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2017 ANNOTATED CONFERENCE COMMITTEE REPORT ON THE BASE, EXPANSION AND CAPITAL BUDGETS Includes summaries of each section in S.L. 2017-57, Appropriations Act of 2017 (S.B. 257) and S.L. 2017-197, Budget Technical Corrections (H.B. 528); budget-related sections in S.L. 2017-212, Budget & Agency Technical Corrections (S.B. 582), and summaries of 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 2017-19 fiscal biennium as enacted in S.L. 2017-57, Appropriations Act of 2017 (S.B. 257) and amended by the S.L. 2017-197, Budget Technical Corrections (H.B. 528) and S.L. 2017-212, Budget & Agency Technical Corrections (S.B. 582). The Annotated Report includes all legislative adjustments to the Governor’s Recommended FY 2017-19 biennial base budget enacted during the 2017 Legislative Regular Session, including the legislative session that convened in October 2017. 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. The Fiscal Research Division is a nonpartisan, central staff agency that provides fiscal and policy information to the General Assembly. Table of Contents Staff Assignments 1 General Fund Availability Statement 3 Summary: General Fund Appropriations 4 Education Public Education F 1 Community Colleges F 54 UNC System F 69 Health and Human Services G 1 Agriculture and Natural and Economic Resources Agriculture and Consumer Services H 1 Labor H 19 Environment Quality H 27 Wildlife Resources Commission H 50 Commerce H 58 Commerce – State Aid H 83 Natural and Cultural Resources H 93 Natural and Cultural Resources – Roanoke Island Commission H 118 Justice and Public Safety Public Safety I 1 Justice I 27 Judicial – Indigent Defense I 38 Judicial I 46 General Government Treasurer J 1 Fire Rescue National Guard Pensions & LDD Benefits J 11 Military and Veterans Affairs J 18 Insurance J 28 State Board of Elections J 41 General Assembly J 49 Governor J 61 Governor Special Projects J 69 State Budget and Management J 76 State Budget and Management – Special Appropriations J 86 Revenue J 98 State Controller J 110 Administrative Hearings J 120 Administration J 129 Housing Finance Agency J 141 Lieutenant Governor J 150 Secretary of State J 158 Auditor J 166 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 9 Actual Tax Revenue Collected by Major Schedules AP 12 1 Staff Assignments Director Support Staff Digital Information Management Committees/Departments/Area Budget Development House and Senate Appropriations Committees Statewide Budget Issues Appropriations Bill Coordination Savings Reserve Account Budget Technical Corrections Bill Coordination Joint Commission on Governmental Operations Agriculture and Natural and Economic Resources Environmental Quality Agriculture and Consumer Services Commerce Commerce-State Aid Labor Natural and Cultural Resources Wildlife Resources Commission Economy and Taxation Revenue Estimates Finance Committees Revenue Laws Study Committee Economic Issues State Bond Proposals Education Public Instruction (K-12) Community Colleges Mark Trogdon Keshawna Roberts Chris Black Analysts Karen Hammonds-Blanks - House Brian Matteson - House Susan Jacobs - Senate Evan Rodewald - Senate Kristine Leggett, Team Leader William Childs Eric Moore Rodney Bizzell, Team Leader Barry Boardman Denise Harb Canada Brian Slivka Jonathan Tart Emma Turner Jennifer Hoffmann, Team Leader Lisa Fox University of North Carolina 2 Committee/Departments/Area Analysts General Government Administration Administrative Hearings Auditor 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 Justice and Public Safety Public Safety Judicial Judicial Indigent Defense Justice Statewide Salaries and Benefits Capital Information Technology Transportation Lisa Hollowell, Team Leader Cara Bridges Chris Hearley Denise Thomas, Team Leader Deborah Landry Steve Owen John Poteat, Team Leader Mark White David Vanderweide, Team Leader Timothy Dale Daniel Sater Amna Cameron, Team Leader Susan Tyler General Fund Availability Statement Fiscal Year Fiscal Year 2017-18 2018-19 1 Unappropriated Balance1 208,607,042 499,475,581 2 Disaster Recovery Appropriations (S.L. 2016-124) (200,928,370) 0 3 Transfer From Savings Reserve 100,928,370 0 4 Revised Unappropriated Balance 108,607,042 499,475,581 5 6 Over Collections FY 2016-172 494,132,774 0 7 Reversions FY 2016-172 356,639,853 0 8 Replenish Savings Reserve (S.L. 2016-124) (100,928,370) 0 9 Technical Adjustment to Unreserved Fund Balance3 1,000,000 10 Earmarkings of Year End Fund Balance: 11 Savings Reserve (263,000,000) 0 12 Repairs and Renovations (125,000,000) 0 13 Beginning Unreserved Fund Balance 471,451,299 499,475,581 14 15 Revenues Based on Existing Tax Structure 22,303,700,000 23,299,200,000 16 17 Non-tax Revenues 18 Investment Income 60,100,000 60,600,000 19 Judicial Fees 240,900,000 240,500,000 20 Disproportionate Share 164,700,000 149,600,000 21 Insurance 75,500,000 75,500,000 22 Master Settlement Agreement (MSA) 127,200,000 127,200,000 23 Other Non-Tax Revenues 180,600,000 182,900,000 24 Subtotal Non-tax Revenues 849,000,000 836,300,000 25 26 27 Total General Fund Availability 23,624,151,299 24,634,975,581 28 29 Adjustments to Availability: 2017 Session 30 Tax Law Changes (6,900,000) (521,800,000) 31 Transfer of Taxes from Short-Term Lease or Rental of Motor Vehicles to Highway Fund (10,000,000) (10,000,000) 32 Transfer to Savings Reserve (S.L. 2017-5) 0 (72,090,000) 33 Transfer Additional MSA funds to Golden L.E.A.F. (7,500,000) (7,500,000) 34 Transfer to Medicaid Transformation Reserve (75,000,000) 0 35 Transfer from Contingency and Emergency Fund 7,000,000 0 36 Transfer from Department of Insurance 3,655,405 4,026,728 37 Transfer from the Department of the State Treasurer (5,453,230) (5,434,773) 38 Subtotal Adjustments to Availability: 2017 Session (94,197,825) (612,798,045) 39 40 Revised General Fund Availability 23,529,953,474 24,022,177,536 41 42 Less General Fund Net Appropriations (23,030,477,893) (23,652,171,951) 43 44 Unappropriated Balance Remaining 499,475,581 370,005,585 Note: 1Technical adjustment to correct actual Unappropriated Balance; S.L. 2017-57, Appropriations Act of 2017, includes $208,607,416. General Fund Availability Statement 2June 30, 2017 actual over collections and reversions as reported by the Office of State Budget and Management and the Office of the State Controller; S.L. 2017-57, Appropriations Act of 2017, includes projected over collections of $580,600,000 and projected reversions of $271,000,000. 3Funds were transferred from the Statewide Carryforward Reserve to Unreserved Fund Balance. 3 Summary: General Fund Appropriations Revised Net Base Budget Recurring Nonrecurring Net FTE Appropriation 2017-18 Changes Changes Changes Changes 2017-18 Education Community Colleges 1,068,233,344 50,170,951 3,936,825 54,107,776 11.00 1,122,341,120 Public Education 8,739,220,986 289,316,731 17,865,905 307,182,636 (6.39) 9,046,403,622 University System 2,801,596,348 71,854,001 20,325,000 92,179,001 0.00 2,893,775,349 Total Education 12,609,050,678 411,341,683 42,127,730 453,469,413 4.61 13,062,520,091 Health and Human Services Central Management and Support 97,331,832 3,470,583 16,352,794 19,823,377 52.00 117,155,209 Aging and Adult Services 44,085,295 61,189 1,929,549 1,990,738 0.00 46,076,033 Blind and Deaf / Hard of Hearing Services 8,333,453 113,314 0 113,314 0.00 8,446,767 Child Development and Early Education 265,443,810 6,556,366 (3,571,675) 2,984,691 0.00 268,428,501 Health Service Regulation 17,446,527 967,100 360,180 1,327,280 7.00 18,773,807 Medical Assistance 3,684,796,055 52,381,899 (46,422,783) 5,959,116 0.00 3,690,755,171 Mental Health, Devel. Disabilities & Sub. Abuse Ser. 731,652,688 3,493,640 (38,878,009) (35,384,369) 15.00 696,268,319 NC Health Choice 43,446,936 1,497,347 (44,485,035) (42,987,688) 0.00 459,248 Health Benefits 9,671,582 63,469 0 63,469 0.00 9,735,051 Public Health 146,707,017 5,587,506 5,100,000 10,687,506 8.00 157,394,523 Social Services 186,595,053 5,754,553 8,623,519 14,378,072 0.00 200,973,125 Vocational Rehabilitation 38,402,154 431,634 0 431,634 0.00 38,833,788 Total Health and Human Services 5,273,912,402 80,378,600 (100,991,460) (20,612,860) 82.00 5,253,299,542 Justice and Public Safety Public Safety 1,935,266,736 59,488,820 7,944,490 67,433,310 (67.00) 2,002,700,046 Judicial Department 513,656,896 16,207,676 375,000 16,582,676 98.00 530,239,572 Judicial - Indigent Defense 120,156,248 1,147,842 0 1,147,842 0.00 121,304,090 Justice 54,793,859 (8,892,868) 1,810,303 (7,082,565) 5.00 47,711,294 Total Justice and Public Safety 2,623,873,739 67,951,470 10,129,793 78,081,263 36.00 2,701,955,002 Agriculture, Natural and Economic Resources Agriculture and Consumer Services 118,969,776 2,705,206 11,994,922 14,700,128 0.00 133,669,904 Commerce 134,414,931 (5,433,231) 11,768,032 6,334,801 (52.24) 140,749,732 Commerce - State Aid 15,955,810 200,000 4,145,000 4,345,000 0.00 20,300,810 Environmental Quality 77,854,912 (1,079,585) 1,395,000 315,415 (16.75) 78,170,327 Natural and Cultural Resources 166,273,456 6,264,180 12,975,713 19,239,893 12.00 185,513,349 Natural and Cultural Resources -- Roanoke Island 555,571 0 0 0 0.00 555,571 Labor 16,521,928 1,093,051 0 1,093,051 0.00 17,614,979 Wildlife Resources Commission 11,328,209 (261,222) 112,000 (149,222) 1.00 11,178,987 Total Agriculture, Natural and Economic Resources 541,874,593 3,488,399 42,390,667 45,879,066 (55.99) 587,753,659 Summary of General Fund Appropriations Fiscal Year 2017-18 2017 Legislative Session Legislative Changes 3 Revised Net Base Budget Recurring Nonrecurring Net FTE Appropriation 2017-18 Changes Changes Changes Changes 2017-18 Summary of General Fund Appropriations Fiscal Year 2017-18 2017 Legislative Session Legislative Changes General Government Administration 61,986,403 294,976 1,659,642 1,954,618 (10.29) 63,941,021 Auditor 13,379,738 248,470 200,000 448,470 0.00 13,828,208 General Assembly 63,476,017 1,755,684 743,912 2,499,596 0.00 65,975,613 Governor 5,794,114 (875,579) 456,442 (419,137) 0.00 5,374,977 Governor - Special Projects 2,001,118 (2,001,118) 0 (2,001,118) (0.65) 0 Housing Finance Agency 10,660,000 0 3,949,159 3,949,159 0.00 14,609,159 Insurance 39,790,684 8,952,528 95,000 9,047,528 88.24 48,838,212 Lieutenant Governor 703,302 60,406 30,000 90,406 1.00 793,708 Military and Veterans Affairs 8,199,025 692,333 2,566,000 3,258,333 0.00 11,457,358 Office of Administrative Hearings 5,354,257 557,147 51,076 608,223 6.29 5,962,480 Revenue 83,206,070 1,439,541 0 1,439,541 (5.00) 84,645,611 Secretary of State 12,751,423 352,888 0 352,888 0.00 13,104,311 State Board of Elections 6,621,306 2,977 0 2,977 (3.00) 6,624,283 State Budget and Management 7,960,470 220,076 0 220,076 0.00 8,180,546 State Budget and Management -- Special 2,000,000 0 10,763,881 10,763,881 0.00 12,763,881 State Controller 23,353,209 438,297 (2,917,638) (2,479,341) 0.00 20,873,868 Treasurer - Operations 10,266,826 (5,453,230) 0 (5,453,230) (3.00) 4,813,596 Fire Rescue National Guard Pensions & LDD Benefits 26,889,281 972,580 0 972,580 0.00 27,861,861 Total General Government 384,393,243 7,657,976 17,597,474 25,255,450 73.59 409,648,693 Department of Information Technology 51,279,650 (29,069) 250,000 220,931 (4.50) 51,500,581 Statewide Reserves and Debt Service Debt Service: Interest / Redemption 703,102,238 24,064,101 0 24,064,101 0.00 727,166,339 Federal Reimbursement 1,616,380 0 0 0 0.00 1,616,380 Subtotal Debt Service 704,718,618 24,064,101 0 24,064,101 0.00 728,782,719 4 Revised Net Base Budget Recurring Nonrecurring Net FTE Appropriation 2017-18 Changes Changes Changes Changes 2017-18 Summary of General Fund Appropriations Fiscal Year 2017-18 2017 Legislative Session Legislative Changes Statewide Reserves Contingency and Emergency Fund 5,000,000 (5,000,000) 0 (5,000,000) 0.00 0 Classification and Compensation System 0 3,900,000 0 3,900,000 0.00 3,900,000 Workers' Compensation Settlement Reserve 0 0 2,000,000 2,000,000 0.00 2,000,000 Salary Adjustment Fund 0 5,000,000 0 5,000,000 0.00 5,000,000 University System Enrollment Reserve 0 46,571,112 0 46,571,112 0.00 46,571,112 Pay Plan Reserve 0 0 9,688,494 9,688,494 0.00 9,688,494 Film and Entertainment Grant Fund 0 15,000,000 0 15,000,000 0.00 15,000,000 Pending Legislation (Supplemental Disaster Recovery Funds and Competitive Energy Solutions for N.C.) 500,000 0 99,650,000 99,650,000 0.00 100,150,000 Enterprise Resource Planning 0 0 3,000,000 3,000,000 0.00 3,000,000 Public Schools Average Daily Membership 0 0 0 0 0.00 0 NC Promise Tuition Grant 0 0 0 0 0.00 0 Subtotal Statewide Reserves 5,500,000 65,471,112 114,338,494 179,809,606 0.00 185,309,606 Total Reserves and Debt Service 710,218,618 89,535,213 114,338,494 203,873,707 0.00 914,092,325 Total General Fund for Operations 22,194,602,923 660,324,272 125,842,698 786,166,970 135.71 22,980,769,893 Capital Improvements Water Resources Development Projects 0 0 15,648,000 15,648,000 0.00 15,648,000 Capital Projects 0 0 34,060,000 34,060,000 0.00 34,060,000 Total Capital Improvements 0 0 49,708,000 49,708,000 0.00 49,708,000 Total General Fund Budget 22,194,602,923 660,324,272 175,550,698 835,874,970 135.71 23,030,477,893 5 Revised Net Base Budget Recurring Nonrecurring Net FTE Appropriation 2018-19 Changes Changes Changes Changes 2018-19 Education Community Colleges 1,068,233,344 67,474,501 6,050,000 73,524,501 11.00 1,141,757,845 Public Education 8,723,720,986 686,028,440 15,360,000 701,388,440 (6.39) 9,425,109,426 University System 2,851,602,607 113,018,172 3,154,253 116,172,425 0.00 2,967,775,032 Total Education 12,643,556,937 866,521,113 24,564,253 891,085,366 4.61 13,534,642,303 Health and Human Services Central Management and Support 97,331,832 10,507,204 14,930,369 25,437,573 74.00 122,769,405 Aging and Adult Services 44,085,295 94,261 969,549 1,063,810 0.00 45,149,105 Blind and Deaf / Hard of Hearing Services 8,333,453 173,628 0 173,628 0.00 8,507,081 Child Development and Early Education 265,443,810 13,183,202 (294,697) 12,888,505 0.00 278,332,315 Health Service Regulation 17,446,527 1,590,011 360,180 1,950,191 14.00 19,396,718 Medical Assistance 3,684,796,140 164,423,408 (47,538,336) 116,885,072 0.00 3,801,681,212 Mental Health, Devel. Disabilities & Sub. Abuse Ser. 731,652,688 14,933,724 (41,555,823) (26,622,099) 15.00 705,030,589 NC Health Choice 43,446,936 3,857,619 (46,908,146) (43,050,527) 0.00 396,409 Health Benefits 9,671,582 107,508 0 107,508 0.00 9,779,090 Public Health 146,713,455 6,171,763 2,100,000 8,271,763 8.00 154,985,218 Social Services 186,595,053 8,499,575 10,110,216 18,609,791 0.00 205,204,844 Vocational Rehabilitation 38,419,567 635,924 0 635,924 0.00 39,055,491 Total Health and Human Services 5,273,936,338 224,177,827 (107,826,688) 116,351,139 111.00 5,390,287,477 Justice and Public Safety Public Safety 1,935,343,754 80,358,047 4,890,236 85,248,283 (259.50) 2,020,592,037 Judicial Department 515,073,634 23,949,788 0 23,949,788 127.00 539,023,422 Judicial - Indigent Defense 120,508,461 1,771,898 0 1,771,898 0.00 122,280,359 Justice 54,796,127 (8,284,596) 0 (8,284,596) 5.00 46,511,531 Total Justice and Public Safety 2,625,721,976 97,795,137 4,890,236 102,685,373 (127.50) 2,728,407,349 Agriculture, Natural and Economic Resources Agriculture and Consumer Services 118,971,776 3,881,909 0 3,881,909 0.00 122,853,685 Commerce 134,414,931 (4,256,053) 0 (4,256,053) (52.24) 130,158,878 Commerce - State Aid 15,955,810 200,000 0 200,000 0.00 16,155,810 Environmental Quality 77,854,912 (842,198) 0 (842,198) (16.75) 77,012,714 Natural and Cultural Resources 166,277,458 7,949,966 250,000 8,199,966 12.00 174,477,424 Natural and Cultural Resources -- Roanoke Island 555,571 0 0 0 0.00 555,571 Labor 16,529,525 1,290,426 0 1,290,426 0.00 17,819,951 Wildlife Resources Commission 11,328,209 (484,668) 0 (484,668) 1.00 10,843,541 Total Agriculture, Natural and Economic Resources 541,888,192 7,739,382 250,000 7,989,382 (55.99) 549,877,574 Summary of General Fund Appropriations Fiscal Year 2018-19 2017 Legislative Session Legislative Changes 6 Revised Net Base Budget Recurring Nonrecurring Net FTE Appropriation 2018-19 Changes Changes Changes Changes 2018-19 Summary of General Fund Appropriations Fiscal Year 2018-19 2017 Legislative Session Legislative Changes General Government Administration 61,986,403 675,707 734,642 1,410,349 (10.29) 63,396,752 Auditor 13,379,738 400,793 0 400,793 0.00 13,780,531 General Assembly 63,476,017 2,496,990 0 2,496,990 0.00 65,973,007 Governor 5,794,114 (817,705) 0 (817,705) 0.00 4,976,409 Governor - Special Projects 2,001,118 (2,001,118) 0 (2,001,118) (0.65) 0 Housing Finance Agency 10,660,000 0 20,000,000 20,000,000 0.00 30,660,000 Insurance 39,792,849 8,521,851 0 8,521,851 88.24 48,314,700 Lieutenant Governor 703,302 68,195 0 68,195 1.00 771,497 Military and Veterans Affairs 8,199,025 761,718 0 761,718 0.00 8,960,743 Office of Administrative Hearings 5,354,257 656,430 0 656,430 6.29 6,010,687 Revenue 83,206,070 2,277,900 0 2,277,900 (5.00) 85,483,970 Secretary of State 12,812,071 502,872 0 502,872 0.00 13,314,943 State Board of Elections 6,621,306 65,308 0 65,308 (3.00) 6,686,614 State Budget and Management 7,960,470 294,774 0 294,774 0.00 8,255,244 State Budget and Management -- Special 2,000,000 0 0 0 0.00 2,000,000 State Controller 23,353,209 624,909 (734,642) (109,733) 0.00 23,243,476 Treasurer - Operations 10,266,826 (5,434,773) 0 (5,434,773) (3.00) 4,832,053 Fire Rescue National Guard Pensions & LDD Benefits 26,889,281 1,322,580 0 1,322,580 0.00 28,211,861 Total General Government 384,456,056 10,416,431 20,000,000 30,416,431 73.59 414,872,487 Department of Information Technology 51,279,650 367,195 0 367,195 (4.50) 51,646,845 Statewide Reserves and Debt Service Debt Service: Interest / Redemption 703,102,238 67,356,498 0 67,356,498 0.00 770,458,736 Federal Reimbursement 1,616,380 0 0 0 0.00 1,616,380 Subtotal Debt Service 704,718,618 67,356,498 0 67,356,498 0.00 772,075,116 7 Revised Net Base Budget Recurring Nonrecurring Net FTE Appropriation 2018-19 Changes Changes Changes Changes 2018-19 Summary of General Fund Appropriations Fiscal Year 2018-19 2017 Legislative Session Legislative Changes Statewide Reserves Contingency and Emergency Fund 5,000,000 (5,000,000) 0 (5,000,000) 0.00 0 Classification and Compensation System 0 7,800,000 0 7,800,000 0.00 7,800,000 Workers' Compensation Settlement Reserve 0 0 0 0 0.00 0 Salary Adjustment Fund 0 5,000,000 0 5,000,000 0.00 5,000,000 University System Enrollment Reserve 0 94,734,518 0 94,734,518 0.00 94,734,518 Pay Plan Reserve 0 0 0 0 0.00 0 Film and Entertainment Grant Fund 0 31,000,000 0 31,000,000 0.00 31,000,000 Pending Legislation 500,000 0 0 0 0.00 500,000 Enterprise Resource Planning 0 0 10,000,000 10,000,000 0.00 10,000,000 Public Schools Average Daily Membership 0 48,410,289 0 48,410,289 0.00 48,410,289 NC Promise Tuition Grant 0 11,000,000 0 11,000,000 0.00 11,000,000 Subtotal Statewide Reserves 5,500,000 192,944,807 10,000,000 202,944,807 0.00 208,444,807 Total Reserves and Debt Service 710,218,618 260,301,305 10,000,000 270,301,305 0.00 980,519,923 Total General Fund for Operations 22,231,057,767 1,467,318,390 (48,122,199) 1,419,196,191 1.21 23,650,253,958 Capital Improvements Water Resources Development Projects 0 0 0 0 0.00 0 Capital Projects 0 0 1,917,993 1,917,993 0.00 1,917,993 Total Capital Improvements 0 0 1,917,993 1,917,993 0.00 1,917,993 Total General Fund Budget 22,231,057,767 1,467,318,390 (46,204,206) 1,421,114,184 1.21 23,652,171,951 8 Education Section F FY 2017-18 FY 2018-19 Base Budget Requirements $13,023,846,639 $13,008,346,639 Receipts $4,284,625,653 $4,284,625,653 Net Appropriation $8,739,220,986 $8,723,720,986 Legislative Changes Requirements $377,769,868 $716,422,125 Receipts $70,587,232 $15,033,685 Net Appropriation $307,182,636 $701,388,440 Revised Budget Requirements $13,401,616,507 $13,724,768,764 Receipts $4,355,212,885 $4,299,659,338 Net Appropriation $9,046,403,622 $9,425,109,426 Base Budget 1,138.45 1,138.45 Legislative Changes (7.39) (7.39) Revised Budget 1,131.06 1,131.06 General Fund Budget General Fund FTE Public Education Budget Code 13510 Public Education Page F 1 Summary of General Fund Appropriations Fiscal Year 2017-18 2017 Legislative Session Public Education Budget Code 13510 Fund Code Fund Name Requirements Receipts Net Appropriation Requirements Receipts Net Appropriation Requirements Receipts Net Appropriation 1000 DPI - Executive and Administrative Functions 8,402,697 3,628,649 4,774,048 7,946,007 - 7,946,007 16,348,704 3,628,649 12,720,055 1021 DPI - Education Innovations - 21st Century Schools 1,273,180 375,498 897,682 - - - 1,273,180 375,498 897,682 1100 DPI - Assistance to Districts and Schools 27,587,380 22,216,974 5,370,406 (59,988) - (59,988) 27,527,392 22,216,974 5,310,418 1300 DPI - Financial and Business Services 3,752,551 836,474 2,916,077 18,888,958 - 18,888,958 22,641,509 836,474 21,805,035 1330 DPI - Student and School Support Services 17,071,036 12,688,176 4,382,860 (66,121) - (66,121) 17,004,915 12,688,176 4,316,739 1400 Office of Early Learning 77,343,346 69,704,768 7,638,578 (130,254) - (130,254) 77,213,092 69,704,768 7,508,324 1410 NC Center for the Advancement of Teaching 3,377,147 200 3,376,947 300,000 - 300,000 3,677,147 200 3,676,947 1450 K-3 Assessment 2,748,986 2,748,986 - - - - 2,748,986 2,748,986 - 1500 DPI - Technology Services 10,346,154 3,382,537 6,963,617 - - - 10,346,154 3,382,537 6,963,617 1600 DPI - Curriculum, Instruction, Accountability & Tech 60,253,921 48,133,468 12,120,453 254,794 - 254,794 60,508,715 48,133,468 12,375,247 1640 DPI - Educator Quality and Recruitment 20,864,862 19,441,994 1,422,868 336,204 - 336,204 21,201,066 19,441,994 1,759,072 1660 DPI - Special Populations 46,171,928 43,396,353 2,775,575 (98,998) - (98,998) 46,072,930 43,396,353 2,676,577 1800 K-12 Classroom Instruction -SPSF 7,377,797,048 615,835,919 6,761,961,129 32,268,930 18,664,579 13,604,351 7,410,065,978 634,500,498 6,775,565,480 1808 SPSF - Statewide System Ops and Maintenance 10,258,861 - 10,258,861 - - - 10,258,861 - 10,258,861 1810 SPSF - Local Education Agency - Administration 94,915,960 - 94,915,960 (7,000,000) - (7,000,000) 87,915,960 - 87,915,960 1811 Assistance to Districts and Schools - SPSF 2,063,612,732 2,063,612,732 - - - - 2,063,612,732 2,063,612,732 - 1821 SPSF - Ed Innovations - 21st Century Schools 33,285,254 - 33,285,254 (3,882,286) - (3,882,286) 29,402,968 - 29,402,968 1830 SPSF - Student and School Support Services 737,580,266 202,489,369 535,090,897 2,500,000 45,777,192 (43,277,192) 740,080,266 248,266,561 491,813,705 1840 SPSF - Teacher Quality and Recruitment 459,798,944 459,798,944 - - - - 459,798,944 459,798,944 - 1860 SPSF - Special Populations 1,696,820,130 694,936,512 1,001,883,618 3,014,247 - 3,014,247 1,699,834,377 694,936,512 1,004,897,865 1862 NC School for the Deaf 8,686,358 237,283 8,449,075 - - - 8,686,358 237,283 8,449,075 1863 Eastern NC School for the Deaf 8,100,571 242,584 7,857,987 1,000,000 - 1,000,000 9,100,571 242,584 8,857,987 1864 Governor Morehead School and Preschool 5,879,394 196,114 5,683,280 - - - 5,879,394 196,114 5,683,280 1870 SPSF - LEA - Supplemental Benefits 180,410,828 - 180,410,828 - - - 180,410,828 - 180,410,828 1900 Reserves and Transfers 58,056,139 20,722,119 37,334,020 3,345,000 6,145,461 (2,800,461) 61,401,139 26,867,580 34,533,559 1901 Pass-through Grants 9,450,966 - 9,450,966 2,165,000 - 2,165,000 11,615,966 - 11,615,966 Undesignated Items N/A Compensation Increase Reserve - - - 204,906,164 - 204,906,164 204,906,164 - 204,906,164 N/A State Retirement Contribution - - - 48,150,493 - 48,150,493 48,150,493 - 48,150,493 N/A State Health Plan Reserve - - - 32,107,889 - 32,107,889 32,107,889 - 32,107,889 N/A Enrollment Adjustment - - - 31,897,244 - 31,897,244 31,897,244 - 31,897,244 N/A Average Certified Personnel Salaries - - - 3,165,790 - 3,165,790 3,165,790 - 3,165,790 N/A Department of Public Instruction - - - (3,239,205) - (3,239,205) (3,239,205) - (3,239,205) Total $13,023,846,639 $4,284,625,653 $8,739,220,986 $377,769,868 $70,587,232 $307,182,636 $13,401,616,507 $4,355,212,885 $9,046,403,622 Base Budget Legislative Changes Revised Budget Public Education Page F 2 Summary of General Fund Appropriations Fiscal Year 2018-19 2017 Legislative Session Public Education Budget Code 13510 Fund Code Fund Name Requirements Receipts Net Appropriation Requirements Receipts Net Appropriation Requirements Receipts Net Appropriation 1000 DPI - Executive and Administrative Functions 8,402,697 3,628,649 4,774,048 2,146,007 - 2,146,007 10,548,704 3,628,649 6,920,055 1021 DPI - Education Innovations - 21st Century Schools 1,273,180 375,498 897,682 - - - 1,273,180 375,498 897,682 1100 DPI - Assistance to Districts and Schools 27,587,380 22,216,974 5,370,406 (59,988) - (59,988) 27,527,392 22,216,974 5,310,418 1300 DPI - Financial and Business Services 3,752,551 836,474 2,916,077 9,888,958 - 9,888,958 13,641,509 836,474 12,805,035 1330 DPI - Student and School Support Services 17,071,036 12,688,176 4,382,860 (66,121) - (66,121) 17,004,915 12,688,176 4,316,739 1400 Office of Early Learning 77,343,346 69,704,768 7,638,578 (130,254) - (130,254) 77,213,092 69,704,768 7,508,324 1410 NC Center for the Advancement of Teaching 3,377,147 200 3,376,947 300,000 - 300,000 3,677,147 200 3,676,947 1450 K-3 Assessment 2,748,986 2,748,986 - - - - 2,748,986 2,748,986 - 1500 DPI - Technology Services 10,346,154 3,382,537 6,963,617 - - - 10,346,154 3,382,537 6,963,617 1600 DPI - Curriculum, Instruction, Accountability & Tech 60,253,921 48,133,468 12,120,453 54,794 - 54,794 60,308,715 48,133,468 12,175,247 1640 DPI - Educator Quality and Recruitment 20,864,862 19,441,994 1,422,868 336,204 - 336,204 21,201,066 19,441,994 1,759,072 1660 DPI - Special Populations 46,171,928 43,396,353 2,775,575 (98,998) - (98,998) 46,072,930 43,396,353 2,676,577 1800 K-12 Classroom Instruction -SPSF 7,362,297,048 615,835,919 6,746,461,129 9,591,457 13,647,595 (4,056,138) 7,371,888,505 629,483,514 6,742,404,991 1808 SPSF - Statewide System Ops and Maintenance 10,258,861 - 10,258,861 - - - 10,258,861 - 10,258,861 1810 SPSF - Local Education Agency - Administration 94,915,960 - 94,915,960 (11,000,000) - (11,000,000) 83,915,960 - 83,915,960 1811 Assistance to Districts and Schools - SPSF 2,063,612,732 2,063,612,732 - - - - 2,063,612,732 2,063,612,732 - 1821 SPSF - Ed Innovations - 21st Century Schools 33,285,254 - 33,285,254 (4,445,948) - (4,445,948) 28,839,306 - 28,839,306 1830 SPSF - Student and School Support Services 737,580,266 202,489,369 535,090,897 - 1,386,090 (1,386,090) 737,580,266 203,875,459 533,704,807 1840 SPSF - Teacher Quality and Recruitment 459,798,944 459,798,944 - - - - 459,798,944 459,798,944 - 1860 SPSF - Special Populations 1,696,820,130 694,936,512 1,001,883,618 3,014,247 - 3,014,247 1,699,834,377 694,936,512 1,004,897,865 1862 NC School for the Deaf 8,686,358 237,283 8,449,075 - - - 8,686,358 237,283 8,449,075 1863 Eastern NC School for the Deaf 8,100,571 242,584 7,857,987 - - - 8,100,571 242,584 7,857,987 1864 Governor Morehead School and Preschool 5,879,394 196,114 5,683,280 - - - 5,879,394 196,114 5,683,280 1870 SPSF - LEA - Supplemental Benefits 180,410,828 - 180,410,828 - - - 180,410,828 - 180,410,828 1900 Reserves and Transfers 58,056,139 20,722,119 37,334,020 2,565,000 - 2,565,000 60,621,139 20,722,119 39,899,020 1901 Pass-through Grants 9,450,966 - 9,450,966 - - - 9,450,966 - 9,450,966 Undesignated Items N/A Compensation Increase Reserve - - - 481,434,198 - 481,434,198 481,434,198 - 481,434,198 N/A State Retirement Contribution - - - 126,996,925 - 126,996,925 126,996,925 - 126,996,925 N/A State Health Plan Reserve - - - 68,038,146 - 68,038,146 68,038,146 - 68,038,146 N/A Enrollment Adjustment - - - 31,897,244 - 31,897,244 31,897,244 - 31,897,244 N/A Average Certified Personnel Salaries - - - 3,258,025 - 3,258,025 3,258,025 - 3,258,025 N/A Department of Public Instruction - - - (7,297,771) - (7,297,771) (7,297,771) - (7,297,771) Total $13,008,346,639 $4,284,625,653 $8,723,720,986 $716,422,125 $15,033,685 $701,388,440 $13,724,768,764 $4,299,659,338 $9,425,109,426 Base Budget Legislative Changes Revised Budget Public Education Page F 3 Summary of General Fund Total Requirements FTE Fiscal Year 2017-18 2017 Legislative Session Base Revised Fund Code Fund Name Total Requirements Net Appropriation Receipts Total Requirements 1000 DPI - Executive and Administrative Functions 51.99 (3.35) (1.00) 47.64 1021 DPI - Education Innovations - 21st Century Schools 26.00 - - 26.00 1100 DPI - Assistance to Districts and Schools 70.59 (0.40) - 70.19 1300 DPI - Financial and Business Services 39.00 (1.00) - 38.00 1330 DPI - Student and School Support Services 103.73 (0.89) - 102.84 1400 Office of Early Learning 83.75 (0.75) - 83.00 1410 NC Center for the Advancement of Teaching 40.75 - - 40.75 1450 K-3 Assessment 12.00 - - 12.00 1500 DPI - Technology Services 82.00 - - 82.00 1600 DPI - Curriculum, Instruction, Accountability & Tech 166.30 - - 166.30 1640 DPI - Educator Quality and Recruitment 44.89 1.00 - 45.89 1660 DPI - Special Populations 73.70 (1.00) - 72.70 1800 K-12 Classroom Instruction -SPSF - - - - 1808 SPSF - Statewide System Ops and Maintenance - - - - 1810 SPSF - Local Education Agency - Administration - - - - 1811 Assistance to Districts and Schools - SPSF - - - - 1821 SPSF - Ed Innovations - 21st Century Schools - - - - 1830 SPSF - Student and School Support Services - - - - 1840 SPSF - Teacher Quality and Recruitment - - - - 1860 SPSF - Special Populations - - - - 1862 NC School for the Deaf 137.33 - - 137.33 1863 Eastern NC School for the Deaf 125.33 - - 125.33 1864 Governor Morehead School and Preschool 81.08 - - 81.08 1870 SPSF - LEA - Supplemental Benefits - - - - 1900 Reserves and Transfers - - - - 1901 Pass-through Grants - - - - Total FTE 1,138.45 (6.39) (1.00) 1,131.06 Public Education Budget Code 13510 Legislative Changes Public Education Page F 4 Summary of General Fund Total Requirements FTE Fiscal Year 2018-19 2017 Legislative Session Base Revised Fund Code Fund Name Total Requirements Net Appropriation Receipts Total Requirements 1000 DPI - Executive and Administrative Functions 51.99 (3.35) (1.00) 47.64 1021 DPI - Education Innovations - 21st Century Schools 26.00 - - 26.00 1100 DPI - Assistance to Districts and Schools 70.59 (0.40) - 70.19 1300 DPI - Financial and Business Services 39.00 (1.00) - 38.00 1330 DPI - Student and School Support Services 103.73 (0.89) - 102.84 1400 Office of Early Learning 83.75 (0.75) - 83.00 1410 NC Center for the Advancement of Teaching 40.75 - - 40.75 1450 K-3 Assessment 12.00 - - 12.00 1500 DPI - Technology Services 82.00 - - 82.00 1600 DPI - Curriculum, Instruction, Accountability & Tech 166.30 - - 166.30 1640 DPI - Educator Quality and Recruitment 44.89 1.00 - 45.89 1660 DPI - Special Populations 73.70 (1.00) - 72.70 1800 K-12 Classroom Instruction -SPSF - - - - 1808 SPSF - Statewide System Ops and Maintenance - - - - 1810 SPSF - Local Education Agency - Administration - - - - 1811 Assistance to Districts and Schools - SPSF - - - - 1821 SPSF - Ed Innovations - 21st Century Schools - - - - 1830 SPSF - Student and School Support Services - - - - 1840 SPSF - Teacher Quality and Recruitment - - - - 1860 SPSF - Special Populations - - - - 1862 NC School for the Deaf 137.33 - - 137.33 1863 Eastern NC School for the Deaf 125.33 - - 125.33 1864 Governor Morehead School and Preschool 81.08 - - 81.08 1870 SPSF - LEA - Supplemental Benefits - - - - 1900 Reserves and Transfers - - - - 1901 Pass-through Grants - - - - Total FTE 1,138.45 (6.39) (1.00) 1,131.06 Public Education Budget Code 13510 Legislative Changes Public Education Page F 5 Public Education Recommended Base Budget Legislative Changes $8,739,220,986 $8,723,720,986 GENERAL FUND 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 A. Reserve for Salaries and Benefits 1 Compensation Increase Reserve - Teachers $101,732,591 R $372,639,349 R Provides funding for salary increases provided to educators paid in accordance with the teacher salary schedule. Total revised net appropriations for State and local employee salaries are $12 billion in FY 2017-18 and $12.2 billion in FY 2018-19. (S.L. 2017-57, Secs. 8.1 and 35.17) Fund Code: N/A $5,000,000 NR $5,000,000 NR 2 Veteran Teacher Bonuses Provides funding for a $385 bonus for teachers with 25 or more years of experience in each year of the biennium. The revised net appropriation for the veteran teacher bonuses is $5.0 million in each year of the biennium. (S.L. 2017-57, Sec. 8.8A) Fund Code: N/A 3 Teacher Bonuses $14,900,000 R Provides funds to make 3 Bonus Programs recurring. These bonus programs include the Third Grade Read to Achieve Teacher Bonuses, Advanced Placement/International Baccalaureate/Cambridge AICE Teacher Bonuses, and the Career and Technical Education Teacher Bonuses. The revised net appropriation for these three bonuses is $15.5 million in FY 2017-18 and $14.9 million in FY 2018-19. (S.L. 2017-57, Secs. 8.8B and 8.8C) Fund Code: 1800 Public Education Page F 6 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 $25,341,188 NR 4 Math and Reading Performance Bonus Program Provides funding to support a math performance bonus program for teachers in grades 4 through 8 and a reading bonus program for teachers in grades 4 and 5. The programs will provide $2,150 bonuses to the top 25% of teachers Statewide and $2,150 bonuses to the top 25% of teachers within each Local Education Agency (LEA) based on Education Value-Added Assessment System (EVAAS) scores. The revised net appropriation for this program is $25.3 million in FY 2017-18 only. (S.L. 2017-57, Secs. 8.8D and 8.8E) Fund Code: 1800 5 Salary Supplements for Highly Qualified Teacher Graduates $700,000 R $700,000 R Provides funds for highly qualified graduates of an approved educator preparation program to receive salary supplements based on the teacher “A” salary schedule. These graduates receive a salary supplement if they are teaching in a low performing school, are licensed in a special education or a Science, Technology, Engineering, and Mathematics (STEM) field, or are considered a highly qualified graduate. The revised net appropriation for this program is $700,000 in each year of the biennium. (S.L. 2017-57, Sec. 8.2) Fund Code: 1800 6 Compensation Increase Reserve - School Based Administrators $35,364,775 R $40,587,664 R Provides funding for salary increases provided to principals and assistant principals. Total revised net appropriations for State and local employee salaries are $12 billion in FY 2017-18 and $12.2 billion in FY 2018-19. (S.L. 2017-57, Secs. 8.3, 8.4, and 8.5) Fund Code: N/A 7 Compensation Increase Reserve - LEA Employees $61,537,448 R $61,537,448 R Provides funding for an across-the-board salary increase of $1,000. Total revised net appropriations for State and local employee salaries are $12 billion in FY 2017-18 and $12.2 billion in FY 2018-19. (S.L. 2017-57, Secs. 8.6 and 8.7) Fund Code: N/A Public Education Page F 7 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 8 Compensation Increase Reserve - DPI $997,153 R $997,153 R Provides funding for an across-the-board salary increase of $1,000. Total revised net appropriations for State and local employee salaries are $12 billion in FY 2017-18 and $12.2 billion in FY 2018-19. (S.L. 2017-57, Secs. 35.1, 35.2, 35.11, and 35.12) Fund Code: N/A 9 Compensation Increase Reserve - State Agency $274,197 R $672,584 R Teachers/School Based Administrators Provides funding for salary increases provided to educators paid in accordance with the teacher salary schedule. Total revised net appropriations for State and local employee salaries are $12 billion in FY 2017-18 and $12.2 billion in FY 2018-19. (S.L. 2017-57, Secs. 8.1, 35.10, and 35.17) Fund Code: N/A 10 State Retirement Contributions - School District Personnel $47,790,931 R $126,048,580 R Increases the State’s contribution for members of the Teachers’ and State Employees’ Retirement System (TSERS) supported by the General Fund for the 2017-19 fiscal biennium to fund the actuarially determined contribution and increased retiree medical premiums, provide a 1.0% cost-of-living adjustment to retirees, and provide additional benefits to probation/parole officers. The revised net General Fund appropriation for TSERS statewide is $1.7 billion in FY 2017-18 and $1.9 billion in FY 2018-19, an increase of $81.3 million for FY 2017-18 and $214.3 million for FY 2018-19. (S.L. 2017-57, Secs. 35.19, 35.19A, and 35.19B) Fund Code: N/A 11 State Retirement Contributions - DPI $359,562 R $948,345 R Increases the State’s contribution for members of the Teachers’ and State Employees’ Retirement System (TSERS) supported by the General Fund for the 2017-19 fiscal biennium to fund the actuarially determined contribution and increased retiree medical premiums, provide a 1.0% cost-of-living adjustment to retirees, and provide additional benefits to probation/parole officers. The revised net General Fund appropriation for TSERS statewide is $1.7 billion in FY 2017-18 and $1.9 billion in FY 2018-19, an increase of $81.3 million for FY 2017-18 and $214.3 million for FY 2018-19. (S.L. 2017-57, Secs. 35.19, 35.19A, and 35.19B) Fund Code: N/A Public Education Page F 8 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 12 State Health Plan - School District Personnel $31,939,125 R $67,680,526 R Provides additional funding to continue health benefit coverage for enrolled active employees supported by the General Fund for the 2017-19 fiscal biennium. The revised net General Fund appropriation for enrolled active employees statewide is $1.5 billion in FY 2017-18 and FY 2018-19, an increase of $52.2 million for FY 2017-18 and $110.7 million for FY 2018-19. (S.L. 2017-57, Sec. 35.19) Fund Code: N/A 13 State Health Plan - DPI $168,764 R $357,620 R Provides additional funding to continue health benefit coverage for enrolled active employees supported by the General Fund for the 2017-19 fiscal biennium. The revised net General Fund appropriation for enrolled active employees statewide is $1.5 billion in FY 2017-18 and FY 2018-19, an increase of $52.2 million for FY 2017-18 and $110.7 million for FY 2018-19. (S.L. 2017-57, Sec. 35.19) Fund Code: N/A B. Technical Adjustments 14 Average Daily Membership (ADM) $31,897,244 R $31,897,244 R Revises allotted FY 2017-18 ADM to reflect 9,120 more students than are included in the FY 2016-17 allotted ADM. This revision includes adjustments to multiple position, dollar, and categorical allotments. Funding associated with projected FY 2018-19 ADM growth is reserved in the "Reserves, Debt Service, and Adjustments" section of this report. (S.B. 430/H.B. 537) Fund Code: N/A 15 Average Certified Personnel Salaries $3,165,790 R $3,258,025 R Revises funding for certified personnel salaries based on actual salary data from December 2016. The adjustment does not increase any salary paid to certified personnel, nor does it increase the number of guaranteed State-funded teachers, administrators, or instructional support personnel. (S.B. 430/H.B. 537) Fund Code: N/A Public Education Page F 9 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 16 Children with Disabilities Headcount ($3,305,661) R ($3,305,661) R Adjusts funding 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, 2017 headcount and does not modify per-student funding. Fund Code: 1860 17 Noninstructional Support ($11,622,037) R ($13,647,595) R Budgets additional Lottery receipts for the noninstructional support personnel allotment. Total requirements for this allotment after the ADM adjustment are $383,888,897 in FY 2017-18 and $385,914,555 in FY 2018-19. This allotment will now be fully receipt supported. The revised net appropriation for noninstructional support personnel is $0. (S.L. 2017-57, Sec. 5.3) Fund Code: 1800 ($1,386,090) ($41,891,102) R ($1,386,090) R NR 18 Transportation Adjusts the budget to reflect additional Lottery receipts for the transportation allotment. Total requirements for this allotment remain the same at $459,268,071 in each year of the biennium. The revised net appropriation for the transportation allotment is $416 million in FY 2017-18 and $457.9 million in FY 2018-19. (S.L. 2017-57, Sec. 5.3) Fund Code: 1830 C. State Public School Fund $11,285,000 NR 19 Textbooks and Digital Materials Fund Code: 1800 Provides an additional $11,885,160 in nonrecurring funds for the textbooks and digital materials allotment. Increased funding for this item includes receipts from the cash balances transferred from two special funds, the Literary Fund ($259,833) and the Education Fund ($340,327). School districts may utilize funds from this allotment to purchase digital content made available by the Department of Public Instruction (DPI) through its Home Base system. The revised net appropriation for textbooks and digital materials is $66.8 million in FY 2017-18 and $55.5 million in FY 2018-19. (S.B. 430/H.B. 537, H.B. 495; S.L. 2017-57, Sec. 7.13) (This item also appears in the Public Education special funds in the Education section. See page F 25.) Public Education Page F 10 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 20 Children with Disabilities $6,319,908 R $6,319,908 R Provides funds to support an increase in the funding cap for the children with disabilities allotment from 12.5% to 12.75%. A school district will receive funds for each child identified with disabilities, up to 12.75% of the school district's ADM. The revised net appropriation for school aged children with disabilities is $744 million in FY 2017-18 and $751 million in FY 2018-19. (S.L. 2017-57, Sec. 7.1) Fund Code: 1860 21 Digital Learning Plan $2,420,000 R $2,420,000 R Provides additional funding for the digital learning plan (DLP). Funds will support DLP management, school and district leadership development, teacher professional development, and cybersecurity and risk management services. The revised net appropriation for the digital learning plan is $6.4 million in each year of the biennium. (S.B. 430/H.B. 537; S.L. 2017-57, Secs. 7.23A and 7.23K) Fund Code: 1800 $2,000,000 NR 22 Stabilization Funds for Wayne County Schools: Seymour Johnson Airforce Base Provides $2.0 million in stabilization funds to support the operation of public schools in Wayne County, the location of Seymour Johnson Air Force Base. The revised net appropriation for stabilization funds for Wayne County Public Schools is $2.0 million in FY 2017-18 only. Fund Code: 1800 23 Geographically Isolated Schools $506,064 R $506,064 R Increases funding for geographically isolated schools to include schools that newly qualify for funding. A school designated as geographically isolated receives one additional classroom teacher position per grade in the isolated school. A school is considered geographically isolated if consolidation is not feasible and it is either located in a school district in which the ADM is less than 1.5 per square mile or it is located in a school district in a county containing more than 150,000 acres of National Forest owned by the federal government and managed by the United States Forest Service. The revised net appropriation for geographically isolated schools is $829,209 in each year of the biennium. (S.B. 15/H.B. 23; S.L. 2017-57, Sec. 7.19) Fund Code: 1800 Public Education Page F 11 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 24 Transportation Grant Program Provides funds to establish a Charter School Transportation Grant Pilot Program for one year. This program is supported by a $2.5 million transfer from the North Carolina Department of Transportation in FY 2017-18. The total requirements for the program are $2.5 million in FY 2017-18 only. (S.B. 662; H.B. 644; S.L. 2017-57, Sec. 7.35) (This item also appears in the Highway Fund in the Transportation section. See page K 31, item 49.) Fund Code: 1830 $1,000,000 NR 25 Eastern NC School for the Deaf Provides nonrecurring funding to the Eastern NC School for the Deaf for one-time major vehicle and equipment purchases, an increase for maintenance and repairs including information technology updates, and an upgrade to the maintenance shop including a mechanic pit. The revised net appropriation to the Eastern NC School for the Deaf is $8.9 million in FY 2017-18 and $7.9 million in FY 2018-19. (S.B. 430/H.B. 537) Fund Code: 1863 26 Central Office Allotment ($7,000,000) R ($11,000,000) R Reduces State funding for the central office administration allotment by 7.4% in FY 2017-18 and 11.6% in FY 2018-19. The revised net appropriation for the central office administration allotment is $87.9 million in FY 2017-18 and $83.9 million in FY 2018-19. Fund Code: 1810 27 Analysis of Student Work ($325,000) R ($325,000) R Eliminates funding associated with the Analysis of Student Work (ASW) process. The process is used as the student growth measure for teachers of courses and subjects such as Arts Education, Healthful Living, World Languages, and International Baccalaureate and Advanced Placement courses. The revised net appropriation for testing, where funding for the ASW process is budgeted, is $8.8 million in each year of the biennium. (S.L. 2017-57, Sec. 7.23E) Fund Code: 1800 Public Education Page F 12 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 ($2,246,612) $563,662 R ($2,246,612) R NR 28 Cooperative Innovative High Schools Reduces funding for Cooperative Innovative High Schools (CIHS), including virtual CIHSs, due to a revised allocation methodology that provides funds to all CIHSs approved for operation in FY 2017-18. The revised net appropriation for these schools is $27.5 million in 2017-18 and $27.0 million in 2018-19. (S.L. 2017-57, Sec. 7.22) Fund Code: 1821 ($6,442,382) NR 29 State Public School Fund Adjusts the budget to reflect additional receipts from the Civil Penalty and Forfeiture Fund to the State Public School Fund (SPSF) and reduces the net General Fund appropriation by the same amount. Total requirements for the SPSF are not affected by this shift. The revised net appropriation for the SPSF in fund code 1800 is $6.8 billion in each year of the biennium. (S.L. 2017-57, Sec. 5.4) Fund Code: 1800 ($2,000,000) NR 30 Low Wealth Aligns budgeted funds to planned expenditures for the Low Wealth allotment on a one time basis. School districts eligible for funding will continue to receive a dollar allotment determined by the Low Wealth funding formula. The revised net appropriation for this allotment is $220.4 million in FY 2017-19 and $222.4 in FY 2018-19. Fund Code: 1800 31 Benefits Adjustment ($5,000,000) R ($5,000,000) R Adjusts the Social Security benefit line-item budgeted in the State Public School Fund to more closely align budgeted funds to actual expenditures. The revised net appropriation for Social Security benefits in fund code 1800 is $312.1 million in each year of the biennium. Fund Code: 1800 32 Small Specialty High Schools ($2,199,336) R ($2,199,336) R Aligns budgeted funds to actual expenditures for small specialty high schools. The revised net appropriation for these schools is $1.8 million in each year of the biennium and fully funds all participating high schools. Fund Code: 1821 Public Education Page F 13 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 33 Small County Supplemental Funding ($3,618,482) R ($3,969,607) R Aligns budgeted funds to actual expenditures for the small county supplemental allotment. School districts eligible for funding will continue to receive a dollar allotment according to the schedule created in S.L. 2014-100. The revised net appropriation for this allotment is $45.6 million in FY 2017-18 and $45.3 million in FY 2018-19 and fully funds all participating school districts. Fund Code: 1800 D. Department of Public Instruction $19,000,000 NR $10,000,000 NR 34 Business System Modernization Provides funding for the implementation of the School Business System Modernization Plan. S.L. 2016-94 directed the State Board of Education to develop a plan to modernize systems used by DPI. The plan includes an Enterprise Resource Planning (ERP) system for integrated payroll and human resources information, an integrated State level licensure system, and reporting of financial information for increased transparency and analytics. The revised net appropriation for Business System Modernization is $19 million in FY 2017-18 and $10 million in FY 2018-19. (S.L. 2017-57, Sec. 7.16) Fund Code: 1300 $2,001,118 $2,001,118 0.65 0.65 35 Education and Workforce Innovation Commission R R Provides funding to establish the budget for the transfer of the Education and Workforce Innovation Commission from the Office of Governor to DPI. The revised net appropriation for the Commission is $6.2 million in FY 2017-18 and $2.7 million in FY 2018-19. (H.B. 450; S.L. 2017-57, Sec. 7.23G) (This item also appears in the General Government section. See page J 74, item 54.) Fund Code: 1000 $700,000 $3,500,000 R $700,000 R NR 36 Sixth and Seventh Grade Career and Technical Education Grant Program Provides funds for the Sixth and Seventh Grade Career and Technical Education (CTE) Grade Expansion Grant Program, which will be administered by the Education and Workforce Innovation Commission. This program awards competitive grants to school districts over a seven-year grant period to expand CTE programs to sixth and seventh grade students. The revised net appropriation for this program is $4.2 million in FY 2017-18 and $700,000 in FY 2018-19. (H.B. 450; S.L. 2017-57, Sec. 7.23F) Fund Code: 1000 Public Education Page F 14 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 $250,000 $250,000 2.00 2.00 37 Early Childhood Education R R Provides funds, and 2 positions, to support the newly created B-3 Inter-Agency Council to focus on the developmental and educational needs of children from birth to age 8. The revised net appropriation for fund code 1400 is $7.5 million in each year of the biennium. (H.B. 556; S.L. 2017-57, Sec. 7.23I) Fund Code: 1400 38 North Carolina Center for the Advancement of Teaching $300,000 R $300,000 R Provides additional funds to DPI for the North Carolina Center for the Advancement of Teaching (NCCAT). The revised net appropriation for NCCAT is $3.7 million in each year of the biennium. Fund Code: 1410 $200,000 $200,000 2.00 2.00 39 Future Ready Students R R Provides funds to support 2 regional positions in the Division of Career and Technical Education. These positions will assist school districts in developing business advisory councils, work-based learning opportunities, and career awareness programs. The revised net appropriation for fund code 1600 is $12.4 million in FY 2017-18 and $12.2 million in FY 2018-19. (H.B. 450; S.L. 2017-57, Sec. 7.23H) Fund Code: 1600 $200,000 NR 40 Reading Improvement Commission Provides funds for the Reading Improvement Commission. This Commission will review and make recommendations on best practices for public schools in grades 4 through 12 to ensure students complete high school with the literacy skills necessary for career and college readiness. The revised net appropriation for the Commission is $200,000 in FY 2017-18. (H.B. 751; S.L. 2017-57, Sec. 7.26B) Fund Code: 1600 $200,000 $200,000 2.00 2.00 41 Professional Educator Preparation R R Provides funds for 2 positions to support educator preparation approval and evaluation at DPI. The revised net appropriation for these positions is $200,000 in each year of the biennium. Fund Code: 1640 Public Education Page F 15 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 42 Licensure Fee Reimbursement for New Teachers $245,000 R $245,000 R Provides funds to DPI to reimburse the initial teacher licensure application fee for first time applicants. An applicant must be a graduate of an approved educator preparation program in North Carolina and must have successfully earned an initial teaching license in North Carolina. The revised net appropriation for this program is $245,000 in each year of the biennium. (S.B. 517; S.L. 2017-57, Sec. 7.28) Fund Code: 1640 43 Positions for State Superintendent $700,000 R $700,000 R Provides funding to the Office of the State Superintendent to support up to 10 positions that will be exempt from the State Human Resource Act and report directly to the State Superintendent. The revised net appropriation for the Office of the State Superintendent after this adjustment is $1.8 million in FY 2017-18 and $1.8 million in FY 2018-19. (H.B. 838; S.L. 2017-57, Sec. 7.10) Fund Code: 1000 $300,000 NR 44 Legal Fees Provides funds to the Office of State Superintendent for legal fees for active lawsuits. The revised net appropriation for legal fees for this purpose is $300,000 in FY 2017-18 only. Fund Code: 1000 $1,000,000 ($1,000,000) R NR 45 Audit of the Department of Public Instruction Provides funds to the Office of State Superintendent to contract with an objective third party organization to conduct a functional and business process audit of DPI. This item also reduces funding to DPI's operating budget beginning in FY 2018-19 to reflect anticipated savings resulting from the audit recommendations. (S.L. 2017-57, Sec. 7.23L) Fund Code: 1000 46 Management Flexibility Reduction ($3,239,205) R ($7,297,771) R Reduces DPI operating funds by 6.2% in FY 2017-18 and 13.9% in FY 2018-19. The revised net appropriation to DPI after this reduction is $49.4 million in FY 2017-18 and $45.4 million in FY 2018-19. (S.L. 2017-57, Sec.7.7) Fund Code: N/A Public Education Page F 16 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 ($140,000) ($140,000) -2.00 -2.00 47 Reserve Funds R R Removes recurring funding from the base budget that was provided to implement Senate Bill 867, 2016 Session of the 2015 Regular Session. This legislation was never ratified by the General Assembly. (S.B. 430/H.B. 537) Fund Code: 1000 ($188,030) ($188,030) -1.00 -1.00 48 State Board of Education R R Reduces funding to the State Board of Education, including the elimination of the following filled position: 60009490 - Associate State School Superintendent (1.00) The revised net appropriation for the State Board of Education is $640,356 in each year of the biennium. Fund Code: 1000 ($177,081) ($177,081) -1.00 -1.00 49 Position Eliminations R R Eliminates the following vacant position in DPI: 60093688 - Chief Performance Officer (1.00) This item also eliminates a filled Research Associate receipt-supported position (60009919) at DPI. The revised net appropriation for fund code 1000 is $4.6 million in each year of the biennium. Fund Code: 1000 ($59,988) ($59,988) -0.40 -0.40 50 Position Elimination R R Eliminates the following part-time vacant position in DPI: 60094937 - Education Program Director (0.40) The revised net appropriation in fund code 1100 is $5.3 million in each year of the biennium. Fund Code: 1100 Public Education Page F 17 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 ($111,042) ($111,042) -1.00 -1.00 51 Position Elimination R R Eliminates the following vacant position in DPI: 60009676 - Education Consultant III (1.00) The revised net appropriation for fund code 1300 on a recurring basis is $2.8 million in each year of the biennium. (S.L. 2017-197, Sec 2.8, Budget Technical Corrections, eliminates a Social/Clinical Research Specialist position (60009518) and operating funds in lieu of eliminating the Education Consultant III position (60009696).) Fund Code: 1300 ($66,121) ($66,121) -0.89 -0.89 52 Position Elimination R R Eliminates the following vacant position in DPI: 60091186 - Accountant (0.89) The revised net appropriation for fund code 1330 is $4.3 million in each year of the biennium. Fund Code: 1330 ($130,254) ($130,254) -2.75 -2.75 53 Position Eliminations R R Eliminates the following 3 vacant positions in DPI: 60041714 - Education Diagnostician I (1.00) 60039569 - Education/Development Aide II (1.00) 60039526 - Education/Development Aide II (0.75) The revised net appropriation in fund code 1400 is $7.5 million in each year of the biennium. Fund Code: 1400 ($145,206) ($145,206) -2.00 -2.00 54 Position Eliminations R R Eliminates the following 2 filled position in DPI: 60094593 - Business Technology Analyst (1.00) 65024592- Digital Learning Plan Project Coordinator (1.00) The revised net appropriation for fund code 1600 is $12.4 million in FY 2017-18 and $12.2 million in FY 2018-19. Fund Code: 1600 Public Education Page F 18 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 ($108,796) ($108,796) -1.00 -1.00 55 Position Elimination R R Eliminates the following filled position in DPI: 60039125 - Director of External Meetings & Special Projects (1.00) The revised net appropriation for fund code 1640 is $1.8 million in each year of the biennium. Fund Code: 1640 ($98,998) ($98,998) -1.00 -1.00 56 Position Elimination R R Eliminates the following vacant position in DPI: 60039518 - Education Consultant II (1.00) The revised net appropriation for fund code 1660 is $2.7 million in each year of the biennium. Fund Code: 1660 E. Reserves and Transfers 57 Coding and Mobile Application Grant Program $400,000 R $800,000 R Provides funds to DPI to establish a Coding and Mobile Application Grant Program. Funds appropriated for the program shall be used to award competitive grants each fiscal year. Grant funds shall be used for the purchase of equipment, digital materials, and related capacity building activities. Grant recipients shall use no more than 5% of the grant award each fiscal year for administrative costs. The revised net appropriation for this program is $400,000 in FY 2017-18 and $800,000 in FY 2018-19. (S.L. 2017-57, Sec. 7.23) Fund Code: 1900 58 Teacher Assistant Tuition Reimbursement Program $315,000 R $315,000 R Expands the teacher assistant tuition reimbursement pilot program to Alamance-Burlington, Beaufort, Bertie, Duplin, Edenton-Chowan, Edgecombe, Guilford, Halifax, Nash-Rocky Mount, Northampton, Randolph, Tyrrell, Vance, and Washington County Schools. The pilot program provides tuition reimbursement of up to $4,500 annually for 5 teacher assistants per school district who are pursuing a college degree that will result in teacher licensure. The revised net appropriation for this program is $427,500 in each year of the biennium. (S.B. 447, S.B. 443; S.L. 2017-57, Sec. 7.20) Fund Code: 1900 Public Education Page F 19 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 $7,180,000 NR 59 Advanced Teaching Roles Provides additional funds for a 3-year pilot program established in the FY 2016-17 budget. The pilot supports school district efforts to create the organizational structure and innovative compensation methods that would allow classroom teachers to take on advanced teaching roles. The revised net appropriation for the advanced teaching roles pilot program is $8.2 million in FY 2017- 18 and $1.0 million in FY 2018-19. (S.B. 430/H.B. 537; S.L. 2017-57, Sec. 7.15) Fund Code: 1900 60 Innovation Zone Model Grants $450,000 R Provides recurring beginning in FY 2018-19 only to DPI to award innovation zone model grants of up to $150,000 per year for 5 years to local boards of education who have been authorized by the State Board of Education to create an innovation zone pursuant to G.S. 115C-75.13. Local boards of education shall be required to provide a dollar-for-dollar match for the grant amount. The revised net appropriation for this program is $450,000 in FY 2018-19 only. (S.L. 2017-57, Sec. 7.26E) Fund Code: 1900 ($4,550,000) $1,000,000 R NR 61 NC Education Endowment Fund Fund Code: 1900 Reduces funding for the North Carolina Education Endowment Fund by $4.55 million on a one-time basis in FY 2017-18 and transfers $450,000 in remaining funds to the North Carolina State Education Assistance Authority for start-up funds to reinstate the NC Teaching Fellows Program. An additional $1 million in funding is provided for the Endowment Fund to support the Teaching Fellows program in FY 2018-19. The revised net appropriation to the Endowment Fund is $0 in FY 2017-18 and $6.0 million in FY 2018-19. (S.L. 2017-57, Sec. 10A.3) (This item also appears in the Public Education special funds in the Education section on page F 24 and in the UNC System General Fund in the Education section on page F 81, item 121.) Public Education Page F 20 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 ($6,145,461) NR 62 Cash Balance Reduces the net appropriation to DPI on a nonrecurring basis to reflect a one-time transfer of the cash balance in the North Carolina Education Endowment Fund. The revised net appropriation to DPI's operating budget is reduced by $6.1 million in FY 2017-18; however, total funding available to DPI remains unchanged. (S.L. 2017-57, Sec. 10A.3) Fund Code: 1900 F. Grants $300,000 NR 63 Eastern North Carolina STEM Provides funds to the State Board of Education to contract with an independent entity to administer a residential STEM enrichment program for underserved students. Participation in the program is limited to students enrolled in Northampton County Schools, Weldon City Schools, Roanoke Rapids City Schools and KIPP Pride High School in Gaston, NC. The revised net appropriation for Eastern NC STEM is $300,000 in FY 2017-18 only. (S.B. 430/H.B. 537) (S.L. 2017-197, Sec. 2.7, Budget Technical Corrections, adds Halifax County Schools to the list of eligible participants.) Fund Code: 1901 $50,000 NR 64 Communities in Schools of Cape Fear Provides funds to support the intervention programs and services provided by Communities in Schools of Cape Fear (CISCF) to address the needs of public school students at risk of grade level retention and dropout from school. The revised net appropriation for CISCF is $50,000 in FY 2017-18 only. (S.L. 2017-57, Sec. 6.13) Fund Code: 1901 $500,000 NR 65 Muddy Sneakers Provides funds to Muddy Sneakers to support its experiential learning programs that aim to improve the science aptitude of 5th graders through supplemental, hands-on field instruction of the State science standards. The revised net appropriation for Muddy Sneakers is $500,000 in FY 2017-18 only. (S.L. 2017-57, Sec. 6.13) Fund Code: 1901 Public Education Page F 21 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 $740,000 NR 66 Triangle Literacy Council Provides funds to the Triangle Literacy Council to support juvenile literacy centers that serve court-involved or otherwise at-risk youth. The revised net appropriation for the Triangle Literacy Council is $740,000 in FY 2017-18 only. (S.L. 2017-57, Sec. 6.13) Fund Code: 1901 $25,000 NR 67 Hoke Reading Literacy Council, Inc. Provides funds to the Hoke Reading Literacy Council, Inc. The Council aims to provide basic literacy instruction including English as a Second Language and introductory computer classes. The revised net appropriation for the Hoke Reading Literacy Council, Inc. is $25,000 in FY 2017-18 only. (S.L. 2017-57, Sec. 6.13) Fund Code: 1901 $360,000 NR $360,000 NR 68 Life Changing Experiences Pilot Program Provides funds to DPI to contract with the Children and Parent Resource Group, Inc. for the Life Changing Experiences Program, a three dimensional and interactive multimedia education program which focuses on activities that negatively impact teenagers, including alcohol and drugs, dangerous driving, violence, and bullying. This program targets students in grades 6 through 11 and will be piloted in Mitchell, Pitt, Wayne, and Winston Salem/Forsyth County Schools. The revised net appropriation for this program is $360,000 in each year of the biennium. (S.B. 423/H.B. 884; S.L. 2017-57, Sec. 7.25) Fund Code: 1901 $250,000 NR 69 Haywood Community Learning Center Provides additional funds to the Haywood County School District to support the Haywood Community Learning Center to provide enrichment opportunities to students in FY 2017-18 only. (S.L. 2017-57, Sec. 6.13) Fund Code: 1901 $100,000 NR 70 Harnett County Early College Provides funds to the Harnett County School district to support the planning and development of the Harnett County Early College. The revised net appropriation for the Harnett County Early College is $100,000 in FY 2017-18 only. (S.L. 2017-57, Sec. 6.13) Fund Code: 1901 Public Education Page F 22 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 $200,000 NR 71 Richmond Senior High School Provides additional funds to the Richmond County School District to support Richmond Senior High School in FY 2017-18 only. (S.L. 2017-57, Sec. 6.13) Fund Code: 1901 $289,316,731 $17,865,905 $686,028,440 $15,360,000 -6.39 -6.39 Total Legislative Changes Total Position Changes Revised Budget $9,046,403,622 $9,425,109,426 R NR R NR Public Education Page F 23 Recommended Budget Legislative Changes 2017 Annotated Conference Committee Report DPI - Trust Special Budget Code: 63501 Requirements Receipts Positions Beginning Unreserved Fund Balance Requirements: $6,000,000 $5,000,000 $6,000,000 $5,000,000 0.00 0.00 $7,440,151 $694,530 FY 2017-18 FY 2018-19 Increases the recurring transfer from DPI's General Fund budget to the Endowment Fund by $1 million for the Teaching Fellows Program in FY 2018-19. The revised net appropriation for the Teaching Fellows Program in FY 2018-19 is $6 million. (This item also appears in the Public Education General Fund in the Education section. See page F 21, item 61.) North Carolina Education Endowment Fund (6109) $0 $1,000,000 0.00 0.00 $0 $0 R R NR NR Transfers the cash balance estimated to be $6,145,461 by the end of the fiscal year to DPI to offset the Department's operating budget in FY 2017-18. (This item also appears in the Public Education General Fund in the Education section. See page F 21, item 62.) North Carolina Education Endowment Fund (6109) $0 $0 0.00 0.00 $6,145,461 $0 R R NR NR Makes a technical adjustment to remove the $1 million reserve line-item on a recurring basis and decreases the $5 million reserve line-item on a nonrecurring basis in FY 2017-18 only. (This item also appears in the Public Education General Fund in the Education section. See page F 21, item 61.) North Carolina Education Endowment Fund (6109) ($1,000,000) ($1,000,000) 0.00 0.00 ($5,000,000) $0 R R NR NR Department of Public Instruction Page F 24 2017 Annotated Conference Committee Report FY 2017-18 FY 2018-19 Receipts: $0 $0 0.00 0.00 $259,833 $0 R R NR NR State Literary Fund (6102) Transfers the cash balance to the SPSF to offset the textbooks and digital materials allotment in FY 2017-18. (This item also appears in the Public Education General Fund in the Education section. See page F 10, item 19.) Education Fund (6116) Transfers the cash balance to the SPSF to offset the textbooks and digital materials allotment in FY 2017-18. (This item also appears in the Public Education General Fund in the Education section. See page F 10, item 19.) $0 $0 0.00 0.00 $340,327 $0 R R NR NR Subtotal Legislative Changes ($1,000,000) $0 0.00 0.00 R NR R $1,745,621 $0 NR Decreases the $5 million transfer from DPI's General Fund budget to the Endowment Fund on a nonrecurring basis in FY 2017-18 and increases the transfer from DPI's General Fund budget to the Endowment Fund by $1 million for the Teaching Fellows Program on a recurring basis starting in FY 2018-19. The revised net appropriation for the Endowment Fund is $6 million in FY 2018-19. North Carolina Education Endowment Fund $0 $1,000,000 ($5,000,000) $0 R NR R NR No change. State Literary Fund (6102) $0 $0 $0 $0 R NR R NR No change. Education Fund (6116) $0 $0 $0 $0 R NR R NR Subtotal Legislative Changes $0 $1,000,000 ($5,000,000) $0 R NR R NR Department of Public Instruction Page F 25 2017 Annotated Conference Committee Report FY 2017-18 FY 2018-19 Revised Total Requirements Change in Fund Balance Unappropriated Balance Remaining Revised Total Receipts Total Positions ($6,745,621) $6,745,621 $6,000,000 $0 $694,530 $694,530 $0 $6,000,000 0.00 0.00 Department of Public Instruction Page F 26 Special Provisions Department: Public Education 2017 Session: SB 257 Provides $4,125.27 per child for children with disabilities to each LEA for the lesser of (i) all children who are identified as children with disabilities, or (ii) 12.75% of the LEA's allotted average daily membership (ADM). Additionally, subsection (b) prohibits LEAs from transferring funds out of the children with disabilities allotment into another allotment category. This change is effective with the 2017-18 school year. (S.B. 430/H.B. 537). Section: 7.1 Title: FUNDS FOR CHILDREN WITH DISABILITIES Summary: Provides $1,314.56 per child for academically and intellectually gifted children to each LEA for a maximum of 4% of each LEA's allotted ADM. Subsection (b) prohibits LEAs from transferring funds allotted for academically and intellectually gifted children into another allotment category. This change is effective with the 2018-19 school year. (S.B. 430/H.B. 537) Section: 7.2 Title: FUNDS FOR ACADEMICALLY GIFTED CHILDREN Summary: Continues the formula for determining eligibility for and distribution of funds appropriated in FY 2017-18 and FY 2018-19 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. (S.B. 430/H.B. 537) Section: 7.3 Title: 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. This schedule is unchanged from the 2015-17 biennium. (S.B. 430/H.B. 537) Section: 7.4 Title: SMALL COUNTY SCHOOL SYSTEM SUPPLEMENTAL FUNDING Summary: Public Education Page F 27 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). (S.B. 430/H.B. 537) Section: 7.5 DISADVANTAGED STUDENT SUPPLEMENTAL Title: FUNDING (DSSF) Summary: Directs that funds appropriated for UERS for the 2017-19 biennium shall not revert. (S.B. 430/H.B. 537) Section: 7.6 Title: UNIFORM EDUCATION REPORTING SYSTEM (UERS) FUNDS Summary: Prescribes how DPI may implement the management flexibility reduction included in the budget. Specifically, DPI may make no reduction in funding to the State Public School Fund, including the residential schools, or to any budget expansion item funded by an appropriation to DPI by this act for the 2017-19 Fiscal Biennium. Additionally, DPI may not make reductions to the following areas: - Communities in Schools of North Carolina, Inc., - Teach for America, Inc., - Beginnings for Parents of Children Who are Deaf or Hard of Hearing, Inc., - The Excellent Public Schools Act, Read to Achieve Program, - The North Carolina School Connectivity Program, - The North Carolina Center for the Advancement of Teaching, - The North Carolina Innovative School District, - Eastern North Carolina STEM, and - Positions appointed by and with a direct report to the State Superintendent of Public Instruction, including those positions described in S.L. 2017-57, Sec. 7.10, Appropriations Act of 2017. Section: 7.7 Title: BUDGET REDUCTIONS/DEPARTMENT OF PUBLIC INSTRUCTION Summary: Directs DPI, in consultation with the Office of State Budget and Management, to align federal funds to accurately reflect the amount projected to be received and spent by the Department as part of the certification of the budget. This requirement is in accordance with the State Budget Act, G.S. 143C.. Section: 7.8 Title: DPI/ALIGNMENT OF FEDERAL FUNDS Summary: Directs DPI to use funds appropriated to implement the Excellent Public School Act (Section 7A.1 of S.L. 2012-142, as amended) to fund 13 time-limited positions that support K-3 assessments. Funding is authorized through the end of the 2017-19 biennium. (S.B. 430/H.B. 537) Section: 7.9 Title: ADMINISTRATION OF THE EXCELLENT PUBLIC SCHOOLS ACT Summary: Public Education Page F 28 Authorizes the Superintendent of Public Instruction to use up to $700,000 to appoint up to 10 positions that are exempt from the State Human Resource Act and report directly to the State Superintendent. (H.B. 838) Section: 7.10 SUPERINTENDENT OF PUBLIC INSTRUCTION Title: SUPPORT STAFF Summary: Allows DPI to carry forward funds appropriated in S.L. 2016-94, 2016 Appropriations Act, related to the implementation and evaluation of 4 programs. These 4 programs include: the Teacher Compensation and Advanced Teaching Roles Pilot Program, the Local Alternative Teacher Preparation Program, the North Carolina Innovative School District, and School Connectivity. Section: 7.11 Title: CARRYFORWARD OF CERTAIN DPI FUNDS Summary: Prohibits LEAs from transferring funds allotted for limited English proficiency into another allotment category, effective with the 2017-18 school year. Section: 7.12 Title: PROHIBIT TRANSFER OF LIMITED ENGLISH PROFICIENCY FUNDS Summary: Prohibits LEAs from transferring funds allotted for textbooks and digital resources into another allotment category, effective with the 2018-19 school year. Section: 7.13 Title: PROHIBIT TRANSFER OF TEXTBOOKS AND DIGITAL RESOURCES FUNDS Summary: Repeals Section 8.7(i) of S.L. 2016-94, 2016 Appropriations Act, which allowed LEAs receiving grants from the Teacher Compensation Models and Advanced Teaching Roles Pilot Program to exceed the maximum class size requirements for kindergarten through 3rd grade. However, under this section, LEAs receiving grants may allow a certain number of schools identified in the LEAs' proposals for the Program to exceed individual class size requirements in kindergarten through 3rd grade for the duration of the Program. In addition, schools participating in Project Lift in the Charlotte-Mecklenburg Schools and schools participating in R:3 Career Pathways Program in Pitt County Schools may also exceed individual class size requirements in kindergarten through 3rd grade for the duration of the program. This section also provides that class size requirements for kindergarten through 3rd grade do not apply to dual-language immersion classes, which are defined as classes where (i) at least one-third of the students' dominant language is English and (ii) instruction involves both English and a target foreign language with a minimum of 50% of core content taught in the target foreign language. The exemption for LEAs participating in the Program expires June 30, 2020. The exemption for dual-language immersion classes applies beginning with the 2017-2018 school year. Section: 7.15 CLASS SIZE FLEXIBILITY FOR CURRENT PILOT PROGRAMS AND DUAL LANGUAGE IMMERSION CLASSES Title: Summary: Public Education Page F 29 Directs DPI to implement the School Business System Modernization Plan, as proposed by the SBE as required by Section 8.15 of S.L. 2016-94, 2016 Appropriations Act. The section states the General Assembly's intent to fund a multi-phase, multi-year project intended to: modernize State and local education financial, human resource, and school information systems, provide for a common reporting and analytics system, integrate financial, payroll, human resources, and related human capital systems through the use of a enterprise resource planning (ERP) solution, and link the State licensure system with the upgraded local systems. DPI must report to the Joint Legislative Education Oversight Committee (JLEOC) and the Fiscal Research Division (FRD) on the plan development and plan for implementation by September 1, 2017, and each year thereafter by March 15. Section: 7.16 IMPROVE EDUCATION FINANCIAL AND INFORMATION Title: TRANSPARENCY Summary: Directs DPI to use up to $200,000 of the funds authorized to be carried forward for UERS to support the purchase of a web-based electronic records and data management system to automate and streamline reporting and accountability requirements of charter schools. (S.B. 430/H.B. 537) Section: 7.17 Title: OFFICE OF CHARTER SCHOOLS/WEB-BASED RECORD AND DATA MANAGEMENT Summary: Amends G.S. 115C to add a new section, G.S. 115C- 13.5, which prohibits the SBE from using State funds to employ private counsel for litigation services. Additionally, the section clarifies which positions support the SBE, reflecting the elimination of the Associate State School Superintendent position in item 48 on page F 17 of the Education section. . Section: 7.18 Title: STATE BOARD OF EDUCATION/USE OF STATE FUNDS Summary: Amends G.S. 115C-301 to direct the SBE to allot additional classroom teachers to schools where consolidation is not feasible due to geographic isolation and the school meets at least 1 of the following criteria: (1) Be located in an LEA in with an average daily membership of less than 1.5 students per square mile, or (2) Be located in a county containing more than 150,000 acres of national forest owned by the federal government and managed by the United States Forest Service. The SBE must allot teachers to geographically-isolated schools on the basis of 1 classroom teacher per grade level and must allot teachers to the remainder of the LEA in accordance with the formulas for the regular classroom teacher allotment. (S.B. 15/H.B. 23) Section: 7.19 Title: TEACHERS/ISOLATED K-12 SCHOOLS Summary: Public Education Page F 30 Amends Section 8.29 of S.L. 2016-94, 2016 Appropriations Act, to expand the pilot program providing tuition assistance awards to part- or full-time teacher assistants working in certain LEAs to pursue a college degree that will result in teacher licensure. The pilot program will be available beginning in the 2017-18 school year in Alamance Burlington Schools, Beaufort County Schools, Bertie County Schools, Duplin County Schools, Edenton-Chowan Schools, Edgecombe County Schools, Guilford County Schools, Halifax County Schools, Nash-Rocky Mount Schools, Northampton County Schools, Randolph County Schools, Tyrrell County Schools, Vance County Schools, and Washington County Schools. Additionally, the section provides that beginning with the 2017-18 school year, teacher assistants must continue to receive salary and benefits while student teaching in the same LEA where they are employed as a teacher assistant. All local boards of education participating in the pilot program must report jointly to JLEOC by September 1, 2018, and annually thereafter, on results of the pilot program. (S.B. 447, S.B. 443) Section: 7.20 TURNING TAS INTO TEACHERS PILOT EXPANSION/STUDENT TEACHER EMPLOYMENT Title: Summary: Modifies supplemental funding available for Cooperative and Innovative High Schools (CIHS). Beginning in FY 2017-18, all CIHSs approved for operation will receive funds through the CIHS allotment, including CIHSs that previously have not received supplemental funds. CIHS funds will vary based on the economic development tier the CIHS is located in, with Tier 1 CIHSs receiving $275,000, Tier 2 and 3 CIHSs receiving $200,000, and virtual CIHSs receiving $200,000 regardless of tier. Tier 3 CIHSs will receive $175,000 beginning in FY 2018-19. The State Board of Community Colleges, the Board of Governors of the University of North Carolina (UNC), and the SBE must study and report to the Senate Appropriations Committee on Education/Higher Education and the House Appropriations Committee on Education (Appropriations Committees on Education), FRD, and JLEOC on the costs associated with the Career and College Promise Program, student outcomes related to the Program, and any recommendations on modifications to the administration and funding of the Program by February 15, 2018. The section also amends G.S. 115C-238.55 by requiring the State Board of Community Colleges, in conjunction with the SBE and the Board of Governors of UNC, to evaluate the success of students participating in the Career and College Promise Program. The Boards must report jointly by January 15 of each year to JLEOC. (S.B. 582, Sec. 2.1, Budget Technical Corrections, amends this provision to change the reporting date for the joint report on student success from January 15 to March 15 of each year.) Section: 7.22 COOPERATIVE INNOVATIVE HIGH SCHOOL Title: FUNDING CHANGES Summary: Public Education Page F 31 Directs DPI to establish the Coding and Mobile Application Grant Program to develop industry partnerships with LEAs and charter schools to design and implement computer science, coding, and mobile application development curricular programs for middle school and high school students. Funds for the Program are to be used to award competitive grants of up to $400,000 each fiscal year. These grants may be used for the purchase of equipment, digital materials, and related activities such as teacher professional development. In selecting recipients, the State Superintendent must consider diversity among the applicants, including geographic location, positive impact on the community of industry partnerships, and the size of the student population. Initial grant recipients must be selected by November 15, 2017, and the Program's implementation must begin in the spring semester of the 2017-2018 school year. By August 1 of each year of the Program, grant recipients must submit a report to DPI for the preceding year in which grant funds were expended that provides information on the use of the funds, the number of students participating in the program, how many students subsequently participated in work based opportunities, and outcome data regarding job attainment and postsecondary opportunities as a result of the partnership initiative. By September 15 of each year DPI must report to JLEOC and FRD, beginning with an initial report by September 15, 2018, on grant recipients and implementation of the Program. Section: 7.23 PREPARING FUTURE WORKFORCE IN CODING AND MOBILE APP DEVELOPMENT GRANT PROGRAM Title: Summary: Requires the SBE and DPI, in collaboration with the Friday Institute for Educational Innovation (Friday Institute) at North Carolina State University, to expand the School Connectivity Initiative client network engineering to include cybersecurity and risk management services supporting LEAs and charter schools. The expansion must include continuous monitoring and risk assessment, security advisory and consulting services, and security training and education services. (S.L. 2017-197, Sec. 2.2, Budget Technical Corrections, amends this section by removing the requirement that the expansion plan must include building security programs.) Section: 7.23A EXPAND SCHOOL CONNECTIVITY INITIATIVE/CYBERSECURITY Title: AND RISK MANAGEMENT Summary: Requires the SBE and DPI to report to JLEOC by March 30, 2018 on the measures taken by each LEA to implement requirements regarding cursive writing and memorization of multiplication tables, pursuant to G.S. 115C-81(k) and G.S. 115C-81(l). Section: 7.23B Title: REPORT ON CURSIVE WRITING AND MULTIPLICATION TABLES Summary: Public Education Page F 32 Creates the Joint Legislative Task Force on Education Finance Reform consisting of 18 legislators (9 from each chamber). The overall makeup of the Task Force is expected to reflect geographic and urban/rural diversity and must include at least 1 member of the minority party from each chamber. The Task Force is charged with studying various weighted student formula funding models and developing a new funding model for elementary and secondary public schools. The Task Force is required to begin meetings by October 1, 2017, and to submit a final report on the results of its study and development, including proposed legislation, to the offices of the President Pro Tempore of the Senate and the Speaker of the House of Representatives, JLEOC, and the Legislative Library, on or before October 1, 2018. (S.B. 9/H.B. 6) Section: 7.23D JOINT LEGISLATIVE TASK FORCE ON EDUCATION Title: FINANCE REFORM Summary: Prohibits the use of the analysis of student work process to assess teacher performance and requires the SBE to reflect this prohibition in the consolidated State plan submitted to the U.S. Department of Education. This section also makes conforming changes to G.S. 115C-296(e) and 115C-296.11(b)(3). Section: 7.23E Title: ELIMINATE ANALYSIS OF STUDENT WORK PROCESS FOR TEACHER EVALUATIONS Summary: Amends G.S.115C-64.15C to create a competitive grant program expanding Career and Technical Education (CTE) to 6th and 7th grades in selected LEAs to be administered by the North Carolina Education and Workforce Innovation Commission (transferred to DPI in Section 7.23G of S.L. 2017-57, 2017 Appropriations Act). The program awards grants to school districts for up to a 7 year period to be used for employing additional licensed personnel in CTE and support service areas. (H.B. 450) Section: 7.23F Title: SIXTH AND SEVENTH GRADE CTE PROGRAM EXPANSION GRANT PROGRAM Summary: Transfers the North Carolina Education and Innovation Commission from the Governor’s Office to DPI as a Type II transfer. This section also rewrites G.S. 115C-64.15(a) to revise the amount of funds that can be used for administrative expenses from a flat amount of $200,000 to 10%. (H.B. 450) Section: 7.23G Title: TRANSFER EDUCATION AND WORKFORCE INNOVATION COMMISSION TO DPI Summary: Public Education Page F 33 Changes the name of the vocational and technical education program to the career and technical education program and makes conforming changes throughout Chapter 115C. The section also amends Article 10 of Chapter 115C to create a new part 4, G.S. 115C-170, which establishes business advisory councils that will assist school districts in providing CTE instruction, identify economic and workforce development trends in the region, and advocate for strong local CTE programs. Additionally, the section amends G.S. 115C-157 to require local boards of education to offer at least 2 work-based learning opportunities consisting of on-the-job training through an internship, cooperative education, or an apprenticeship program. Lastly, the section amends G.S. 115C-302.1 to require that for the 2018-19 school year, CTE teacher positions serving students in grades 9-12 must be 12 month employees. School districts may use any combination of State and local funds to meet this requirement. (H.B. 450) Section: 7.23H FUTURE Title: READY STUDENTS Summary: Amends Chapter 115C to create a new Article 6D to establish the B-3 Interagency Council, a joint council between the Department of Health and Human Services (DHHS) and DPI charged with establishing a vision for a birth through grade 3 system of early education. The section also directs the Council to undertake a rigorous review of the recommendations developed by DHHS and DPI pursuant to Section 12B.5 of S.L. 2016-94, 2016 Appropriations Act, and to report any suggested changes to those recommendations to the General Assembly and the Governor. The section also establishes a new exempt position of Associate Superintendent of Early Education who will serve as the chief academic officer of early education and whose duties will be to co-lead work of the Council and oversee DPI’s pre-K through 3rd grade initiative. The Council is required to report on the initial results of the review to JLEOC, the Joint Legislative Oversight Committee on Health Human Services, and the Joint Legislative Commission on Governmental Operations by April 15, 2018. The Council must report on the final results of the review and implementation of a plan for a coordinated system of early care, education, and child development services by February 15, 2019. (H.B. 556) (S.L. 2017-197, Sec. 2.3, Budget Technical Corrections, amends this section to allow the Superintendent of Public Instruction to remove the Associate Superintendent for any reason, not only in the event of incapacity to serve.) Section: 7.23I Title: ESTABLISH B-3 INTERAGENCY COUNCIL Summary: Public Education Page F 34 Amends G.S. 115C-105.25 to require each LEA to publish additional financial information on its website by October 15 of each year. Specifically, if an LEA transfers more than 5% of the funds out of an allotment, the LEA must post to its website the total amount of the funds transferred, the allotment category into which the funds were transferred, the purpose code for the funds following the transfer, and a description of teacher positions funded as a result of the transfer. DPI is required to report the aggregated information to JLEOC and FRD no later than December 1 of each year. (S.L. 2017-197, Sec. 7.23J, Budget Technical Corrections, amends this section to clarify that the allotment transfer report must include information on the uses of funds transferred for the 2014- 2015, 2015-2016, and 2016-2017 fiscal years.) Section: 7.23J Title: ALLOTMENT TRANSFER REPORT Summary: Directs the SBE, DPI, the Friday Institute, and the UNC educator preparation programs to develop and implement a comprehensive professional development strategy for teachers and students in UNC educator preparation programs for the use of technology and digital resources as teaching tools. Additionally, the section directs that the SBE, DPI, the Friday Institute, UNC education preparation programs, and local school boards located in the most economically-distressed counties to assess current efforts to provide digital literacy instruction in kindergarten through 8th grade and to develop a plan to strengthen such efforts. Section: 7.23K Title: DIGITAL LEARNING PLAN/PROGRAMS/FUNDS Summary: Directs the State Superintendent to select an independent research organization to conduct an organizational, functional, and business-process audit of DPI. The audit's results are due to the General Assembly, JLEOC, and FRD by May 1, 2018. Section: 7.23L Title: AUDIT OF THE DEPARTMENT OF PUBLIC INSTRUCTION Summary: Public Education Page F 35 Directs DPI to use up to $6 million in each year of the biennium from the at-risk student services alternative school allotment for the Extended Learning and Integrated Student Supports Competitive Grant Program. The Program provides grants to programs for at-risk students operated by nonprofit corporations and nonprofit corporations working in collaboration with LEAs. Grant recipients are eligible to receive grants for 2 years of up to $500,000 each year, with priority consideration given to applications demonstrating models that focus services and programs in low-performing schools. Grant funds must be matched on the basis of 1 dollar in non-grant funds for every 3 dollars in grant funds.. Grant recipients must report to DPI for the year in which grant funds were expended and must submit a final report on key performance data, including statewide test results, attendance rates, graduation rates, promotion rates, and financial sustainability of the program. DPI must provide an interim report on the Program to JLEOC by September 15, 2018, with a final report due on the Program by September 15, 2019. Section: 7.24 EXTENDED LEARNING AND INTEGRATED STUDENT SUPPORTS COMPETITIVE GRANT PROGRAM Title: Summary: Directs DPI to use up to $360,000 in both years of the biennium to contract with the Children and Parents Resource Group, Inc. to design, implement, and evaluate a Life Changing Experiences School Pilot Program focused on dangerous life- and community-threatening activities that negatively impact teenagers. The Program shall be offered to students in grades 6 through 11 in Mitchell, Pitt, Wayne and Winston-Salem/Forsyth school districts. The Children and Parents Resource Group, Inc., in consultation with DPI, is required to submit an interim report by March 1, 2018, and a final report by March 1, 2019 to JLEOC and FRD. (S.B. 423/H.B. 884) Section: 7.25 LIFE CHANGING EXPERIENCES SCHOOL Title: PILOT PROGRAM Summary: Public Education Page F 36 Amends Chapter 115C and G.S. 116-239.8(14) to make several changes to the calculation of school achievement scores and compliance with the Every Student Succeeds Act (ESSA). Subsection (a) modifies G.S. 115C-12(9)c1 regarding the requirements for the annual school report card to include student progress in achieving English language proficiency and school performance of certain subgroups of students to comply with ESSA. Subsection (c) revises G.S. 115C-83.15 to modify the school achievement score calculation to include 1 point for each percent of students who progress in achieving English language proficiency on annual assessments. Additionally, the subsection prohibits the SBE from adding any other designations related to school performance to a letter grade, such as plus or minus, and requires the SBE to use the Education Value Added Assessment System (EVAAS) to calculate school performance scores and grades for several subgroups. Subsection (d) directs the SBE to use the school performance grades to comply with ESSA, using the academic achievement score as the measure of academic achievement, and school growth as the measure of school quality and student success, and to weigh indicators in accordance with G.S. 115C-83.15. Subsections 7.26.(e) - (k) make various conforming changes to clarify that "school performance grade" refers to the overall grade (80% achievement and 20% growth), not including any of the subgroup grades. (S.L. 2017-197, Sec. 2.5, Budget Technical Corrections, amends this section to specify that EVAAS data is used to calculate school growth rather than to calculate the overall performance scores and grades.) Section: 7.26 SCHOOL PERFORMANCE GRADES/Title: ESSA COMPLIANCE Summary: Amends G.S. 115C-401.2(e) to clarify that operators of internet websites, online services, online applications, or mobile applications may use a student's information to identify information on nonprofit institutions of higher education or scholarship providers to the student if express written consent from the parent, or a student who is at least 13, is given to the provider. Section: 7.26A CLARIFY STUDENT CONSENT TO RECEIVE COLLEGE, UNIVERSITY, AND SCHOLARSHIP INFORMATION Title: Summary: Public Education Page F 37 Amends G.S. 115C-12(40) to require that career and college diploma endorsements be awarded only to students who receive scores on a nationally norm-referenced college admissions test for reading, indicating the level of achievement required for students to have a 50% chance of obtaining a grade B or higher or a 75% chance of obtaining a grade C or higher in a corresponding credit bearing, first-year college course. The section authorizes students to retake the college admission test to achieve the required score. Subsection (b) requires the Superintendent of Public Instruction to establish a Reading Improvement Commission to study and make recommendations on best practices for public schools to improve reading comprehension, understanding, and application for students in grades 4 through 12 to ensure that students complete high school with literacy skills necessary for career and college readiness. The Superintendent must report to the JLEOC, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the SBE on the study, including any findings and recommendations, by January 15, 2019. The SBE may use the findings and recommendations to inform the SBE's policies and may submit additional comments on DPI's report no later than February 15, 2019. (H.B. 751) Section: 7.26B CAREER AND COLLEGE READY LITERACY SKILLS/READING IMPROVEMENT Title: COMMISSION Summary: Amends G.S. 115C-174.11(c)(4) to require the SBE to use a competitive bid process to adopt 1 nationally norm-referenced college admissions test to make available to LEAs, regional schools, and charter schools to administer to students in 11th grade, and one alternate to the nationally norm-referenced test. This section also makes a conforming change to G.S. 115C-174.22. Tests chosen through the competitive bid process shall be administered beginning with the 2019-20 school year, and the SBE is required to report on the results of the bid process to JLEOC by May 15, 2019. Section: 7.26C Title: NATIONALLY NORM-REFERENCED COLLEGE ADMISSIONS TEST Summary: Renames the Achievement School District to the North Carolina Innovative School District (ISD) and makes conforming changes through the statutes. The section also clarifies that the ISD is an LEA for the purposes of federal law and for the administration of State law and moves up the timelines for the selection of the schools to be included in the ISD by 1 month. It also delays the timeline for implementing and evaluating of the ISD by 1 year, including all reporting requirements. The section further allows a local board of education that transferred a school into the ISD to ask the SBE to create an innovation zone for all of the low-performing schools in its local school administrative unit if 35% or more of schools are low-performing. The designation as an innovation zone authorizes the local board of education to operate schools with the same exemptions from State law and rules as charter schools. A low-performing school in an innovation zone becomes a school in the ISD if the low-performing school does not exceed expected growth in the last 2 years of the 5 consecutive years in an innovation zone. Section: 7.26E Title: NORTH CAROLINA INNOVATIVE SCHOOL DISTRICT Summary: Public Education Page F 38 Amends G.S. 115C-83.6 to require, beginning with the 2018-2019 school year, that kindergarten through 3rd grade reading assessments yield data that can be used with EVAAS to analyze student data. By October 1, 2017, the State Superintendent must issue a Request for Proposals (RFP) to vendors of diagnostic reading assessment instruments to provide 1 or more valid, reliable, formative, and diagnostic reading assessment instrument or instruments that, at a minimum, yield data that can be used with EVAAS, demonstrate close alignment with student performance on State assessments, and demonstrate high rates of predictability as to student performance on State assessments. (S.L. 2017-197, Sec 2.6, Budget Technical Corrections, amends this section to permit DPI to carry forward up to $5 million of funds appropriated in S.L. 2015-241, 2015 Appropriations Act, for the Excellent Public Schools Act through the end of the 2017-2018 Fiscal Year. These funds shall be allotted to LEAs for the purchase of computers or other electronic devices used for the administration of the formative and diagnostic reading assessments made available by the SBE pursuant to G.S. 115C‑174.11.) Section: 7.27 READ TO ACHIEVE Title: DIAGNOSTIC CHANGES Summary: Amends g.S. 115C-296 to requires the SBE to reimburse the initial teacher application fee for a first time applicant if the applicant is a graduate of an approved educator preparation program located in North Carolina and has successfully earned his or her initial teaching license in North Carolina. (S.B. 517) Section: 7.28 Title: REIMBURSE INITIAL TEACHER LICENSURE FEE FOR CERTAIN TEACHING GRADUATES Summary: Public Education Page F 39 Directs the Superintendent of Public Instruction to study and make recommendations about the extent to which the SAT and ACT align with the English language arts and mathematics sections of the North Carolina Standard Course of Study. Findings and recommendations must be made by February 1, 2018, to the Governor, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the JLEOC. The section also amends G.S. 115C-174.12 to change the date by which local boards of education must notify the SBE of any local standardized testing required by the local board of education, including various reporting requirements about the test. It further directs the SBE to publish on DPI’s website a uniform calendar that includes schedules for State-required testing and reporting results of tests for at least the next 2 school years, including estimates of the average time for administering State-required standardized tests. Local boards of education are also required to populate the calendar with information on local testing requirements. The section further amends Part 2 of Article 10A of G.S.115C to add 2 new sections. The first requires local boards of education to provide a student's results on standardized tests required by the local board to the student's teachers and parents within specified timelines. The second requires DPI to provide a student's results on statewide standardized tests in a timely manner and in an understandable format to local boards that in turn must provide those results to the teacher of record and the parent. Finally, this section amends G.S. 115C-81(b) to provide that the Basic Education Program must provide standards for early promotion based on the mastery of competencies that apply when early grade or course promotion based on the mastery of competencies is permitted in a school. The standards must include the requirements for early promotion for English language arts for grades 3 through 12 and mathematics for grades 3 through 12. (H.B. 841) Section: 7.28A Title: TESTING TRANSPARENCY Summary: Amends G.S. 115C-174.26(a) to add Cambridge Advanced International Certificate of Education (AICE) courses, including AS-Level or A-1 Level courses, to the definition of advanced courses thereby exempting students enrolled in the courses from paying for registration and examination fees to the extent that funds are made available for this purpose. Section: 7.28D Title: WAIVE FEE FOR CAMBRIDGE AICE PROGRAM COURSE Summary: Directs the Superintendent of Public Instruction to establish a 3-year Financial Literacy Elective Course Pilot Program and to select LEAs that represent the State's geographic, economic, and social diversity to participate in the pilot program. The SBE, in consultation with the Superintendent, shall develop a curriculum, materials, qualifications for teaching the course, and guidelines for LEAs to use. By November 15 of each year, DPI shall report to the JLEOC on the implementation and administration of the program and recommendations on the modification, continuation, and expansion of the program. (H.B. 882) Section: 7.32 Title: FINANCIAL LITERACY ELECTIVE COURSE PILOT PROGRAM Summary: Public Education Page F 40 Directs DPI to establish the Charter School Transportation Grant Pilot Program. The Program's purpose is to award grant funds to charter schools that meets the requirements of the Program for the reimbursement of up to 65% of the eligible student transportation costs incurred by the charter school, including transportation fuel, vehicle maintenance, and contracted transportation services. To be eligible, at least 50% of a charter school's students must reside in households with an income level not in excess of the amount required for a student to qualify for the federal free or reduced price lunch program in a semester of the school year. DPI must report on the administration of the Program by March 15, 2018, to FRD, the Joint Legislative Transportation Oversight Committee, and the JLEOC. (S.B. 662, H.B. 644) Section: 7.35 CHARTER SCHOOL TRANSPORTATION Title: GRANT PILOT PROGRAM Summary: Public Education Page F 41 Establishes the monthly minimum salary schedule (salary schedule) for the 2017-18 fiscal year for certified personnel in North Carolina public schools. Subsection (a) sets the salary schedule for the 2017-18 fiscal year for licensed public school personnel who are classified as teachers and hold a bachelor’s degree. Subsection (b) sets the salary supplements for licensed teachers who have additional education or certification, including holding a National Board of Professional Teaching Standards (NBPTS) certification, a master’s degree (and are classified as "M" teachers), a license based on academic preparation at the 6-year degree level, or a license based on academic preparation at the doctoral degree level. Additionally, certified school nurses receive a salary supplement of 10%. Subsection (c) establishes that the 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 to be 7.5% higher than the salary on 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) requires that teachers not otherwise receiving a salary increase from the applicable amount on the new salary schedule are to be held harmless at the amount received in FY 2014-15, including any State-provided bonuses, if applicable. Subsection (g) clarifies that the term "teacher" includes instructional support personnel. Subsection (h) repeals Section 9.1(i) of S.L. 2016-94, 2016 Appropriations Act, which contained an intended teacher salary schedule for FY 2018-19. Subsection (i) outlines the General Assembly’s intended "A" salary schedule to be implemented for FY 2018-19. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.1 TEACHER Title: SALARY SCHEDULE Summary: Public Education Page F 42 Provides teachers entering the profession with a salary supplement in addition to the teacher salary schedule if the teacher graduated from an approved educator preparation program in the State with: • A grade point average of 3.75 or higher, and, • A score of 48 or higher on the edTPA assessment, or an equivalent score on another type of nationally-normed teacher assessment. The salary supplement is structured as an income-leveling adjustment that provides a teacher a salary equivalent to a certain step of the salary schedule. Once a teacher reaches the respective step on the salary schedule upon acquiring additional years of experience, the salary supplement is discontinued. The supplement is determined based on the following: • An eligible teacher who accepts employment at a low-performing school identified by the SBE pursuant to G.S. 115C-105.37 will receive a salary supplement equivalent to the difference between a teacher paid according to step 3 of the salary schedule and the teacher's current step. • An eligible teacher who is licensed in science, technology, engineering, mathematics, or special education will receive a salary supplement equivalent to the difference between a teacher paid according to step 2 of the salary schedule and the teacher's current step. • All other eligible teachers will receive a salary supplement equivalent to the difference between a teacher paid according to step 1 of the salary schedule and step 0. (S.L. 2017-212, Sec. 2.3, Budget & Agency Technical Corrections, amends this section to modify the edTPA score necessary for a new teacher to receive a Highly Qualified Teacher salary supplement.) A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.2 Title: SUPPORT HIGHLY QUALIFIED NC TEACHING GRADUATES Summary: Public Education Page F 43 Establishes the minimum monthly salary schedules and compensation policies for principals. Subsection (a) sets the minimum annual salary schedule for the 2017-18 fiscal year for principals. The schedule is based on 2 criteria: 1) School size as measured by the school’s ADM and 2) The growth scores achieved by the principal in 2 of the most recent 3 school years under G.S. 115C-83.15(c). Subsection (b) discontinues longevity payments to principals. Subsection (c) provides that any principal who was paid according to the principal salary schedule in FY 2016-17, and who would receive a pay reduction under the new schedule, is held harmless in FY 2017-18 and will maintain his or her salary with all applicable salary supplements received in FY 2016-17. Subsection (c1) states that the hold harmless provision contained in subsection (c) is only applicable in FY 2017-18. Subsection (d) makes conforming changes to G.S. 115C-105.25(b)(5c) regarding the amount of funds that a local education agency may transfer out of a principal or assistant principal position allotment based on changes made to both salary schedules. (S.L. 2017-212, Sec. 2.4, Budget & Agency Technical Corrections, amends this section to expand the hold harmless provision to principals paid on the teacher salary schedule in FY 2016- 17.) A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.3 PRINCIPAL Title: SALARY SCHEDULE Summary: Public Education Page F 44 Creates 2 new school-growth-based bonus program for principals. Subsection (a) provides principals who supervised a school with a growth ranking in the top 50% of the State with a bonus ranging from $1,000 to $5,000. FY 2017-18 Principal Bonus Schedule Statewide Growth Percentage Bonus: Top 5% : $5,000 Top 10%: $4,000 Top 15% : $3,000 Top 20% : $2,000 Top 50% : $1,000 In addition to the bonuses provided in subsection (a), subsection (b) provides principals who supervise a school that received a school growth score of "not meeting" or "met" expected growth in FY 2015-16, and subsequently receive a growth score of "exceeded" growth expectations in FY 2016-17 will receive an additional bonus of: • $10,000 for schools supervised in FY 2015-16 with a school performance grade of "D" or "F" as calculated by the SBE pursuant to G.S. 115C-83.15(d), or • $5,000 for all other schools. Subsection (f) sets forth the General Assembly's intent that the bonuses awarded under this section should be used to supplement principal compensation and not to supplant local funds. Subsection (g) directs the bonuses to be paid no later than October 31, 2017. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.4 Title: PRINCIPAL BONUSES Summary: Public Education Page F 45 Establishes the salary schedule for assistant principals for FY 2017-18. Subsection (a) ties assistant principal pay to the teacher “A” salary schedule plus 17%. Subsection (b) continues the advanced ($126/month) and doctoral ($253/month) degree salary supplements provided in addition to the salary schedule. Subsection (d) discontinues longevity payments to assistant principals. Subsection (e) provides that any assistant principal who was paid according to the assistant principal salary schedule in FY 2016-17, and who would receive a pay reduction under the new schedule, is held harmless in FY 2017-18 and will maintain his or her salary with all applicable salary supplements received in FY 2016-17. Subsection (f) expresses the General Assembly's intent to further increase assistant principal pay in FY 2018-19 by tying assistant principal pay to the teacher “A” salary schedule plus 19%. (S.L. 2017-212, Sec. 2.4, Budget & Agency Technical Corrections, amends this section to expand the hold harmless provision to assistant principals paid on the teacher salary schedule in FY 2016-17.) A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.5 ASSISTANT Title: PRINCIPAL SALARIES Summary: Public Education Page F 46 Sets the monthly 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 FY 2017-18. Salary ranges are $1,000 higher than in FY 2016-17. The following monthly salary ranges apply to public school assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 2017-18 Fiscal Year: 2017-18 Minimum Maximum School Administrator I : $3,525 $6,501 School Administrator II : $3,729 $6,888 School Administrator III : $3,951 $7,300 School Administrator IV : $4,104 $7,585 School Administrator V : $4,265 $7,887 School Administrator VI : $4,517 $8,356 School Administrator VII : $4,693 $8,688 The following monthly salary ranges apply to public school superintendents for the 2017-18 Fiscal Year: 2017-18 Minimum Maximum Superintendent I (Up to 2,500 ADM): $4,974 $9,209 Superintendent II (2,501-5,000 ADM): $5,273 $9,758 Superintendent III (5,001-10,000 ADM): $5,586 $10,344 Superintendent IV (10,001-25,000 ADM): $5,921 $10,965 Superintendent V (> 25,000 ADM) : $6,277 $11,626 Subsection (e) prohibits the transfer of State funds from other funding categories for salaries for public school central office administrators. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.6 Title: CENTRAL OFFICE SALARIES Summary: Increases the salaries of noncertified public school employees by $1,000 for FY 2017-18. Subsection (b) directs that in lieu of the $1,000 increase provided in subsection (a), $16.9 million of the funds appropriated for noncertified personnel compensation increases shall be used by local boards of education to increase average pay rates for bus drivers on an equitable basis. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.7 Title: NONCERTIFIED PERSONNEL SALARIES Summary: Public Education Page F 47 Amends G.S. 115C-316 to add a new requirement that LEAs establish a minimum salary schedule for occupational and physical therapists that provides experience-based salary increases with experience intervals being no greater than 5 years in duration. The State-funded salaries under the schedule must remain within the salary ranges adopted by the SBE. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.8 SCHOOL BOARDS CREATE MINIMUM SALARY SCHEDULE FOR OCCUPATIONAL THERAPISTS AND PHYSICAL THERAPISTS Title: Summary: Provides a nonrecurring bonus of $385 to teachers and instructional support personnel with 25 or more years of experience in FY 2017-18 and FY 2018-19. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.8A Title: VETERAN TEACHER BONUSES Summary: Amends S.L. 2016-94, 2016 Appropriations Act, to revise 3 teacher bonus programs: 1) The Third Grade Read to Achieve Teacher Bonuses, 2) Advanced Placement (AP)/ International Baccalaureate (IB)/ Cambridge AICE (Advanced Courses) Teacher Bonuses, and 3) CTE Teacher Bonuses. Subsections (a)-(b) revise several requirements for the Advanced Courses and CTE Teacher Bonuses. First, the sections remove the requirement that a teacher must be licensed to be eligible for the bonuses, but requires that the teacher must remain teaching in the same school. The sections also expand the bonuses to charter school teachers and removes the requirement that the teacher remain teaching an Advanced or CTE course the following school year to receive the bonus. The sections also increase the maximum allowable bonus from $2,000 to $3,500 per teacher. Subsection (c) revises several requirements for the Third Grade Read to Achieve Teacher Bonuses. The section removes the requirement that a teacher must be licensed to be eligible for the bonuses and the requirement that the teacher must remain teaching third grade. However, the teacher must remain teaching in the same school to be eligible for the bonus. (S.L 2017-197, Sec. 2.10, Budget Technical Corrections, amends this section to clarify that AP/IB/Cambridge AICE and CTE bonus provisions include 2017-2018 and 2018-2019 performance.) Section: 8.8B Title: REVISE TEACHER BONUS PROGRAMS Summary: Public Education Page F 48 Directs DPI to administer the Third Grade Read to Achieve Teacher Bonus Program (Program) to qualifying teachers who have an EVAAS student index score for 3rd grade reading from the previous school year. An eligible teacher is one who meets 1 or both of the following: •I s in the top 25% of teachers in the State according to the EVAAS student growth index score for 3rd grade reading from the previous school year, or •I s in the top 25% of teachers in the teacher’s respective LEA according to the EVAAS student growth index score for 3rd grade reading from the previous school year. A qualifying teacher is an eligible teacher who remains teaching in the same LEA at least from the time that the data was collected until the bonus is paid. Of the funds appropriated for the Program, $5 million must be allocated for bonuses to eligible teachers who are in the top 25% of teachers in the State. These funds must be distributed equally among the qualifying teachers. Of the funds appropriated for the Program, $5 million must be allocated for bonuses to eligible teachers who are in the top 25% of teachers in the teacher's respective LEA. A qualifying teacher may receive a bonus for being in the top 25% of the teachers in the State and being in the top 25% of teachers in the teacher's LEA, however, neither bonus may exceed $3,500 in any given school year and no teacher may receive more than seven thousand dollars $7,000 in total bonus compensation for any given school year. The bonus (or bonuses) awarded to a qualifying teacher is in addition to any regular wage or other bonus the teacher receives or is scheduled to receive. The SBE must study the impact of the bonuses awarded under this section and under the Third Grade Reading Teacher Performance Pilot Program on teacher performance and retention. The findings of the study, the distribution of statewide bonuses among LEAs, and the distribution of bonuses within LEAs among individual schools must be reported to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the JLEOC, and FRD by March 15 of each year, beginning in 2019. This section is effective July 1, 2017, and applies to bonuses awarded in January 2019 and January 2020 based on data from the 2017-2018 and 2018-2019 school years, respectively. (S.L 2017-197, Sec. 2.10, Budget Technical Corrections, amends this section to harmonize S.L. 2017-57 8.8C with Sec. 8.8B and to expand third grade bonuses to include 2018-2019 performance.) Section: 8.8C Title: THIRD GRADE READ TO ACHIEVE TEACHER BONUS PROGRAM FOR 2018-2019 Summary: Public Education Page F 49 Creates a new bonus program in FY 2017-18 to provide $2,150 bonuses to 4th and 5th grade reading teachers who have an EVAAS growth score in the top 25% statewide, or in the top 25% within his or her LEA. If a teacher’s growth scores are in the top 25% statewide and top 25% within his or her LEA, the teacher will receive both bonuses. Growth scores are based on performance from FY 2016-17 and bonuses are payable in January 2018. Subsection (c) instructs the SBE to study the effect of the bonuses awarded under this section on teacher performance and retention. The Board is directed to report its findings to the JLEOC and FRD by March 15, 2018. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.8D FOURTH AND FIFTH GRADE READING TEACHER BONUS PROGRAM Title: FOR 2017-2018 Summary: Creates a new bonus program in FY 2017-18 to provide $2,150 bonuses to 4th through 8th grade math teachers who have an EVAAS growth score in the top 25% statewide, or in the top 25% within his or her LEA. If a teacher’s growth scores are in the top 25% statewide and top 25% within his or her LEA, the teacher will receive both bonuses. Growth scores are based on performance from FY 2016-17 and bonuses are payable in January 2018. Subsection (c) instructs the SBE to study the effect of the bonuses awarded under this section on teacher performance and retention. The Board is directed to report its findings to the JLEOC and FRD by March 15, 2018. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.8E Title: FOURTH TO EIGHTH GRADE MATH TEACHER BONUS PROGRAM FOR 2017-2018 Summary: Directs the DPI to study the compensation of bus drivers and the challenges of recruiting and retaining bus drivers. The DPI shall report its findings to JLEOC and FRD by April 1, 2018. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.10 Title: SCHOOL BUS DRIVER COMPENSATION AND EMPLOYMENT STUDY Summary: Public Education Page F 50 Department: Public Education 2017 Session: HB 528 Amends S.L. 2017-57, Appropriations Act of 2017, to add a new section 7.14 to state that it is the intent of the General Assembly to use the data collected in accordance with the reporting requirements set forth in S.L. 2017‑9, Class Size Requirement Changes, to fund a new allotment for program enhancement teachers beginning with the 2018‑2019 Fiscal Year. Section: 2.1 Title: BUDGET CHANGE: PROGRAM ENHANCEMENT TEACHER FUNDS Summary: Amends S.L. 2017-57, Sec. 7.23A, Appropriations Act of 2017, by removing the requirement that the Cybersecurity and Risk Management expansion plan must include building security programs. Section: 2.2 BUDGET CHANGE: SCHOOL CONNECTIVITY INITIATIVE/CYBERSECURITY AND RISK MANAGEMENT Title: Summary: Amends S.L. 2017-57, Sec. 7.23I, 2017 Appropriations Act, to allow the State Superintendent of Public Instruction to remove the Associate Superintendent for any reason, not just in the event of incapacity to serve. Section: 2.3 Title: BUDGET CHANGE: B-3 INTERAGENCY COUNCIL Summary: Amends S.L. 2017-57, Sec. 7.23J, Appropriations Act of 2017, to clarify that the allotment transfer report must include information on the uses of funds transferred for the 2014-2015, 2015- 2016, and 2016-2017 fiscal years. Section: 2.4 Title: TECHNICAL CHANGE: ALLOTMENT TRANSFER REPORT Summary: Amends S.L. 2017-57, Sec.7.26, 2017 Appropriations Act, to specify that EVAAS data is used to calculate school growth rather than to calculate the overall performance scores and grades. Section: 2.5 Title: TECHNICAL CHANGE: SCHOOL PERFORMANCE GRADES/ESSA COMPLIANCE Summary: Amends S.L. 2017-57, Sec.7.27, Appropriations Act of 2017, to permit DPI to carry forward up to $5 million of funds appropriated in S.L. 2015-241, 2015 Appropriations Act, for the Excellent Public Schools Act through the end of the 2017-2018 Fiscal Year. These funds shall be allotted to LEAs for the purchase of computers or other electronic devices used for the administration of the formative and diagnostic reading assessments made available by the SBE pursuant to G.S. 115C‑174.11. Section: 2.6 Title: BUDGET CHANGE: READ TO ACHIEVE DIAGNOSTIC CHANGES Summary: Public Education Page F 51 Amends S.L. 2017-57, Appropriations Act of 2017, to add a new section 7.36 that adds Halifax County Schools to the Eastern NC STEM residential program, which was inadvertently omitted. Section: 2.7 TECHNICAL CHANGE: EASTERN NORTH CAROLINA STEM/HALIFAX Title: COUNTY SCHOOLS Summary: Amends S.L. 2017-57, Appropriations Act of 2017, to add a new section 7.37 that substitutes the elimination of a vacant position that was recently filled by DPI with an alternative vacant position and operating support in an equivalent amount. Secti
Object Description
Description
Title | Highlights, fiscal and budgetary actions |
Other Title | Overview, legislative session fiscal and budgetary actions; Overview, fiscal and budgetary actions; Annotated joint conference committee report on the continuation, expansion and capital budgets; Annotated committee report on the continuation, expansion and capital budgets; |
Date | 2017 |
Description | 2017 |
Digital Characteristics-A | 6.16 MB; 780 p. |
Digital Format | application/pdf |
Pres File Name-M | pubs_serial_779851487_annotated2017 |
Full Text | 2017 ANNOTATED CONFERENCE COMMITTEE REPORT ON THE BASE, EXPANSION AND CAPITAL BUDGETS Includes summaries of each section in S.L. 2017-57, Appropriations Act of 2017 (S.B. 257) and S.L. 2017-197, Budget Technical Corrections (H.B. 528); budget-related sections in S.L. 2017-212, Budget & Agency Technical Corrections (S.B. 582), and summaries of 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 2017-19 fiscal biennium as enacted in S.L. 2017-57, Appropriations Act of 2017 (S.B. 257) and amended by the S.L. 2017-197, Budget Technical Corrections (H.B. 528) and S.L. 2017-212, Budget & Agency Technical Corrections (S.B. 582). The Annotated Report includes all legislative adjustments to the Governor’s Recommended FY 2017-19 biennial base budget enacted during the 2017 Legislative Regular Session, including the legislative session that convened in October 2017. 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. The Fiscal Research Division is a nonpartisan, central staff agency that provides fiscal and policy information to the General Assembly. Table of Contents Staff Assignments 1 General Fund Availability Statement 3 Summary: General Fund Appropriations 4 Education Public Education F 1 Community Colleges F 54 UNC System F 69 Health and Human Services G 1 Agriculture and Natural and Economic Resources Agriculture and Consumer Services H 1 Labor H 19 Environment Quality H 27 Wildlife Resources Commission H 50 Commerce H 58 Commerce – State Aid H 83 Natural and Cultural Resources H 93 Natural and Cultural Resources – Roanoke Island Commission H 118 Justice and Public Safety Public Safety I 1 Justice I 27 Judicial – Indigent Defense I 38 Judicial I 46 General Government Treasurer J 1 Fire Rescue National Guard Pensions & LDD Benefits J 11 Military and Veterans Affairs J 18 Insurance J 28 State Board of Elections J 41 General Assembly J 49 Governor J 61 Governor Special Projects J 69 State Budget and Management J 76 State Budget and Management – Special Appropriations J 86 Revenue J 98 State Controller J 110 Administrative Hearings J 120 Administration J 129 Housing Finance Agency J 141 Lieutenant Governor J 150 Secretary of State J 158 Auditor J 166 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 9 Actual Tax Revenue Collected by Major Schedules AP 12 1 Staff Assignments Director Support Staff Digital Information Management Committees/Departments/Area Budget Development House and Senate Appropriations Committees Statewide Budget Issues Appropriations Bill Coordination Savings Reserve Account Budget Technical Corrections Bill Coordination Joint Commission on Governmental Operations Agriculture and Natural and Economic Resources Environmental Quality Agriculture and Consumer Services Commerce Commerce-State Aid Labor Natural and Cultural Resources Wildlife Resources Commission Economy and Taxation Revenue Estimates Finance Committees Revenue Laws Study Committee Economic Issues State Bond Proposals Education Public Instruction (K-12) Community Colleges Mark Trogdon Keshawna Roberts Chris Black Analysts Karen Hammonds-Blanks - House Brian Matteson - House Susan Jacobs - Senate Evan Rodewald - Senate Kristine Leggett, Team Leader William Childs Eric Moore Rodney Bizzell, Team Leader Barry Boardman Denise Harb Canada Brian Slivka Jonathan Tart Emma Turner Jennifer Hoffmann, Team Leader Lisa Fox University of North Carolina 2 Committee/Departments/Area Analysts General Government Administration Administrative Hearings Auditor 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 Justice and Public Safety Public Safety Judicial Judicial Indigent Defense Justice Statewide Salaries and Benefits Capital Information Technology Transportation Lisa Hollowell, Team Leader Cara Bridges Chris Hearley Denise Thomas, Team Leader Deborah Landry Steve Owen John Poteat, Team Leader Mark White David Vanderweide, Team Leader Timothy Dale Daniel Sater Amna Cameron, Team Leader Susan Tyler General Fund Availability Statement Fiscal Year Fiscal Year 2017-18 2018-19 1 Unappropriated Balance1 208,607,042 499,475,581 2 Disaster Recovery Appropriations (S.L. 2016-124) (200,928,370) 0 3 Transfer From Savings Reserve 100,928,370 0 4 Revised Unappropriated Balance 108,607,042 499,475,581 5 6 Over Collections FY 2016-172 494,132,774 0 7 Reversions FY 2016-172 356,639,853 0 8 Replenish Savings Reserve (S.L. 2016-124) (100,928,370) 0 9 Technical Adjustment to Unreserved Fund Balance3 1,000,000 10 Earmarkings of Year End Fund Balance: 11 Savings Reserve (263,000,000) 0 12 Repairs and Renovations (125,000,000) 0 13 Beginning Unreserved Fund Balance 471,451,299 499,475,581 14 15 Revenues Based on Existing Tax Structure 22,303,700,000 23,299,200,000 16 17 Non-tax Revenues 18 Investment Income 60,100,000 60,600,000 19 Judicial Fees 240,900,000 240,500,000 20 Disproportionate Share 164,700,000 149,600,000 21 Insurance 75,500,000 75,500,000 22 Master Settlement Agreement (MSA) 127,200,000 127,200,000 23 Other Non-Tax Revenues 180,600,000 182,900,000 24 Subtotal Non-tax Revenues 849,000,000 836,300,000 25 26 27 Total General Fund Availability 23,624,151,299 24,634,975,581 28 29 Adjustments to Availability: 2017 Session 30 Tax Law Changes (6,900,000) (521,800,000) 31 Transfer of Taxes from Short-Term Lease or Rental of Motor Vehicles to Highway Fund (10,000,000) (10,000,000) 32 Transfer to Savings Reserve (S.L. 2017-5) 0 (72,090,000) 33 Transfer Additional MSA funds to Golden L.E.A.F. (7,500,000) (7,500,000) 34 Transfer to Medicaid Transformation Reserve (75,000,000) 0 35 Transfer from Contingency and Emergency Fund 7,000,000 0 36 Transfer from Department of Insurance 3,655,405 4,026,728 37 Transfer from the Department of the State Treasurer (5,453,230) (5,434,773) 38 Subtotal Adjustments to Availability: 2017 Session (94,197,825) (612,798,045) 39 40 Revised General Fund Availability 23,529,953,474 24,022,177,536 41 42 Less General Fund Net Appropriations (23,030,477,893) (23,652,171,951) 43 44 Unappropriated Balance Remaining 499,475,581 370,005,585 Note: 1Technical adjustment to correct actual Unappropriated Balance; S.L. 2017-57, Appropriations Act of 2017, includes $208,607,416. General Fund Availability Statement 2June 30, 2017 actual over collections and reversions as reported by the Office of State Budget and Management and the Office of the State Controller; S.L. 2017-57, Appropriations Act of 2017, includes projected over collections of $580,600,000 and projected reversions of $271,000,000. 3Funds were transferred from the Statewide Carryforward Reserve to Unreserved Fund Balance. 3 Summary: General Fund Appropriations Revised Net Base Budget Recurring Nonrecurring Net FTE Appropriation 2017-18 Changes Changes Changes Changes 2017-18 Education Community Colleges 1,068,233,344 50,170,951 3,936,825 54,107,776 11.00 1,122,341,120 Public Education 8,739,220,986 289,316,731 17,865,905 307,182,636 (6.39) 9,046,403,622 University System 2,801,596,348 71,854,001 20,325,000 92,179,001 0.00 2,893,775,349 Total Education 12,609,050,678 411,341,683 42,127,730 453,469,413 4.61 13,062,520,091 Health and Human Services Central Management and Support 97,331,832 3,470,583 16,352,794 19,823,377 52.00 117,155,209 Aging and Adult Services 44,085,295 61,189 1,929,549 1,990,738 0.00 46,076,033 Blind and Deaf / Hard of Hearing Services 8,333,453 113,314 0 113,314 0.00 8,446,767 Child Development and Early Education 265,443,810 6,556,366 (3,571,675) 2,984,691 0.00 268,428,501 Health Service Regulation 17,446,527 967,100 360,180 1,327,280 7.00 18,773,807 Medical Assistance 3,684,796,055 52,381,899 (46,422,783) 5,959,116 0.00 3,690,755,171 Mental Health, Devel. Disabilities & Sub. Abuse Ser. 731,652,688 3,493,640 (38,878,009) (35,384,369) 15.00 696,268,319 NC Health Choice 43,446,936 1,497,347 (44,485,035) (42,987,688) 0.00 459,248 Health Benefits 9,671,582 63,469 0 63,469 0.00 9,735,051 Public Health 146,707,017 5,587,506 5,100,000 10,687,506 8.00 157,394,523 Social Services 186,595,053 5,754,553 8,623,519 14,378,072 0.00 200,973,125 Vocational Rehabilitation 38,402,154 431,634 0 431,634 0.00 38,833,788 Total Health and Human Services 5,273,912,402 80,378,600 (100,991,460) (20,612,860) 82.00 5,253,299,542 Justice and Public Safety Public Safety 1,935,266,736 59,488,820 7,944,490 67,433,310 (67.00) 2,002,700,046 Judicial Department 513,656,896 16,207,676 375,000 16,582,676 98.00 530,239,572 Judicial - Indigent Defense 120,156,248 1,147,842 0 1,147,842 0.00 121,304,090 Justice 54,793,859 (8,892,868) 1,810,303 (7,082,565) 5.00 47,711,294 Total Justice and Public Safety 2,623,873,739 67,951,470 10,129,793 78,081,263 36.00 2,701,955,002 Agriculture, Natural and Economic Resources Agriculture and Consumer Services 118,969,776 2,705,206 11,994,922 14,700,128 0.00 133,669,904 Commerce 134,414,931 (5,433,231) 11,768,032 6,334,801 (52.24) 140,749,732 Commerce - State Aid 15,955,810 200,000 4,145,000 4,345,000 0.00 20,300,810 Environmental Quality 77,854,912 (1,079,585) 1,395,000 315,415 (16.75) 78,170,327 Natural and Cultural Resources 166,273,456 6,264,180 12,975,713 19,239,893 12.00 185,513,349 Natural and Cultural Resources -- Roanoke Island 555,571 0 0 0 0.00 555,571 Labor 16,521,928 1,093,051 0 1,093,051 0.00 17,614,979 Wildlife Resources Commission 11,328,209 (261,222) 112,000 (149,222) 1.00 11,178,987 Total Agriculture, Natural and Economic Resources 541,874,593 3,488,399 42,390,667 45,879,066 (55.99) 587,753,659 Summary of General Fund Appropriations Fiscal Year 2017-18 2017 Legislative Session Legislative Changes 3 Revised Net Base Budget Recurring Nonrecurring Net FTE Appropriation 2017-18 Changes Changes Changes Changes 2017-18 Summary of General Fund Appropriations Fiscal Year 2017-18 2017 Legislative Session Legislative Changes General Government Administration 61,986,403 294,976 1,659,642 1,954,618 (10.29) 63,941,021 Auditor 13,379,738 248,470 200,000 448,470 0.00 13,828,208 General Assembly 63,476,017 1,755,684 743,912 2,499,596 0.00 65,975,613 Governor 5,794,114 (875,579) 456,442 (419,137) 0.00 5,374,977 Governor - Special Projects 2,001,118 (2,001,118) 0 (2,001,118) (0.65) 0 Housing Finance Agency 10,660,000 0 3,949,159 3,949,159 0.00 14,609,159 Insurance 39,790,684 8,952,528 95,000 9,047,528 88.24 48,838,212 Lieutenant Governor 703,302 60,406 30,000 90,406 1.00 793,708 Military and Veterans Affairs 8,199,025 692,333 2,566,000 3,258,333 0.00 11,457,358 Office of Administrative Hearings 5,354,257 557,147 51,076 608,223 6.29 5,962,480 Revenue 83,206,070 1,439,541 0 1,439,541 (5.00) 84,645,611 Secretary of State 12,751,423 352,888 0 352,888 0.00 13,104,311 State Board of Elections 6,621,306 2,977 0 2,977 (3.00) 6,624,283 State Budget and Management 7,960,470 220,076 0 220,076 0.00 8,180,546 State Budget and Management -- Special 2,000,000 0 10,763,881 10,763,881 0.00 12,763,881 State Controller 23,353,209 438,297 (2,917,638) (2,479,341) 0.00 20,873,868 Treasurer - Operations 10,266,826 (5,453,230) 0 (5,453,230) (3.00) 4,813,596 Fire Rescue National Guard Pensions & LDD Benefits 26,889,281 972,580 0 972,580 0.00 27,861,861 Total General Government 384,393,243 7,657,976 17,597,474 25,255,450 73.59 409,648,693 Department of Information Technology 51,279,650 (29,069) 250,000 220,931 (4.50) 51,500,581 Statewide Reserves and Debt Service Debt Service: Interest / Redemption 703,102,238 24,064,101 0 24,064,101 0.00 727,166,339 Federal Reimbursement 1,616,380 0 0 0 0.00 1,616,380 Subtotal Debt Service 704,718,618 24,064,101 0 24,064,101 0.00 728,782,719 4 Revised Net Base Budget Recurring Nonrecurring Net FTE Appropriation 2017-18 Changes Changes Changes Changes 2017-18 Summary of General Fund Appropriations Fiscal Year 2017-18 2017 Legislative Session Legislative Changes Statewide Reserves Contingency and Emergency Fund 5,000,000 (5,000,000) 0 (5,000,000) 0.00 0 Classification and Compensation System 0 3,900,000 0 3,900,000 0.00 3,900,000 Workers' Compensation Settlement Reserve 0 0 2,000,000 2,000,000 0.00 2,000,000 Salary Adjustment Fund 0 5,000,000 0 5,000,000 0.00 5,000,000 University System Enrollment Reserve 0 46,571,112 0 46,571,112 0.00 46,571,112 Pay Plan Reserve 0 0 9,688,494 9,688,494 0.00 9,688,494 Film and Entertainment Grant Fund 0 15,000,000 0 15,000,000 0.00 15,000,000 Pending Legislation (Supplemental Disaster Recovery Funds and Competitive Energy Solutions for N.C.) 500,000 0 99,650,000 99,650,000 0.00 100,150,000 Enterprise Resource Planning 0 0 3,000,000 3,000,000 0.00 3,000,000 Public Schools Average Daily Membership 0 0 0 0 0.00 0 NC Promise Tuition Grant 0 0 0 0 0.00 0 Subtotal Statewide Reserves 5,500,000 65,471,112 114,338,494 179,809,606 0.00 185,309,606 Total Reserves and Debt Service 710,218,618 89,535,213 114,338,494 203,873,707 0.00 914,092,325 Total General Fund for Operations 22,194,602,923 660,324,272 125,842,698 786,166,970 135.71 22,980,769,893 Capital Improvements Water Resources Development Projects 0 0 15,648,000 15,648,000 0.00 15,648,000 Capital Projects 0 0 34,060,000 34,060,000 0.00 34,060,000 Total Capital Improvements 0 0 49,708,000 49,708,000 0.00 49,708,000 Total General Fund Budget 22,194,602,923 660,324,272 175,550,698 835,874,970 135.71 23,030,477,893 5 Revised Net Base Budget Recurring Nonrecurring Net FTE Appropriation 2018-19 Changes Changes Changes Changes 2018-19 Education Community Colleges 1,068,233,344 67,474,501 6,050,000 73,524,501 11.00 1,141,757,845 Public Education 8,723,720,986 686,028,440 15,360,000 701,388,440 (6.39) 9,425,109,426 University System 2,851,602,607 113,018,172 3,154,253 116,172,425 0.00 2,967,775,032 Total Education 12,643,556,937 866,521,113 24,564,253 891,085,366 4.61 13,534,642,303 Health and Human Services Central Management and Support 97,331,832 10,507,204 14,930,369 25,437,573 74.00 122,769,405 Aging and Adult Services 44,085,295 94,261 969,549 1,063,810 0.00 45,149,105 Blind and Deaf / Hard of Hearing Services 8,333,453 173,628 0 173,628 0.00 8,507,081 Child Development and Early Education 265,443,810 13,183,202 (294,697) 12,888,505 0.00 278,332,315 Health Service Regulation 17,446,527 1,590,011 360,180 1,950,191 14.00 19,396,718 Medical Assistance 3,684,796,140 164,423,408 (47,538,336) 116,885,072 0.00 3,801,681,212 Mental Health, Devel. Disabilities & Sub. Abuse Ser. 731,652,688 14,933,724 (41,555,823) (26,622,099) 15.00 705,030,589 NC Health Choice 43,446,936 3,857,619 (46,908,146) (43,050,527) 0.00 396,409 Health Benefits 9,671,582 107,508 0 107,508 0.00 9,779,090 Public Health 146,713,455 6,171,763 2,100,000 8,271,763 8.00 154,985,218 Social Services 186,595,053 8,499,575 10,110,216 18,609,791 0.00 205,204,844 Vocational Rehabilitation 38,419,567 635,924 0 635,924 0.00 39,055,491 Total Health and Human Services 5,273,936,338 224,177,827 (107,826,688) 116,351,139 111.00 5,390,287,477 Justice and Public Safety Public Safety 1,935,343,754 80,358,047 4,890,236 85,248,283 (259.50) 2,020,592,037 Judicial Department 515,073,634 23,949,788 0 23,949,788 127.00 539,023,422 Judicial - Indigent Defense 120,508,461 1,771,898 0 1,771,898 0.00 122,280,359 Justice 54,796,127 (8,284,596) 0 (8,284,596) 5.00 46,511,531 Total Justice and Public Safety 2,625,721,976 97,795,137 4,890,236 102,685,373 (127.50) 2,728,407,349 Agriculture, Natural and Economic Resources Agriculture and Consumer Services 118,971,776 3,881,909 0 3,881,909 0.00 122,853,685 Commerce 134,414,931 (4,256,053) 0 (4,256,053) (52.24) 130,158,878 Commerce - State Aid 15,955,810 200,000 0 200,000 0.00 16,155,810 Environmental Quality 77,854,912 (842,198) 0 (842,198) (16.75) 77,012,714 Natural and Cultural Resources 166,277,458 7,949,966 250,000 8,199,966 12.00 174,477,424 Natural and Cultural Resources -- Roanoke Island 555,571 0 0 0 0.00 555,571 Labor 16,529,525 1,290,426 0 1,290,426 0.00 17,819,951 Wildlife Resources Commission 11,328,209 (484,668) 0 (484,668) 1.00 10,843,541 Total Agriculture, Natural and Economic Resources 541,888,192 7,739,382 250,000 7,989,382 (55.99) 549,877,574 Summary of General Fund Appropriations Fiscal Year 2018-19 2017 Legislative Session Legislative Changes 6 Revised Net Base Budget Recurring Nonrecurring Net FTE Appropriation 2018-19 Changes Changes Changes Changes 2018-19 Summary of General Fund Appropriations Fiscal Year 2018-19 2017 Legislative Session Legislative Changes General Government Administration 61,986,403 675,707 734,642 1,410,349 (10.29) 63,396,752 Auditor 13,379,738 400,793 0 400,793 0.00 13,780,531 General Assembly 63,476,017 2,496,990 0 2,496,990 0.00 65,973,007 Governor 5,794,114 (817,705) 0 (817,705) 0.00 4,976,409 Governor - Special Projects 2,001,118 (2,001,118) 0 (2,001,118) (0.65) 0 Housing Finance Agency 10,660,000 0 20,000,000 20,000,000 0.00 30,660,000 Insurance 39,792,849 8,521,851 0 8,521,851 88.24 48,314,700 Lieutenant Governor 703,302 68,195 0 68,195 1.00 771,497 Military and Veterans Affairs 8,199,025 761,718 0 761,718 0.00 8,960,743 Office of Administrative Hearings 5,354,257 656,430 0 656,430 6.29 6,010,687 Revenue 83,206,070 2,277,900 0 2,277,900 (5.00) 85,483,970 Secretary of State 12,812,071 502,872 0 502,872 0.00 13,314,943 State Board of Elections 6,621,306 65,308 0 65,308 (3.00) 6,686,614 State Budget and Management 7,960,470 294,774 0 294,774 0.00 8,255,244 State Budget and Management -- Special 2,000,000 0 0 0 0.00 2,000,000 State Controller 23,353,209 624,909 (734,642) (109,733) 0.00 23,243,476 Treasurer - Operations 10,266,826 (5,434,773) 0 (5,434,773) (3.00) 4,832,053 Fire Rescue National Guard Pensions & LDD Benefits 26,889,281 1,322,580 0 1,322,580 0.00 28,211,861 Total General Government 384,456,056 10,416,431 20,000,000 30,416,431 73.59 414,872,487 Department of Information Technology 51,279,650 367,195 0 367,195 (4.50) 51,646,845 Statewide Reserves and Debt Service Debt Service: Interest / Redemption 703,102,238 67,356,498 0 67,356,498 0.00 770,458,736 Federal Reimbursement 1,616,380 0 0 0 0.00 1,616,380 Subtotal Debt Service 704,718,618 67,356,498 0 67,356,498 0.00 772,075,116 7 Revised Net Base Budget Recurring Nonrecurring Net FTE Appropriation 2018-19 Changes Changes Changes Changes 2018-19 Summary of General Fund Appropriations Fiscal Year 2018-19 2017 Legislative Session Legislative Changes Statewide Reserves Contingency and Emergency Fund 5,000,000 (5,000,000) 0 (5,000,000) 0.00 0 Classification and Compensation System 0 7,800,000 0 7,800,000 0.00 7,800,000 Workers' Compensation Settlement Reserve 0 0 0 0 0.00 0 Salary Adjustment Fund 0 5,000,000 0 5,000,000 0.00 5,000,000 University System Enrollment Reserve 0 94,734,518 0 94,734,518 0.00 94,734,518 Pay Plan Reserve 0 0 0 0 0.00 0 Film and Entertainment Grant Fund 0 31,000,000 0 31,000,000 0.00 31,000,000 Pending Legislation 500,000 0 0 0 0.00 500,000 Enterprise Resource Planning 0 0 10,000,000 10,000,000 0.00 10,000,000 Public Schools Average Daily Membership 0 48,410,289 0 48,410,289 0.00 48,410,289 NC Promise Tuition Grant 0 11,000,000 0 11,000,000 0.00 11,000,000 Subtotal Statewide Reserves 5,500,000 192,944,807 10,000,000 202,944,807 0.00 208,444,807 Total Reserves and Debt Service 710,218,618 260,301,305 10,000,000 270,301,305 0.00 980,519,923 Total General Fund for Operations 22,231,057,767 1,467,318,390 (48,122,199) 1,419,196,191 1.21 23,650,253,958 Capital Improvements Water Resources Development Projects 0 0 0 0 0.00 0 Capital Projects 0 0 1,917,993 1,917,993 0.00 1,917,993 Total Capital Improvements 0 0 1,917,993 1,917,993 0.00 1,917,993 Total General Fund Budget 22,231,057,767 1,467,318,390 (46,204,206) 1,421,114,184 1.21 23,652,171,951 8 Education Section F FY 2017-18 FY 2018-19 Base Budget Requirements $13,023,846,639 $13,008,346,639 Receipts $4,284,625,653 $4,284,625,653 Net Appropriation $8,739,220,986 $8,723,720,986 Legislative Changes Requirements $377,769,868 $716,422,125 Receipts $70,587,232 $15,033,685 Net Appropriation $307,182,636 $701,388,440 Revised Budget Requirements $13,401,616,507 $13,724,768,764 Receipts $4,355,212,885 $4,299,659,338 Net Appropriation $9,046,403,622 $9,425,109,426 Base Budget 1,138.45 1,138.45 Legislative Changes (7.39) (7.39) Revised Budget 1,131.06 1,131.06 General Fund Budget General Fund FTE Public Education Budget Code 13510 Public Education Page F 1 Summary of General Fund Appropriations Fiscal Year 2017-18 2017 Legislative Session Public Education Budget Code 13510 Fund Code Fund Name Requirements Receipts Net Appropriation Requirements Receipts Net Appropriation Requirements Receipts Net Appropriation 1000 DPI - Executive and Administrative Functions 8,402,697 3,628,649 4,774,048 7,946,007 - 7,946,007 16,348,704 3,628,649 12,720,055 1021 DPI - Education Innovations - 21st Century Schools 1,273,180 375,498 897,682 - - - 1,273,180 375,498 897,682 1100 DPI - Assistance to Districts and Schools 27,587,380 22,216,974 5,370,406 (59,988) - (59,988) 27,527,392 22,216,974 5,310,418 1300 DPI - Financial and Business Services 3,752,551 836,474 2,916,077 18,888,958 - 18,888,958 22,641,509 836,474 21,805,035 1330 DPI - Student and School Support Services 17,071,036 12,688,176 4,382,860 (66,121) - (66,121) 17,004,915 12,688,176 4,316,739 1400 Office of Early Learning 77,343,346 69,704,768 7,638,578 (130,254) - (130,254) 77,213,092 69,704,768 7,508,324 1410 NC Center for the Advancement of Teaching 3,377,147 200 3,376,947 300,000 - 300,000 3,677,147 200 3,676,947 1450 K-3 Assessment 2,748,986 2,748,986 - - - - 2,748,986 2,748,986 - 1500 DPI - Technology Services 10,346,154 3,382,537 6,963,617 - - - 10,346,154 3,382,537 6,963,617 1600 DPI - Curriculum, Instruction, Accountability & Tech 60,253,921 48,133,468 12,120,453 254,794 - 254,794 60,508,715 48,133,468 12,375,247 1640 DPI - Educator Quality and Recruitment 20,864,862 19,441,994 1,422,868 336,204 - 336,204 21,201,066 19,441,994 1,759,072 1660 DPI - Special Populations 46,171,928 43,396,353 2,775,575 (98,998) - (98,998) 46,072,930 43,396,353 2,676,577 1800 K-12 Classroom Instruction -SPSF 7,377,797,048 615,835,919 6,761,961,129 32,268,930 18,664,579 13,604,351 7,410,065,978 634,500,498 6,775,565,480 1808 SPSF - Statewide System Ops and Maintenance 10,258,861 - 10,258,861 - - - 10,258,861 - 10,258,861 1810 SPSF - Local Education Agency - Administration 94,915,960 - 94,915,960 (7,000,000) - (7,000,000) 87,915,960 - 87,915,960 1811 Assistance to Districts and Schools - SPSF 2,063,612,732 2,063,612,732 - - - - 2,063,612,732 2,063,612,732 - 1821 SPSF - Ed Innovations - 21st Century Schools 33,285,254 - 33,285,254 (3,882,286) - (3,882,286) 29,402,968 - 29,402,968 1830 SPSF - Student and School Support Services 737,580,266 202,489,369 535,090,897 2,500,000 45,777,192 (43,277,192) 740,080,266 248,266,561 491,813,705 1840 SPSF - Teacher Quality and Recruitment 459,798,944 459,798,944 - - - - 459,798,944 459,798,944 - 1860 SPSF - Special Populations 1,696,820,130 694,936,512 1,001,883,618 3,014,247 - 3,014,247 1,699,834,377 694,936,512 1,004,897,865 1862 NC School for the Deaf 8,686,358 237,283 8,449,075 - - - 8,686,358 237,283 8,449,075 1863 Eastern NC School for the Deaf 8,100,571 242,584 7,857,987 1,000,000 - 1,000,000 9,100,571 242,584 8,857,987 1864 Governor Morehead School and Preschool 5,879,394 196,114 5,683,280 - - - 5,879,394 196,114 5,683,280 1870 SPSF - LEA - Supplemental Benefits 180,410,828 - 180,410,828 - - - 180,410,828 - 180,410,828 1900 Reserves and Transfers 58,056,139 20,722,119 37,334,020 3,345,000 6,145,461 (2,800,461) 61,401,139 26,867,580 34,533,559 1901 Pass-through Grants 9,450,966 - 9,450,966 2,165,000 - 2,165,000 11,615,966 - 11,615,966 Undesignated Items N/A Compensation Increase Reserve - - - 204,906,164 - 204,906,164 204,906,164 - 204,906,164 N/A State Retirement Contribution - - - 48,150,493 - 48,150,493 48,150,493 - 48,150,493 N/A State Health Plan Reserve - - - 32,107,889 - 32,107,889 32,107,889 - 32,107,889 N/A Enrollment Adjustment - - - 31,897,244 - 31,897,244 31,897,244 - 31,897,244 N/A Average Certified Personnel Salaries - - - 3,165,790 - 3,165,790 3,165,790 - 3,165,790 N/A Department of Public Instruction - - - (3,239,205) - (3,239,205) (3,239,205) - (3,239,205) Total $13,023,846,639 $4,284,625,653 $8,739,220,986 $377,769,868 $70,587,232 $307,182,636 $13,401,616,507 $4,355,212,885 $9,046,403,622 Base Budget Legislative Changes Revised Budget Public Education Page F 2 Summary of General Fund Appropriations Fiscal Year 2018-19 2017 Legislative Session Public Education Budget Code 13510 Fund Code Fund Name Requirements Receipts Net Appropriation Requirements Receipts Net Appropriation Requirements Receipts Net Appropriation 1000 DPI - Executive and Administrative Functions 8,402,697 3,628,649 4,774,048 2,146,007 - 2,146,007 10,548,704 3,628,649 6,920,055 1021 DPI - Education Innovations - 21st Century Schools 1,273,180 375,498 897,682 - - - 1,273,180 375,498 897,682 1100 DPI - Assistance to Districts and Schools 27,587,380 22,216,974 5,370,406 (59,988) - (59,988) 27,527,392 22,216,974 5,310,418 1300 DPI - Financial and Business Services 3,752,551 836,474 2,916,077 9,888,958 - 9,888,958 13,641,509 836,474 12,805,035 1330 DPI - Student and School Support Services 17,071,036 12,688,176 4,382,860 (66,121) - (66,121) 17,004,915 12,688,176 4,316,739 1400 Office of Early Learning 77,343,346 69,704,768 7,638,578 (130,254) - (130,254) 77,213,092 69,704,768 7,508,324 1410 NC Center for the Advancement of Teaching 3,377,147 200 3,376,947 300,000 - 300,000 3,677,147 200 3,676,947 1450 K-3 Assessment 2,748,986 2,748,986 - - - - 2,748,986 2,748,986 - 1500 DPI - Technology Services 10,346,154 3,382,537 6,963,617 - - - 10,346,154 3,382,537 6,963,617 1600 DPI - Curriculum, Instruction, Accountability & Tech 60,253,921 48,133,468 12,120,453 54,794 - 54,794 60,308,715 48,133,468 12,175,247 1640 DPI - Educator Quality and Recruitment 20,864,862 19,441,994 1,422,868 336,204 - 336,204 21,201,066 19,441,994 1,759,072 1660 DPI - Special Populations 46,171,928 43,396,353 2,775,575 (98,998) - (98,998) 46,072,930 43,396,353 2,676,577 1800 K-12 Classroom Instruction -SPSF 7,362,297,048 615,835,919 6,746,461,129 9,591,457 13,647,595 (4,056,138) 7,371,888,505 629,483,514 6,742,404,991 1808 SPSF - Statewide System Ops and Maintenance 10,258,861 - 10,258,861 - - - 10,258,861 - 10,258,861 1810 SPSF - Local Education Agency - Administration 94,915,960 - 94,915,960 (11,000,000) - (11,000,000) 83,915,960 - 83,915,960 1811 Assistance to Districts and Schools - SPSF 2,063,612,732 2,063,612,732 - - - - 2,063,612,732 2,063,612,732 - 1821 SPSF - Ed Innovations - 21st Century Schools 33,285,254 - 33,285,254 (4,445,948) - (4,445,948) 28,839,306 - 28,839,306 1830 SPSF - Student and School Support Services 737,580,266 202,489,369 535,090,897 - 1,386,090 (1,386,090) 737,580,266 203,875,459 533,704,807 1840 SPSF - Teacher Quality and Recruitment 459,798,944 459,798,944 - - - - 459,798,944 459,798,944 - 1860 SPSF - Special Populations 1,696,820,130 694,936,512 1,001,883,618 3,014,247 - 3,014,247 1,699,834,377 694,936,512 1,004,897,865 1862 NC School for the Deaf 8,686,358 237,283 8,449,075 - - - 8,686,358 237,283 8,449,075 1863 Eastern NC School for the Deaf 8,100,571 242,584 7,857,987 - - - 8,100,571 242,584 7,857,987 1864 Governor Morehead School and Preschool 5,879,394 196,114 5,683,280 - - - 5,879,394 196,114 5,683,280 1870 SPSF - LEA - Supplemental Benefits 180,410,828 - 180,410,828 - - - 180,410,828 - 180,410,828 1900 Reserves and Transfers 58,056,139 20,722,119 37,334,020 2,565,000 - 2,565,000 60,621,139 20,722,119 39,899,020 1901 Pass-through Grants 9,450,966 - 9,450,966 - - - 9,450,966 - 9,450,966 Undesignated Items N/A Compensation Increase Reserve - - - 481,434,198 - 481,434,198 481,434,198 - 481,434,198 N/A State Retirement Contribution - - - 126,996,925 - 126,996,925 126,996,925 - 126,996,925 N/A State Health Plan Reserve - - - 68,038,146 - 68,038,146 68,038,146 - 68,038,146 N/A Enrollment Adjustment - - - 31,897,244 - 31,897,244 31,897,244 - 31,897,244 N/A Average Certified Personnel Salaries - - - 3,258,025 - 3,258,025 3,258,025 - 3,258,025 N/A Department of Public Instruction - - - (7,297,771) - (7,297,771) (7,297,771) - (7,297,771) Total $13,008,346,639 $4,284,625,653 $8,723,720,986 $716,422,125 $15,033,685 $701,388,440 $13,724,768,764 $4,299,659,338 $9,425,109,426 Base Budget Legislative Changes Revised Budget Public Education Page F 3 Summary of General Fund Total Requirements FTE Fiscal Year 2017-18 2017 Legislative Session Base Revised Fund Code Fund Name Total Requirements Net Appropriation Receipts Total Requirements 1000 DPI - Executive and Administrative Functions 51.99 (3.35) (1.00) 47.64 1021 DPI - Education Innovations - 21st Century Schools 26.00 - - 26.00 1100 DPI - Assistance to Districts and Schools 70.59 (0.40) - 70.19 1300 DPI - Financial and Business Services 39.00 (1.00) - 38.00 1330 DPI - Student and School Support Services 103.73 (0.89) - 102.84 1400 Office of Early Learning 83.75 (0.75) - 83.00 1410 NC Center for the Advancement of Teaching 40.75 - - 40.75 1450 K-3 Assessment 12.00 - - 12.00 1500 DPI - Technology Services 82.00 - - 82.00 1600 DPI - Curriculum, Instruction, Accountability & Tech 166.30 - - 166.30 1640 DPI - Educator Quality and Recruitment 44.89 1.00 - 45.89 1660 DPI - Special Populations 73.70 (1.00) - 72.70 1800 K-12 Classroom Instruction -SPSF - - - - 1808 SPSF - Statewide System Ops and Maintenance - - - - 1810 SPSF - Local Education Agency - Administration - - - - 1811 Assistance to Districts and Schools - SPSF - - - - 1821 SPSF - Ed Innovations - 21st Century Schools - - - - 1830 SPSF - Student and School Support Services - - - - 1840 SPSF - Teacher Quality and Recruitment - - - - 1860 SPSF - Special Populations - - - - 1862 NC School for the Deaf 137.33 - - 137.33 1863 Eastern NC School for the Deaf 125.33 - - 125.33 1864 Governor Morehead School and Preschool 81.08 - - 81.08 1870 SPSF - LEA - Supplemental Benefits - - - - 1900 Reserves and Transfers - - - - 1901 Pass-through Grants - - - - Total FTE 1,138.45 (6.39) (1.00) 1,131.06 Public Education Budget Code 13510 Legislative Changes Public Education Page F 4 Summary of General Fund Total Requirements FTE Fiscal Year 2018-19 2017 Legislative Session Base Revised Fund Code Fund Name Total Requirements Net Appropriation Receipts Total Requirements 1000 DPI - Executive and Administrative Functions 51.99 (3.35) (1.00) 47.64 1021 DPI - Education Innovations - 21st Century Schools 26.00 - - 26.00 1100 DPI - Assistance to Districts and Schools 70.59 (0.40) - 70.19 1300 DPI - Financial and Business Services 39.00 (1.00) - 38.00 1330 DPI - Student and School Support Services 103.73 (0.89) - 102.84 1400 Office of Early Learning 83.75 (0.75) - 83.00 1410 NC Center for the Advancement of Teaching 40.75 - - 40.75 1450 K-3 Assessment 12.00 - - 12.00 1500 DPI - Technology Services 82.00 - - 82.00 1600 DPI - Curriculum, Instruction, Accountability & Tech 166.30 - - 166.30 1640 DPI - Educator Quality and Recruitment 44.89 1.00 - 45.89 1660 DPI - Special Populations 73.70 (1.00) - 72.70 1800 K-12 Classroom Instruction -SPSF - - - - 1808 SPSF - Statewide System Ops and Maintenance - - - - 1810 SPSF - Local Education Agency - Administration - - - - 1811 Assistance to Districts and Schools - SPSF - - - - 1821 SPSF - Ed Innovations - 21st Century Schools - - - - 1830 SPSF - Student and School Support Services - - - - 1840 SPSF - Teacher Quality and Recruitment - - - - 1860 SPSF - Special Populations - - - - 1862 NC School for the Deaf 137.33 - - 137.33 1863 Eastern NC School for the Deaf 125.33 - - 125.33 1864 Governor Morehead School and Preschool 81.08 - - 81.08 1870 SPSF - LEA - Supplemental Benefits - - - - 1900 Reserves and Transfers - - - - 1901 Pass-through Grants - - - - Total FTE 1,138.45 (6.39) (1.00) 1,131.06 Public Education Budget Code 13510 Legislative Changes Public Education Page F 5 Public Education Recommended Base Budget Legislative Changes $8,739,220,986 $8,723,720,986 GENERAL FUND 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 A. Reserve for Salaries and Benefits 1 Compensation Increase Reserve - Teachers $101,732,591 R $372,639,349 R Provides funding for salary increases provided to educators paid in accordance with the teacher salary schedule. Total revised net appropriations for State and local employee salaries are $12 billion in FY 2017-18 and $12.2 billion in FY 2018-19. (S.L. 2017-57, Secs. 8.1 and 35.17) Fund Code: N/A $5,000,000 NR $5,000,000 NR 2 Veteran Teacher Bonuses Provides funding for a $385 bonus for teachers with 25 or more years of experience in each year of the biennium. The revised net appropriation for the veteran teacher bonuses is $5.0 million in each year of the biennium. (S.L. 2017-57, Sec. 8.8A) Fund Code: N/A 3 Teacher Bonuses $14,900,000 R Provides funds to make 3 Bonus Programs recurring. These bonus programs include the Third Grade Read to Achieve Teacher Bonuses, Advanced Placement/International Baccalaureate/Cambridge AICE Teacher Bonuses, and the Career and Technical Education Teacher Bonuses. The revised net appropriation for these three bonuses is $15.5 million in FY 2017-18 and $14.9 million in FY 2018-19. (S.L. 2017-57, Secs. 8.8B and 8.8C) Fund Code: 1800 Public Education Page F 6 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 $25,341,188 NR 4 Math and Reading Performance Bonus Program Provides funding to support a math performance bonus program for teachers in grades 4 through 8 and a reading bonus program for teachers in grades 4 and 5. The programs will provide $2,150 bonuses to the top 25% of teachers Statewide and $2,150 bonuses to the top 25% of teachers within each Local Education Agency (LEA) based on Education Value-Added Assessment System (EVAAS) scores. The revised net appropriation for this program is $25.3 million in FY 2017-18 only. (S.L. 2017-57, Secs. 8.8D and 8.8E) Fund Code: 1800 5 Salary Supplements for Highly Qualified Teacher Graduates $700,000 R $700,000 R Provides funds for highly qualified graduates of an approved educator preparation program to receive salary supplements based on the teacher “A” salary schedule. These graduates receive a salary supplement if they are teaching in a low performing school, are licensed in a special education or a Science, Technology, Engineering, and Mathematics (STEM) field, or are considered a highly qualified graduate. The revised net appropriation for this program is $700,000 in each year of the biennium. (S.L. 2017-57, Sec. 8.2) Fund Code: 1800 6 Compensation Increase Reserve - School Based Administrators $35,364,775 R $40,587,664 R Provides funding for salary increases provided to principals and assistant principals. Total revised net appropriations for State and local employee salaries are $12 billion in FY 2017-18 and $12.2 billion in FY 2018-19. (S.L. 2017-57, Secs. 8.3, 8.4, and 8.5) Fund Code: N/A 7 Compensation Increase Reserve - LEA Employees $61,537,448 R $61,537,448 R Provides funding for an across-the-board salary increase of $1,000. Total revised net appropriations for State and local employee salaries are $12 billion in FY 2017-18 and $12.2 billion in FY 2018-19. (S.L. 2017-57, Secs. 8.6 and 8.7) Fund Code: N/A Public Education Page F 7 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 8 Compensation Increase Reserve - DPI $997,153 R $997,153 R Provides funding for an across-the-board salary increase of $1,000. Total revised net appropriations for State and local employee salaries are $12 billion in FY 2017-18 and $12.2 billion in FY 2018-19. (S.L. 2017-57, Secs. 35.1, 35.2, 35.11, and 35.12) Fund Code: N/A 9 Compensation Increase Reserve - State Agency $274,197 R $672,584 R Teachers/School Based Administrators Provides funding for salary increases provided to educators paid in accordance with the teacher salary schedule. Total revised net appropriations for State and local employee salaries are $12 billion in FY 2017-18 and $12.2 billion in FY 2018-19. (S.L. 2017-57, Secs. 8.1, 35.10, and 35.17) Fund Code: N/A 10 State Retirement Contributions - School District Personnel $47,790,931 R $126,048,580 R Increases the State’s contribution for members of the Teachers’ and State Employees’ Retirement System (TSERS) supported by the General Fund for the 2017-19 fiscal biennium to fund the actuarially determined contribution and increased retiree medical premiums, provide a 1.0% cost-of-living adjustment to retirees, and provide additional benefits to probation/parole officers. The revised net General Fund appropriation for TSERS statewide is $1.7 billion in FY 2017-18 and $1.9 billion in FY 2018-19, an increase of $81.3 million for FY 2017-18 and $214.3 million for FY 2018-19. (S.L. 2017-57, Secs. 35.19, 35.19A, and 35.19B) Fund Code: N/A 11 State Retirement Contributions - DPI $359,562 R $948,345 R Increases the State’s contribution for members of the Teachers’ and State Employees’ Retirement System (TSERS) supported by the General Fund for the 2017-19 fiscal biennium to fund the actuarially determined contribution and increased retiree medical premiums, provide a 1.0% cost-of-living adjustment to retirees, and provide additional benefits to probation/parole officers. The revised net General Fund appropriation for TSERS statewide is $1.7 billion in FY 2017-18 and $1.9 billion in FY 2018-19, an increase of $81.3 million for FY 2017-18 and $214.3 million for FY 2018-19. (S.L. 2017-57, Secs. 35.19, 35.19A, and 35.19B) Fund Code: N/A Public Education Page F 8 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 12 State Health Plan - School District Personnel $31,939,125 R $67,680,526 R Provides additional funding to continue health benefit coverage for enrolled active employees supported by the General Fund for the 2017-19 fiscal biennium. The revised net General Fund appropriation for enrolled active employees statewide is $1.5 billion in FY 2017-18 and FY 2018-19, an increase of $52.2 million for FY 2017-18 and $110.7 million for FY 2018-19. (S.L. 2017-57, Sec. 35.19) Fund Code: N/A 13 State Health Plan - DPI $168,764 R $357,620 R Provides additional funding to continue health benefit coverage for enrolled active employees supported by the General Fund for the 2017-19 fiscal biennium. The revised net General Fund appropriation for enrolled active employees statewide is $1.5 billion in FY 2017-18 and FY 2018-19, an increase of $52.2 million for FY 2017-18 and $110.7 million for FY 2018-19. (S.L. 2017-57, Sec. 35.19) Fund Code: N/A B. Technical Adjustments 14 Average Daily Membership (ADM) $31,897,244 R $31,897,244 R Revises allotted FY 2017-18 ADM to reflect 9,120 more students than are included in the FY 2016-17 allotted ADM. This revision includes adjustments to multiple position, dollar, and categorical allotments. Funding associated with projected FY 2018-19 ADM growth is reserved in the "Reserves, Debt Service, and Adjustments" section of this report. (S.B. 430/H.B. 537) Fund Code: N/A 15 Average Certified Personnel Salaries $3,165,790 R $3,258,025 R Revises funding for certified personnel salaries based on actual salary data from December 2016. The adjustment does not increase any salary paid to certified personnel, nor does it increase the number of guaranteed State-funded teachers, administrators, or instructional support personnel. (S.B. 430/H.B. 537) Fund Code: N/A Public Education Page F 9 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 16 Children with Disabilities Headcount ($3,305,661) R ($3,305,661) R Adjusts funding 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, 2017 headcount and does not modify per-student funding. Fund Code: 1860 17 Noninstructional Support ($11,622,037) R ($13,647,595) R Budgets additional Lottery receipts for the noninstructional support personnel allotment. Total requirements for this allotment after the ADM adjustment are $383,888,897 in FY 2017-18 and $385,914,555 in FY 2018-19. This allotment will now be fully receipt supported. The revised net appropriation for noninstructional support personnel is $0. (S.L. 2017-57, Sec. 5.3) Fund Code: 1800 ($1,386,090) ($41,891,102) R ($1,386,090) R NR 18 Transportation Adjusts the budget to reflect additional Lottery receipts for the transportation allotment. Total requirements for this allotment remain the same at $459,268,071 in each year of the biennium. The revised net appropriation for the transportation allotment is $416 million in FY 2017-18 and $457.9 million in FY 2018-19. (S.L. 2017-57, Sec. 5.3) Fund Code: 1830 C. State Public School Fund $11,285,000 NR 19 Textbooks and Digital Materials Fund Code: 1800 Provides an additional $11,885,160 in nonrecurring funds for the textbooks and digital materials allotment. Increased funding for this item includes receipts from the cash balances transferred from two special funds, the Literary Fund ($259,833) and the Education Fund ($340,327). School districts may utilize funds from this allotment to purchase digital content made available by the Department of Public Instruction (DPI) through its Home Base system. The revised net appropriation for textbooks and digital materials is $66.8 million in FY 2017-18 and $55.5 million in FY 2018-19. (S.B. 430/H.B. 537, H.B. 495; S.L. 2017-57, Sec. 7.13) (This item also appears in the Public Education special funds in the Education section. See page F 25.) Public Education Page F 10 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 20 Children with Disabilities $6,319,908 R $6,319,908 R Provides funds to support an increase in the funding cap for the children with disabilities allotment from 12.5% to 12.75%. A school district will receive funds for each child identified with disabilities, up to 12.75% of the school district's ADM. The revised net appropriation for school aged children with disabilities is $744 million in FY 2017-18 and $751 million in FY 2018-19. (S.L. 2017-57, Sec. 7.1) Fund Code: 1860 21 Digital Learning Plan $2,420,000 R $2,420,000 R Provides additional funding for the digital learning plan (DLP). Funds will support DLP management, school and district leadership development, teacher professional development, and cybersecurity and risk management services. The revised net appropriation for the digital learning plan is $6.4 million in each year of the biennium. (S.B. 430/H.B. 537; S.L. 2017-57, Secs. 7.23A and 7.23K) Fund Code: 1800 $2,000,000 NR 22 Stabilization Funds for Wayne County Schools: Seymour Johnson Airforce Base Provides $2.0 million in stabilization funds to support the operation of public schools in Wayne County, the location of Seymour Johnson Air Force Base. The revised net appropriation for stabilization funds for Wayne County Public Schools is $2.0 million in FY 2017-18 only. Fund Code: 1800 23 Geographically Isolated Schools $506,064 R $506,064 R Increases funding for geographically isolated schools to include schools that newly qualify for funding. A school designated as geographically isolated receives one additional classroom teacher position per grade in the isolated school. A school is considered geographically isolated if consolidation is not feasible and it is either located in a school district in which the ADM is less than 1.5 per square mile or it is located in a school district in a county containing more than 150,000 acres of National Forest owned by the federal government and managed by the United States Forest Service. The revised net appropriation for geographically isolated schools is $829,209 in each year of the biennium. (S.B. 15/H.B. 23; S.L. 2017-57, Sec. 7.19) Fund Code: 1800 Public Education Page F 11 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 24 Transportation Grant Program Provides funds to establish a Charter School Transportation Grant Pilot Program for one year. This program is supported by a $2.5 million transfer from the North Carolina Department of Transportation in FY 2017-18. The total requirements for the program are $2.5 million in FY 2017-18 only. (S.B. 662; H.B. 644; S.L. 2017-57, Sec. 7.35) (This item also appears in the Highway Fund in the Transportation section. See page K 31, item 49.) Fund Code: 1830 $1,000,000 NR 25 Eastern NC School for the Deaf Provides nonrecurring funding to the Eastern NC School for the Deaf for one-time major vehicle and equipment purchases, an increase for maintenance and repairs including information technology updates, and an upgrade to the maintenance shop including a mechanic pit. The revised net appropriation to the Eastern NC School for the Deaf is $8.9 million in FY 2017-18 and $7.9 million in FY 2018-19. (S.B. 430/H.B. 537) Fund Code: 1863 26 Central Office Allotment ($7,000,000) R ($11,000,000) R Reduces State funding for the central office administration allotment by 7.4% in FY 2017-18 and 11.6% in FY 2018-19. The revised net appropriation for the central office administration allotment is $87.9 million in FY 2017-18 and $83.9 million in FY 2018-19. Fund Code: 1810 27 Analysis of Student Work ($325,000) R ($325,000) R Eliminates funding associated with the Analysis of Student Work (ASW) process. The process is used as the student growth measure for teachers of courses and subjects such as Arts Education, Healthful Living, World Languages, and International Baccalaureate and Advanced Placement courses. The revised net appropriation for testing, where funding for the ASW process is budgeted, is $8.8 million in each year of the biennium. (S.L. 2017-57, Sec. 7.23E) Fund Code: 1800 Public Education Page F 12 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 ($2,246,612) $563,662 R ($2,246,612) R NR 28 Cooperative Innovative High Schools Reduces funding for Cooperative Innovative High Schools (CIHS), including virtual CIHSs, due to a revised allocation methodology that provides funds to all CIHSs approved for operation in FY 2017-18. The revised net appropriation for these schools is $27.5 million in 2017-18 and $27.0 million in 2018-19. (S.L. 2017-57, Sec. 7.22) Fund Code: 1821 ($6,442,382) NR 29 State Public School Fund Adjusts the budget to reflect additional receipts from the Civil Penalty and Forfeiture Fund to the State Public School Fund (SPSF) and reduces the net General Fund appropriation by the same amount. Total requirements for the SPSF are not affected by this shift. The revised net appropriation for the SPSF in fund code 1800 is $6.8 billion in each year of the biennium. (S.L. 2017-57, Sec. 5.4) Fund Code: 1800 ($2,000,000) NR 30 Low Wealth Aligns budgeted funds to planned expenditures for the Low Wealth allotment on a one time basis. School districts eligible for funding will continue to receive a dollar allotment determined by the Low Wealth funding formula. The revised net appropriation for this allotment is $220.4 million in FY 2017-19 and $222.4 in FY 2018-19. Fund Code: 1800 31 Benefits Adjustment ($5,000,000) R ($5,000,000) R Adjusts the Social Security benefit line-item budgeted in the State Public School Fund to more closely align budgeted funds to actual expenditures. The revised net appropriation for Social Security benefits in fund code 1800 is $312.1 million in each year of the biennium. Fund Code: 1800 32 Small Specialty High Schools ($2,199,336) R ($2,199,336) R Aligns budgeted funds to actual expenditures for small specialty high schools. The revised net appropriation for these schools is $1.8 million in each year of the biennium and fully funds all participating high schools. Fund Code: 1821 Public Education Page F 13 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 33 Small County Supplemental Funding ($3,618,482) R ($3,969,607) R Aligns budgeted funds to actual expenditures for the small county supplemental allotment. School districts eligible for funding will continue to receive a dollar allotment according to the schedule created in S.L. 2014-100. The revised net appropriation for this allotment is $45.6 million in FY 2017-18 and $45.3 million in FY 2018-19 and fully funds all participating school districts. Fund Code: 1800 D. Department of Public Instruction $19,000,000 NR $10,000,000 NR 34 Business System Modernization Provides funding for the implementation of the School Business System Modernization Plan. S.L. 2016-94 directed the State Board of Education to develop a plan to modernize systems used by DPI. The plan includes an Enterprise Resource Planning (ERP) system for integrated payroll and human resources information, an integrated State level licensure system, and reporting of financial information for increased transparency and analytics. The revised net appropriation for Business System Modernization is $19 million in FY 2017-18 and $10 million in FY 2018-19. (S.L. 2017-57, Sec. 7.16) Fund Code: 1300 $2,001,118 $2,001,118 0.65 0.65 35 Education and Workforce Innovation Commission R R Provides funding to establish the budget for the transfer of the Education and Workforce Innovation Commission from the Office of Governor to DPI. The revised net appropriation for the Commission is $6.2 million in FY 2017-18 and $2.7 million in FY 2018-19. (H.B. 450; S.L. 2017-57, Sec. 7.23G) (This item also appears in the General Government section. See page J 74, item 54.) Fund Code: 1000 $700,000 $3,500,000 R $700,000 R NR 36 Sixth and Seventh Grade Career and Technical Education Grant Program Provides funds for the Sixth and Seventh Grade Career and Technical Education (CTE) Grade Expansion Grant Program, which will be administered by the Education and Workforce Innovation Commission. This program awards competitive grants to school districts over a seven-year grant period to expand CTE programs to sixth and seventh grade students. The revised net appropriation for this program is $4.2 million in FY 2017-18 and $700,000 in FY 2018-19. (H.B. 450; S.L. 2017-57, Sec. 7.23F) Fund Code: 1000 Public Education Page F 14 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 $250,000 $250,000 2.00 2.00 37 Early Childhood Education R R Provides funds, and 2 positions, to support the newly created B-3 Inter-Agency Council to focus on the developmental and educational needs of children from birth to age 8. The revised net appropriation for fund code 1400 is $7.5 million in each year of the biennium. (H.B. 556; S.L. 2017-57, Sec. 7.23I) Fund Code: 1400 38 North Carolina Center for the Advancement of Teaching $300,000 R $300,000 R Provides additional funds to DPI for the North Carolina Center for the Advancement of Teaching (NCCAT). The revised net appropriation for NCCAT is $3.7 million in each year of the biennium. Fund Code: 1410 $200,000 $200,000 2.00 2.00 39 Future Ready Students R R Provides funds to support 2 regional positions in the Division of Career and Technical Education. These positions will assist school districts in developing business advisory councils, work-based learning opportunities, and career awareness programs. The revised net appropriation for fund code 1600 is $12.4 million in FY 2017-18 and $12.2 million in FY 2018-19. (H.B. 450; S.L. 2017-57, Sec. 7.23H) Fund Code: 1600 $200,000 NR 40 Reading Improvement Commission Provides funds for the Reading Improvement Commission. This Commission will review and make recommendations on best practices for public schools in grades 4 through 12 to ensure students complete high school with the literacy skills necessary for career and college readiness. The revised net appropriation for the Commission is $200,000 in FY 2017-18. (H.B. 751; S.L. 2017-57, Sec. 7.26B) Fund Code: 1600 $200,000 $200,000 2.00 2.00 41 Professional Educator Preparation R R Provides funds for 2 positions to support educator preparation approval and evaluation at DPI. The revised net appropriation for these positions is $200,000 in each year of the biennium. Fund Code: 1640 Public Education Page F 15 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 42 Licensure Fee Reimbursement for New Teachers $245,000 R $245,000 R Provides funds to DPI to reimburse the initial teacher licensure application fee for first time applicants. An applicant must be a graduate of an approved educator preparation program in North Carolina and must have successfully earned an initial teaching license in North Carolina. The revised net appropriation for this program is $245,000 in each year of the biennium. (S.B. 517; S.L. 2017-57, Sec. 7.28) Fund Code: 1640 43 Positions for State Superintendent $700,000 R $700,000 R Provides funding to the Office of the State Superintendent to support up to 10 positions that will be exempt from the State Human Resource Act and report directly to the State Superintendent. The revised net appropriation for the Office of the State Superintendent after this adjustment is $1.8 million in FY 2017-18 and $1.8 million in FY 2018-19. (H.B. 838; S.L. 2017-57, Sec. 7.10) Fund Code: 1000 $300,000 NR 44 Legal Fees Provides funds to the Office of State Superintendent for legal fees for active lawsuits. The revised net appropriation for legal fees for this purpose is $300,000 in FY 2017-18 only. Fund Code: 1000 $1,000,000 ($1,000,000) R NR 45 Audit of the Department of Public Instruction Provides funds to the Office of State Superintendent to contract with an objective third party organization to conduct a functional and business process audit of DPI. This item also reduces funding to DPI's operating budget beginning in FY 2018-19 to reflect anticipated savings resulting from the audit recommendations. (S.L. 2017-57, Sec. 7.23L) Fund Code: 1000 46 Management Flexibility Reduction ($3,239,205) R ($7,297,771) R Reduces DPI operating funds by 6.2% in FY 2017-18 and 13.9% in FY 2018-19. The revised net appropriation to DPI after this reduction is $49.4 million in FY 2017-18 and $45.4 million in FY 2018-19. (S.L. 2017-57, Sec.7.7) Fund Code: N/A Public Education Page F 16 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 ($140,000) ($140,000) -2.00 -2.00 47 Reserve Funds R R Removes recurring funding from the base budget that was provided to implement Senate Bill 867, 2016 Session of the 2015 Regular Session. This legislation was never ratified by the General Assembly. (S.B. 430/H.B. 537) Fund Code: 1000 ($188,030) ($188,030) -1.00 -1.00 48 State Board of Education R R Reduces funding to the State Board of Education, including the elimination of the following filled position: 60009490 - Associate State School Superintendent (1.00) The revised net appropriation for the State Board of Education is $640,356 in each year of the biennium. Fund Code: 1000 ($177,081) ($177,081) -1.00 -1.00 49 Position Eliminations R R Eliminates the following vacant position in DPI: 60093688 - Chief Performance Officer (1.00) This item also eliminates a filled Research Associate receipt-supported position (60009919) at DPI. The revised net appropriation for fund code 1000 is $4.6 million in each year of the biennium. Fund Code: 1000 ($59,988) ($59,988) -0.40 -0.40 50 Position Elimination R R Eliminates the following part-time vacant position in DPI: 60094937 - Education Program Director (0.40) The revised net appropriation in fund code 1100 is $5.3 million in each year of the biennium. Fund Code: 1100 Public Education Page F 17 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 ($111,042) ($111,042) -1.00 -1.00 51 Position Elimination R R Eliminates the following vacant position in DPI: 60009676 - Education Consultant III (1.00) The revised net appropriation for fund code 1300 on a recurring basis is $2.8 million in each year of the biennium. (S.L. 2017-197, Sec 2.8, Budget Technical Corrections, eliminates a Social/Clinical Research Specialist position (60009518) and operating funds in lieu of eliminating the Education Consultant III position (60009696).) Fund Code: 1300 ($66,121) ($66,121) -0.89 -0.89 52 Position Elimination R R Eliminates the following vacant position in DPI: 60091186 - Accountant (0.89) The revised net appropriation for fund code 1330 is $4.3 million in each year of the biennium. Fund Code: 1330 ($130,254) ($130,254) -2.75 -2.75 53 Position Eliminations R R Eliminates the following 3 vacant positions in DPI: 60041714 - Education Diagnostician I (1.00) 60039569 - Education/Development Aide II (1.00) 60039526 - Education/Development Aide II (0.75) The revised net appropriation in fund code 1400 is $7.5 million in each year of the biennium. Fund Code: 1400 ($145,206) ($145,206) -2.00 -2.00 54 Position Eliminations R R Eliminates the following 2 filled position in DPI: 60094593 - Business Technology Analyst (1.00) 65024592- Digital Learning Plan Project Coordinator (1.00) The revised net appropriation for fund code 1600 is $12.4 million in FY 2017-18 and $12.2 million in FY 2018-19. Fund Code: 1600 Public Education Page F 18 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 ($108,796) ($108,796) -1.00 -1.00 55 Position Elimination R R Eliminates the following filled position in DPI: 60039125 - Director of External Meetings & Special Projects (1.00) The revised net appropriation for fund code 1640 is $1.8 million in each year of the biennium. Fund Code: 1640 ($98,998) ($98,998) -1.00 -1.00 56 Position Elimination R R Eliminates the following vacant position in DPI: 60039518 - Education Consultant II (1.00) The revised net appropriation for fund code 1660 is $2.7 million in each year of the biennium. Fund Code: 1660 E. Reserves and Transfers 57 Coding and Mobile Application Grant Program $400,000 R $800,000 R Provides funds to DPI to establish a Coding and Mobile Application Grant Program. Funds appropriated for the program shall be used to award competitive grants each fiscal year. Grant funds shall be used for the purchase of equipment, digital materials, and related capacity building activities. Grant recipients shall use no more than 5% of the grant award each fiscal year for administrative costs. The revised net appropriation for this program is $400,000 in FY 2017-18 and $800,000 in FY 2018-19. (S.L. 2017-57, Sec. 7.23) Fund Code: 1900 58 Teacher Assistant Tuition Reimbursement Program $315,000 R $315,000 R Expands the teacher assistant tuition reimbursement pilot program to Alamance-Burlington, Beaufort, Bertie, Duplin, Edenton-Chowan, Edgecombe, Guilford, Halifax, Nash-Rocky Mount, Northampton, Randolph, Tyrrell, Vance, and Washington County Schools. The pilot program provides tuition reimbursement of up to $4,500 annually for 5 teacher assistants per school district who are pursuing a college degree that will result in teacher licensure. The revised net appropriation for this program is $427,500 in each year of the biennium. (S.B. 447, S.B. 443; S.L. 2017-57, Sec. 7.20) Fund Code: 1900 Public Education Page F 19 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 $7,180,000 NR 59 Advanced Teaching Roles Provides additional funds for a 3-year pilot program established in the FY 2016-17 budget. The pilot supports school district efforts to create the organizational structure and innovative compensation methods that would allow classroom teachers to take on advanced teaching roles. The revised net appropriation for the advanced teaching roles pilot program is $8.2 million in FY 2017- 18 and $1.0 million in FY 2018-19. (S.B. 430/H.B. 537; S.L. 2017-57, Sec. 7.15) Fund Code: 1900 60 Innovation Zone Model Grants $450,000 R Provides recurring beginning in FY 2018-19 only to DPI to award innovation zone model grants of up to $150,000 per year for 5 years to local boards of education who have been authorized by the State Board of Education to create an innovation zone pursuant to G.S. 115C-75.13. Local boards of education shall be required to provide a dollar-for-dollar match for the grant amount. The revised net appropriation for this program is $450,000 in FY 2018-19 only. (S.L. 2017-57, Sec. 7.26E) Fund Code: 1900 ($4,550,000) $1,000,000 R NR 61 NC Education Endowment Fund Fund Code: 1900 Reduces funding for the North Carolina Education Endowment Fund by $4.55 million on a one-time basis in FY 2017-18 and transfers $450,000 in remaining funds to the North Carolina State Education Assistance Authority for start-up funds to reinstate the NC Teaching Fellows Program. An additional $1 million in funding is provided for the Endowment Fund to support the Teaching Fellows program in FY 2018-19. The revised net appropriation to the Endowment Fund is $0 in FY 2017-18 and $6.0 million in FY 2018-19. (S.L. 2017-57, Sec. 10A.3) (This item also appears in the Public Education special funds in the Education section on page F 24 and in the UNC System General Fund in the Education section on page F 81, item 121.) Public Education Page F 20 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 ($6,145,461) NR 62 Cash Balance Reduces the net appropriation to DPI on a nonrecurring basis to reflect a one-time transfer of the cash balance in the North Carolina Education Endowment Fund. The revised net appropriation to DPI's operating budget is reduced by $6.1 million in FY 2017-18; however, total funding available to DPI remains unchanged. (S.L. 2017-57, Sec. 10A.3) Fund Code: 1900 F. Grants $300,000 NR 63 Eastern North Carolina STEM Provides funds to the State Board of Education to contract with an independent entity to administer a residential STEM enrichment program for underserved students. Participation in the program is limited to students enrolled in Northampton County Schools, Weldon City Schools, Roanoke Rapids City Schools and KIPP Pride High School in Gaston, NC. The revised net appropriation for Eastern NC STEM is $300,000 in FY 2017-18 only. (S.B. 430/H.B. 537) (S.L. 2017-197, Sec. 2.7, Budget Technical Corrections, adds Halifax County Schools to the list of eligible participants.) Fund Code: 1901 $50,000 NR 64 Communities in Schools of Cape Fear Provides funds to support the intervention programs and services provided by Communities in Schools of Cape Fear (CISCF) to address the needs of public school students at risk of grade level retention and dropout from school. The revised net appropriation for CISCF is $50,000 in FY 2017-18 only. (S.L. 2017-57, Sec. 6.13) Fund Code: 1901 $500,000 NR 65 Muddy Sneakers Provides funds to Muddy Sneakers to support its experiential learning programs that aim to improve the science aptitude of 5th graders through supplemental, hands-on field instruction of the State science standards. The revised net appropriation for Muddy Sneakers is $500,000 in FY 2017-18 only. (S.L. 2017-57, Sec. 6.13) Fund Code: 1901 Public Education Page F 21 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 $740,000 NR 66 Triangle Literacy Council Provides funds to the Triangle Literacy Council to support juvenile literacy centers that serve court-involved or otherwise at-risk youth. The revised net appropriation for the Triangle Literacy Council is $740,000 in FY 2017-18 only. (S.L. 2017-57, Sec. 6.13) Fund Code: 1901 $25,000 NR 67 Hoke Reading Literacy Council, Inc. Provides funds to the Hoke Reading Literacy Council, Inc. The Council aims to provide basic literacy instruction including English as a Second Language and introductory computer classes. The revised net appropriation for the Hoke Reading Literacy Council, Inc. is $25,000 in FY 2017-18 only. (S.L. 2017-57, Sec. 6.13) Fund Code: 1901 $360,000 NR $360,000 NR 68 Life Changing Experiences Pilot Program Provides funds to DPI to contract with the Children and Parent Resource Group, Inc. for the Life Changing Experiences Program, a three dimensional and interactive multimedia education program which focuses on activities that negatively impact teenagers, including alcohol and drugs, dangerous driving, violence, and bullying. This program targets students in grades 6 through 11 and will be piloted in Mitchell, Pitt, Wayne, and Winston Salem/Forsyth County Schools. The revised net appropriation for this program is $360,000 in each year of the biennium. (S.B. 423/H.B. 884; S.L. 2017-57, Sec. 7.25) Fund Code: 1901 $250,000 NR 69 Haywood Community Learning Center Provides additional funds to the Haywood County School District to support the Haywood Community Learning Center to provide enrichment opportunities to students in FY 2017-18 only. (S.L. 2017-57, Sec. 6.13) Fund Code: 1901 $100,000 NR 70 Harnett County Early College Provides funds to the Harnett County School district to support the planning and development of the Harnett County Early College. The revised net appropriation for the Harnett County Early College is $100,000 in FY 2017-18 only. (S.L. 2017-57, Sec. 6.13) Fund Code: 1901 Public Education Page F 22 2017 Annotated Conference Committee Report FY 17-18 FY 18-19 $200,000 NR 71 Richmond Senior High School Provides additional funds to the Richmond County School District to support Richmond Senior High School in FY 2017-18 only. (S.L. 2017-57, Sec. 6.13) Fund Code: 1901 $289,316,731 $17,865,905 $686,028,440 $15,360,000 -6.39 -6.39 Total Legislative Changes Total Position Changes Revised Budget $9,046,403,622 $9,425,109,426 R NR R NR Public Education Page F 23 Recommended Budget Legislative Changes 2017 Annotated Conference Committee Report DPI - Trust Special Budget Code: 63501 Requirements Receipts Positions Beginning Unreserved Fund Balance Requirements: $6,000,000 $5,000,000 $6,000,000 $5,000,000 0.00 0.00 $7,440,151 $694,530 FY 2017-18 FY 2018-19 Increases the recurring transfer from DPI's General Fund budget to the Endowment Fund by $1 million for the Teaching Fellows Program in FY 2018-19. The revised net appropriation for the Teaching Fellows Program in FY 2018-19 is $6 million. (This item also appears in the Public Education General Fund in the Education section. See page F 21, item 61.) North Carolina Education Endowment Fund (6109) $0 $1,000,000 0.00 0.00 $0 $0 R R NR NR Transfers the cash balance estimated to be $6,145,461 by the end of the fiscal year to DPI to offset the Department's operating budget in FY 2017-18. (This item also appears in the Public Education General Fund in the Education section. See page F 21, item 62.) North Carolina Education Endowment Fund (6109) $0 $0 0.00 0.00 $6,145,461 $0 R R NR NR Makes a technical adjustment to remove the $1 million reserve line-item on a recurring basis and decreases the $5 million reserve line-item on a nonrecurring basis in FY 2017-18 only. (This item also appears in the Public Education General Fund in the Education section. See page F 21, item 61.) North Carolina Education Endowment Fund (6109) ($1,000,000) ($1,000,000) 0.00 0.00 ($5,000,000) $0 R R NR NR Department of Public Instruction Page F 24 2017 Annotated Conference Committee Report FY 2017-18 FY 2018-19 Receipts: $0 $0 0.00 0.00 $259,833 $0 R R NR NR State Literary Fund (6102) Transfers the cash balance to the SPSF to offset the textbooks and digital materials allotment in FY 2017-18. (This item also appears in the Public Education General Fund in the Education section. See page F 10, item 19.) Education Fund (6116) Transfers the cash balance to the SPSF to offset the textbooks and digital materials allotment in FY 2017-18. (This item also appears in the Public Education General Fund in the Education section. See page F 10, item 19.) $0 $0 0.00 0.00 $340,327 $0 R R NR NR Subtotal Legislative Changes ($1,000,000) $0 0.00 0.00 R NR R $1,745,621 $0 NR Decreases the $5 million transfer from DPI's General Fund budget to the Endowment Fund on a nonrecurring basis in FY 2017-18 and increases the transfer from DPI's General Fund budget to the Endowment Fund by $1 million for the Teaching Fellows Program on a recurring basis starting in FY 2018-19. The revised net appropriation for the Endowment Fund is $6 million in FY 2018-19. North Carolina Education Endowment Fund $0 $1,000,000 ($5,000,000) $0 R NR R NR No change. State Literary Fund (6102) $0 $0 $0 $0 R NR R NR No change. Education Fund (6116) $0 $0 $0 $0 R NR R NR Subtotal Legislative Changes $0 $1,000,000 ($5,000,000) $0 R NR R NR Department of Public Instruction Page F 25 2017 Annotated Conference Committee Report FY 2017-18 FY 2018-19 Revised Total Requirements Change in Fund Balance Unappropriated Balance Remaining Revised Total Receipts Total Positions ($6,745,621) $6,745,621 $6,000,000 $0 $694,530 $694,530 $0 $6,000,000 0.00 0.00 Department of Public Instruction Page F 26 Special Provisions Department: Public Education 2017 Session: SB 257 Provides $4,125.27 per child for children with disabilities to each LEA for the lesser of (i) all children who are identified as children with disabilities, or (ii) 12.75% of the LEA's allotted average daily membership (ADM). Additionally, subsection (b) prohibits LEAs from transferring funds out of the children with disabilities allotment into another allotment category. This change is effective with the 2017-18 school year. (S.B. 430/H.B. 537). Section: 7.1 Title: FUNDS FOR CHILDREN WITH DISABILITIES Summary: Provides $1,314.56 per child for academically and intellectually gifted children to each LEA for a maximum of 4% of each LEA's allotted ADM. Subsection (b) prohibits LEAs from transferring funds allotted for academically and intellectually gifted children into another allotment category. This change is effective with the 2018-19 school year. (S.B. 430/H.B. 537) Section: 7.2 Title: FUNDS FOR ACADEMICALLY GIFTED CHILDREN Summary: Continues the formula for determining eligibility for and distribution of funds appropriated in FY 2017-18 and FY 2018-19 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. (S.B. 430/H.B. 537) Section: 7.3 Title: 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. This schedule is unchanged from the 2015-17 biennium. (S.B. 430/H.B. 537) Section: 7.4 Title: SMALL COUNTY SCHOOL SYSTEM SUPPLEMENTAL FUNDING Summary: Public Education Page F 27 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). (S.B. 430/H.B. 537) Section: 7.5 DISADVANTAGED STUDENT SUPPLEMENTAL Title: FUNDING (DSSF) Summary: Directs that funds appropriated for UERS for the 2017-19 biennium shall not revert. (S.B. 430/H.B. 537) Section: 7.6 Title: UNIFORM EDUCATION REPORTING SYSTEM (UERS) FUNDS Summary: Prescribes how DPI may implement the management flexibility reduction included in the budget. Specifically, DPI may make no reduction in funding to the State Public School Fund, including the residential schools, or to any budget expansion item funded by an appropriation to DPI by this act for the 2017-19 Fiscal Biennium. Additionally, DPI may not make reductions to the following areas: - Communities in Schools of North Carolina, Inc., - Teach for America, Inc., - Beginnings for Parents of Children Who are Deaf or Hard of Hearing, Inc., - The Excellent Public Schools Act, Read to Achieve Program, - The North Carolina School Connectivity Program, - The North Carolina Center for the Advancement of Teaching, - The North Carolina Innovative School District, - Eastern North Carolina STEM, and - Positions appointed by and with a direct report to the State Superintendent of Public Instruction, including those positions described in S.L. 2017-57, Sec. 7.10, Appropriations Act of 2017. Section: 7.7 Title: BUDGET REDUCTIONS/DEPARTMENT OF PUBLIC INSTRUCTION Summary: Directs DPI, in consultation with the Office of State Budget and Management, to align federal funds to accurately reflect the amount projected to be received and spent by the Department as part of the certification of the budget. This requirement is in accordance with the State Budget Act, G.S. 143C.. Section: 7.8 Title: DPI/ALIGNMENT OF FEDERAL FUNDS Summary: Directs DPI to use funds appropriated to implement the Excellent Public School Act (Section 7A.1 of S.L. 2012-142, as amended) to fund 13 time-limited positions that support K-3 assessments. Funding is authorized through the end of the 2017-19 biennium. (S.B. 430/H.B. 537) Section: 7.9 Title: ADMINISTRATION OF THE EXCELLENT PUBLIC SCHOOLS ACT Summary: Public Education Page F 28 Authorizes the Superintendent of Public Instruction to use up to $700,000 to appoint up to 10 positions that are exempt from the State Human Resource Act and report directly to the State Superintendent. (H.B. 838) Section: 7.10 SUPERINTENDENT OF PUBLIC INSTRUCTION Title: SUPPORT STAFF Summary: Allows DPI to carry forward funds appropriated in S.L. 2016-94, 2016 Appropriations Act, related to the implementation and evaluation of 4 programs. These 4 programs include: the Teacher Compensation and Advanced Teaching Roles Pilot Program, the Local Alternative Teacher Preparation Program, the North Carolina Innovative School District, and School Connectivity. Section: 7.11 Title: CARRYFORWARD OF CERTAIN DPI FUNDS Summary: Prohibits LEAs from transferring funds allotted for limited English proficiency into another allotment category, effective with the 2017-18 school year. Section: 7.12 Title: PROHIBIT TRANSFER OF LIMITED ENGLISH PROFICIENCY FUNDS Summary: Prohibits LEAs from transferring funds allotted for textbooks and digital resources into another allotment category, effective with the 2018-19 school year. Section: 7.13 Title: PROHIBIT TRANSFER OF TEXTBOOKS AND DIGITAL RESOURCES FUNDS Summary: Repeals Section 8.7(i) of S.L. 2016-94, 2016 Appropriations Act, which allowed LEAs receiving grants from the Teacher Compensation Models and Advanced Teaching Roles Pilot Program to exceed the maximum class size requirements for kindergarten through 3rd grade. However, under this section, LEAs receiving grants may allow a certain number of schools identified in the LEAs' proposals for the Program to exceed individual class size requirements in kindergarten through 3rd grade for the duration of the Program. In addition, schools participating in Project Lift in the Charlotte-Mecklenburg Schools and schools participating in R:3 Career Pathways Program in Pitt County Schools may also exceed individual class size requirements in kindergarten through 3rd grade for the duration of the program. This section also provides that class size requirements for kindergarten through 3rd grade do not apply to dual-language immersion classes, which are defined as classes where (i) at least one-third of the students' dominant language is English and (ii) instruction involves both English and a target foreign language with a minimum of 50% of core content taught in the target foreign language. The exemption for LEAs participating in the Program expires June 30, 2020. The exemption for dual-language immersion classes applies beginning with the 2017-2018 school year. Section: 7.15 CLASS SIZE FLEXIBILITY FOR CURRENT PILOT PROGRAMS AND DUAL LANGUAGE IMMERSION CLASSES Title: Summary: Public Education Page F 29 Directs DPI to implement the School Business System Modernization Plan, as proposed by the SBE as required by Section 8.15 of S.L. 2016-94, 2016 Appropriations Act. The section states the General Assembly's intent to fund a multi-phase, multi-year project intended to: modernize State and local education financial, human resource, and school information systems, provide for a common reporting and analytics system, integrate financial, payroll, human resources, and related human capital systems through the use of a enterprise resource planning (ERP) solution, and link the State licensure system with the upgraded local systems. DPI must report to the Joint Legislative Education Oversight Committee (JLEOC) and the Fiscal Research Division (FRD) on the plan development and plan for implementation by September 1, 2017, and each year thereafter by March 15. Section: 7.16 IMPROVE EDUCATION FINANCIAL AND INFORMATION Title: TRANSPARENCY Summary: Directs DPI to use up to $200,000 of the funds authorized to be carried forward for UERS to support the purchase of a web-based electronic records and data management system to automate and streamline reporting and accountability requirements of charter schools. (S.B. 430/H.B. 537) Section: 7.17 Title: OFFICE OF CHARTER SCHOOLS/WEB-BASED RECORD AND DATA MANAGEMENT Summary: Amends G.S. 115C to add a new section, G.S. 115C- 13.5, which prohibits the SBE from using State funds to employ private counsel for litigation services. Additionally, the section clarifies which positions support the SBE, reflecting the elimination of the Associate State School Superintendent position in item 48 on page F 17 of the Education section. . Section: 7.18 Title: STATE BOARD OF EDUCATION/USE OF STATE FUNDS Summary: Amends G.S. 115C-301 to direct the SBE to allot additional classroom teachers to schools where consolidation is not feasible due to geographic isolation and the school meets at least 1 of the following criteria: (1) Be located in an LEA in with an average daily membership of less than 1.5 students per square mile, or (2) Be located in a county containing more than 150,000 acres of national forest owned by the federal government and managed by the United States Forest Service. The SBE must allot teachers to geographically-isolated schools on the basis of 1 classroom teacher per grade level and must allot teachers to the remainder of the LEA in accordance with the formulas for the regular classroom teacher allotment. (S.B. 15/H.B. 23) Section: 7.19 Title: TEACHERS/ISOLATED K-12 SCHOOLS Summary: Public Education Page F 30 Amends Section 8.29 of S.L. 2016-94, 2016 Appropriations Act, to expand the pilot program providing tuition assistance awards to part- or full-time teacher assistants working in certain LEAs to pursue a college degree that will result in teacher licensure. The pilot program will be available beginning in the 2017-18 school year in Alamance Burlington Schools, Beaufort County Schools, Bertie County Schools, Duplin County Schools, Edenton-Chowan Schools, Edgecombe County Schools, Guilford County Schools, Halifax County Schools, Nash-Rocky Mount Schools, Northampton County Schools, Randolph County Schools, Tyrrell County Schools, Vance County Schools, and Washington County Schools. Additionally, the section provides that beginning with the 2017-18 school year, teacher assistants must continue to receive salary and benefits while student teaching in the same LEA where they are employed as a teacher assistant. All local boards of education participating in the pilot program must report jointly to JLEOC by September 1, 2018, and annually thereafter, on results of the pilot program. (S.B. 447, S.B. 443) Section: 7.20 TURNING TAS INTO TEACHERS PILOT EXPANSION/STUDENT TEACHER EMPLOYMENT Title: Summary: Modifies supplemental funding available for Cooperative and Innovative High Schools (CIHS). Beginning in FY 2017-18, all CIHSs approved for operation will receive funds through the CIHS allotment, including CIHSs that previously have not received supplemental funds. CIHS funds will vary based on the economic development tier the CIHS is located in, with Tier 1 CIHSs receiving $275,000, Tier 2 and 3 CIHSs receiving $200,000, and virtual CIHSs receiving $200,000 regardless of tier. Tier 3 CIHSs will receive $175,000 beginning in FY 2018-19. The State Board of Community Colleges, the Board of Governors of the University of North Carolina (UNC), and the SBE must study and report to the Senate Appropriations Committee on Education/Higher Education and the House Appropriations Committee on Education (Appropriations Committees on Education), FRD, and JLEOC on the costs associated with the Career and College Promise Program, student outcomes related to the Program, and any recommendations on modifications to the administration and funding of the Program by February 15, 2018. The section also amends G.S. 115C-238.55 by requiring the State Board of Community Colleges, in conjunction with the SBE and the Board of Governors of UNC, to evaluate the success of students participating in the Career and College Promise Program. The Boards must report jointly by January 15 of each year to JLEOC. (S.B. 582, Sec. 2.1, Budget Technical Corrections, amends this provision to change the reporting date for the joint report on student success from January 15 to March 15 of each year.) Section: 7.22 COOPERATIVE INNOVATIVE HIGH SCHOOL Title: FUNDING CHANGES Summary: Public Education Page F 31 Directs DPI to establish the Coding and Mobile Application Grant Program to develop industry partnerships with LEAs and charter schools to design and implement computer science, coding, and mobile application development curricular programs for middle school and high school students. Funds for the Program are to be used to award competitive grants of up to $400,000 each fiscal year. These grants may be used for the purchase of equipment, digital materials, and related activities such as teacher professional development. In selecting recipients, the State Superintendent must consider diversity among the applicants, including geographic location, positive impact on the community of industry partnerships, and the size of the student population. Initial grant recipients must be selected by November 15, 2017, and the Program's implementation must begin in the spring semester of the 2017-2018 school year. By August 1 of each year of the Program, grant recipients must submit a report to DPI for the preceding year in which grant funds were expended that provides information on the use of the funds, the number of students participating in the program, how many students subsequently participated in work based opportunities, and outcome data regarding job attainment and postsecondary opportunities as a result of the partnership initiative. By September 15 of each year DPI must report to JLEOC and FRD, beginning with an initial report by September 15, 2018, on grant recipients and implementation of the Program. Section: 7.23 PREPARING FUTURE WORKFORCE IN CODING AND MOBILE APP DEVELOPMENT GRANT PROGRAM Title: Summary: Requires the SBE and DPI, in collaboration with the Friday Institute for Educational Innovation (Friday Institute) at North Carolina State University, to expand the School Connectivity Initiative client network engineering to include cybersecurity and risk management services supporting LEAs and charter schools. The expansion must include continuous monitoring and risk assessment, security advisory and consulting services, and security training and education services. (S.L. 2017-197, Sec. 2.2, Budget Technical Corrections, amends this section by removing the requirement that the expansion plan must include building security programs.) Section: 7.23A EXPAND SCHOOL CONNECTIVITY INITIATIVE/CYBERSECURITY Title: AND RISK MANAGEMENT Summary: Requires the SBE and DPI to report to JLEOC by March 30, 2018 on the measures taken by each LEA to implement requirements regarding cursive writing and memorization of multiplication tables, pursuant to G.S. 115C-81(k) and G.S. 115C-81(l). Section: 7.23B Title: REPORT ON CURSIVE WRITING AND MULTIPLICATION TABLES Summary: Public Education Page F 32 Creates the Joint Legislative Task Force on Education Finance Reform consisting of 18 legislators (9 from each chamber). The overall makeup of the Task Force is expected to reflect geographic and urban/rural diversity and must include at least 1 member of the minority party from each chamber. The Task Force is charged with studying various weighted student formula funding models and developing a new funding model for elementary and secondary public schools. The Task Force is required to begin meetings by October 1, 2017, and to submit a final report on the results of its study and development, including proposed legislation, to the offices of the President Pro Tempore of the Senate and the Speaker of the House of Representatives, JLEOC, and the Legislative Library, on or before October 1, 2018. (S.B. 9/H.B. 6) Section: 7.23D JOINT LEGISLATIVE TASK FORCE ON EDUCATION Title: FINANCE REFORM Summary: Prohibits the use of the analysis of student work process to assess teacher performance and requires the SBE to reflect this prohibition in the consolidated State plan submitted to the U.S. Department of Education. This section also makes conforming changes to G.S. 115C-296(e) and 115C-296.11(b)(3). Section: 7.23E Title: ELIMINATE ANALYSIS OF STUDENT WORK PROCESS FOR TEACHER EVALUATIONS Summary: Amends G.S.115C-64.15C to create a competitive grant program expanding Career and Technical Education (CTE) to 6th and 7th grades in selected LEAs to be administered by the North Carolina Education and Workforce Innovation Commission (transferred to DPI in Section 7.23G of S.L. 2017-57, 2017 Appropriations Act). The program awards grants to school districts for up to a 7 year period to be used for employing additional licensed personnel in CTE and support service areas. (H.B. 450) Section: 7.23F Title: SIXTH AND SEVENTH GRADE CTE PROGRAM EXPANSION GRANT PROGRAM Summary: Transfers the North Carolina Education and Innovation Commission from the Governor’s Office to DPI as a Type II transfer. This section also rewrites G.S. 115C-64.15(a) to revise the amount of funds that can be used for administrative expenses from a flat amount of $200,000 to 10%. (H.B. 450) Section: 7.23G Title: TRANSFER EDUCATION AND WORKFORCE INNOVATION COMMISSION TO DPI Summary: Public Education Page F 33 Changes the name of the vocational and technical education program to the career and technical education program and makes conforming changes throughout Chapter 115C. The section also amends Article 10 of Chapter 115C to create a new part 4, G.S. 115C-170, which establishes business advisory councils that will assist school districts in providing CTE instruction, identify economic and workforce development trends in the region, and advocate for strong local CTE programs. Additionally, the section amends G.S. 115C-157 to require local boards of education to offer at least 2 work-based learning opportunities consisting of on-the-job training through an internship, cooperative education, or an apprenticeship program. Lastly, the section amends G.S. 115C-302.1 to require that for the 2018-19 school year, CTE teacher positions serving students in grades 9-12 must be 12 month employees. School districts may use any combination of State and local funds to meet this requirement. (H.B. 450) Section: 7.23H FUTURE Title: READY STUDENTS Summary: Amends Chapter 115C to create a new Article 6D to establish the B-3 Interagency Council, a joint council between the Department of Health and Human Services (DHHS) and DPI charged with establishing a vision for a birth through grade 3 system of early education. The section also directs the Council to undertake a rigorous review of the recommendations developed by DHHS and DPI pursuant to Section 12B.5 of S.L. 2016-94, 2016 Appropriations Act, and to report any suggested changes to those recommendations to the General Assembly and the Governor. The section also establishes a new exempt position of Associate Superintendent of Early Education who will serve as the chief academic officer of early education and whose duties will be to co-lead work of the Council and oversee DPI’s pre-K through 3rd grade initiative. The Council is required to report on the initial results of the review to JLEOC, the Joint Legislative Oversight Committee on Health Human Services, and the Joint Legislative Commission on Governmental Operations by April 15, 2018. The Council must report on the final results of the review and implementation of a plan for a coordinated system of early care, education, and child development services by February 15, 2019. (H.B. 556) (S.L. 2017-197, Sec. 2.3, Budget Technical Corrections, amends this section to allow the Superintendent of Public Instruction to remove the Associate Superintendent for any reason, not only in the event of incapacity to serve.) Section: 7.23I Title: ESTABLISH B-3 INTERAGENCY COUNCIL Summary: Public Education Page F 34 Amends G.S. 115C-105.25 to require each LEA to publish additional financial information on its website by October 15 of each year. Specifically, if an LEA transfers more than 5% of the funds out of an allotment, the LEA must post to its website the total amount of the funds transferred, the allotment category into which the funds were transferred, the purpose code for the funds following the transfer, and a description of teacher positions funded as a result of the transfer. DPI is required to report the aggregated information to JLEOC and FRD no later than December 1 of each year. (S.L. 2017-197, Sec. 7.23J, Budget Technical Corrections, amends this section to clarify that the allotment transfer report must include information on the uses of funds transferred for the 2014- 2015, 2015-2016, and 2016-2017 fiscal years.) Section: 7.23J Title: ALLOTMENT TRANSFER REPORT Summary: Directs the SBE, DPI, the Friday Institute, and the UNC educator preparation programs to develop and implement a comprehensive professional development strategy for teachers and students in UNC educator preparation programs for the use of technology and digital resources as teaching tools. Additionally, the section directs that the SBE, DPI, the Friday Institute, UNC education preparation programs, and local school boards located in the most economically-distressed counties to assess current efforts to provide digital literacy instruction in kindergarten through 8th grade and to develop a plan to strengthen such efforts. Section: 7.23K Title: DIGITAL LEARNING PLAN/PROGRAMS/FUNDS Summary: Directs the State Superintendent to select an independent research organization to conduct an organizational, functional, and business-process audit of DPI. The audit's results are due to the General Assembly, JLEOC, and FRD by May 1, 2018. Section: 7.23L Title: AUDIT OF THE DEPARTMENT OF PUBLIC INSTRUCTION Summary: Public Education Page F 35 Directs DPI to use up to $6 million in each year of the biennium from the at-risk student services alternative school allotment for the Extended Learning and Integrated Student Supports Competitive Grant Program. The Program provides grants to programs for at-risk students operated by nonprofit corporations and nonprofit corporations working in collaboration with LEAs. Grant recipients are eligible to receive grants for 2 years of up to $500,000 each year, with priority consideration given to applications demonstrating models that focus services and programs in low-performing schools. Grant funds must be matched on the basis of 1 dollar in non-grant funds for every 3 dollars in grant funds.. Grant recipients must report to DPI for the year in which grant funds were expended and must submit a final report on key performance data, including statewide test results, attendance rates, graduation rates, promotion rates, and financial sustainability of the program. DPI must provide an interim report on the Program to JLEOC by September 15, 2018, with a final report due on the Program by September 15, 2019. Section: 7.24 EXTENDED LEARNING AND INTEGRATED STUDENT SUPPORTS COMPETITIVE GRANT PROGRAM Title: Summary: Directs DPI to use up to $360,000 in both years of the biennium to contract with the Children and Parents Resource Group, Inc. to design, implement, and evaluate a Life Changing Experiences School Pilot Program focused on dangerous life- and community-threatening activities that negatively impact teenagers. The Program shall be offered to students in grades 6 through 11 in Mitchell, Pitt, Wayne and Winston-Salem/Forsyth school districts. The Children and Parents Resource Group, Inc., in consultation with DPI, is required to submit an interim report by March 1, 2018, and a final report by March 1, 2019 to JLEOC and FRD. (S.B. 423/H.B. 884) Section: 7.25 LIFE CHANGING EXPERIENCES SCHOOL Title: PILOT PROGRAM Summary: Public Education Page F 36 Amends Chapter 115C and G.S. 116-239.8(14) to make several changes to the calculation of school achievement scores and compliance with the Every Student Succeeds Act (ESSA). Subsection (a) modifies G.S. 115C-12(9)c1 regarding the requirements for the annual school report card to include student progress in achieving English language proficiency and school performance of certain subgroups of students to comply with ESSA. Subsection (c) revises G.S. 115C-83.15 to modify the school achievement score calculation to include 1 point for each percent of students who progress in achieving English language proficiency on annual assessments. Additionally, the subsection prohibits the SBE from adding any other designations related to school performance to a letter grade, such as plus or minus, and requires the SBE to use the Education Value Added Assessment System (EVAAS) to calculate school performance scores and grades for several subgroups. Subsection (d) directs the SBE to use the school performance grades to comply with ESSA, using the academic achievement score as the measure of academic achievement, and school growth as the measure of school quality and student success, and to weigh indicators in accordance with G.S. 115C-83.15. Subsections 7.26.(e) - (k) make various conforming changes to clarify that "school performance grade" refers to the overall grade (80% achievement and 20% growth), not including any of the subgroup grades. (S.L. 2017-197, Sec. 2.5, Budget Technical Corrections, amends this section to specify that EVAAS data is used to calculate school growth rather than to calculate the overall performance scores and grades.) Section: 7.26 SCHOOL PERFORMANCE GRADES/Title: ESSA COMPLIANCE Summary: Amends G.S. 115C-401.2(e) to clarify that operators of internet websites, online services, online applications, or mobile applications may use a student's information to identify information on nonprofit institutions of higher education or scholarship providers to the student if express written consent from the parent, or a student who is at least 13, is given to the provider. Section: 7.26A CLARIFY STUDENT CONSENT TO RECEIVE COLLEGE, UNIVERSITY, AND SCHOLARSHIP INFORMATION Title: Summary: Public Education Page F 37 Amends G.S. 115C-12(40) to require that career and college diploma endorsements be awarded only to students who receive scores on a nationally norm-referenced college admissions test for reading, indicating the level of achievement required for students to have a 50% chance of obtaining a grade B or higher or a 75% chance of obtaining a grade C or higher in a corresponding credit bearing, first-year college course. The section authorizes students to retake the college admission test to achieve the required score. Subsection (b) requires the Superintendent of Public Instruction to establish a Reading Improvement Commission to study and make recommendations on best practices for public schools to improve reading comprehension, understanding, and application for students in grades 4 through 12 to ensure that students complete high school with literacy skills necessary for career and college readiness. The Superintendent must report to the JLEOC, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the SBE on the study, including any findings and recommendations, by January 15, 2019. The SBE may use the findings and recommendations to inform the SBE's policies and may submit additional comments on DPI's report no later than February 15, 2019. (H.B. 751) Section: 7.26B CAREER AND COLLEGE READY LITERACY SKILLS/READING IMPROVEMENT Title: COMMISSION Summary: Amends G.S. 115C-174.11(c)(4) to require the SBE to use a competitive bid process to adopt 1 nationally norm-referenced college admissions test to make available to LEAs, regional schools, and charter schools to administer to students in 11th grade, and one alternate to the nationally norm-referenced test. This section also makes a conforming change to G.S. 115C-174.22. Tests chosen through the competitive bid process shall be administered beginning with the 2019-20 school year, and the SBE is required to report on the results of the bid process to JLEOC by May 15, 2019. Section: 7.26C Title: NATIONALLY NORM-REFERENCED COLLEGE ADMISSIONS TEST Summary: Renames the Achievement School District to the North Carolina Innovative School District (ISD) and makes conforming changes through the statutes. The section also clarifies that the ISD is an LEA for the purposes of federal law and for the administration of State law and moves up the timelines for the selection of the schools to be included in the ISD by 1 month. It also delays the timeline for implementing and evaluating of the ISD by 1 year, including all reporting requirements. The section further allows a local board of education that transferred a school into the ISD to ask the SBE to create an innovation zone for all of the low-performing schools in its local school administrative unit if 35% or more of schools are low-performing. The designation as an innovation zone authorizes the local board of education to operate schools with the same exemptions from State law and rules as charter schools. A low-performing school in an innovation zone becomes a school in the ISD if the low-performing school does not exceed expected growth in the last 2 years of the 5 consecutive years in an innovation zone. Section: 7.26E Title: NORTH CAROLINA INNOVATIVE SCHOOL DISTRICT Summary: Public Education Page F 38 Amends G.S. 115C-83.6 to require, beginning with the 2018-2019 school year, that kindergarten through 3rd grade reading assessments yield data that can be used with EVAAS to analyze student data. By October 1, 2017, the State Superintendent must issue a Request for Proposals (RFP) to vendors of diagnostic reading assessment instruments to provide 1 or more valid, reliable, formative, and diagnostic reading assessment instrument or instruments that, at a minimum, yield data that can be used with EVAAS, demonstrate close alignment with student performance on State assessments, and demonstrate high rates of predictability as to student performance on State assessments. (S.L. 2017-197, Sec 2.6, Budget Technical Corrections, amends this section to permit DPI to carry forward up to $5 million of funds appropriated in S.L. 2015-241, 2015 Appropriations Act, for the Excellent Public Schools Act through the end of the 2017-2018 Fiscal Year. These funds shall be allotted to LEAs for the purchase of computers or other electronic devices used for the administration of the formative and diagnostic reading assessments made available by the SBE pursuant to G.S. 115C‑174.11.) Section: 7.27 READ TO ACHIEVE Title: DIAGNOSTIC CHANGES Summary: Amends g.S. 115C-296 to requires the SBE to reimburse the initial teacher application fee for a first time applicant if the applicant is a graduate of an approved educator preparation program located in North Carolina and has successfully earned his or her initial teaching license in North Carolina. (S.B. 517) Section: 7.28 Title: REIMBURSE INITIAL TEACHER LICENSURE FEE FOR CERTAIN TEACHING GRADUATES Summary: Public Education Page F 39 Directs the Superintendent of Public Instruction to study and make recommendations about the extent to which the SAT and ACT align with the English language arts and mathematics sections of the North Carolina Standard Course of Study. Findings and recommendations must be made by February 1, 2018, to the Governor, the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the JLEOC. The section also amends G.S. 115C-174.12 to change the date by which local boards of education must notify the SBE of any local standardized testing required by the local board of education, including various reporting requirements about the test. It further directs the SBE to publish on DPI’s website a uniform calendar that includes schedules for State-required testing and reporting results of tests for at least the next 2 school years, including estimates of the average time for administering State-required standardized tests. Local boards of education are also required to populate the calendar with information on local testing requirements. The section further amends Part 2 of Article 10A of G.S.115C to add 2 new sections. The first requires local boards of education to provide a student's results on standardized tests required by the local board to the student's teachers and parents within specified timelines. The second requires DPI to provide a student's results on statewide standardized tests in a timely manner and in an understandable format to local boards that in turn must provide those results to the teacher of record and the parent. Finally, this section amends G.S. 115C-81(b) to provide that the Basic Education Program must provide standards for early promotion based on the mastery of competencies that apply when early grade or course promotion based on the mastery of competencies is permitted in a school. The standards must include the requirements for early promotion for English language arts for grades 3 through 12 and mathematics for grades 3 through 12. (H.B. 841) Section: 7.28A Title: TESTING TRANSPARENCY Summary: Amends G.S. 115C-174.26(a) to add Cambridge Advanced International Certificate of Education (AICE) courses, including AS-Level or A-1 Level courses, to the definition of advanced courses thereby exempting students enrolled in the courses from paying for registration and examination fees to the extent that funds are made available for this purpose. Section: 7.28D Title: WAIVE FEE FOR CAMBRIDGE AICE PROGRAM COURSE Summary: Directs the Superintendent of Public Instruction to establish a 3-year Financial Literacy Elective Course Pilot Program and to select LEAs that represent the State's geographic, economic, and social diversity to participate in the pilot program. The SBE, in consultation with the Superintendent, shall develop a curriculum, materials, qualifications for teaching the course, and guidelines for LEAs to use. By November 15 of each year, DPI shall report to the JLEOC on the implementation and administration of the program and recommendations on the modification, continuation, and expansion of the program. (H.B. 882) Section: 7.32 Title: FINANCIAL LITERACY ELECTIVE COURSE PILOT PROGRAM Summary: Public Education Page F 40 Directs DPI to establish the Charter School Transportation Grant Pilot Program. The Program's purpose is to award grant funds to charter schools that meets the requirements of the Program for the reimbursement of up to 65% of the eligible student transportation costs incurred by the charter school, including transportation fuel, vehicle maintenance, and contracted transportation services. To be eligible, at least 50% of a charter school's students must reside in households with an income level not in excess of the amount required for a student to qualify for the federal free or reduced price lunch program in a semester of the school year. DPI must report on the administration of the Program by March 15, 2018, to FRD, the Joint Legislative Transportation Oversight Committee, and the JLEOC. (S.B. 662, H.B. 644) Section: 7.35 CHARTER SCHOOL TRANSPORTATION Title: GRANT PILOT PROGRAM Summary: Public Education Page F 41 Establishes the monthly minimum salary schedule (salary schedule) for the 2017-18 fiscal year for certified personnel in North Carolina public schools. Subsection (a) sets the salary schedule for the 2017-18 fiscal year for licensed public school personnel who are classified as teachers and hold a bachelor’s degree. Subsection (b) sets the salary supplements for licensed teachers who have additional education or certification, including holding a National Board of Professional Teaching Standards (NBPTS) certification, a master’s degree (and are classified as "M" teachers), a license based on academic preparation at the 6-year degree level, or a license based on academic preparation at the doctoral degree level. Additionally, certified school nurses receive a salary supplement of 10%. Subsection (c) establishes that the 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 to be 7.5% higher than the salary on 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) requires that teachers not otherwise receiving a salary increase from the applicable amount on the new salary schedule are to be held harmless at the amount received in FY 2014-15, including any State-provided bonuses, if applicable. Subsection (g) clarifies that the term "teacher" includes instructional support personnel. Subsection (h) repeals Section 9.1(i) of S.L. 2016-94, 2016 Appropriations Act, which contained an intended teacher salary schedule for FY 2018-19. Subsection (i) outlines the General Assembly’s intended "A" salary schedule to be implemented for FY 2018-19. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.1 TEACHER Title: SALARY SCHEDULE Summary: Public Education Page F 42 Provides teachers entering the profession with a salary supplement in addition to the teacher salary schedule if the teacher graduated from an approved educator preparation program in the State with: • A grade point average of 3.75 or higher, and, • A score of 48 or higher on the edTPA assessment, or an equivalent score on another type of nationally-normed teacher assessment. The salary supplement is structured as an income-leveling adjustment that provides a teacher a salary equivalent to a certain step of the salary schedule. Once a teacher reaches the respective step on the salary schedule upon acquiring additional years of experience, the salary supplement is discontinued. The supplement is determined based on the following: • An eligible teacher who accepts employment at a low-performing school identified by the SBE pursuant to G.S. 115C-105.37 will receive a salary supplement equivalent to the difference between a teacher paid according to step 3 of the salary schedule and the teacher's current step. • An eligible teacher who is licensed in science, technology, engineering, mathematics, or special education will receive a salary supplement equivalent to the difference between a teacher paid according to step 2 of the salary schedule and the teacher's current step. • All other eligible teachers will receive a salary supplement equivalent to the difference between a teacher paid according to step 1 of the salary schedule and step 0. (S.L. 2017-212, Sec. 2.3, Budget & Agency Technical Corrections, amends this section to modify the edTPA score necessary for a new teacher to receive a Highly Qualified Teacher salary supplement.) A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.2 Title: SUPPORT HIGHLY QUALIFIED NC TEACHING GRADUATES Summary: Public Education Page F 43 Establishes the minimum monthly salary schedules and compensation policies for principals. Subsection (a) sets the minimum annual salary schedule for the 2017-18 fiscal year for principals. The schedule is based on 2 criteria: 1) School size as measured by the school’s ADM and 2) The growth scores achieved by the principal in 2 of the most recent 3 school years under G.S. 115C-83.15(c). Subsection (b) discontinues longevity payments to principals. Subsection (c) provides that any principal who was paid according to the principal salary schedule in FY 2016-17, and who would receive a pay reduction under the new schedule, is held harmless in FY 2017-18 and will maintain his or her salary with all applicable salary supplements received in FY 2016-17. Subsection (c1) states that the hold harmless provision contained in subsection (c) is only applicable in FY 2017-18. Subsection (d) makes conforming changes to G.S. 115C-105.25(b)(5c) regarding the amount of funds that a local education agency may transfer out of a principal or assistant principal position allotment based on changes made to both salary schedules. (S.L. 2017-212, Sec. 2.4, Budget & Agency Technical Corrections, amends this section to expand the hold harmless provision to principals paid on the teacher salary schedule in FY 2016- 17.) A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.3 PRINCIPAL Title: SALARY SCHEDULE Summary: Public Education Page F 44 Creates 2 new school-growth-based bonus program for principals. Subsection (a) provides principals who supervised a school with a growth ranking in the top 50% of the State with a bonus ranging from $1,000 to $5,000. FY 2017-18 Principal Bonus Schedule Statewide Growth Percentage Bonus: Top 5% : $5,000 Top 10%: $4,000 Top 15% : $3,000 Top 20% : $2,000 Top 50% : $1,000 In addition to the bonuses provided in subsection (a), subsection (b) provides principals who supervise a school that received a school growth score of "not meeting" or "met" expected growth in FY 2015-16, and subsequently receive a growth score of "exceeded" growth expectations in FY 2016-17 will receive an additional bonus of: • $10,000 for schools supervised in FY 2015-16 with a school performance grade of "D" or "F" as calculated by the SBE pursuant to G.S. 115C-83.15(d), or • $5,000 for all other schools. Subsection (f) sets forth the General Assembly's intent that the bonuses awarded under this section should be used to supplement principal compensation and not to supplant local funds. Subsection (g) directs the bonuses to be paid no later than October 31, 2017. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.4 Title: PRINCIPAL BONUSES Summary: Public Education Page F 45 Establishes the salary schedule for assistant principals for FY 2017-18. Subsection (a) ties assistant principal pay to the teacher “A” salary schedule plus 17%. Subsection (b) continues the advanced ($126/month) and doctoral ($253/month) degree salary supplements provided in addition to the salary schedule. Subsection (d) discontinues longevity payments to assistant principals. Subsection (e) provides that any assistant principal who was paid according to the assistant principal salary schedule in FY 2016-17, and who would receive a pay reduction under the new schedule, is held harmless in FY 2017-18 and will maintain his or her salary with all applicable salary supplements received in FY 2016-17. Subsection (f) expresses the General Assembly's intent to further increase assistant principal pay in FY 2018-19 by tying assistant principal pay to the teacher “A” salary schedule plus 19%. (S.L. 2017-212, Sec. 2.4, Budget & Agency Technical Corrections, amends this section to expand the hold harmless provision to assistant principals paid on the teacher salary schedule in FY 2016-17.) A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.5 ASSISTANT Title: PRINCIPAL SALARIES Summary: Public Education Page F 46 Sets the monthly 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 FY 2017-18. Salary ranges are $1,000 higher than in FY 2016-17. The following monthly salary ranges apply to public school assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 2017-18 Fiscal Year: 2017-18 Minimum Maximum School Administrator I : $3,525 $6,501 School Administrator II : $3,729 $6,888 School Administrator III : $3,951 $7,300 School Administrator IV : $4,104 $7,585 School Administrator V : $4,265 $7,887 School Administrator VI : $4,517 $8,356 School Administrator VII : $4,693 $8,688 The following monthly salary ranges apply to public school superintendents for the 2017-18 Fiscal Year: 2017-18 Minimum Maximum Superintendent I (Up to 2,500 ADM): $4,974 $9,209 Superintendent II (2,501-5,000 ADM): $5,273 $9,758 Superintendent III (5,001-10,000 ADM): $5,586 $10,344 Superintendent IV (10,001-25,000 ADM): $5,921 $10,965 Superintendent V (> 25,000 ADM) : $6,277 $11,626 Subsection (e) prohibits the transfer of State funds from other funding categories for salaries for public school central office administrators. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.6 Title: CENTRAL OFFICE SALARIES Summary: Increases the salaries of noncertified public school employees by $1,000 for FY 2017-18. Subsection (b) directs that in lieu of the $1,000 increase provided in subsection (a), $16.9 million of the funds appropriated for noncertified personnel compensation increases shall be used by local boards of education to increase average pay rates for bus drivers on an equitable basis. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.7 Title: NONCERTIFIED PERSONNEL SALARIES Summary: Public Education Page F 47 Amends G.S. 115C-316 to add a new requirement that LEAs establish a minimum salary schedule for occupational and physical therapists that provides experience-based salary increases with experience intervals being no greater than 5 years in duration. The State-funded salaries under the schedule must remain within the salary ranges adopted by the SBE. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.8 SCHOOL BOARDS CREATE MINIMUM SALARY SCHEDULE FOR OCCUPATIONAL THERAPISTS AND PHYSICAL THERAPISTS Title: Summary: Provides a nonrecurring bonus of $385 to teachers and instructional support personnel with 25 or more years of experience in FY 2017-18 and FY 2018-19. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.8A Title: VETERAN TEACHER BONUSES Summary: Amends S.L. 2016-94, 2016 Appropriations Act, to revise 3 teacher bonus programs: 1) The Third Grade Read to Achieve Teacher Bonuses, 2) Advanced Placement (AP)/ International Baccalaureate (IB)/ Cambridge AICE (Advanced Courses) Teacher Bonuses, and 3) CTE Teacher Bonuses. Subsections (a)-(b) revise several requirements for the Advanced Courses and CTE Teacher Bonuses. First, the sections remove the requirement that a teacher must be licensed to be eligible for the bonuses, but requires that the teacher must remain teaching in the same school. The sections also expand the bonuses to charter school teachers and removes the requirement that the teacher remain teaching an Advanced or CTE course the following school year to receive the bonus. The sections also increase the maximum allowable bonus from $2,000 to $3,500 per teacher. Subsection (c) revises several requirements for the Third Grade Read to Achieve Teacher Bonuses. The section removes the requirement that a teacher must be licensed to be eligible for the bonuses and the requirement that the teacher must remain teaching third grade. However, the teacher must remain teaching in the same school to be eligible for the bonus. (S.L 2017-197, Sec. 2.10, Budget Technical Corrections, amends this section to clarify that AP/IB/Cambridge AICE and CTE bonus provisions include 2017-2018 and 2018-2019 performance.) Section: 8.8B Title: REVISE TEACHER BONUS PROGRAMS Summary: Public Education Page F 48 Directs DPI to administer the Third Grade Read to Achieve Teacher Bonus Program (Program) to qualifying teachers who have an EVAAS student index score for 3rd grade reading from the previous school year. An eligible teacher is one who meets 1 or both of the following: •I s in the top 25% of teachers in the State according to the EVAAS student growth index score for 3rd grade reading from the previous school year, or •I s in the top 25% of teachers in the teacher’s respective LEA according to the EVAAS student growth index score for 3rd grade reading from the previous school year. A qualifying teacher is an eligible teacher who remains teaching in the same LEA at least from the time that the data was collected until the bonus is paid. Of the funds appropriated for the Program, $5 million must be allocated for bonuses to eligible teachers who are in the top 25% of teachers in the State. These funds must be distributed equally among the qualifying teachers. Of the funds appropriated for the Program, $5 million must be allocated for bonuses to eligible teachers who are in the top 25% of teachers in the teacher's respective LEA. A qualifying teacher may receive a bonus for being in the top 25% of the teachers in the State and being in the top 25% of teachers in the teacher's LEA, however, neither bonus may exceed $3,500 in any given school year and no teacher may receive more than seven thousand dollars $7,000 in total bonus compensation for any given school year. The bonus (or bonuses) awarded to a qualifying teacher is in addition to any regular wage or other bonus the teacher receives or is scheduled to receive. The SBE must study the impact of the bonuses awarded under this section and under the Third Grade Reading Teacher Performance Pilot Program on teacher performance and retention. The findings of the study, the distribution of statewide bonuses among LEAs, and the distribution of bonuses within LEAs among individual schools must be reported to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the JLEOC, and FRD by March 15 of each year, beginning in 2019. This section is effective July 1, 2017, and applies to bonuses awarded in January 2019 and January 2020 based on data from the 2017-2018 and 2018-2019 school years, respectively. (S.L 2017-197, Sec. 2.10, Budget Technical Corrections, amends this section to harmonize S.L. 2017-57 8.8C with Sec. 8.8B and to expand third grade bonuses to include 2018-2019 performance.) Section: 8.8C Title: THIRD GRADE READ TO ACHIEVE TEACHER BONUS PROGRAM FOR 2018-2019 Summary: Public Education Page F 49 Creates a new bonus program in FY 2017-18 to provide $2,150 bonuses to 4th and 5th grade reading teachers who have an EVAAS growth score in the top 25% statewide, or in the top 25% within his or her LEA. If a teacher’s growth scores are in the top 25% statewide and top 25% within his or her LEA, the teacher will receive both bonuses. Growth scores are based on performance from FY 2016-17 and bonuses are payable in January 2018. Subsection (c) instructs the SBE to study the effect of the bonuses awarded under this section on teacher performance and retention. The Board is directed to report its findings to the JLEOC and FRD by March 15, 2018. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.8D FOURTH AND FIFTH GRADE READING TEACHER BONUS PROGRAM Title: FOR 2017-2018 Summary: Creates a new bonus program in FY 2017-18 to provide $2,150 bonuses to 4th through 8th grade math teachers who have an EVAAS growth score in the top 25% statewide, or in the top 25% within his or her LEA. If a teacher’s growth scores are in the top 25% statewide and top 25% within his or her LEA, the teacher will receive both bonuses. Growth scores are based on performance from FY 2016-17 and bonuses are payable in January 2018. Subsection (c) instructs the SBE to study the effect of the bonuses awarded under this section on teacher performance and retention. The Board is directed to report its findings to the JLEOC and FRD by March 15, 2018. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.8E Title: FOURTH TO EIGHTH GRADE MATH TEACHER BONUS PROGRAM FOR 2017-2018 Summary: Directs the DPI to study the compensation of bus drivers and the challenges of recruiting and retaining bus drivers. The DPI shall report its findings to JLEOC and FRD by April 1, 2018. A summary of this section is also available in the Salaries and Benefits section of the Annotated Conference Committee Report. Section: 8.10 Title: SCHOOL BUS DRIVER COMPENSATION AND EMPLOYMENT STUDY Summary: Public Education Page F 50 Department: Public Education 2017 Session: HB 528 Amends S.L. 2017-57, Appropriations Act of 2017, to add a new section 7.14 to state that it is the intent of the General Assembly to use the data collected in accordance with the reporting requirements set forth in S.L. 2017‑9, Class Size Requirement Changes, to fund a new allotment for program enhancement teachers beginning with the 2018‑2019 Fiscal Year. Section: 2.1 Title: BUDGET CHANGE: PROGRAM ENHANCEMENT TEACHER FUNDS Summary: Amends S.L. 2017-57, Sec. 7.23A, Appropriations Act of 2017, by removing the requirement that the Cybersecurity and Risk Management expansion plan must include building security programs. Section: 2.2 BUDGET CHANGE: SCHOOL CONNECTIVITY INITIATIVE/CYBERSECURITY AND RISK MANAGEMENT Title: Summary: Amends S.L. 2017-57, Sec. 7.23I, 2017 Appropriations Act, to allow the State Superintendent of Public Instruction to remove the Associate Superintendent for any reason, not just in the event of incapacity to serve. Section: 2.3 Title: BUDGET CHANGE: B-3 INTERAGENCY COUNCIL Summary: Amends S.L. 2017-57, Sec. 7.23J, Appropriations Act of 2017, to clarify that the allotment transfer report must include information on the uses of funds transferred for the 2014-2015, 2015- 2016, and 2016-2017 fiscal years. Section: 2.4 Title: TECHNICAL CHANGE: ALLOTMENT TRANSFER REPORT Summary: Amends S.L. 2017-57, Sec.7.26, 2017 Appropriations Act, to specify that EVAAS data is used to calculate school growth rather than to calculate the overall performance scores and grades. Section: 2.5 Title: TECHNICAL CHANGE: SCHOOL PERFORMANCE GRADES/ESSA COMPLIANCE Summary: Amends S.L. 2017-57, Sec.7.27, Appropriations Act of 2017, to permit DPI to carry forward up to $5 million of funds appropriated in S.L. 2015-241, 2015 Appropriations Act, for the Excellent Public Schools Act through the end of the 2017-2018 Fiscal Year. These funds shall be allotted to LEAs for the purchase of computers or other electronic devices used for the administration of the formative and diagnostic reading assessments made available by the SBE pursuant to G.S. 115C‑174.11. Section: 2.6 Title: BUDGET CHANGE: READ TO ACHIEVE DIAGNOSTIC CHANGES Summary: Public Education Page F 51 Amends S.L. 2017-57, Appropriations Act of 2017, to add a new section 7.36 that adds Halifax County Schools to the Eastern NC STEM residential program, which was inadvertently omitted. Section: 2.7 TECHNICAL CHANGE: EASTERN NORTH CAROLINA STEM/HALIFAX Title: COUNTY SCHOOLS Summary: Amends S.L. 2017-57, Appropriations Act of 2017, to add a new section 7.37 that substitutes the elimination of a vacant position that was recently filled by DPI with an alternative vacant position and operating support in an equivalent amount. Secti |
OCLC number | 779851487 |