Recommended continuation budget

              The North Carolina State Budget

with Results- Based Information

2007- 2009

Education

Volume 1

Michael F. Easley

Governor

Recommended Operating Budget

The North Carolina State Budget

with Results- Based Information

2007- 2009

Education

Volume 1

Office of State Budget and Management

Office of the Governor

Raleigh, North Carolina

www. osbm. state. nc. us

David T. McCoy, State Budget Officer

Charles E. Perusse, Deputy State Budget Officer

February 2007

Recommended Operating Budget

Table of Contents

Volume 1: Education

Preface.................................................................................................... vii

Introduction............................................................................................ ix

Public Education

Mission and Goals..................................................................................................... 1

13510 Department of Public Instruction - General Fund

Governor’s Recommended Adjustments to Base Budget....................................... 2

Base Budget and Results- Based Information......................................................... 9

63510 DPI - Trust Fund

Base Budget and Results- Based Information....................................................... 20

23511 School Technology Fund

Base Budget and Results- Based Information....................................................... 28

The University of North Carolina

Mission and Goals................................................................................................... 31

160xx The University of North Carolina

Governor’s Recommended Adjustments to Base Budget..................................... 34

University of North Carolina Board of Governors

16010 UNC - Board of Governors

Base Budget and Results- Based Information....................................................... 43

16011 UNC - Board of Governors - Institutional Programs

Base Budget and Results- Based Information....................................................... 49

16012 UNC - Board of Governors - Related Educational Programs

Base Budget and Results- Based Information....................................................... 51

University of North Carolina at Chapel Hill

16020 Univ. of North Carolina at Chapel Hill - Academic Affairs

Base Budget and Results- Based Information....................................................... 57

16021 Univ. of North Carolina at Chapel Hill - Health Affairs

Base Budget and Results- Based Information....................................................... 69

16022 Univ. of North Carolina at Chapel Hill - Area Health Education

Base Budget and Results- Based Information....................................................... 75

iii

North Carolina State University

16030 North Carolina State University - Academic

Base Budget and Results- Based Information....................................................... 79

16031 North Carolina State Univ. Agricultural Research

Base Budget and Results- Based Information....................................................... 88

16032 North Carolina State Univ. Cooperative Extension Service

Base Budget and Results- Based Information....................................................... 91

University of North Carolina at Greensboro

16040 University of North Carolina at Greensboro

Base Budget and Results- Based Information....................................................... 95

University of North Carolina at Charlotte

16050 University of North Carolina at Charlotte

Base Budget and Results- Based Information..................................................... 105

University of North Carolina at Asheville

16055 University of North Carolina at Asheville

Base Budget and Results- Based Information..................................................... 115

University of North Carolina at Wilmington

16060 University of North Carolina at Wilmington

Base Budget and Results- Based Information..................................................... 123

East Carolina University

16065 East Carolina University - Academic Affairs

Base Budget and Results- Based Information..................................................... 133

16066 East Carolina University - Health Affairs

Base Budget and Results- Based Information..................................................... 143

North Carolina Agricultural and Technical State University

16070 North Carolina Agricultural and Technical State University

Base Budget and Results- Based Information..................................................... 147

Western Carolina University

16075 Western Carolina University

Base Budget and Results- Based Information..................................................... 157

iv

Appalachian State University

16080 Appalachian State University

Base Budget and Results- Based Information..................................................... 167

University of North Carolina at Pembroke

16082 University of North Carolina at Pembroke

Base Budget and Results- Based Information..................................................... 177

Winston- Salem State University

16084 Winston- Salem State University

Base Budget and Results- Based Information..................................................... 187

Elizabeth City State University

16086 Elizabeth City State University

Base Budget and Results- Based Information..................................................... 197

Fayetteville State University

16088 Fayetteville State University

Base Budget and Results- Based Information..................................................... 207

North Carolina Central University

16090 North Carolina Central University

Base Budget and Results- Based Information..................................................... 215

North Carolina School of the Arts

16092 North Carolina School of the Arts

Base Budget and Results- Based Information..................................................... 225

North Carolina School of Science and Mathematics

16094 North Carolina School of Science and Mathematics

Base Budget and Results- Based Information..................................................... 233

University of North Carolina Hospitals at Chapel Hill

16095 University of North Carolina Hospitals at Chapel Hill - General

Base Budget and Results- Based Information..................................................... 239

56095 University of North Carolina Hospitals at Chapel Hill - Auxiliary

Base Budget and Results- Based Information..................................................... 241

56096 University of North Carolina Hospitals at Chapel Hill - Operating

Base Budget and Results- Based Information..................................................... 243

v

Community Colleges System Office

Mission and Goals................................................................................................. 249

16800 North Carolina Community College System

Governor’s Recommended Adjustments to Base Budget................................... 250

Base Budget and Results- Based Information..................................................... 257

vi

Preface

The North Carolina State Budget: Recommended Operat-ing

Budget with Results- Based Information, 2007- 2009

reflects the work of multiple people within the Office

of State Budget and Management ( OSBM), includ-ing

budget administrators and analysts, economists,

technical staff, and paraprofessionals. The OSBM team

is listed below by administrative area.

This document is available online at www. osbm. state.

nc. us. For additional information about its contents,

please contact the appropriate administrator at the

e- mail address cited below or by telephone at 919/ 807-

4700. The mailing address for OSBM is 20320 Mail

Service Center, Raleigh, NC 27699- 0320.

OSBM Staff

David McCoy, State Budget Officer

david. mccoy@ ncmail. net

Debbie Young

Charles Perusse, Deputy State Budget Officer

charles. perusse@ ncmail. net

Angela Reeves

Fiscal Office

Arnetha Dickerson

Frances Doak

Human Resources

Tonya Austin

Ursula Hairston

Janie Johnson

Katie Shearon

Carolyn West

Statewide Budgeting Issues

Julie Mitchel, Associate State Budget Officer

julie. mitchel@ ncmail. net

Results- Based Budgeting

Jennifer Hoffmann

Capital Projects

Jim Lora, Assistant State Budget Officer

jim. lora@ ncmail. net

Adam Brueggemann

Chris Harder

Jennifer Wimmer

Correction, Crime Control and Public Safety, Justice,

Juvenile Justice and Delinquency Prevention, Judicial

Branch, Statewide Disaster Management

Sheryl Stephens, Associate State Budget Officer

sheryl. stephens@ ncmail. net

Aaron Gallagher

Marc Nelson

Transportation

Mercidee Benton, Associate State Budget Officer

mercidee. benton@ ncmail. net

Danyale Washington

Community Colleges, Public Education, University of

North Carolina

Elizabeth Grovenstein, Assistant State Budget Officer

elizabeth. grovenstein@ ncmail. net

Bryan Conrad

Kristen Crosson

Susie Esealuka

Pam Leaman

Trey O’Quinn

General Government and

Natural and Economic Resources

David Brown, Assistant State Budget Officer

david. brown@ ncmail. net

Thomas Cheek

Celia Cox

Donna Cox

Lanier McRee

Pat Taylor

vii

Economic Forecasting, Revenue Forecasting, Demo-graphic

Forecasting, Revenue and Tax Issues, Regulatory

Analysis

Jonathan Womer, Assistant State Budget Officer

jonathan. womer@ ncmail. net

Nathan Knuffman

Warren Plonk

Bill Tillman

Health and Human Services

Daphne Lyon, Assistant State Budget Officer

daphne. lyon@ ncmail. net

Debbie Barnes

Kari Barsness

Pam Kilpatrick

Wayne Williams

Technology and Data Services

Joel Sigmon, Assistant State Budget Officer

joel. sigmon@ ncmail. net

Bob Coats

Sue Farr

Agness Gunter

Ernest Pecounis

Francine Stephenson

Paul Young

Management

Tom Newsome, Assistant State Budget Officer

tom. newsome@ ncmail. net

Statewide Information Technology

Jim Dolan, Associate State Budget Officer

jim. dolan@ ncmail. net

Management Analysis

Barbara Baldwin

Donald Crooke

Angela Houston

Kay Radford

Joe Turlington

Salary and Benefits

Bill Stockard

Salary Control

Emily Moore

viii

Introduction

Operating budget by department

The North Carolina State Budget: Recommended Op-erating

Budget with Results- Based Information, 2007-

2009 is a six- volume document that details Governor

Easley’s recommended fiscal plan for the budgets of

each department in the State of North Carolina for the

upcoming biennium.

New results- based information

Newly integrated with the budget details for each de-partment

are mission statements, goals, fund descrip-tions,

key services supported by each fund or budget

code, costs of services in dollars and staff, and perfor-mance

measures. These results- based budgeting ele-ments

are intended to improve the reader’s understand-ing

of why an agency exists, what the agency does, how

much money its services cost, and how effective its

services are. The inclusion of these results- based budget

elements is the first step in a multiyear effort to pro-vide

members of the North Carolina General Assembly

and the public with expanded budget and operational

information. Ultimately, this information is designed

to improve funding, planning, and management deci-sions

in state government.

Line item details

Line item base budget details for all budgeted budget

codes and their component funds are available in a

PDF file on the Web site of the Office of State Budget

and Management, www. osbm. state. nc. us.

Order of presentation, explanation of codes

For publication of the recommended operating budget

for state agencies, the various departments are grouped

by function within the following volumes:

Volume 1: Education

Volume 2: General Government

Volume 3: Health and Human Services

Volume 4: Justice and Public Safety

Volume 5: Natural and Economic Resources

Volume 6: Transportation

Each volume is organized by department, by budget

code, and then by fund code. Each department is as-signed

a unique five- digit budget code or set of budget

codes ( except for the Department of Health and Hu-man

Services, which has a unique budget code for each

of its divisions). Each budget code is further divided

into four- character fund codes that represent a group

of activities for accounting purposes. Within depart-ment

budget codes, the recommended base budget is

presented in order by fund code.

Presentation of base budget and recom-mended

adjustments

The governor’s recommended operating budget is

comprised of two distinct components: 1) the base

budget, or continuation budget, which enables a

department to continue existing services and activities

at current levels, and 2) recommended adjustments

to the base budget, which include new programs and

expansions to current activities, as well as reductions

and eliminations. The base budget combined with any

recommended adjustments yields the recommended

operating budget for the biennium.

For each budget code in the General Fund that begins

with “ 1”, summarized information shows recommend-ed

appropriations and positions. Brief descriptions

of recommended adjustments to the base budget are

included with associated costs in dollars and positions.

These costs are specified as recurring or nonrecurring.

This section of information for the budget code is

titled “ Governor’s Recommended Adjustments to Base

Budget.”

. For example, the Department of Environment and Natural Resources

( budget code 14300) has numerous fund codes corresponding to each of its

programs. The budget for the Division of Marine Fisheries appears in three

fund codes, one for each of its major activities, administration ( 14300-

1315), research ( 14300- 1320), and law enforcement ( 14300- 1325).

ix

Following the display of recommendations for adjust-ments

to the base budget is a section for the budget

code titled “ Base Budget and Results- Based Informa-tion.”

This base budget section begins with graphs of

expenditure and position histories that illustrate funding

and staffing trends over the last several years.

The graphs in the base budget section for each budget

code are followed by a summary base budget table. The

summary base budget table displays the requirements,

receipts, appropriation, and positions for the following:

Actual expenditures for FY 2005- 06 ( the most re-cent

year for which actual information is available)

Certified budget for FY 2006- 07

Authorized budget for FY 2006- 07

Allowable adjustments, such as inflationary increas-es,

to the current authorized budget for each fiscal

year of the 2007- 09 biennium

Totals for each fiscal year of the 2007- 09 biennium

Following the base budget table for a budget code is a

display of base budget information for each fund within

the budget code, in order by fund code. The presenta-tion

for each fund begins with a base budget for the

fund followed by a fund description that explains the

major activities being funded. The structure for the

fund’s base budget table is the same as that for its parent

budget code.

Results- based information presented with

base budget

To explain and justify the expenditure of state taxpayers’

money, agencies have prepared supporting results- based

information, which is developed at either the budget

code level or the fund level. This information includes

service statements that describe the lines of business,

business processes, or set of activities supported by the

fund or budget code; actual requirements ( expenditures)

and personnel requirements ( FTEs) for each service

statement; and performance measures that tie specifical-ly

to the services provided in the fund or budget code.

The positions are those actually budgeted, not necessar-ily

those filled.

. For budget codes that do not begin with “ 1”, there are no adjustments to

the base budget except for transportation budget codes.

•

•••

•

Further information

Questions about The North Carolina State Budget: Rec-ommended

Operating Budget with Results- Based Informa-tion,

2007- 2009 or requests for further information may

be directed to the Office of State Budget and Manage-ment,

20320 Mail Service Center, Raleigh, NC 27699-

0320, or telephone ( 919) 807- 4700. The document may

also be downloaded from the Office of State Budget and

Management’s Web site, www. osbm. state. nc. us.

Glossary

Authorized budget. The certified budget plus revi-sions

delegated to the Office of State Budget and Man-agement

and to agencies by the State Budget Act ( G. S.

143C).

Base budget. That portion of the recommended op-erating

budget that maintains existing, authorized levels

of recurring services in agencies for a biennium. The

base budget, or continuation budget, is based on the

current year’s authorized budget and may be adjusted

for inflationary increases, annualization of programs,

reductions for nonrecurring programs, and adjustments

for receipts. The State Budget Act specifically mandates

that enrollment increases in public schools, commu-nity

colleges, and the university system be reflected in

the continuation budget submitted for the legislature’s

review.

Budget code. A five- digit number established for bud-getary

reporting. This number generally identifies major

fund types and the responsible entity for reporting.

The first digit is the fund type. The second and third

digits usually identify a state department or university

institution, except for the Department of Health and

Human Services, where the budget code identifies the

department’s divisions. Budget codes are established for

the following fund types:

0xxxx - Institutional Funds Revenue

1xxxx - General Fund

2xxxx - Special Funds

3xxxx - Federal Funds

4xxxx - Capital Project Funds

5xxxx - Enterprise Funds

6xxxx - Trust and Agency Funds

7xxxx - Service Funds

8xxxx - Highway Funds

x

Certified budget. The budget as enacted by the

General Assembly, including adjustments made for ( 1)

distributions to state agencies from statewide reserves

appropriated by the General Assembly, ( 2) distributions

of reserves appropriated to a specific agency by the Gen-eral

Assembly, and ( 3) organizational or budget changes

directed by the legislature but left to the governor to

carry out.

Continuation budget. Another term for the base

budget.

Expansion budget. That portion of the recommended

operating budget that presents additional operating

funds for expansion of existing services or activities, in-cluding

inflationary costs for the state’s share of locally-operated

programs, new programs, or pilot projects;

proposals to change a statutorily- controlled program by

redirecting funds from one program to another; onetime

major equipment purchases; and continued phase- in of

new programs initiated in a previous biennium.

FTE ( full- time equivalent). FTE is the percentage of

time that a staff member works represented as a decimal.

A full- time position is 1.00, a half- time position is .50,

and a quarter- time position is .25.

Fund code. A four- character code that, with its parent

budget code, uniquely identifies the fund. Most bud-get

codes have multiple fund codes that may reflect a

department’s organizational structure and are created for

each division within a department and/ or for specific

programs or purposes of a division. Fund codes are

established as a result of authorization by the General

Assembly; changes in the accounting standards; autho-rizations

by OSBM; and/ or grant awards from federal,

state, local, or private agencies, or from individuals.

Fund description. A description of the purpose of the

programs, services, activities, or functions funded in the

fund code. It provides justification for the expenditure

of the funds.

Goal. A broad statement of what a department wants

to achieve over a long period of time. Goals explain how

an agency fulfills its mission.

Mission statement. A description of an organization’s

basic purpose ( its fundamental reason for being) that

specifies its major functional role and communicates its

values.

Performance measure. A quantitative characteriza-tion

of the quality of, need for, or impact of a service

provided, ideally to help determine whether a desired

outcome has been attained.

Recommended operating budget. Total of the base

budget and recommended expansions and reductions

submitted by the governor to the General Assembly for

a biennium beginning with an odd- numbered year, for

example, 2007- 09. The recommended operating budget

does not include the capital improvements budget,

which is found in the accompanying budget publica-tion

entitled, The North Carolina State Budget: Summary

of Recommendations. A Six- Year Capital Improvements

Plan that supports and explains all proposed capital

improvements is prepared as a separate document.

Service analysis. A description of the relationship

between an activity supported by a fund or budget code

and the dollars and personnel allocated to those activi-ties.

Service statement. A description of the set of specific

activities, lines of business, or work processes that are

funded by a particular budget code or fund code.

xi

Public Education

Mission

The guiding mission of the North Carolina State Board of Education is

that every public school student will graduate from high school, globally

competitive for work and postsecondary education and prepared for life

in the 21st century.

Goals

NC public schools will produce globally competitive students

NC public schools will be led by 21st century professionals

NC public school students will be healthy and responsible

Leadership will guide innovation in NC public schools

NC public schools will be governed and supported by 21st century

systems

1

Governor's Recommended Adjustments to Base Budget

Public Education ( 13510)

Recommended General Fund Budget and Positions

2007- 08 2008- 09

Base Budget

Requirements $ 9,298,495,157 $ 9,411,867,933

Receipts $ 1,832,173,421 $ 1,832,142,743

Appropriation $ 7,466,321,736 $ 7,579,725,190

Adjustments

Requirements $ 196,215,958 $ 138,789,418

Receipts $ 59,334,196 $ 54,668,144

Appropriation $ 136,881,762 $ 84,121,274

Total

Requirements $ 9,494,711,115 $ 9,550,657,351

Receipts $ 1,891,507,617 $ 1,886,810,887

Recommended Appropriation $ 7,603,203,498 $ 7,663,846,464

Positions

Base Budget Positions 628.200 628.200

Technical Adjustments - -

Reductions - -

Expansion 11.000 11.000

Recommended Positions 639.200 639.200

2

Recommended Operating Budget, 2007- 09 Public Education

Appropriation Items -- Recommended Adjustments

Expansion

2007- 08 2008- 09

Quality Teachers, Quality Pay

1. Teacher and Administrator Compensation

Funds are recommended in the Compensation Reserve for

employees paid on the teacher salary schedule or the principal and

assistant principal salary schedule in schools operated by local

boards of education, the Department of Health and Human Services,

the Department of Correction, the Department of Juvenile Justice,

and the North Carolina School of Science and Mathematics. These

funds will provide for movement on the salary schedule based on

years of experience, and will increase the salary schedule base by

$ 1,240. Teachers will receive an average increase of 5% and

administrators will receive an average increase of 4.44% in 2007- 08.

Employees at the top of their respective salary schedules and who

therefore do not receive a step increase shall be paid a one- time

bonus. The funds for this are shown in the reserves section of the

Summary of Recommendations document.

2. School- Based Incentive Awards Under the ABCs Program

The ABCs initiative directs that each year a school must assure that

students receive a year's worth of education for a year of instruction.

Nonrecurring funds in the amount of $ 70 million are recommended

for awards earned in the 2006- 07 school year and awarded in fall

2007. This recommended appropriation will maintain the current

incentive levels.

Appropriation - Nonrecurring $ 70,000,000 -

Investing More Resources and Demanding More Accountability

1. Disadvantaged Student Supplemental Funding ( DSSF)

The Governor recommends a Disadvantaged Student Supplemental

Funding ( DSSF) appropriation increase of $ 18.9 million each year of

the 2007- 09 biennium. The 2006- 07 recurring appropriation allowed

for distribution to all local education agencies ( LEAs). The

recommended appropriation increases the current 2007- 08 budget

of $ 50,892,599. The recommended increase will support the

allotment of these funds to reduce the 2006- 07 ratio by 0.5. Funds

appropriated for Disadvantaged Student Supplemental Funding

( DSSF) for each year of the biennium shall be allotted based upon a

teacher to student ratio for the eligible DSSF population using the

following formula: ( 1) LEAs in counties with wealth greater than

ninety percent (> 90%) per the low wealth supplemental formula

shall receive one teaching position per 20 DSSF population; ( 2) LEAs

in counties with wealth between eighty and ninety percent (> 80%

and < 90%) shall receive one teaching position per 19.5 DSSF

3

Recommended Operating Budget, 2007- 09 Public Education

population; ( 3) LEAs in counties with less wealth than eighty percent

(< 80%) per the low wealth supplemental formula shall receive one

teaching position per 19 DSSF population; and ( 4) pilot LEAs that

received DSSF funds in 2005- 2006 shall continue to receive one

teaching position per 16 DSSF population. LEAs are encouraged to

reduce class size and/ or hire additional instructional support

personnel, such as counselors, social workers, and nurses.

Appropriation $ 18,931,676 $ 18,931,676

2. 21st Century Literacy Coaches

This recommended appropriation supports hiring an additional 100

school- based literacy coaches to be placed in middle schools ( or

other public schools with an eighth grade). This will bring the total

number of literacy coaches to 200 for the 2007- 08 school year.

Coaches will provide research- based teaching practices and job-embedded

professional development to assist teachers in the

development of curricula that enable students to develop mastery of

21st century skills.

Appropriation $ 5,704,400 $ 5,704,400

3. Consolidated Assistance Program

The Governor recommends appropriating funds to support the

consolidated assistance program in the Department of Public

Instruction that includes the LEA Assistance Program and

Turnaround Teams. These initiatives have historically been

supported with reversions from the State Public School Fund. A

recurring appropriation is necessary to ensure these services are

sufficiently funded and available on a continuing basis.

Appropriation $ 2,000,000 $ 2,000,000

4. More at Four

This appropriation expands the More at Four program by 10,000

slots in 2007- 08 and increases the per slot amount by $ 400. This will

result in 28,653 total available More at Four slots and a per slot

amount of $ 4,450. This appropriation will support operating costs of

$ 972,996, and $ 3 million dollars for a capacity enhancement fund.

This fund will be available to providers for renovations or the

purchase of modular units to alleviate existing space constraints. The

total increase for 2007- 08 is $ 59,334,196. In 2006- 07, the More at

Four program was transferred from the Department of Health and

Human Services to the Department of Public Instruction and is fully

funded with NC Education Lottery receipts.

Requirements $ 55,934,196 $ 54,668,144

Requirements - Nonrecurring $ 3,400,000

Receipts $ 55,934,196 $ 54,668,144

Receipts - Nonrecurring $ 3,400,000

Appropriation - -

4

Recommended Operating Budget, 2007- 09 Public Education

21st Century High Schools

1. Learn and Earn High School Initiative

This recurring appropriation allows the 20 planning sites funded in 2006- 07 to

become operational in 2007- 08, which will bring the total number of

operational sites to 55. The nonrecurring appropriation supports 20 planning

grants for sites that will become operational in 2008- 09, bringing the total

number of operational sites to 75 for the 2008- 09 academic year. One Education

Consultant II position with salary and benefits of $ 82,566 is also supported with

this appropriation.

Appropriation $ 5,976,694 $ 12,161,341

Appropriation - Nonrecurring $ 1,533,360 -

Positions 1.000 1.000

2. Learn and Earn Online

This appropriation supports the cost of online college credit courses that will be

made available to high school students. These funds will support the cost of

college textbooks, technology fees, and course tuition. The University of North

Carolina at Greensboro is the first partnering university. The appropriation will

support enrollment in 12,000 community college online courses and 8,000

university online courses in 2007- 08, and 28,000 community college online

courses and 12,000 university online courses in 2008- 09. This recommended

appropriation also supports one Department of Public Instruction liaison

position to coordinate with the North Carolina Community College System, the

University of North Carolina and the NC Virtual Public Schools, and to be

responsible for communicating course availability and related information to

high school administrators, teachers, and counselors.

Appropriation $ 12,830,748 $ 22,668,973

Positions 1.000 1.000

State Board of Education Initiatives

1. School Connectivity

The Governor recommends a recurring appropriation to provide '' last mile''

connectivity and sufficient bandwidth to schools to ensure that North Carolina

students have access to 21st century technology as an instructional tool. These

funds will support the cost of infrastructure enhancement, ongoing

maintenance, and eight support staff. Priority will be given to high schools to

ensure access to Learn and Earn Online courses, as well as schools in rural and

low wealth districts. The State Board of Education will determine the

implementation schedule. Six million dollars in nonrecurring funds were

appropriated in 2006- 07.

Appropriation $ 12,000,000 $ 15,000,000

Positions 8.000 8.000

5

Recommended Operating Budget, 2007- 09 Public Education

2. School Resource Officers

This appropriation supports hiring one School Resource Officer ( SRO) for each of

118 middle schools that do not currently have one. Currently 306 middle schools

have an SRO. Salary and benefit costs per SRO are $ 37,838. This appropriation will

ensure that all middle schools have at least one SRO.

Appropriation $ 4,464,884 $ 4,464,884

3. Military Child Education Coalition Workshops

The Governor recommends a recurring appropriation to support three Military

Child Education Coalition ( MCEC) workshops for teachers in each year of the

biennium. The coalition is a nonprofit organization that promotes partnerships

and provides networking opportunities for military installations and their

supporting school districts. The organization's focus is transition and other

educational issues related to the children of military families including active duty,

National Guard, and Reserves.

Appropriation $ 100,000 $ 100,000

4. Advanced Placement/ International Baccalaureate Fees

This recommended appropriation will support the cost of Advanced Placement

( AP) and International Baccalaureate ( IB) exam fees for low income students that

will be incurred by the Department of Public Instruction in August 2007. The

recommended appropriation is nonrecurring due to the anticipated receipt of a

federal grant to be used for this purpose in 2008- 09.

Appropriation - Nonrecurring $ 250,000 -

5. Graduation Project

This recurring appropriation supports teacher training to assist in the full

implementation of the Graduation Project. The Graduation Project is a

performance- based component of the high school exit standards for students

entering the ninth grade in 2006- 07. The Graduation Project is developed,

monitored, and scored locally using state- adopted rubrics.

Appropriation $ 500,000 $ 500,000

Agency Administrative Improvements

1. Positive Behavior Support Initiative

This recommended appropriation supports one consultant in the Exceptional

Children Division. This position will provide full- time leadership and technical

assistance to local education agencies ( LEAs) in the implementation of the Positive

Behavior Support initiative. This initiative employs strategies to promote a positive

school climate and student behaviors that reduce discipline referrals and increase

instructional time. Approximately 600 North Carolina schools are currently

engaged in this initiative.

Appropriation $ 90,000 $ 90,000

Positions 1.000 1.000

6

Recommended Operating Budget, 2007- 09 Public Education

Expansion Pass- Through Funds

1. Teach for America

The Governor recommends a recurring appropriation of $ 800,000 for the Teach for

America ( TFA) program. These funds will support TFA's efforts to recruit teachers

to North Carolina. Teach for America is a national corps of outstanding recent

college graduates of all academic majors who commit to teach in urban and rural

public schools and become lifelong leaders in ensuring educational equity and

excellence for all children.

Appropriation $ 800,000 $ 800,000

2. Communities in Schools

This recommended recurring appropriation expands the current Communities in

Schools ( CIS) budget of $ 607,500 by $ 1 million for each year of the biennium. The

program connects at- risk students and their families with resources to assist in

school success and dropout prevention. Services include tutoring and mentoring.

The non- profit received a nonrecurring appropriation of $ 1 million dollars in 2006-

07.

Appropriation $ 1,000,000 $ 1,000,000

3. NC Network

NC Network provides training for school- based management teams to improve

the capacity of local administrative units by helping them use data to develop and

monitor achievement- focused plans. LEAs may contract with this non- profit using

allotments that can be expended for professional development. The current

budget is $ 312,625. This recommended recurring appropriation expands the

current budget by $ 200,000.

Appropriation $ 200,000 $ 200,000

4. Schools Attuned

This appropriation provides recurring funds to Schools Attuned, which is a non-profit

organization that provides leadership and training to teachers who are

implementing the All Kinds of Minds model in their schools. The model assists

teachers, parents, and students in understanding the basis of unique learning

needs and provides strategies to address those needs. The current budget is

$ 520,911.

Appropriation $ 500,000 $ 500,000

7

Recommended Operating Budget, 2007- 09 Public Education

Total Recommended Expansion

2007- 08 2008- 09

Recurring

Requirements $ 121,032,598 $ 138,789,418

Receipts 55,934,196

54,668,144

Appropriation $ 65,098,402 $ 84,121,274

Positions 11.000 11.000

Nonrecurring

Requirements $ 75,183,360 -

Receipts 3,400,000

-

Appropriation $ 71,783,360 -

Positions - -

Total Recommended Adjustments for

Public Education ( 13510)

2007- 09

2007- 08 2008- 09

Recurring

Requirements $ 121,032,598 $ 138,789,418

Receipts 55,934,196

54,668,144

Appropriation $ 65,098,402 $ 84,121,274

Positions 11.000 11.000

Nonrecurring

Requirements $ 75,183,360 -

Receipts 3,400,000

-

Appropriation $ 71,783,360 -

Positions - -

Total Appropriation Adjustments $ 136,881,762 $ 84,121,274

Total Position Adjustments 11.000 11.000

8

Recommended Operating Budget, 2007- 09 Public Education

Base Budget and Results- Based Information

Budget Code 13510 Department of Public Instruction - General Fund

Actual Expenditures

by Fiscal Year

Actual Positions

by Fiscal Year

Increase from 2006 actuals to 2007 certified is result of

2006 Session Laws -- appropriated additional FTEs and

directed program transfers to DPI, including Office of

School Readiness and NC Teacher Academy. Increase

from 2007 certified to 2007 authorized due to

legislation allowing increase in NC WISE positions.

Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 8,161,089,292 $ 9,244,289,479 $ 9,230,019,664 $ 68,475,493 $ 9,298,495,157 $ 181,848,269 $ 9,411,867,933

Receipts $ 1,293,776,590 $ 1,838,143,025 $ 1,823,873,210 $ 8,300,211 $ 1,832,173,421 $ 8,269,533 $ 1,832,142,743

Appropriation $ 6,867,312,702 $ 7,406,146,454 $ 7,406,146,454 $ 60,175,282 $ 7,466,321,736 $ 173,578,736 $ 7,579,725,190

Positions 585.200 621.200 631.200 ( 3.000) 628.200 ( 3.000) 628.200

9

Recommended Operating Budget, 2007- 09 Public Education

Budget Code 13510 Department of Public Instruction - General Fund

Fund 13510- 1000 Education Management — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 21,036,558 $ 30,948,691 $ 31,529,727 ($ 245,837) $ 31,283,890 ($ 242,431) $ 31,287,296

Receipts $ 14,165,967 $ 14,527,970 $ 14,892,373 $ 0 $ 14,892,373 $ 0 $ 14,892,373

Appropriation $ 6,870,591 $ 16,420,721 $ 16,637,354 ($ 245,837) $ 16,391,517 ($ 242,431) $ 16,394,923

Positions 115.500 129.500 132.500 - 132.500 - 132.500

Fund description

The purpose of this fund is to establish policy for North Carolina's public school system through the State Board of Education

and subject to laws enacted by the General Assembly, and to implement policy through the State Superintendent, Deputy

State Superintendent and State Board of Education staff. These policies ensure a uniform, basic education for all students

PreK- 12. This area also oversees the state's testing and accountability programs and provides leadership for public school

professionals.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide PreK- 12 supervision and general administration of the state's public school system

through a State Board of Education and oversee the NC Virtual Public School to enhance

academic programs in high schools.

$ 1,202,292 7.000

Manage matters relating to the supervision and administration of the public school system

that the State Board of Education delegates to the State Superintendent.

$ 482,493 4.000

Facilitate day- to- day supervision of the department through the Office of the Deputy

Superintendent to ensure that NC public schools receive quality leadership and services

and manage turnaround teams that assist low performing high schools improve student

performance.

$ 446,376 3.500

Administer student assessments through the state testing program to ensure student

achievement in NC public schools and report results for the ABCs of Public Education,

North Carolina's comprehensive plan to improve public school through accountability and

basic skills mastery.

$ 10,601,058 33.000

Provide operational support, including planning, project management oversight, research

and evaluation, and coordination of the enterprise data management program. Also,

provide internal and external communications to ensure that customers and stakeholders

are informed of all matters relating to PreK- 12 public education.

$ 3,277,159 25.000

Establish and maintain rigorous standards for all teaching professionals in order to ensure

that every student in NC public schools has a knowledgeable, skilled, and compassionate

teacher and focus on standards important to the success of teachers including teacher

working conditions and professional development.

$ 257,530 2.000

License educators, assist in the recruitment and retention of teachers, coordinate approval

of teacher education programs, and provide support programs so that educators are

adequately prepared for serving in NC's public schools and remain in the profession.

$ 4,337,331 33.000

Provide the full range of comprehensive human resource management services for agency

employees including, but not limited to, recruitment, salary administration, benefits

administration, equal employment opportunity compliance, employee relations, staff

development, classification, workers compensation, employee orientation and education

on personnel policy, and performance management.

$ 432,319 8.000

Actual Totals $ 21,036,558 115.500

10

Recommended Operating Budget, 2007- 09 Public Education

Measures for the fund 2003- 04 2004- 05 2005- 06

Teaching license requests processed by the NC Department of Public

Instruction

56,943 64,472 69,217

Percentage of NC teachers who are fully licensed 85.0 % 88.0 % 88.4 %

Percentage of NC teachers with advanced degrees 25.0 % 25.6 % 24.9 %

North Carolina teachers with national board certification from the

National Board of Professional Teaching Standards ( NBPTS)

6,002 7,399 8,582

Fund 13510- 1300 Financial and Business Services — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 11,025,336 $ 14,458,270 $ 14,396,103 ($ 22,377) $ 14,373,726 ($ 15,133) $ 14,380,970

Receipts $ 4,706,769 $ 7,347,605 $ 7,328,271 $ 0 $ 7,328,271 $ 0 $ 7,328,271

Appropriation $ 6,318,567 $ 7,110,665 $ 7,067,832 ($ 22,377) $ 7,045,455 ($ 15,133) $ 7,052,699

Positions 139.700 143.700 142.700 - 142.700 - 142.700

Fund description

The purpose of this fund is to provide leadership and service to the Department of Public Instruction and the public schools

in the areas of finance, school personnel support, statistical research, transportation, child nutrition, textbooks, plant

operation, school planning, and school insurance to ensure efficiency of operations. Financial services are also provided to

Charter Schools.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide leadership through the office of associate superintendent, conduct statistical

research, and coordinate computer application design and implementation for efficiencies,

internal control, and data analysis within the area of Financial and Business Services.

$ 1,141,730 9.000

Administer the state's program for charter schools, which includes training of charter

school financial personnel and review of their certified audits, monthly expenditure data

and electronically distributed related reports as well as providing leadership and technical

assistance to those interested in starting a charter school and thereafter maintaining

quality education, business and governance programs in compliance with the North

Carolina Charter Schools Act.

$ 716,279 7.000

Distribute and monitor state and federal funding to NC's public schools through allotment

formulas, audits and reports to provide funding and ensure compliance with state and

federal laws.

$ 1,783,315 30.750

Maintain the department's internal accounting system to interface with the state's

departmental accounting and budgeting systems to ensure acceptable accounting

practices and compliance with the Executive Budget Act and Cash Management Act.

$ 2,353,729 35.000

Provide state level support through standards and regulations, program monitoring, and

technical assistance to provide an effective and efficient school food program for NC public

schools.

$ 1,572,409 20.000

Order and distribute textbooks to NC public schools to receive publishers' discount rate for

statewide order.

$ 436,941 11.000

Manage the activities of the School Support Division that provides technical assistance,

service and support to Local Education Agencies ( LEAs) in all areas of pupil transportation

and planning and design services for high quality school facilities.

$ 2,318,340 17.900

11

Recommended Operating Budget, 2007- 09 Public Education

Provide services regarding the operation and maintenance of school buildings upon

request of NC public schools including engineering analysis and design services, and

engineering drawings to the LEA maintenance departments in the areas of structural, civil,

electrical, mechanical, environmental, water and wastewater engineering. Also, provide

assistance for equipment repairs and replacement, small renovation projects, and building

and equipment assessment and evaluation.

$ 702,593 9.050

Actual Totals $ 11,025,336 139.700

Measures for the fund 2003- 04 2004- 05 2005- 06

Percentage of audit or monitoring review findings by state auditors

and federal agencies that result in DPI making a payback of funds

0.0 % 0.0 % -

Percentage of LEAs found to be in compliance with the Federal School

Meal Initiative that provides nutrition guidelines in the preparation

and service of meals to students

2 % 6 % 8 %

Percentage of LEA textbook orders placed between February 1st and

July 15th that were shipped to the LEAs by the opening of school ( Aug

25th)

96.99 % 100.00 % 100.00 %

Fund 13510- 1400 School Readiness Office — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 0 $ 84,891,251 $ 84,891,251 $ 0 $ 84,891,251 $ 0 $ 84,891,251

Receipts $ 0 $ 84,874,754 $ 84,874,754 $ 0 $ 84,874,754 $ 0 $ 84,874,754

Appropriation $ 0 $ 16,497 $ 16,497 $ 0 $ 16,497 $ 0 $ 16,497

Positions - 28.000 28.000 - 28.000 - 28.000

Fund description

The purpose of this fund is to improve services to preschool children, especially to enhance school readiness of at- risk

children, and to enhance collaboration among programs and agencies that serve preschool children so that all children are

ready for school and schools are ready for all children. The Office of School Readiness includes services for children ages 3- 5

with disabilities, Title I preschool, Even Start Family Literacy, the Head Start State Collaboration Office, and the state

education lottery funded More at Four Pre- K Program. This program resided in the Department of Health and Human Service

budget in 2005- 06 and was transferred to the Department of Public Instruction per Senate Bill 1741, Section 7.18, effective

July 1, 2006.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Develop preschool policy and provide technical assistance, monitoring, and professional

development to local providers to ensure quality classes. ( See budget code 14410.)

$ 0 -

Conduct external evaluations to assess child outcomes, program quality, and needs for

improvement so that preschool children are better prepared for school. ( See budget code

14410.)

$ 0 -

Actual Totals $ 0 -

12

Recommended Operating Budget, 2007- 09 Public Education

Measures for the fund 2003- 04 2004- 05 2005- 06

NC children enrolled in the More at Four state pre- kindergarten

program

10,891 13,515 17,890

Fund 13510- 1500 Technology Services — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 21,002,635 $ 28,618,316 $ 28,820,741 ($ 2,388,785) $ 26,431,956 ($ 2,379,898) $ 26,440,843

Receipts $ 8,711,965 $ 12,846,566 $ 12,295,903 $ 0 $ 12,295,903 $ 0 $ 12,295,903

Appropriation $ 12,290,670 $ 15,771,750 $ 16,524,838 ($ 2,388,785) $ 14,136,053 ($ 2,379,898) $ 14,144,940

Positions 125.000 118.000 126.000 ( 3.000) 123.000 ( 3.000) 123.000

Fund description

The purpose of this fund is to provide leadership and services which include: workstation and network support for the

department; applications software support for the public schools and the department business units of NC Window of

Information on Student Education ( NC WISE), Finance, Human Resource Management, Exceptional Children, Instructional

Services, Enterprise, Instructional Technology including the E- Rate Project, Technology Services; and, security and enterprise

architecture.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide leadership and management through the office of Associate Superintendent/ CIO

to oversee the services and operations of the E- Rate Project, Service Delivery/ Enterprise

Program Management Office ( EPMO) Division, NC WISE, Instructional Technology Division,

and Operations Division.

$ 2,749,110 4.000

Provide online learning opportunities for students and educators through distance

learning systems and assist local school systems in technology planning, implementation

and evaluation ultimately to improve student performance.

$ 6,652,341 17.000

Convert SIMS schools to NC WISE schools in order to support an electronic student data

system for the NC education community, including system development, training and

support.

$ 6,328,908 44.000

Provide customer based service delivery and program/ project management services to the

business units of the agency for application development and product training and

support to the public schools and the department in the areas of Finance, Human Resource

Management, Exceptional Children, Instructional Services, Enterprise and Technology

Services.

$ 1,853,542 32.000

Provide customer response services for schools, local school systems, and the education

department to ensure productivity, which includes maintaining high- availability, fault-tolerant,

and secure computing resources that support state department applications.

$ 3,418,734 28.000

Actual Totals $ 21,002,635 125.000

13

Recommended Operating Budget, 2007- 09 Public Education

Measures for the fund 2003- 04 2004- 05 2005- 06

NC high school students enrolled in on- line courses not offered at

their schools

550 1,896 2,951

NC public schools and charter schools converted each year from the

Student Information Management System ( SIMS) to NC WISE

142 641 0

External Help Desk requests for technical assistance or information

completed by NCDPI staff within three business days

11,561 17,947 15,155

Fund 13510- 1600 Curriculum and School Reform Services — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 33,840,224 $ 65,852,807 $ 62,007,070 ($ 495,456) $ 61,511,614 ($ 489,907) $ 61,517,163

Receipts $ 25,844,979 $ 56,296,540 $ 52,469,598 $ 0 $ 52,469,598 $ 0 $ 52,469,598

Appropriation $ 7,995,245 $ 9,556,267 $ 9,537,472 ($ 495,456) $ 9,042,016 ($ 489,907) $ 9,047,565

Positions 205.000 202.000 202.000 - 202.000 - 202.000

Fund description

The purpose of this fund is to design, enhance and maintain public school curriculum frameworks and supporting

curriculum materials and assist schools in improving and achieving their performance goals. This fund also provides support

for school reform at all levels and supports LEAs through the LEA Assistance Program ( LEAAP).

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide leadership through the office of associate superintendent, coordinate the State

Textbook Commission, coordinate a public school health program, improve local school

system capabilities through assistance teams and intervention strategies, and administer

the compensatory education program to ensure compliance with federal No Child Left

Behind legislation.

$ 6,085,518 32.000

Provide a standard course of study for every content area for grades K- 5 and assistance in

articulating and enhancing the curriculum consistent with current research, exemplary

practices, and national standards.

$ 5,960,147 44.000

Provide a standard course of study for every content area for grades 6- 8 and assistance in

articulating and enhancing the curriculum consistent with current research, exemplary

practices, and national standards.

$ 3,768,703 30.000

Provide a standard course of study for every content area for grades 9- 12 and assistance in

articulating and enhancing the curriculum consistent with current research, exemplary

practices, and national standards.

$ 6,638,973 55.000

Administer Exceptional Children program through policy monitoring and auditing,

training, consultation and technical assistance to promote appropriate instruction for

students with disabilities and students who are gifted.

$ 10,076,188 44.000

Conduct the Governor's School of North Carolina, a six week summer residential program

for 800 intellectually gifted high school students integrating academic disciplines, the arts

and unique courses on each of two campuses.

$ 1,310,695 -

Actual Totals $ 33,840,224 205.000

14

Recommended Operating Budget, 2007- 09 Public Education

Measures for the fund 2003- 04 2004- 05 2005- 06

Percentage of low performing NC public schools receiving assistance

to improve academic achievement that showed academic

improvement over one academic year

87 % 50 % 75 %

Percentage of low performing school districts receiving assistance to

improve academic achievement that showed academic improvement

over one academic year 1

86 % 43 % 69 %

1Low performing schools are schools that do not make academic growth and have

less than 50% of students scores at or above grade level.

Fund 13510- 1700 State Aid - Federal Programs — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 1,100,119,822 $ 1,378,191,051 $ 1,368,024,908 $ 0 $ 1,368,024,908 $ 0 $ 1,368,024,908

Receipts $ 1,100,119,819 $ 1,378,191,051 $ 1,368,024,908 $ 0 $ 1,368,024,908 $ 0 $ 1,368,024,908

Appropriation $ 3 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

This fund provides specialized programs in the public schools through the use of federal funds. These special programs

include the child nutrition program, career technical education programs, exceptional children programs and basic

programs for children disadvantaged because of low income, which are identified as part of No Child Left Behind.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Disburse federal grant funds to LEAs for child nutrition programs that impact the nutrition,

health, and physical well- being of NC's public school children including School Lunch,

Special Milk, School Breakfast, and School Fresh Fruits and Vegetables programs.

$ 308,183,808 -

Disburse federal grant funds to LEAs for special education programs that provide every

child with the opportunity to reach his or her full potential including the Individuals with

Disabilities Education Act ( IDEA) Title VI- B Handicapped Grant for children ages 3 to 21, the

IDEA Title VI- B Preschool Handicapped Grant for children ages 3 to 5, and the IDEA Title VI-C

Deaf/ Blind Grant to coordinate programs for children to age 22 who are both deaf and

blind.

$ 293,874,899 -

Disburse federal grant funds to LEAs for workforce development programs including the

Vocational Education Basic Grant to enhance future workforce skills of public school

students and the Vocational Education Tech Prep Grant to guide students in a course of

study leading from high school preparation to the associate degree from local community

colleges.

$ 34,054,986 -

Disburse the federal Learn and Serve America Grant funds to LEAs to provide personnel

training and service- learning programs to increase youth involvement in community issues

and activities.

$ 325,748 -

Disburse federal No Child Left Behind 21st Century Community Learning Centers grant

funds to LEAs to provide quality, accessible, after- school, weekend, or summer programs

for children, youth, and their families.

$ 24,547,710 -

Disburse federal No Child Left Behind Education Technology State grant funds to LEAs to

support the integration of educational technology into classrooms to improve teaching

and learning.

$ 11,186,466 -

15

Recommended Operating Budget, 2007- 09 Public Education

Disburse federal No Child Left Behind Homeless Children and Youth grant funds to LEAs to

help local school systems meet the special educational needs of homeless children.

$ 909,040 -

Disburse federal No Child Left Behind Improving Teacher Quality grant funds to LEAs to

prepare, train, recruit, retain, and equitably distribute high quality teachers and reduce

class size.

$ 62,913,129 -

Disburse federal No Child Left Behind English Language Acquisition grant funds to LEAs to

assist school districts in teaching English to limited English proficient students to help them

meet the same state standards required of all other students.

$ 9,533,098 -

Disburse federal No Child Left Behind Math and Science Partnership grant funds to LEAs to

improve the academic achievement of students in mathematics and science by supporting

partnerships of organizations representing preschool through higher education.

$ 3,073,156 -

Disburse federal No Child Left Behind Rural Low Income School grant funds to eligible LEAs

to help meet the unique needs of rural school districts that frequently lack the resources

needed to compete effectively for federal competitive grants and receive formula grant

allocations in amounts too small to be effective in meeting their intent.

$ 5,608,139 -

Disburse federal No Child Left Behind Safe and Drug- Free Schools grant funds to LEAs to

prevent violence and implement prevention, early identification, and intervention drug

programs.

$ 7,542,897 -

Disburse federal No Child Left Behind Title I- Basic grant funds to LEAs to provide special

help to educationally deprived children, ages 5 to 17, from low income families and NCLB

Title I- School Improvement grant funds to assist schools identified for school improvement,

corrective action, and restructuring.

$ 290,435,449 -

Disburse federal No Child Left Behind Title I- Even Start grant funds to LEAs to improve

educational opportunities for children and adults through unified, family- centered

education and parenting programs.

$ 4,212,421 -

Disburse federal No Child Left Behind Title I- Reading First grant funds to LEAs to help states

and local school systems utilize scientifically- based reading research to implement

comprehensive reading instruction for children in grades K- 3.

$ 18,715,714 -

Disburse federal No Child Left Behind Title I- Migrant Education grant funds to LEAs to meet

the educational needs of migratory children.

$ 6,122,950 -

Disburse federal No Child Left Behind Title I- Neglected and Delinquent Children grant

funds to LEAs to provide funds for neglected and delinquent children under 21 in state

institutions or attending community day programs.

$ 776,137 -

Disburse federal No Child Left Behind Title I- Comprehensive School Reform grant funds to

LEAs to provide schools with additional tools and effective strategies to become successful

in helping all students reach high academic standards.

$ 4,567,646 -

Disburse federal No Child Left Behind Title V- Innovative Education Programs grant funds to

LEAs to target assistance programs to enhance student performance.

$ 5,280,373 -

Disburse federal grant funds to LEAs to provide abstinence education promoting

abstinence from sexual activity and focusing on those groups that are most likely to bear

children out- of- wedlock.

$ 1,252,721 -

Disburse FEMA grant funds to LEAs to provide educational services to children enrolled in

North Carolina public schools who were displaced by Hurricanes Katrina and Rita.

$ 4,930,920 -

Disburse federal grant funds to LEAs impacted by the sudden influx of refugee children. $ 30,031 -

Disburse federal grant funds to new charter schools to assist in their development and to

provide a strong system of choice within NC public education.

$ 2,042,384 -

Actual Totals $ 1,100,119,822 -

16

Recommended Operating Budget, 2007- 09 Public Education

Measures for the fund 2003- 04 2004- 05 2005- 06

Percentage of classes in the state taught by " highly qualified" teachers

as defined by the federal No Child Left Behind Act

85 % 87 % 93 %

Percentage of NC schools that made Adequate Yearly Progress ( AYP)

toward achieving federal standards under the No Child Left Behind

Act

70.8 % 57.3 % 45.2 %

Percentage of NC students with disabilities, ages 3- 21, educated in the

regular classroom or with typically developing peers

53 % 54 % 55 %

Percentage of NC career- technical education enrollees who score at

Level III or above on end- of- course Career- Technical Education tests

65.0 % 65.5 % 63.9 %

Fund 13510- 1800 State Public School Fund — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 6,954,242,210 $ 7,612,020,054 $ 7,611,111,961 $ 79,677,948 $ 7,690,789,909 $ 193,025,638 $ 7,804,137,599

Receipts $ 136,678,579 $ 276,657,036 $ 276,657,036 $ 8,300,211 $ 284,957,247 $ 8,269,533 $ 284,926,569

Appropriation $ 6,817,563,631 $ 7,335,363,018 $ 7,334,454,925 $ 71,377,737 $ 7,405,832,662 $ 184,756,105 $ 7,519,211,030

Positions - - - - - - -

Fund description

The purpose of this fund is to provide a general and uniform system of free public schools throughout the state that

provides equal opportunities for all students in accordance with the provisions of the State Constitution. The funds are

allocated to local education agencies for the instructional program required by the standard course of study and a wide

range of other programs including exceptional children, career technical education, counseling, early identification and

intervention, alternative schools, instructional technology, transportation, maintenance, and staff development. Services are

delivered at the local school system or school level.

Services for the fund

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Provide state funding for central office and school building administration so that NC

public schools have leadership and support.

$ 324,941,069 -

Provide state funding for classroom teachers, teacher assistants and instructional support

personnel.

$ 3,171,986,034 -

Provide state funding for programs outside the classroom that support the classroom

experience such as transportation, school bus replacement, noninstructional support

personnel ( maintenance, substitutes, clerical staff) and other programs such as school

breakfast and child and family support teams.

$ 723,310,991 -

Provide state funding for appropriate instruction for children with special needs in NC

public schools to ensure every child has the opportunity to reach his full potential.

$ 565,869,727 -

Support strategies that improve student outcomes in low wealth and small counties. $ 168,226,059 -

Prepare students with essential skills necessary to succeed in the workplace by providing a

program of career and technical education.

$ 266,959,329 -

Provide state funding for services to improve student accountability and meet the needs of

a diverse student population including academically and intellectually gifted students,

disadvantaged students, students with limited English proficiency and at- risk students,

while evaluating the students' progress through Education Value Added Assessment

System ( EVAAS) assessments.

$ 369,016,373 -

17

Recommended Operating Budget, 2007- 09 Public Education

Provide state funding for salary related benefits for classroom and career and technical

education teacher positions, school building administration and instructional support staff

including social security, medical benefits and retirement, as well as longevity, short term

disability, annual leave, workers compensation and unemployment for all public school

state paid employees.

$ 903,019,725 -

Provide contractor services to include database and programming services and State

Information Technology Service hosting charges to ensure a high quality integrated system

for gathering and accessing data among the NC public schools.

$ 25,568,918 -

Administer student testing in a way that provides valid and reliable measures of student

outcomes.

$ 8,238,101 -

Provide state funding for innovative, 21st century learning experiences through Charter

Schools and Learn and Earn Early College High Schools by offering students the

opportunity to participate in instructional programs that will boost student performance as

well as graduation rates. Learn and Earn students earn associate's degrees or two years of

transferable college credit while still in high school.

$ 133,070,240 -

Provide state funding for professional development, incentive bonuses, mentor pay,

military pay differentials, fees for participating in the certification program of the National

Board for Professional Teaching Standards and individualized assistance to schools and

local education agencies in order to recruit and retain highly qualified teachers,

administrators and staff who have skills to teach in the 21st Century.

$ 126,688,824 -

Provide state funding for classroom services including classroom materials, instructional

supplies, equipment, technology and textbooks.

$ 167,346,820 -

Actual Totals $ 6,954,242,210 -

Measures for the fund 2003- 04 2004- 05 2005- 06

Percentage of NC students who pass both the reading and math End-of-

Grade state tests in grades 3- 8 1

80.2 % 80.9 % 61.2 %

Percentage of NC students with passing scores on the state End- of-

Course tests

74.0 % 74.8 % 71.4 %

North Carolina's average total Scholastic Assessment Test ( SAT) score

in verbal and mathematics

1006 1010 1008

Percentage of NC students in grades 9- 12 who drop out of school 4.9 % 4.7 % -

NC statewide retention rate- comparison between total graduates

( diploma and certificates) and total enrollment four years earlier

61.9 % 64.7 % -

105/ 06 percentage includes all students. This percentage should not be compared

with previous years because it reflects the new higher math standards ( effective

2005- 06) and includes students taking alternate assessments as well as the multiple-choice

tests.

Fund 13510- 1900 Reserves and Transfers — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 19,822,507 $ 29,309,039 $ 29,237,903 ($ 8,050,000) $ 21,187,903 ($ 8,050,000) $ 21,187,903

Receipts $ 3,548,512 $ 7,401,503 $ 7,330,367 $ 0 $ 7,330,367 $ 0 $ 7,330,367

Appropriation $ 16,273,995 $ 21,907,536 $ 21,907,536 ($ 8,050,000) $ 13,857,536 ($ 8,050,000) $ 13,857,536

Positions - - - - - - -

18

Recommended Operating Budget, 2007- 09 Public Education

Fund description

This fund includes budgetary appropriations not assigned to a specific object category, funds to be transferred from one

fund to another and funds appropriated for non- profits that flow through the NC Department of Public Instruction to those

entities.

19

Recommended Operating Budget, 2007- 09 Public Education

Base Budget and Results- Based Information

Budget Code 63510 DPI - Trust Fund

Actual Expenditures

by Fiscal Year

Actual Positions

by Fiscal Year

$ 13,595,397 adjustment to cash basis for 2005- 06.

Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 31,103,116 $ 23,482,196 $ 23,628,286 ($ 640,000) $ 22,988,286 ($ 640,000) $ 22,988,286

Receipts $ 40,663,661 $ 23,482,196 $ 23,628,286 ($ 640,000) $ 22,988,286 ($ 640,000) $ 22,988,286

Chng Fund Bal $ 9,560,545 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions 10.050 11.050 11.050 - 11.050 - 11.050

20

Recommended Operating Budget, 2007- 09 Public Education

Budget Code 63510 DPI - Trust Fund

Services for the budget code

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Manage and operate the Public School Insurance Enterprise Fund, a self- insured fund for

public school property. Services include claims processing, conducting periodic inspections

of all participating insured public school and community college properties and

determining the annual premium rate.

$ 7,109,427 9.050

Provide funding from the State Literary Fund to assist local boards of education in the

erection and equipping of school plants, maintenance buildings and transportation

garages.

$ 300,000 -

Administer the Children's Trust Fund for child abuse and neglect prevention programs. $ 617,464 1.000

Disburse funds from the Rodman Scholarship Fund in memory of certain Rodman family

members.

$ 0 -

Provide funding to the NC Public School Forum for administration of the Teaching Fellows

program that provides scholarships and loans to students pursuing teaching careers while

attending college in North Carolina.

$ 10,253,045 -

Disburse funds from the Computer Loan Revolving Fund to provide loans to LEAs to enable

them to purchase computer equipment to implement the Uniform Education Reporting

System ( UERS).

$ 0 -

Administer the Education Fund in order to manage funds received as grants from non-governmental

sources in support of public education.

$ 56,987 -

Provide reimbursement to members of the Business and Education Technology Alliance

( BETA) for travel and per diem expenses incurred while fulfilling duties of the Alliance.

$ 30,584 -

Provide reimbursement to the appropriate LEA for Medicaid Administrative Outreach. $ 9,273,673 -

Disburse funds from the Prospective Teacher Scholarship Loan Program for students

pursuing teaching careers until January 1, 2006 when it was transferred to the State

Education Assistance Authority.

$ 3,461,936 -

Actual Totals $ 31,103,116 10.050

Measures for the budget code 2003- 04 2004- 05 2005- 06

Community- based programs designed to prevent the occurrence of

child abuse and neglect funded by the NC Children's Trust Fund

27 25 20

Property assets, including public schools and community colleges,

insured by the NC Public School Insurance Fund ($ million)

$ 18,000 $ 19,500 $ 22,000

Fund 63510- 6101 Public School Insurance — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 7,109,431 $ 10,250,000 $ 10,250,000 $ 0 $ 10,250,000 $ 0 $ 10,250,000

Receipts $ 14,515,399 $ 10,250,000 $ 10,250,000 $ 0 $ 10,250,000 $ 0 $ 10,250,000

Chng Fund Bal $ 7,405,968 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions 9.050 10.050 10.050 - 10.050 - 10.050

21

Recommended Operating Budget, 2007- 09 Public Education

Fund description

The North Carolina School Insurance Fund was first established in session law in 1949 ( Chapter 1182) and codified in 1955 in

Chapter 115C, Article 38. Both acts authorized the North Carolina State Board of Education to establish a division to manage

and operate an insurance fund for public school property to self insure the property assets of North Carolina Public Schools,

and to provide adequate reserves against insured losses. North Carolina Community Colleges have been allowed, and can

also elect, to participate in the Fund. The statute does not mandate the participation of public schools or community

colleges in the Fund but remains an equitable option to commercial insurance.

Fund 63510- 6102 State Literary Fund — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 300,000 $ 64,888 $ 50,566 $ 0 $ 50,566 $ 0 $ 50,566

Receipts $ 56,266 $ 64,888 $ 50,566 $ 0 $ 50,566 $ 0 $ 50,566

Chng Fund Bal ($ 243,734) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

This fund accounts for loans to counties for use by local boards of education to aid in erection and equipping of school

plants, maintenance buildings and transportation garages as outlined in G. S. 115C- 458.

Fund 63510- 6103 Children's Trust Fund — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 617,465 $ 598,222 $ 717,234 $ 0 $ 717,234 $ 0 $ 717,234

Receipts $ 617,735 $ 598,222 $ 717,234 $ 0 $ 717,234 $ 0 $ 717,234

Chng Fund Bal $ 270 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions 1.000 1.000 1.000 - 1.000 - 1.000

Fund description

The Children's Trust Fund was established in 1983 by the North Carolina General Assembly ( G. S. 110- 147) and then

recodified in 1998 in Chapter 7B, Article 13. The purpose of the Children's Trust Fund is to provide funds for programs and

services to prevent child abuse and neglect. The fund receives revenue from a portion of the marriage license fee under G. S.

161- 11.1 and a portion of the special license plate fee under G. S. 20- 81.12.

Fund 63510- 6104 Rodman Scholarship — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 0 $ 780 $ 780 $ 0 $ 780 $ 0 $ 780

Receipts $ 32,618 $ 780 $ 780 $ 0 $ 780 $ 0 $ 780

Chng Fund Bal $ 32,618 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

22

Recommended Operating Budget, 2007- 09 Public Education

Fund description

The Rodman Scholarship Trust Fund accounts for funding received as part of a 1929 trust agreement that established the

William B Rodman Scholarship Fund. It provides $ 200 scholarships at UNC- Chapel Hill, NC State University, UNC- Greensboro,

and East Carolina University to decendants of William B Rodman in memory of certain Rodman family members.

Fund 63510- 6107 Prospective Teacher Scholarship Loan — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 3,461,936 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 2,439,154 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal ($ 1,022,782) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

The Prospective Teacher Scholarship Loan ( PTSL) fund accounts for scholarship/ loans awarded to students pursuing

teaching careers while attending college in North Carolina. The student does not have to repay the scholarship/ loan if he

teaches in a North Carolina public school for four years after graduation. Initially authorized by G. S. 115C- 468 through 471,

the Scholarship Loan Fund for Prospective Teachers was recodified as G. S. 116- 209.33 by 2005 Session Laws, Chapter 276,

Section 9.17( b). Effective January 1, 2006, the Scholarship Loan Fund for Prospective Teachers is transferred from the

Department of Public Instruction to the State Education Assistance Authority.

Fund 63510- 6108 Teaching Fellows — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 10,253,040 $ 12,525,953 $ 12,525,953 ($ 640,000) $ 11,885,953 ($ 640,000) $ 11,885,953

Receipts $ 13,204,020 $ 12,525,953 $ 12,525,953 ($ 640,000) $ 11,885,953 ($ 640,000) $ 11,885,953

Chng Fund Bal $ 2,950,980 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

The Teaching Fellows program, administered by the Public School Forum, provides scholarship/ loans to students pursuing

teaching careers while attending college in North Carolina. The student does not have to repay the scholarship/ loan if he

teaches in a North Carolina public school for four years after graduation. Authorized by G. S. 115C- 363.23A.

Fund 63510- 6110 Buncombe Medicaid — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 600,249 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 388,025 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal ($ 212,224) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

23

Recommended Operating Budget, 2007- 09 Public Education

Fund description

This trust fund temporarily holds Medicaid Administrative Outreach reimbursements for the Buncombe Lead Education

Agency ( LEA) and/ or any LEA that has an interagency agreement designating the Buncombe LEA as the lead district.

Medicaid Administrative Outreach reimbursements are made when LEAs provide or pay for Medicaid- related services for

Medicaid- eligible public school students with disabilities.

Fund 63510- 6112 Computer Loan Revolving Fund — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 0 $ 9,353 $ 9,353 $ 0 $ 9,353 $ 0 $ 9,353

Receipts $ 3,471 $ 9,353 $ 9,353 $ 0 $ 9,353 $ 0 $ 9,353

Chng Fund Bal $ 3,471 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

This fund provides loans to LEAs to enable them to purchase computer equipment to implement the Uniform Education

Reporting System in accordance with the standards adopted by the State Board of Education pursuant to G. S. 115C- 12( 18).

The Fund was initially authorized in 1991 by G. S. 115C- 472.5.

Fund 63510- 6116 Education Fund — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 56,987 $ 33,000 $ 74,400 $ 0 $ 74,400 $ 0 $ 74,400

Receipts $ 15,375 $ 33,000 $ 74,400 $ 0 $ 74,400 $ 0 $ 74,400

Chng Fund Bal ($ 41,612) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

The Education Fund was authorized by G. S. 115C- 21( a)( 6) to manage funds received as grants from non- governmental

sources in support of public education.

Fund 63510- 6117 Business and Education Technology Alliance Fund — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 30,584 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 1,095 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal ($ 29,489) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

24

Recommended Operating Budget, 2007- 09 Public Education

Fund description

The State Board of Education's Business Education Technology Alliance was created by the 2001 Session of the North

Carolina General Assembly ( S. L. 2002- 126, s. 7.27). Members appointed to the Alliance should have knowledge and interest in

ensuring that the effective use of technology is built into the North Carolina School System for the purpose of preparing a

globally competitive workforce and citizenry for the 21st century. As directed by session law, the Alliance advises the State

Board of Education on a variety of issues related to education technology in the public schools and reports those

recommendations to the Joint Legislative Education Oversight Committee in the General Assembly. Only federal and private

funds may be used to support the work of the Alliance.

Fund 63510- 6260 Cumberland Medicaid — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 5,885,230 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 7,400,259 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal $ 1,515,029 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

This trust fund temporarily holds Medicaid Administrative Outreach reimbursements for the Cumberland Lead Education

Agency ( LEA) and/ or any LEA that has an interagency agreement designating the Cumberland LEA as the lead district.

Medicaid Administrative Outreach reimbursements are made when LEAs provide or pay for Medicaid- related services for

Medicaid- eligible public school students with disabilities.

Fund 63510- 6360 Gaston Medicaid Outreach — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 261,705 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 178,153 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal ($ 83,552) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

This trust fund temporarily holds Medicaid Administrative Outreach reimbursements for the Gaston Lead Education Agency

( LEA) and/ or any LEA that has an interagency agreement designating the Gaston LEA as the lead district. Medicaid

Administrative Outreach reimbursements are made when LEAs provide or pay for Medicaid- related services for Medicaid-eligible

public school students with disabilities.

Fund 63510- 6450 Henderson Medicaid — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 143,493 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 99,426 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal ($ 44,067) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

25

Recommended Operating Budget, 2007- 09 Public Education

Fund description

This trust fund temporarily holds Medicaid Administrative Outreach reimbursements for the Henderson Lead Education

Agency ( LEA) and/ or any LEA that has an interagency agreement designating the Henderson LEA as the lead district.

Medicaid Administrative Outreach reimbursements are made when LEAs provide or pay for Medicaid- related services for

Medicaid- eligible public school students with disabilities.

Fund 63510- 6600 Mecklenburg Medicaid — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 729,617 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 501,335 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal ($ 228,282) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

This trust fund temporarily holds Medicaid Administrative Outreach reimbursements for the Mecklenburg Lead Education

Agency ( LEA) and/ or any LEA that has an interagency agreement designating Mecklenburg LEA as the lead district. Medicaid

Administrative Outreach reimbursements are made when LEAs provide or pay for Medicaid- related services for Medicaid-eligible

public school students with disabilities.

Fund 63510- 6650 New Hanover Medicaid — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 589,498 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 393,342 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal ($ 196,156) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

This trust fund temporarily holds Medicaid Administrative Outreach reimbursements for the New Hanover Lead Education

Agency ( LEA) and/ or any LEA that has an interagency agreement designating the New Hanover LEA as the lead district.

Medicaid Administrative Outreach reimbursements are made when LEAs provide or pay for Medicaid- related services for

Medicaid- eligible public school students with disabilities.

Fund 63510- 6790 Rockingham Medicaid Outreach — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 322,411 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 208,626 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal ($ 113,785) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

26

Recommended Operating Budget, 2007- 09 Public Education

Fund description

This trust fund temporarily holds Medicaid Administrative Outreach reimbursements for the Rockingham Lead Education

Agency ( LEA) and/ or any LEA that has an interagency agreement designating the Rockingham LEA as the lead district.

Medicaid Administrative Outreach reimbursements are made when LEAs provide or pay for Medicaid- related services for

Medicaid- eligible public school students with disabilities.

Fund 63510- 6920 Wake Medicaid Outreach — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 741,470 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Receipts $ 609,362 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Chng Fund Bal ($ 132,108) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

This trust fund temporarily holds Medicaid Administrative Outreach reimbursements for the Wake Lead Education Agency

( LEA) and/ or any LEA that has an interagency agreement designating the Wake LEA as the lead district. Medicaid

Administrative Outreach reimbursements are made when LEAs provide or pay for Medicaid- related services for Medicaid-eligible

public school students with disabilities.

27

Recommended Operating Budget, 2007- 09 Public Education

Base Budget and Results- Based Information

Budget Code 23511 School Technology Fund

Actual Expenditures

by Fiscal Year

Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 32,965,468 $ 32,315,000 $ 32,315,000 $ 0 $ 32,315,000 $ 0 $ 32,315,000

Receipts $ 30,938,203 $ 32,315,000 $ 32,315,000 $ 0 $ 32,315,000 $ 0 $ 32,315,000

Chng Fund Bal ($ 2,027,265) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

28

Recommended Operating Budget, 2007- 09 Public Education

Budget Code 23511 School Technology Fund

Services for the budget code

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

Distribute funds to implement school technology plans approved by the State Board of

Education to enable teaching and learning within NC public schools.

$ 29,415,999 -

Distribute funds transferred from the Public School Building Capital Fund into the School

Technology Fund ( upon request of LEAs) to support LEAs' acquisition of necessary

hardware, software, personnel, construction, renovation, repair, planning, enlargement,

land purchase or school technology.

$ 3,549,469 -

Actual Totals $ 32,965,468 -

Measures for the budget code 2003- 04 2004- 05 2005- 06

Average statewide ratio of NC public school students per modern

computers 1

3.81 3.94 3.59

Average statewide ratio of NC public school students per Internet

connected computers

3.78 3.53 3.43

1Modern is defined as any Intel based computer with a Pentium III or above

processor, or an Apple based computer with a G3 or above processor.

Fund 23511- 2100 School Technology Fund — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 32,965,468 $ 32,315,000 $ 32,315,000 $ 0 $ 32,315,000 $ 0 $ 32,315,000

Receipts $ 30,938,203 $ 32,315,000 $ 32,315,000 $ 0 $ 32,315,000 $ 0 $ 32,315,000

Chng Fund Bal ($ 2,027,265) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Positions - - - - - - -

Fund description

Established in statute in 1994 ( G. S. 115C- 102.6D), the School Technology Fund is a nonreverting special revenue fund

consisting of any monies appropriated to it by the General Assembly and any monies credited to it under G. S. 20- 81.12 from

the sale of School Technology special license plates. Funds in the State School Technology Fund are allocated to local school

systems to implement their technology plans or as otherwise specified by the General Assembly.

Funds from the Public School Building Capital Fund, established in Chapter 115C, Article 38A, may also be used for

equipment to implement a local school technology plan. As directed by statute ( 115C- 546.2.( b)), capital funds used to

implement a local school technology plan are first transferred to the State School Technology Fund and then allocated by

that Fund to the local school administrative unit for equipment.

29

Recommended Operating Budget, 2007- 09 Public Education

The University of North

Carolina

Mission

The University of North Carolina is a public, multi- campus university

dedicated to the service of North Carolina and its people. It encompasses

16 diverse constituent institutions and affiliated educational, research,

and public service organizations. Each shares in the overall mission of the

University. That mission is to discover, create, transmit, and apply

knowledge to address the needs of individuals and society. This mission

is accomplished through instruction, which communicates the

knowledge and values and imparts the skills necessary for individuals to

lead responsible, productive, and personally satisfying lives; through

research, scholarship, and creative activities, which advance knowledge

and enhance the educational process; and through public service, which

contributes to the solution of societal problems and enriches the quality

of life in the state. In the fulfillment of this mission, the University shall

seek an efficient use of available resources to ensure the highest quality

in its service to the citizens of the state.

Teaching and learning constitute the primary service that the University

renders to society. Teaching, or instruction, is the primary responsibility

of each of the constituent institutions. The relative importance of

research and public service, which enhance teaching and learning, varies

among the constituent institutions, depending on their overall missions.

Goals

Student Success: Access, Retention, Graduation, and Affordability

Promote and improve access, retention, and graduation levels, with

special attention to traditionally underrepresented segments of North

Carolina's population and the availability of distance education and

online degree programs. Ensure affordability for North Carolina residents

by keeping tuition and fees as low as practicable, while continuing to

expand need- based financial aid resources for low- income students.

31

An Outstanding Faculty: Attract and retain exceptional faculty/ scholars

through nationally competitive compensation and benefits, appropriate

support and faculty development for instructional and scholarly activities

( including startup funds to initiate research programs), effective policies

and procedures reflecting best practices in faculty evaluation and

governance, and recognition and rewards for outstanding performance

in all areas.

More and Better Teachers: Improved Schools. Expand efforts in teacher

preparation to increase the supply of well- qualified and more diverse

teachers, especially in high- need licensure areas, to serve the rapidly

growing needs of North Carolina's schools - using both traditional and

innovative approaches ( such as incentives to students, lateral- entry

programs, mid- career opportunities, e- learning and collaborative 2+ 2

programs with North Carolina Community Colleges) - while ensuring that

the quality of teacher preparation is maintained at the highest possible

level. Continue efforts to develop outstanding administrator preparation

and development programs. Provide support and leadership for

improving K- 12 schools.

Research: Promote creative activities and basic and applied research for

the discovery, dissemination, and application of new knowledge as a

fundamental mission of the University. Continue to expand the external

sponsorship of UNC research and other creative activities for students

and faculty. Ensure that a supportive environment with ample resources

exists to promote scholarship in the sciences, humanities, social sciences,

and the arts.

Quality Academic Programs and Support Services: Ensure the quality of

academic programs both on- campus and off- campus through regular

review and assessment of degree programs and instruction, and through

assessment of the quality of and student access to academic resources

and services ( e. g., academic advising, laboratories, IT) and student

support services ( e. g. admissions, financial aid, registrar, retention,

counseling) that promote student development, retention, and

graduation. Ensure appropriate and adequate library resources.

Regional and State- wide Economic Development: Respond to and

monitor the economic needs and directions of the State, paying

particular attention to the State's economic development regions.

Facilitate collaborative research and partnerships with industry,

government, and other entities to advance strategic priorities of great

importance to North Carolina. Enhance communities' attractiveness to

business and industry with a rich culture in the arts and humanities, good

health care, and strong schools.

Adequate Facilities: Ensure the timely and cost- effective construction and

renovation of facilities to accommodate current students and anticipated

enrollment growth with efficiency, fiscal accountability, and attention to

utilizing historically underrepresented businesses.

Health Care: Continue to develop academic programs as well as

collaborative strategies in support of critical areas of allied health,

nursing, medicine, dentistry, pharmacy, and related fields in response to

the needs of the State for health care providers.

32

Information Technology: Use the power of information technology

guided by strategic IT planning for more effective educational,

administrative, and business practices that will enable the University to

respond to the competitive global environment of the 21st Century.

Internationalization: Support and expand student and faculty

participation and exchange in international study by strategically

expanding agreements that provide opportunities for UNC students and

faculty, including underrepresented groups, to study abroad and for

international students to study on UNC campuses.

Partnership with Community Colleges: Strengthen partnerships with

community colleges to ensure continuous improvement in the academic

achievement of North Carolina's students, to promote student success in

higher education, and to help close gaps in student achievement.

Private Fundraising: Expand private fundraising to supplement the public

sources of revenue for the University.

33

Governor's Recommended Adjustments to Base Budget

The University of North Carolina ( 160xx)

Recommended General Fund Budget and Positions

2007- 08 2008- 09

Base Budget

Requirements $ 3,577,759,798 $ 3,643,978,830

Receipts $ 1,052,694,727 $ 1,065,154,721

Appropriation $ 2,525,065,071 $ 2,578,824,109

Adjustments

Requirements $ 109,645,639 $ 161,111,238

Receipts - -

Appropriation $ 109,645,639 $ 161,111,238

Total

Requirements $ 3,687,405,437 $ 3,805,090,068

Receipts $ 1,052,694,727 $ 1,065,154,721

Recommended Appropriation $ 2,634,710,710 $ 2,739,935,347

Positions

Base Budget Positions 34,908.320 35,105.020

Reductions - -

Expansion 96.000 118.000

Recommended Positions 35,004.320 35,223.020

34

Recommended Operating Budget, 2007- 09 The University of North Carolina

Appropriation Items -- Recommended Adjustments

Expansion

2007- 08 2008- 09

Increasing Quality Teachers Across the State

1. Expand Future Teachers of North Carolina Scholarship Loan Program

The Governor recommends providing recurring funding of $ 325,000 for

2007- 08 and 2008- 09 to expand the Future Teachers of North Carolina

Scholarship Loan Program by 50 loans. This program provides $ 6,500

scholarship loans to students in public and private colleges to become

certified to teach math, science, special education, or English as a second

language. In the 2006- 07 session, the program received a recurring

$ 325,000 to provide an additional 50 loans. This recommendation would

bring the total available loans to 300.

Appropriation $ 325,000 $ 325,000

2. Science, Technology, Engineering, and Mathematics ( STEM) Teacher Recruitment

Funding is recommended to be appropriated to North Carolina State

University ( NCSU) and UNC- Chapel Hill ( UNC- CH) to increase the

production of math and science teachers and improve math and science

teaching across the state. At NCSU, funding in the amount of $ 500,000

will be used to strengthen on- going programs to develop new teaching

methods for science and math teachers across the state, including the

Kenan Fellows program and the statewide network of 4- H educational

programs. At UNC- CH, funding in the amount of $ 500,000 will support a

model program to train new teachers in science and math education and

develop a National Board Science and Math Teacher Center in

collaboration with the Center for Teaching Quality, which will increase

the number of National Board certified teachers in hard- to- staff schools

through recruitment, training, and on- going professional development

for existing staff in the schools.

Appropriation $ 1,000,000 $ 1,000,000

Increasing Access to Higher Education

1. Need- Based Financial Aid

Recurring funding of $ 29,450,314 is recommended for UNC need- based

financial aid in both years of the biennium. The recommended increase

includes funds to ensure that eligible late applicants will be able to

receive an award. In addition to awards for late applicants, funds are

recommended for a growth of 4,483 full- time equivalents ( FTE), which

brings the total FTE served by the UNC Need- Based Grant to 41,143.

During the 2006- 07 session, 1,730 additional needy students were funded

at a cost of $ 21,587,990 in General Fund appropriations. The remainder of

the UNC need- based financial aid program is funded through the

Escheats Fund at $ 67,638,016.

Appropriation $ 29,450,314 $ 29,450,314

35

Recommended Operating Budget, 2007- 09 The University of North Carolina

2. Enrollment Growth for Legislative Tuition Grant and State Contractual Scholarship Fund

The Governor recommends full funding for the enrollment growth request for

the Legislative Tuition Grant ( LTG) and the State Contractual Scholarship Fund

( SCSF). The 2007- 08 growth for the LTG is 866 FTE and 621 FTE for the SCSF. In

the 2006- 07 session, no enrollment growth funds were requested for the LTG

and SCSF. Both programs did receive an average $ 100 increase in award per

student. Currently, the LTG awards all resident students at private colleges

$ 1,900 and the need- based SCSF awards an average of $ 1,250 to needy resident

students at private colleges.

Appropriation $ 2,372,250 $ 2,372,250

3. UNC/ North Carolina Community College System ( NCCCS) 2+ 2 Joint E- Learning Initiative

Recurring funding of $ 1 million is recommended for the UNC/ NCCCS 2+ 2 Joint

E- Learning Initiative. In an agreement between the Chairman of the State Board

of Education, the President of the North Carolina Community College System,

and the President of the UNC System, this funding supports joint technology

development for UNC and NCCCS to track student progress and articulation

among and across campuses and to develop technology to support online

courses and 2+ 2 programs. In the 2006- 07 session, this program was

appropriated $ 1 million in nonrecurring funds in order to build online capacity,

teacher education courses, and accessibility for students in 2+ 2 programs.

Previous nonrecurring funding of online 2+ 2 programs focused on the

development of programs for teacher candidates in high need subject areas

such as elementary education, special education, birth through kindergarten,

middle grades math and science, and secondary math and science.

Appropriation $ 1,000,000 $ 1,000,000

4. The University of North Carolina Online

Funding is recommended for the University of North Carolina Online, a Web-based,

single entry point for one- stop access and delivery of university online

degree and certification programs. Students will be able to access a single Web

site for information on degree programs, certificates, online courses, as well as

information about applying, registering, and enrolling in online programs and

courses. The recommended funding develops and maintains an online

education center and clearinghouse with related technology and ensure the

available support to provide students with one- stop access to university online

programs and courses.

Appropriation $ 2,000,000 $ 4,000,000

Appropriation - Nonrecurring $ 2,200,000 -

5. Learn and Earn Online

Recurring funding of $ 7,059,178 for 2007- 08 and $ 10,228,643 for 2008- 09 is

recommended to support university course enrollments of 8,000 in 2007- 08

and 12,000 in 2008- 09. The funds will provide college textbooks, technology

fees, and additional student credit hours as based on the University's funding

formula. This is a program for high school students to take college classes while

in high school. The program is starting at UNC- Greensboro, and all University

campuses are expected to participate in the program by Fall 2009. The funding

for this item is located in the Public Education section.

36

Recommended Operating Budget, 2007- 09 The University of North Carolina

6. EARN Scholars

The Governor recommends recurring funding of $ 50 million for 2007- 08 and

$ 100 million for 2008- 09 for a new need- based financial aid program, EARN

( Education Access Rewards North Carolina) Scholars. This is a joint program

between the University of North Carolina and the North Carolina Community

College System. This scholarship is for two years of postsecondary education.

The scholarship will serve 25,000 students from families under 200% of the

poverty line. The scholarship program will be administered by the State

Education Assistance Authority ( SEAA).

Appropriation $ 50,000,000 $ 100,000,000

7. North Carolina School of Science and Math Tuition Grant

Recurring funds of $ 272,196 are recommended for an additional 10 students

in 2007- 08 and $ 303,603 for an additional 20 students in 2008- 09.

Appropriation $ 272,196 $ 303,603

Nursing and Health Care Programs

1. Graduate Nurse Scholarships for Faculty Production

Funding is recommended to continue and expand the Graduate Nurse

Scholarships for Faculty Production Program. This scholarship loan program

was created during the 2006- 07 session with an initial recurring appropriation

of $ 1.2 million for 80 scholarships at $ 15,000 per award. Nursing candidates in

masters programs are eligible to receive an award for up to two years, and

doctoral candidates are eligible for up to three years. Graduates are required

to repay each year of the loan with a year of service by teaching in a public or

private nursing program. The recommendation is to renew the scholarship

loan program for an additional year by providing 80 additional awards in the

recurring amount of $ 1.2 million for both years of the biennium.

Appropriation $ 1,200,000 $ 1,200,000

2. Graduate Nurse Scholarships for North Carolina Community College Nursing Faculty

For a NC community college to receive accreditation by the National League

of Nursing, all nursing faculty must have attained at least a master's degree. To

enable current community college nursing faculty to earn advanced degrees,

recurring funds are recommended to create graduate nurse scholarship loans

-- 25 scholarship loans in 2007- 08 and 50 in 2008- 09. These awards will provide

$ 15,000 per year for up to two years for master's candidates in nursing

education. These funds also will provide scholarship loan recipients with a

stipend of up to $ 15,000 per year.

Appropriation $ 750,000 $ 1,500,000

37

Recommended Operating Budget, 2007- 09 The University of North Carolina

3. UNC Area Health Education Centers ( AHEC) Quality and Patient Safety

The Governor recommends recurring funding of $ 1,080,000 for the UNC AHEC

Quality and Patient Safety Initiative. This initiative builds upon the work done by

the pilot programs conducted in a few AHEC regions and would be implemented

in each of the nine AHEC regions. The program will build capacity in each of the

regions by working with physician practices, rural health centers, hospitals, and

other agencies to improve the quality of care. Areas of specific focus include

childhood asthma, diabetes, pulmonary disease, smoking cessation, and

cardiovascular disease. AHECs will offer health care providers a variety of

resources, such as tools for measuring performance, education in evidence- based

practice, and informational resources and technical assistance in practice redesign.

Appropriation $ 1,080,000 $ 1,080,000

4. East Carolina University Brody Outpatient Center Indigent Care

Recurring funds of $ 5 million are recommended for provision of indigent care at

East Carolina University's ( ECU) Brody Outpatient Center. The Brody Outpatient

Center provides instructional use for medical faculty to teach students. The

request for indigent care funding is for patients treated at the Brody Outpatient

Center who are unable to pay for medical treatment.

Appropriation $ 5,000,000 $ 5,000,000

Other UNC Initiatives

1. Graduate Student Recruitment and Retention

Recurring funding of $ 1,043,551 is recommended for new waivers aimed at

recruiting and retaining top tier graduate students. The university reports that

some of their institutions lose top tier candidates because they cannot guarantee

a complete funding package with the admission letter, as do other schools. This

funding will provide 91.5 new waivers across the UNC system.

Appropriation $ 1,043,551 $ 1,043,551

2. Academic Summer Bridge and Retention Pilot Programs

Full funding is recommended for the Academic Summer Bridge and Retention

pilots at Elizabeth City State University ( ECSU), Fayetteville State University ( FSU),

North Carolina Agricultural and Technical State University ( NC A& T), North

Carolina Central University ( NCCU), UNC- Pembroke ( UNCP), Western Carolina

University ( WCU), and Winston- Salem State University ( WSSU). Each university will

receive $ 250,000, and an additional campus will be chosen and added in 2008- 09.

This program targets first generation college students or students requiring

additional preparation to be ready to enter the college environment for an

intensive, summer long academic program set on each respective campus. In

addition to residing on campus, students will be enrolling in courses for credit.

Funding is also recommended to assist campuses with programs designed for and

focused on improving retention and graduation rates. In 2007- 08, $ 430,000 is

recommended to implement retention and graduation plans developed at NCCU

and UNCP and to develop plans for the five other campuses ( ECSU, FSU, NC A& T,

WCU, and WSSU). In 2008- 09, $ 630,000 will be used to implement the plans

developed for these five campuses.

Appropriation $ 2,180,000 $ 3,060,000

38

Recommended Operating Budget, 2007- 09 The University of North Carolina

3. UNC- TV Statewide Programs

The Governor recommends full funding to support UNC- TV's statewide

programming of North Carolina Now, North Carolina Legislative Review, and

Legislative Week in Review. These three programs have an interconnected

operation and would receive the funds in a singular manner rather than dividing

them among the different programs. Funding would cover the costs of temporary

contract employees, access to the Associated Press newswire services, videotape

and other production media, statewide travel, production technology equipment

and software, and 11 new full time equivalent's ( FTE) salaries and benefits.

Appropriation $ 878,485 $ 878,485

Positions 11.000 11.000

4. Elizabeth City State University ( ECSU) Buses

The Governor recommends funding for one bus in 2007- 08 and another in 2008-

09 at Elizabeth City State University. The campus will use a nonrecurring $ 400,000

each year to purchase a bus for the travel needs of the university as well as to

assist in university related marketing and recruitment efforts.

Appropriation - Nonrecurring $ 400,000 $ 400,000

5. Temporary Space for the Pharmacy Program at Elizabeth City State University

Nonrecurring funds are recommended for 2007- 08 and 2008- 09 for the lease costs

associated with the temporary space to house the new Pharmacy Program at

ECSU. In the 2006- 07 session, ECSU received nonrecurring funds of $ 43,000 to pay

for the lease until the OSBM Capital Section was able to obtain and review the

information necessary to determine whether funds were available within the

capital appropriation to pay for the lease costs. Based on the OSBM Capital

Section's review, the project has only $ 1.4 million in available funds to cover both

temporary facilities and project cost overruns. Due to high inflationary and energy

costs, the $ 1.4 million is anticipated for the cost overruns for the project.

Therefore, an appropriation is needed for the lease cost until the permanent

structure is completed.

Appropriation - Nonrecurring $ 43,000 $ 43,000

6. North Carolina Central University Law School

The Governor recommends recurring funding of $ 2,342,000 for North Carolina

Central University's Law School. Of the entire amount, $ 1,573,000 is to implement

American Bar Association accreditation recommendations, which includes 22

positions in 2008- 09 for building student services' infrastructure. The remaining

$ 769,000 will replace Title III federal funding, which includes 30 positions that are

currently paid from Title III funds and would be paid from state funds under this

recommendation.

Appropriation $ 2,342,000 $ 2,342,000

Positions 30.000 52.000

39

Recommended Operating Budget, 2007- 09 The University of North Carolina

7. North Carolina State University School of Engineering

The Governor recommends funding for the NCSU College of Engineering. Funds

will be used for new employees' salary and benefits. Faculty will be hired in

bioengineering and other engineering departments.

Appropriation $ 5,000,000 $ 5,000,000

Positions 55.000 55.000

8. Distinguished Professor Endowment

A $ 1 million appropriation is recommended for the Distinguished Professor

Endowment. The Distinguished Professor Endowment trust fund was established

in 1985 by the General Assembly to provide each constituent institution the

opportunity to receive and match challenge grants to create endowments for

selected distinguished professors to occupy endowed chairs within the

university. The 2003 amendments to G. S. 116- 41 ( S. L. 2003- 293) changed the

ratios of funds provided by the state and private donations. Funds provided by

the state are matched with private donations on a one- to- two ratio for

constituent institutions other than focused growth institutions and special needs

institutions. Funds provided by the state are matched with private donations on

a one- to- one basis for focused growth institutions ( ECSU, FSU, NC A& T, NCCU,

UNCP, WCU, WSSU) and special needs institutions ( North Carolina School of the

Arts and UNC- Asheville). In 2004- 05, this program received $ 6 million in recurring

funds and $ 2 million in nonrecurring funds.

Appropriation $ 1,000,000 $ 1,000,000

9. North Carolina School of Science and Math Transportation Contract

The Governor recommends recurring funding of $ 25,000 to address

transportation contract cost increases for students at the North Carolina School

of Science and Math ( NCSSM). Transportation services are provided for NCSSM's

residential students who participate in the Mentorship Program at various

science and technical firms in the Research Triangle Park area. The Mentorship

Program is an academic course for seniors that provides a trimester long

internship of real world experience in science, mathematics, and technology. The

transportation service is necessary to offer the Mentorship academic course,

which is one of the most desired courses at NCSSM. It offers students a chance to

participate in an internship program that will help them decide on their college

major and career goals. The program includes approximately 40 seniors each

trimester. The transportation services requirements include three 15- passenger

minibuses two days a week and a 7- passenger van two days a week throughout

the school year. NCSSM has bid and rebid the contract but all of the responsible

bidders are $ 25,000 above the budgeted amount. The increased costs include

the significant increase in gasoline, high cost of vehicles that meet federal

standards to transport students, driver's salary on the part- time basis during the

year, maintenance, and repair costs of the vehicles.

Appropriation $ 25,000 $ 25,000

40

Recommended Operating Budget, 2007- 09 The University of North Carolina

10. UNC- Pembroke Modular Building Leases

Recurring funding is recommended for modular building leases

at UNCP. The modular buildings were originally leased

temporarily to provide academic and office space for displaced

students, faculty, and staff while renovation and construction

was occurring on existing and new buildings. However, the

growth at UNCP has already outpaced the renovations and

construction, and these modular buildings are still needed.

Appropriation $ 83,843 $ 88,035

Total Recommended Expansion

2007- 08 2008- 09

Recurring

Requirements $ 107,002,639 $ 160,668,238

Receipts -

-

Appropriation $ 107,002,639 $ 160,668,238

Positions 96.000 118.000

Nonrecurring

Requirements $ 2,643,000 $ 443,000

Receipts -

-

Appropriation $ 2,643,000 $ 443,000

Positions - -

41

Recommended Operating Budget, 2007- 09 The University of North Carolina

Total Recommended Adjustments for

The University of North Carolina ( 160xx)

2007- 09

2007- 08 2008- 09

Recurring

Requirements $ 107,002,639 $ 160,668,238

Receipts -

-

Appropriation $ 107,002,639 $ 160,668,238

Positions 96.000 118.000

Nonrecurring

Requirements $ 2,643,000 $ 443,000

Receipts -

-

Appropriation $ 2,643,000 $ 443,000

Positions - -

Total Appropriation Adjustments $ 109,645,639 $ 161,111,238

Total Position Adjustments 96.000 118.000

42

Recommended Operating Budget, 2007- 09 The University of North Carolina

Base Budget and Results- Based Information

Budget Code 16010 UNC - Board of Governors

Actual Expenditures

by Fiscal Year

Actual Positions

by Fiscal Year

Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 62,113,415 $ 55,279,370 $ 55,279,370 $ 475,557 $ 55,754,927 $ 636,612 $ 55,915,982

Receipts $ 5,915,258 $ 8,889,200 $ 8,889,200 $ 3,000 $ 8,892,200 $ 6,500 $ 8,895,700

Appropriation $ 56,198,157 $ 46,390,170 $ 46,390,170 $ 472,557 $ 46,862,727 $ 630,112 $ 47,020,282

Positions 396.670 388.900 389.020 - 389.020 - 389.020

Recommended Operating Budget, 2007- 09 The University of North Carolina

43

Budget Code 16010 UNC - Board of Governors

Services for the budget code

Actual

Requirements

2005- 06

Actual

FTEs

2005- 06

UNC- General Administration: Provides leadership and support to 16 constituent

institutions and affiliated organizations ( e. g. UNC- TV, SEAA, CSLD, etc.) through the

interpretation and implementation of policies, rules, and regulations adopted by the Board

of Governors for university finance, academic affairs, academic planning, student services,

university affairs, advancement, legal affairs, research and sponsored programs,

institutional research, human resources, and information resources.

$ 12,256,773 113.810

State Education Assistance Authority: Serves as the State's guarantor for the Federal Family

Education Loan Program ( FFELP) and administers the University of North Carolina's

scholarship and loan programs. Services provided include student aid governance, loan

origination processing, loan servicing, initiating revenue bonds to fund FFELP loans, loan

program integrity review, lender claims processing, and facility operations. Services are

funded from federal receipts and state appropriation.

$ 5,140,105 56.000

Pathways: Provides free access to resources for planning, applying and paying for college

information on fields of study, career options, financial aid opportunities and online

applications for every college.

$ 613,726 7.110

UNC- TV: Provides statewide public television coverage, including development &

production of original productions, programming, engineering, transmission,

communications, and facilities operations for the State's network.

$ 12,124,528 121.920

University School Programs: Provides K- 16 professional development, teacher recruitment,

distance education support to enhance public school achievement and recruitment goals

for the state. The programs operate centrally within the NC Center for School Leadership

Development.

$ 1,367,009 12.850

Hunt Institute for Educational Leadership & Policy: Provides a forum for governors and

other leaders to advance and sustain state- level educational reform and provides analysis

of specific policies that leaders either seek to propose or implement.

$ 948,286 5.250

NC Teacher Academy: Provides a professional development program for teachers in the

areas of school leadership, instructional methodology, core content, and use of modern

technology in order to enrich instruction and enhance student achievement.

$ 5,407,535 12.000

NC Model Teacher Education Consortium: Provides advice, professional development, and

financial support to aspiring and practicing educators in NC participating school systems to

assist in obtaining a 4- year education degree, completion of NC licensure course

requirements, completion of graduate degree in teacher education, and/ or Praxis test

preparation.

$ 2,644,937 5.000

Principal's Executive Program: Provides professional development opportunities to

strengthen and renew the knowledge, skills, and beliefs of public school leaders to improve

the conditions for teaching, school site management, and achievement in high priority

school districts.

$ 1,492,100 17.500

Math Science Education Network: Provides professional development and academic

programs to improve the quality of mathematics and science teaching and learning in the

K- 12 schools of NC.

$ 344,576 6.600

Principal Fellows Program: Administers the fellowship program that allows the most

qualified principals to complete a two- year full- time Master of School Administration ( MSA)

program.

$ 150,097 2.000

NC TEACH: Provides an alternative teacher preparation and licensure program designed to

recruit, train, support, and retain mid- career professionals to become licensed teachers in

NC.

$ 476,501 3.000

44

Recommended Operating Budget, 2007- 09 The University of North Carolina

NC Center for International Understanding: Provides global studies programs that combine

short- term immersion in another country with global education and training at home.

Coordinates K- 12 global education movement and works to assure that global competency

and cultural awareness are part of a sound basic education for all NC students. Also

includes non- recurring support for the North Carolina in the World initiative.

$ 682,776 10.000

Receipt supported operations for Principal Executive Programs professional development

opportunities, and the Education Law NC publication program.

$ 165,200 2.130

UNC- North Carolina Community College System ( NCCCS) 2+ 2 E- Learning Initiative:

Provides non- recurring funds to develop 2+ 2 distance education programs for professional

development for 2+ 2 faculty, technology development, purchases, and tracking students'

progress between NCCCS and UNC.

$ 1,000,000 -

NC Center for Nursing: Provides nurse workforce research, long- range planning, policy

development, recruitment, and retention efforts to ensure that the State of North Carolina

has nursing resources necessary to meet healthcare needs.

$ 484,278 6.000

NC Progress Board: Assists NC's leaders and citizens stay focused on long- term goals and

needs of the state through setting milestones, checking progress, reporting data,

recommending course corrections, and considering and reporting imaginative solutions to

jumpstart change for the State of North Carolina.

$ 223,621 1.500

NC Research & Education Data & Video Network ( NCREN): Provides reimbursement to

MCNC for centralized network, video conferencing, disaster recovery, and other hosted

information technology services to UNC campuses, community colleges, and public school

systems in NC.

$ 7,115,609 -

UNC Information Technology Initiatives: Provides centralized efficient solutions for data

management / architecture / warehousing, Unified Data Model, Banner support, SAS

strategic partnership, online/ web services, collaborative procurement, Teaching and

Learning Through Technology ( TLTC), UNC Shared Service Alliance, decision support, and

distance education initiatives.

$ 1,778,330 14.000

Non- Recurring System- Wide Distance Education Initiatives: Provides funds for MERLOT

( Multimedia Educational Resource for Learning and Online Teaching) and development of

online 2+ 2 distance education programs that serve prospective teachers.

$ 110,838 -

Non- Recurring System- Wide UNC Board of Governors Awards for Excellence in Teaching:

Provides funds to underscore the importance of teaching and to encourage, identify,

recognize, reward, and support good teaching within the University.

$ 120,000 -

Non- Recurring System- Wide Banner Implementation: Provides funds to support project

and engagement management, LEAP data migration services, and other technology

implementation services required by the Banner Implementation Project.

$ 935,867 -

Non- Recurring System- Wide Strategic Initiatives: Provides funds for the UNC President to

address urgent issues and problems of UNC constituent campuses and to explore new

initiatives and foster collaboration and partnerships within the UNC system and other

public/ private agencies that demonstrate solutions to common concerns.

$ 3,119,384 -

Non- Recurring System- Wide Research Initiatives: Provides support for competitive and

directed funding in the areas of genomics, photonics, and bioinformatics.

$ 1,066,616 -

Non- Recurring Budget Flexibility Carryforward Activities: Provides funds for one- time

expenditures ( i. e., outstanding encumbrances, research activities, information technology

improvements, minor repairs and renovations) that will not impose additional financial

obligations on the State. Authorized by G. S. 116- 30.3.

$ 2,344,723 -

Actual Totals $ 62,113,415 396.670

45

Recommended Operating Budget, 2007- 09 The University of North Carolina

Measures for the budget code 2003- 04 2004- 05 2005- 06

UNC System six year graduation rate 57.9 % 59.1 % 59.3 %

UNC System first year to second year retention rate 81.7 % 81.2 % 80.6 %

UNC System four year graduation rate of associate degree transfers

from the NC Community College System

67.0 % 69.0 % -

UNC System passage rate for Nursing Licensure Examination ( NCLEX-RN)

85.0 % 89.0 % 89.0 %

UNC System Traditional Teacher Education Graduates and Alternative

Licensure Completers 1

- 3,918 3,969

Students served through State Education Assistance Authority

guaranteed loans

- - 161,968

UNC- TV hours of original programming - - 691

1Traditional represents undergraduate students who completed baccalaureate

degrees in an education degree program that prepares a prospective teacher for a

North Carolina teaching license. Alternative completers are individuals who have

already completed a baccalaureate degree and have also completed an alternative

program of study in teacher education that includes the necessary teacher licensure

courses to obtain a teaching license in North Carolina.

Fund 16010- 0141 Center for Public Television — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 12,124,528 $ 12,542,877 $ 12,542,877 $ 456,666 $ 12,999,543 $ 607,620 $ 13,150,497

Receipts $ 15,000 $ 16,500 $ 16,500 $ 3,000 $ 19,500 $ 6,500 $ 23,000

Appropriation $ 12,109,528 $ 12,526,377 $ 12,526,377 $ 453,666 $ 12,980,043 $ 601,120 $ 13,127,497

Positions 121.920 122.220 122.420 - 122.420 - 122.420

Fund description

This purpose includes administrative and managerial, engineering and broadcasting, programming and production, and

developmental operations of The University of North Carolina Center for Public Television. The UNC Center for Public

Television is a public service function that provides television programs throughout the state for instructional, educational,

and entertainment purposes, information dissemination, and cultural enrichment.

Fund 16010- 0142 Community Services — Base Budget

2005- 06

Actual

2006- 07

Certified

2006- 07

Authorized

2007- 08

Adjustments

2007- 08

Total

2008- 09

Adjustments

2008- 09

Total

Requirements $ 705,961 $ 865,265 $ 752,563 $ 1,227 $ 753,790 $ 2,555 $ 755,118

Receipts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Appropriation $ 705,961 $ 865,265 $ 752,563 $ 1,227 $ 753,790 $ 2,555 $ 755,118

Positions 7.000 8.000 7.000 - 7.000 - 7.000

46

Recommended Operating Budget, 2007- 09 The University of North Carolina

Fu