportunities for substantive and meaningful input into and development and review of the comprehensive plan by all stakeholders in the public education system. These stakeholders include, but are not limited to, students, parents, guardians, educators, school board members, education advocates, and child health professionals. Opportunities for input and review shall include (i) regional public forums, (ii) regular distribution to local newspapers statewide of details of its work and posting of the information on the Internet, (iii) providing stakeholders with the opportunity to identify representative members of stakeholder groups to be included as full participants in the Commission’s deliberations, and (iv) open meetings of the Commission and any committees it may create.
SECTION 7.48.(i) The Commission shall make a final report to the General Assembly by January 15, 2006. The report shall include the details of the plans, the results of the cost analysis and a proposed budget, and any statutory changes necessary to implement the plans on a statewide basis.
SECTION 7.48.(j) The Commission shall terminate upon filing its final report or upon the convening of the 2006 Regular Session of the 2005 General Assembly, whichever is earlier.
SECTION 7.48.(k) Funds in the amount of two hundred thousand dollars ($200,000) are appropriated in this act to the General Assembly to carry out its work of the North Carolina Commission for a Sound Basic Education.
PART VIII. COMMUNITY COLLEGES
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
Use of Funds for the College Information System Project
SECTION 8.1.(a) Funds appropriated to the Community Colleges System Office for the College Information System Project shall not revert at the end of the 2004‑2005 fiscal year but shall remain available until expended.
SECTION 8.1.(c) Subsection (a) of this section becomes effective June 30, 2005.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
SECTION 8.2.(a) Subject to the approval of the Office of State Budget and Management and cash availability, the North Carolina Community Colleges System Office may carry‑forward an amount not to exceed fifteen million dollars ($15,000,000) of the operating funds that were not reverted in fiscal year 2004‑2005 to be reallocated to the State Board of Community Colleges' Equipment Reserve Fund. These funds shall be distributed to colleges consistent with G.S. 115D‑31.
SECTION 8.2.(b) This section becomes effective June 30, 2005.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
SALARIES OF COMMUNITY COLLEGE FACULTY AND PROFESSIONAL STAFF
(1) Vocational Diploma/Certificate or Less. – This education level includes faculty members who are high school graduates, have vocational diplomas, or have completed one year of college.
(2) Associate Degree or Equivalent. – This education level includes faculty members who have an associate degree or have completed two or more years of college but have no degree.
(3) Bachelors Degree.
(4) Masters Degree or Education Specialist.
(5) Doctoral Degree.
Education Level Minimum Salary
2005‑2006 2006‑2007
Vocational Diploma/Certificate or Less $29,652 $30,542
Associate Degree or Equivalent $30,102 31,005
Bachelors Degree $32,050 33,011
Masters Degree or Education Specialist $33,777 34,790
Doctoral Degree $36,269 37,357
No full‑time faculty member shall earn less than the minimum salary for his or her education level.
The pro rata hourly rate of the minimum salary for each education level shall be used to determine the minimum salary for part‑time faculty members.
(1) It is the intent of the General Assembly to encourage community colleges to make faculty salaries a priority and to reward colleges that have taken steps to achieve the national average, therefore:
a. If the average faculty salary at a community college is one hundred percent (100%) or more of the national average community college faculty salary, the college may transfer up to eight percent (8%) of the State funds allocated to it for faculty salaries.
b. If the average faculty salary at a community college is at least ninety‑five percent (95%) but less than one hundred percent (100%) of the national average community college faculty salary, the college may transfer up to six percent (6%) of the State funds allocated to it for faculty salaries.
c. If the average faculty salary at a community college is at least ninety percent (90%) but less than ninety‑five percent (95%) of the national average community college faculty salary, the college may transfer up to five percent (5%) of the State funds allocated to it for faculty salaries.
d. If the average faculty salary at a community college is at least eighty‑five percent (85%) but less than ninety percent (90%) of the national average community college faculty salary, the college may transfer up to three percent (3%) of the State funds allocated to it for faculty salaries.
e. If the average faculty salary at a community college is eighty‑five percent (85%) or less of the national average community college faculty salary, the college may transfer up to two percent (2%) of the State funds allocated to it for faculty salaries.
Except as provided by subdivision (2) of this subsection, a community college shall not transfer a greater percentage of the State funds allocated to it for faculty salaries than is authorized by this subsection.
(2) With the approval of the State Board of Community Colleges, a community college at which the average faculty salary is eighty‑five percent (85%) or less of the national average may transfer a greater percentage of the State funds allocated to it for faculty salaries than is authorized by sub‑subdivision e. of subdivision (1) of this subsection. The State Board shall approve the transfer only for purposes that directly affect student services.
(3) A local community college may use all State funds allocated to it except for Literacy Funds and Funds for New and Expanding Industry Training to increase faculty salaries.
SECTION 8.3.(d) As used in this section:
(1) "Average faculty salary at a community college" means the total nine‑month salary from all sources of all nine‑month, full‑time, curriculum faculty at the college, as determined by the North Carolina Community College System on October 1 of each year.
(2) "National average community college faculty salary" means the nine‑month, full‑time, curriculum salary average, as published by the Integrated Postsecondary Education Data System (IPEDS), for the most recent year for which data are available.
SECTION 8.3.(g) Funds appropriated in this act for salary increases shall be used to increase faculty and professional staff salaries by an average of two percent (2%). These increases are in addition to other salary increases provided for in this act and shall be calculated on the average salaries prior to the issuance of the compensation increase. Colleges may provide additional increases from funds available.
The State Board of Community Colleges shall adopt rules to ensure that these funds are used only to move faculty and professional staff to the respective national averages. These funds shall not be transferred by the State Board or used for any other budget purpose by the community colleges.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
workforce development PROGRAMs
SECTION 8.4.(a) Article 1 of Chapter 115D of the General Statutes is amended by adding a new G.S. 115D‑5.1 to be entitled "Workforce Development Programs"; G.S. 115D‑5(d) is recodified as G.S. 115D‑5.1(a); G.S. 115D‑5(k) is recodified as G.S. 115D‑5.1(b); and G.S. 115D‑5(i) is recodified as G.S. 115D‑5.1(c).
SECTION 8.4.(b) G.S. 115D‑5.1, as enacted by subsection (a) of this section, reads as rewritten:
"§ 115D‑5.1. Workforce Development Programs.
(a) Community colleges shall assist in the preemployment and in‑service training of employees in industry, business, agriculture, health occupation and governmental agencies. Such training shall include instruction on worker safety and health standards and practices applicable to the field of employment. The State Board of Community Colleges shall make appropriate regulations including the establishment of maximum hours of instruction which may be offered at State expense in each in‑plant training program. No instructor or other employee of a community college shall engage in the normal management, supervisory and operational functions of the establishment in which the instruction is offered during the hours in which the instructor or other employee is employed for instructional or educational purposes.
(b) The North Carolina Community College System's New and Expanding Industry Training (NEIT) Program Guidelines, which were adopted by the State Board of Community Colleges on April 18, 1997, apply to all funds appropriated for the Program after June 30, 1997. A project approved as an exception under these Guidelines, or these Guidelines as modified by the State Board of Community Colleges, shall be approved for one year only.
(c) The State Board of Community Colleges shall report to the Joint Legislative Education Oversight Committee on September 1 of each year on expenditures for the New and Expanding Industry Training Program each fiscal year. The report shall include, for each company or individual that receives funds for the New and Expanding Industry Training Program:
(1) The total amount of funds received by the company or individual;
(2) The amount of funds per trainee received by the company or individual;
(3) The amount of funds received per trainee by the community college training the trainee;
(4) The number of trainees trained by company and by community college; and
(5) The number of years the companies or individuals have been funded.
(d) Funds available to the New and Expanding Industry Training Program shall not revert at the end of a fiscal year but shall remain available until expended.
(e) There is created within the North Carolina Community College System the Customized Industry Training (CIT) Program. The CIT Program shall offer programs and training services as new options for assisting existing business and industry to remain productive, profitable, and within the State. Before a business or industry qualifies to receive assistance under the CIT Program, the President of the North Carolina Community College System shall determine that:
(1) The business is making an appreciable capital investment;
(2) The business is deploying new technology; and
(3) The skills of the workers will be enhanced by the assistance.
The State Board shall report on an annual basis to the Joint Legislative Education Oversight Committee on:
(1) The total amount of funds received by a company under the CIT Program;
(2) The amount of funds per trainee received by that company;
(3) The amount of funds received per trainee by the community college delivering the training;
(4) The number of trainees trained by the company and community college; and
(5) The number of years that company has been funded.
The State Board shall adopt rules and policies to implement this section."
SECTION 8.4.(c) Notwithstanding any other provision of law, the State Board of Community Colleges may use funds appropriated to it for the New and Expanding Industry Training Program to operate programs under the Customized Industry Training Program.
SECTION 8.4.(d) G.S. 115D‑5.1(d), as enacted by this section, becomes effective June 30, 2005.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
REPORT ON THE ADEQUACY OF MULTICAMPUS FUNDS
SECTION 8.5. The General Assembly finds that additional data are needed to determine the adequacy of multicampus and off‑campus center funds; therefore, multicampus colleges and colleges with off‑campus centers shall report annually, beginning September 1, 2005, to the Community Colleges System Office on all expenditures by line item of funds used to support their multicampuses and off‑campus centers. The Community Colleges System Office shall report on these expenditures to the Education Appropriation Subcommittees of the House of Representatives and the Senate, the Office of State Budget and Management, and the Fiscal Research Division by October 1 of each year.
Notwithstanding any other provision of law, funds appropriated to the Community Colleges System Office for multicampus colleges or off‑campus centers shall be used only for the administration of the multicampus college or off‑campus center for which the funds were allotted. These funds shall not be transferred to any other campus or center, or used for any other purpose.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
EDUCATION PROGRAM AUDITING FUNCTION
SECTION 8.6. G.S. 115D‑5(m) reads as rewritten:
"(m) The State Board
of Community Colleges shall require auditors of community college programs to
use a statistically valid sample size in performing program audits of community
colleges. The State Board of Community Colleges shall maintain an
education program auditing function that conducts an annual audit of each
community college operating under the provisions of this Chapter. The purpose
of the annual audit shall be to ensure that college programs and related fiscal
operations comply with State law, State regulations, State Board policies, and
System Office guidance. The State Board of Community Colleges shall require
auditors of community college programs to use a statistically valid sample size
in performing program audits of community colleges. All education program audit
findings shall be forwarded to the college president, local college board of
trustees, the State Board of Community Colleges, and the State Auditor. The
State Board shall assess a twenty‑five percent (25%) fiscal penalty in
addition to the audit exception on all audits of both dollars and student
membership hours excepted when the audit exceptions result from nonprocessing
errors."
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
FERRY BOAT OPERATOR TRAINING FEASIBILITY STUDY
SECTION 8.7.(a) The State Board of Community Colleges, in consultation with the Ferry Division of the Department of Transportation, shall study the need for training for ferry boat operators. In conducting the study, the State Board shall consider the following:
(1) Types of training needed and whether it is feasible for the community colleges to provide this training.
(2) Estimated number of students.
(3) Estimated employment opportunities for the students.
(4) Start‑up costs for the program and resources for those costs.
(5) Location of the training.
SECTION 8.7.(b) The State Board shall report to the Joint Legislative Education Oversight Committee and the Joint Legislative Transportation Oversight Committee on its findings and recommendations no later than December 1, 2005.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
EXTEND THE SUNSET ON TRAINING AND REEMPLOYMENT CONTRIBUTIONS MADE BY EMPLOYERS
SECTION 8.8.(a) Section 8 of S.L. 1999‑321, as amended by Section 30.5(f) of S.L. 2001‑424, reads as rewritten:
"Section 8. Section 1 of this
act is effective with respect to calendar quarters beginning on or after April
1, 1999. Section 7 of this act becomes effective July 1, 1999. The remainder of
this act is effective with respect to calendar quarters beginning on or after
January 1, 2000. G.S. 96‑6.1, as enacted by Section 2 of this
act, is repealed effective with respect to calendar quarters beginning on or
after January 1, 2006."
SECTION 8.8.(b) G.S. 96‑6.1 is amended by adding a new subsection to read:
"(c) Sunset. – This section is repealed effective with respect to calendar quarters beginning on or after January 1, 2011."
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
Community College Innovative Learning Fund
SECTION 8.9. There is created within the North Carolina Community College System (NCCCS) The Innovative Learning Fund. The purpose of the Fund is to assist colleges with infrastructure needs as they evolve to meet the needs of the changing economy. The President of the NCCCS, in consultation with the State Board of Community Colleges, may make grants to qualified colleges of up to one million dollars ($1,000,000), for planning, equipment, or technology for innovative or lifelong learning centers. The NCCCS shall consult with the seven Economic Development Partnerships, the local boards of trustees, the constituent institutions of The University System when appropriate, and any other entity it deems necessary to prioritize and determine which projects should receive grants from the Fund. In awarding the grants, the President and the State Board shall consider the following:
(1) The Vision Plan of the Economic Development Partnership where the project will be located;
(2) The ability of the county to provide funding for the project;
(3) The maintenance of effort by the county to support the existing mission of the college;
(4) The impact the innovative learning center will have on economic development in the county and region; and
(5) The existence of any other innovative learning centers in the region.
Priority shall be given to projects that directly impact teacher education, allied health, economic development, or public safety.
Funds appropriated in this act for the Innovative Learning Fund shall not revert at the end of the 2005‑2006 fiscal year but shall remain available until expended.
Requested by: Senators Rand, Lucas, Swindell, Garrou, Dalton, Hagan
Carryforward for Colleges in Economically Disadvantaged Counties
SECTION 8.10.(a) Notwithstanding G.S. 143‑18 or any other provision of law, a community college may retain and carry‑forward its General Fund current operations credit balance remaining at the end of the fiscal year, if the county in which the main campus of the community college is located:
(1) Is designated as a Tier 1 or Tier 2 county in accordance with G.S. 105‑129.3;
(2) Had an unemployment rate greater than or equal to seven percent (7%) in calendar year 2004; and
(3) Is designated as a Low‑Wealth County under Section 7.6 of this act, whose wealth as calculated by the Low‑Wealth Formula is eighty percent (80%) or less of the State Average.
SECTION 8.10.(b) Colleges who serve counties that meet the criteria outlined in subsection (a) of this section, but whose main campuses are not located in such counties, may carry‑forward the percentage of the funds remaining at the end of the fiscal year equal to the percentage of total full‑time equivalent students served in those counties that meet the criteria, as determined by the North Carolina Community Colleges System Office.
SECTION 8.10.(c) Allowable carryforwards under this section shall be calculated prior to the calculation of Performance Funding as described in G.S. 115D‑31.3.
SECTION 8.10.(d) This section becomes effective June 30, 2005.
Requested by: Senators Rand, Lucas, Swindell, Garrou, Dalton, Hagan
DEFENSE TECHNOLOGY INNOVATION CENTER
SECTION 8.11. Funds appropriated in this act for North Carolina Electronics and Information Technologies Association's Defense Technology Innovation Center shall be used for the following:
(1) Site selection and acquisition, including the purchase or lease of real property to house the Center; the construction of buildings or other site structures; the improvement or refurbishment of existing structures to provide appropriate laboratory and administrative space; and the improvement of existing infrastructure at the facility, including improvements to utility, telecommunications, and Internet infrastructure.
(2) Equipment acquisition, including acquisition of laboratory equipment and supplies and office furniture, equipment, and supplies.
(3) Employment of staff to support the mission of the Center and to oversee day‑to‑day operations of the Center.
(4) Implementation of a comprehensive business and marketing plan for the Center.
(5) Development of a tenant screening process and the recruitment of appropriate tenants for the Center.
(6) Administration and operation of the Center and the development of a sustainable business plan for the Center.
PART iX. UNIVERSITIES
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
SECTION 9.1. The Chancellor of each constituent institution shall report to the Board of Governors of The University of North Carolina on the management flexibility adjustments made to the General Fund budget codes in order to meet the reserve amounts for that institution. The President of The University of North Carolina shall report to the Board of Governors of The University of North Carolina on the reductions made to the General Fund budget codes controlled by the Board in order to meet the reduction reserve amounts for those entities. The Board of Governors shall make a summary report to the Office of State Budget and Management and the Fiscal Research Division by December 31, 2005, on all reductions made by these entities and constituent institutions in order to reduce the budgets by the targeted amounts.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
ENROLLMENT GROWTH FUND/Encourage Partnerships for new 2 + 2 Programs
SECTION 9.2.(a) The University of North Carolina Board of Governors' Task Force on Meeting Teacher Supply and Demand called for the President to develop a plan for enrollment growth in the University System's teacher education programs to respond to the State's shortage of teachers. In a presentation to the Joint Legislative Education Oversight Committee and to the Board of Governors, a commitment was made to increase the number of teacher education graduates in 2005‑2006 and in 2006‑2007. The Office of the President of The University of North Carolina shall obtain plans from each campus as to how they will maintain their current enrollment in the teacher education programs and achieve their growth targets to ensure such increases in those programs occur. Plans may include using enrollment growth funds for targeted admissions, enhanced student support, and advising, recruiting, increases in faculty in necessary instructional areas that lead to certification, and other methods the Office of the President believes will achieve those results. The Office of the President shall report back to the Office of State Budget and Management and the Joint Legislative Education Oversight Committee no later than December 30, 2005, on each campus's plan. No later than March 31, 2006, the Office of the President shall submit a report on progress towards meeting this priority for the 2006‑2007 academic year, based on each campus's current students in the education programs, and the students who have been accepted for the 2006‑2007 fiscal year who are enrolling in the education programs. The report shall also explain the distribution of enrollment growth funds by specific initiative.
SECTION 9.2.(b) The Board of Governors of The University of North Carolina and the State Board of Community Colleges shall strongly encourage the constituent institutions and the community colleges that do not currently have 2 + 2 programs that emphasize teacher education to design and enter into formal partnerships to offer those 2 + 2 programs. The Board of Governors and the Board of Community Colleges shall report to the Joint Legislative Education Oversight Committee by February 1, 2006, regarding the status of existing 2 + 2 programs and any new partnerships established.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
UNC‑NCCCS JOINT INITIATIVE FOR TEACHER EDUCATION AND RECRUITMENT
SECTION 9.3.(a) Funds appropriated in this act to The University of North Carolina for the UNC‑NCCCS Joint Initiative for Teacher Education and Recruitment shall be used to establish eight positions. These individuals shall have an office in and work with staff in the Regional Alternative Licensure Centers of the Department of Public Instruction. Their responsibilities are to assist in increasing the number of certified teachers in the public schools of North Carolina. To accomplish this, their specific tasks are as follows:
(1) Resolve curriculum issues between The University of North Carolina campuses and the community colleges within each region to ensure seamless articulation;
(2) Serve as licensure advisors to prospective teachers and assist with individual reviews for lateral entry candidates;
(3) Offer admissions advice to community college students seeking to transfer to a four‑year institution; and
(4) Recruit prospective teachers on community college campuses.
Funds have been included in the appropriation to ensure these staff members can travel routinely among all the University System campuses and community college sites within a region.
SECTION 9.3.(b) The results of this initiative shall be reported annually, and shall include at a minimum, the following performance outcomes by region in which the advisors are working:
(1) Number of community college students articulated and working toward teacher licensure, their "base" community college, and The University of North Carolina institution to which they have moved;
(2) Number of lateral entry teachers worked with by these advisors who are actively pursuing certification, and the number licensed;
(3) Head count of the number of students in the process of receiving courses towards certification, their home county, where/at what institution(s) they are taking the course(s), and whether they are taking the course by regular attendance or via distance education (or the respective percentages if both methods are being employed);
(4) Total full‑time equivalencies (FTE's) and student credit hours that the head count in subdivision (3) of this subsection represents;
(5) Articulation issues and curriculum changes effectively made as a result of these advisors; and
(6) Articulation issues that are under discussion but have not been satisfactorily resolved.
SECTION 9.3.(c) These results shall be reported by September 1, 2006, and annually thereafter to the State Board of Education, the Board of Governors of The University of North Carolina, the State Board of Community Colleges, the Education Cabinet, the Joint Legislative Education Oversight Commission, and the Office of State Budget and Management.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
ENROLLMENT GROWTH FUNDING MODEL
SECTION 9.4. The Office of State Budget and Management, jointly with The University of North Carolina and the Fiscal Research Division of the General Assembly, shall conduct a comprehensive review of the enrollment funding model to review the assumptions contained within each element of the formula, to obtain current benchmark information related to specific elements within the formula, and to examine the impact of alternative elements and assumptions. An alternative to the current model shall be the result of this analysis. This alternative shall be used to prepare a request for enrollment growth funding for the budget to be submitted for the 2006 Session of the General Assembly and shall be shown in comparison to the use of the current formula.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
UNC‑NCCCS 2+2 E‑LEARNING INITIATIVE
SECTION 9.5. Funds appropriated in this act to The University of North Carolina and the North Carolina Community College System for the UNC‑NCCCS 2+2 E‑Learning Initiative shall be used to fund further development of online courses for 2+2 programs. Based on a mutually agreed upon decision by the State Board of Education Chairman, the President of the North Carolina Community College System, and the President of The University of North Carolina as to the areas of greatest need, funds are available to support joint technology development, systems to track student progress and articulation between a North Carolina community college and a University of North Carolina campus, and to develop technology to support online courses and 2+2 programs.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
USE OF ESCHEAT FUND FOR NEED‑BASED FINANCIAL AID PROGRAMS
SECTION 9.6.(a) There is appropriated from the Escheat Fund income to the Board of Governors of The University of North Carolina the sum of sixty‑seven million two hundred forty‑eight thousand sixteen dollars ($67,248,016) for fiscal year 2005‑2006 and the sum of sixty‑seven million six hundred thirty‑eight thousand sixteen dollars ($67,638,016) for fiscal year 2006‑2007; and to the State Board of Community Colleges the sum of thirteen million nine hundred eighty‑one thousand two hundred two dollars ($13,981,202) for fiscal year 2005‑2006 and the sum of thirteen million nine hundred eighty‑one thousand two hundred two dollars ($13,981,202) for fiscal year 2006‑2007. These funds shall be allocated by the North Carolina State Educational Assistance Authority (SEAA) for need‑based student financial aid in accordance with G.S. 116B‑7.
The SEAA shall perform all of the administrative functions necessary to implement this program of financial aid. The SEAA shall conduct periodic evaluations of expenditures of the Scholarship Programs to determine if allocations are utilized to ensure access to institutions of higher learning and to meet the goals of the respective programs. The SEAA may make recommendations for redistribution of funds to The University of North Carolina and the President of the Community College System regarding their respective scholarship programs, who then may authorize redistribution of unutilized funds for a particular fiscal year.
SECTION 9.6.(b) There is appropriated from the Escheat Fund to the Board of Governors of The University of North Carolina the sum of seven hundred eighty thousand dollars ($780,000) for the 2005‑2006 fiscal year and the sum of one million one hundred seventy thousand dollars ($1,170,000) for the 2006‑2007 fiscal year to be allocated to the SEAA for need‑based student financial aid to be used in accordance with G.S. 116B‑7 and this act. The SEAA shall use these funds only to provide scholarship loans (known as the Millennium Teaching Scholarship Loan Program) to North Carolina high school seniors interested in preparing to teach in the State's public schools who also enroll at any of the Historically Black Colleges and Universities that do not have Teaching Fellows. An allocation of 20 grants of six thousand five hundred dollars ($6,500) each shall be given to the three universities without any Teaching Fellows for the purposes specified in this subsection.
The SEAA shall administer these funds and shall establish any additional criteria needed to award these scholarship loans, the conditions for forgiving the loans, and the collection of the loan repayments when necessary.
SECTION 9.6.(c) If the interest income generated from the Escheat Fund is insufficient to pay the appropriations made in subsections (a) and (b) of this section, the difference may be taken from the Escheat Fund principal to reach the appropriations referenced in this section; however, under no circumstances shall the Escheat Fund principal be reduced below the sum of four hundred million dollars ($400,000,000).
SECTION 9.6.(d) All obligations to students for uses of the funds set out in sections that were made before the date this act becomes law shall be fulfilled as to students who remain eligible under the provisions of the respective programs.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
SECTION 9.7. The Office of State Budget and Management shall conduct a study to identify and analyze the distance education programs at the institutions in the University System. The study shall identify any duplication in course and program offerings, leader courses and programs at campuses in a particular area of study, the cost of developing online courses, and determine which campuses are best suited to offer a particular course or program of study. The findings of the study shall be reported to the Joint Legislative Education Oversight Committee no later than April 30, 2006.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
INFORMATION TECHNOLOGY PROCUREMENT
SECTION 9.8. For purposes of purchasing hardware, software licenses, and multiyear maintenance agreements, The University of North Carolina and its constituent institutions may participate in the aggregation of purchasing administered by the Office of State Technology Services, as defined in G.S. 147‑33.72F. The Office of State Budget and Management shall conduct a cost comparison study of hardware, software license, and multiyear maintenance agreement purchases made by The University of North Carolina and its constituent institutions and by the Office of State Technology Services, to determine if further aggregation is cost‑justified. The Study shall also include an analysis of aggregated purchases by the University System and the effect of educational discounts available to the University System. The report of comparative unit costs shall be completed by December 31, 2005.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
BOARD OF GOVERNORS' DENTAL SCHOLARSHIPS
SECTION 9.9.(a) The current Board of Governors' Dental Scholarship Program, under the purview of the Board of Governors of The University of North Carolina, shall make any awards to students admitted after July 1, 2005, as scholarship loan awards. The Board of Governors' Dental Scholarship Program is administered by the Board of Governors of The University of North Carolina. The Board of Governors' Dental Scholarship Program shall be used to provide a four‑year scholarship loan of relevant tuition and fees, mandatory medical insurance, required laptop computers for first‑year students, required dental equipment, and an annual payment of five thousand dollars ($5,000) per year to students who have been accepted for admission to the School of Dentistry at the University of North Carolina at Chapel Hill. The Board may adopt standards, including minimum grade point average and SAT scores, for awarding these scholarship loans to ensure that only the most qualified students receive them. The Board shall make an effort to identify and encourage minority and economically disadvantaged youth to enter the program. All scholarship loans shall be evidenced by notes made payable to the Board that shall bear interest at the rate of ten percent (10%) per year beginning September 1 after completion of the program, or immediately after termination of the scholarship loan, whichever is earlier. The scholarship loan may be terminated by the recipient withdrawing from school or by the recipient not meeting the standards set by the Board. The Board shall forgive the loan if, within seven years after graduation, the recipient practices dentistry in North Carolina for four years. The Board shall also forgive the loan if it finds that it is impossible for the recipient to practice medicine in North Carolina for four years, within seven years after graduation, because of the death or permanent disability of the recipient. All unused funds appropriated to or otherwise received by the Board for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds shall revert to the General Fund at the end of each fiscal year.
SECTION 9.9.(b) Any dental scholarship awarded prior to July 1, 2005, shall remain a scholarship and shall not be converted to a scholarship loan unless the recipient agrees to the conversion.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
BOARD OF GOVERNORS' MEDICAL SCHOLARSHIPS
SECTION 9.10.(a) The current Board of Governors' Medical Scholarship Program, under the purview of the Board of Governors of The University of North Carolina, shall make any awards to students admitted after July 1, 2005, as scholarship loan awards. The Board of Governors' Medical Scholarship Program is administered by the Board of Governors of The University of North Carolina. The Board of Governors' Medical Scholarship Program shall be used to provide a four‑year scholarship loan of relevant tuition and fees, mandatory medical insurance, required laptop computers, and an annual payment of five thousand dollars ($5,000) per year to students who have been accepted for admission to either Duke University School of Medicine, Brody School of Medicine at East Carolina University, the University of North Carolina at Chapel Hill School of Medicine, or the Wake Forest University School of Medicine. The Board may adopt standards, including minimum grade point average and SAT scores, for awarding these scholarship loans to ensure that only the most qualified students receive them. The Board shall make an effort to identify and encourage minority and economically disadvantaged youth to enter the program. All scholarship loans shall be evidenced by notes made payable to the Board that shall bear interest at the rate of ten percent (10%) per year beginning September 1 after completion of the program, or immediately after termination of the scholarship loan, whichever is earlier. The scholarship loan may be terminated by the recipient withdrawing from school or by the recipient not meeting the standards set by the Board. The Board shall forgive the loan if, within seven years after graduation, the recipient practices medicine in North Carolina for four years. The Board shall also forgive the loan if it finds that it is impossible for the recipient to practice medicine in North Carolina for four years, within seven years after graduation, because of the death or permanent disability of the recipient. All unused funds appropriated to or otherwise received by the Board for scholarships, all funds received as repayment of scholarship loans, and all interest earned on these funds, shall revert to the General Fund at the end of each fiscal year.
SECTION 9.10.(b) Any medical scholarship awarded prior to July 1, 2005, shall remain a scholarship and shall not be converted to a scholarship loan unless the recipient agrees to the conversion.
Requested by: Senators Swindell, Lucas, Garrou, Dalton, Hagan
SECTION 9.11.(a) Article 23 of Chapter 116 of the General Statutes is amended by adding the following new section:
"§ 116‑209.38. Future Teachers of North Carolina Scholarship Loan Fund.
(a) There is established the Future Teachers of North Carolina Scholarship Loan Fund. The purpose of the Fund is to provide a two‑year scholarship loan of six thousand five hundred dollars ($6,500) per year for any North Carolina student pursuing a college degree to teach in the public schools of the State. The scholarship loan shall be paid only for the student's junior and senior years. The scholarship loan is available if the student is enrolled in a State institution of higher education or a private institution of higher education located in this State that has an accredited teacher preparation program for students planning to become certified teachers in North Carolina. The State Education Assistance Authority shall administer the Fund and shall award 100 scholarship loans annually.
(b) The Board of Governors of The University of North Carolina, in consultation with the State Board of Education and the State Board of Community Colleges, shall develop the criteria for awarding the scholarship loans under this section and shall adopt very stringent standards for awarding these scholarship loans to ensure that only the best students receive them. Additional criteria for awarding a scholarship loan under this section shall include all of the following:
(1) The student is one who either: (i) maintained a "B" or better average in college and is enrolled as a junior or senior in a teacher preparation program at any of the institutions described by subsection (a) of this section; or (ii) completed a college transfer curriculum at a community college in the State's community college system, maintained a "B" or better average in the community college courses, and is accepted and enrolled in a teacher preparation program at one of the institutions described by subsection (a) of this section.
(2) The student agrees to become certified in math, science, special education, or English as a Second Language and teach full‑time in that subject area in a North Carolina public school for three years within four years after graduation.
(3) Any additional criteria that the Board of Governors of The University of North Carolina, in consultation with the State Board of Education and the State Board of Community Colleges, considers necessary to administer the Fund effectively.
(c) If a student who is awarded a scholarship loan under this section fails to comply with the provisions of this section or the terms of the agreement awarding the scholarship loan, then the student shall repay the full amount of the scholarship loan provided to the student and the appropriate amount of interest as determined by the State Education Assistance Authority.
(d) The Board of Governors of The University of North Carolina, the State Board of Education, and the State Board of Community Colleges shall: (i) prepare a clear written explanation of the Future Teachers of North Carolina Scholarship Fund and the information regarding the availability and criteria for awarding the scholarship loans, and (ii) shall provide that information to the appropriate counselors in each local school system and the appropriate institutions of higher education and shall charge those counselors to inform students about the scholarship loans and to encourage them to apply for the scholarship loans.
(e) The Board of Governors of The University of North Carolina shall adopt rules to implement this section.
(f) The Board of Governors of The University of North Carolina shall report to the Joint Legislative Education Oversight Committee by March 1 each year regarding the Fund and scholarship loans awarded from the Fund."
SECTION 9.11.(b) Of the funds appropriated in this act to the State Education Assistance Authority the sum of six hundred fifty thousand dollars ($650,000) for the 2005‑2006 fiscal year and the sum of one million three hundred thousand dollars ($1,300,000) for the 2006‑2007 fiscal year shall be used to implement this act.
Requested by: Senators Lucas, Swindell, Nesbitt, Garrou, Dalton, Hagan
UNC‑Asheville Retain Sale Proceeds
SECTION 9.12. Notwithstanding any other provision of law, the University of North Carolina at Asheville may retain the proceeds from the sale of its existing chancellor's residence and appurtenant land. The University of North Carolina at Asheville may use the proceeds from the sale of its existing chancellor's residence and the appurtenant land to construct or otherwise acquire a new chancellor's residence. Proceeds from the sale not used for that purpose within two fiscal years of the sale shall revert to the General Fund.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
UNC BOND PROJECT MODIFICATIONS
SECTION 9.13.(a) Pursuant to Section 2(b) of S.L. 2000‑3, the General Assembly finds that it is in the best interest of the State to respond to current educational and research program requirements at Elizabeth City State University by changing the scope of "Mitchell‑Lewis Residence Hall‑Comprehensive Renovation" to be a replacement project instead of a renovation. Section 2(a) of S.L. 2000‑3 is therefore amended in the portion under Elizabeth City State University by replacing "Mitchell Lewis Residence Hall‑Comprehensive Renovation" with "Mitchell Lewis Residence Hall‑Replacement."
SECTION 9.13.(b) Pursuant to Section 2(b) of S.L. 2000‑3, the General Assembly finds that it is in the best interest of the State to respond to current educational and research program requirements at North Carolina Central University by the cancellation of "Latham Residence Hall‑Comprehensive Renovation". The unused monies from "Latham Residence Hall‑Comprehensive Renovation," should be transferred to "Eagleson Residence Hall‑Comprehensive Renovation". Section 2(a) of S.L. 2000‑3 is therefore amended in the portion under North Carolina Central University by reducing the money allocated to "Latham Residence Hall‑Comprehensive Renovation" by reducing that amount by two million three hundred seventy‑three thousand four hundred fifty‑seven dollars ($2,373,457) to a total of one million thirty‑eight thousand one hundred forty‑three dollars ($1,038,143) and by increasing the allocation to "Eagleson Residence Hall‑Comprehensive Renovation" by two million three hundred seventy‑three thousand four hundred fifty‑seven dollars ($2,373,457) to create a total allocation of nine million two hundred forty‑two thousand nine hundred fifty‑seven dollars ($9,242,957).
SECTION 9.13.(c) Pursuant to Section 2(b) of S.L. 2000‑3, the General Assembly finds that it is in the best interest of the State to respond to current educational and research program requirements at the University of North Carolina at Wilmington by the cancellation of "King Hall Classroom Building‑Comprehensive Renovation", and by transferring the unused funds to the following projects listed under the portion entitled University of North Carolina at Wilmington: "Academic & Classroom Facilities," "General Classroom Bldg,", "Hinton James Hall Classroom Bldg. – Comprehensive Renovation," "Friday Hall Laboratory Bldg. – Comprehensive Renovation," "Kenan Auditorium – Comprehensive Renovation." Section 2(a) of S.L. 2000‑3 is therefore amended in the portion under the University of North Carolina at Wilmington by:
(1) Reducing the allocation to "King Hall Classroom Building – Comprehensive Renovation" by three million one hundred sixty‑eight thousand six hundred eighty‑nine dollars ($3,168,689) to create a total allocation of three hundred fifty‑eight thousand seven hundred eleven dollars ($358,711).
(2) Increasing the allocation to "General Classroom Building" by six hundred seventy‑nine thousand seven hundred seventy‑eight dollars ($679,778) to create a total allocation of thirteen million three hundred twenty‑six thousand seven hundred seventy‑eight dollars ($13,326,778).
(3) Increasing the allocation to "Academic & Classroom Facilities" by nine hundred ninety‑one thousand one hundred twenty‑three dollars ($991,123) to create a total allocation of thirty‑four million twenty‑three thousand two hundred twenty‑three dollars ($34,023,223).
(4) Increasing the allocation to "Hinton James Hall Classroom Building – Comprehensive Renovation" by one hundred seventy‑six thousand six hundred nine dollars ($176,609) to create a total allocation of two million eight hundred six thousand five hundred sixty‑one dollars ($2,806,561).
(5) Increasing the allocation to "Kenan Auditorium – Comprehensive Renovation" by one hundred fifty‑one thousand seven hundred forty‑nine dollars ($151,749) to create a total allocation of two million seventy‑three thousand seven hundred twenty‑four dollars ($2,073,724).
(6) Increasing the allocation to "Friday Hall Laboratory Building – Comprehensive Renovation" by one million one hundred sixty‑nine thousand four hundred thirty dollars ($1,169,430) to create a total allocation of eight million eight hundred sixty‑two thousand eight hundred thirty dollars ($8,862,830).
SECTION 9.13.(d) Pursuant to Section 2(b) of S.L. 2000‑3, the General Assembly finds that it is in the best interest of the State to respond to current educational and research program requirements at the University of North Carolina at Pembroke by the cancellation of "West Residence Hall – Comprehensive Renovation" and by transferring the unused funds to a new project, "North and Belk Residence Halls–Fire Safety Improvements and Renovations" and by the cancellation of "Campuswide Infrastructure Improvements" and by transferring those unused funds to a new project, "Biotechnology Teaching Labs and Classroom Building". Section 2(a) of S.L. 2000‑3 is therefore amended in the portion under University of North Carolina at Pembroke by:
(1) Reducing the allocation to "West Residence Hall – Comprehensive Renovation" by eight hundred seventy‑nine thousand three hundred dollars ($879,300) to a total allocation of ninety‑eight thousand dollars ($98,000).
(2) Reducing the allocation to "Campuswide Infrastructure Improvements" by one million seven hundred thirty thousand three hundred eighty‑two dollars ($1,730,382) to a total allocation of two hundred sixty‑six thousand two hundred eighteen dollars ($266,218).
(3) Adding a new project entitled "North and Belk Residence Halls – Fire Safety Improvements and Renovations $879,300".
(4) Adding a new project entitled "Biotechnology Teaching Labs and Classroom Building $1,730,382".
SECTION 9.13.(e) Nothing in this section is intended to supersede any other requirement of law or policy for approval of the substituted capital improvement projects.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
AMEND NC SCHOOL OF SCIENCE AND MATH TUITION GRANT
SECTION 9.14.(a) G.S. 116‑238.1(f) reads as rewritten:
"(f) Notwithstanding any
other provision of this section, no tuition grant awarded to a student under
this section shall exceed the cost of tuition of attendance at the
constituent institution at which the student is enrolled. If a student, who is
eligible for a tuition grant under this subsection, also receives a scholarship
or other grant covering the cost of tuition attendance at the
constituent institution for which the tuition grant is awarded, then the amount
of the tuition grant shall be reduced by an appropriate amount determined by
the State Education Assistance Authority. The State Education Assistance
Authority shall reduce the amount of the tuition grant so that the sum of all
grants and scholarship aid covering the cost of tuition attendance received
by the student, including the tuition grant under this section, shall not
exceed the cost of tuition attendance for the constituent
institution at which the student is enrolled. The cost of attendance, as
used in this subsection, shall be determined by the State Education Assistance Authority
for each constituent institution."
SECTION 9.14.(b) This section applies to any eligible student who is enrolled full‑time in The University of North Carolina after July 1, 2005.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
UNC‑CHAPEL HILL CONTINUE TO OPERATE HORACE WILLIAMS AIRPORT
SECTION 9.15. The University of North Carolina at Chapel Hill shall operate the Horace Williams Airport and continue air transportation support for the Area Health Education Centers (AHEC) and the public from that location until AHEC's Medical Air Operations have access to, or utilize, the Raleigh‑Durham International Airport (RDU) on a basis sufficient to serve adequately the needs of patients, physicians, and passengers associated with AHEC's statewide programs and activities. At that time, the University of North Carolina at Chapel Hill may close the Horace Williams Airport.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
North Carolina Agricultural and Technical State University Funds
SECTION 9.16. Of the funds appropriated by this act to the Board of Governors of The University of North Carolina for the 2005‑2006 fiscal year the sum of one million eighty‑eight thousand nine hundred forty‑one dollars ($1,088,941) shall be allocated to North Carolina Agricultural and Technical State University for agricultural and research extension programs. It is the intent of the General Assembly to fully fund these programs for the 2006‑2007 fiscal year.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
TRANSFER PROSPECTIVE TEACHER SCHOLARSHIP LOAN AND TEACHER ASSISTANT SCHOLARSHIP LOAN TO THE NC STATE EDUCATION ASSISTANCE AUTHORITY
SECTION 9.17.(a) The Scholarship Loan Fund for Prospective Teachers is transferred from the Department of Public Instruction to the State Education Assistance Authority. This transfer shall have all of the elements of a Type I transfer, as defined in G.S. 143A‑6.
SECTION 9.17.(b) G.S. 115C‑468 is recodified as G.S. 116‑209.33. G.S. 115C‑469, 115C‑470, and 115C‑472.1 are repealed. G.S. 115C‑471 is recodified as G.S. 116‑209.34.
SECTION 9.17.(c) G.S. 115C‑468 recodified by subsection (b) of this section as G.S. 116‑209.33 reads as rewritten:
"§
116‑209.33. Establishment of fund.Scholarship Loan Fund for
Prospective Teachers.
(a) There is established a revolving fund known as the "Scholarship Loan Fund for Prospective Teachers". The purpose of the Fund is to provide scholarship loans to qualified individuals who are pursuing college degrees to become teachers. The State Education Assistance Authority shall administer the Fund.
(b) Criteria The
State Education Assistance Authority, in consultation with the State Board of
Education, shall develop criteria for awarding scholarship loans from the
fund shall include measures the Fund. These criteria shall include:
(1) Measures of academic performance including grade point averages, scores on standardized tests, class rank, and recommendations of guidance counselors and principals.
(2) North Carolina residency. – For purposes of this section, residency shall be determined by the same standard as residency for tuition purposes pursuant to G.S. 116‑143.1.
(3) The geographic areas or subjects of instruction in which the demand for teachers is greatest.
(4) To the extent practical, an equal number of scholarships shall be awarded in each of the State's Congressional Districts.
(5) Any additional criteria that the State Education Assistance Authority considers necessary to administer the Fund effectively, including the following:
a. Consideration of the appropriate numbers of minority applicants and applicants from diverse socioeconomic backgrounds to receive scholarships pursuant to this section.
b. Consideration of the commitment an individual applying to receive funds demonstrates to the profession of teaching.
(c) The Superintendent of
Public InstructionState Education Assistance Authority may earmark each
year up to twenty percent (20%) of the funds available for scholarship
loans each yearunder this section for awards to applicants who
have been employed for at least one year as teacher assistants and who are
currently employed as teacher assistants. Preference for these scholarship
loans from funds earmarked for teacher assistants shall be given first to
applicants who worked as teacher assistants for at least five years and whose
positions as teacher assistants were abolished and then to applicants who
already hold a baccalaureate degree or who have already been formally admitted
to an approved teacher education program in North Carolina. The criteria for
awarding scholarship loans to applicants who worked as teacher assistants for
at least five years and whose positions as teacher assistants were abolished
shall include whether the teacher assistant has been admitted to an approved
teacher education program in North Carolina.for the Teacher Assistant Scholarship
Fund established in G.S. 116‑209.35.
The Superintendent of Public
Instruction may further earmark a portion of these funds each year for two‑year
awards to applicants who have been employed for at least one year as teacher
assistants to attend community colleges to get other skills of use in public
schools or to get an early childhood associate degree. The provisions of this
Article shall apply to these scholarship loans except that a recipient of one
of these scholarship loans may receive credit upon the amount due by reason of
the loan as provided in G.S. 115C‑471(5) or by working in a
nonteaching position in the North Carolina public schools or by working in a
licensed child care center in North Carolina."
SECTION 9.17.(d) G.S. 115C‑471 recodified by subsection (b) of this section as G.S. 116‑209.34 reads as rewritten:
"§
116‑209.34. Fund administered by State Superintendent of Public
Instruction; rules and regulations.State Education Assistance Authority;
rule‑making authority.
(a) The
Scholarship Loan Fund for Prospective Teachers shall be administered by the
State Superintendent of Public Instruction, under rules adopted by the State
Board of Education and subject to the following directions and limitations:The
State Education Assistance Authority shall establish the terms and conditions
for the scholarship loans consistent with the following:
(1) Any resident of North
Carolina who is interested in preparing to teach in the public schools of the
State may apply in writing to the State Superintendent of Public Instruction
for a regular scholarship loan in the amount of not more than two thousand five
hundred dollars ($2,500) per academic school year. An applicant who has been
employed for at least one year as a teacher assistant and who is currently
employed as a teacher assistant may apply for a scholarship loan from funds
earmarked for teacher assistants in the amount of not more than one thousand
two hundred dollars ($1,200) per academic school year.The loan amount
shall be not more than four thousand dollars ($4,000) per academic school year
for a maximum of four years for applicants who are pursuing a college degree to
become a teacher.
(2) All scholarship loans
shall be evidenced by notes made payable to the State Board of Education Authority
that bear interest at the rate of ten percent (10%) per annum from and
after September 1 following fulfillment by a prospective teacher of the
requirements for a certificate based upon the entry level degree; or in the
case of persons already teaching in the public schools who obtain scholarship
loans, the notes shall bear interest at the prescribed rate from and after September
1 of the school year beginning immediately after the use of the scholarship
loans; or in the event any such scholarship is terminated under the provisions
of subdivision (3) of this section, the notes shall bear interest from the date
of termination. A minor recipient who signs a note shall also obtain the
endorsement thereon by a parent, if there be a living parent, unless the
endorsement is waived by the Superintendent of Public Instruction. The minor
recipient shall be obligated upon the note as fully as if the recipient were of
age and shall not be permitted to plead such minority as a defense in order to
avoid the obligations undertaken upon the notes.year, beginning
September 1 after graduation, or immediately after termination of the
scholarship loan, whichever is earlier.
(3) Each recipient of a
scholarship loan under the provisions of this program shall be eligible for
scholarship loans each year until the recipient has qualified for a certificate
based upon the entry level degree, but the recipient shall not be so eligible
for more than the minimum number of years normally required for qualifying for
the certificate. The permanent withdrawal of any recipient from college or
failure of the recipient to do college work in a manner acceptable to the State
Superintendent of Public Instruction shall immediately forfeit the recipient's
right to retain the scholarship and subject the scholarship to termination by
the State Superintendent of Public Instruction in the Superintendent's
discretion. A scholarship loan shall be terminated upon the recipient's
withdrawing from school or a finding by the Authority that the recipient fails
to meet the standards set by the Authority. All terminated scholarships
shall be regarded as vacant and subject to being awarded to other eligible
persons.
(4) Except under
emergency conditions applicable to the State Superintendent of Public
Instruction, recipients of scholarship loans shall enter the public school
system of North Carolina at the beginning of the next school term after
qualifying for a certificate based upon the entry level degree or, in case of
persons already teaching in the public schools, at the beginning of the next
school term after the use of the loan. All teaching service for which the
recipient of any scholarship loan is obligated shall be rendered by August 31
of the seventh school year following graduation.
(5)(4) For each
full school year taught in a North Carolina public school, the recipient of a
scholarship loan shall receive credit upon the amount due by reason of the loan
equal to the loan amount for a school year as provided in the note plus credit
for the total interest accrued on that amount. Also, the recipient of the loan
shall receive credit upon the total amount due by reason of all four years of
the loan if the recipient teaches for three consecutive years, The
Authority shall forgive a four‑year loan if, within seven years after
graduation, the recipient teaches for four years at a North Carolina public
school or at a school operated by the United States government in North
Carolina. The Authority shall also forgive a four‑year loan if, within
seven years after graduation, the recipient teaches for three consecutive
years, or for three years interrupted only by an approved leave of absence,
at a North Carolina public school that is in a low‑performing school
system or a school system on warning status at the time the recipient accepts
employment with the local school administrative unit. In lieu of teaching in
the public school, a recipient may elect to pay in cash the full amount of
scholarship loans received plus interest then due thereon or any part thereof
that has not been canceled by the State Board of Education by reason of
teaching service rendered.For loans of less than four years, the
Authority shall forgive one year for each year the recipient teaches, within
four years of graduation, at a North Carolina public school or a school
operated by the United States government in North Carolina.
(6)(5) If any
recipient of a scholarship loan dies during the period of attendance at a
college or university under a scholarship loan or before the scholarship loan
is satisfied by payment or teaching service, any balance shall be automatically
canceled.
If any
recipient of a scholarship loan fails to fulfill the recipient's obligations
under subdivision (4) of this section, other than as provided above, the amount
of the loan and accrued interest, if any, shall be due and payable from the
time of failure to fulfill the recipient's obligations. The Authority
may forgive or reduce any loan payment if the Authority considers that
extenuating circumstances exist that would make teaching or repayment
impossible.
(7)(6) The State
Superintendent of Public Instruction shall award scholarship loans with due
consideration to factors and circumstances such as aptitude, purposefulness,
scholarship, character, financial need, and geographic areas or subjects of
instruction in which the demands for teachers are greatest. Since the primary
purpose of this Article is to attract worthy young people to the teaching
profession, preference for scholarship loans, except for the scholarship loans
from funds earmarked for teacher assistants, shall be given to high school
seniors in the awarding of scholarships. In awarding scholarship loans from
funds earmarked for teacher assistants, preference shall be given to applicants
who have already earned a baccalaureate degree or who have been formally
admitted to an approved teacher education program in North Carolina.The
Authority shall ensure that all repayments, including the accrued interest, are
placed in the Fund.
(b) The State Education Assistance Authority, in consultation with the State Board of Education, shall adopt rules to implement G.S. 116‑209.33, 116‑209.34, and 116‑209.35."
SECTION 9.17.(e) This section becomes effective January 1, 2006, and applies to scholarship loans awarded on or after that date.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
University System and Community College System Joint Study of Higher Education Strategy/Amend Reporting Requirement
SECTION 9.18. Section 6.2 of S.L. 2004‑179 reads as rewritten:
"SECTION 6.2. These
studies shall be designed to provide information and recommendations that will
assist the General Assembly in setting priorities for funding to address the
strategic higher education needs of the State. The Board of Governors, the
State Board, and their consultant shall periodically report their findings to a
higher education programming subcommittee of the Joint Legislative Education
Oversight Committee. The two boards and their consultant shall report the
preliminary results of the study to the General Assembly and to the Joint
Legislative Education Oversight Committee by April 15, 2005, June 15,
2005, and shall file a final report and recommendations with the General
Assembly and the Joint Legislative Education Oversight Committee no later than December
31, 2005.December 31, 2006."
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
UNC Research Institutions May Increase Tuition
SECTION 9.19.(a) G.S. 116‑143 reads as rewritten:
"§ 116‑143. State‑supported institutions of higher education required to charge tuition and fees.
The Except as provided
in G.S. 116‑143.6, the Board of Governors of the University of
North Carolina shall fix the tuition and fees, not inconsistent with actions of
the General Assembly, at the institutions enumerated in G.S. 116‑4
in such amount or amounts as it may deem best, taking into consideration the
nature of each institution and program of study and the cost of equipment and
maintenance; and each institution shall charge and collect from each student,
at the beginning of each semester or quarter, tuition, fees, and an amount
sufficient to pay other expenses for the term.
In the event that said students are unable to pay the cost of tuition and required academic fees as the same may become due, in cash, the said several boards of trustees are hereby authorized and empowered, in their discretion, to accept the obligation of the student or students together with such collateral or security as they may deem necessary and proper, it being the purpose of this Article that all students in State institutions of higher learning shall be required to pay tuition, and that free tuition is hereby abolished.
Inasmuch as the giving of tuition and fee waivers, or especially reduced rates, represent in effect a variety of scholarship awards, the said practice is hereby prohibited except when expressly authorized by statute or by the Board of Governors of the University of North Carolina; and, furthermore, it is hereby directed and required that all budgeted funds expended for scholarships of any type must be clearly identified in budget reports.
Notwithstanding the above provision relating to the abolition of free tuition, the Board of Governors of the University of North Carolina may, in its discretion, provide regulations under which a full‑time faculty member of the rank of full‑time instructor or above, and any full‑time staff member of the University of North Carolina may during the period of normal employment enroll for not more than one course per semester in the University of North Carolina free of charge for tuition, provided such enrollment does not interfere with normal employment obligations and further provided that such enrollments are not counted for the purpose of receiving general fund appropriations."
SECTION 9.19.(b) Article 14 of Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116‑143.6. Board of Trustees of a Research University I campus may increase tuition without approval of the Board of Governors.
(a) Notwithstanding G.S. 116‑11(7) and G.S. 116‑143, the Board of Trustees of a constituent institution designated as a Research University I campus of The University of North Carolina may set undergraduate tuition for an academic year. In considering tuition, the Boards of Trustees shall take into account that undergraduate tuition for North Carolina residents shall remain affordable to ensure accessibility, as required by Section 9 of Article IX of the North Carolina Constitution, and shall take the appropriate steps to increase financial aid accordingly and to ensure that the annual undergraduate in‑State tuition rate remains in the lowest quartile of that constituent institution's national public peers.
Any additional revenues derived from a tuition increase set under this section shall remain available for use on that campus and are in addition to the operating budgets approved by the General Assembly.
(b) If a Board of Trustees decides to increase tuition at a constituent institution, the institution shall notify the Board of Governors, the Office of State Budget and Management, and the Fiscal Research Division of the amount of increase, additional receipts anticipated, and the allocation of the funds among various programs in a format prescribed by the Board of Governors of The University of North Carolina."
SECTION 9.19.(c) This section applies to the 2005‑2006 academic year and each subsequent academic year.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
NC Space Grant Consortium Funds
SECTION 9.20. Funds appropriated by this act to the North Carolina Space Grant Consortium shall be allocated only to constituent institutions of The University of North Carolina participating in the Consortium; no funds shall be allocated to any private institution as defined by G.S. 116‑15(a2) that participates in the Consortium.
Requested by: Senators Lucas, Swindell, Garrou, Dalton, Hagan
Distinguished Professors Endowment Trust Fund
SECTION 9.21.(a) G.S. 116‑41.15 reads as rewritten:
"§ 116‑41.15. Distinguished Professors Endowment Trust Fund; allocation; administration.
(a) For constituent institutions other than focused growth institutions and special needs institutions, the amount appropriated to the trust shall be allocated by the Board as follows:
(1) On the basis of one three hundred thirty‑four thousand dollar ($334,000) challenge grant for each six hundred sixty‑six thousand dollars ($666,000) raised from private sources; or
(2) On the basis of one
one hundred sixty‑seven thousand dollar ($167,000) challenge grant for
each three hundred thirty‑three thousand dollars ($333,000) raised from
private sources.sources; or
(3) On the basis of one challenge grant of up to six hundred sixty‑seven thousand dollars ($667,000) for funds raised from private sources in twice the amount of the challenge grant.
If an institution chooses to
pursue the use of the allocated challenge grant funds described in either
subdivision (1) or(1), subdivision (2) (2), or
subdivision (3) of this subsection, the challenge grant funds shall
be matched by funds from private sources on a two‑to‑one
basis.the basis of two dollars of private funds for every one dollar of
State funds.
(b) For focused growth institutions and special needs institutions, the amount appropriated to the trust shall be allocated by the Board as follows:
(1) On the basis of one five hundred thousand dollar ($500,000) challenge grant for each five hundred thousand dollars ($500,000) raised from private sources; or
(2) On the basis of one two
hundred fifty thousand dollar ($250,000) challenge grant for each two hundred
fifty thousand dollars ($250,000) raised from private sources.sources;
or
(3) On the basis of one challenge grant of up to one million dollars ($1,000,000) for funds raised from private sources in the same amount as the challenge grant.
If an institution chooses to
pursue the use of the allocated challenge grant funds described in either
subdivision (1) or(1), subdivision (2)(2), or
subdivision (3) of this subsection, the challenge grant funds shall
be matched by funds from private sources on a one‑to‑one
basis.the basis of one dollar of private funds for every dollar of State
funds.
(c) Matching funds shall come from contributions made after July 1, 1985, and pledged for the purposes specified by G.S. 116‑41.14. Each participating constituent institution's board of trustees shall establish its own Distinguished Professors Endowment Trust Fund, and shall maintain it pursuant to the provision of G.S. 116‑36 to function as a depository for private contributions and for the State matching funds for the challenge grants. The State matching funds shall be transferred to the constituent institution's Endowment Fund upon notification that the institution has received and deposited the appropriate amount required by this section in its own Distinguished Professors Endowment Trust Fund. Only the net income from that account shall be expended in support of the distinguished professorship thereby created."
SECTION 9.21.(b) G.S. 116‑41.16 reads as rewritten:
"§ 116‑41.16. Distinguished Professors Endowment Trust Fund; contribution commitments.
(a) For constituent institutions other than focused growth institutions and special needs institutions, contributions may also be eligible for matching if there is:
(1) A commitment to make a donation of at least six hundred sixty‑six thousand dollars ($666,000), as prescribed by G.S. 143‑31.4, and an initial payment of one hundred eleven thousand dollars ($111,000) to receive a grant described in G.S. 116‑41.15(a)(1); or
(2) A commitment to make a
donation of at least three hundred thirty‑three thousand dollars
($333,000), as prescribed by G.S. 143‑31.4, and an initial payment
of fifty‑five thousand five hundred dollars ($55,500) to receive a grant
described in G.S. 116‑41.15(a)(2);(2); or
(3) A commitment to make a donation in excess of six hundred sixty‑six thousand dollars ($666,000), as prescribed by G.S. 143‑31.4, and an initial payment of one‑sixth of the committed amount to receive a grant described in G.S. 116‑41.15(a)(3);
and if the initial payment is accompanied by a written pledge to provide the balance within five years after the date of the initial payment. Each payment on the balance shall be no less than the amount of the initial payment and shall be made on or before the anniversary date of the initial payment. Pledged contributions may not be matched prior to the actual collection of the total funds. Once the income from the institution's Distinguished Professors Endowment Trust Fund can be effectively used pursuant to G.S. 116‑41.17, the institution shall proceed to implement plans for establishing an endowed chair.
(b) For focused growth institutions and special needs institutions, contributions may also be eligible for matching if there is:
(1) A commitment to make a donation of at least five hundred thousand dollars ($500,000), as prescribed by G.S. 143‑31.4, and an initial payment of eighty‑three thousand three hundred dollars ($83,300) to receive a grant described in G.S. 116‑41.5(b)(1); or
(2) A commitment to make a
donation of at least two hundred fifty thousand dollars ($250,000), as
prescribed by G.S. 143‑31.4, and an initial payment of forty‑one
thousand six hundred dollars ($41,600) to receive a grant described in
G.S. 116‑41.15(b)(2);(2); or
(3) A commitment to make a donation in excess of five hundred thousand dollars ($500,000), as prescribed by G.S. 143‑31.4, and an initial payment of one‑sixth of the committed amount to receive a grant described in G.S. 116‑41.15(b)(3);
and if the initial payment is accompanied by a written pledge to provide the balance within five years after the date of the initial payment. Each payment on the balance shall be no less than the amount of the initial payment. Pledged contributions may not be matched prior to the actual collection of the total funds. Once the income from the institution's Distinguished Professors Endowment Trust Fund can be effectively used pursuant to G.S. 116‑41.17, the institution shall proceed to implement plans for establishing an endowed chair."
SECTION 9.21.(c) G.S. 116‑41.17 reads as rewritten:
"§ 116‑41.17. Distinguished Professors Endowment Trust Fund; establishment of chairs.
When the sum of the challenge
grant and matching funds in the Scholars' Distinguished Professors
Endowment Trust Fund reaches:
(1) One million dollars
($1,000,000), if the sum of funds described in G.S. 116‑41.15(1);
or G.S. 116‑41.15(a)(1) or G.S. 116‑41.15(b)(1);
or
(2) Five hundred thousand
dollars ($500,000), if the sum of funds described in G.S. 116‑41.15(2);G.S.
116‑41.15(a)(2) or G.S. 116‑41.15(b)(2); or
(3) An amount up to two million dollars ($2,000,000), if the sum of funds described in G.S. 116‑41.15(a)(3) or G.S. 116‑41.15(b)(3);
the board of trustees may recommend to the Board, for its approval, the establishment of an endowed chair or chairs. The Board, in considering whether to approve the recommendation, shall include in its consideration the programs already existing in The University of North Carolina. If the Board approves the recommendation, the chair or chairs shall be established. The chair or chairs, the property of the constituent institution, may be named in honor of a donor, benefactor, or honoree of the institution, at the option of the board of trustees."