2016 ANNOTATED CONFERENCE COMMITTEE
REPORT ON THE BASE, EXPANSION, AND CAPITAL
BUDGETS
Includes summaries of provisions in S.L. 2016-94, 2016 Appropriations Act
(H.B. 1030); S.L. 2016-123, Measurability Assessments/Budget Tech. Corr.
(H.B. 805); and other bills and select budget information.
300 N. Salisbury Street, Legislative Office Building Suites 203 & 619
Raleigh, North Carolina 27603-5925
TELEPHONE (919) 733-4910 - FAX (919) 715-3589
http://www.ncleg.net/FiscalResearch/
Foreword
This document is an annotated version of the Conference Committee Report on the
Base, Expansion, and Capital Budgets for the FY 2016-17 Fiscal Year as enacted in
S.L. 2016-94, 2016 Appropriations Act (H.B. 1030), as amended by S.L. 2016-123,
Measurability Assessments/Budget Tech. Corr. (H.B. 805).
The Annotated Report includes all legislative adjustments to the FY 2016-17 budget
enacted during the 2016 Legislative Session. Also included are summaries of other
related bills and select budgetary information.
This document and other budgetary and fiscal information are available on the
division’s website at www.ncleg.net/FiscalResearch.
The Fiscal Research Division is a nonpartisan, central staff agency that
provides fiscal and policy information to the General Assembly.
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1
Staff Assignments
Director Mark Trogdon
Support Staff Joanne Holcomb
Subcommittee/Departments/Coverage Analysts
Budget Development
House and Senate Appropriations Committees Karen Hammonds-Blanks - House
Statewide Budget Issues Brain Matteson - House
Appropriations Bill Coordination
Savings Reserve Account Evan Rodewald - Senate
Budget Technical Corrections Bill Coordination Kristin Walker - Senate
Joint Commission on Governmental Operations
Agriculture and Natural and Economic Resources
Environmental Quality Lanier McRee, Team Leader
Agriculture and Consumer Services William Childs
Commerce
Commerce-State Aid
Labor
Natural and Cultural Resources
Wildlife Resources Commission
Capital Daniel Sater
Digital Information Management Chris Black
Economy and Taxation
Revenue Estimates Rodney Bizzell, Team Leader
Finance Committees Barry Boardman
Revenue Laws Study Committee Denise Harb Canada
Economic Issues Brian Slivka
State Bond Proposals Jonathan Tart
Education
Public Instruction (K-12) Jennifer Hoffmann, Team Leader
Community Colleges Brett Altman
University of North Carolina Lisa Fox
Lauren Metayer
2
Subcommittee/Departments/Coverage Analysts
General Government
Administration Lisa Hollowell, Team Leader
Administrative Hearings Cara Bridges
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
Susan Jacobs, Team Leader
Deborah Landry
Steve Owen
Denise Thomas
Information Technology Daniel Sater
Justice and Public Safety
Public Safety Kristine Leggett, Team Leader
Judicial John Poteat
Judicial Indigent Defense Mark White
Justice
Salaries and Benefits
David Vanderweide
Timothy Dale
Transportation
Bryce Ball
Amna Cameron
Table of Contents
Staff Assignments 1
General Fund Availability Statement 3
Summary: General Fund Appropriations 4
Education
Public Education F 1
Community Colleges F 30
UNC System F 40
Health and Human Services G 1
Agriculture and Natural and Economic Resources
Agriculture and Consumer Services H 1
Labor H 12
Environment Quality H 18
Wildlife Resources Commission H 37
Commerce H 45
Commerce – State Aid H 55
Natural and Cultural Resources H 60
Natural and Cultural Resources – Roanoke Island Commission H 76
Justice and Public Safety
Public Safety I 1
Justice I 14
Judicial – Indigent Defense I 20
Judicial I 27
General Government
Military and Veterans Affairs J 1
Administrative Hearings J 7
Treasurer J 12
Fire Rescue National Guard Pensions & LDD Benefits J 18
Insurance J 23
State Board of Elections J 33
General Assembly J 38
Governor J 47
Governor Special Projects J 52
State Budget and Management J 57
State Budget and Management – Special Appropriations J 65
Auditor J 73
Housing Finance Agency J 79
Secretary of State J 86
Lieutenant Governor J 92
Administration J 98
Revenue J 109
State Controller J 119
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 3
NC General Fund Operating Appropriations (Education and HHS) AP 5
Earmarking of Unreserved Fund Balance AP 7
Savings Reserve Account AP 9
Actual Tax Revenue Collected by Major Schedules AP 11
General Fund
Availability
Statement
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FY 2016-17
1 Unappropriated Balance 175,488,544
2 Projected Over Collections FY 2015-16 (Based on May 2016 Consensus Forecast) 330,200,000
3 Projected Reversions FY 2015-16 420,815,473
4 Earmarkings of Year End Fund Balance:
5 Savings Reserve (473,616,801)
6 Repairs and Renovations (81,400,000)
7 Adjustment from Projected to Actual FY 2015-16 Beginning Unreserved Fund Balance1 208,607,416
8 Beginning Unreserved Fund Balance 580,094,632
9
10 Revenues Based on Existing Tax Structure 21,417,800,000
11
12 Non-tax Revenues
13 Investment Income 37,500,000
14 Judicial Fees 242,600,000
15 Disproportionate Share 147,000,000
16 Insurance 77,000,000
17 Master Settlement Agreement (MSA) 127,400,000
18 Other Non-tax Revenues 178,700,000
19 Subtotal Non-tax Revenues 810,200,000
20
21 Adjustment for Medicaid Transformation Fund (S.L. 2015-241) (150,000,000)
22
23 Total General Fund Availability 22,658,094,632
24
25 Adjustments to Availability: 2016 Session
26 Individual Income Tax - Increase Standard Deduction (145,000,000)
27 Sales Tax - Exempt Styrofoam Pellets for Alternative Wastewater System Materials (1,000,000)
28 Sales Tax - Limit Repair and Maintenance Tax on Airplanes and Boats (Direct Pay
Option)
(500,000)
29 Sales Tax - Repeal Automotive Service Contracts (RMI Services Taxable) (1,600,000)
30 Sales Tax - Modify Base on RMI - Removes Retail/Non-retail Distinction, Applies
Capital Improvement Test
22,400,000
31 Sales Tax - Elimination of State Contribution to Local Sales Tax Distribution 17,600,000
32 Mill Machinery Tax - Expand 1%/$80 rate to Secondary and Precious Metal Recyclers,
Metal Fabricators, and Ports
(6,000,000)
33 Adjustment for Transfer from Treasurer's Office 517,872
34 Adjustment for Transfer from Insurance Regulatory Fund 2,532,502
35 Adjustment for Transfer from NCGA Special Fund 3,000,000
36
37 Subtotal Adjustments to Availability: 2016 Session (108,049,626)
38
39 Revised General Fund Availability 22,550,045,006
40
41 Less General Fund Appropriations (22,341,437,590)
42
43 Unappropriated Balance Remaining 208,607,416
1 The adjustment is comprised of an additional $98.8 million in overcollections and an additional $108.8 million in reversions.
General Fund Availability Statement
3
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Summary:
General Fund
Appropriations
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Revised Net
Enacted Budget Recurring Nonrecurring Net FTE Appropriation
2016-17 Changes Changes Changes Changes 2016-17
Education:
Community Colleges 1,065,895,520 (8,158,427) 38,253,619 30,095,192 3.00 1,095,990,712
Public Education 8,419,444,621 230,071,120 83,859,839 313,930,959 2.00 8,733,375,580
University System 2,683,307,927 92,719,978 76,260,216 168,980,194 1.00 2,852,288,121
Total Education 12,168,648,068 314,632,671 198,373,674 513,006,345 6.00 12,681,654,413
Health and Human Services:
Central Management and Support 130,033,253 8,461,308 481,461 8,942,769 3.00 138,976,022
Aging and Adult Services 43,815,337 789,395 19,926 809,321 2.00 44,624,658
Blind and Deaf / Hard of Hearing Services 8,173,207 64,783 26,870 91,653 0.00 8,264,860
Child Development and Early Education 243,033,976 6,136,602 (12,812,385) (6,675,783) 0.00 236,358,193
Health Service Regulation 16,110,674 311,628 157,624 469,252 0.00 16,579,926
Medical Assistance 3,916,237,272 (302,373,244) (7,951,678) (310,324,922) 25.00 3,605,912,350
Mental Health, Dev. Disabilities, & Sub. Abuse Services 537,861,308 14,435,912 10,737,904 25,173,816 0.00 563,035,124
NC Health Choice 746,758 (4,611,877) 4,962,708 350,831 0.00 1,097,589
Public Health 148,298,428 2,281,537 17,356,689 19,638,226 3.00 167,936,654
Social Services 185,533,263 (309,220) 14,679,433 14,370,213 25.00 199,903,476
Vocational Rehabilitation 37,752,132 269,966 186,551 456,517 0.00 38,208,649
Total Health and Human Services 5,267,595,608 (274,543,210) 27,845,103 (246,698,107) 58.00 5,020,897,501
Justice and Public Safety:
Public Safety 1,847,365,626 40,663,119 20,486,612 61,149,731 (17.00) 1,908,515,357
Judicial Department 484,126,321 19,673,179 7,970,544 27,643,723 5.00 511,770,044
Judicial - Indigent Defense 116,629,964 2,184,842 4,356,503 6,541,345 0.00 123,171,309
Justice 52,715,592 1,228,150 4,312,286 5,540,436 3.00 58,256,028
Total Justice and Public Safety 2,500,837,503 63,749,290 37,125,945 100,875,235 (9.00) 2,601,712,738
Agriculture and Natural and Economic Resources:
Agriculture and Consumer Services 116,955,773 1,865,766 7,707,064 9,572,830 10.00 126,528,603
Commerce 57,596,128 1,047,792 19,207,619 20,255,411 7.00 77,851,539
Commerce - State Aid 18,055,810 400,000 250,000 650,000 0.00 18,705,810
Environmental Quality 82,429,609 80,161 19,686,915 19,767,076 (4.00) 102,196,685
Natural and Cultural Resources 169,289,403 1,844,203 12,939,921 14,784,124 9.10 184,073,527
Natural and Cultural Resources - Roanoke Island 523,384 0 0 0 0.00 523,384
Labor 15,822,235 178,030 120,400 298,430 (1.00) 16,120,665
Wildlife Resources Commission 10,023,496 136,774 168,834 305,608 0.00 10,329,104
Total Agriculture, Natural and Economic Resources 470,695,838 5,552,726 60,080,753 65,633,479 21.10 536,329,317
Summary of General Fund Appropriations
Fiscal Year 2016-17
2016 Legislative Session
Legislative Changes
(As amended by S.L. 2016-123, Measurability Assessments/Budget Tech. Corr.)
4
Revised Net
Enacted Budget Recurring Nonrecurring Net FTE Appropriation
2016-17 Changes Changes Changes Changes 2016-17
Summary of General Fund Appropriations
Fiscal Year 2016-17
2016 Legislative Session
Legislative Changes
(As amended by S.L. 2016-123, Measurability Assessments/Budget Tech. Corr.)
General Government:
Administration 58,664,485 1,421,868 3,922,160 5,344,028 11.20 64,008,513
Auditor 12,004,791 246,781 254,278 501,059 0.00 12,505,850
General Assembly 57,009,051 5,941,422 1,926,673 7,868,095 1.00 64,877,146
Governor 5,566,174 71,196 36,052 107,248 0.00 5,673,422
Governor - Special Projects 2,000,000 235 78 313 0.00 2,000,313
Housing Finance Agency 25,660,000 0 5,000,000 5,000,000 0.00 30,660,000
Insurance 38,355,246 857,692 1,674,810 2,532,502 3.00 40,887,748
Lieutenant Governor 677,972 20,384 5,253 25,637 0.00 703,609
Military and Veterans Affairs 7,806,254 168,632 44,715 213,347 2.00 8,019,601
Office of Administrative Hearings 5,143,413 68,598 34,698 103,296 0.00 5,246,709
Revenue 80,457,679 1,024,913 866,238 1,891,151 0.00 82,348,830
Secretary of State 11,750,695 796,216 82,697 878,913 6.00 12,629,608
State Board of Elections 6,513,363 77,707 39,305 117,012 0.00 6,630,375
State Budget and Management 7,531,408 386,157 54,606 440,763 3.00 7,972,171
State Budget and Management - Special 2,000,000 500,000 20,200,000 20,700,000 0.00 22,700,000
State Controller 22,726,386 239,742 121,264 361,006 0.00 23,087,392
Treasurer - Operations 10,348,384 (141,698) 460,706 319,008 0.00 10,667,392
Fire Rescue National Guard Pensions & LDD Benefits 21,691,299 5,197,982 0 5,197,982 0.00 26,889,281
Total General Government 375,906,600 16,877,827 34,723,533 51,601,360 26.20 427,507,960
Department of Information Technology 0 43,199,048 98,881 43,297,929 91.75 43,297,929
Statewide Reserves and Debt Service:
Debt Service:
Interest / Redemption 701,849,215 1,253,023 0 1,253,023 0.00 703,102,238
Federal Reimbursement 1,616,380 0 38,000,000 38,000,000 0.00 39,616,380
Subtotal Debt Service 703,465,595 1,253,023 38,000,000 39,253,023 0.00 742,718,618
Statewide Reserves:
Contingency and Emergency Fund 5,000,000 0 0 0 0.00 5,000,000
Compensation Bonus Reserve - Executive Branch 0 0 28,103,159 28,103,159 0.00 28,103,159
Salary Adjustment Reserve 25,000,000 0 0 0 0.00 25,000,000
OSHR Minimum of Market Reserve 12,000,000 (12,000,000) 0 (12,000,000) 0.00 0
Reserve for Future Benefit Needs 71,000,000 (867,331) 0 (867,331) 0.00 70,132,669
Workers' Compensation Reserve 21,500,543 0 0 0 0.00 21,500,543
Information Technology Reserve 21,320,843 (21,320,843) 0 (21,320,843) 0.00 0
Information Technology Fund 21,681,854 (21,681,854) 0 (21,681,854) 0.00 0
5
Revised Net
Enacted Budget Recurring Nonrecurring Net FTE Appropriation
2016-17 Changes Changes Changes Changes 2016-17
Summary of General Fund Appropriations
Fiscal Year 2016-17
2016 Legislative Session
Legislative Changes
(As amended by S.L. 2016-123, Measurability Assessments/Budget Tech. Corr.)
Job Development Investment Grants (JDIG) 71,728,126 0 (10,000,000) (10,000,000) 0.00 61,728,126
One North Carolina Fund 9,000,000 0 (417,883) (417,883) 0.00 8,582,117
Film and Entertainment Grant Fund 30,000,000 0 0 0 0.00 30,000,000
Pending Legislation Reserve 0 1,000,000 200,000 1,200,000 0.00 1,200,000
Public Schools Average Daily Membership (ADM) 107,000,000 (107,000,000) 0 (107,000,000) 0.00 0
UNC System Enrollment Growth Reserve 31,000,000 (31,000,000) 0 (31,000,000) 0.00 0
State Emergency Response and Disaster Relief Fund 0 0 10,000,000 10,000,000 0.00 10,000,000
Subtotal Statewide Reserves 426,231,366 (192,870,028) 27,885,276 (164,984,752) 0.00 261,246,614
Total Reserves and Debt Service 1,129,696,961 (191,617,005) 65,885,276 (125,731,729) 0.00 1,003,965,232
Total General Fund for Operations 21,913,380,578 (22,148,653) 424,133,165 401,984,512 194.05 22,315,365,090
Capital Improvements
Armory and Facility Development Projects 5,087,500 0 (69,000) (69,000) 0.00 5,018,500
NC National Guard Helipad Planning 0 0 69,000 69,000 0.00 69,000
Wilkes County Armory Supplement 0 0 300,000 300,000 0.00 300,000
Agriculture and Consumer Services Horse Stables 0 0 165,000 165,000 0.00 165,000
Water Resources Development Projects 0 0 6,270,000 6,270,000 0.00 6,270,000
Dupont State Recreational Forest Construction Projects 0 0 3,000,000 3,000,000 0.00 3,000,000
Camp Butner Land Buffer 0 0 250,000 250,000 0.00 250,000
NCSU Engineering Building 1,000,000 0 0 0 0.00 1,000,000
Western School of Medicine/UNC School of Medicine 0 0 8,000,000 8,000,000 0.00 8,000,000
UNC-Asheville Land Acquisition 0 0 2,000,000 2,000,000 0.00 2,000,000
Total Capital Improvements 6,087,500 0 19,985,000 19,985,000 0.00 26,072,500
Total General Fund Budget 21,919,468,078 (22,148,653) 444,118,165 421,969,512 0.00 22,341,437,590
6
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Education
Section F
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Public Education
FY 2016-17
Enacted Budget
Requirements $12,647,946,284
Receipts $4,228,501,663
Net Appropriation $8,419,444,621
Legislative Changes
Requirements $371,247,337
Receipts $57,316,378
Net Appropriation $313,930,959
Revised Budget
Requirements $13,019,193,621
Receipts $4,285,818,041
Net Appropriation $8,733,375,580
Enacted Budget 1,158.83
Legislative Changes 2.00
Revised Budget 1,160.83
Public Education
Budget Code 13510
General Fund Budget
General Fund FTE
Page F 1
Summary of General Fund Appropriations
Fiscal Year 2016-17
2016 Legislative Session
Public Education
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 8,458,379 4,146,166 4,312,213 140,000 - 140,000 8,598,379 4,146,166 4,452,213
1021 DPI - Education Innovations - 21st Century Schools 1,477,912 195,377 1,282,535 - - - 1,477,912 195,377 1,282,535
1100 DPI - Assistance to Districts and Schools 29,109,628 22,780,817 6,328,811 - - - 29,109,628 22,780,817 6,328,811
1300 DPI - Financial and Business Services 1,363,745 827,172 536,573 - - - 1,363,745 827,172 536,573
1330 DPI - Student and School Support Services 16,757,832 13,068,135 3,689,697 - - - 16,757,832 13,068,135 3,689,697
1400 Office of Early Learning 77,194,067 69,494,475 7,699,592 - - - 77,194,067 69,494,475 7,699,592
1410 NC Center for the Advancement of Teaching 3,299,279 200 3,299,079 - - - 3,299,279 200 3,299,079
1450 K-3 Assessment 2,748,986 2,748,986 - - - - 2,748,986 2,748,986 -
1500 DPI - Technology Services 11,333,967 3,668,123 7,665,844 - - - 11,333,967 3,668,123 7,665,844
1600 DPI - Curriculum, Instruction, Accountability & Tech 59,153,714 48,202,189 10,951,525 - - - 59,153,714 48,202,189 10,951,525
1640 DPI - Educator Quality and Recruitment 19,806,930 18,958,909 848,021 - - - 19,806,930 18,958,909 848,021
1660 DPI - Special Populations 46,938,021 43,708,664 3,229,357 - - - 46,938,021 43,708,664 3,229,357
1800 K-12 Classroom Instruction -SPSF 7,099,072,258 558,519,541 6,540,552,717 18,039,214 55,914,131 (37,874,917) 7,117,111,472 614,433,672 6,502,677,800
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 94,781,435 - 94,781,435 (2,500,000) - (2,500,000) 92,281,435 - 92,281,435
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 32,773,365 - 32,773,365 - - - 32,773,365 - 32,773,365
1830 SPSF - Student and School Support Services 702,051,034 202,489,369 499,561,665 (2,800,000) - (2,800,000) 699,251,034 202,489,369 496,761,665
1840 SPSF - Teacher Quality and Recruitment 459,798,944 459,798,944 - - - - 459,798,944 459,798,944 -
1860 SPSF - Special Populations 1,647,204,991 694,936,512 952,268,479 (2,349,715) - (2,349,715) 1,644,855,276 694,936,512 949,918,764
1862 NC School for the Deaf 8,507,042 237,283 8,269,759 - - - 8,507,042 237,283 8,269,759
1863 Eastern NC School for the Deaf 7,750,157 242,584 7,507,573 - - - 7,750,157 242,584 7,507,573
1864 Governor Morehead School and Preschool 5,633,038 196,114 5,436,924 - - - 5,633,038 196,114 5,436,924
1870 SPSF - LEA - Supplemental Benefits 176,995,085 - 176,995,085 - - - 176,995,085 - 176,995,085
1900 Reserves and Transfers 52,233,916 20,669,371 31,564,545 6,962,500 - 6,962,500 59,196,416 20,669,371 38,527,045
1901 Pass-through Grants 9,630,966 - 9,630,966 1,240,000 - 1,240,000 10,870,966 - 10,870,966
Department-wide Items
N/A Compensation Reserve - - - 257,738,184 N/A 257,738,184 257,738,184 N/A 257,738,184
N/A State Retirement Contributions - - - 46,843,850 N/A 46,843,850 46,843,850 N/A 46,843,850
Undesignated
N/A Department of Public Instruction - - - (250,000) - (250,000) (250,000) - (250,000)
N/A Enrollment Adjustment - - - 48,183,304 1,402,247 46,781,057 48,183,304 1,402,247 46,781,057
Total $12,647,946,284 $4,228,501,663 $8,419,444,621 $ 371,247,337 $ 57,316,378 $ 313,930,959 $13,019,193,621 $4,285,818,041 $8,733,375,580
Enacted Budget Legislative Changes Revised Budget
Page F 2
Summary of General Fund Appropriations
Fiscal Year 2016-17
2016 Legislative Session
Public Education
Enacted Revised
Fund
Code Fund Name
Total
Requirements
Net
Appropriation Receipts
Total
Requirements
1000 DPI - Executive and Administrative Functions 51.99 2.00 - 53.99
1021 DPI - Education Innovations - 21st Century Schools 34.13 - - 34.13
1100 DPI - Assistance to Districts and Schools 84.50 - - 84.50
1300 DPI - Financial and Business Services 41.00 - - 41.00
1330 DPI - Student and School Support Services 97.37 - - 97.37
1400 Office of Early Learning 86.25 - - 86.25
1410 NC Center for the Advancement of Teaching 46.50 - - 46.50
1450 K-3 Assessment 11.50 - - 11.50
1500 DPI - Technology Services 94.00 - - 94.00
1600 DPI - Curriculum, Instruction, Accountability & Tech 150.80 - - 150.80
1640 DPI - Educator Quality and Recruitment 36.09 - - 36.09
1660 DPI - Special Populations 76.70 - - 76.70
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 140.00 - - 140.00
1863 Eastern NC School for the Deaf 128.25 - - 128.25
1864 Governor Morehead School and Preschool 79.75 - - 79.75
1870 SPSF - LEA - Supplemental Benefits - - - -
1900 Reserves and Transfers - - - -
1901 Pass-through Grants - - - -
Total FTE 1,158.83 2.00 - 1,160.83
Public Education
Budget Code 13510 Legislative Changes
Page F 3
Public Education
Legislative Changes
$8,419,444,621
GENERAL FUND
2016 Annotated Conference Committee Report
FY 16-17
Total Budget Enacted 2015 Session
A. Reserve for Salaries and Benefits
1 Compensation Increase Reserve - Educators $190,947,111 R
Funds salary increases for educators paid in accordance with the statewide
teacher salary schedule as well as an experience-based step increase for
educators earning a year of creditable experience. Together, these increases
provide, on average, a 4.7% increase for educators, and increase the expected
average salary for educators from all fund sources to over $50,150 in FY 2016-
17. The changes to the teacher salary schedule provide annual salary
increases for educators earning a year of creditable service for the first 15 years
of experiences. The salary schedule retains the tier-based system for educators
with 16 or more years of creditable service. A corresponding special provision
provides additional details on the changes to the teacher salary schedule.
For all net appropriation supported State-funded positions, across all sections of
the Committee Report, the approximate revised net appropriation for salaries is
$11.4 billion, an increase of over $390 million for FY 2016-17. (S.L. 2016-94, Sec.
9.1)
Fund Code: N/A
$8,443,728
$1,610,575
2 R
NR
Compensation Increase Reserve - School-based Administrators (SBAs)
Provides funds for a 1.5% annual recurring salary increase, a 0.5% nonrecurring
bonus, and an experience-based step increase for SBAs. A corresponding
special provision provides additional details on these compensation adjustments.
For all net appropriation supported State-funded positions, across all sections of
the Committee Report, the approximate revised net appropriation for salaries is
$11.4 billion, an increase of over $390 million for FY 2016-17. (S.L. 2016-94,
Secs. 9.2, 36.14, 36.16, and 36.17)
Fund Code: N/A
Public Education Page F 4
2016 Annotated Conference Committee Report FY 16-17
$21,032,217
$7,010,739
3 R
NR
Compensation Increase Reserve - Other LEA Personnel
Provides funds for a 1.5% annual recurring salary increase and a 0.5%
nonrecurring bonus for permanent full-time State-funded LEA employees.
Corresponding special provisions provide additional details on these
compensation adjustments.
For all net appropriation supported State-funded positions, across all sections of
the Committee Report, the approximate revised net appropriation for salaries is
$11.4 billion, an increase of over $390 million for FY 2016-17. (S.L. 2016-94,
Secs. 9.5, 9.6, 36.14, 36.16, and 36.17)
Fund Code: N/A
$17,242,627
4
NR
Compensation Bonus Reserve - Non-educator LEA Employees
Provides funding for one-time merit-based bonuses for non-educators LEA
employees. Each LEA, with guidance from the State Board of Education, shall
develop policies for the allocation of merit-based bonuses. Merit-based bonuses
provided by employing agencies shall not be considered compensation for
retirement purposes. Corresponding special provisions provide additional details
on these compensation adjustments.
For all net appropriation supported State-funded positions, across all sections of
the Committee Report, the approximate revised net appropriation for salaries is
$11.4 billion, an increase of over $390 million. (S.L. 2016-94, Sec. 36.1A)
Fund Code: N/A
$1,227,599
$223,588
5 R
NR
Compensation Increase Reserve - DPI
Provides funds for a 1.5% annual recurring salary increase and a 0.5%
nonrecurring bonus for permanent full-time State employees. In addition, funds
are provided for salary increases for State agency teachers who are paid in
accordance with the Statewide teacher salary schedule. Corresponding special
provisions provide additional details on these compensation adjustments.
For all net appropriation supported State-funded positions, across all sections of
the Committee Report, the approximate revised net appropriation for salaries is
$11.4 billion, an increase of over $390 million for FY 2016-17. (S.L. 2016-94,
Secs. 36.1, 36.14, 36.15, 36.16, and 36.17)
(A related one-time, merit-based bonus item also appears in the Statewide
Reserves section of the Conference Committee Report. See page L-4, item 4.)
Fund Code: N/A
Public Education Page F 5
2016 Annotated Conference Committee Report FY 16-17
$18,594,062
$27,891,094
6 R
NR
State Retirement Contributions - School District Personnel
Increases the State’s contribution for members of the Teachers’ and State
Employees’ Retirement System (TSERS) to fund the actuarially determined
contribution and provide a 1.6% one-time cost-of-living supplement to retirees.
For all net appropriation supported State-funded positions, across all sections of
the Committee Report, the approximate revised net appropriation for members of
TSERS is $1.6 billion, an increase of $79.0 million for FY 2016-17. (S.L. 2016-94,
Secs. 26.20 and 26.21)
Fund Code: N/A
$143,478
$215,216
7 R
NR
State Retirement Contributions - DPI
Increases the State’s contribution for members of TSERS to fund the actuarially
determined contribution and provide a 1.6% one-time cost-of-living supplement to
retirees.
For all net appropriation supported State-funded positions, across all sections of
the Committee Report, the approximate revised net appropriation for members of
TSERS is $1.6 billion, an increase of $79.0 million for FY 2016-17. (S.L. 2016-94,
Secs. 26.20 and 26.21)
Fund Code: N/A
$10,000,000
8
NR
3rd Grade Reading Teacher Performance Pilot Program
Funds a new 3rd grade reading teacher performance pilot program. This 2-year
pilot program will provide bonuses to the top 25% of 3rd grade reading teachers
statewide and the top 25% of 3rd grade reading teachers within each school
district (LEA) based on each teacher's Education Value-Added Assessment
System (EVAAS) student growth index score for reading from the prior school
year. A corresponding special provision provides additional program details. The
revised net appropriation for the 3rd Grade Reading Teacher Performance Pilot
program is $10.0 million. (S.L. 2016-94, Sec. 9.7)
Fund Code: N/A
B. Technical Adjustments
9 Average Daily Membership (ADM) $46,781,057 R
Adjusts total requirements in multiple public schools funding allotments to account
for a net ADM increase of 5,875. The adjustment includes revisions to all position,
dollar, and categorical allotments.
Total allotted public schools ADM for FY 2016-17 is 1,543,518. (H.B. 1140/S.B.
885)
Fund Code: N/A
Public Education Page F 6
2016 Annotated Conference Committee Report FY 16-17
10 Noninstructional Support Personnel ($57,316,378) R
Budgets additional Lottery receipts for the noninstructional support personnel
allotment. Total requirements for this allotment remain the same at $372,266,860,
and this allotment will now be fully receipt-supported. The revised net
appropriation for noninstructional support personnel is $0.
Fund Code: 1800
11 Exceptional Children Headcount ($2,349,715) 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, 2016 headcount and does not modify per-student funding.
Fund Code: 1860
C. Public School Funding Adjustments
$4,300,000
12
NR
Advanced Placement/International Baccalaureate Teacher Bonuses
Provides funding to support a 2-year pilot program that will make a $50 bonus
payment to teachers of record for students taking either Advanced Placement
(AP) or International Baccalaureate (IB) courses and achieving a certain grade on
AP or IB examinations. Bonuses shall be awarded to teachers of Advanced
Placement courses for students who earn scores of 3 or higher on AP exams and
to teachers of IB Diploma Programme courses for students who score 4 or higher
on IB exams. The revised net appropriation for Advanced Placement/International
Baccalaureate teacher bonuses is $4.3 million. (S.L. 2016-94, Sec. 8.8)
Fund Code: 1800
$600,000
13
NR
Career and Technical Education (CTE) Teacher Bonuses
Provides funding to support a 2-year pilot program that will make a $25 or $50
bonus payment to teachers of record for students that complete a CTE class and
pass a related examination leading to industry certifications and/or credentials.
The State Board of Education (SBE) shall rank each industry certification based
on academic rigor and employment value in order to classify eligibility for $25 and
$50 teacher bonuses. The revised net appropriation for CTE teacher bonuses is
$600,000. (S.L 2016-94, Sec. 8.9)
Fund Code: 1800
14 Instructional Supplies $2,500,000 R
Provides additional support for the instructional materials, supplies and equipment
(instructional supplies) allotment. The revised net appropriation for instructional
supplies is $47.0 million. (H.B.1140/S.B. 885)
Fund Code: 1800
Public Education Page F 7
2016 Annotated Conference Committee Report FY 16-17
$126,000
15
NR
Advanced Placement Summer Professional Development Institutes
Provides support to the North Carolina AP partnership to pay for at least 1 teacher
from every LEA to participate in summer professional development institutes. The
revised net appropriation for the AP partnership is $1.6 million.
Fund Code: 1800
$4,000,000
$700,000
16 R
NR
Digital Learning Plan
Provides funds to accelerate implementation of several components of the State's
Digital Learning Plan (DLP) for public schools. Funds will support DLP
management, school and district leadership development, teacher professional
development, mobile device management and digital literacy skills evaluation.
The revised net appropriation for DLP activities is $4.7 million. (H.B. 660; S.L.
2016-94, Sec. 8.23)
Fund Code: 1800
$10,000,000
17
NR
Textbooks and Digital Materials
Provides additional funds for the textbooks and digital materials allotment. LEAs
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 $71.5 million.
Fund Code: 1800
($4,784,539)
$2,000,000
18 R
NR
At-Risk Student Supplemental Funding (At-Risk)
Reduces funding set aside to support grants to 17 after-school providers from the
at-risk allotment. The revised net appropriation for the after-school provider grant
program is $3.1 million. A related provision specifies the allocation of funds within
the after-school provider grant program. Base allotment funding to LEAs for the at-risk
allotment remains unchanged with a net appropriation of $284.8 million. The
revised net appropriation for the at-risk allotment is $287.9 million. (S.L. 2016-94,
Sec. 8.25)
Fund Code: 1800
19 Central Office Administration ($2,500,000) R
Reduces funding for the central office administration allotment by 2.6%. This
allotment supports the salary and benefits of LEA administrative personnel such
as superintendents, assistant superintendents, and finance officers. The revised
net appropriation for the central office administration allotment is $92.6 million.
Fund Code: 1810
20 Transportation ($2,000,000) R
Reduces the diesel fuel component of this allotment on the basis of adjusting the
budgeted price per gallon from $2.17 to $2.09 to reflect lower projected diesel fuel
costs. The revised net appropriation for the transportation allotment is $399.4
million. (H.B. 1140/S.B. 885)
Fund Code: 1830
Public Education Page F 8
2016 Annotated Conference Committee Report FY 16-17
($900,000)
$100,000
21 R
NR
Panic Alarms
Modifies funding to reflect the anticipated completion of the last phase of panic
alarm installation that began in FY 2013-14, as authorized by S.L. 2013-360.
Nonrecurring funds are provided to complete the last panic alarm installations in
FY 2016-17. Recurring funding will no longer be required to complete the
installation of the alarms after the end of this biennium. The revised net
appropriation for panic alarms is $100,000. (H.B. 1140/S.B. 885)
Fund Code: 1830
$1,000,000
$100,000
22 R
NR
Teacher Compensation Models and Advanced Teaching Roles
Creates a new 3-year pilot program to be administered by the SBE. The pilot will
support LEA efforts to create the organization structure and innovative
compensation methods that would allow classroom teachers to take on advanced
teaching roles. The revised net appropriation for the teacher compensation
models and advanced teaching roles pilot program is $1.1 million, $100,000 of
which is nonrecurring. (S.L. 2016-94, Sec. 8.7)
Fund Code: 1900
23 North Carolina Educational Endowment Fund $5,000,000 R
Provides funding for the North Carolina Educational Endowment Fund (Fund).
The purpose of the Fund is to support teacher compensation that is related
directly to improving student academic outcomes in the State's public schools.
The revised net appropriation for the Fund is $5.0 million. (S.L. 2016-94, Sec.
8.29)
Fund Code: 1900
D. Grants
24 Teacher Assistants Tuition Reimbursement Program $112,500 R
Provides funding for the Teacher Assistants Tuition Reimbursement program, an
initiative to provide tuition reimbursement of up to $4,500 annually for 25 teacher
assistants in Anson, Franklin, Moore, Richmond, and Scotland Counties that are
employed by those LEAs and are pursuing a college degree that will result in
teacher licensure. The revised net appropriation for the Teacher Assistants
Tuition Reimbursement program is $112,500. (S.B. 594)
Fund Code: 1900
$690,000
25
NR
Triangle Literacy Council
Provides support to the Triangle Literacy Council to establish new juvenile literacy
centers to serve court-involved or otherwise at-risk youth. The revised net
appropriation for the Triangle Literacy Council is $690,000.
Fund Code: 1901
Public Education Page F 9
2016 Annotated Conference Committee Report FY 16-17
$500,000
26
NR
Muddy Sneakers
Provides funds to Muddy Sneakers to support and expand its experiential learning
programs 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.
Fund Code: 1901
$50,000
27
NR
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.
Fund Code: 1901
F. Department of Public Instruction
($250,000)
28
NR
Department of Public Instruction
Reduces net appropriation support for DPI by 0.5%. The SBE may allocate this
reduction at its discretion, subject to the parameters of a related provision. The
revised net appropriation for DPI operations is $44.6 million.
Fund Code: N/A
$140,000
2.00
29 State Board of Education Legal Services R
Provides funding to support the establishment of an attorney and a paralegal
position to support additional requirements related to S.B. 867, 2016 Session of
the 2015 Regular Session, Protect Students in Schools. This item is contingent
upon S.B. 867 becoming law. If S.B. 867 does not become law, these funds shall
not be spent and shall revert to the General Fund. The revised net appropriation
for Legal Services would be $749,176.
(S.B. 867 did not become law and these funds will revert to the General Fund.)
Fund Code: 1000
$250,000
30
NR
Licensure System Update
Provides funding to update the DPI Online Licensure System for additional
requirements related to S.B. 867, 2016 Session of the 2015 Regular Session,
Protect Students in Schools. This item is contingent upon S.B. 867 becoming law.
If S.B. 867 does not become law, these funds shall not be spent and shall revert to
the General Fund. The revised net appropriation for Legal Services would be
$250,000.
(Technical Correction: The last sentence is incorrect. It should note that the
revised net appropriation for Licensure would be $250,000.)
(S.B. 867 did not become law and these funds will revert.)
Fund Code: 1900
Public Education Page F 10
2016 Annotated Conference Committee Report FY 16-17
$500,000
31
NR
Alternative Teacher Preparation Pilot Program
Provides funding to support up to 5 local alternative teacher preparation pilot
programs and for an independent research organization to evaluate the
effectiveness of those programs newly authorized in this Act. Up to $200,000
shall be reserved for the evaluation and at least $300,000 shall be available to
allocate equally amongst the participating pilot programs. The revised net
appropriation for the alternative teacher preparation pilot program is $500,000.
(S.B. 836; S.L. 2016-94, Sec. 8.27)
Fund Code: 1900
$230,071,120
$83,859,839
2.00
Total Legislative Changes
Total Position Changes
Revised Budget $8,733,375,580
R
NR
Public Education Page F 11
Special Provisions
Department: Public Education
2016 Session: HB 1030
Provides $3,985.53 per child for children with disabilities to each local education agency (LEA) for
the lesser of (i) all children who are identified as children with disabilities, or (ii) 12.5% of the
LEA's allotted average daily membership (ADM). (H.B. 1140/S.B. 885)
Section: 8.1
Title: FUNDS FOR CHILDREN WITH DISABILITIES
Summary
Provides $1,295.27 per child for academically and intellectually gifted children to each LEA for a
maximum of 4% of each LEA's allotted ADM for the 2016-17 school year. (H.B. 1140/S.B. 885)
Section: 8.2
Title: FUNDS FOR ACADEMICALLY GIFTED CHILDREN
Summary
Modifies the eligibility criteria for Small County Supplemental Funding to allow school districts
(LEAs) to receive funds if either the higher of the first two months total projected ADM for the
current fiscal year or the prior fiscal year would make the LEA eligible.
Section: 8.4
Title: SMALL COUNTY SUPPLEMENTAL FUNDS ELIGIBILITY
Summary
Strikes language from Section 8.39 of S.L. 2015-241 that would have sunset certain Drivers
Education provisions on December 31, 2017. As a result, these provisions will remain in force
until otherwise modified by a future General Assembly. The provisions include prohibiting LEAs
from transferring other State funds into the Drivers Education funding allotment and permitting
LEAs to waive or reduce Drivers Education program fees for students unable to pay due to
economic hardship.
Section: 8.5
Title: DRIVERS EDUCATION PROGRAM FUNDS
Summary
Public Education Page F 12
Establishes a 3-year pilot program (Pilot) to develop advanced teaching roles and organizational
models that link teacher performance and professional growth to salary increases for classroom
teachers in selected LEAs.
Subsection (a) defines a classroom teacher as a teacher who works in the classroom providing
instruction for at least 70% of the instructional day. This subsection defines the Pilot's purpose: (i)
to allow highly effective classroom teachers to be accountable for the performance of a larger
number of students or by leading a school-wide effort to implement new instructional models to
improve school-wide performance; (ii) to enable LEAs to provide salary supplements to classroom
teachers in advanced teaching roles; (iii) to enable LEAs to create innovative compensation
models that focus on classroom teacher professional growth and student outcomes; and, (iv) to
utilize local plans to establish organizational changes related to compensation to sustain evidence-based
teaching practices that can be replicated.
Subsection (b) establishes a structure for identifying and selecting Pilot participants. Pilot
proposals must be submitted by October 15, 2016 to the State Board of Education (SBE) and
must address the following facets: (i) program structure; (ii) descriptions of the advanced teaching
roles, including minimum qualifications of criteria such as advanced certifications, a rating of
accomplished on the Teacher Evaluation Standards, evidence of having exceeded expected
student growth based on 3 years of teacher evaluation data, or equivalent demonstrated mastery
of teaching skills; (iii) job responsibilities that include teaching an increased number of students
and being accountable for their performance, becoming a lead classroom teacher among a group
of teachers, leading a school-wide effort to implement data-driven instructional models, or training
that certifies the teacher as an in-house provider of professional development; (iv) description of
how the LEA will inform employees and the public on the criteria and selection for the advanced
teaching roles, continued eligibility requirements, evaluations, and movement on the proposed
new local compensation model; (v) salary supplement information; (vi) program implementation
issues, such as the number of eligible schools and teachers as well as any new compensation
model; and (vii) financial sustainability.
Subsection (c) outlines the SBE's proposal review process and requires the selection of up to 10
LEAs as follows: (i) no more than 5 LEAs with an ADM of less than or equal to 4,000; (ii) no more
than 3 LEAs with an ADM between 4,001 to 20,000; and, (iii) no more than 2 LEAs with an ADM
of 20,001 or more.
Subsection (d) requires pilots to begin in the 2017-2018 school year and finish in the 2019-2020
school year.
Subsection (e) proscribes the use of grant funds only for: (i) salary supplements for advanced
teaching roles; (ii) development of advanced teaching role plans; (iii) development of professional
development courses; (iv) transition costs associated with designing and implementing advanced
teaching role models; and (v) development of the design and implementation of compensation
plans that focus on teacher professional growth and student outcomes.
Subsection (f) requires the SBE to contract with an independent research organization to evaluate
the Pilot. Beginning in October 2017, the independent research organization must report annually
to the SBE on all aspects of the implementation and evaluation of the Pilot until its completion. It
must also evaluate the existing Project LIFT program in the Charlotte-Mecklenburg Public
Schools and the proposed Project Advance in the Chapel Hill-Carrboro City Schools if that
program is implemented. The SBE must provide the annual reports to the General Assembly.
Subsection (g) permits the Department of Public Instruction (DPI) to use up to $200,000 for the
SBE to contract with an independent research organization for the evaluation.
Section: 8.7
Title: TEACHER COMPENSATION MODELS AND ADVANCED TEACHING ROLES
Summary
Public Education Page F 13
Subsection (h) declares the intent of the General Assembly to appropriate $9,800,000 in the 2017-
2018 fiscal year to be used for grants for the selected LEAs.
Subsection (i) authorizes LEAs that receive grants under this Pilot to exceed the maximum class
size requirements for kindergarten through 3rd grade. (H.B. 1140/S.B. 885)
Directs the SBE to establish an Advanced Placement/International Baccalaureate Pilot Program
(Pilot) to reward advanced course teacher performance and encourage student learning.
Subsection (a) authorizes the Pilot for 2 years, with awards made in FY 2016-17 and FY 2017-18
based on prior year data. A bonus of $50 will be awarded to a teacher for every student the
teacher instructs in an advanced course that either scores 3 or higher on the College Board
Advanced Placement Examination or 4 or higher on the International Baccalaureate course
examination. No teacher may receive more than $2,000 in bonus awards in any given school
year and, to be eligible for awards, an advanced course teacher must remain employed teaching
advanced courses in the same LEA in which the teacher taught the prior school year.
Subsection (b) defines an "advanced course" as an Advanced Placement or International
Baccalaureate Diploma Programme course for the purposes of this provision.
Subsection (c) specifies that these bonuses are not considered compensation for retirement
purposes.
Subsection (d) directs the SBE to report to the President Pro Tempore of the Senate, the Speaker
of the House, and the Fiscal Research Division on the number of Pilot bonuses awarded by
March 15, 2017 and March 15, 2018. In addition, the SBE shall study the effect of the pilot
program on advanced course teacher performance and retention. The SBE shall report its
findings to the President Pro Tempore of the Senate, the Speaker of the House, the Fiscal
Research Division, and the Joint Legislative Education Oversight Committee by March 15, 2018.
Subsection (e) instructs the Director of the Budget to include sufficient nonrecurring funds to
support the Pilot in the base budget for FY 2017-18.
Subsection (f) sunsets the Pilot authorization on June 30, 2018.
Section: 8.8
ADVANCED PLACEMENT/INTERNATIONAL BACCALAUREATE TEACHER BONUS PILOT
PROGRAM
Title:
Summary
Public Education Page F 14
Directs the SBE to establish an Industry Certifications and Credentials Teacher Bonus Pilot
Program (Pilot) to reward the performance of teachers who instruct students earning approved
industry certifications or credentials.
Subsection (a) authorizes the Pilot for 2 years, with awards made in FY 2016-17 and FY 2017-18
based on prior year data. A bonus of $25 or $50 will be awarded to a teacher for every student
the teacher instructs in a course that leads to the attainment of an industry certification or
credential. No teacher may receive more than $2,000 in bonus awards in any given school year
and, to be eligible for awards, advanced course teachers must remain employed teaching
advanced courses in the same local school administrative unit in which the awards were earned
due to prior school year performance. The Department of Commerce is required to assign a
value ranking for each industry certification and credential in consultation with the SBE. Half of
the ranking shall be based on academic rigor and half on employment value. The ranking will
determine whether a credential or certification is worth $25 or $50 for the purpose of the Pilot.
Subsection (b) specifies that these bonuses are not considered compensation for retirement
purposes.
Subsection (c) directs the SBE to report to the President Pro Tempore of the Senate, the Speaker
of the House and the Fiscal Research Division on the number and type of Pilot bonuses awarded
by March 15, 2017 and March 15, 2018. In addition, the SBE shall study the effect of the pilot
program on teacher performance and retention. The SBE shall report its findings to the President
Pro Tempore of the Senate, the Speaker of the House, the Fiscal Research Division, and the
Joint Legislative Education Oversight Committee by March 15, 2018.
Subsection (d) instructs the Director of the Budget to include sufficient nonrecurring funds to
support the Pilot in the base budget for FY 2017-18.
Subsection (e) sunsets the Pilot authorization on June 30, 2018.
Section: 8.9
INDUSTRY CERTIFICATIONS Title: AND CREDENTIALS TEACHER BONUS PILOT PROGRAM
Summary
Allows Alamance-Burlington Early College, Alexander Early College, Cabarrus Early College of
Technology, Camden Early College, Chatham County School of Science and Engineering, City of
Medicine Cooperative Innovative High School, Gaston Early College High School, Hillside New
Tech Cooperative Innovative High School, Johnston County Career and Technical Academy,
Northampton County New Tech Early College, Person Early College for Innovation and
Leadership, Stanly County School of Engineering and Design, and Wayne School of Engineering
at Goldsboro High School to operate as cooperative innovative high schools beginning with the
2016-2017 school year.
Section: 8.11
Title: CERTAIN CIHS OPERATING WITHOUT ADDITIONAL FUNDS
Summary
Public Education Page F 15
Directs LEA superintendents to require that parents of hearing or visually impaired children be
asked for written consent to release contact information and information regarding their child and
the child's impairment to the Governor Morehead School for the Blind, the Eastern North Carolina
School for the Deaf, and the North Carolina School for the Deaf (residential schools) so that the
parents can receive more information on the services offered by those schools. The
superintendents must report the names and addresses of parents who provide the written consent
to the directors of the residential schools and include information on the type of disability of each
child. This report must also be submitted to DPI. This information must be kept confidential by
the receiving schools; however, the parents who provided written consent and whose information
was in the report may be contacted by the schools receiving the reports.
This section also provides that the residential schools may enroll a foreign exchange student and
charge the student the full, unsubsidized per capita cost of education at the school for the period
of the student's attendance. If a school seeks to enroll foreign exchange students, it must first
submit a plan to the SBE for approval. The plan must address the proposed costs to be charged
to the students for attendance and information on how the school will comply with federal laws
governing foreign exchange students.
Section: 8.12
REPORT FOR SCHOOLS FOR STUDENTS WITH VISUAL AND HEARING
IMPAIRMENTS/FOREIGN EXCHANGE STUDENTS
Title:
Summary
Modifies the existing authority for Virtual Charter Schools, first established in S.L. 2014-100, Sec.
8.35, Appropriations Act of 2014. The changes allow virtual charter schools to administer tests to
multiple grade levels at the same time and in the same location. The requirement for the
percentage of a virtual charter school's teaching staff that must reside in the State is reduced
from 90% to 80%.
Additionally, this section modifies the criteria for measuring a virtual charter school's student
withdrawal rate to exclude the following types of students in measuring the school's withdrawal
rate: (i) students enrolled in a school with the intent expressed prior to enrollment of only being
enrolled for a finite period of time within the school year; (ii) students who regularly failed to
participate in courses and are withdrawn under the procedures adopted by the school; (iii)
students no longer qualified under State law to attend a North Carolina public school, including
relocation to another state; (iv) students who withdraw from school because of a family, personal,
or medical reason, and notifies the school of the reason for withdrawal; and, (v) students who
withdraw from school within the first 30 days following the date of enrollment.
This section became effective July 1, 2016, and applies beginning with the 2016-2017 school year
Section: 8.13
Title: VIRTUAL CHARTER SCHOOL CHANGES
Summary
Requires the SBE to collaborate with the Friday Institute for Educational Innovation at North
Carolina State University (Friday Institute) to develop a plan to modernize systems used by DPI to
manage and deliver funds and technical support services to LEAs and charter schools. The SBE
must report on the modernization plan by May 15, 2017. The report will be submitted to the Joint
Legislative Education Oversight Committee.
Section: 8.15
Title: SCHOOL BUSINESS SYSTEM MODERNIZATION
Summary
Public Education Page F 16
Clarifies the permissible uses of funds generated by a LEA's conversion of State-funded
classroom teacher positions for purposes related to visiting international exchange teachers
(VIETs). The converted funds may be used to provide VIETs with salaries commensurate with
their experience levels, to provide any State-approved bonuses, and to cover costs associated
with supporting VIETs, including programming and related activities, background checks, medical
coverage, and other program administration services in accordance with federal regulations for
the Exchange Visitor Program.
Section: 8.16
Title: INTERNATIONAL EXCHANGE TEACHER FUNDS
Summary
Requires DPI to conduct a study on cybersecurity in all of the State's public schools. The
Department must report the results of the study by December 15, 2016 to the Speaker of the
House of Representatives, the President Pro Tempore of the Senate, the House Principal Clerk,
and the Senate Principal Clerk.
Section: 8.17
Title: K-12 CYBERSECURITY STUDY
Summary
Modifies, for the next 3 school years, the scale used to determine School Performance Grades
(SPG) from a 10-point to a 15-point scale. The revised scale is as follows:
-A school performance score of at least 85 is a SPG of A.
-A school performance score of at least 70 is a SPG of B.
-A school performance score of at least 55 is a SPG of C.
-A school performance score of at least 40 is a SPG of D.
-A school performance score of less than 40 is a SPG of F.
(H.B. 1140/S.B. 885, H.B. 358)
Section: 8.19
Title: MODIFY SCHOOL PERFORMANCE GRADES SCALE FOR THREE SCHOOL YEARS
Summary
Public Education Page F 17
Reauthorizes, through Subsection (a), the SBE to allow the Hickory Public Schools and the
Newton-Conover City Schools to establish and implement a pilot program (Pilot) to increase the
high school dropout age from 16 to 18. The Pilot was initially authorized in Sec. 8.49 of S.L. 2013-
360, Appropriations Act of 2013, and its authorization expired at the end of FY 2014-15.
Rutherford County Schools is newly added as an eligible Pilot participant.
Subsection (b) outlines the responsibility in the Pilot LEAs for a student's parent, guardian or
custodian to compel the student's school attendance. 18 year-old students are also subject to this
requirement. If it is determined that a parent, guardian, custodian, or 18-year old student has not
made a good-faith effort to compel attendance, a principal or his/her designee must notify the
district attorney and, if applicable, the director of social services of the county where the student
resides.
Subsection (c) requires local boards of education participating in the Pilot to prescribe specific
rules for students who are 18 years old to be excused from compulsory attendance, such as
enlistment as a member of the Armed Forces.
Subsection (d) provides that a violation of the compulsory attendance provisions in subsections
(b) and (c) for students in Pilot school districts is punishable as a Class 1 misdemeanor.
Subsection (e) holds that if a court finds that the relevant parties are making a good faith effort to
comply with the compulsory attendance law then the court shall find and state what help is
needed for the student or family to enable compliance with the attendance requirements of the
Pilot.
Subsection (f) requires, to the extent possible, Hickory Public Schools and Newton-Conover City
Schools to partner with Catawba Valley Community College and Rutherford County Schools to
partner with Isothermal Community College in administering the Pilot.
Subsection (g) requires the Pilot school districts to report to the Joint Legislative Education
Oversight Committee, House Appropriations Subcommittee on Education, and the Senate
Appropriations Committee on Education/Higher Education on or before January 15, 2018 and by
January 15 of each even-numbered year thereafter until the end of the pilot programs. The report
must address graduation rates in the Pilot districts, teen crime statistics in Catawba and
Rutherford Counties, violations of compulsory attendance laws in Pilot LEAs, and other relevant
data.
Subsection (h) prohibits the SBE from authorizing this pilot program in Catawba County without
the receipt of a copy of a joint resolution adopted by the boards of education for Hickory Public
Schools and Newton-Conover City Schools setting forth a date to begin establishment and
implementation of the pilot program. A similar prohibition is included for Rutherford County and it
requires a resolution of the Rutherford County board of education setting forth a date to begin
establishment and implementation of the pilot program before the SBE may grant Pilot approval.
Section: 8.21
PILOT PROGRAM TO RAISE THE HIGH SCHOOL DROPOUT AGE FROM SIXTEEN TO
EIGHTEEN
Title:
Summary
Public Education Page F 18
Requires the SBE to collaborate with the Friday Institute in implementing the Digital Learning
Plan. Funds must be used to support the following activities: (i) coordination and implementation
of professional development programs that support teachers and school administrators in
transitioning to digital-age learning; (ii) management of statewide cooperative purchasing of
content and shared statewide resources for teachers to use in lesson planning and formative
student assessments; (iii) development of infrastructure maintenance and support protocols; (iv)
modification and updating of State policies to provide support and flexibility for local digital
learning innovation; (v) development and maintenance of a continuous improvement process; and
(vi) creation of assessments for technological and pedagogic skills and the identification of best
practices for those assessments.
Section: 8.23
Title: DIGITAL LEARNING PLAN FUNDS
Summary
Requires local boards of education to report to the SBE on the start and release time for each
school as part of the Uniform Education Reporting System's reporting requirements. Local
boards of education must submit an initial report by October 1, 2016, on start and release times
for the 2011-2012 through 2016-2017 school years.
Section: 8.24
Title: LOCAL BOARD REPORT ON SCHOOL START AND RELEASE TIMES
Summary
Modifies a competitive grant program for extended learning time programs that was initiated in
Section 8.19 of S.L. 2014-100, Appropriations Act of 2014 and modified in S.L. 2015-241,
Appropriations Act of 2015. Of the funds appropriated for the At-Risk Student Services Allotment,
the SBE shall use up to $3,215,371 for the 2016-17 fiscal year for the After-School Quality
Improvement Grant Program. These funds must be used first to provide a 2nd year grant to
grantees first approved in FY 2015-16 for an After-School Quality Improvement Grant. Remaining
funds shall be provided to grantees first funded in FY 2014-15.
Section: 8.25
AFTER SCHOOL QUALITY IMPROVEMENT COMPETITIVE GRANT FUNDS FOR THIRD YEAR
FOR CERTAIN RECIPIENTS
Title:
Summary
Public Education Page F 19
Directs the State Board of Education to establish up to 5 local alternative teacher preparation
programs (LATP programs) to be administered by local boards of education.
Subsection (a) directs the State Board of Education to establish a Request for Proposals (RFP)
for up to five LATP programs administered by local boards of education to prepare, support, and
recommend initially licensed lateral entry teachers for continuing licensure.
Subsection (b) states that the SBE must issue the RFP to local boards of education by September
15, 2016. The RFP must include the following criteria:
- Program of study requirements which state that the LATP must provide 150 contact hours of
pedagogy and content for continued licensure in the initially licensed teacher's area of licensure
that is comparable in quality to the instruction required for a traditional teacher preparation
program. Evidence should be provided as to relevant partnerships with institutions of higher
education.
- Mentoring and support requirements that provide for at least 150 contact hours with mentor
teachers, classroom coaching, and periodic evaluations with timely feedback to each individual in
the program over the initially licensed teacher's first year of employment.
- Minimum program size such that the LATP program is administered by a local board of
education with a minimum student population of 20,000 or higher or by a coalition of local boards
of education that together have a minimum student population of 20,000 or higher.
Local boards of education must submit proposals to the SBE by January 6, 2017 with detailed
information on the estimated costs, including a cost per teacher participant and anticipated
funding sources for the operation of the LATP program.
Subsection (c) directs the SBE to select up to 5 proposals by March 15, 2017 based on program
quality, viability, and use of evidence-based principles in program design.
Subsection (d) states the selected LATP programs must be implemented beginning with the 2017-
18 school year and end with the 2021-22 school year.
Subsection (e) details annual benchmark standards for the selected LATP programs. These
benchmark standards include:
- Completion rates of no less than 70% of initial enrollees;
- M inimum contact hour requirements and other program elements contained in the approved
proposal;
- Demonstration of an increase in retention of lateral entry teachers over the previous year's
retention rate; and
- Full financing of the program, through public or private funds, by the local board of education
based on the per-teacher cost estimate contained in the approved proposal.
LATP programs that fail to meet any of the benchmark standards must be terminated by the SBE.
Subsection (f) requires the SBE to contract with an independent research organization to evaluate
how the LATP programs have impacted:
- Recruitment of lateral entry teachers into the classroom;
- Retention rates for lateral entry teachers beyond initial licensure;
- Quality of classroom instruction by lateral entry teachers prepared through the LATP program as
compared to those prepared by traditional teacher education programs as demonstrated by
multiple measures including student performance;
- Teacher vacancy rates in local school administrative units participating in the LATP program as
compared to similarly situated local school administrative units; and
- Funding mechanisms used to support the LATP program, including sources and stability of
Section: 8.27
Title: ALTERNATIVE TEACHER PREPARATION
Summary
Public Education Page F 20
funding.
The independent research organization must report annually to the SBE beginning October 15,
2017 on the progress of the local boards of education in implementing the LATP programs. The
independent research organization shall submit an initial report by October 15, 2020 and a final
report by October 15, 2022 on all aspects of implementation and evaluation.
Subsection (g) requires DPI to issue licenses to all individuals who successfully complete LATP
programs, are recommended by the local board of education, and otherwise meet licensure
requirements.
Subsection (h) states that an initially licensed lateral entry teacher who leaves a local board of
education with a LATP program before completing the program and is hired by another local
board of education, that teacher must receive credit for any work successfully completed in the
LATP.
Subsection (i) states that DPI may use up to $200,000 in the 2016-2017 fiscal year for the SBE to
contract with an independent research organization, and the remaining appropriations must be
used to award one-year grants to each LATP program selected for implementation purposes with
the awards being a proportional amount of the funds available. (S.B. 836)
Public Education Page F 21
Establishes a Teacher Assistant Tuition Reimbursement Pilot Program (Pilot) which provides
tuition assistance awards to part-time or full-time teacher assistants to pursue a college degree
that will result in teacher licensure.
Subsection (a) establishes the Pilot for the local boards of education of the Anson County,
Franklin County, Moore County, Richmond County, and Scotland County school administrative
units. This Pilot provides tuition assistance awards to part-time or full-time teacher assistants
working in these LEAs to pursue a college degree that will result in teacher licensure. The tuition
assistance may be provided for part-time or full-time coursework and academic leave may be
granted for coursework that can only be taken during working hours. A teacher assistant who
receives an award under the Pilot must fulfill the student teaching requirements of an educator
preparation program by working in the teacher assistant's employing LEA.
Subsection (b) authorizes each local board of education in the pilot program to select up to 5
teacher assistants to receive an award of up $4,500 per academic year for a period of up to 4
years to be used towards the cost of tuition and fees to attend an educator preparation program.
Priority for the awards must be given to teacher assistants who received a tuition assistance
award for the previous academic year and who are making satisfactory academic progress
towards achieving teacher licensure. The local board of education must set the criteria for the
application and selection process for the tuition assistance awards but the criteria must include
the following:
- The teacher assistant must be employed by the local board of education in the LEA.
- The teacher assistant must be enrolled or provide a statement of intent to enroll in an accredited
institution of higher education in the State with an educator preparation program approved by the
State Board of Education.
- The teacher assistant must be a resident of the State.
Subsection (c) requires the local board of education to have a memorandum of understanding
with the institution of higher education in which a recipient of the award is enrolled that includes
the procedures for the following:
- Remittance of the award from the local board of education to the institution of higher education;
- Endorsement of the funds awarded to the recipient to the institution of higher education for
deposit into the account of the institution; and
- Return of a pro rata share of funds to the local board of education if the recipient withdraws
before the end of the term or the employment with the local board is terminated.
Subsection (d) requires the participating local boards of education to report to the Joint Legislative
Education Oversight Committee by September 1, 2017 and annually thereafter on the amount of
funding provided to teacher assistants, the number of teacher assistant recipients who achieved
teacher licensure and the period of time from the issue of an initial tuition assistance award to the
time of achieving licensure, and the number of recipients who remained employed in the LEA
after achieving teacher licensure. (S.B.594)
Section: 8.29
TEACHER ASSISTANT TU Title: ITION REIMBURSEMENT PILOT PROGRAM
Summary
Public Education Page F 22
Modifies Sec. 8.37 of S.L. 2015-241, Appropriations Act of 2015, to expand fund sources and
positions DPI may not reduce or transfer while implementing budget reductions for the 2016-17
fiscal year. These newly designated fund sources and positions include the Read to Achieve
Program and the North Carolina School Connectivity Program. The provision additionally requires
DPI to transfer $50,000 to the Office of Administrative Hearings (OAH) to be allocated to the
Rules Review Commission to pay for any litigation costs incurred in the defense of North Carolina
State Board of Education v. the State of North Carolina and The Rules Review Commission.
These funds do not revert at the end of the 2016-17 fiscal year and remain available to OAH
during the 2017-18 fiscal year.
Section: 8.30
Title: USE OF DEPARTMENT OF PUBLIC INSTRUCTION BUDGET REDUCTIONS
Summary
Modifies G.S. 115C-105.39 to allow school superintendents to recommend a principal be retained
in a low-performing school if certain criteria are met.
Subsection (a) allows the superintendent of a local school administrative unit, after the initial
identification of a school as low-performing by the State Board of Education, to recommend a
principal be retained in the same position without a plan for remediation only if the principal has
been at the same school for less than 2 years, or the principal has been at the school 2 years or
more and the school has met student growth and has improved student achievement scores for
the prior school year.
Subsection (b) states that this provision becomes effective in the 2016-17 school year.
Section: 8.31
Title: REMEDIATION PLAN FOR PRINCIPALS IN LOW PERFORMING SCHOOLS
Summary
Public Education Page F 23
Modifies several existing public education laws.
Section 8.32.(a) modifies G.S. 115C-12 to require the SBE to provide written notification to the
General Assembly of its intent to conduct a mandatory student or parent survey either statewide
or in any LEA, as well as a copy of the survey. DPI must also notify superintendents of plans to
conduct a parent or student survey in an LEA, and provide an opportunity for feedback prior to
administration of the survey.
Section 8.32.(b) modifies G.S. 115C-174.12 to require local boards of education to notify the SBE
by September 1 annually of any local testing to be administered in the LEA, a calendar of those
tests, and the source of funds for the local testing program. The SBE shall submit a report to the
Joint Legislative Education Oversight Committee (JLEOC) by October 15 annually on statewide
administration of the testing program and a summary of local testing programs.
Section 8.32.(c) modifies Article 10 of Chapter 115C of the General Statutes to requires the SBE
to develop minimum criteria for qualifications of adjunct instructors in each career and technical
education career cluster. Local boards of education may contract with qualified individuals to
serve as adjunct instructors on an annual or semester basis. These individuals may be employed
no more than 10 hours a week, are subject to a criminal history check, are not required to hold or
apply for licensure as a teacher, and must have completed the preservice training required for
lateral entry teachers.
Section 8.32.(d) modifies G.S. 115C-296(b)(1)b. to require that all teachers employed by a local
board of education show evidence of a rating of at least proficient on the teacher's most recent
annual evaluation to maintain a continuing license. A teacher who does not satisfy this
requirement, but has been placed on a mandatory improvement plan, may receive an initial
degree license if the teacher satisfies other licensure requirements.
Section 8.32.(e) modifies G.S. 115C-296(b)(1) to require applicants with an out-of-state license to
provide evidence of that teacher's effectiveness, when available, as measured by the state of
current licensure, including any growth measures. Out-of-state license applicants who provide
this information receive priority in review of applications over out-of-state license applicants who
do not provide this information. An out-of-state license applicant that does not include the
information is only eligible for an initial degree license.
Section 8.32.(f) modifies G.S. 115C-296(f) to require that the criteria for teachers to be
participants in the mentor teacher training program include the requirement that mentor teachers
be rated as at least "accomplished" on the North Carolina Teacher Evaluation System and have
met expectations for student growth.
Section 8.32.(g) modifies G.S. 115C-296.11(b)(4) to require that students in educator preparation
programs have field experiences in every semester, and that the number of hours increase in
each semester prior to the student's residency or internship. All programs must also include a
field experience in a low-performing school for at least one semester.
Section 8.32.(h) modifies G.S. 115C-333(a) to require that teachers that have been licensed for
less than 2 years must be observed at least three times annually by the principal or the principal's
designee, at least once annually by a teacher, and at least once annually by a principal. At least 2
of those observations must be conducted in the first semester of the school year, and if
practicable, at least one observation in the first grading period of the school year.
Section 8.32.(i) modifies G.S. 115C-333.1(a) to require all teachers who are assigned to
schools that are not designated as low-performing and who have been licensed as a teacher
Section: 8.32
SCHOOL NOTIFICATION REQUIREMENTS/TEACHER EMPLOYMENT/LICENSURE
CHANGES AND BEGINNING TEACHER SUPPORT
Title:
Summary
Public Education Page F 24
for less than 2 years shall be observed at least three times annually by the principal or the
principal's designee, at least once annually by a teacher, and at least once annually by a
principal. At least 2 of those observations must be conducted in the first semester of the school
year, and if practicable, at least one observation in the first grading period of the school year.
Section 8.32.(j) makes section 8.32 effective the date the act becomes law.
Modifies G.S. 115C-301(c) to restate the FY 2016-17 funded class size allotment ratio for
kindergarten through third grade. These ratios are as follows:
- Kindergarten: 1 teacher per 18 students
- First grade: 1 teacher per 16 students
- Second grade: 1 teacher per 17 students
- Third grade: 1 teacher per 17 students
Section: 8.33
Title: K-3 CLASS SIZE ALLOTMENT RATIOS
Summary
Public Education Page F 25
Sets the monthly minimum salary schedule (salary schedule) for the 2016-17 school year for
certified personnel in North Carolina public schools.
Subsection (a) sets the salary schedule for the 2016-17 school year for licensed public school
personnel who are classified as teachers and hold a Bachelor’s degree.
Subsection (b) lists 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 six-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%. A
salary schedule showing the Bachelor’s, NBPTS, Master’s, and NBPTS Master’s schedules is
provided at the end of this summary.
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) states that teachers not otherwise receiving a salary increase from the applicable
amount on the new salary schedule are held harmless at the amount received in FY 2014-15,
including any State-provided bonuses, if applicable.
Subsection (g) includes instructional support personnel within the term "teacher."
Subsection (h) repeals Section 9.1 of S.L. 2015-241, which set the teacher salary schedule for FY
2015-16.
Subsection (i) outlines the General Assembly’s intended "A" salary schedule to be implemented
by FY 2018-19.
A summary of this section is also available in the Salaries and Benefits section of the Annotated
Conference Committee Report.
Section: 9.1
Title: TEACHER SALARY SCHEDULE
Summary
Public Education Page F 26
Establishes the minimum monthly salary schedules and compensation policies for school-based
administrators, i.e. assistant principals and principals (SBAs).
Subsection (a) sets the minimum monthly salary schedule for the 2016-17 school year for SBAs.
Subsections (b) and (c) define the appropriate classification and experience-based step
placement on the salary schedule for SBAs, except for principals at alternative and cooperative
innovative high schools. Classification is based on the number of State-funded teachers and
assistant principals supervised by the SBA. The beginning classification for principals at
alternative and cooperative innovative high schools shall be the Principal III level except for
principals at these schools who supervise 33 or more teachers and assistant principals; these
principals shall be classified in the same manner as principals at traditional public schools.
Placement on the experience-based step schedule is based on total number of years of
experience as a certified employee of the public schools with an additional step for every three
years of experience as a principal on or before June 30, 2009. SBAs earning salary increases in
FY 1997-98 through FY 1999-2000 for improvement in student performance or maintaining a safe
and orderly school continue to receive those bonuses.
Subsections (d) and (e) maintain the monthly salary supplements and longevity payments for
SBAs. SBAs with a six-year degree receive a monthly supplement of $126 and those with a
doctoral degree receive $253 monthly. Longevity continues at the rates provided to State
employees under the North Carolina Human Resources Act.
Subsection (f) guarantees that a principal reassigned to a higher or lower classification due to
being transferred to a school with a different number of State-allotted teachers shall be placed on
the salary schedule as if the principal’s entire career had been served at the job classification of
the new school.
Subsection (g) requires that participants in an approved full-time master’s in-school administration
program receive up to a 10-month stipend, which shall not exceed the difference between the
beginning salary of an assistant principal plus program costs (tuition, fees, and books) and any
fellowship funds received.
Subsection (h) requires administrators with a one-year provisional assistant principal’s certificate
to be placed at the entry-level salary for an assistant principal or the appropriate step on the
teacher salary schedule, whichever is higher.
Subsection (i) repeals Sec. 9.2 of S.L. 2015-241 which set SBA salaries for FY 2015-16.
A summary of this section is also available in the Salaries and Benefits section of the Annotated
Conference Committee Report.
Section: 9.2
Title: SCHOOL-BASED ADMINISTRATOR SALARY SCHEDULE
Summary
Public Education Page F 27
Modifies G.S. 115C-285(a) to allow all teachers who become assistant principals or principals to
be paid as teachers if the salary on the teacher salary schedule is higher than the salary on the
SBA schedule regardless of a break in service.
Subsection (a) modifies G.S. 115C-285(a) to ensure that a teacher who becomes an assistant
principal or a principal, regardless of any break in service, will be paid, on a monthly basis, at least
as much as he or she would earn as a teacher.
Subsection (b) clarifies that salary increases due to this section do not apply to work performed
prior to July 1, 2016.
A summary of this section is also available in the Salaries and Benefits section of the Annotated
Conference Committee Report.
Section: 9.3
NO PAY LOSS FOR BREAK Title: IN SERVICE OR FOR TEACHERS WHO BECOME PRINCIPALS
Summary
Creates a study committee to study and make recommendations on school-based administrator
pay.
Subsection (a) establishes the study committee and states that the Committee shall consist of
three members of the House of Representatives and three members of the Senate.
Subsection (b) outlines the four items the Committee is directed to study.
Subsection (c) provides administrative details relevant to the Committee and its meetings.
Subsection (d) directs the Legislative Services Officer and the Directors of Legislative Assistants
in both the House of Representatives and the Senate to assign staff to support this Committee.
Subsection (e) requires the Committee to submit a final report on the results of the study on or
before December 31, 2016 and states that the Committee shall terminate on December 31, 2016
or upon submission of its report, whichever occurs first.
A summary of this section is also available in the Salaries and Benefits section of the Annotated
Conference Committee Report.
Section: 9.4
Title: JOINT LEGISLATIVE STUDY COMMITTEE ON SCHOOL-BASED ADMINISTRATOR PAY
Summary
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 2016-17. Salary ranges are 1.5%
higher than in FY 2015-16.
A summary of this section is also available in the Salaries and Benefits section of the Annotated
Conference Committee Report.
Section: 9.5
Title: CENTRAL OFFICE SALARIES
Summary
Public Education Page F 28
Increases the salaries of noncertified public school employees by 1.5% for FY 2016-17.
A summary of this section is also available in the Salaries and Benefits section of the Annotated
Conference Committee Report.
Section: 9.6
Title: NONCERTIFIED PERSONNEL SALARIES
Summary
Creates a two-year pilot program to provide bonuses to 3rd grade reading teachers and
appropriates $10 million nonrecurring for these bonuses.
Subsection (a) directs that $5 million of the funds appropriated for the program be used to provide
bonuses for third grade teachers who are in the top 25% of teachers in the State according to
Education Value-Added Assessment System (EVAAS) student growth index scores for the prior
year. The other $5 million appropriated for this program is to be used for bonuses for third grade
teachers who are in the top 25% of teachers in their respective school districts (LEA). The LEA
funds are to be split amongst school districts based on ADM. Charter and regional school
teachers are not eligible to receive the LEA-based bonus but are eligible for the Statewide bonus.
This subsection further states that teachers are eligible for both bonuses, but to be eligible for the
bonus, the teacher must remain as a third grade teacher in the same LEA from the school year
that data is collected until the year in which the bonus is paid. The bonuses are to be paid in
January 2017 (based in 2015-16 school year EVAAS scores) and January 2018 (based in 2016-
17 school year EVAAS scores).
Subsection (b) states that these bonuses are not considered compensation for retirement
purposes.
Subsection (c) requires the State Board of Education to report on and study the results of the third
grade reading teacher pilot program and to report on the distribution of funds in FY 2016-17 to the
President Pro Tempore of the Senate, the Speaker of the House of Representatives, and FRD by
March 1, 2016. A second report on the effectiveness of the pilot program is due to the President
Pro Tempore of the Senate, the Speaker of the House of Representatives, the Joint Legislative
Education Oversight Committee, and FRD by March 1, 2018.
Subsection (d) instructs the Director of the Budget to include nonrecurring funding required to
support the program in the Base Budget for FY 2017-18. The program is funded with $10 million
nonrecurring in FY 2016-17.
Subsection (e) sunsets this program on June 30, 2018.
A summary of this section is also available in the Salaries and Benefits section of the Annotated
Conference Committee Report.
Section: 9.7
Title: THIRD GRADE READING TEACHER PERFORMANCE PILOT PROGRAM
Summary
Public Education Page F 29
Community Colleges
FY 2016-17
Enacted Budget
Requirements $1,480,340,859
Receipts $414,445,339
Net Appropriation $1,065,895,520
Legislative Changes
Requirements $13,618,455
Receipts ($16,476,737)
Net Appropriation $30,095,192
Revised Budget
Requirements $1,493,959,314
Receipts $397,968,602
Net Appropriation $1,095,990,712
Enacted Budget 192.50
Legislative Changes 3.00
Revised Budget 195.50
Community Colleges
Budget Code 16800
General Fund Budget
General Fund FTE
Page F 30
Summary of General Fund Appropriations
Fiscal Year 2016-17
2016 Legislative Session
Community Colleges
Community Colleges
Budget Code 16800
Fund
Code Fund Name Requirements Receipts
Net
Appropriation Requirements Receipts
Net
Appropriation Requirements Receipts
Net
Appropriation
1100 Executive Division 3,590,759 363,281 3,227,478 - - - 3,590,759 363,281 3,227,478
1200 Technology Solutions and Distance Learning 15,949,769 479,789 15,469,980 - - - 15,949,769 479,789 15,469,980
1300 Finance and Operations 3,593,176 486,682 3,106,494 - - - 3,593,176 486,682 3,106,494
1400 Academic and Student Services 6,507,648 3,762,851 2,744,797 - - - 6,507,648 3,762,851 2,744,797
1600 State Aid - Institutions 22,725,625 - 22,725,625 213,735 - 213,735 22,939,360 - 22,939,360
1620 Curriculum Instruction 706,875,096 354,290,199 352,584,897 110,000 - 110,000 706,985,096 354,290,199 352,694,897
1621 Basic Skill Instruction 73,790,394 16,242,990 57,547,404 - - - 73,790,394 16,242,990 57,547,404
1622 Continuing Education and Workforce Development 107,452,625 17,427,620 90,025,005 - - - 107,452,625 17,427,620 90,025,005
1623 Equipment and Instructional Resources 51,962,762 - 51,962,762 6,000,000 - 6,000,000 57,962,762 - 57,962,762
1624 Specialized Centers and Programs 14,259,267 3,542,792 10,716,475 4,125,000 - 4,125,000 18,384,267 3,542,792 14,841,475
1625 Institutional and Academic Support 514,932,950 1,011,693 513,921,257 1,553,733 - 1,553,733 516,486,683 1,011,693 515,474,990
1900 Reserves and Transfers (41,299,212) 16,837,442 (58,136,654) 12,447,537 - 12,447,537 (28,851,675) 16,837,442 (45,689,117)
Department-wide Items
N/A Compensation Reserve - - - 24,367,285 N/A 24,367,285 24,367,285 N/A 24,367,285
N/A State Retirement Contributions - - - 7,486,178 N/A 7,486,178 7,486,178 N/A 7,486,178
Undesignated
N/A Enrollment Adjustment - - - (42,685,013) (16,476,737) (26,208,276) (42,685,013) (16,476,737) (26,208,276)
Total $1,480,340,859 $414,445,339 $1,065,895,520 $ 13,618,455 $ (16,476,737) $ 30,095,192 $1,493,959,314 $397,968,602 $1,095,990,712
Enacted Budget Legislative Changes Revised Budget
Page F 31
Summary of General Fund Appropriations
Fiscal Year 2016-17
2016 Legislative Session
Community Colleges
Enacted Revised
Fund
Code Fund Name
Total
Requirements
Net
Appropriation Receipts
Total
Requirements
1100 Executive Division 28.00 - - 28.00
1200 Technology Solutions and Distance Learning 80.00 - - 80.00
1300 Finance and Operations 39.50 3.00 - 42.50
1400 Academic and Student Services 45.00 - - 45.00
1600 State Aid - Institutions - - - -
1620 Curriculum Instruction - - - -
1621 Basic Skill Instruction - - - -
1622 Continuing Education and Workforce Development - - - -
1623 Equipment and Instructional Resources - - - -
1624 Specialized Centers and Programs - - - -
1625 Institutional and Academic Support - - - -
1900 Reserves and Transfers - - - -
Total FTE 192.50 3.00 - 195.50
Community Colleges
Budget Code 16800 Legislative Changes
Page F 32
Community Colleges
Legislative Changes
$1,065,895,520
GENERAL FUND
2016 Annotated Conference Committee Report
FY 16-17
Total Budget Enacted 2015 Session
A. Reserve for Salaries and Benefits
32 Compensation Increase Reserve - Community Colleges ($10,000,000) R
Reallocates the $10 million appropriated in the 2015 Appropriations Act for
Community College personnel salary adjustments to the Community College’s FY
2016-17 Compensation Increase Reserve.
Fund Code: N/A
$17,034,551
$17,034,551
33 R
NR
Compensation Increase Reserve - Community Colleges
Provides funds for recurring salary increases and nonrecurring bonuses for
community college employees. Corresponding special provisions provide
additional details on these compensation adjustments.
For all net appropriation supported State-funded positions, across all sections of
the Committee Report, the approximate revised net appropriation for salaries is
$11.4 billion, an increase of over $390 million for FY 2016-17. (S.L. 2016-94,
Secs. 36.1A, 36.10, 36.14, 36.16, and 36.17)
(S.L. 2016-123, Sec. 9.1, Measurability Assessments/Budget Tech. Corr.,
specifies that the recurring funds appropriated to restore a portion of the NC
Community College System's management flexibility cut (page F-35, item 39) may
be used for compensation increases in addition to the funds in this item.)
Fund Code: N/A
Community Colleges Page F 33
2016 Annotated Conference Committee Report FY 16-17
$223,637
$74,546
34 R
NR
Compensation Increase Reserve - System Office
Provides funds for a 1.5% annual recurring salary increase and a 0.5%
nonrecurring bonus for permanent full-time State employees. Corresponding
special provisions provide additional details on these compensation adjustments.
For all net appropriation supported State-funded positions, across all sections of
the Committee Report, the approximate revised net appropriation for salaries is
$11.4 billion, an increase of over $390 million for FY 2016-17. (S.L. 2016-94,
Secs. 36.1A, 36.10, 36.14, 36.16, and 36.17)
(S.L. 2016-123, Sec. 9.1, Measurability Assessments/Budget Tech. Corr.,
specifies that the recurring funds appropriated to restore a portion of the NC
Community College System's management flexibility cut (page F-35, item 39) may
be used for compensation increases in addition to the funds in this item.)
(A related one-time, merit-based bonus item also appears in the Statewide
Reserves section of the Conference Committee Report. See page L-4, item 4.)
Fund Code: N/A
$2,955,674
$4,433,511
35 R
NR
State Retirement Contributions - Community Colleges
Increases the State’s contribution for members of the Teachers’ and State
Employees’ Retirement System (TSERS) to fund the actuarially determined
contribution and provide a 1.6% one-time cost-of-living supplement to retirees.
For all net appropriation supported State-funded positions, across all sections of
the Committee Report, the approximate revised net appropriation for members of
TSERS is $1.6 billion, an increase of $79.0 million for FY 2016-17. (S.L. 2016-94,
Secs. 36.20 and 36.21)
Fund Code: N/A
$38,797
$58,196
36 R
NR
State Retirement Contributions - System Office
Increases the State’s contribution for members of the Teachers’ and State
Employees’ Retirement System (TSERS) to fund the actuarially determined
contribution and provide a 1.6% one-time cost-of-living supplement to retirees.
For all net appropriation supported State-funded positions, across all sections of
the Committee Report, the approximate revised net appropriation for members of
TSERS is $1.6 billion, an increase of $79.0 million for FY 2016-17. (S.L. 2016-94,
Secs. 36.20 and 36.21)
Fund Code: N/A
Community Colleges Page F 34
2016 Annotated Conference Committee Report FY 16-17
B. Technical and Formula Adjustments
37 Enrollment Growth Adjustment ($26,208,276) R
Adjusts funds for FY 2016-17 based on the decline in Community College System
enrollment.
The Community College System total enrollment declined by 8,578 Full-Time
Equivalent (FTE) students (4.1%) from the budgeted amount in the FY 2016-17
certified budget for a savings of $26.2 million. (H.B. 1140/S.B. 885)
Fund Code: N/A
38 Multi-Campus Centers $1,553,733 R
Provides funds to operate 3 new Multi-Campus Centers scheduled to open in FY
2016-17. Funding will support centers for Asheville-Buncombe Technical
Community College, Durham Technical Community College, and Mitchell
Community College. Each center will receive a $517,911 allocation. The revised
net appropriation for Multi-Campus Centers is $20.4 million. (H.B. 1140/S.B. 885)
Fund Code: 1625
$6,051,722
$6,395,815
39 R
NR
Restore Management Flexibility Reduction
Provides funds to restore a portion of the management flexibility reduction. The
management flexibility reduction is reduced by 11%. A related special provision
allows the recurring funds to be used for compensation increases. The revised
net appropriation for the management flexibility reduction is $46.8 million.
(S.L. 2016-123, Sec. 9.1, Measurability Assessments/Budget Tech. Corr.,
specifies that the recurring portion of these funds may be used for the restoration
of management flexibility cuts, compensation increases, or both.)
Fund Code: 1900
C. Other Adjustments
$191,735
$22,000
3.00
40 R
NR
Connect NC Bond Administration
Provides funding to administer the Connect NC Bond program within the
Community College System Office. The Community College System will receive
$350 million through the Connect NC Bond for facility construction and
renovation. The funds will support 3 positions and related software licenses. The
revised net appropriation for Connect NC Bond administration is $213,735. (H.B.
1140/S.B. 885; S.L. 2016-94, Sec. 10.6)
Fund Code: 1300
$110,000
41
NR
Youth Apprenticeship Tuition Waiver
Provides funds to offset the reduction in tuition receipts for granting a tuition
waiver for certain students participating in youth apprenticeship programs. The
revised net appropriation for the youth apprenticeship tuition waiver is $110,000.
(S.L. 2016-94, Sec. 10.3)
Fund Code: 1620
Community Colleges Page F 35
2016 Annotated Conference Committee Report FY 16-17
$6,000,000
42
NR
Equipment
Provides funds for the purchase of instructional equipment and technology at all
58 colleges. These funds are in addition to the $49.0 million included in the
enacted budget for this purpose. Funds shall be distributed in accordance with
the existing equipment allocation formula. The revised net appropriation for
equipment is $55.0 million for FY 2016-17. (H.B. 1140/S.B. 885)
Fund Code: 1623
$25,000
43
NR
Local Government Finance Officer Training
Provides nonrecurring funding to create a continuing education program for
finance officers in local governments and public authorities. Funding will be used
for curriculum development and evaluation. The revised net appropriation for
Local Government Finance Officer Training is $25,000. (S.L. 2016-84)
Fund Code: 1624
$200,000
44
NR
Mitchell Community College Site Preparation
Provides funds to Mitchell Community College for site development at the former
Davis Hospital site. An additional $250,000 is provided for asbestos abatement at
the site in the Office of State Budget and Management/Special Appropriations
section. The revised net appropriation for Mitchell Community College site
preparation is $200,000. (S.L. 2016-94, Sec. 10.8)
(A related item appears in the General Government section of the Conference
Committee Report. See page J-70, item 56.)
Fund Code: 1624
$3,400,000
45
NR
Gaston College Center For Advanced Manufacturing
Provides funds for the Gaston College Center for Advanced Manufacturing to be
used for capital and equipment. The revised net appropriation for the the Center
for Advanced Manufacturing is $3.4 million. (S.L 2016-94, Sec. 10.8)
(S.L. 2016-123, Sec. 4.1, Measurability Assessments/Budget Tech. Corr., amends
this item to correct the name of Gaston College.)
Fund Code: 1624
$500,000
46
NR
Competency-Based Education Incubator
Provides nonrecurring funding to support development of competency-based
education programs and a uniform system for granting credit for prior learning.
Partners in this pilot include Central Piedmont Community College, Forsyth
Technical Community College, Stanly Community College, Wake Technical
Community College, and the North Carolina Community College System Office.
The revised net appropriation for the Competency-Based Education Incubator is
$500,000 for FY 2016-17. (H.B. 1140/S.B. 885)
Fund Code: 1624
Community Colleges Page F 36
2016 Annotated Conference Committee Report FY 16-17
($8,158,427)
$38,253,619
3.00
Total Legislative Changes
Total Position Changes
Revised Budget $1,095,990,712
R
NR
Community Colleges Page F 37
Special Provisions
Department: Community Colleges
2016 Session: HB 1030
Amends G.S. 115D-31.3(e) to revise community college performance measures. The revision
eliminates 2 measures (high school equivalency diploma attainment and performance of
developmental students in subsequent college-level Math and English courses) and replaces
those with measures of the success rates of all students in credit-bearing Math and English
courses. (H.B. 1140/S.B. 885)
Section: 10.1
Title: UPDATE PERFORMANCE MEASURES
Summary
Modifies S.L. 2015-241, Sec. 10.14(c), 2015 Appropriations Act, to allow funds appropriated for
the NC Works Career Coach program to be used for direct operating costs associated with these
positions in addition to their salary and benefits.
(S.L. 2016-123, Sec. 4.4, Measurability Assessments/Budget Tech. Corr., amends this section to
clarify that up to 2% of funds appropriated for the NC Works Career Coach program may be used
for this purpose.)
Section: 10.2
Title: CLARIFY USE OF CAREER COACH FUNDS
Summary
Amends G.S. 115D-5(b) to include courses for certain Youth Apprenticeship Program participants
among those eligible to receive tuition and fee waivers.
Section: 10.3
Title: YOUTH APPRENTICESHIP TUITION WAIVER
Summary
Amends G.S. 115D-5(b) to include training courses for firefighters, EMS personnel, and rescue
and lifesaving personnel permanently stationed in North Carolina among those eligible to receive
tuition and fee waivers. (H.B. 1068)
Section: 10.4
Title: TUITION WAIVER/FIREFIGHTERS AND EMS PERSONNEL ON MILITARY INSTALLATIONS
Summary
Modifies S.L. 2015-241, Sec. 10.13 requirement that high schools begin offering college
developmental math, reading, and English instruction.
Subsection (a) amends the requirement that the program be fully implemented beginning in the
2016-17 school year by requiring only certain model programs to be implemented beginning in
2016-17. Full implementation is required beginning in the 2018-19 school year.
Subsection (b) requires the State Board of Community Colleges and the State Board of Education
to submit annual reports on the program to the Joint Legislative Education Oversight Committee.
Section: 10.5
Title: CLARIFY CAREER- AND COLLEGE-READY GRADUATE PROGRAM
Summary
Community Colleges Page F 38
Requires that funds appropriated in this Act to the Community College System Office for Connect
NC bond administration may be used only to support review of Connect NC bond projects and
specifies that positions created for that purpose shall be eliminated once administration of the
bond is complete.
Section: 10.6
Title: CONNECT NC BOND ADMINISTRATION
Summary
Modifies S.L. 2012-177, Secs. 1 and 4, Transfer Certain Correctional Facilities, to delay until 2021
the transfer of property from the Department of Public Safety to Cleveland Community College.
The section also allows Cleveland Community College to dispose of the property once transferred
and to retain the proceeds for use for any lawful public purpose.
Section: 10.7
Title: DELAY PROPERTY TRANSFER TO CLEVELAND COMMUNITY COLLEGE
Summary
Specifies that funds appropriated to the North Carolina Community College System Office in this
Act for FY 2016-17 for the Center for Advanced Manufacturing at Gaston College and for Mitchell
Community College site development shall not revert at the end of the fiscal year.
(S.L. 2016-123, Sec. 4.1, amends this section to correct the name of Gaston College.)
Section: 10.8
Title: CERTAIN COMMUNITY COLLEGE PROJECT FUNDS
Summary
Department: Community Colleges
2016 Session: HB 805
Modifies S.L. 2016-94, Sec. 10.8, 2016 Appropriations Act, to correct the name of Gaston College.
(See the Education section of the Conference Committee Report on page F-36, Item 45).
Section: 4.1
Title: TECHNICAL CHANGE: CERTAIN COMMUNITY COLLEGE PROJECT FUNDS
Summary
Modifies S.L. 2015-241, Sec. 10.14(c), as amended by S.L. 2016-94, Sec. 10.2, to clarify that up
to 2% of funds appropriated for the NC Works Career Coach program may be used for direct
operating costs associated with those positions.
Section: 4.4
Title: TECHNICAL CHANGE: CLARIFY USE OF CAREER COACH FUNDS
Summary
Community Colleges Page F 39
UNC System
FY 2016-17
Enacted Budget
Requirements $4,400,355,967
Receipts $1,717,048,040
Net Appropriation $2,683,307,927
Legislative Changes
Requirements $188,291,669
Receipts $19,311,475
Net Appropriation $168,980,194
Revised Budget
Requirements $4,588,647,636
Receipts $1,736,359,515
Net Appropriation $2,852,288,121
Enacted Budget 34,763.58
Legislative Changes 1.00
Revised Budget 34,764.58
UNC System
Multiple Budget Codes
General Fund Budget
General Fund FTE
Page F 40
Summary of General Fund Appropriations
Fiscal Year 2016-17
2016 Legislative Session
As amended by S.L. 2016-123, Measurability Assessments/Budget Tech. Corr.
UNC System
UNC System
Bdgt
Code Fund Name Requirements Receipts
Net
Appropriation Requirements Receipts
Net
Appropriation Requirements Receipts
Net
Appropriation
16010 UNC-Board of Governors 37,303,605 46,899 37,256,706 1,000,000 - 1,000,000 38,303,605 46,899 38,256,706
16011 UNC-Board of Governors - Institutional 57,429,631 21,444,745 35,984,886 52,344,475 19,311,475 33,033,000 109,774,106 40,756,220 69,017,886
16012 UNC-BOG-Related Educational Programs 156,200,476 48,031,975 108,168,501 - - - 156,200,476 48,031,975 108,168,501
16015 Aid to Private Colleges 127,419,754 - 127,419,754 44,140,000 - 44,140,000 171,559,754 - 171,559,754
16020 UNC-Chapel Hill 592,452,903 340,187,042 252,265,861 1,500,000 - 1,500,000 593,952,903 340,187,042 253,765,861
16021 UNC-Chapel Hill - Health Affairs 294,539,049 106,759,144 187,779,905 3,000,000 - 3,000,000 297,539,049 106,759,144 190,779,905
16022 UNC-Chapel Hill - Area Health Education Center 49,282,678 - 49,282,678 - - - 49,282,678 - 49,282,678
16030 North Carolina State University - Academic 721,726,448 329,477,157 392,249,291 200,000 - 200,000 721,926,448 329,477,157 392,449,291
16031 NC State University - Agricultural Research 68,078,678 14,979,346 53,099,332 - - - 68,078,678 14,979,346 53,099,332
16032 NC State University - Cooperative Extension Service 54,639,442 16,043,515 38,595,927 - - - 54,639,442 16,043,515 38,595,927
16040 UNC-Greensboro 228,727,570 85,268,143 143,459,427 - - - 228,727,570 85,268,143 143,459,427
16050 UNC-Charlotte 334,919,709 135,948,104 198,971,605 - - - 334,919,709 135,948,104 198,971,605
16055 UNC-Asheville 57,074,763 19,482,480 37,592,283 - - - 57,074,763 19,482,480 37,592,283
16060 UNC-Wilmington 184,756,660 83,283,247 101,473,413 - - - 184,756,660 83,283,247 101,473,413
16065 East Carolina University - Academic 375,146,899 164,407,341 210,739,558 - - - 375,146,899 164,407,341 210,739,558
16066 East Carolina University - Health Affairs 81,979,708 8,452,022 73,527,686 - - - 81,979,708 8,452,022 73,527,686
16070 NC Agricultural and Technical State University 155,828,367 64,930,346 90,898,021 - - - 155,828,367 64,930,346 90,898,021
16075 Western Carolina University 130,369,834 44,564,017 85,805,817 - - - 130,369,834 44,564,017 85,805,817
16080 Appalachian State University 218,660,651 90,825,069 127,835,582 - - - 218,660,651 90,825,069 127,835,582
16082 UNC-Pembroke 78,258,028 25,065,923 53,192,105 675,000 - 675,000 78,933,028 25,065,923 53,867,105
16084 Winston-Salem State University 88,173,322 23,554,198 64,619,124 - - - 88,173,322 23,554,198 64,619,124
16086 Elizabeth City State University 44,118,744 10,359,516 33,759,228 - - - 44,118,744 10,359,516 33,759,228
16088 Fayetteville State University 68,632,042 19,890,512 48,741,530 - - - 68,632,042 19,890,512 48,741,530
16090 NC Central University 130,529,004 48,396,156 82,132,848 - - - 130,529,004 48,396,156 82,132,848
16092 NC School of the Arts 43,392,463 14,723,165 28,669,298 - - - 43,392,463 14,723,165 28,669,298
16094 NC School of Science and Mathematics 20,715,539 927,978 19,787,561 630,000 - 630,000 21,345,539 927,978 20,417,561
Department-wide Items
N/A Compensation Reserve - - - 75,981,599 N/A 75,981,599 75,981,599 N/A 75,981,599
N/A State Retirement Contributions - - - 8,820,595 N/A 8,820,595 8,820,595 N/A 8,820,595
Total $4,400,355,967 $1,717,048,040 $2,683,307,927 $ 188,291,669 $ 19,311,475 $ 168,980,194 $4,588,647,636 $1,736,359,515 $2,852,288,121
Enacted Budget Legislative Changes Revised Budget
Page F 41
Summary of General Fund Appropriations
Fiscal Year 2016-17
2016 Legislative Session
UNC System
Enacted Revised
Bdgt
Code Fund Name
Total
Requirements
Net
Appropriation Receipts
Total
Requirements
16010 UNC-Board of Governors 246.74 - - 246.74
16011 UNC-Board of Governors - Institutional - - - -
16012 UNC-BOG-Related Educational Programs - - - -
16015 Aid to Private Colleges 2.00 - - 2.00
16020 UNC-Chapel Hill 4,138.45 - - 4,138.45
16021 UNC-Chapel Hill - Health Affairs 1,909.12 - - 1,909.12
16022 UNC-Chapel Hill - Area Health Education Center 77.90 - - 77.90
16030 North Carolina State University - Academic 6,082.34 - - 6,082.34
16031 NC State University - Agricultural Research 797.06 - - 797.06
16032 NC State University - Cooperative Extension Service 745.74 - - 745.74
16040 UNC-Greensboro 2,069.45 - - 2,069.45
16050 UNC-Charlotte 3,020.71 - - 3,020.71
16055 UNC-Asheville 585.71 - - 585.71
16060 UNC-Wilmington 1,811.72 - - 1,811.72
16065 East Carolina University - Academic 3,211.61 - - 3,211.61
16066 East Carolina University - Health Affairs 552.53 - - 552.53
16070 NC Agricultural and Technical State University 1,521.31 - - 1,521.31
16075 Western Carolina University 1,279.58 - - 1,279.58
16080 Appalachian State University 2,096.17 - - 2,096.17
16082 UNC-Pembroke 736.29 - - 736.29
16084 Winston-Salem State University 910.32 - - 910.32
16086 Elizabeth City State University 350.61 - - 350.61
16088 Fayetteville State University 704.84 - - 704.84
16090 NC Central University 1,258.34 - - 1,258.34
16092 NC School of the Arts 435.69 - - 435.69
16094 NC School of Science and Mathematics 219.35 1.00 - 220.35
Total FTE 34,763.58 1.00 - 34,764.58
UNC System
Legislative Changes
Page F 42
UNC System
Legislative Changes
$2,683,307,927
GENERAL FUND
2016 Annotated Conference Committee Report
FY 16-17
Total Budget Enacted 2015 Session
A. Reserve for Salaries and Benefits
$41,966,294
$13,854,891
47 R
NR
Compensation Increase Reserve
Provides funds for a 1.5% annual recurring salary increase and a 0.5%
nonrecurring bonus for permanent full-time State employees. Corresponding
special provisions provide additional details on these compensation adjustments.
For all net appropriation supported State-funded positions, across all sections of
the Committee Report, the approximate revised net appropriation for salaries is
$11.4 billion, an increase of over $390 million for FY 2016-17. (S.L. 2016-94,
Secs. 36.11, 36.12, 36.14, 36.15, 36.16, and 36.17)
(A related one-time, merit-based bonus item also appears in the Statewide
Reserves section of the Conference Committee Report. See page L-4, item 4.)
Budget Code: N/A
$20,160,414
48
NR
Compensation Bonus Reserve - UNC EHRA
Provides funding for one-time merit-based bonuses for State employees. The
Board of Governors shall develop policies for the allocation of merit-based
bonuses to EHRA employees. Merit-based bonuses provided by employing
agencies shall not be considered compensation for retirement purposes.
Corresponding special provisions provide additional details on these
compensation adjustments.
For all net appropriation supported State-funded positions, across all sections of
the Committee Report, the approximate revised net appropriation for salaries is
$11.4 billion, an increase of over $390 million. (S.L. 2016-94, Sec. 36.1A)
Budget Code: N/A
$3,664,607
$5,496,911
49 R
NR
State Retirement Contributions - TSERS Members
Increases the State’s contribution for members of the Teachers’ and State
Employees’ Retirement System (TSERS) to fund the actuarially determined
contribution and provide a 1.6% one-time cost-of-living supplement to retirees.
For all net appropriation supported State-funded positions, across all sections of
the Committee Report, the approximate revised net appropriation for members of
TSERS is $1.6 billion, an increase of $79.0 million for FY 2016-17. (S.L. 2016-94,
Secs. 36.20 and 36.21)
Budget Code: N/A
UNC System Page F 43
2016 Annotated Conference Committee Report FY 16-17
50 State Retirement Contributions - ORP Members ($340,923) R
Decreases the State’s contribution for members of the Optional Retirement
Program (ORP) to match the actuarially determined contribution for the Disability
Income Plan. The revised net appropriation for members of ORP is approximately
$145.6 million. (S.L. 2016-94, Secs. 36.20 and 36.21)
Budget Code: N/A
B. Technical and Formula Adjustments
51 Enrollment Growth Adjustments $31,000,000 R
Provides additional funds for projected enrollment growth in the University of North
Carolina (UNC) System. Total enrollment is projected to be 206,139 Full-Time
Equivalent (FTE) students, a 1.5% increase over FY 2015-16's total enrollment of
203,014 FTE. (H.B. 1140/S.B. 885)
(A related item appears in the Reserves, Debt Service, and Adjustments section
of the Conference Committee Report. See page L-4, item 2.)
Budget Code: 16011
52 Enrollment Growth Performance Funding ($1,000,000) R
Eliminates enrollment growth performance funding for UNC that was originally
appropriated in FY 2011-12. The revised net appropriation for Enrollment Growth
Performance Funding is $0.
Budget Code: 16011
C. Other Adjustments
$1,000,000
53
NR
UNC Teacher and Principal Preparation Program Lab School Administration
Funds UNC General Administration to provide administrative and technical
assistance related to the UNC Teacher and Principal Preparation Laboratory
School Program. The funds shall be used to provide lab school start-up
assistance to constituent institutions with educator preparation programs. The
revised net appropriation for UNC Teacher and Principal Preparation Program Lab
School Administration is $1.0 million. (S.L. 2016-94, Sec. 11.6)
Budget Code: 16010
$183,000
54
NR
Internships and Career-Based Opportunities for HBCU Students
Expands, on a nonrecurring basis, the internship program for students attending
Historically Black Colleges and Universities (HBCU). The revised net
appropriation for the HBCU Internship Program is $500,500. (H.B. 1140/S.B. 885;
S.L. 2016-94, Sec. 11.1)
Budget Code: 16011
UNC System Page F 44
2016 Annotated Conference Committee Report FY 16-17
$2,300,000
55
NR
Supports for Part-Way Home Students
Provides funds for technology and academic support strategies in order to recruit,
retain, and graduate students who have not finished their baccalaureate degree.
The revised net appropriation for part-way home student supports is $2.3 million.
(H.B. 1140/S.B. 885; S.L. 2016-94, Sec. 11.3)
Budget Code: 16011
56 Advancement Activity Limitations $16,354,396 R
Restores funds due to the elimination of the cap on the amount of General Funds
used for advancement activities. S.L. 2015-268 prohibited more than $1.0 million
of General Funds to be used toward advancement activities per campus effective
beginning in FY 2016-17. A corresponding special provision repeals that cap. The
revised net appropriation for advancement activities is $26.5 million. (H.B.
1140/S.B. 885; S.L. 2016-94, Sec. 11.7)
Budget Code: 16011
57 Management Flexibility Reduction ($16,354,396) R
Increases the management flexibility reduction for the UNC operating budget.
The UNC Board of Governors shall not allocate this reduction on an across-the-board
basis to constituent institutions. The revised net appropriation for the FY
2016-17 management flexibility reduction is $62.8 million.
Budget Code: 16011
($1,000,000)
$1,000,000
58 R
NR
UNC Core
Converts State funding to nonrecurring status for UNC Core, a distance education
program for active duty service members and veterans administered by the Friday
Center for Continuing Education at UNC-Chapel Hill. The net appropriation for
UNC Core remains unchanged for FY 2016-17 but will be $0 for FY 2017-18.
Budget Code: 16020
59 North Carolina Policy Collaboratory $1,000,000 R
Provides operational funds for the newly established North Carolina Policy
Collaboratory at UNC-Chapel Hill. The Collaboratory will conduct and disseminate
research related to natural resources management for State and local
government. In addition to funding provided in the Education section of the
budget, $3.5 million for the Collaboratory is included in the Office of State Budget
and Management/Special Appropriations section to be matched by non-State
funds. The revised net appropriation for the North Carolina Policy Collaboratory is
$4.5 million. (S.L. 2016-94, Secs. 11.8 and 27.5)
(A related item appears in the General Government section of the Conference
Committee Report. See page J-70, item 50.)
Budget Code: 16020
UNC System Page F 45
2016 Annotated Conference Committee Report FY 16-17
60 Jordan Lake Study $500,000 R
Provides $500,000 to the Chief Sustainability Officer at UNC-Chapel Hill to
designate an entity to study nutrient management strategies. The revised net
appropriation for the Jordan Lake Study is $500,000. (S.L. 2016-94, Sec. 14.13.(c))
(A related item appears in the Agriculture and Natural and Economic Resources
section of the Conference Committee Report. See page H-24, item 34.)
Budget Code: 16020
61 Western School of Medicine - Asheville $3,000,000 R
Provides funds for the UNC School of Medicine's Asheville Campus, a joint
program between the UNC School of Medicine and the Mountain Area Health
Education Center. Funding will support administration, faculty, and related
programs. The revised net appropriation for the Western School of Medicine is
$3.0 million. (S.L. 2016-94, Sec. 37.1)
(A related item appears in the Capital section of the Conference Committee
Report. See page M-4, item 9.)
Budget Code: 16021
62 North Carolina State University (NCSU) - Agriculture Institute $200,000 R
Provides funding for NCSU's Agriculture Institute for increased student support,
recruitment, and marketing. The revised net appropriation for the Agriculture
Institute for student support, recruitment, and marketing is $200,000.
Budget Code: 16030
$4,000,000
($4,000,000)
63 R
NR
East Carolina University: Medical School Sustainability Funds
Converts half of the State budget sustainability funds for the Brody School of
Medicine to recurring status. The funds are to provide support for the school due
to lost revenue. The revised net appropriation for East Carolina University Health
Affairs remains $73.5 million in FY 2016-17. (H.B. 1140/S.B. 885)
Budget Code: 16066
$675,000
64
NR
UNC-Pembroke Video Surveillance Upgrades
Provides funds to expand and upgrade video surveillance systems on the UNC-Pembroke
campus. The revised net appropriation for UNC-Pembroke video
surveillance upgrades is $675,000.
Budget Code: 16082
$250,000
65
NR
Elizabeth City State University (ECSU) Marketing
Provides funds to ECSU for marketing the NC Promise Tuition "Buy Down"
Program. The revised net appropriation for the ECSU NC Promise Tuition "Buy
Down" Program marketing is $250,000. (S.B. 873; S.L. 2016-94, Sec. 11.4.(c1))
(S.L. 2016-123, Sec. 4.2, Measurability Assessments/Budget Tech. Corr., amends
this item to allocate funds to Budget Code 16011.)
Budget Code: 16011
UNC System Page F 46
2016 Annotated Conference Committee Report FY 16-17
$130,000
$500,000
1.00
66 R
NR
Western School of Engineering and Technology
Provides funds for project management and curriculum development at the
Western School of Engineering and Technology, which was funded in 2016 in the
Connect NC Bond. An additional position, based in Morganton, NC, will provide
construction management of the project. Additional funds will provide for
curriculum development for the new school. The revised net appropriation for the
Western School of Engineering and Technology is $630,000.
Budget Code: 16094
D. Financial Aid Adjustments
67 Cheatham-White Scholarships $300,000 R
Provides funds to administer a new scholarship program at North Carolina Central
University (NCCU) and North Carolina Agricultural and Technical State University
(NCA&T) to be called the Cheatham-White Scholarships. The full scholarships
will fund up to 50 students at each university beginning in the Fall 2018 semester.
NCCU and NCA&T will be required to match the General Fund appropriation. The
revised net appropriation for the Cheatham-White Scholarships is $300,000. (S.B.
873; S.L. 2016-94, Sec. 11.4.(e))
Budget Code: 16012
68 Principal Preparation $3,500,000 R
Provides additional funds for the Principal Preparation Program. The program
provides competitive grants for school leadership development. The revised net
appropriation for the Principal Preparation Program is $4.5 million. (S.L. 2016-94,
Sec. 11A.4)
(S.L. 2016-123, Sec. 4.3, Measurability Assessments/Budget Tech. Corr., amends
this item to reduce the amount of funds that may be allocated to the nonprofit for
administration.)
Budget Code: 16015
69 Special Education Scholarships $5,800,000 R
Increases funding for Special Education Scholarships by 137%. The program
provides scholarship grants of up to $4,000 per semester for eligible students.
The revised net appropriation for Special Education Scholarships is $10.0 million.
(H.B. 955, H.B. 1140/S.B.885, S.B. 561; S.L. 2016-94, Sec. 11A.2)
Budget Code: 16015
$34,840,000
70
NR
Opportunity Scholarship Grant Fund Reserve
Establishes an Opportunity Scholarship Grant Fund Reserve in order to shift the
program to forward funding. The Reserve will be used to fund scholarships for the
subsequent fiscal year. The revised net appropriation for the Opportunity
Scholarship Grant Fund Reserve is $34.8 million. (H.B. 955, H.B. 969/S.B. 742,
H.B. 1140/S.B. 885, S.B. 862; S.L. 2016-94, Sec. 11A.3)
Budget Code: 16015
UNC System Page F 47
2016 Annotated Conference Committee Report FY 16-17
$92,719,978
$76,260,216
1.00
Total Legislative Changes
Total Position Changes
Revised Budget $2,852,288,121
R
NR
UNC System Page F 48
Special Provisions
Department: UNC System
2016 Session: HB 1030
Modifies S.L. 2015-241, Sec. 11.12(b), 2015 Appropriations Act, to require that the internship
program for students attending HBCUs be expanded to serve a minimum of 95 students for FY
2016-17. (H.B. 1140/S.B.885)
Section: 11.1
EXPAND INTERNSHIPS AND CAREER-BASED OPPORTUNITIES FOR STUDENTS
ATTENDING HISTORICALLY BLACK COLLEGES AND UNIVERSITIES (HBCU)
Title:
Summary
Modifies S.L. 2015-241, Sec. 11.7 to delay and limit the implementation of NC GAP.
Subsection (a) requires the President of the University of North Carolina (UNC) System, in
consultation with the UNC Board of Governors (BOG), to adopt by January 1, 2017 a plan to
improve student degree completion rates at each constituent institution effective for the 2017-18
academic year.
Subsection (b) requires the President to report on the plan to the Joint Legislative Education
Oversight Committee (JLEOC), the Fiscal Research Division, and the Office of State Budget and
Management by January 1, 2017.
Subsections (c) and (d) delay implementation of NC GAP to the 2017-18 academic year and limit
its implementation to only those institutions that fail to implement the plan required by subsection
(b) of this section. (H.B. 1140/S.B. 885)
Section: 11.2
Title: MODIFY NC GUARANTEED ADMISSION PROGRAM (NC GAP)
Summary
Requires the President of UNC to report on the use of funds appropriated for part-way home
initiatives to assist students in degree completion. The one-time report is due to the JLEOC by
September 1, 2017. (H.B. 1140/S.B. 885)
Section: 11.3
Title: UNC PART-WAY HOME STRATEGY/REPORT
Summary
UNC System Page F 49
Directs the UNC System to implement a variety of policies intended to reduce and make more
predictable the costs of tuition and fees throughout the System.
Subsection (a) creates G.S. 116-143.9 to establish a fixed tuition payment program at each
constituent institution effective beginning with the fall 2016 academic semester. The program
guarantees a maximum tuition rate for any freshman or transfer undergraduate student for 8 or 10
semesters for students in an approved 4- or 5-year degree program, respectively.
Subsection (b) creates G.S. 116-143.10 to establish a 3% cap each academic year on the
cumulative total increase of undergraduate student fees approved by either the BOG or the Board
of Trustees of a constituent institution, effective beginning with the 2017-18 academic year. The
fees charged for the 2016-2017 academic year are the baseline to be used to determine the
permissible 3% fee increase for the 2017-2018 academic year.
Subsection (c) creates G.S. 116-143.11 to establish the NC Promise Tuition Plan and "Buy
Down." The plan sets the undergraduate tuition rate for Elizabeth City State University (ECSU),
UNC-Pembroke (UNC-P), and Western Carolina University (WCU) at $500 per academic
semester for resident students and $2,500 per academic semester for nonresident students
effective beginning with the 2018 fall academic semester. The State is required to "buy down" any
financial obligation resulting from these established tuition rates that may be incurred by ECSU,
UNC-P, or WCU. The Director of the Budget must determine the amount needed to offset forgone
tuition receipts and authorize an increase in the UNC base budget by an amount up to
$40,000,000 to cover the "buy down" cost for each fiscal year effective beginning with the 2018-
2019 fiscal year.
Subsection (c1) directs the BOG to, by January 16, 2017, develop and implement a marketing
strategy designed to increase enrollment at ECSU and to effectively market the NC Promise
Tuition Plan at that institution.
Subsections (d) and (d1) direct the BOG to study the effects of removing or increasing the current
cap of 18% on the enrollment of nonresident freshmen at ECSU, UNC-P, and WCU, and to
appropriately alter the cap if found advisable.
Subsection (e) creates G.S. 116-290 to establish the Cheatham-White Scholarship as a 4-year,
fully funded merit scholarship for exceptional students who enroll at either NC Agricultural and
Technical State University (NCA&T) or North Carolina Central University (NCCU). Each
scholarship shall cover the cost of tuition, fees, housing, meals, textbooks, a laptop, supplies,
travel, and personal expenses and shall provide 4 summers of fully funded enrichment
opportunities that may include international travel and study. NCA&T and NCCU may each award
up to 50 scholarships, each academic year, to up to 40 NC residents and 10 nonresidents. The
subsection establishes eligibility and selection criteria and a nominating process for the
scholarships and establishes the Cheatham-White Scholarships fund to be administered by UNC
General Administration. Funds appropriated for the scholarships are required to be matched by
non-State funds. UNC General Administration, NCA&T, and NCCU are required to develop
policies and processes necessary to effectively implement the scholarships. The scholarships are
established effective July 1, 2016, with nominations and first awards made in the 2017-18
academic year to students beginning a course of study at NCA&T or NCCU beginning with the
2018 fall academic semester. (S.B. 873)
(S.L. 2016-123, Sec. 4.2, Measurability Assessments/Budget Tech. Corr., amends the related
Item 65 on page F-46 of the Education section of the Conference Committee Report to allocate
ECSU marketing funds to the UNC BOG Institutional Programs Budget Code 16011.)
Section: 11.4
Title: ACCESS TO AFFORDABLE COLLEGE EDUCATION
Summary
UNC System Page F 50
Amends G.S. 116-229.1(a) regarding liability in the event of a disclosure or misuse of personally
identifiable student data. Private colleges are absolved from liability for a breach of confidential
student data if the data was shared in accordance with a written agreement with certain entities
and those entities are responsible for the breach. This section adds the NC Independent Colleges
and Universities, Inc. to that list of entities.
Section: 11.5
DISCLOSURE OF STUDENT DATA AND RECORDS BY PRIVATE INSTITUTIONS OF HIGHER
EDUCATION/LIABILITY PROTECTION
Title:
Summary
UNC System Page F 51
Creates a requirement for UNC to operate 8 laboratory (lab) schools in certain districts and sets
forth the requirements for establishing and operating such schools.
Subsection (a) adds Article 29A to Chapter 116 of the General Statutes to require certain UNC
constituent institutions to establish and operate (lab) schools serving students in kindergarten
through eighth grade.
G.S. 116-239.5 requires the BOG to designate 8 UNC constituent institutions with an educator
preparation program to establish a lab school in accordance with the Article. It defines the mission
of the schools as improving student performance in school systems with low-performing schools
by providing enhanced education programs and clinical experience for teachers and principals in
high-needs school settings. These schools are exempt from statutes and rules applicable to local
boards of education, except as provided in the Article. This provides similar flexibility for lab
schools as charter schools and regional schools.
G.S. 116-239.6 sets out definitions, including that the board of trustees of the UNC constituent
institution shall be the governing body of the school and that a lab school is defined as a school
located in a school system with 25% or more schools identified a