2009 LEGISLATIVE SESSION MEMO #13

Tragedy struck Wake County on Saturday morning when word spread quickly about the passing of long time education advocate Senator Vernon Malone. An unbelievable turn of events as he worked at home mowing the lawn on Saturday, stopped to rest and read the paper and passed away. What will Wake County and North Carolina do without one of our education leaders? Many are still simply walking around trying to absorb the fact that he is gone. His funeral was Thursday so the legislature adjusted their Thursday calendars to allow members to pay their last respects.

The House Appropriations Chairs returned to Raleigh on Monday afternoon, to continue their review of the Senate budget. They are still waiting to get the preliminary numbers on the April 15th revenue collections. Rumors are the numbers may not be as low as people have been predicting, but it will probably be May 1 or as late as May 5 before the House gets better numbers and can actually set the targets for the Education Chairs and other Committee Chairs to work on the budget.  Speaker Hackney set up a Public Hearing for people in the State to come and speak to members of the Appropriations Team and House Leadership to express their concerns about the State budget. The hearing will be held across the state in ten Community College locations and will be transmitted to the members in the Museum of History auditorium. The hearing will be held from 6:00-9:00PM on Tuesday, April 28.

On Tuesday, House Education Appropriations met to discuss the American Recovery Act funds, as they relate to Education. This discussion was very informative and a copy of the information is available upon request from my office. The House Education Committee met on Tuesday in the morning and after Session to discuss several bills, including the Calendar Law Changes bill. The members spent most of their time talking about the School Calendar bill, which allows LEAs to start school by the second Monday in August. This would help align the public school calendar to the Community Colleges and Universities Spring semester. Students can graduate in December and enter college in January for the Spring semester or take courses as a Junior or Senior with the calendars better aligned. Representative Jackson (Wake) talked about the impact on his daughter attending school in Wake County. She is simply taking a few unnecessary courses this Spring until she graduates in May and can go to College in the Fall. NCAE spoke in favor of the bill saying the calendar law passed in 2005 and needs to be changed. NCSBA spoke for themselves and NCASA in support of Representative Luebke’s calendar bill (HB 593). The bill received a Favorable Report and was sent to the Commerce Committee, where the next battle starts. Various groups including, Save our Summers, and the Tourism industry has begun flooding House members with e-mails opposing passage of the bill.  Even if the bill passes the House, as it has done before, Senator Basnight will not likely allow it to be heard in the Senate. Education groups will continue to fight to make the changes in the calendar law needed to give LEAs the flexibility they need to provide the academic program for students.

On Wednesday, House Appropriations Chairs continued meeting to discuss the budget. Senate Education Committee had a brief meeting and only heard one bill. There were several other committee meetings in the House, but on Wednesday, the main action was in Senate Finance. Senator Clodfelter presented the new framework for a major shift in the tax program for North Carolina. The committee heard a presentation on the proposals for the changing the way taxes are collected to generate revenue in the State. The areas to be addressed include: Reduce all Personal Income Tax rates and simplify, Reduce State Sales Tax rate from 4.75 percent to 4 percent, Transfer 0.1 percent of existing and expanded local base to the State, Business tax changes, Increase Excise taxes, Adjust Revenue distributions, Conform in part to IRC and Department of Revenue Implementation costs. Some of the highlights in these sections include: Loss of State Sales and Use Tax Refund to Cities and Counties, Reduction in Corporate Income Tax from 6.9 to 5.8 and in two years 4.5, Eliminate Public School Capital Building Fund, Reduction in State Sales and Use tax from 6.76 percent to 6 percent and changes to the State Income taxes to eliminate many of the deductions in lieu of limited tax credits, Taxes on Services yet to be determined, Limit nonprofit refund for all institutions at $5 million. It will be two weeks before a bill is completed. In addition, there is an increase in the Tobacco tax of 15 cents, on other Tobacco products (3 percent) and an increase in the Alcohol excise tax. An interstate compact forced the Senate to abandon several taxes including taxes on the lottery tickets. The plan is very tight and if you begin to adjust one area you will impact the entire plan, similar to the budget. Stay tuned for this major piece of legislation as everyone starts fighting to protect their funds. The last time the tax laws were changed, significantly, was in the 1930’s.

In other news the Health Plan conferees met Tuesday evening and quickly reached an agreement. The House caucused around Noon, to discuss the terms of the agreement with the Senate and determine if they could move the bill out of the House, Wednesday. They needed a 2/3 vote of the body to suspend the Rules and place the bill on the calendar, since it was not read in the day before. The Republicans agreed to vote to suspend the Rules, when they learned the health care providers would not be paid and the Governor would need to take almost $18 million more from the Rainy Day fund to keep the Health Plan afloat. The House and Senate passed the Conference report on SB 287 late Wednesday afternoon. The House agreed to put the smoking and weight plan changes back in the bill and a minor pharmacy modification. The Senate agreed to the remainder of the House changes and the bill was signed by the Governor, on Thursday. The bill will require an 8.9 percent increase in employer contributions as well as significant funds from the General Fund. A copy of the bill is available online at http://www.ncleg.net (SB 287).

On Thursday, the House Education Appropriations Committee met to review the public schools budget. They have released their calendar for presentations in the next two week and that is listed below. The House and Senate convened at 10:00 in order to give members a chance to attend the funeral of Senator Vernon Malone. They will return next week and continue to push bills out of committee as the “crossover” deadline draws closer (May 14). Crossover is the deadline by which all bills, without fiscal implications, must pass one House or the other to be eligible for consideration for the remainder of the long and short session in 2010. Between the myriad of bills passing in every committee, the House will continue to press forward to complete their budget by May 22. Another busy week behind us and in front of us.

 

House Bills Introduced

HB 1524 Funds for Very Small School Systems

HB 1529 Dropout Prevention Grant Funds

HB 1535 Study Project Graduate

 

House Committees:

Education:

HB 1470 Study Length of School Lunch Period-Favorable Report and re-referred to Rules.

HB 1471 Counties & Schools Share P.E. Equipment-Favorable Report and re-referred to Judiciary III.

HB 593 Change School Starting Date-Discussed at length. Committee met 15 minutes after Session and after several speakers Chairman Bell took a motion for a Favorable Report. There was some frustration from members and people in the audience, who did not get a chance to speak. Representative Wiley wanted to run an amendment to make the effective date 2010-2011. The bill was re-referred to Commerce, where that amendment will be run and likely pass, since even if the bill passes it would be impossible for schools to shift their calendars for the 2009-2010 school year this late in the calendar.

HB 1179 Study Equity of School Counselor Compensation-Favorable Report to Committee Substitute, which added the study of assistant principals salaries and re-referred to Rules.

HB 538 Charlotte/Mecklenburg School Board Police-Favorable Report to Committee Substitute and re-referred to Judiciary I. Local bill, no questions.

State Government and State Personnel

HB 708 Furlough of State Employees-Discussed and Pulled

HB 1221 Develop State Employee Benefits Statement-Favorable Report and re-referred to Pensions and Retirements.

Judiciary I

HB 193 Electronic Notice of Public Hearings-Discussed and Pulled.

HB 442 Parental Involvement in School Discipline-Favorable Report and calendared.

Finance

HB 205 Lottery Act Changes-Favorable Report and calendared.

Local Government I

SB 248 Conform County School Board Vacancy Statute-Favorable Report and sent to Election Law and Campaign Finance Reform.

Ethics

HB 1452 Local Government Code of Ethics Favorable Report and sent to Judiciary I.

Ways and Means/BroadBand Connectivity

HB 1476 Government Immunity/Adequacy of Remedies-Favorable Report and sent to Judiciary I. Several education groups raised concerns about the bill and are seeking to make one or two changes to the language. One major problem is the word “full” compensation. There will probably be an attempt to modify the bill in Judiciary I.

 

Senate Committees:

Education:

SB 406 Classroom Experience for School Personnel-Pulled

SB 962 Probationary Teacher Appeals-Pulled

SB 1028 Encourage Volunteerism in Schools-No Vote

 

House Floor:

HB 582 Special Education Changes Passed second and third readings and sent to the Senate.

SB 287 State Health Plan Passed the Conference Report and sent to the Governor.

 

Senate Floor:

SB 287 State Health Plan Passed the Conference Report and sent to the Governor.

Bills in Committees Next Week:

HB 708 Furlough of State Employees

HB 1134 Open Government Act

HB 213 SPA Sick Leave Transfers

SB 754 Statutory Changes for ARRTA Funds

HB 899 Limit foods in School Vending Machines

HB 900 Nutrition Standards/All Foods sold at School

HB 1054 Safer Schools

HB 1078 Report School Violence to LEA Office

HB 1089 Study Social Workers in Schools

HB 1472 Counties and Schools Share PE Equipment

 

House Education Appropriations Committee Meeting Agendas

April 28 8:30 Department of Public Instruction Base Budget

April 28 After Session Pre-K Programs

April 29 8:30 Community Colleges System

April 29 After Session Public Schools Testing and Accountability

April 30 8:30 University of North Carolina

May 5 8:30 Discussion of Committee Target/Non-profits

May 6 8:30 Reaction to Committee Targets by Education Agency heads

 

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2009 LEGISLATIVE SESSION MEMO #12

The Senate did not have any bills on the calendar Monday, but the House came back from the Easter Holiday ready to work. The House had more than twenty committee meetings listed for Tuesday and Wednesday, while the Senate is gearing back up in their committees after rolling out their budget last week. House Appropriations chairs began meeting twice a day to review the Senate budget, while waiting for the April 15th tax revenue numbers to be determined.

The House caucused on Monday at 6:00 PM before Session to try and resolve the pending issues with the legislation on the State Health Plan and the legislation authorizing public schools to provide both abstinence education and sex education (parental request) for middle school and high school students. The Health Plan passed the House on Tuesday/Wednesday and was sent to the Senate. On Wednesday, the Senate rejected the House version.  We are waiting for conferees to be appointed by both bodies to resolve the differences. The Senate plans to remove several of the changes added by the House since they increased the cost of the Health Plan for the State, without the resources. The House version also removed the smoking and obesity requirements.

House Education Appropriations met on Wednesday morning to discuss HB582 Special Education Changes but they could not vote on the bill. The Committee also reviewed the Senate Budget and Special Provisions again. Another local calendar flexibility bill was defeated in the House State and Local Government Committee on Wednesday. NCAE did speak in favor of the bill, but it still lost by a vote of 9-6. The Senate Education Committee met Wednesday to take up several bills, but they got bogged down on the SB362 “Retired Teachers Return to Work.”  Joint Legislative Education Oversight had recommended the bill. It shortens the break-in-service from 6 months to 4 months for teachers. It also allows for contractual agreements. The members spent the entire meeting debating this “one” bill. They argued about the break-in-service, and the contract language. Michael Williamson also spoke about the fiscal impact of the shorter break and the fact that the contribution amount of 11.7 percent to the retirement system is not enough and may need to be increased. They debated many aspects of the bill and in the end Chairman Malone agreed to send it to a subcommittee for more work. The other bills listed in the committee may be back on the calendar for next week.

The House spent hours Wednesday afternoon debating HB88 Healthy Youth Act (sex education bill). After four amendments by the Democrats (which were agreed upon to get enough votes) the bill passed on second reading. The Republicans ran several amendments, most were defeated. The bill finally passed on third reading Thursday afternoon, after another long debate and numerous amendments by the Republicans (that failed). It now goes to the Senate where rumor is it may have a harder time passing.

Things were quiet in the Senate this week as they waited for the House version on the Health Plan to pass so they could work on the compromise bill. Though Senator Rand did call a meeting of the interested groups on the issue of Government Immunity, an issue many have worked on for several years. Senator Rand introduced a bill, this session, for the Trial Attorneys that seeks to eliminate NC Government Immunity for cities, towns, counties and public schools. This legislation could be a huge problem for accessing affordable insurance by the public entities and also increase the number of claims, substantially. Senator Rand has set a timeline and encouraged the groups to work to resolve their differences. This will be one to watch.  

The April 15th numbers (estimates) may be out early next week (Monday), but all predictions are that the State will be in a deeper financial hole than originally predicted. It will then be up to the House to make more cuts to the budget or find a way to add some revenue. The Senate has not passed their Finance package for the budget yet. Senate Finance did meet this week to review some the major changes they are considering for the State, in the way of taxes, but it was more information. They are still talking about taxing services, reducing the State Sales and Use Tax, closing more tax loopholes, consistency in taxing and reducing the Corporate Income Tax to encourage businesses to come to North Carolina.

On Thursday, the House Education Appropriations Committee met to discuss the Senate budget section on Community Colleges and Universities. The House Education subcommittee also met to hear several bills, though the committee spent most of its time on a minor change to the Calendar legislation. The bill was changed by NCAE with agreement from NCASA. Several amendments were approved to clarify minor sections of the bill and though Representative Stam and several Republicans voted against the bill it received a Favorable Report and was re-referred to Commerce. Next week Representative Luebke will have HB 593 on the calendar which will allow the start date to be as early as the second Monday in August. Work has started to try and pass this bill in House Education on Tuesday.

As if all this wasn’t enough the State continues to fight to find the funds to pay the bills through June 30, 2009. Directives came out to public schools this week, no more State funds unless it is for direct classroom instruction and some safety issues with respect to buses. Things are very shaky and with no money the Legislature seems intent on passing one policy bill after another. There are more than fifty bills on the House and Senate calendars to be heard on Tuesday alone. Hang on to your hats.

 

Bills Introduced Last Week:

HB 1260 Voter Preregistration and Education

HB 1473 Education Employee Associations/Equal Access Act

HB 1508 Technical Corrections -2/3rds Bonds Act of 2008.

 

House Committees:

Appropriations:

HB 582 Special Education Changes-Undetermined

Education:

HB 161 Require Six-Year Old to Attend School – Pulled from the Agenda.

HB 218 Parent & Student Educational Involvement Act Favorable Report to the Proposed Committee Substitute and re-referred to Appropriations.

HB 817 Establish NC Financial Literacy Council Favorable Report to the Proposed Committee Substitute and re-referred to Appropriations.

HB 856 Modify Charter School Law Favorable Report to Proposed Committee Substitute and re-referred to Appropriations.

HB 1029 Impact of Student Mobility on Academic Performance Favorable Report and re-referred to Rules.

Education Subcommittee on PreSchool, Elementary and Secondary Education:

HB 636 Staff Development OK on Protected Teacher Workdays-Favorable Report to Proposed Committee Substitute as amended. The bill now allows three additional days up until June 13th in the case of inclement weather or emergency conditions, and then further allows the use of up to two professional development days after those three days are used. Another amendment to changes the words “sufficient days” to week days also passed, but will have to be clarified further. Lively discussion took up most of the committee time.  Finally, an amendment or two were passed and defeated. The bill was re-referred to Commerce. Probably won’t be calendared until the week of April 27th.

HB 952 Study Merit-Based Components/Teacher Salary Favorable Report to Proposed Committee Substitute.

Judiciary II:

HB 1268 Eminent Domain Favorable Report to Committee Substitute as amended.

Judiciary III:

HB 9 No Texting While Driving Favorable Report and sent to House Floor.

Juvenile Justice:

HB 659 Study Existing Children/Youth Programs Favorable Report and sent to the House Floor.

Insurance:

HB 438 State Health Plan/Calendar Year Meeting Canceled

Pensions and Retirement:

HB 862 Study Retirement and Health Benefits Favorable Report and re-referred to Rules.

State Government/State Personnel:

HB 708 Furlough of State Employees Lengthy discussion. Discussion on the bill, no vote was taken, but it is back on the calendar for Tuesday next week.

HB 1172 Take Voluntary Furloughs/State Government & Schools Favorable Report to Proposed Committee Substitute and re-referred to Appropriations.

Local Government II:

HB 850 Local Control of School Calendar/2 Counties – Committee defeated the bill.

Education Subcommittee on Community Colleges:

HB 735 Building Code/High Schoolers at Community Colleges Favorable Report to Proposed Committee Substitute and re-referred to State government and State Personnel.

 

Senate Committees:

Education/Higher Education:

SB 1028 Encourage Volunteerism in Schools Not Heard

SB 657 SBE Develop Teacher Assistant Salary Schedule Not Heard

SB 362 Retired Teachers Return to Work Lengthy discussion concerning the time permitted for the break-in-service, IRS requirements, and retirement contributions. Chairman is sending to a subcommittee, which was not appointed.

 

House Floor:

HB 206 Affordable Housing for Local Employees Passed third reading to Committee Substitute and sent to the Senate.

HB 531 Affordable Housing for Teachers/Edgecombe County Passed third reading to Committee Substitute and sent to the Senate.

HB 76 School Board Candidate Filing Fee Passed third reading to Committee Substitute (96-20) and sent to the Senate.

SB 287 State Health Plan/Good Health Initiatives Passed second and third reading and sent to the Senate. Short-term fix for state health plan which appropriates $250 million for 2009-2010 and $462 million for 2010-2011. Deletes 90-10 option, changes enrollment period to July 1, 2009 from October 1, increases co-pays for chiropractors, speech and physical therapists, and creates a Blue Ribbon Task Force to study wellness initiatives (smoking cessation and weight control). There will be an increase in premiums from 8.6 percent to 10 percent. In addition, the change in the calendar will cost approximately $69.4 million. Several amendments were introduced and discussed. The first amendment provides guidelines for the Task Force and pharmacy benefits manager, amendment was adopted (110-6). Second Amendment- independent audit of the health plan to look for savings in processing claims, overpayments to doctors and hospitals and if overpayments were recovered, the funds would be credited to offset premiums paid by employees, amendment adopted (116-0). Third amendment – Removes operation of the health plan from legislative branch to executive branch, vote 50-60, amendment failed. Fourth amendment- clarifying language regarding the word “drugs”, amendment adopted.

HB 9 No Texting While Driving Passed second and third reading and sent to the Senate.

HB 96 Local Government Surplus Property Donation Passed second and third reading and sent to the Senate.

HB 88 Healthy Youth Act Passed second and third reading and sent to the Senate.

HB 218 Parent & Student Educational Involvement Act Passed second and third reading and sent to the Senate.

HB 659 Study Existing Children/Youth Programs Passed second and third reading and sent to the Senate.

 

Senate Floor:

SB 66 Require Arts Education Credit for Graduation Passed third reading and sent to the House.

SB 708 Amend the Compulsory School Attendance Law Passed second and third reading and sent to the House.

 

Bills in Committee Next Week

HB 538 Charlotte/Meck School Board Police

HB 1470 Study Length of School Lunch Period

HB 1471 Counties & Schools Share P.E Equipment

HB 593 Change School Starting Date

HB 1179 Equity of School Counselor Compensation

HB 708 Furlough of State Employees

HB 1221 Develop State Employee Benefits Statement

HB 193 Electronic Notice of Public Hearings

HB 442 Parental Involvement in School Discipline

SB 406 Classroom Experience for School Personnel

SB 962 Probationary Teacher Appeals

SB 1028 Encourage Volunteerism in Schools

SB 248 Conform School Board Vacancy

 

2008-09 CASH FLOW EMERGENCY AND RESTRICTIONS

 

The Governor calls for Additional Cash Flow Restrictions:

APRIL 9th LETTER TO DEPT. CHAIRS AND CFO’s

Charlie Perusse, State Budget Director

Office of State Budget and Management (http://www.osbm.state.nc.us/)

 

NC Public Schools – FY 2008-09 Cash Flow Emergency:

APRIL 13th MEMO TO NC SUPERINTENDENTS

Bill Harrison, Chairman and CEO

State Board of Education

Update: Education Budget Spreadsheet w/ Senate Figures

Two similar versions of the Senate Education numbers are provided below in PDF format:

 

CLICK HERE TO VIEW VERSION #1

CLICK HERE TO VIEW VERSION #2

 

–or —

you can copy and paste the following links into your address bar:

https://nceducation.files.wordpress.com/2009/04/harrison-senate-budget-2009-sheet1.pdf

https://nceducation.files.wordpress.com/2009/04/2009-2010-senate-education-budget-sheet1.pdf

 

Education Bills: 2009 Session

HOUSE EDUCATION BILL LIST

 

SENATE EDUCATION BILL LIST

 

NOTE :  The links above are also easily accessed via the “Pages” list found in the left-hand margin, and will be  updated as the bill filing deadline approaches.  


2009 Legislative Summary: Senate Education Special Provisions

April 13, 2009: Draft

SECTION 2.2(a) GENERAL FUND AVAILABILITY STATEMENT

Adjustments to Availability:

Reserve for Tax Adjustments $500,400,000

Federal Fiscal Stabilization Funds –Education $580,966,000

Federal Fiscal Stabilization Funds-General Purpose $129,261,500

SECTION 5.1 (a) CIVIL PENALTIES AND FORFEITURES/FUND AVAILABILITY AND APPROPRIATION Appropriations are made for the fiscal year ending June 30, 2010 as follows: School Technology $18,000,000 State Public School Fund $138,546,041 for a total of $156,546,041.

5.1(b) The University of North Carolina shall remit parking fines (held in escrow and ordered to be distributed to public schools) of $18,183,251 to the Civil Penalties and Forfeitures Fund. This means the Senate has supplanted these funds for public schools by directing them to the civil fines and forfeitures allotment.

SECTION 5.2 EDUCATION LOTTERY Funds in the amount of $368,070,208 shall be transferred from the State Lottery Fund (name change). Funds for $99,399,395 shall be allocated for Teachers in Early Grades, PreKindergarten Program $84,635,709, Public School Building Capital Fund for 2009-2010 $147,228,083, and $36,807,021 for Scholarships for Needy Students. The NC State Lottery Commission shall not transfer funds to the Education Lottery Reserve Fund for 2009-2010 or 2010-2011 fiscal years. The Lottery Reserve Fund, of $50 million, which the Governor took to keep the state running in 2008-2009, is the first fund by law where the funding is to be replaced, except for the words in this provision. This means there is no Lottery Reserve Fund available to be used if the funds to be allotted are less than those collected.

SECTION 5.5 (a) AMERICAN RECOVERY AND REINVESTMENT ACT Appropriations received by North Carolina under the ARRA total $3,418,597,166.

SECTION 6.6 FISCAL CRISIS/FISCAL FLEXIBILITY The fiscal crisis affecting the State’s economy has substantially reduced the State’s revenue projections for the 2009-2011 biennium. Section (f) The Office of State Budget Management and the State Board of Education shall each adopt policies necessary for the implement of policies for (i) the scheduling of furloughs, (11) the amount of notice that must be given to a public employee prior to the effective date of period of furlough, (iii) whether furloughs may be taken in increments of full days, (iv) the continued accrual of annual and sick leave, (v) treatment of part-time employees and (vi) other matters related to the implementation of this section. Effective July 1, 2009.

SECTION 7.1 CHILDREN WITH DISABILITIES Provides increased funding of $3,500.77 per child for a maximum of 173,249 children for 2009-2010, which reflects the 12.5% statewide cap and is an increase of $113.93 per pupil from 2008-2009 funding.

SECTION 7.2 FUNDS FOR ACADEMICALLY GIFTED CHILDREN Provides for an increase of $1,163.07 per child for 58,597 children for 2009-2010, which reflects the 4% statewide cap and is an increase of $25.88 per pupil from 2008-2009 funding.

SECTION 7.3 USE OF SUPPLEMENTAL FUNDING IN LOW-WEALTH COUNTIES This section details the distribution and expenditure of low-wealth funds. The language does not appear to have any major changes from 2007 budget provision.

SECTION 7.4 SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING This section details the distribution and expenditure of small school funds. Subsection (g) was deleted. This section provided for the distribution of funds to those LEAs who had experienced a decline in average daily membership.  The funds were directed to be used to reduce class size. These funds were non-recurring and are not included in the budget.

SECTION 7.5 REPLACEMENT SCHOOL BUSES/FUNDS The language is consistent with the special provision on school bus replacement in the 2007 budget. Funding is cut $7.5 million in the budget and provides these savings by extending the three year lease to four years, but the cut does not impact the bus replacement schedule.

SECTION 7.6 DISCREPANCIES BETWEEN ANTICIPATED AND ACTUAL ADM The language in this provision is consistent with the previous budget provisions in 2005 and 2007. This provision allows the State Board of Education to use funds appropriated to State Aid for Public Schools to make allotment adjustments in accordance with the Allotment Adjustments for ADM Growth provisions of the NC Public Schools allotment Policy Manual, the SBE may use funds appropriated to State Aid for Public Schools. The provision requires if the higher of the first or second month average daily membership is at least 2 percent or 100 students lower than anticipated, the State Board shall reduce allotments for the unit. The reduced allotments shall be based on the higher of the first or second month average daily membership plus one-half of the number of students overestimated in the anticipated average daily membership.

SECTION 7.7 LITIGATION RESERVE FUNDS The State Board may expend up to $500,000 each year for the 2009-2010 and 2010-2011 fiscal years from unexpended salary funds to pay expenses related to pending litigation.

SECTION 7.8 LEA FLEXIBILITY The State Board shall implement temporary modifications to the limitations on budget flexibility set out in GS 115C-105.25. For 2009-2010 and 2010-2011 LEAs shall make every effort to reduce spending whenever and wherever possible as long as the targeted reductions do not directly impact classroom services or any services for students at-risk or children with special needs. Within 14 days the SBE shall notify LEAs and charter schools of the amount the units shall reduce from the General Fund. The amount of the reduction is based on average daily membership. Each LEA shall report to DPI within 30 days of the effective date of the budget their budget reductions. The flexibility cut is $9,432,140.

SECTION 7.9 NORTH CAROLINA VIRTUAL PUBLIC SCHOOLS Beginning with 2010-2011 the SBE shall implement an allotment formula for e-learning through NCVPS and courses shall be available at no cost to all high school students in NC who are enrolled in the NC public schools, Department of Defense schools and schools operated by the Bureau of Indian Affairs. Funding sources for the 2009-2010 fiscal year for NCVPS will be provided from the General Fund, the American Recovery and Reinvestment Act, up to $6 million of funds appropriated for school technology and the State Public School Fund. The SBE shall report to the Joint Legislative Oversight Committee and Fiscal Research Division by December 15, 2009.

SECTION 7.10 LEARN AND EARN ONLINE Funds of $18,988,008 million are provided for the Learn and Earn Online Program, in the 2009-2010 Continuation budget, to allow high school students to enroll in college courses to qualify for college credit.

7.10(b) 1) Funds may be used for course tuition and only those technology and course fees and textbooks required for course participation. 2) A liaison position at DPI to coordinate with the universities and community colleges and communicate course availability and related information to high school administrators, teachers and counselors.

7.10(c) SBE shall determine the allocation of Learn and Earn course offerings across the State.

7.10(d) Funds shall be allotted for tuition, fees, and textbooks upon verification of the credit hour enrollment of high school students in Learn and Earn courses.

7.10(e) DPI shall report to the State Board of Education.

7.10(f) All educational entities will provide oversight and coordination to avoid duplication of courses.

7.10(g) Course quality and rigor standards shall be established and a course evaluation shall be conducted to ensure that the online courses meet established standards.

7.10(h) Local School Administrative units may purchase textbooks for Learn and Earn on-line courses through the DPI warehouse in the same way textbooks are adopted for public school students.

7.10(i) Funds for Learn and Earn Online that are unexpended or unencumbered at the end of each fiscal year shall not revert but remain available for expenditure.

7.10(j) Subsection (i) is effective June 30. 2009.

SECTION 7.11 ABCs OF PUBLIC EDUCATION The SBE shall place a one-year moratorium on financial awards paid to school personnel in the 2009-2010 fiscal year based on the 2008-09 student academic performance. In addition, SBE shall develop a plan to restructure the ABCs Accountability System and report to the Governor and the General Assembly by January 31, 2010.

SECTION 7.12 SCHOOL CONNECTIVITY INITIATIVE (a) Up to $300,000 (reduced from $600,000) may be transferred annually through June 30, 2013 to the Friday Institute at NC State to evaluate the effectiveness of using technology and its impact on 21st Century Teaching and Learning outcomes approved by the State Board of Education. The Friday Institute shall report annually to the State Board of Education on the evaluation results and recommendations for continued implementation.

(b) Of the funds appropriated $250,000 may be used for the Education E-Learning Portal.

(c) Funds allocated shall carry forward to the next fiscal year until the project is fully implemented by June 30, 2010. Effective June 30, 2009

SECTION 7.13 DROPOUT PREVENTION GRANTS 7.13(a) This section reports findings to set up dropout prevention grants. Funding of $1 million is allotted in non-recurring grants to LEAs.

7.13 (b) This section defines the list of twelve criteria noted in this section and all grants shall be made no later than November 1, 2009. The grants shall be provided in amounts up to a maximum of $150,000. Grants shall be awarded by March 1, 2010.

7.13(c) This section defines the list of nine criteria used to evaluate the impact of the dropout prevention grants. The recipients awarded the grants shall report to the Committee by January 31, 2011 and by September 30, 2011. The Committee shall make an interim report of the results of its evaluations by March 31, 2011 to the Joint Legislative Commission on Dropout Prevention and High School Graduation and the Joint Legislative Education Oversight Committee with the final report due on November 15, 2011.

7.13(d) Appropriations in the amount of $1 million for 2009-2010 and $1 million for 2010-2011 shall be awarded for new grants as well as additional grants to previous grant recipients.

7.13(e) Funds appropriated for 2009-2010 and 2010- 2011 shall not revert but shall remain available until August 31, 2011.

7.13 (f) Funds in the amount of $100,000 for each fiscal year may be used to contract a qualified vendor to assist with the evaluations.

7.13 (g) DPI may use up to $50,000 in each fiscal year for its administrative assistance to the Committee and provide technical assistance.

SECTION 7.14 DEPARTMENT OF PUBLIC INSTRUCTION/BUDGET FLEXIBILITY The Department of Public Instruction may reorganize to implement the budget reductions set out in this act and shall report to the Joint Legislative Commission on Governmental Operations on any reorganization. DPI is cut 100 positions in 2009-2010 and an additional 200 positions in 2010-2011.

SECTION 7.15 BUSINESS EDUCATION TECHNOLOGY ALLIANCE This provision repeals previous statute.

SECTION 7.16 CRITICAL FOREIGN LANGUAGE PILOT FUNDS DO NOT REVERT

Funds appropriated for the Critical Foreign Language Pilot that are unexpended or unencumbered shall not revert, but shall remain available for expenditure through June 30, 2010. These funds ($500,000) were cut from the 2009-2010 budget.

SECTION 7.17 NORTH CAROLINA 1:1 LEARNING PROJECT  Funds appropriated for the North Carolina 1:1 Learning Project that are unexpended or unencumbered at the end of the 2008-2009 fiscal year shall not revert but shall remain available for expenditure through June 30, 2010.

SECTION 7.18 ASSESSMENT AND ACCOUNTABILITY Appropriations for assessment and accountability shall be used to develop new end-of-course tests, identify national assessments, or both as determined by the SBE. The new tests shall be aligned with the new essential standards and included in the State Board of Education’s new accountability restructuring plan.

7.18(b) SBE shall investigate and pilot a developmentally appropriate diagnostic assessment of students in elementary grades during the 2009-2010 school year that will enable teachers to determine student learning needs and individualized instruction and ensure that students are adequately prepared for the next level of coursework in the standard course of study. The SBE shall report to the Joint Legislative Education Oversight Committee, the Fiscal Research Division and the Office of State Budget and Management by December 1, 2011.

7.18(c) Appropriated funds that remain unexpended and unencumbered at the end of 2009-2010 shall not revert but shall remain available for expenditure through June 30, 2011.                    

SECTION 7.19 DEVELOPMENT OF A PREK-20 DATA SYSTEM  The Department of Public Instruction, the North Carolina Community College System, and The University of North Carolina shall collaborate to develop and systematically determine the technical specifications and data standards for a PreK-20 data system to centralize student data collected about students enrolled in prekindergarten programs through doctoral programs. The agencies shall develop strategies for tracking students for five years after they complete their education at a North Carolina public educational institution.   

7.19(b) Defines the standards and specifications to be included.

7.19(c) Standards and specifications shall conform to the guidelines governing any funds received through the American Recovery and Reinvestment Act.

7.19(d) Standards and specifications shall be submitted to Education Cabinet by January 1, 2010 and after review the Education Cabinet will make recommendations to the Joint Legislative Education Oversight Committee, the Fiscal Research Division and the Office of State Budget and Management by March 1, 2010.

SECTION 7.20 ELIMINATE CERTAIN TESTS The State Board of Education shall identify and eliminate unnecessary or duplicate tests not required by the federal government for NCLB to determine Adequate Yearly Progress.

7.20(c) Makes revisions to statute GS 115C-174.11(a) The SBE shall adopt and provide to LEAs developmentally appropriate individualized assessment instruments consistent with the Basic Education Program for the first and second grades, rather than standardized tests. LEAs shall not used standardized tests except as required as a condition of receiving a federal grant under the Reading First Program. Deletes section in reference to Competency Testing Program.

GS 115C-174.11(c) Defines the annual testing program specifications for grades three through 12.

New section states: SBE shall adopt the tests for grades three through 12 that are required by federal law or as a condition of a federal grant.

GS 115C-174.11(d) SBE shall not require the public schools to administer any standardized tests except for those required by federal law or as a condition of a federal grant and will provide to LEAs all tests required by federal law or federal grant.

7.20 (d) Addresses the responsibilities of the agencies. Revisions include: Students in a school shall not be subject to field tests or other standardized tests during a two-week period preceding the administration of end-of-grade tests, end-of-course tests, or the school’s regularly scheduled final exams, inserts Chief Executive Officer to replace Superintendent of Public Instruction in defining responsibility for policies adopted by State Board of Edition and in notifying local boards of education by October 1 of each year of any field tests to be administered in the schools. It deletes language “competency testing programs” for the word tests. The attached link will provide the full text of this provision on pages 35, 36, and 37.

http://www.ncga.state.nc.us/Sessions/2009/Bills/Senate/PDF/S202v3.pdf

SECTION 7.21 REMOVE BARRIERS TO LATERAL ENTRY INTO TEACHING The State Board of Education shall 1) review the lateral entry program and identify and remove barriers to lateral entry of skilled individual from the private sector into the teaching profession, 2) reduce the coursework requirements for lateral entry, and 3) provide additional opportunities for individuals to complete coursework online and at community colleges. The SBE shall report to the Joint Legislative Education Oversight Committee by January 15, 2010.

SECTION 7.22 NO PAY DECREASE FOR TEACHERS WHO BECOME ASSISTANT PRINCIPALS This provision amends statute to read; A teacher who becomes an assistant principal without a break in service shall be paid, on a monthly basis, at least as much as he or she would earn as a teacher employed by that LEA. Effective July 1, 2009 and applies to all persons initially employed as assistant principals on or after that date.

SECTION 7.23 INCREASE CLASS SIZE The provision states the maximum average class size limits for each grade level in the public schools shall be increased by two students higher beginning with the 2009-2010 school year than they were for the 2008-09 school year.  The increase is to remain in effect for a maximum of two years and that lower class sizes be restored as soon as State revenues make it possible.

SECTION 7.25 DEPOSIT PUBLIC SCHOOL BUILDING CAPITAL FUNDS INTO STATE PUBLIC SCHOOL FUND The Secretary of Revenue shall not remit any funds for credit to the Public School Building Capital Fund during the 2009-2011 fiscal biennium, but shall deposit in the State Public School Fund the funds that would have been deposited in the Public School Building Fund. DPI may continue to use these funds to support six positions in the School Planning Division.

SECTION 7.26 TEACHERS FOR GEOGRAPHICALLY ISOLATED K-12 SCHOOLS The SBE shall modify its policy on the allotment of additional classroom teachers to schools containing grades K-12 when consolidation is not feasible due to the geographic isolation of the school. When the average daily members is less than 1.5 per square mile, the SBE will 1) allot teachers to the geographically isolated school on the basis of one classroom teacher per grade level and 2) allot teachers to the remainder of the LEA under the regular teacher allotment formula.

SECTION 7.27 ENSURE ACCESS TO THE EVAAS SYSTEM The SBE shall use funds appropriated to the State Public School Fund for 2009-10 fiscal biennium to ensure that all LEAs and charter schools have access to SAS EVAAS.

SECTION 7.28 LOCAL BOARDS MUST INFORM PUBLIC ABOUT SCHOOL REPORT CARDS This provision adds a new subdivision to statute to read: To inform the public about the North Carolina School Report Cards issued by the State Board of Education – Each local board of education shall ensure that the report card issued for it by the SBE receives wide distribution to the local press or otherwise.”

SECTION 7.29 PLAN FOR STATEWIDE MOTOR COACH PERMIT The SBE, in conjunction with the Division of Motor Vehicles, shall develop a plan for a Statewide Permit for commercial motor coach companies that seek to contract with local school systems to transport student, school personnel, and other persons authorized by the school system on school-sponsored trips.  The purpose is i) ensure student safety, ii) ensure safe operations by motor coach companies (iii) minimize paperwork, (iv) minimize visits to the motor coach companies by local school systems, and (v) minimize the need for motor coach companies to respond to multiple requests for information from multiple local school systems.

7.29(b) Agencies and interested parties will develop a plan for a permit.

7.29(c) The plan shall include, but not be limited to 13 components.

7.29(d) The SBE and the Division of Motor Vehicles shall consult on the proposed plan to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division by January 1, 2010. Before the plan is implemented, the Commission shall make any recommendations, including proposed legislation, to the 2010 General Assembly. An appropriation of $5,000 non-recurring to develop the permit is included in the budget.

SECTION 8.11 ELIMINATE SOME TUITION WAIVERS  Amends provisions (b1) and states the State Board shall waive tuition and fees for courses taken by high school students at community colleges, including students in early college and middle college high school programs. In addition, the State Board also shall waive tuition and fees for persons not enrolled in elementary or secondary schools taking courses leading to a high school diploma or equivalent certificate.

8.11(b) Modified the language for Community Colleges, to eliminate legal residents of North Carolina who have attained the age of 65 to permit them to attend classes for credit or noncredit without the required payment of tuition.

SECTION 9.6 REPEAL FULL TUITION GRANT FOR GRADUATES OF NORTH CAROLINA SCHOOL OF SCIENCE AND MATHEMATICS WHO ATTEND A STATE UNIVERSITY This provision repeals the full tuition grant made available to students of the North Carolina School of Science and Mathematics effective July 1, 2013.  The grant is available only for students enrolled at the School of Science and Mathematics for the 2007-2008 academic year or earlier.  

SECTION 9.8 AMEND LEGISLATIVE TUITION GRANT FOR PART-TIME STUDENTS

This provision states the legislative tuition grant shall be awarded on a pro rata basis to any part-time licensure student who is enrolled to take at least nine (reduced in 2008 to six) hours of undergraduate academic credit per semester. This also applies to those students in a program intended to result in a license in teaching or nursing at an approved institution. Effective July 1, 2009.

SECTION 9.13 NORTH CAROLINA CENTER FOR ADVANCEMENT OF TEACHING (NCCAT)/PROPERTY SETTLEMENT IF NCCAT TRANSFERRED FROM UNC SYSTEM OR CEASES TO EXIST The provision wants NCCAT transferred to another State agency and then proceeds to give the property in western North Carolina to Western Carolina University and provides easement to the property and eliminates responsibility for the property (Jackson County) by Western Carolina. Subsection (b) sets requirements for the buildings and land to be transferred to Western Carolina if NCCAT ceases to exist.

SECTION 10.8 CONTINUE MORE AT FOUR PROGRAM FOR 2009-2010 FISCAL YEAR

The Department of Public Instruction and the Division of Child Development at DHHS shall continue the implementation of the More at Four prekindergarten program, through the 2009-2010 fiscal year. The program is available to all counties who choose to participate. The Office of School Readiness of the Department of Public Instruction shall reduce the reimbursement rates per slot statewide. The program is reduced by $40 million recurring beginning for the 2009-2010 fiscal year. A child whose parent is deployed in the military shall be eligible for participation in the More-at-Four Program.

SECTION 10.9 MORE AT FOUR PROGRAM The More at Four Program is transferred to the Department Health and Human Services effective July 1, 2009. The star rating system currently in place for licensure shall have an additional Plus designation identifying those programs offering a high quality four-year-old program. The Plus program shall be no less stringent than the current standards, and eligibility requirements shall be in accordance with current child care subsidy eligibility requirement. The new reimbursement rate plan shall be in accordance with the child care subsidy program implemented for the 2010-2011 fiscal year. Beginning in 2010-2011, the screening process for children applying for subsidy for a Plus program shall occur through the regular subsidy application process in collaboration with local partnerships of the NC Partnership for Children, Inc., county departments of social services and local school administrative units. On or before December 1, 2009 the Division of Child Development shall report on the star-rated system and the incorporation of the Plus Program.

SECTION 10.13 REENACT 2007 SPECIAL PROVISION ON COLLABORATION ON SCHOOL-BASED CHILD AND FAMILY TEAM INITIATIVE The provision requires the Superintendent of DPI to ensure that the department collaborates on the development and implementation of the school-based child and family team initiative and DPI shall provide required support to ensure that the initiative is successful.

SECTION 10.14 CLOSURE OF WRIGHT AND WHITAKER SCHOOLS DHHS, Division of Mental Health and Developmental Disabilities, and Substance Abuse Services, shall close the Wright School and Whitaker School, effective December 31, 2009. They shall plan a transition plan for each student currently attending these schools, which shall include assisting in the location of community services, working with the public school system in preparing or updating the student’s IEP and work with the Local management entity to ensure the needs of the student are met.  The Division shall report no later than August 30, 2010 on the transition and shall ensure all possible measures are taken to provide a state job for the employees of these schools.

SECTION 10.24 FUNDS FOR SCHOOL NURSES This provision appropriates funds for the school nurse initiative and shall be used to supplement and not supplant other State, local or federal funds appropriated or allocated for this purpose. Funds appropriated to the Department of Health and Human Services, Division of Public Health, for 2009-2010 and 2010-2011 fiscal years, in the sum of $1 million each fiscal year shall be used to hire 20 additional school health nurses bring the total number of school nurses to 232. 

SECTION 10.26 PUBLIC HEALTH IMPROVEMENT PLAN (includes BMI of public school students) DHHS will develop a five-year Public Health Improvement Plan, by March 31, 2010. As a part of the Plan a balance of funds will be used from the Flexible Spending Account and distributed to the counties based on a series of elements. One of the elements is the Body Mass Index (BMI) of public school students

SECTION 10.43 PROGRAM OF PREVENTION OF ABUSE AND NEGLECT Removes references of the Department of Public Instruction and State Board of Education with regard to Program on Prevention of Abuse and Neglect.

SECTION 10.54 EVALUATION AND IMPLEMENTATION OF COST EFFECTIVE EDUCATION FOR STUDENTS WHO ARE DEAF OR HEARING-IMPAIRED  The Department of Health and Human Services, in collaboration with the Department of Public Instruction and the Free Appropriate Public Education Task Force shall develop a plan to reduce the costs of residential instruction for students who are deaf or hearing-impaired  and will include 1) the transitioning of students served by the Western North Carolina School for the Deaf and Eastern North Carolina School for the Deaf to local education agencies and the identification of LEA resources requirements for the provision of appropriate instruction and 2) additional instructional alternatives. The agencies will report their findings and reduction plan to the Senate Appropriations Committee on Health and Human Services, the House of Representative Appropriations Subcommittee on Health and Human Services, the Senate Appropriations Subcommittee on Education /Higher Education, the House of Representatives Appropriations Subcommittee on Education, and the Fiscal Research Division no later than April 1, 2010.

SECTION 10.78 DHHS BLOCK GRANTS

(dd) MATERNAL AND CHILD HEALTH BLOCK GRANT If federal funds are received under the Maternal and Child Health Block Grant for abstinence education for 2009-2010 those funds shall be transferred to the SBE to be administered by DPI. DPI shall use the funds to establish an Abstinence Until Marriage Education Program and shall delegate to one or more persons the responsibility of implementing the program. 

SECTION 16.6 REDUCE DEPARTMENT SHARE OF PAYMENT FOR JUDGMENTS AGAINST COUNTY AND CITY BOARDS OF EDUCATION The provision requires LEAs to cover 50 percent of the costs the state was paying on tort claims as a result of accidents involving schools buses and school transportation serviced vehicles. The state has budgeted $4 million annually to the SBE to cover the costs of these claims, which has not been sufficient. The claims have increased over the last three years and are expected to be higher than 2007-2008 when the 2008-2009 fiscal year closes. The language on the funds, to cover liability of the first $150,000, previously provided to SBE, is stricken from the provision (law). It further amends statute and states that on January 1, and June 1 of each year each county and city board of education shall pay the State Board of Education an amount equal to 50 percent of the damages paid by the State Board of Education, during the preceding six months. These receipts shall be used to offset 50 percent of the costs incurred by the State Board of Education. This becomes effective July 1, 2010.

SECTION 18.6 ELMINATE SUPPORT OUR STUDENTS PROGRAM Provision repeals Part 5A of Article 3 of Chapter 143B of the General Statutes.

SECTION 25.6 ALLOW THE DEPARTMENT OF TRANSPORTATION TO REQUIRE FACILITIES CONSTRUCTED WITHIN RIGHTS-OF-WAY TO BE CONSTRUCTED FROM PERMEABLE PAVEMENT The provision states the Department of Transportation shall, prior to the beginning of construction, determine whether all sidewalks and other facilities primarily intended for the use of pedestrians and bicycles are to be constructed within the right-of-way of a public street or highway that is a part of the State highway system or an urban highway system must be constructed of permeable pavement. Effective October 1, 2009

SECTION 26.14 ALL-STATE SUPPORTED PERSONNEL/NO SALARY INCREASES Provision states salaries and related benefits in effect June 30, 3009 shall remain in effect for the 2009-2010 and 2010 and 2011 fiscal year.

SECTION 26.15 TEACHER SALARY SCHEDULES This provision designates the salary increases for “A” teachers, “M” teachers and National Board Certified teachers. Funds of $56,765,776 are provided in the budget to support a step increase for teachers and instructional support personnel. This starting salary for beginning teachers (A0) is still $3,043 per month. The salaries of teachers with a Master’s degree (M0) is $3,347 per month. NBPTS salary at Year 3 is $3,656 per month for A0 and $4,021 for those with Master’s degree.

(b) Longevity payments shall be 1.5% for 10-14 years, 2.25% for 15-19 years, 3.25% for 20-24 years, and 4.5% for 25 or more years of service. The Senate restored these funds cut by the Governor in her budget proposal.

(c) Certified teachers at the six-year degree level shall receive a salary supplement of $126.00 per month. Certified teachers based on preparation at the doctoral degree level shall receive a salary of supplement of $253.00 per month based on “M” classification.

(d) The first salary step for school psychologists shall be equivalent to Step 5 on the teacher salary schedule classified as “M” teachers.

(e) Speech pathologists who are certified as “M” teachers shall be paid on the school psychologists’ salary schedule.

(f) Certified school nurses, employed in the public schools, shall be paid on “M” schedule.

(g) “Teacher” includes instructional support schedule.

SECTION 26.16 SCHOOL BASED ADMINISTRATOR SALARY SCHEDULE Funds are provided to support a base step increase for school administrator (average increase 1.59%). Assistant Principal 0-4 years experience shall still receive $3,781 per month. School administrators with a six year degree shall receive $126/month and $253/month for a doctoral degree. For 2006-2007 and subsequent fiscal years, the stipend cannot exceed the difference between the beginning salary of an assistant principal plus the cost of tuition, fees and books and any fellowship funds received by the intern as a full-time student, including awards of the Principal Fellows Program.

SECTION 26.17 CENTRAL OFFICE SALARIES This provision designates the salary schedule for assistant superintendents, associate superintendents, directors/coordinators, supervisors and finance officers with certification based on academic preparation at the six-year degree level shall receive a salary supplement of $126.00 per month in addition to the compensation provided pursuant to this section. Effective on July 1, 2009.

SECTION 26.18 NONCERTIFIED SCHOOL PERSONNEL SALARIES The annual salary in effect June 30, 2009 for all permanent full-time noncertified public school employees whose salaries are supported from the State’s General Fund shall remain in effect for the 2009-2010 and 2010-2011.

SECTION 26.19 BONUS FOR CERTIFIED PERSONNEL AT THE TOP OF THEIR SALARY SCHEDULES Non-recurring funds of $8,674,720 were appropriated to provide one-time bonuses. Effective July 1, 2009, any permanent personnel employed on July 1, 2009, and paid on the teacher salary schedule with 31+ years of experience shall receive a one-time bonus equivalent to one and eight-tenths percent (1.8%).   Principals and assistant principals paid at the top of the salary schedule shall receive a one-time bonus equivalent to two percent (2.0%). For permanent part-time personnel, the one-time bonus is adjusted pro rata Personnel defined under G.S. 115C-325(a)(5a) are not eligible to receive the bonus.

SECTION 26.20 SALARY-RELATED CONTRIBUTIONS/EMPLOYER Effective July 1, 2009 the State’s employer contribution rates for retirement and related benefits are 8.65 percent, Medical and Hospital 4.40 percent in 2009-2010 and 4.80 percent in 2010-2011, Disability Income Plan 0.52 percent, Death Benefits 0.16 percent. Effective July 1, 2010 the State’s employer contribution rates for retirement and related benefits and is 9.05 percent. The retirement portion of the above related contribution is 3.714 percent in 2009-2010 and 3.714 percent in 2010-2011. Please note the rates may change as the State Health Plan has not been finalized for next year. The number may get higher. The Treasurer is also pushing to increase the contribution amount to the retirement system.

*Note: Principals’ Executive Program was funded with non-recurring dollars in 2008-2009. Those funds are not included in the Senate budget.

2009 LEGISLATIVE SESSION MEMO-SENATE BUDGET

 

The Senate began releasing their budget Monday and the highlights for public schools are as follows:

The 2009-2010 Senate Education Budget was cut by approximately 6 percent $7,629,717,045.

Reduction Items

Class Size Reduction            (2 students)                                                $322,705,848    Recurring

Student Accountability                                                            $  38,339,798    Recurring

Textbooks                                                                                    $  37,977,278    Non-recurring

Continuation Adjustments                                                            $  10,114,135    Recurring

LEA Discretionary Reduction                                                            $    9,432,140    Recurring

Central Office Cut 5.3%                                                            $    6,470,262    Recurring

Staff Development                                                                        $    6,278,960    Non-recurring

Corporate Tax-Capital Funds                                                            $  60,500,000    First year

                                                                                                         $  64,500,000              Second year           

Fund One LEA per County 2010-2011                                    $  11,393,230    Recurring

Expansion Items

Assessments and Accountability                                                $    3,000,000    Non-recurring

School Reform                                                                        $    3,023,546    Recurring

School Reform                                                                        $       342,000    Non-recurring

NCVPS                                                                                    $    2,000,000    Recurring

Learn and Earn                                                                        $    3,601,265    Recurring

Learn and Earn                                                                        $       120,000    Non-recurring           

 

Salaries: Unknown at this time, though rumor has it the Teachers/Principals Step Increase is in the full budget, which we have not seen yet.

Longevity was funded.

DPI reductions were in the areas of positions with the possible elimination of 100 agency positions in 2009-2010 and 200 more positions in 2010-2011.  Total savings $18 million in the next two years.

The More-at Four Program was decreased by $86 million and moved to Dept. of Health and Human Resources. Also, transfers cost of 50 percent of State Tort Claims to LEAs

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