2009 Legislative Summary: Senate Education Special Provisions

April 13, 2009: Draft


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.


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.


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.  


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.


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.


(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.

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