2015 ANNOTATED CONFERENCE COMMITTEE
REPORT ON THE BASE, EXPANSION, AND CAPITAL
BUDGETS
(Includes summaries of provisions in S.L. 2015-241, 2015 Appropriations
Act (H.B. 97); S.L. 2015-268, General Government Technical Corrections
(H.B. 259); S.L. 2015-264, General Statutes Commission Technical
Corrections 2015 (S.B. 119); and other bills and select budget information.)
300 N. Salisbury Street, Legislative Office Building Suites 203 & 619
Raleigh, North Carolina 27603-5925
TELEPHONE (919) 733-4910 - FAX (919) 715-3589
http://www.ncleg.net/FiscalResearch/
Foreword
This document is an annotated version of The Joint Conference Committee Report
on the Base, Expansion, and Capital Budgets for the FY 2015-17 Biennium as
enacted in S.L. 2015-241, 2015 Appropriations Act (H.B. 97), as amended by S.L.
2015-268, General Government Technical Corrections (H.B. 259) and S.L. 2015-
264, General Statutes Commission Technical Corrections 2015 (S.B. 119).
The Annotated Report includes all legislative adjustments to the FY 2015-17
Budgets enacted during the 2015 Legislative Session. Also included are
summaries of other related bills and select budgetary information.
This document and other budgetary and fiscal information are available on the
division’s website at www.ncleg.net/FiscalResearch.
Acknowledgements
The Fiscal Research Division is a nonpartisan, central staff agency that
provides fiscal and policy information to the General Assembly.
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Table of Contents
Staff Assignments 1
General Fund Availability Statement 3
Summary: General Fund Appropriations 4
Education
Public Education F-1
Community Colleges F-20
UNC System F-26
Health and Human Services G-1
Agriculture and Natural and Economic Resources H-1
Agriculture and Consumer Services H-2
Labor H-10
Environment and Natural Resources H-12
Wildlife Resources Commission H-41
Commerce H-46
Commerce – State Aid H-63
Cultural Resources H-67
Cultural Resources – Roanoke Island Commission H-74
Justice and Public Safety
Public Safety I-1
Justice I-15
Judicial – Indigent Defense I-18
Judicial I-20
JPS Special Funds I-26
General Government
Military and Veterans Affairs J-1
Administrative Hearings J-6
Treasurer J-8
Fire Rescue National Guard Pensions & LDD Benefits J-13
Insurance J-15
State Board of Elections J-22
General Assembly J-24
Governor J-26
Governor - Special Projects J-31
State Budget and Management J-33
State Budget and Management – Special Appropriations J-36
Auditor J-39
Housing Finance Agency J-41
Administration J-45
Revenue J-55
Secretary of State J-62
Lieutenant Governor J-64
State Controller J-66
Transportation K-1
Reserves, Debt Service, and Adjustments L-1
Capital M-1
Information Technology N-1
Salaries and Benefits O-1
Finance P-1
Appendices
Full-time Equivalent Position Counts AP-1
Total General Authorizations/Current Operations AP-2
NC General Fund Operating Appropriations (Education and HHS) AP-4
Earmarking of Unreserved Fund Balance AP-6
Savings Reserve Account AP-8
Actual Tax Revenue Collected by Major Schedules AP-10
Staff Assignments
Director Mark Trogdon
Support Staff Joanne Holcomb
Julie McLaughlin
Subcommittee/Departments/Coverage Analysts
Budget Development
House and Senate Appropriations Committees Karen Hammonds-Blanks - House
Statewide Budget Issues Richard Bostic - House
Appropriations Bill Coordination
Savings Reserve Account Evan Rodewald - Senate
Budget Technical Corrections Bill Coordination Kristin Walker - Senate
Joint Commission on Governmental Operations
Agriculture and Natural and Economic Resources
Environmental Quality Jennifer Hoffmann, Team Leader
Agriculture and Consumer Services William Childs
Commerce Timothy Dale
Commerce-State Aid
Labor
Natural and Cultural Resources
Wildlife Resources Commission
Capital Mark Bondo
Daniel Sater
Digital Information Management Chris Black
Economy and Taxation
Revenue Estimates Rodney Bizzell, Team Leader
Finance Committees Barry Boardman
Revenue Laws Study Committee Denise Harb Canada
Economic Issues Brian Slivka
State Bond Proposals Jonathan Tart
Education
Public Instruction (K-12) Brett Altman
Community Colleges Mark Bondo
University of North Carolina Brian Matteson
Kristopher Nordstrom
1
Subcommittee/Departments/Coverage Analysts
General Government
Administration Lisa Hollowell, Team Leader
Administrative Hearings Cara Bridges
Auditor Daniel Sater
General Assembly
Governor’s Office
Insurance
Housing Finance Agency
Licensing Boards
Lieutenant Governor
Military and Veteran Affairs
Revenue
Secretary of State
State Board of Elections
State Budget and Management
State Controller
State Ethics Commission
State Treasurer
Health and Human Services
Susan Jacobs, Team Leader
Deborah Landry
Steve Owen
Denise Thomas
Information Technology Lanier McRee
Daniel Sater
Justice and Public Safety
Public Safety Kristine Leggett, Team Leader
Judicial Lisa Fox
Judicial Indigent Defense John Poteat
Justice
Salaries and Benefits
Lanier McRee
David Vanderweide
Transportation
Bryce Ball
Amna Cameron
2
General Fund
Availability
Statement
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FY 2015-16 FY 2016-17
1 Unappropriated Balance 2,033,330 175,488,544
2 Over Collections FY 2014-15 445,820,623 0
3 Reversions FY 2014-15 415,657,138 0
4 Proceeds from Sale of Dix Received in FY 2014-15 2,000,000 0
5 Revenue Adjustment as per S.L. 2015-2 (1,000,000) 0
6 Earmarkings of Year End Fund Balance:
7 Savings Reserve (Adjusted after Ratification of H.B. 943 (S.L. 2015-280)) (450,000,000) 0
8 Repairs and Renovations (Adjusted after Ratification of H.B. 943 (S.L. 2015-280)) (150,000,000) 0
9 Beginning Unreserved Fund Balance 264,511,091 175,488,544
10
11 Revenues Based on Existing Tax Structure 20,981,400,000 21,592,400,000
12
13 Non-tax Revenues
14 Investment Income 17,100,000 17,400,000
15 Judicial Fees 227,800,000 225,500,000
16 Disproportionate Share 139,000,000 139,000,000
17 Insurance 78,400,000 79,600,000
18 Master Settlement Agreement 137,500,000 137,500,000
19 Other Non-Tax Revenues 168,000,000 168,800,000
20 Highway Fund Transfer 215,900,000 215,900,000
21 Subtotal Non-tax Revenues 983,700,000 983,700,000
22
23 Total General Fund Availability 22,229,611,091 22,751,588,544
24
0 (8,100,000)
25 Adjustments to Availability: 2015 Session
26 Historic Preservation Tax Credit (Amended by S.L. 2015-264, Sec. 54.5(b))
27 Modify Corporate Income Tax Rate Trigger, Expand Corporate Tax Base, and Repeal
Bank Privilege Tax 6,000,000 0
28 Phase-In Single Sales Factor Apportionment (7,900,000) (23,300,000)
29 Reduce Individual Income Tax (Reduces Rate to 5.499% in 2017, Restores Medical
Deduction, and Raises Standard Deduction) (117,300,000) (437,100,000)
30 Expand Sales Tax Base 44,500,000 159,500,000
31 Transfer Additional Local Sales Tax Revenue for Economic Development, Public
Education, and Community Colleges 0 (17,600,000)
32 Renewable Energy Safe Harbor (S.L. 2015-11) 0 (36,700,000)
33 Exempt Commercial Aviation Fuel from Sales Tax (S.L. 2015-259) (7,500,000) (15,000,000)
34 Increase Sales Tax Rate on Aircraft (S.L. 2015-259) 400,000 500,000
35 Extend Sales Tax Refund Motorsports Parts and Fuel (S.L. 2015-259) 0 (1,900,000)
36 Repeal Highway Fund Transfer (215,900,000) (215,900,000)
37 Transfer to Medicaid Transformation Fund (75,000,000) (150,000,000)
38 Standard & Poor's Settlement Funds 19,382,143 0
39 Master Settlement Agreement Funds to Golden L.E.A.F. (10,000,000) (10,000,000)
40 Department of Justice Tobacco Settlement 2,194,000 0
41 Transfer from Federal Insurance Contributions Act (FICA) Fund 4,296,802 641,628
42 Transfer from E-Commerce Fund Cash Balance 3,000,000 0
43 Transfer from DPS Enterprise Resource Planning System IT Fund 9,000,000 0
44 Adjustment of Transfer from Treasurer's Office 62,998 18,471
45 Adjustment of Transfer from Insurance Regulatory Fund 355,915 58,882
46 Realign Judicial Fees 25,000,000 25,000,000
47
48 Subtotal Adjustments to Availability: 2015 Session (319,408,142) (729,881,019)
49
50 Revised General Fund Availability 21,910,202,949 22,021,707,525
51
52 Less General Fund Appropriations (21,734,714,405) (21,919,468,078)
53
54 Unappropriated Balance Remaining 175,488,544 102,239,447
General Fund Availability Statement
3
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Summary:
General Fund
Appropriations
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Revised
Base Budget Recurring Nonrecurring Net FTE Appropriation
2015-16 Adjustments Adjustments Changes Changes 2015-16
Education:
Community Colleges 1,048,495,115 (2,099,158) 22,671,041 20,571,883 7.00 1,069,066,998
Public Education 8,106,033,100 266,735,700 144,000,497 410,736,197 0.00 8,516,769,297
University System 2,647,296,221 58,742,318 40,524,039 99,266,357 0.00 2,746,562,578
Total Education 11,801,824,436 323,378,860 207,195,577 530,574,437 7.00 12,332,398,873
Health and Human Services:
Central Management and Support 89,605,783 14,436,065 18,424,738 32,860,803 (20.00) 122,466,586
Aging and Adult Services 42,845,788 0 969,549 969,549 0.00 43,815,337
Blind and Deaf / Hard of Hearing Services 8,107,457 65,750 0 65,750 0.00 8,173,207
Child Development and Early Education 249,687,727 4,816,022 (22,040,920) (17,224,898) 0.00 232,462,829
Health Service Regulation 16,022,641 82,606 0 82,606 2.00 16,105,247
Medical Assistance 3,532,548,786 279,094,664 (75,068,507) 204,026,157 0.00 3,736,574,943
Mental Health, Dev. Disabilities, & Sub. Abuse Services 680,179,847 6,928,916 (91,026,343) (84,097,427) 2.00 596,082,420
NC Health Choice 41,874,629 5,522,950 (34,841,237) (29,318,287) 0.00 12,556,342
Public Health 141,283,615 2,421,369 (2,327,764) 93,605 2.00 141,377,220
Social Services 180,017,803 2,765,460 400,000 3,165,460 1.00 183,183,263
Vocational Rehabilitation 37,752,132 0 0 0 0.00 37,752,132
Total Health and Human Services 5,019,926,208 316,133,802 (205,510,484) 110,623,318 (13.00) 5,130,549,526
Justice and Public Safety:
Public Safety 1,758,733,006 61,996,903 27,399,201 89,396,104 112.83 1,848,129,110
Judicial 467,897,397 10,411,055 6,622,765 17,033,820 3.00 484,931,217
Judicial - Indigent Defense 112,087,174 3,485,302 430,421 3,915,723 0.00 116,002,897
Justice 50,584,602 1,852,333 1,412,529 3,264,862 13.00 53,849,464
Total Justice and Public Safety 2,389,302,179 77,745,593 35,864,916 113,610,509 128.83 2,502,912,688
Agriculture and Natural and Economic Resources:
Agriculture and Consumer Services 113,940,604 1,892,669 481,702 2,374,371 6.00 116,314,975
Commerce 47,261,954 3,618,058 6,607,962 10,226,020 (6.36) 57,487,974
Commerce - State Aid 11,704,240 6,300,000 2,750,000 9,050,000 0.00 20,754,240
Cultural Resources 64,231,047 90,970,293 8,196,927 99,167,220 979.28 163,398,267
Cultural Resources - Roanoke Island 508,384 15,000 0 15,000 0.00 523,384
Environment and Natural Resources 162,279,549 (86,434,020) 5,461,073 (80,972,947) (1,007.65) 81,306,602
Labor 15,945,674 (123,439) 173,124 49,685 (2.00) 15,995,359
Wildlife Resources Commission 13,317,641 (2,294,145) (869,873) (3,164,018) (3.75) 10,153,623
Total Agriculture, Natural and Economic Resources 429,189,093 13,944,416 22,800,915 36,745,331 (34.48) 465,934,424
Summary of General Fund Appropriations
Fiscal Year 2015-16
2015 Legislative Session
Legislative Adjustments
4
Revised
Base Budget Recurring Nonrecurring Net FTE Appropriation
2015-16 Adjustments Adjustments Changes Changes 2015-16
Summary of General Fund Appropriations
Fiscal Year 2015-16
2015 Legislative Session
Legislative Adjustments
General Government:
Administration 67,409,693 (7,368,465) 1,299,684 (6,068,781) (75.40) 61,340,912
Auditor 11,733,689 271,102 98,872 369,974 0.00 12,103,663
General Assembly 52,865,521 4,143,530 400,598 4,544,128 0.00 57,409,649
Governor 5,859,246 (293,072) 255,935 (37,137) (2.00) 5,822,109
Governor - Special Projects 2,000,000 0 0 0 0.00 2,000,000
Housing Finance Agency 9,118,739 0 12,500,000 12,500,000 0.00 21,618,739
Insurance 38,296,364 58,882 297,033 355,915 1.00 38,652,279
Lieutenant Governor 676,874 1,098 4,903 6,001 0.00 682,875
Military and Veterans Affairs 0 7,556,254 1,980,741 9,536,995 77.90 9,536,995
Office of Administrative Hearings 4,992,437 150,976 36,771 187,747 1.00 5,180,184
Revenue 80,521,722 (213,325) 751,142 537,817 (1.00) 81,059,539
Secretary of State 11,676,506 74,189 137,996 212,185 0.00 11,888,691
State Board of Elections 6,620,578 (107,215) 251,479 144,264 0.00 6,764,842
State Budget and Management 7,586,922 (55,514) 152,541 97,027 1.00 7,683,949
State Budget and Management -- Special 0 1,500,000 13,281,688 14,781,688 0.00 14,781,688
State Controller 22,205,229 521,157 127,393 648,550 0.00 22,853,779
Treasurer - Operations 9,734,913 233,471 294,527 527,998 4.00 10,262,911
Treasurer - Retirement / Benefits 20,664,274 1,027,025 350,000 1,377,025 0.00 22,041,299
Total General Government 351,962,707 7,500,093 32,221,303 39,721,396 6.50 391,684,103
Statewide Reserves and Debt Service:
Debt Service:
Interest / Redemption 719,974,837 (6,815,194) 0 (6,815,194) 0.00 713,159,643
Federal Reimbursement 1,616,380 0 0 0 0.00 1,616,380
Subtotal Debt Service 721,591,217 (6,815,194) 0 (6,815,194) 0.00 714,776,023
Statewide Reserves:
Contingency and Emergency Fund 5,000,000 0 0 0 0.00 5,000,000
Salary Adjustment Reserve 7,500,000 5,000,000 0 5,000,000 0.00 12,500,000
OSHR Minimum of Market Adjustment 0 0 0 0 0.00 0
Workers' Compensation Reserve 0 21,500,543 2,000,000 23,500,543 0.00 23,500,543
Information Technology Reserve 18,803,648 2,834,527 (1,079,447) 1,755,080 0.00 20,558,728
Information Technology Fund 24,199,049 (1,755,080) 73,337 (1,681,743) 0.00 22,517,306
IT Reserve - Budget Transparency Project 0 0 814,000 814,000 0.00 814,000
Job Development Investment Grants (JDIG) 63,045,357 0 (5,229,142) (5,229,142) 0.00 57,816,215
5
Revised
Base Budget Recurring Nonrecurring Net FTE Appropriation
2015-16 Adjustments Adjustments Changes Changes 2015-16
Summary of General Fund Appropriations
Fiscal Year 2015-16
2015 Legislative Session
Legislative Adjustments
One North Carolina Fund 9,000,000 0 (2,004,024) (2,004,024) 0.00 6,995,976
Pending Legislation 4,500,000 (4,500,000) 0 (4,500,000) 0.00 0
Voter Information Verification Act 1,000,000 (1,000,000) 0 (1,000,000) 0.00 0
Film and Entertainment Grant Fund 0 0 30,000,000 30,000,000 0.00 30,000,000
0.00
Subtotal Statewide Reserves 133,048,054 22,079,990 24,574,724 46,654,714 0.00 179,702,768
Total Reserves and Debt Service 854,639,271 15,264,796 24,574,724 39,839,520 0.00 894,478,791
Total General Fund for Operations 20,846,843,894 753,967,560 117,146,951 871,114,511 94.85 21,717,958,405
Capital Improvements
Dorton Arena Roof Replacement 0 0 2,305,000 2,305,000 0.00 2,305,000
USS North Carolina Hull Repair and Cofferdam 0 0 3,500,000 3,500,000 0.00 3,500,000
Water Resources Development 0 0 5,083,000 5,083,000 0.00 5,083,000
Armory and Facility Development Projects 0 0 868,000 868,000 0.00 868,000
School of Science and Math - Technology Upgrades and Building
Repairs 0 0 4,000,000 4,000,000 0.00 4,000,000
NCSU Engineering Building - Advance Planning 0 0 1,000,000 1,000,000 0.00 1,000,000
Total Capital Improvements 0 0 16,756,000 16,756,000 0.00 16,756,000
Total General Fund Budget 20,846,843,894 753,967,560 133,902,951 887,870,511 94.85 21,734,714,405
6
Revised
Base Budget Recurring Nonrecurring Net FTE Appropriation
2016-17 Adjustments Adjustments Changes Changes 2016-17
Education:
Community Colleges 1,048,495,115 17,300,405 100,000 17,400,405 7.00 1,065,895,520
Public Education 8,106,033,100 313,231,521 180,000 313,411,521 0.00 8,419,444,621
University System 2,647,304,656 25,771,233 10,232,038 36,003,271 0.00 2,683,307,927
Total Education 11,801,832,871 356,303,159 10,512,038 366,815,197 7.00 12,168,648,068
Health and Human Services:
Central Management and Support 89,605,783 22,435,470 17,992,000 40,427,470 (17.00) 130,033,253
Aging and Adult Services 42,845,788 0 969,549 969,549 0.00 43,815,337
Blind and Deaf / Hard of Hearing Services 8,107,457 65,750 0 65,750 0.00 8,173,207
Child Development and Early Education 249,687,727 8,515,712 (15,169,463) (6,653,751) 0.00 243,033,976
Health Service Regulation 16,022,641 88,033 0 88,033 2.00 16,110,674
Medical Assistance 3,532,548,784 455,259,298 (71,570,810) 383,688,488 0.00 3,916,237,272
Mental Health, Dev. Disabilities, & Sub. Abuse Services 680,179,847 8,067,844 (150,386,383) (142,318,539) 2.00 537,861,308
NC Health Choice 41,874,629 6,230,413 (47,358,284) (41,127,871) 0.00 746,758
Public Health 141,283,615 2,453,313 4,561,500 7,014,813 2.00 148,298,428
Social Services 180,017,803 5,515,460 0 5,515,460 1.00 185,533,263
Vocational Rehabilitation 37,752,132 0 0 0 0.00 37,752,132
Total Health and Human Services 5,019,926,206 508,631,293 (260,961,891) 247,669,402 (10.00) 5,267,595,608
Justice and Public Safety:
Public Safety 1,758,773,164 84,971,162 3,621,300 88,592,462 222.83 1,847,365,626
Judicial 467,898,110 16,228,211 0 16,228,211 9.00 484,126,321
Judicial - Indigent Defense 112,097,118 4,532,846 0 4,532,846 0.00 116,629,964
Justice 50,584,602 2,130,990 0 2,130,990 13.00 52,715,592
Total Justice and Public Safety 2,389,352,994 107,863,209 3,621,300 111,484,509 244.83 2,500,837,503
Agriculture and Natural and Economic Resources:
Agriculture and Consumer Services 113,940,604 2,015,169 1,000,000 3,015,169 6.00 116,955,773
Commerce 47,261,954 5,082,375 5,251,799 10,334,174 (8.29) 57,596,128
Commerce - State Aid 11,704,240 3,851,570 2,500,000 6,351,570 0.00 18,055,810
Cultural Resources 64,231,047 97,604,806 7,453,550 105,058,356 979.28 169,289,403
Cultural Resources - Roanoke Island 508,384 15,000 0 15,000 0.00 523,384
Environment and Natural Resources 162,279,549 (85,099,940) 5,250,000 (79,849,940) (1,007.65) 82,429,609
Labor 15,945,674 (123,439) 0 (123,439) (2.00) 15,822,235
Wildlife Resources Commission 13,317,641 (2,294,145) (1,000,000) (3,294,145) (3.75) 10,023,496
Total Agriculture, Natural and Economic Resources 429,189,093 21,051,396 20,455,349 41,506,745 (36.41) 470,695,838
Summary of General Fund Appropriations
Fiscal Year 2016-17
2015 Legislative Session
Legislative Adjustments
7
Revised
Base Budget Recurring Nonrecurring Net FTE Appropriation
2016-17 Adjustments Adjustments Changes Changes 2016-17
Summary of General Fund Appropriations
Fiscal Year 2016-17
2015 Legislative Session
Legislative Adjustments
General Government:
Administration 65,932,950 (7,268,465) 0 (7,268,465) (81.60) 58,664,485
Auditor 11,733,689 271,102 0 271,102 0.00 12,004,791
General Assembly 52,865,521 4,143,530 0 4,143,530 0.00 57,009,051
Governor 5,859,246 (293,072) 0 (293,072) (2.00) 5,566,174
Governor - Special Projects 2,000,000 0 0 0 0.00 2,000,000
Housing Finance Agency 9,118,739 1,541,261 15,000,000 16,541,261 0.00 25,660,000
Insurance 38,296,364 58,882 0 58,882 1.00 38,355,246
Lieutenant Governor 676,874 1,098 0 1,098 0.00 677,972
Military and Veterans Affairs 0 7,556,254 250,000 7,806,254 77.90 7,806,254
Office of Administrative Hearings 4,992,437 150,976 0 150,976 1.00 5,143,413
Revenue 80,539,222 (81,543) 0 (81,543) 0.00 80,457,679
Secretary of State 11,676,506 74,189 0 74,189 0.00 11,750,695
State Board of Elections 6,620,578 (107,215) 0 (107,215) 0.00 6,513,363
State Budget and Management 7,586,922 (55,514) 0 (55,514) 1.00 7,531,408
State Budget and Management -- Special 0 1,500,000 500,000 2,000,000 0.00 2,000,000
State Controller 22,205,229 521,157 0 521,157 0.00 22,726,386
Treasurer - Operations 9,734,913 558,471 55,000 613,471 4.00 10,348,384
Treasurer - Retirement / Benefits 20,664,274 1,027,025 0 1,027,025 0.00 21,691,299
Total General Government 350,503,464 9,598,136 15,805,000 25,403,136 1.30 375,906,600
Statewide Reserves and Debt Service:
Debt Service:
Interest / Redemption 719,974,837 (18,125,622) 0 (18,125,622) 0.00 701,849,215
Federal Reimbursement 1,616,380 0 0 0 0.00 1,616,380
Subtotal Debt Service 721,591,217 (18,125,622) 0 (18,125,622) 0.00 703,465,595
Statewide Reserves:
Contingency and Emergency Fund 5,000,000 0 0 0 0.00 5,000,000
Salary Adjustment Reserve 7,500,000 17,500,000 0 17,500,000 0.00 25,000,000
OSHR Minimum of Market Adjustment 0 12,000,000 0 12,000,000 0.00 12,000,000
Reserve for Future Benefit Needs 0 71,000,000 0 71,000,000 0.00 71,000,000
Workers' Compensation Reserve 0 21,500,543 0 21,500,543 0.00 21,500,543
Information Technology Reserve 18,803,648 3,114,053 (1,358,973) 1,755,080 0.00 20,558,728
Information Technology Fund 24,199,049 (1,755,080) 0 (1,755,080) 0.00 22,443,969
Job Development Investment Grants (JDIG) 63,045,357 8,682,769 0 8,682,769 0.00 71,728,126
8
Revised
Base Budget Recurring Nonrecurring Net FTE Appropriation
2016-17 Adjustments Adjustments Changes Changes 2016-17
Summary of General Fund Appropriations
Fiscal Year 2016-17
2015 Legislative Session
Legislative Adjustments
One North Carolina Fund 9,000,000 0 0 0 0.00 9,000,000
Pending Legislation 4,500,000 (4,500,000) 0 (4,500,000) 0.00 0
Voter Information Verification Act 1,000,000 (1,000,000) 0 (1,000,000) 0.00 0
Film and Entertainment Grant Fund 0 0 30,000,000 30,000,000 0.00 30,000,000
Public Schools Average Daily Membership (ADM) 0 107,000,000 0 107,000,000 0.00 107,000,000
UNC System Enrollment Growth Reserve 0 31,000,000 0 31,000,000 0.00 31,000,000
Subtotal Statewide Reserves 133,048,054 264,542,285 28,641,027 293,183,312 0.00 426,231,366
Total Reserves and Debt Service 854,639,271 246,416,663 28,641,027 275,057,690 0.00 1,129,696,961
Total General Fund for Operations 20,845,443,899 1,249,863,856 (181,927,177) 1,067,936,679 206.72 21,913,380,578
Capital Improvements
Armory and Facility Development Projects 0 0 5,087,500 5,087,500 0.00 5,087,500
NCSU Engineering Building 0 0 1,000,000 1,000,000 0.00 1,000,000
Total Capital Improvements 0 0 6,087,500 6,087,500 0.00 6,087,500
Total General Fund Budget 20,845,443,899 1,249,863,856 (175,839,677) 1,074,024,179 0.00 21,919,468,078
9
Education
Section F
[This page intentionally blank.]
Public Education
Recommended Base Budget
Legislative Changes
$8,106,033,100 $8,106,033,100
GENERAL FUND
2015 Annotated Conference Committee Report
FY 15-16 FY 16-17
A. Reserve for Salaries and Benefits
$62,171,653
$79,521,583
1 R $62,171,653 R
Funds several changes to the Statewide teachers salary schedule, NR
including an increase in starting pay from $3,300 to $3,500 per month
(i.e. $33,000 to $35,000 per year for a 10-month teacher), an
experience-based step increase for educators earning a year of
creditable experience, and a sixth tier for school psychologists, speech
pathologists and school audiologists. Funds are also provided for a
$750 one-time bonus for educators and to ensure that bonuses
received in FY 2014-15 are continued as appropriate. (S.L. 2015-241,
Sec. 9.1 and 30.18A)
Compensation Reserve - Educators
$4,550,919
$3,599,248
2 R $4,550,919 R
Provides funds for a $750 bonus for school-based administrators NR
(SBAs) and for an experience-based step increase for SBAs earning a
year of creditable experience. Funds are also appropriated to continue
the bonus granted in FY 2014-15 for SBAs who did not receive a
salary increase in that year; this bonus shall continue to be paid
monthly. (S.L. 2015-241, Sec. 9.2 and 30.18A)
Compensation Reserve - School-based Administrators
(SBAs)
$39,781,698
3
Provides funds for a $750 one-time bonus for central office and non- NR
certified personnel within local education agencies (LEAs). This bonus
shall not be considered part of an employee's annual salary or base
rate of pay for retirement purposes. (S.L. 2015-241, Sec. 9.3, 9.4, and
30.18A)
Compensation Reserve - Other LEA Personnel
$216,430
$676,818
4 R $216,430 R
Provides funds for a $750 one-time bonus for State employees. This NR
bonus shall not be considered part of an employee's annual salary or
base rate of pay for retirement purposes. In addition, funds are
appropriated for the changes to the Statewide teacher salary schedule
that affect State agency teachers within the Department. (S.L. 2015-
241, Sec. 30.9, 30.10, and 30.18A)
Compensation Reserve - DPI
Public Education Page F 1
2015 Annotated Conference Committee Report FY 15-16 FY 16-17
5 $6,308,775 R $6,308,775 R
Increases the State’s contribution for members of the Teachers’ and
State Employees’ Retirement System to fund increased retiree medical
premiums. Total General Fund appropriation across all sections in the
committee report is $11.0 million in FY 2015-16 and FY 2016-17. (S.L.
2015-241, Sec. 30.20)
State Retirement Contributions - School District Personnel
6 $49,396 R $49,396 R
Increases the State’s contribution for members of the Teachers’ and
State Employees’ Retirement System to fund increased retiree medical
premiums. Total General Fund appropriation across all sections in the
committee report is $11.0 million in FY 2015-16 and FY 2016-17. (S.L.
2015-241, Sec. 30.20)
State Retirement Contributions - DPI
7 $14,124,040 R $14,124,040 R
Provides additional funding to continue health benefit coverage for
enrolled active employees supported by the General Fund for the 2015-
17 fiscal biennium. (S.L. 2015-241, Sec. 30.20)
State Health Plan - School District Personnel
8 $77,199 R $77,199 R
Provides additional funding to continue health benefit coverage for
enrolled active employees supported by the General Fund for the 2015-
17 fiscal biennium. (S.L. 2015-241, Sec. 30.20)
State Health Plan - DPI
B. Technical Adjustments
9 $100,236,542 R $100,236,542 R
Revises allotted FY 2015-16 ADM to reflect 17,338 more students than
are included in FY 2014-15 allotted ADM. This adjustment includes
revisions to multiple position, dollar, and categorical allotments.
Funding associated with projected FY 2016-17 ADM growth is
reserved in the "Reserves, Debt Service and Adjustments" section of
this report.
Average Daily Membership (ADM) (Multiple)
10 $404,103 R $404,103 R
Adjusts funding budgeted for the Children with Disabilities preschool
and school age allotments to reflect actual student headcount. This
adjustment revises budgeted funding for both preschool and school-age
children with special needs to reflect the April 1, 2015 headcount
and does not modify per-student funding.
Exceptional Children Headcount (1860)
11 ($14,839,270) R ($14,977,035) R
Revises budgeted funding for certified personnel salaries based on
actual salary data from December 2014. The adjustment does not
reduce any salary paid to certified personnel, nor does it reduce the
number of guaranteed State-funded teachers, administrators, or
instructional support personnel.
Average Certified Personnel Salaries (Multiple)
Public Education Page F 2
2015 Annotated Conference Committee Report FY 15-16 FY 16-17
12 $254,586,185 R $254,586,185 R
Adjusts the receipts budgeted for the Classroom Teachers allotment to
reflect a new distribution of NC Education Lottery (Lottery) receipts.
This adjustment, while eliminating Lottery support for this allotment,
does not impact the combined total funding from Lottery and other
General Fund sources available to it. (S.L. 2015-241, Sec. 5.2)
Classroom Teachers (1800)
13 ($310,455,157) R ($314,950,482) R
Adjusts the receipts budgeted for the Noninstructional Support
Personnel allotment to reflect a new distribution of Lottery receipts.
This adjustment, while significantly reducing General Fund support for
this allotment, does not impact the combined total funding from Lottery
and other General Fund sources available to it. (S.L. 2015-241, Sec.
5.2)
Noninstructional Support Personnel (1800)
($3,978,850)
($3,978,850)
14 R ($3,978,850) R
Increases budgeted receipts from Civil Penalties and takes a NR
corresponding nonrecurring General Fund reduction. The nonrecurring
reduction reflects actual overrealized receipts in FY 2014-15, while the
recurring reduction reflects an increased estimate of anticipated FY
2015-17 receipts. (S.L. 2015-241, Sec. 5.3)
Civil Penalties (1800)
C. Public School Funding Adjustments
15 ($10,091,091) R ($10,091,091) R
Adjusts the supplemental allotment for school districts in low-wealth
communities to align funding availability with actual school district
eligibility. This adjustment will not reduce funding to eligible districts. A
related provision in this act adjusts the Low-Wealth formula to provide
the same amount of supplemental funding to school districts in certain
low-wealth counties as was received in the 2012-2013 fiscal year.
These local school administrative units have an average daily
membership of more than 23,000 students and are in counties that
also contain a base of the Armed Forces of the United States. $205.5
million will be available for this allotment. (S.L. 2015-241, Sec. 8.3)
Low-Wealth Supplemental Funding (1800)
16 $138,134,525 R $138,134,525 R
Provides funding sufficient to maintain the FY 2014-15 level of support
for this allotment. Additional funds are provided in the "Average Daily
Membership" item that will have the impact of increasing overall
support for Teacher Assistants due to increased student headcount.
$377.1 million will be available for this allotment in FY 2015-16 and FY
2016-17. (S.L. 2015-241, Sec. 8.47)
Teacher Assistants (1800)
Public Education Page F 3
2015 Annotated Conference Committee Report FY 15-16 FY 16-17
17 $26,898,798 R
Increases funding to school districts for guaranteed Classroom
Teachers positions in grade 1. Beginning in FY 2016-17, the teacher
allotment ratio will be decreased by 1 student per teacher in grade 1 to
provide 1 teacher per 16 students.
Total funding for guaranteed classroom teacher positions, inclusive of
salary and benefits costs, will be $4.31 billion in FY 2016-17. (S.L.
2015-241, Sec. 8A.3)
Increased Funding for Classroom Teachers (1800)
18 $21,820,000 R $31,030,837 R
Increases General Fund support for textbooks and digital resources,
bringing total funding for this allotment to $52.4 million in FY 2015-16
and $62.0 million in FY 2016-17. (H.B. 738; S.L. 2015-241, Sec. 8.18
and 8.33)
Textbooks and Digital Resources (1800)
19 $2,000,000 R $12,000,000 R
Provides additional support for this Initiative, which brings broadband
connectivity to all K-12 public school buildings in the State. New funds
will allow enhancement of school-level internal Wi-Fi networks to
provide high-quality, reliable connectivity to the classroom level. Total
State funding for the School Connectivity Initiative will total $21.9
million in FY 2015-16 and $31.9 million in FY 2016-17. (H.B. 660)
School Connectivity Initiative (1900)
$621,338
$100,000
20 R $932,007 R
Provides CIHS allotment support to fulfill the funding requests for new NR
CIHSs. Funding will support schools in Pitt, Watauga, and Wilson
Counties. These schools will receive the $310,669 allotment provided
to other CIHS programs. Wilson Academy of Applied Technology will
receive nonrecurring planning funds in FY 2015-16 and the full CIHS
allotment beginning in FY 2016-17, as it will open a year later than the
other CIHSs listed above. Total support in the Public Education
budget for CIHS programs will be $24.3 million in FY 2015-16 and
$24.5 million in FY 2016-17. (H.B. 500)
Cooperative and Innovative High Schools (CIHS) (1821)
21 $800,000 R $800,000 R
Provides additional support to the Department of Public Instruction
(DPI) for the payment of tuition at four-year colleges and universities
on behalf of students taking college-level coursework through CIHS
programs. Total support for tuition will be $2.5 million.
Cooperative and Innovative High School Tuition (1821)
22 ($25,079,807) R ($25,079,807) R
Reduces by approximately 5% the total budget for this allotment, which
supports transportation personnel salaries, diesel fuel, replacement
parts, and yellow school bus maintenance. This reduction reflects a
lower projected cost for diesel fuel ($2.17 per gallon) than is included
in the base budget ($3.15 per gallon). Total funding for this allotment
will be $444.4 million in FY 2015-16 and FY 2016-17.
Transportation (1830)
Public Education Page F 4
2015 Annotated Conference Committee Report FY 15-16 FY 16-17
23 $2,500,000 R $2,500,000 R
Provides funding for the ADM Contingency Reserve to offset the
potential costs associated with two virtual charter schools beginning
operations in the 2015-16 school year. Total support for the reserve
will be $8.8 million.
ADM Contingency Reserve (1800)
24 $20,000,000 R $20,000,000 R
Provides additional funds to expand the RTA Reading Camps to serve
1st and 2nd graders, in addition to the currently served 3rd graders.
As specified in a related provision, newly eligible summer camp
participants will be 1st and 2nd grade students who demonstrate
reading comprehension below grade level as identified through the
administration of formative and diagnostic assessments. These
expansion funds shall be allocated in a manner consistent with
allocation of the summer camp funding for 3rd graders. (S.L. 2015-
241, Sec. 8.48)
Read to Achieve (RTA) Reading Camp-1st & 2nd Grade
Expansion (multiple)
25 $3,812,141 R $8,520,748 R
Provides additional funds to the Department of Public Instruction to
carry out elements of the Excellent Public Schools Act contained in
Section 7A.1 and Section 7A.7 of S.L. 2012-142, 2012 Appropriations
Act. DPI will have $41.8 million available to implement these
requirements in FY 2015-16 and $46.5 million in FY 2016-17.
(S.L. 2015-268, Sec. 3.8, General Government Technical Corrections,
amends this item to clarify that these funds shall not be used to
increase funding for the North Carolina Teacher Corps program.)
Excellent Public Schools Act (Multiple)
26 $871,474 R $871,474 R
Provides additional support to expand EVAAS capacities in support of
the Read to Achieve program as well as student and teacher
performance measurement. Total State support for EVAAS will be
$3.7 million. (S.L. 2015-241, Sec. 8.42)
Education Value-Added Assessment System (EVAAS) (1800)
$24,120,000
27
Provides nonrecurring funding to support Driver Training programs NR
administered at the LEA level. State support in FY 2016-17 for this
activity is provided by the Civil Fines and Forfeitures Fund. (H.B. 919;
S.L. 2015-241, Sec. 5.3 and 29.30)
Driver Training (1830)
28 $310,669 R $310,669 R
Provides additional funding to the Northeast Regional School of
Biotechnology and Agriscience in Jamesville, NC. (S.L. 2015-241,
Sec. 8.43)
Regional Schools (1821)
Public Education Page F 5
2015 Annotated Conference Committee Report FY 15-16 FY 16-17
D. Grants
29 $84,486 R $84,486 R
Provides support to expand the programs and services provided by
Beginnings for Parents of Children Who Are Deaf or Hard of Hearing,
Inc. (Beginnings), as part of its outreach and support to North Carolina
families. Total FY 2015-16 and FY 2016-17 State support for
Beginnings will be $1,004,216.
Beginnings for Children, Inc. (1901)
$180,000 $180,000
30
Provides funds to the State Board of Education to contract with an NR NR
independent entity to administer a residential science, mathematics,
engineering and technology (STEM) enrichment program for
traditionally underserved students. Participation in the program shall
be limited to students of the Northampton County Schools, Weldon
City Schools, Roanoke Rapids City Schools and KIPP Pride High
School.
(S.L. 2015-264, Sec. 91.5, GSC Technical Corrections 2015, adds
Halifax County Schools to the list of eligible participants.)
Eastern North Carolina STEM Summer Program (1901)
E. Department of Public Instruction
31 ($2,500,000) R ($2,500,000) R
Reduces State General Fund support for DPI by 5.2%. The State
Board of Education may allocate this reduction at its discretion. $45.3
million will remain available to support DPI operations. (S.L. 2015-241,
Sec. 8.37)
DPI Flexible Reduction (Multiple)
$266,735,700
$144,000,497
$313,231,521
$180,000
Total Legislative Changes
Total Position Changes
Revised Budget $8,516,769,297 $8,419,444,621
R
NR
R
NR
Public Education Page F 6
Special Provisions
Department: Public Education
2015 Session: HB 97
Provides $3,926.97 per child for children with disabilities to each local education agency (LEA) for
the lesser of (i) all children who are identified as children with disabilities, or (ii) 12.5% of the
LEA's allotted average daily membership (ADM).
Section: 8.1
Title: FUNDS FOR CHILDREN WITH DISABILITIES
Summary
Provides $1,280.70 per child for academically and intellectually gifted children to each LEA for a
maximum of 4% of each LEA's allotted ADM for the 2015-17 school years.
Section: 8.2
Title: FUNDS FOR ACADEMICALLY GIFTED CHILDREN
Summary
Continues the formula for determining eligibility for and distribution of funds appropriated in FY
2015-16 and FY 2016-17 for supplemental funding for public schools in low-wealth counties.
Subsection (h) continues funding for counties that contain a base of the Armed Forces of the
United States and that have an ADM of more than 23,000 students regardless of other attributes
that would make those counties ineligible for funding.
Section: 8.3
Title: USE OF SUPPLEMENTAL FUNDING IN LOW-WEALTH COUNTIES
Summary
Continues the formula for the small county allotment as modified by Section 8.4 of S.L. 2014-100,
Appropriations Act of 2014. This section provides a tiered funding formula for distributing the
small county supplemental funding allotment. Under the formula, each eligible LEA receives a
defined dollar amount based on its allotted ADM.
Section: 8.4
Title: SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING
Summary
Continues the formula for the DSSF allotment. The section allots the dollar equivalent of a
number of teaching positions (including benefits). The amount provided is based on the number
of positions required to reduce class sizes for the eligible DSSF population as defined by the
State Board of Education (SBE) from a ratio of 1 teacher for every 21 students to a lower
proposed ratio (depending on an LEA's wealth, per the low wealth allotment formula). Additionally,
the provision holds harmless the original 16 pilot LEAs; these LEAs may not receive less than
their FY 2006-07 allotment.
Section: 8.5
Title: DISADVANTAGED STUDENT SUPPLEMENTAL FUNDING (DSSF)
Summary
Directs that funds appropriated for UERS for the 2015-17 fiscal biennium shall not revert.
Section: 8.7
Title: UNIFORM EDUCATION REPORTING SYSTEM (UERS) FUNDS
Summary
Public Education Page F 7
Modifies G.S. 115C-238.54 to clarify that funds appropriated for Cooperative Innovative High
Schools shall not be adjusted for any legislative increase in public school personnel salaries.
Section: 8.8
Title: COOPERATIVE INNOVATIVE HIGH SCHOOLS
Summary
Requires the SBE to study the existing funding formula for the North Carolina Virtual Public
School (NCVPS) and to look at the cost/benefit of offering an alternative formula option. The
findings shall be reported to the Joint Legislative Education Oversight Committee (JLEOC) by
January 15, 2016.
Section: 8.11
Title: STUDY NCVPS ALTERNATIVE FUNDING FORMULA
Summary
Encourages the SBE to evaluate the feasibility of integrating competency‑based assessments for
use in LEAs and as part of the statewide testing system for measuring student performance and
student growth. (H.B. 439)
Section: 8.12
Title: COMPETENCY-BASED LEARNING AND ASSESSMENTS
Summary
Modifies existing law requiring the Department of Public Instruction (DPI) to establish collaborative
procurement processes for digital and technology purchases by LEAs. Subsection (a) repeals
Section 7.6 of S.L. 2013-360, Appropriations Act of 2013, as amended by Section 91 of S.L. 2014-
115, Technical and Other Corrections. The remainder of the section requires the SBE to
coordinate with the Friday Institute in developing collaborative procurement agreements and to
annually report on both collaborative procurement agreements and their resulting savings. (H.B.
660)
Section: 8.14
Title: COLLABORATIVE PROCUREMENT
Summary
Renames the textbooks allotment as the "textbooks and digital resources allotment," effective
July 1, 2015. The allowable uses for these funds shall remain unchanged.
Section: 8.18
Title: REVISE THE DESIGNATION OF THE TEXTBOOK FUNDING ALLOTMENT
Summary
Modifies G.S. 115C-302.1(b) to prohibit LEAs from reducing the employment term for any
vocational agriculture teacher positions that were 12-month positions for the 2014-15 school year
for any school year thereafter.
Section: 8.22
Title: TWELVE-MONTH PERSONNEL POSITIONS FOR VOCATIONAL AGRICULTURE TEACHERS
Summary
Public Education Page F 8
Eliminates five reports that the General Assembly has determined are no longer necessary.
Subsection (a) modifies G.S. 115C-12(19) to eliminate the SBE report on paperwork reduction.
Subsection (b) modifies G.S. 115C-12(25) to eliminate the SBE report on the ABCs accountability
program.
Subsection (c) modifies G.S. 115C-102.6B(b) to eliminate the SBE report on the State School
Technology Plan.
Subsection (d) modifies G.S. 115C-105.35(a) to eliminate the SBE report on the evaluation of the
school-based accountability system.
Subsection (e) modifies G.S. 115C-375.3 to eliminate the LEA and charter school report on
students with diabetes.
Section: 8.25
Title: REPEAL UNNECESSARY STATE BOARD OF EDUCATION REPORTS
Summary
Public Education Page F 9
Creates additional school safety requirements.
Subsection (a) modifies G.S. 115C-47(40) to require each LEA to adopt a School Risk
Management Plan (SRMP) for each school in the district, utilizing the School Risk and Response
Management System (SRRMS).
Subsection (b) modifies G.S. 115C-105.49 to increase the frequency of school safety exercises
from biennially to annually. Exercises must contain certain prescribed elements. Additionally, the
Department of Public Safety (DPS), Division of Emergency Management (DEM), and the Center
for Safer Schools (CSS) shall provide guidance and recommendations to LEAs on the types of
hazards for which to plan.
Subsection (c) creates a new G.S. 115C-105.49A to require DPS, DEM, and CSS to construct
and maintain a statewide SRRMS.
Subsection (d) modifies G.S. 115C-105.51 to require DPS to develop standards and guidelines
related to anonymous tip lines. Additionally, DPS, DEM, and CSS are required to create their own
anonymous tip line and statewide panic alarm system that can be integrated with the SRRMS.
Subsection (e) makes a conforming change to G.S. 115C-105.52.
Subsection (f) modifies G.S. 115C-105.53 to provide LEAs the option of sharing with law
enforcement the keys to the main entrance of all school buildings in place of access to key
storage devices such as KNOX® boxes for all school buildings.
Subsections (g) through (j) make conforming changes to the General Statutes.
Subsection (k) requires LEAs to adopt SRMPs by March 1, 2017.
Subsections (l) and (m) encourage charter and regional schools to adopt SRMPs by March 1,
2017.
Subsection (n) requires DPS to implement the anonymous safety tip line and statewide panic
alarm by July 1, 2016.
Subsection (o) requires the Department of Public Safety, Division of Emergency Management,
and the Center for Safer Schools to submit a report to the Joint Legislative Commission on
Governmental Operations on the status of the SRRMS by February 1, 2016. (H.B. 380)
Section: 8.26
SCHOOL SAFETY/STATEWIDE Title: SCHOOL RISK AND RESPONSE MANAGEMENT SYSTEM
Summary
Expands the list of LEAs participating in the federal Innovation Fund Grant: Validating Early
College Strategies for Traditional Comprehensive High Schools to include Duplin, Harnett, and
Scotland counties. Additionally, this section extends the program's authorization by three years
through the end of FY 2019-20.
(S.L. 2015-268, Sec. 3.1, General Government Technical Corrections, amends this section to
clarify that students who would generate budget FTE as provided in G.S. 115D-20(4)a may
continue to do so.)
Section: 8.27
Title: INVESTING IN INNOVATION GRANT
Summary
Public Education Page F 10
Requires the SBE to study and propose recommended changes to G.S. 115C-218.5, which
requires certain charter schools to retain $50,000 of school closure funds. The SBE shall report
its recommended changes, if any, to the JLEOC by February,15, 2016. (H.B. 334)
Section: 8.28
Title: STUDY ON CHARTER SCHOOL CLOSURE FUNDS
Summary
Modifies a competitive grant program for extended learning time programs that was initiated in
Section 8.19 of S.L. 2014-100, Appropriations Act of 2014. Funding is provided by utilizing $6
million from the at-risk student services/alternative schools allotment. LEAs, charter schools,
nonprofits, and nonprofits working in collaboration with LEAs shall be eligible to receive grants of
up to $500,000 for up to two years. Programs should focus on serving at-risk students, and
grantees must certify that grant funds will be matched on the basis of $3 in grant funds for every
$1 in non-grant funds. Nonprofit grantees may serve as the fiscal agent for the grant. Grant
recipients shall report annually to DPI. DPI is required to provide interim reports on the grant
program to the JLEOC each September 1 5 through 2017, with a final report due September 15,
2018. (H.B. 473, S.B. 551)
Section: 8.29
Title: AFTER-SCHOOL QUALITY IMPROVEMENT COMPETITIVE GRANTS
Summary
Requires DPI to study and implement various policy changes for improving the outcomes of
students with disabilities. DPI shall examine: IEP requirements to incorporating outcome-based
goals, expanding access to the Future Ready Core Course of Study, and examining model
programs to increase the graduation rate. DPI shall report to the JLEOC by November 15 and
annually thereafter on these activities. (H.B. 921)
Section: 8.30
Title: DPI STUDY/IMPROVE OUTCOMES FOR STUDENTS WITH DISABILITIES
Summary
Amends G.S. 115C-105.25(c) to require LEAs to include an explanation for any funds transfer of
funds from the textbook and digital resources allotment as part of required annual financial
reporting on its website.
Section: 8.33
Title: TEXTBOOKS AND DIGITAL RESOURCES ALLOTMENT/USE OF FUNDS
Summary
Requires the JLEOC to examine and evaluate the Juvenile Literacy Center program established
in Wake County and to report the results prior to the convening of the 2016 Regular Session.
Section: 8.34
Title: STUDY ON JUVENILE LITERACY PROGRAM
Summary
Provides DPI the authority to reorganize to implement budget reductions for the 2015-17 fiscal
biennium and maintains the SBE's responsibility for any such reorganization. This section
prohibits the SBE from making budget reductions to the North Carolina Center for Advancement
of Teaching, the Eastern North Carolina School for the Deaf, the North Carolina School for the
Deaf, and the Governor Morehead School – other than to eliminate positions vacant for more than
16 months. Additionally, this section prohibits funding reductions to Communities in Schools of
North Carolina, Inc., Teach for America, Inc., or Beginnings for Parents of Children Who Are Deaf
or Hard of Hearing, Inc.
Section: 8.37
Title: BUDGET REDUCTIONS/DEPARTMENT OF PUBLIC INSTRUCTION
Summary
Public Education Page F 11
Modifies G.S. 115C-325.4 and G.S. 115C-325(e)(2) to codify an existing requirement (Section
7.23 of S.L. 2011-145, Appropriations Act of 2011) that LEAs adopt policies for performance-based
reductions in force. (S.B. 95)
Section: 8.38
Title: LOCAL BOARDS OF EDUCATION/PERFORMANCE-BASED RIFS
Summary
Clarifies the use and regulation of driver education fees and creates detailed reporting
requirements for use in a JLEOC study of the program.
Subsection (a) modifies G.S. 115C-215(a) to clarify that driver education is an element of making
public education available to all students.
Subsection (b) modifies G.S. 115C-216(g) to clarify that LEAs may waive or reduce fees for
students unable to pay due to economic hardship.
Subsection (c) modifies G.S. 115C-105.25(b) to prohibit the transfer of other State funds into the
driver education allotment.
Subsection (d) requires LEAs to report various data related to driver education to DPI by
December 15, 2015.
Subsection (e) requires DPI to report to JLEOC by February 15, 2016 on the data provided by the
LEAs.
Subsections (f) and (g) require the JLEOC to study driver education and make recommendations
to improve the program's quality and/or to reduce costs.
Subsections (a), (b), and (c) sunset on December 31, 2017.
Section: 8.39
Title: DRIVER EDUCATION TRAINING
Summary
Requires DPI to report to the JLEOC by October 15, 2016 regarding various metrics for evaluating
the educator licensure processing system, including implementation of the electronic processing
of applications.
Section: 8.40
Title: DPI REPORT ON THE EDUCATOR LICENSURE PROCESSING SYSTEM
Summary
Public Education Page F 12
Creates new standards for educator preparation programs in North Carolina and reorganizes and
codifies certain existing standards. Most notably this section adds a minimum grade point
average (GPA) requirement for admission into approved educator preparation programs, and
establishes requirements for student clinical experiences (i.e., student teaching).
Subsection (a) creates a new G.S. 115C-296.8 through 296.13 to require the SBE to set
standards for educator preparation programs that mirror national standards. The approvals shall
include a peer review process and technical assistance to support teacher preparation programs.
Subsection (a) also codifies existing SBE Policy that all programs in NC must meet State or
national approval standards – graduates of programs that do not meet those standards are not
eligible for initial licensure.
Subsection (a) adds a minimum GPA requirement for admission into approved educator
preparation programs.
Finally, subsection (a) requires formal partnerships between educator preparation programs and
schools for student clinical experiences including:
• Standards for clinical educators who will work with student teachers;
• Clinical experiences that are at least 16 weeks long and expose the student to the beginning and
end of the school year; and
• A pedagogy assessment to determine clinical practice performance.
The remainder of this section reorganizes, recodifies, and makes conforming changes to all
statutes related to educator preparation programs.
Educator preparation programs must meet the new requirements by July 1, 2017.
(S.L. 2015-268, Sec. 3.7, General Government Technical Corrections, changes the reporting date
in G.S. 115C-296.13(e) from November 15 to December 15.)
Section: 8.41
Title: MODIFY EDUCATOR PREPARATION PROGRAM APPROVAL PROCESS
Summary
Modifies Article 22 of G.S. 115C to require LEAs to provide individual teachers with access to
school-level value-added data and the teacher's own value-added data.
Section: 8.42
Title: ACCESS FOR TEACHERS TO EVAAS DATA
Summary
Allows the Academy at High Point Central, the Academy at Ben L. Smith High School, STEM
Early College at NC A&T State University, Middle College at the University of North Carolina at
Greensboro, Vernon Malone College and Career Academy, and the Northeast Regional School of
Biotechnology and Agriscience to operate as cooperative innovative high schools beginning with
the 2015-16 school year.
Section: 8.43
Title: CERTAIN CIHS OPERATING WITHOUT ADDITIONAL FUNDS
Summary
Modifies G.S. 115C-50(a) to require that mandatory training for local boards of education occur
biennially, rather than annually.
Section: 8.44
CHANGE THE MANDATORY ANNUAL TRAINING FOR LOCAL BOARDS OF EDUCATION TO
EVERY TWO YEARS
Title:
Summary
Public Education Page F 13
Repeals G.S. 115C-47(18a)b, which had required local boards of education to adopt rules
ensuring that teachers with 27 or more years of experience are not assigned extracurricular
activities unless they request the assignments in writing, and that other noninstructional duties be
minimized so that these teachers have an opportunity to informally share their experience and
expertise with their colleagues.
Section: 8.45
REPEAL EXTRACURRICULAR DUTIES RESTRICTION FOR TEACHERS WITH 27 OR MORE
YEARS OF EXPERIENCE
Title:
Summary
Modifies G.S. 115C-296(b)(1) to ensure that retired teachers serving as substitutes can maintain
their teaching license in order to get paid at a higher rate.
Section: 8.46
LICENSURE FOR RETIRED SUBSTITUTE TEACHERS WITH AT LEAST 30 YEARS OF
TEACHING EXPERIENCE
Title:
Summary
Creates new restrictions on allowable uses of funds and modifies the allotment funding formula.
Subsection (a) amends G.S. 115C-105.25(b) to prohibit LEAs from transferring teacher assistant
funds to any other allotment.
Subsection (b) creates a new funding formula that provides LEAs with the dollar equivalent of a
teacher assistant position at various student ratios depending on grade level. The formula will
provide LEAs with the dollar equivalent of two teacher assistants for every three classrooms in
kindergarten, one teacher assistant for every two classrooms in grades one and two, and one
teacher assistant for every three classrooms in grade three.
Section: 8.47
Title: TEACHER ASSISTANT ALLOTMENT
Summary
Modifies G.S. 115C-83.3(4a), G.S. 115C-83.6, G.S. 115C-83.10, and G.S. 115C-83.11 to allow
LEAs to enroll first and second grade students with below-grade-level reading comprehension in
reading camps. Parents or guardians of first and second grade students with below-grade-level
reading comprehension are encouraged, but not required, to enroll their children in reading
camps. Additionally, this section adds the number and percentage of first and second grade
students demonstrating and not demonstrating reading comprehension at grade level to the
reporting requirements of G.S. 115C-83.10.
Section: 8.48
Title: READING CAMPS OFFERED TO FIRST AND SECOND GRADE STUDENTS
Summary
Clarifies that funds for the Excellent Public Schools Act shall not be used to increase funding for
the North Carolina Teacher Corps program.
(S.L. 2015-268, Sec. 3.8, General Government Technical Corrections, adds this section to S.L.
2015-241.)
Section: 8.49
Title: EXCELLENT PUBLIC SCHOOLS ACT FUNDS/TECHNICAL CORRECTION
Summary
Public Education Page F 14
Presents the General Assembly's findings regarding LEA compliance with Leandro. Despite a
history of adequate State and local funding and legislatively-granted flexibility in administration,
management, and employment at the local level to provide tools to facilitate compliance with
Leandro, some local boards of education have failed to:
• Prevent education bureaucracies from interfering with and overriding accountability measures
and education reforms required by State law;
• Properly administer the public schools; and
• Provide high-quality principals in every school and high-quality teachers in every classroom.
Additionally, this section clarifies the General Assembly's intent to provide LEAs and the SBE with
the ability to address these deficiencies.
Section: 8A.1
Title: LEGISLATIVE FINDINGS
Summary
Modifies G.S. 115C-47(1) to change the duty of local school boards from providing an "adequate
school system" to providing students with "the opportunity to receive a sound basic education."
Section: 8A.2
DUTY OF LOCAL BOARDS OF EDUCATION TO PROVIDE STUDENTS WITH THE
OPPORTUNITY TO RECEIVE A SOUND BASIC EDUCATION
Title:
Summary
Modifies G.S. 115C-301 to delineate the specific situations for which LEAs can apply for class
size waivers, and reinstates language (formerly repealed by Section 3.3.(a) of S.L. 2013-363,
Modifications/2013 Appropriations Act) allowing DPI to withhold superintendent salary funds in
LEAs that fail to meet class size requirements. Additionally, subsection (b) clarifies that class size
requirements in grades kindergarten through three shall remain unchanged for the 2015-17
school years.
Section: 8A.3
Title: CLASS SIZE IN KINDERGARTEN THROUGH THIRD GRADE
Summary
Creates new definitions of and consequences for low-performing schools and low-performing
school districts.
Subsection (a) repeals G.S. 115C-105.35(c), which had required the SBE to consider
incorporating into the School-Based Management and Accountability Program a character and
civic education component which may include a requirement for student councils.
Subsection (b) modifies G.S. 115C-105.37 to define "low-performing schools" as those receiving
a performance grade of D or F and failing to exceed growth expectations. For each such school,
the superintendent must develop a plan for school improvement that must be approved by the
local board and the SBE. The plan shall be made public on the district website, and parents shall
be notified.
Subsection (c) creates a new statute, G.S. 115C-105.39A, to create similar requirements for low-performing
districts. A "low-performing district" is defined as one in which the majority of schools
in the district are identified as low-performing. The superintendent of a low-performing district
must develop a district improvement plan that must be approved by the local board and the SBE.
The local board of education shall make the plan available on the district website, and each low-performing
school shall notify parents or guardians of the low-performing designation.
Section: 8A.4
Title: IDENTIFICATION OF LOW-PERFORMING SCHOOLS AND UNITS
Summary
Public Education Page F 15
Creates a new statute, G.S. 115C-66.5, authorizing the SBE to consolidate and merge contiguous
county LEAs. Mergers would require a written plan and would become effective on July 1
immediately following the first opportunity for the General Assembly to meet for at least 30 days.
Mergers may be disapproved by the General Assembly.
Section: 8A.5
STATE BOARD AUTHORITY TO CONSOLIDATE CONTIGUOUS COUNTY SCHOOL
ADMINISTRATIVE UNITS
Title:
Summary
Modifies G.S. 115C-105.26 to limit each LEA's ability to receive certain waivers from State laws or
rules. LEAs would only be allowed to apply for waivers related to class size or the school
calendar. The SBE shall report to the JLEOC by October 15 of each year on waivers granted.
Section: 8A.6
Title: LIMIT LOCAL BOARD OF EDUCATION WAIVERS
Summary
Sets the monthly salary schedule for the 2015-16 school year for certified personnel of North
Carolina public schools.
Subsection (a) sets the monthly salary schedule for the 2015-16 school year for licensed public
school personnel who are classified as teachers.
Subsection (b) sets salary supplements for licensed teachers who have NBPTS certification, are
classified as "M" teachers, have licensure based on academic preparation at the six-year degree
level, or have licensure based on academic preparation at the doctoral degree level. Additionally,
this section sets the certified school nurse salary supplement at 10%.
Subsection (c) establishes that first step of the salary schedule for school psychologists, speech
pathologists, and school audiologists shall be equivalent to Step 5 of the "A" salary schedule, and
that these employees shall receive a 10% salary supplement.
Subsection (d) sets the 26th step of the salary schedule for school psychologists, speech
pathologists, and school audiologists at 7.5% higher than the 25th step.
Subsection (e) clarifies that, in lieu of receiving annual longevity payments, the amounts of those
longevity payments are built into the salary schedule.
Subsection (f) states that teachers not otherwise receiving a salary increase from the applicable
amount on the new salary schedule are held harmless at the amount received in FY 2014-15,
including any State-provided bonuses, if applicable.
Subsection (g) includes instructional support personnel within the term "teacher."
A summary of this section is also available in the Salaries and Benefits section of the Annotated
Conference Committee Report.
Section: 9.1
Title: TEACHER SALARY SCHEDULE
Summary
Public Education Page F 16
Establishes the salary schedules and policies for school-based administrators.
Subsection (a) sets the salary schedules for the 2015-16 school year for principals and assistant
principals.
Subsections (b) and (c) define the appropriate classification and experience-based step
placement on the salary schedule for principals and assistant principals, except for principals at
alternative and cooperative innovative high schools. Classification is based on the number of
teachers and assistant principals paid from State funds that the position supervises. The
beginning classification for principals at alternative and cooperative innovative high schools shall
be the Principal III level except for principals who supervise 33 or more teachers and assistant
principals; these principals shall be classified in the same manner as principals at traditional
public schools. Placement on the experience-based step schedule is based on total number of
years of experience as a certified employee of the public schools with an additional step for every
three years of experience as a principal on or before June 30, 2009.
Subsection (d) maintains salary supplements for school-based administrators with a six-year
degree at $126 monthly and central office personnel with a doctoral degree at $253 monthly.
Subsection (e) sets the annual longevity schedule for school-based administrators at the longevity
rates provided to State employees under the North Carolina Human Resources Act.
Subsection (f) requires that a principal reassigned to a higher or lower classification due to being
transferred to a school with a different number of State-allotted teachers be placed on the salary
schedule as if the principal’s entire career had been served at the job classification of the new
school.
Subsection (g) requires that participants in an approved full-time master’s in-school administration
program receive up to a 10-month stipend, not to exceed the difference between the beginning
salary of an assistant principal plus program costs (tuition, fees, and books) and any fellowship
funds received.
Subsection (h) requires administrators with a one-year provisional assistant principal’s certificate
to be placed at the entry-level salary for an assistant principal or the appropriate step on the
teacher salary schedule, whichever is higher.
Subsection (i) provides a bonus of $809 to any principal or assistant principal who does not
receive a salary increase under the new salary schedule.
A summary of this section is also available in the Salaries and Benefits section of the Annotated
Conference Committee Report.
Section: 9.2
Title: SCHOOL-BASED ADMINISTRATOR SALARY SCHEDULE
Summary
Sets the salary ranges for superintendents, assistant superintendents, associate superintendents,
director/coordinators, supervisors, finance officers, and other permanent full-time personnel paid
from the central office allotment for the 2015-17 biennium. Salary ranges are unchanged from FY
2014-15.
A summary of this section is also available in the Salaries and Benefits section of the Annotated
Conference Committee Report.
Section: 9.3
Title: CENTRAL OFFICE SALARIES
Summary
Public Education Page F 17
States that noncertified public school employee salaries shall be unchanged for the 2015-17
biennium.
A summary of this section is also available in the Salaries and Benefits section of the Annotated
Conference Committee Report.
(S.L. 2015-268, Sec. 3.2, General Government Technical Corrections, amends this section to
clarify that salaries may be increased as otherwise provided by law, consistent with other State
employees.)
Section: 9.4
Title: NONCERTIFIED PERSONNEL SALARIES
Summary
Modifies laws to ensure no loss of pay for teachers who become administrators or for assistant
principals who become principals.
Subsection (a) modifies Section 7.22.(b) of S.L. 2009-451, Appropriations Act of 2009, to make a
conforming change.
Subsection (b) modifies G.S. 115C-285(a) to require that an assistant principal who becomes a
principal without a break in service be paid, on a monthly basis, at least as much as he or she
would earn as an assistant principal.
(S.L. 2015-268, Sec. 3.3, General Government Technical Corrections, adds a subsection (c) to
clarify that increases in salary due to this section shall not apply to work performed prior to July 1,
2015.)
A summary of this section is also available in the Salaries and Benefits section of the Annotated
Conference Committee Report. (H.B. 228)
Section: 9.5
NO PAY LOSS FOR TEACHERS WHO BECOME ADMINISTRATORS OR ASSISTANT
PRINCIPALS WHO BECOME PRINCIPALS
Title:
Summary
Department: Public Education
2015 Session: HB 259
Modifies Section 8.27(c) of S.L. 2015-241, 2015 Appropriations Act, to clarify that students who
generate budget full-time equivalent (FTE) as provided in G.S. 115D-20(4)a may continue to do
so.
Section: 3.1
Title: TECHNICAL CHANGE: INVESTING IN INNOVATION GRANT
Summary
Modifies Section 9.4 of S.L. 2015-241, 2015 Appropriations Act, to clarify that salaries for
noncertified personnel may be increased as otherwise provided by law, consistent with other
policies impacting State employees.
Section: 3.2
Title: TECHNICAL CHANGE: NONCERTIFIED PERSONNEL SALARIES
Summary
Public Education Page F 18
Modifies Section 9.5 of S.L. 2015-241, 2015 Appropriations Act, to clarify that salary increases
due to Section 9.5 of S.L. 2015-241 shall not apply to work performed prior to July 1, 2015.
Section: 3.3
TECHNICAL CHANGE: NO PAY LOSS FOR TEACHERS WHO BECOME ADMINISTRATORS
OR FOR ASSISTANT PRINCIPALS WHO BECOME PRINCIPALS
Title:
Summary
Modifies G.S. 115C-296.13(e), as enacted by Section 8.41(a) of S.L. 2015-241, 2015
Appropriations Act, to change the reporting date in G.S. 115C-296.13(e) from November 15 to
December 15.
Section: 3.7
TECHNICAL CHANGE: MODIFY EDUCATOR PREPARATION PROGRAM APPROVAL
PROCESS
Title:
Summary
Modifies S.L. 2015-241, 2015 Appropriations Act, to add a new Section 8.49. The new section
clarifies that funds for the Excellent Public Schools Act shall not be used to increase funding for
the North Carolina Teacher Corps program.
(See the Education section of the Conference Committee Report on page F-5, Item 25.)
Section: 3.8
Title: TECHNICAL CHANGE: EXCELLENT PUBLIC SCHOOLS ACT FUNDS
Summary
Department: Public Education
2015 Session: SB 119
Clarifies that students enrolled in the Halifax County Schools shall be permitted to participate in
the residential science, mathematics, engineering, and technology (STEM) enrichment program
for traditionally underserved students supported by S.L. 2015‑241, 2015 Appropriations Act.
(See the Education section of the Conference Committee Report on page F-6, Item 30.)
Section: 91.5
Title: BUDGET CHANGE: EASTERN NORTH CAROLINA STEM SUMMER PROGRAM
Summary
Public Education Page F 19
Community Colleges
Recommended Base Budget
Legislative Changes
$1,048,495,115 $1,048,495,115
GENERAL FUND
2015 Annotated Conference Committee Report
FY 15-16 FY 16-17
A. Reserve for Salaries and Benefits
32 $10,000,000 R $20,000,000 R
Provides funds for salary increases for State-funded local community
college employees. Community Colleges are given flexibility in
allocating these funds to their State-funded employees. (S.L. 2015-
241, Sec. 30.5)
Compensation Reserve - Community Colleges
$14,935,807
33
Provides funds for a $750 one-time bonus for State-funded community NR
college employees. This bonus shall not be considered part of an
employee's annual salary or base rate of pay for retirement purposes.
(S.L. 2015-241, Sec. 30.9, 30.10, and 30.18A)
Compensation Reserve - Community Colleges
$135,234
34
Provides funds for a $750 one-time bonus for State employees. This NR
bonus shall not be considered part of an employee's annual salary or
base rate of pay for retirement purposes. (S.L. 2015-241, Sec. 30.9,
30.10, and 30.18A)
Compensation Reserve - System Office
35 $1,025,726 R $1,025,726 R
Increases the State’s contribution for members of the Teachers’ and
State Employees’ Retirement System to fund increased retiree medical
premiums. Total General Fund appropriation across all sections in the
committee report is $11.0 million in FY 2015-16 and FY 2016-17. (S.L.
2015-241, Sec. 30.20)
State Retirement Contributions - Community Colleges
36 $13,256 R $13,256 R
Increases the State’s contribution for members of the Teachers’ and
State Employees’ Retirement System to fund increased retiree medical
premiums. Total General Fund appropriation across all sections in the
committee report is $11.0 million in FY 2015-16 and FY 2016-17. (S.L.
2015-241, Sec. 30.20)
State Retirement Contributions - System Office
37 $1,699,899 R $1,699,899 R
Provides additional funding to continue health benefit coverage for
enrolled active employees supported by the General Fund for the 2015-
17 fiscal biennium. (S.L. 2015-241, Sec. 30.20)
State Health Plan - Community Colleges
Community Colleges Page F 20
2015 Annotated Conference Committee Report FY 15-16 FY 16-17
38 $15,392 R $15,392 R
Provides additional funding to continue health benefit coverage for
enrolled active employees supported by the General Fund for the 2015-
17 fiscal biennium. (S.L. 2015-241, Sec. 30.20)
State Health Plan - System Office
B. Technical and Formula Adjustments
39 ($6,466,443) R ($6,466,443) R
Adjusts funds for the biennium based on the decline in community
college enrollment.
The Community College System total enrollment declined by 4,864 Full
Time Equivalent (FTE) students (2.1%) from the budgeted amount in
the FY 2014-15 certified budget for a savings of $6.5 million.
Enrollment Growth Adjustment (Multiple)
40 $16,968,959 R
Allows the Community College System to include curriculum courses
taught year round in the enrollment funding calculation for General
Fund support. There are currently 3,458 Full Time Equivalent students
enrolled within these courses at a Community College campus in the
Summer Term. These FTEs would now be included in the enrollment
funding formula to receive State support at the Tier 2 allocation rate
($4,907 per FTE). (H.B. 579; S.L. 2015-241, Sec. 10.5)
Summer Enrollment Funding (Multiple)
41 ($8,069,397) R ($16,138,793) R
Increases curriculum tuition by $4.00 per credit hour and budgets the
expected increase in receipts. The increase is effective beginning
Spring Semester 2016.
Tuition will increase from $72 to $76 per credit hour for residents and
from $264 to $268 for non-residents. Tuition for resident students will
increase by a maximum of $128 per year, from $2,304 to $2,432.
Curriculum Tuition (1620)
C. Other Adjustments
42 ($2,519,343) R ($2,519,343) R
Reduces funds related to purchase and contract to reflect efficiencies
created by participation in the State's Procurement Transformation
Program administered by the Department of Administration.
Procurement Efficiencies (Multiple)
$551,752 $551,752
7.00 7.00
43 R R
Restores funding for the System Office's Audit Services division. (H.B.
87; S.L. 2015-241, Sec. 10.6)
Audit Services (1300)
$7,500,000
44
Provides funds for the purchase of instructional equipment and NR
technology at all 58 colleges. These funds are in addition to the $49.0
million included in the base budget for this purpose. Funds shall be
distributed in accordance with the existing equipment allocation
formula.
Equipment (1623)
Community Colleges Page F 21
2015 Annotated Conference Committee Report FY 15-16 FY 16-17
45 $150,000 R $150,000 R
Provides funds for the Caldwell Community College Truck Driver
Training program.
Caldwell Community College Truck Driver Training Program
(1624)
46 $500,000 R $1,000,000 R
Establishes a program to place local community college-employed
career coaches in high schools. (S.B. 535; S.L. 2015-241, Sec. 10.14)
NC Works Career Coaches
$100,000 $100,000
47
Increases support for the Botanical Lab at Fayetteville Technical NR NR
Community College by $100,000 nonrecurring in each year of the
biennium. The total program funding for both FY 2015-16 and FY 2016-
17 will be $200,000.
Fayetteville Technical Community College Botanical Lab
(1624)
D. Financial Aid Adjustments
48 ($1,000,000) R ($1,000,000) R
Eliminates funding for the Yellow Ribbon Program which leveraged
federal matching funds to reduce tuition costs for certain non-resident
veterans. (S.L. 2015-116, Sec. 2)
Yellow Ribbon G.I. Education Enhancement Program (1900)
49 $2,000,000 R $2,000,000 R
Provides funds to offset a reduction in tuition receipts as a result of
granting certain non-resident veterans resident status for tuition
purposes. The federal Veterans Access, Choice, and Accountability
Act of 2014 requires public institutions of higher education to charge
certain non-resident veterans no more than the resident tuition and fee
rates or risk losing approval to receive federal educational benefits.
This item funds the expected costs of compliance with that Act for the
Community College System. (S.L. 2015-116)
Resident Tuition for Certain Non-Resident Veterans (1620)
($2,099,158)
$22,671,041
$17,300,405
$100,000
7.00 7.00
Total Legislative Changes
Total Position Changes
Revised Budget $1,069,066,998 $1,065,895,520
R
NR
R
NR
Community Colleges Page F 22
Special Provisions
Department: Community Colleges
2015 Session: HB 97
Allows the President of the North Carolina Community College System to reorganize the System
Office with approval of the State Board of Community Colleges. The reorganization authority
expires June 30, 2017.
Section: 10.1
Title: REORGANIZATION OF THE COMMUNITY COLLEGES SYSTEM OFFICE
Summary
Amends G.S. 115D-5(b) to allow community colleges to waive tuition and registration fees for
courses related to employment-specific outcomes for students also enrolled in literacy courses.
The State Board of Community Colleges is authorized to allow a college to utilize up to 20% of its
State literacy funds for these waivers and related instruction.
Section: 10.2
Title: BASIC SKILLS PLUS
Summary
Allows community colleges to expend funds allocated for equipment on repairs, renovations, and
new construction if such expenditures are required to accommodate the equipment being
purchased and approval is granted by the State Board of Community Colleges. Colleges must
match State funds with local funds for any new construction and must identify those funds by
June 30, 2017.
Section: 10.3
Title: EQUIPMENT FUNDING
Summary
Amends G.S. 115D-20(4)a to allow local community colleges to offer courses to freshman and
sophomore high school students that may lead to a certificate or diploma in the fields of
agriculture and natural resources and transportation technology.
Section: 10.4
EXPAND AGRICULTURAL AND TRANSPORTATION CLASSES TO FRESHMEN AND
SOPHOMORES
Title:
Summary
Amends G.S. 115D-5(v) to allow community colleges to include student membership hours in all
curriculum courses in State budget funding formulas.
Subsection (b) requires a report by the State Board of Community Colleges to the Joint
Legislative Education Oversight Committee by December 1, 2015 on the number of full time
equivalent students enrolled in the summer 2015 term.
Subsection (c) makes this section applicable for the summer 2015 term. (H.B. 579)
Section: 10.5
COLLEGES EARN BUDGET FTE FOR CURRICULUM COURSES TAUGHT DURING THE
SUMMER TERM
Title:
Summary
Community Colleges Page F 23
Amends G.S. 115D-5(m) to make changes to the State Board of Community Colleges education
program auditing function.
Subsection (a) repeals Section 10.15 of S.L. 2013-360, Appropriations Act of 2013, which had
eliminated this function.
Subsection (b) changes the title to "accountability function," makes the reviews of individual
colleges performed as part of this function periodic rather than annual, and directs the State
Board of Community Colleges to adopt rules governing such reviews.
Subsection (c) makes these changes applicable with the 2015-16 academic year.
Section: 10.6
Title: COMMUNITY COLLEGES PROGRAM COMPLIANCE REVIEW FUNCTION
Summary
Allows ninth and tenth grade students enrolled in Anson County Schools to participate in the
federal Youth Career Connect program at South Piedmont Community College and not be
charged tuition. South Piedmont Community College may not use such enrollments toward full
time equivalent (FTE) student budget funding formulas unless otherwise authorized. This
authority expires June 30, 2018. (H.B. 47)
(S.L. 2015-268, Sec. 3.4, General Government Technical Corrections, amends this section to
clarify that South Piedmont Community College can earn budget FTE for student enrollments
authorized in this section if such enrollments are authorized in G.S. 115D-20(4)a.)
Section: 10.11
Title: YOUTH CAREER CONNECT PROGRAM
Summary
Requires the State Boards of Community Colleges and Education to implement college remedial
education courses in the areas of reading and mathematics for certain high school seniors.
Subsection (a) specifies that high school seniors shall be identified as requiring remediation by
utilizing ACT scores, grade point averages, or other measures currently used by the State Board
of Community Colleges to determine college readiness. The State Boards of Community Colleges
and Education shall make all necessary changes to curriculum, policy, and rules to make such
remedial courses available for identified students. High schools shall use curriculum approved by
the State Board of Community Colleges.
The State Board of Community College shall develop measures to assess the quality of
remediation courses developed under this program and determine how long after high school
graduation such remedial education courses will remain valid for completion of an equivalent
community college remedial course.
The State Boards of Community Colleges and Education shall develop policies that require high
school faculty teaching remedial courses complete approved training requirements. The State
Board of Community Colleges has oversight over remedial courses.
Subsection (b) requires that the State Boards of Community Colleges and Education report to the
Joint Legislative Oversight Committee on Education by March 15, 2016 on the status of this
program. (S.B. 561)
Section: 10.13
Title: CAREER- AND COLLEGE-READY GRADUATES
Summary
Community Colleges Page F 24
Establishes the NC Works Career Coaches Program.
Subsection (a) amends Article 2 of G.S. 115D to authorize community colleges to enter into
agreements with local school boards to place college-employed career coaches in local public
schools and directs minimum roles and responsibilities for each entity in such agreements. The
revised statute authorizes the State Board of Community Colleges to establish a competitive grant
program to award matching funds to colleges for the purposes of employing career coaches and
specifies requirements for the review of applications and awarding of funds. The State Board of
Community Colleges is required to report annually to the Joint Legislative Education Oversight
Committee on October 1 regarding various metrics for the program.
Subsection (b) requires the State Board of Community Colleges to begin accepting applications
for available funds no later than December 15, 2015 and to select initial recipients no later than
February 22, 2016.
Subsection (c) limits the use of State funds appropriated for the program to salary and benefit
costs for NC Works Career Coaches. (S.B. 535)
Section: 10.14
Title: NC WORKS CAREER COACHES
Summary
Department: Community Colleges
2015 Session: HB 259
Modifies S.L. 2015-241, 2015 Appropriations Act, Section 10.11(b) to clarify that South Piedmont
Community College may earn FTE for student enrollments authorized in this section if such
enrollments are authorized in G.S. 115D-20(4)a.
Section: 3.4
Title: TECHNICAL CHANGE: YOUTH CAREER CONNECT PROGRAM
Summary
Community Colleges Page F 25
UNC System
Recommended Base Budget
Legislative Changes
$2,647,296,221 $2,647,304,656
GENERAL FUND
2015 Annotated Conference Committee Report
FY 15-16 FY 16-17
A. Reserve for Salaries and Benefits
$58,980
$27,212,889
50 R $58,980 R
Provides funds for a $750 one-time bonus for UNC employees. This NR
bonus shall not be considered part of an employee's annual salary or
base rate of pay for retirement purposes. In addition, funds are
appropriated for the changes to the Statewide teacher salary schedule
that affect NC School of Science and Math teachers within the UNC
System. (S.L. 2015-241, Sec. 9.1, 30.9, 30.10, and 30.18A)
Compensation Reserve
51 $1,458,018 R $1,458,018 R
Increases the State’s contribution for members of the Teachers’ and
State Employees’ Retirement System to fund increased retiree medical
premiums. Total General Fund appropriation across all sections in the
committee report is $11.0 million in FY 2015-16 and FY 2016-17. (S.L.
2015-241, Sec. 30.20)
State Retirement Contributions - TSERS Members
52 $988,900 R $988,900 R
Increases the State’s contribution for members of the Optional
Retirement Program to fund increased retiree medical premiums. (S.L.
2015-241, Sec. 30.20)
State Retirement Contributions - ORP Members
53 $3,097,323 R $3,097,323 R
Provides additional funding to continue health benefit coverage for
enrolled active employees supported by the General Fund for the 2015-
17 fiscal biennium. (S.L. 2015-241, Sec. 30.20)
State Health Plan
B. Technical and Formula Adjustments
54 $49,324,741 R $49,324,741 R
Fully funds the projected enrollment growth at the University of North
Carolina (UNC) System for FY 2015-16. Enrollment is expected to
increase by 3,345 Full Time Equivalent (FTE) students (1.7%) in FY
2015-16. Funding associated with projected FY 2016-17 FTE growth
is reserved in the "Reserves, Debt Service and Adjustments" section
of this report.
Enrollment Growth Adjustments (16011)
$470,912
$170,282
$714,678
$91,170
55 R
NR
R
Provides funding for new and renovated buildings coming online during NR
the FY 2015-17 biennium at Appalachian State University, East
Carolina University, North Carolina State University, and UNC-Wilmington.
Building Reserves (Multiple)
UNC System Page F 26
2015 Annotated Conference Committee Report FY 15-16 FY 16-17
C. Other Adjustments
$3,000,000 $3,000,000
56
Provides funds to Elizabeth City State University to stabilize NR NR
enrollment. The funds will be used to enhance technology related to
enrollment and recruitment of students, campus access and safety,
and human resource management.
Elizabeth City State University: Budget Stabilization Funds
(16086)
($18,033,112) ($43,593,567)
($3,000,000)
57 R
NR
R
Mandates a management flexibility reduction for the UNC operating
budget. The UNC Board of Governors shall not allocate this reduction
on an across-the-board basis to constituent institutions.
(S.L. 2015-268, Sec. 3.5, General Government Technical Corrections,
increased the amount of this reduction by $119,300 each year of the
2015-17 biennium; S.L. 2015-241, Sec. 11.24)
Management Flexibility Reduction (16011)
58 ($16,354,396) R
Caps the use of General Fund appropriations for campus
advancement activities at $1 million per campus. The following
campuses do not receive a reduction: Elizabeth City State University,
Fayetteville State University, University of North Carolina School of the
Arts, Western Carolina University, and North Carolina School of
Science and Math. (S.L. 2015-241, Sec. 11.6)
Advancement Activity Limitations (16011)
$8,000,000 $8,000,000
59
Provides funds to stabilize the Brody School of Medicine due to lower NR NR
revenues.
East Carolina University: Medical School Sustainability
Funds (16066)
60 $8,000,000 R $8,000,000 R
Provides funds to the Mountain Area Health Education Center for
surgery and family medicine residencies in the MAHEC service area.
(S.L. 2015-268, Sec. 3.10, General Government Technical
Corrections, amended this to include psychiatry residencies; S.L. 2015-
241, Sec. 11.26)
Mountain Area Health Education Center (16022)
61 $1,000,000 R $1,000,000 R
Provides funds to the University of North Carolina's School of Medicine
Kenan Medical Scholars program at Chapel Hill. This program
supports students with a specialization interest in primary care, general
surgery, and psychiatry who are interested in practicing medicine in a
rural area.
Medical Scholars Program (16021)
$2,000,000
62
Provides a challenge grant to Western Governors University for NR
development of a North Carolina campus contingent on the University
raising $5 million in private funds. (S.L. 2015-241, Sec. 11.20)
Western Governors University Challenge Grant (16015)
UNC System Page F 27
2015 Annotated Conference Committee Report FY 15-16 FY 16-17
63 ($1,073,700) R ($1,073,700) R
Eliminates funding for the Academic Summer Bridge Program.
(S.L. 2015-268, Sec. 3.5,General Government Technical Corrections,
adjusted the amount of this reduction; S.L. 2015-241, Sec. 11.24)
Academic Summer Bridge Program (16011)
64 ($737,230) R ($737,230) R
Eliminates General Fund support for The Hunt Institute. (S.L. 2015-
241, Sec. 11.21)
Hunt Institute (16020)
65 $1,000,000 R $1,000,000 R
Provides funds to support course development for UNC Core, a
program of online instruction for active duty service members and
veterans housed at the Friday Center for Continuing Education at UNC-Chapel
Hill.
UNC Core (16020)
$140,868 $140,868
66
Provides nonrecurring funds to establish a pilot program in the NR NR
Appalachian State University College of Education for the purposes of
recruiting and retaining community college students. The program
ends in FY 2017-18.
(H.B. 602; S.L. 2015-268, Sec. 3.6, General Government Technical
Corrections, adds undergraduate students as potential candidates for
this program; S.L. 2015-241, Sec. 11.25)
ASU: Recruit Community College Students Pilot (16080)
$2,000,000
67
Provides additional funds to the Union Square Campus, Inc., a non- NR
profit entity providing nursing education and training facilities with
North Carolina A&T, UNC Greensboro, Guilford Technical Community
College, and Cone Health. This project received $2 million in
nonrecurring funds in FY 2014-15.
Union Square Campus, Inc. (16011)
D. Financial Aid Adjustments
68 ($4,863,276) R ($4,863,276) R
Eliminates funding for the Yellow Ribbon Program which leveraged
federal matching funds to reduce tuition costs for certain non-resident
veterans. (S.L. 2015-116, Sec. 2)
Yellow Ribbon G.I. Education Enhancement Program (16011)
69 $9,300,762 R $9,300,762 R
Provides funds to offset a reduction in tuition receipts as a result of
granting certain non-resident veterans resident status for tuition
purposes. The federal Veterans Access, Choice, and Accountability
Act of 2014 requires public institutions of higher education to charge
certain non-resident veterans no more than the resident tuition and fee
rates or risk losing approval to receive federal educational benefits.
This item funds the expected costs of compliance with that Act for the
UNC System. (S.L. 2015-116)
Resident Tuition for Certain Non-Resident Veterans (16011)
UNC System Page F 28
2015 Annotated Conference Committee Report FY 15-16 FY 16-17
70 $1,000,000 R $2,000,000 R
Provides additional nonrecurring funds for the NC Need-Based
Scholarship for resident students attending private colleges. This
represents a 2% increase in funding for this program and provides
$88.4 million in scholarships once the full increase goes into effect for
FY 2016-17.
NC Need-Based Scholarships (16015)
71 $500,000 R $1,000,000 R
Creates a competitive grant program for principal development to be
administered by the State Education Assistance Authority. (H.B. 902;
S.L. 2015-241, Sec. 11.9)
Principal Preparation (16015)
72 $6,800,000 R $14,000,000 R
Increases funds for the Opportunity Scholarships program. The
program provides scholarship grants of up to $2,100 per semester for
eligible students to attend nonpublic schools. The total program
funding will be $17.6 million in FY 2015-16 and $24.8 million in FY
2016-17. Program funding in FY 2016-17 will be an increase of 129%
over FY 2014-15 levels.
Opportunity Scholarships (16015)
73 $200,000 R $200,000 R
Increases funding for the National Guard Tuition Assistance Program
by 10%, which provides financial aid to active members of the North
Carolina Army or Air National Guard. The total program funding after
the adjustment will be $2.1 million.
National Guard Tuition Assistance Program (16012)
74 $250,000 R $250,000 R
Increases funds for the Special Education Scholarships program by
6%. The program provides scholarship grants of up to $4,000 per
semester for eligible students. The total funding after this adjustment
will be $4.2 million. (H.B. 133; S.L. 2015-241, Sec. 11.11 and 11.18)
Special Education Scholarships (16015)
$58,742,318
$40,524,039
$25,771,233
$10,232,038
Total Legislative Changes
Total Position Changes
Revised Budget $2,746,562,578 $2,683,307,927
R
NR
R
NR
UNC System Page F 29
Special Provisions
Department: UNC System
2015 Session: HB 97
Directs the appropriation of the Escheat Fund income to need-based financial aid.
Subsection (a) allows the use of principal from the Escheat Fund should interest income not be
sufficient to meet appropriations for the FY 2015-17 biennium and directs uncommitted
scholarship funds revert to the Escheat Fund.
Subsection (b) requires the State Education Assistance Authority (SEAA) to make periodic
evaluations of the financial aid programs to ensure that the programs are being utilized to ensure
access to higher education. The SEAA is allowed to make recommendations for the redistribution
of funds to UNC and the President of the Community College System.
Subsection (c) amends section G.S. 116B-7(b) to place the Scholarship for Children of War
Veterans Scholarships under the newly created Department of Military and Veterans Affairs.
Subsection (d) makes technical corrections to G.S. 116B-6 to remove references to the Executive
Budget Act and reference the State Budget Act.
Section: 11.1
USE OF ESCHEAT FUNDS FOR STUDENT FINANCIAL PROGRAMS/TECHNICAL
CORRECTIONS
Title:
Summary
Amends G.S. 116-36.1(h) to require certain cash balances held in institutional trust funds at UNC
be secured.
Section: 11.2
AMEND REGULATION OF UNC INSTITUTIONAL TRUST FUNDS AND FUNDS OF UNC
HEALTH CARE SYSTEM
Title:
Summary
Provides the methods by which the management flexibility reduction is to be administered by the
UNC System.
Subsection (a) directs the UNC Board of Governors to allocate the management flexibility
reduction on a programmatic basis and not on an across-the-board basis.
Subsection (b) prohibits budget reductions to be taken to UNC Need-Based Financial Aid, North
Carolina Need-Based Financial Aid, Elizabeth City State University, Fayetteville State University,
NC School of Science and Mathematics, University of North Carolina at Asheville, University of
North Carolina School of the Arts, Future Farmers of America Program at North Carolina State
University.
Subsection (c) requires UNC report to OSBM and FRD by April 1, 2016 regarding the reductions
taken and to specify the number of positions eliminated by type and the number of low-performing,
redundant, and low-enrollment programs eliminated.
Section: 11.4
Title: UNC MANAGEMENT FLEXIBILITY REDUCTION
Summary
UNC System Page F 30
Directs UNC to spend $29 million from funds available on its activities at Kannapolis.
Section: 11.5
Title: UNC TO FUND NORTH CAROLINA RESEARCH CAMPUS
Summary
Limits the amount of General Funds that may be used for advancement activities at each
constituent institution to $1 million per year beginning in FY 2016-17.
Section: 11.6
Title: LIMIT USE OF STATE FUNDS FOR UNC ADVANCEMENT PROGRAMS
Summary
Creates the North Carolina Guaranteed Admissions Program (NCGAP).
Subsection (a) provides Legislative findings regarding low UNC six-year graduation rates and
costs to the State resulting from failure to graduate within six years.
Subsection (b) requires the UNC Board of Governors and the State Board of Community Colleges
to jointly study and evaluate a deferred admissions program to be entitled NCGAP. The study
shall identify how to implement NCGAP and evaluate the fiscal impact resulting from the program.
Subsection (c) requires UNC to identify students who qualify for admission, but are not as
competitive as their peers, to enroll in a community college to pursue an associates degree. The
appropriate institution shall hold an enrollment slot open for the student and offer the slot to the
student upon completion of an associates degree.
Subsection (d) requires the UNC Board of Governors and the State Board of Community Colleges
to report the results of subsection (b) to the Office of State Management and Budget, Fiscal
Research Division, and the Joint Legislative Education Oversight Committee by March 1, 2016.
Subsection (e) requires each constituent institution to implement NCGAP beginning in the 2016-
17 academic year to be applied for the 2017-18 academic year.
Subsection (f) requires the State Board of Community Colleges to consult with the UNC Board of
Governors to develop rules and provide counseling and assistance to ensure that students
enrolled in NCGAP have a smooth transition to a constituent institution.
Subsection (g) requires NCGAP to be implemented in the 2016-17 fiscal year and apply to all
admission policies beginning with the 2017-18 academic year.
Subsection (h) states that the program does not apply to the North Carolina School of Science
and Mathematics.
Section: 11.7
Title: NC GUARANTEED ADMISSION PROGRAM (NCGAP)
Summary
UNC System Page F 31
Creates the grant program for principal preparation under SEAA.
Subsection (a) creates a competitive grant program to be awarded to a nonprofit entity and
administered by SEAA to prepare principals throughout the State.
Subsection (b) provides definitions relevant to the program.
Subsection (c) authorizes SEAA to award a grant for administration of the program to an eligible
entity.
Subsection (d) requires SEAA to issue a request for proposal to contract with a nonprofit entity for
the administration of the program.
Subsection (e) requires SEAA report to the Joint Legislative Education Oversight Committee by
January 15, 2016 on the selection of the nonprofit required in subsection (d).
Subsection (f) requires that the nonprofit which is awarded the administration contract in
subsection (d) create a request for proposal to award grants for preparing principals based on
factors provided within the subsection.
Subsection (g) sets the priorities that the administering non-profit shall use in evaluating the
results of the request for proposals outlined in subsection (f).
Subsection (h) requires the grants described in subsection (f) to be awarded by June 1, 2016 and
requires each recipient to conduct a program to recruit and select school leaders to participate;
operate a school leader preparation program; and, collect data on program implementation and
outcomes.
Subsection (i) sets maximum grant awards for more than five years and allows the administering
nonprofit entity to make recommendations based on data collected regarding renewal of grants.
Subsection (j) requires grant recipients to provide an annual report to the administering nonprofit
entity.
Subsection (k) requires the State Board of Education to create a licensure process for successful
completion of the program outlined in subsection (h).
Subsection (l) requires that the administering nonprofit entity submit annual reports to the UNC
Board of Governors and the State Board of Education so that they may revise any licensure
requirements. The State Board of Education is required to report to the Joint Legislative
Education Oversight Committee regarding any changes to licensure by November 15, 2021.
Subsection (m) requires that $500,000 of funds be allocated to the administering nonprofit entity
with up to 5% allowed for SEAA to administer the program.
Subsection (n) requires that $500,000 be awarded to entities described in subsection (h)
beginning in FY 2016-17. (H.B. 902)
Section: 11.9
Title: TRANSFORMING PRINCIPAL PREPARATION
Summary
UNC System Page F 32
Amends G.S. 115C-112.6 to makes changes to the Special Education Scholarships for Children
with Disabilities program. The maximum scholarship amount is increased from $3,000 to $4,000
per semester; SEAA shall make tuition payments up-front rather than in arrears; and a technical
change is made to how SEAA transfers funds to DPI for student re-evaluations. (H.B. 133)
Section: 11.11
SPECIAL EDUCATION SCHOLARSHIP CHANGES Title: AND REEVALUATION FUNDS
Summary
Amends S.L. 2014-100 to give discretion to the UNC Board of Governors to award internships
and career-based opportunities to four or more Historically Black Colleges and Universities and
removes the requirement that Elizabeth City State University receive one of the internships. The
Board of Governors is to conduct a competitive process to award grants to four or more
institutions, of which at least two are private institutions. UNC is allowed to retain up to 5% of
funds to administer the program.
Section: 11.12
INTERNSHIPS AND CAREER-BASED OPPORTUNITIES FOR STUDENTS ATTENDING
HISTORICALLY BLACK COLLEGES AND UNIVERSITIES (HBCU)
Title:
Summary
Requires that the President of the University of North Carolina report quarterly on funds
appropriated to Elizabeth City State University for budget stabilization in the FY 2015-17 biennium
beginning January 1, 2016.
Section: 11.13
Title: ELIZABETH CITY STATE UNIVERSITY BUDGET STABILIZATION FUNDS REPORT
Summary
Amends G.S. 116-30.7 to change the biennial enrollment growth report due date from October 15
to December 15.
Section: 11.14
Title: UNC ENROLLMENT GROWTH REPORT
Summary
Requires that the Board of Governors adopt a policy for each constituent institution regarding
graduates of cooperative and innovative high schools to allow admission as a freshman or as a
transfer student for the 2016-17 academic year. UNC is required to report annually beginning
March 1, 2017 to the Joint Legislative Education Oversight Committee on the admission of such
students.
Section: 11.16
Title: EARLY COLLEGE GRADUATES/UNC ADMISSION POLICY
Summary
Amends S.L. 2013-364, Sec. 5(b), Appropriations Act of 2013, to allow the State Education
Assistance Authority to retain up to 4% of funds for the administration of the Special Education
Scholarship Program.
Section: 11.18
SEAA FUNDS FOR ADMINISTRATION OF SPECIAL EDUCATION SCHOLARSHIP GRANT
PROGRAM
Title:
Summary
UNC System Page F 33
Creates requirements for DHHS, DPI, UNC, and the State Board of Community Colleges
regarding students with disabilities.
Subsection (a) requires DHHS, DPI, UNC, and the State Board of Community Colleges and
relevant stakeholders to analyze and implement policies to improve post secondary opportunities
for students with disabilities. DHHS is required to report annually beginning on November 15,
2015 to the Joint Legislative Education Oversight Committee and the Joint Legislative Oversight
Committee on Health and Human Services on the status of this subsection.
Subsection (b) requires the State Education Assistance Authority (SEAA) to study strategies to
ensure the availability of financial aid for students with disabilities who are enrolled in certificate-based,
approved university programs. SEAA is required to report to the Joint Legislative
Education Oversight Committee and the Joint Legislative Oversight Committee on Health and
Human Services on March 15, 2016 on the results of the study.
Section: 11.19
Title: EDUCATION OPPORTUNITIES FOR STUDENTS WITH DISABILITIES
Summary
Establishes a $2 million challenge grant for Western Governors University in FY 2016-17
contingent upon the University raising $5 million in private funds.
Section: 11.20
Title: WESTERN GOVERNORS UNIVERSITY CHALLENGE GRANT
Summary
Prohibits the use of General Funds to support the Hunt Institute at the University of North Carolina
at Chapel Hill.
Section: 11.21
Title: HUNT INSTITUTE/NO GENERAL FUNDS
Summary
Authorizes the State Education Assistance Authority to be the central agency for determining
residency for tuition purposes for those applying for admission to, or financial aid at, a constituent
institution of UNC or a community college, or applying for State-funded financial aid to attend a
private institution beginning in December 31, 2016.
Section: 11.23
Title: CENTRALIZED PROCESS TO DETERMINE RESIDENCY FOR TUITION PURPOSES
Summary
UNC System Page F 34
Adjusts the amount of reductions to the Academic Summer Bridge Program and the management
flexibility reduction in the UNC System budget.
Subsection (a) decreases the amount of the reduction to the Academic Summer Bridge Program
by $119,300 in recurring funds for each year of the 2015-17 fiscal biennium.
Subsection (b) increases the amount of the management flexibility reduction by $119,300 in
recurring funds for each year of the 2015-17 fiscal biennium.
(See the Education Section of the Conference Committee Report on page F-27, Item 57 and page
F-28, Item 63.)
(S.L. 2015-268, Sec. 3.5, General Government Technical Corrections, adds this section to S.L.
2015-241.)
Section: 11.24
Title: ACADEMIC SUMMER BRIDGE PROGRAM/TECHNICAL CORRECTION
Summary
Adds undergraduate students to the type of students that may be recruited to participate in the
Appalachian State University College of Education pilot program.
(See the Education section of the Conference Committee Report on page F-11, Item 66.)
(S.L. 2014-268, Sec. 3.6, General Government Technical Corrections, adds this section to S.L.
2015-241.)
Section: 11.25
Title: APPALACHIAN STATE UNIVERSITY/RECRUIT COMMUNITY COLLEGE STUDENTS PILOT
Summary
Adds psychiatry residencies to the type of residencies that may be supported with additional funds
appropriated to the Mountain Area Health Education Center.
(See the Education section of the Conference Committee Report on page F-10, Item 60.)
(S.L. 2015-268, Sec. 3.10, General Government Technical Corrections, adds this section to S.L.
2015-241.)
Section: 11.26
Title: MOUNTAIN AREA HEALTH EDUCATION CENTER FUNDS
Summary
UNC System Page F 35
Department: UNC System
2015 Session: HB 259
Modifies S.L. 2015-241, 2015 Appropriations Act, to add a new Section 11.24 to adjust the
amount of reductions to the Academic Summer Bridge Program and the management flexibility
reduction in the UNC System budget.
Subsection (a) decreases the amount of the reduction to the Academic Summer Bridge Program
by $119,300 in recurring funds for each year of the 2015-17 fiscal biennium.
Subsection (b) increases the amount of the management flexibility reduction by $119,300 in
recurring funds for each year of the 2015-17 fiscal biennium.
(See the Education section of the Conference Committee Report on page F-10, Items 57 and 63.)
Section: 3.5
Title: BUDGET CHANGE: ACADEMIC SUMMER BRIDGE PROGRAM
Summary
Modifies S.L. 2015-241, 2015 Appropriations Act, to add a new Section 11.25 to add
undergraduate students to the type of students that may be recruited to participate in the
Appalachian State University College of Education pilot program.
(See the Education section of the Conference Committee Report on page F-11, Item 66.)
Section: 3.6
TECHNICAL CHANGE: APPALACHIAN STATE UNIVERSITY/RECRUIT COMMUNITY
COLLEGE STUDENTS PILOT
Title:
Summary
Amends G.S. 116-143.3A(a)(3), as enacted by S.L. 2015-116, In-State Tuition for Certain
Vets/Fed. Prog., to modify the definition of veterans eligible under the statute.
(See the Education section of the Conference Committee Report on page F-8, Item 49 and on
page F-11, Item 69.)
Section: 3.9
Title: TECHNICAL CHANGE: IN-STATE TUITION FOR CERTAIN VETS/FED. PROG.
Summary
Modifies S.L. 2015-241, 2015 Appropriations Act, to add a new Section 11.26 to add psychiatry
residencies to the type of residencies that may be supported with additional funds appropriated to
the Mountain Area Health Education Center.
(See the Education section of the Conference Committee Report on page F-10, Item 60.)
Section: 3.10
Title: TECHNICAL CHANGE: MOUNTAIN AREA HEALTH EDUCATION CENTER FUNDS
Summary
UNC System Page F 36
Health
and
Human Services
Section G
[This page intentionally blank.]
Health and Human Services
Recommended Base Budget
FY 15-16 FY 16-17
Legislative Changes
$89,605,783 $89,605,783
GENERAL FUND
2015 Annotated Conference Committee Report
( 1.0) Division of Central Management and Support
1 $594,352 R $594,352 R
Provides additional funding to continue health benefit coverage for
enrolled active employees supported by the General Fund for the 2015-
17 fiscal biennium. (S.L. 2015-241, Sec. 30.20)
State Health Plan
2 $340,897 R $340,897 R
Increases the State’s contribution for members of the Teachers’ and
State Employees’ Retirement System to fund increased retiree medical
premiums. Total General Fund appropriation across all sections in the
committee report is $11.0 million in FY 2015-16 and FY 2016-17. (S.L.
2015-241, Sec. 30.20)
State Retirement Contributions
$124,148
$5,221,738
3 R $124,148 R
Provides funds for a $750 one-time bonus for State employees. This NR
bonus shall not be considered part of an employee's annual salary or
base rate of pay for retirement purposes. In addition, funds are
appropriated for the changes to the Statewide teacher salary schedule
that affect State agency teachers within the Department. (S.L. 2015-
241, Sec. 30.9. Sec. 30.10, and Sec. 30.18A)
Compensation Reserve
4 ($2,000,000) R ($2,000,000) R
Eliminates recurring funding for the exchange in accordance with S.L.
2015-7.
Health Information Exchange (1910)
($1,481,673) ($1,481,673)
-57.00 -57.00
5 R R
Eliminates vacant positions within the Department of Health and
Human Services (DHHS).
Vacant Positions
6 ($75,000) R ($75,000) R
Transfers funds from the completive block grant for Accessible
Electronic Information for the Blind to the Division of Services for the
Blind. Combined with the Competitive Block Additional Funds item, the
total competitive block grant appropriation is increased by 11% to
$14,506,411. (S.L. 2015-241, Sec. 12A.8)
Competitive Block Grant Transfer (1910)
7 ($2,250,000) R ($2,250,000) R
Eliminates the NC Health Net program and allocates half of the
remaining funding to the Community Health Grants program. The
Community Health Grant program is increased by 42% to $7.5 million.
(S.L. 2015-241, Sec. 12A.9)
Health Net Grants (1372)
Health and Human Services Page G 1
2015 Annotated Conference Committee Report FY 15-16 FY 16-17
($3,200,000)
8
Reduces funding for contracts in central management. Over $3.1 NR
million remains in the budget for this purpose in central management.
(S.L. 2015-268, Sec. 4.1, General Government Technical Corrections,
amends this item to allow the reduction to be taken from any
departmental contracts, except contracts associated with the federal
Department of Justice settlement agreement for housing, support and
other services for people with mental illness.)
Miscellaneous Contractual Services (1120)
$360,000
$3,200,000
9 R $360,000 R
Provides funds to make the required changes to NC FAST associated NR
with allowing the Eastern Band of the Cherokee to administer their
Medicaid and Food and Nutrition Services Programs in accordance
with State law. (S.L. 2015-241, Sec. 12C.10)
NC FAST Required Changes (2411,1122)
10
Provides $9,871,059 in FY 2015-16 and $13,220,665 in FY 2016-17 in
additional receipts for ongoing maintenance and operations for the NC
FAST system. Three technology support analyst positions will be
created and funded with the additional receipts. Total funding for this
purpose is $60 million for FY 2015-16 and $47.5 million for FY 2016-
17. (S.L. 2015-241, Sec. 12A.7)
NC FAST- Operations and Maintenance (2411, 1122)
$5,803,000 $13,052,000
37.00 40.00
11
Provides funding for continued system development including using NR NR
prior-year earned revenue in the nonrecurring amount of $9.4 million in
FY 2015-16 and FY 2016-17, to bring the total funding for NC FAST,
along with federal funding, to $77.7 million for FY 2015-16 and $84.4
million for FY 2016-17. (S.L. 2015-241, Sec. 12A.7)
NC FAST (2411, 1122)
$400,000
$2,300,000
$400,000
$940,000
12 R
NR
R
Provides recurring funding for the operation and maintenance of NC NR
TRACKS. Additional nonrecurring funding is provided for the
development and implementation of 2 projects; ICD-10 which is used
to code medical procedures and the Business Process Automated
System for the Division of Health Service Regulation. Total funding for
this purpose is over $60 million for FY 2015-16 and FY 2016-17. (S.L.
2015-241, Sec.12A.6)
NCTRACKS (2413, 1122)
$8,000,000
$4,000,000
$8,000,000
$4,000,000
13 R
NR
R
Funding is provided to continue efforts towards the implementation of NR
a statewide HIE. (S.B. 713/H.B. 940; S.L. 2015-264, Sec. 86.5; S.L
2015-241, Sec. 12A.5)
Health Information Exchange (HIE) (1910)
$250,000
$750,000
14 R $250,000 R
Funds a contract for the development for new and enhanced health NR
data analytics capability and functionality for the Department. (S.L.
2015-241 Sec. 12A.17)
Government Data Analytics Center (1910)
Health and Human Services Page G 2
2015 Annotated Conference Committee Report FY 15-16 FY 16-17
15 $250,000 R $500,000 R
Establishes an Office within the Department of Health and Human
Services to evaluate effectiveness and efficiency of programs as
Directed by the Secretary, Governor and as requested by the General
Assembly. (S.L. 2015-241, Sec. 12A.3)
Office of Program Evaluation, Reporting and Accountability
(1910)
$350,000
16
Provides funds to implement 3 pilot projects focused on expanding the NR
role of paramedics to allow for community-based initiatives designed to
avoid nonemergency use of hospital emergency rooms. (H.B.
472/S.B. 381; S.L. 2015-241, Sec. 12A.12)
Community Paramedicine Pilot Project
17 $1,625,000 R $1,625,000 R
Increases funds for long-term, residential substance abuse services.
(S.L. 2015-241, Sec. 12A.8)
Competitive Block Grant Additional Funds (1910)
18 $450,000 R $450,000 R
Provides funds for a comprehensive financial audit of DHHS for FY
2014-15 and FY 2015-16. These funds shall be transferred to the
Office of the State Auditor to perform the financial audit.
Office of the State Auditor - Financial Audit
19 $7,848,341 R $15,597,746 R
Provides funds pursuant to the U.S. Department of Justice settlement
agreement to continue to develop and implement housing, support,
and other services for people with mental illness. This action
increases the settlement budget to $27.5 million in FY 2015-16 and to
$35.3 million in FY 2016-17.
Community Mental Health Initiatives (1910)
$14,436,065
$18,424,738
$22,435,470
$17,992,000
-20.00 -17.00
Total Legislative Changes
Total Position Changes
Revised Budget $122,466,586 $130,033,253
R
NR
R
NR
Health and Human Services Page G 3
Special Provisions
Division: ( 1.0) Division of Central Management and Support
2015 Session: HB 97
Amends G.S. 143B-216.52 - 216.55 by establishing an independent Office of Program Evaluation
Reporting and Accountability (OPERA) within the Department of Health and Human Services
(DHHS). Subsection (a) requires the Secretary to appoint a director for OPERA, who has a
minimum of 10 years of experience in program evaluation. This subsection specifies that the
director can only be removed from the position by the Secretary effective 30 days after written
notification, which includes a justification for the removal, to the Speaker of the House of
Representatives, the President Pro Tempore of the Senate, the State Auditor, and the Director of
Fiscal Research.
Subsection (a) also delineates the duties and powers of the new office which include (i) evaluating
DHHS programs using evidence-based methodologies; (ii) developing an inventory of all DHHS
programs and publishing the inventory to a departmental website; (iii) developing an inventory of
DHHS contracts; and (iv) responding promptly to information requests for program-level data and
information. Subsection (a) also authorizes OPERA to have access to any data or record
maintained by DHHS, interview DHHS employees, and conduct announced or unannounced
inspections of DHHS facilities.
Subsection (b) amends G.S. 126-5.(c1) by exempting the employees of OPERA from the NC
Human Resources Act.
Section: 12A.3
CREATION OF OFFICE OF PROGRAM EVALUATION REPORTING AND ACCOUNTABILITY
WITHIN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES
Title:
Summary
Directs the DHHS, in cooperation with the State Chief Information Officer, to coordinate State
Health Information Technology (HIT) policies and programs in a manner consistent with State and
federal HIT goals and to establish and direct an efficient and transparent HIT management
structure that is compatible with the Office of National Health Coordinator for Information
Technology. DHHS is to provide a comprehensive report on the status of these efforts to the Joint
Legislative Oversight Committee on Health and Human Services and the Fiscal Research
Division by January 15, 2016.
Section: 12A.4
Title: HEALTH INFORMATION TECHNOLOGY
Summary
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Directs DHHS Central Management and Support to transfer funds appropriated for the
implementation of a statewide Health Information Exchange (HIE) network to the State Chief
Information Officer (CIO). The State CIO and the Secretary of DHHS shall enter into a written
memorandum of understanding pursuant to which the State CIO will have sole authority to direct
expenditure of these funds until the NC Health Information Exchange Authority (Authority) is
established and the State CIO has appointed an Authority director and the NC HIE Advisory
Board is established with members appointed.
The Authority must establish, oversee, administer and provide ongoing support to a successor
HIE Network for the HIE Network established under Article 29A of Chapter 90 of the General
Statutes. The Authority must facilitate the termination or assignment to the Authority by February
29, 2016, of any contracts pertaining to the HIE Network established under Article 29A of Chapter
90 of the General Statutes.
Subsection (d) amends Chapter 90 of the General Statutes by adding a new Article 29B
Statewide Health Information Exchange Act. This Article describes the purpose, definitions, and
required participation for certain providers in the HIE Network. The Article requires the Authority
to provide to the Department and the State Health Plan for Teachers and State Employees
secure, real-time access to data and information disclosed through the HIE Network to improve
care coordination within and across health systems, increase care quality for beneficiates, enable
more effective population health management, allow more accurate measurement of care
services and outcomes, and facilitate health care cost containment. Any data submitted through
and stored by the HIE Network is and will remain the sole property of the State. The North
Carolina Health Information Exchange Authority and the North Carolina Health Information
Exchange Advisory Board are created. Penalties are established for any covered entity that
discloses protected health information in violation of Article 29B.
Subsection (f) repeals Article 29A of Chapter 90 of the General Statues. (S.B. 713/H.B. 940)
(S.L. 2015-264, Sec. 86.5, GSC Technical Corrections 2015, amends this section to require that
no later than 30 days after receipt of the transferred funds and notwithstanding any State laws
pertaining to contracting procedures, that State CIO shall negotiate and enter into or amend a
contract for services to accomplish the following: 1) transition from the HIE Network established
under Article 29A of Chapter 90 of the General Statues to the successor HIE Network; 2)
establishment, oversight, administration and ongoing support for the successor HIE Network; and
3) initial steps toward implementation of an HIE analytics data warehouse.
The State CIO shall: 1) ensure the provision of services necessary to accomplish the State's
transition to the successor HIE Network; 2) provide for the integration of health information
exchange clinical data, including the implementation of a health information exchange analytics
data warehouse; and 3) provide health information exchange stakeholders with access to
specific health information exchange analytics that allows stakeholders to leverage data for the
purpose of reducing healthcare costs and improving quality and access to care.
Adds new subsection (f1) clarifying that covered entities that are required to submit demographic
and clinical information through the successor HIE are not required to do so until the Authority
establishes a date for covered entities to begin submitting data.)
Section: 12A.5
FUNDS FOR OVERSIGHT AND ADMINISTRATION OF STATEWIDE HEALTH INFORMATION
EXCHANGE NETWORK
Title:
Summary
Health and Human Services Page G 5
Directs the use of nonrecurring funds appropriated for NCTracks be used to develop and
implement the 10th revision of International Statistical Classification of Diseases and Related
Health Problems (ICD-10) Project and the Business Process Automated System for the Division
of Health Service Regulation. Overrealized receipts are appropriated up to the amounts
necessary to implement this section. In order to utilize the overrealized receipts, DHHS must first
obtain prior approval from the Office of State Budget and Management and report to the Joint
legislative Oversight Committee on Health and Human Services, the Joint Legislative Oversight
Committee on Information Technology, and the Fiscal Research Division.
DHHS is directed to report beginning November 15, 2015, and monthly thereafter to the Joint
Legislative Oversight Committee on Health and Human Services and the Fiscal Research
Division on the status of the implementation of ICD-10. DHHS must continue to report by the 15th
of each month until 3 consecutive months have passed in which DHHS did not issue any hardship
advances and until the new Department of Information Technology can assume this function.
Section: 12A.6
FUNDS FOR NCTRACKS, THE REPLACEMENT MULTIPAYER MEDICAID MANAGEMENT
INFORMATION SYSTEM
Title:
Summary
Directs DHHS to use appropriated funds and the cash balance in Budget code 24410 Fund 2411
for the NC FAST project to match federal funds to expedite the development and implementation
of Child Care, Low Income Energy Assistance, Crisis Intervention Program, Child Services and
the NC FAST Federally-Facilitated Marketplace (FFM) interoperability components of the NC
FAST program. DHHS shall report any changes in approved federal funding or federal match
rates within 30 days after the change to the Joint Legislative Oversight Committee on Health and
Human Services and the Joint Legislative Oversight Committee on Information Technology and
the Fiscal Research Division.
Departmental receipts are appropriated to be used for the ongoing maintenance and operations
for the NC FAST system, including the creation of 3 full-time equivalent technology support
analyst positions.
Section: 12A.7
FUNDS FOR NORTH CAROLINA FAMILIES ACCESSING SERVICES THROUGH
TECHNOLOGY (NC FAST)
Title:
Summary
Subsections (a) and (b) set forth the requirements for funds appropriated for nonprofits and
requires DHHS to continue to administer a competitive process for nonprofit funding. Grants may
be awarded up to 2 years.
Subsection (c) requires that the Secretary allocate funds awarded to nonprofits no later than July
1 of each year. The DHHS Secretary is required to report to the Joint Legislative Oversight
Committee on Health and Human Services on the grant awards.
Subsection (d) requires each nonprofit organization to submit a report to the Division of Central
Management and Support no later than December 1 of each year.
Subsection (e) states that for FY 2015-17, Boys and Girls Clubs and the Triangle Residential
Options for Substance Abusers, Inc. will not have to compete for funding, and will receive specific
amounts.
Section: 12A.8
COMPETITIVE GRANTS/NONPROFIT Title: ORGANIZATIONS
Summary
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Transfers 50% of the funds from the Health Net Program to the Community Health Grant
Program. Agencies receiving Health Net funds at the end of FY 2014-15 are authorized to
continue to receive Community Health Grant funding at the same level for FY 2015-17. After FY
2016-17, agencies will be required to compete for the funding.
Section: 12A.9
COMMUNITY HEALTH GRANT Title: PROGRAM CHANGES
Summary
Allows DHHS to use funds to repay loans for medical, dental, and psychiatric providers practicing
in State facilities or in rural or medically underserved communities. Subsection (b) expands the
use of funds to include eligible providers in North Carolina who use telemedicine in rural and
underserved areas.
Section: 12A.10
Title: RURAL HEALTH LOAN REPAYMENT PROGRAM
Summary
Establishes a paramedicine pilot program.
Subsection (a) directs the use of $350,000 for a pilot program designed to expand the role of
paramedics in providing care that would avoid unnecessary use of hospital admissions and
emergency services.
Subsections (b) and (c) require the North Carolina Office of Emergency Medical Services to set
the education and qualification standards for the program, and DHHS to establish up to 3 sites to
implement the program.
Subsection (d) requires DHHS to submit a report to the Senate Appropriations Committee on
Health and Human Services, the House of Representative Appropriations Committee on Health
and Human Services, and the Fiscal Research Division by June 1, 2016.
Subsection (e) requires a final report to the Joint Legislative Oversight Committee on Health and
Human Services and the Fiscal Research Division by November 1, 2016. (H.B. 472)
Section: 12A.12
Title: FUNDS FOR COMMUNITY PARAMEDICINE PILOT PROGRAM
Summary
Directs the Joint Legislative Oversight Committee on Health and Human Services to study and
make recommendations on the design of a contracting specialist training and certification
program similar to the Certified Local Government Purchasing Officer Program.
Section: 12A.13
STUDY DESIGN AND IMPLEMENTATION OF CONTRACTING SPECIALIST AND
CERTIFICATION PROGRAM
Title:
Summary
Amends G.S. 131E-214.13 by changing reporting period dates and frequencies, and extending
the time to adopt rules to March 1, 2016 that establish and define no fewer than 10 quality
measures for licensed hospitals and licensed ambulatory surgical facilities. Subsection (b)
amends G.S. 131E-214.14 by changing the disclosure of charity care and policy costs by requiring
DHHS to post all of the information collected on its website in one location and in a searchable
format.
Section: 12A.15
Title: HEALTH CARE COST REDUCTION AND TRANSPARENCY ACT REVISIONS
Summary
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Renames the Office of Rural Health and Community Care to the Office of Rural Health.
Section: 12A.16
RENAMING OF OFFICE OF RURAL HEALTH Title: AND COMMUNITY CARE
Summary
Directs the DHHS to use funds appropriated for the development and implementation of a pilot
program for Medicaid claims analytics and population health management.
DHHS is directed to coordinate with the Government Data Analytics Center (GDAC) to develop
the pilot program.
DHHS and GDAC are directed to provide a progress report on the pilot program by January 15,
2016, to the Senate Appropriations Committee on Health and Human Services, the House of
Representatives Appropriations Committee on Health and Human Services and the Fiscal
Research Division. A final report is due by May 31, 2016 to the Joint Legislative Oversight
Committee on Health and Human Services, the Joint Legislative Oversight Committee on
Information Technology, and the Fiscal Research Division.
Section: 12A.17
Title: FUNDS FOR DEVELOPMENT OF HEALTH ANALYTICS PILOT PROGRAM
Summary
Sets forth the allocation of nearly $900 million in federal block grant funds for each year of the FY
2015-17 biennium in subsection (a).
Subsections (b) through (f) direct the use of all of the block grants.
Subsections (g) through (i) direct the use of the Temporary Assistance for Needy Families block
grant.
Subsections (j) through (q) direct the use of the Social Services Block Grant.
Subsections (r) and (s) direct the use of the Low-Income Home Energy Assistance Block Grant.
Subsections (t) and (u) direct the use of the Child Care and Development Fund Block Grant.
Subsection (v) directs the use of the Mental Health Services Block Grant
Subsection (w) directs the use of the Substance Abuse Prevention and Treatment Block Grant.
Subsections (x) through (bb) direct the use of the Maternal and Child Health Block Grant.
Subsection (z) requires that $1,575,000 be sued for evidence-based programs in counties with
the highest infant mortality rates.
(S.L. 2015-268, Sec.4.6, General Government Technical Corrections, amends (w) to correct the
name of the entity receiving Substance Abuse Prevention and Treatment Block Grant funds from
the Department of Administration, Division of Veterans Affairs, to the Department of Military and
Veterans Affairs.)
Section: 12I.1
Title: DHHS BLOCK GRANTS
Summary
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Division: ( 1.0) Division of Central Management and Support
2015 Session: HB 259
Amends S.L. 2015-241, 2015 Appropriations Act, to add a new Section 21A.18 that converts a
nonrecurring reduction for miscellaneous contracts in the Division of Central Management and
Support to a reduction in contracts department-wide. DHHS is prohibited from reducing any
contracts to develop and implement housing, support, and other services for people with mental
illness pursuant to the settlement agreement entered into between the U.S. Department of Justice
and the State.
Section: 4.1
Title: BUDGET CHANGE: MISCELLANEOUS CONTRACTUAL SERVICES
Summary
Amends S.L. 2015-241, Sec. 12I(w), 2105 Appropriations Act, to correct the name of the entity
receiving Substance Abuse Prevention and Treatment Block Grant funds from the Department of
Administration, Division of Veterans Affairs, to the Department of Military and