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North Carolina House Bill H365

North Carolina 2025-2026 Regular Session

North Carolina House Bill H365 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 1
4-HOUSE BILL 365
3+H D
4+HOUSE BILL DRH10164-NGa-8A
5+
56
67
78 Short Title: Workforce Education Act. (Public)
8-Sponsors: Representatives Reives, Willis, Campbell, and Roberson (Primary Sponsors).
9-For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10-Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
11-March 12, 2025
12-*H365 -v-1*
9+Sponsors: Representative Reives.
10+Referred to:
11+
12+*DRH10164 -NGa-8A*
1313 A BILL TO BE ENTITLED 1
1414 AN ACT TO DIRECT THE STATE BOARD OF COMMUNITY COLLEGES TO REVISE ITS 2
1515 FUNDING MODEL FOR COMMUNITY COLLEGES AND ESTABLISH 3
1616 ENROLLMENT INCREASE RESERVE, TO EXPAND FUNDING FOR COOPERATIVE 4
1717 INNOVATIVE HIGH SCHOOLS, TO CREATE GRANT PROGRAMS FOR THE 5
1818 DEPARTMENT OF PUBLIC INSTRUCTION TO PROMOTE CTE PROGRAMS AND 6
1919 OTHER EDUCATIONAL OPPORTUNITIES, AND TO PROMOTE COMMUNITY 7
2020 COLLEGE ENROLLMENT TO PUBLIC SCHOOL STUDENTS . 8
2121 The General Assembly of North Carolina enacts: 9
2222 10
2323 PART I. DIRECT THE STATE BOARD OF COMMUNITY COLLEGES TO REVISE 11
2424 ITS FUNDING MODEL FOR COMMUNITY COLLEGES AND ESTABLISH 12
2525 ENROLLMENT INCREASE RESERVE 13
2626 SECTION 1.(a) The following session laws are repealed: 14
2727 (1) Subsection (b) of Section 8.3 of S.L. 2011-145. 15
2828 (2) Subsection (a) of Section 10.4 of S.L. 2013-360. 16
2929 SECTION 1.(b) The State Board of Community Colleges shall revise its funding 17
3030 formula for community colleges and allocate funds under that revised formula, beginning with 18
3131 the 2025-2026 fiscal year, according to the following minimum criteria: 19
3232 (1) Each community college shall continue to receive a base allocation of funds. 20
3333 (2) In addition to the base allocation of funds, funds shall be provided to 21
3434 community colleges based on the number of full-time equivalent (FTE) 22
3535 students enrolled in the following: 23
3636 a. Curriculum, workforce continuing education, and Basic Skills courses. 24
3737 b. Courses and programming conducted under the Customized Training 25
3838 Program and the Small Business Center Network. 26
3939 (3) Community colleges shall calculate FTE enrollment as the higher of the 27
4040 current year's total enrollment or the average enrollment of the last two 28
4141 academic years. 29
4242 (4) Funds allocated pursuant to subdivision (2) of this subsection shall be 30
4343 weighted based on the workforce sector of each course, as determined by the 31
4444 State Board. In making its determinations, the State Board shall consider 32
4545 salary data and labor market demand for the applicable workforce sector. 33
46-SECTION 1.(c) G.S. 115D-5 is amended by adding a new subsection to read: 34 General Assembly Of North Carolina Session 2025
47-Page 2 House Bill 365-First Edition
46+SECTION 1.(c) G.S. 115D-5 is amended by adding a new subsection to read: 34
47+H.B. 365
48+Mar 11, 2025
49+HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
50+Page 2 DRH10164-NGa-8A
4851 "(aa) The State Board of Community Colleges shall review and revise, as necessary, its 1
4952 workforce sector designations for curriculum, workforce continuing education, and Basic Skills 2
5053 courses at community colleges by January 15, 2027, and every two years thereafter." 3
5154 SECTION 1.(d) G.S. 115D-31(e) reads as rewritten: 4
5255 "(e) If receipts for community college tuition and fees exceed the amount certified in 5
5356 General Fund Codes at the end of a fiscal year, the State Board of Community Colleges shall 6
5457 transfer the amount of receipts and fees above those budgeted to the Enrollment Growth Reserve. 7
5558 may allocate those receipts to the community colleges for operating costs according to a formula 8
5659 adopted by the State Board. Funds in the Enrollment Growth Reserve allocated pursuant to this 9
5760 subsection shall not revert to the General Fund and shall remain available to the State Board until 10
5861 expended. The State Board may allocate funds in this reserve to colleges experiencing an 11
5962 enrollment increase greater than five percent (5%) of budgeted enrollment levels." 12
6063 SECTION 1.(e) G.S. 115D-31 is amended by adding a new subsection to read: 13
6164 "(e1) The State Board shall administer the Enrollment Increase Reserve as provided in 14
6265 G.S. 115D-31.4." 15
6366 SECTION 1.(f) Article 3 of Chapter 115D of the General Statutes is amended by 16
6467 adding the following new section to read: 17
6568 "§ 115D-31.4. Enrollment Increase Reserve. 18
6669 (a) There is established the Enrollment Increase Reserve (Reserve) to be administered by 19
6770 the State Board of Community Colleges. The purpose of the Reserve is to allow the State Board 20
6871 to provide funds to community colleges to account for enrollment increases beyond budgeted 21
6972 enrollment levels. 22
7073 (b) Monies in the Reserve shall consist of funds appropriated by the General Assembly 23
7174 in the Current Operations Appropriations Act for a fiscal year. The State Board shall include in 24
7275 its annual enrollment request the appropriation to the Reserve that is needed to fund enrollment 25
7376 increases in the next fiscal year. 26
7477 (c) The State Board may allocate monies from the Reserve to a community college with 27
7578 an eligible increase in full-time equivalent (FTE) enrollment according to a formula adopted by 28
7679 the State Board. An eligible increase in FTE enrollment is either of the following: 29
7780 (1) An increase in FTE enrollment of more than five percent (5%) of the budgeted 30
7881 enrollment level in any of the following course categories: 31
7982 a. Curriculum. 32
8083 b. Workforce continuing education. 33
8184 c. Basic Skills. 34
8285 (2) An increase in total FTE enrollment of more than 325 students. 35
8386 (d) Monies in the Reserve shall not revert at the end of each fiscal year but shall remain 36
8487 available until expended for the purposes of this section." 37
8588 SECTION 1.(g) There is appropriated from the General Fund to the Community 38
8689 Colleges System Office the sum of ninety-four million dollars ($94,000,000) in recurring funds 39
8790 for the 2025-2026 fiscal year to implement subsections (a) through (d) of this section. There is 40
8891 appropriated from the General Fund to the Enrollment Increase Reserve, as established by this 41
8992 section, the sum of six million dollars ($6,000,000) in nonrecurring funds for the 2025-2026 42
9093 fiscal year for the purposes described in G.S. 115D-31.4, as enacted by this section. 43
9194 44
9295 PART II. COOPERATIVE INNOVATIVE HIGH SCHOOL FUNDING EXPANSION 45
9396 SECTION 2.(a) Part 9 of Article 16 of Chapter 115C of the General Statutes is 46
9497 amended by adding a new section to read: 47
9598 "§ 115C-238.54A. Cooperative innovative high schools – funding based on county 48
9699 development tier designation. 49
97100 (a) Development Tier One Areas. – The Department shall allocate the following amounts 50
98101 from the cooperative innovative high school supplemental allotment to a local school 51 General Assembly Of North Carolina Session 2025
99-House Bill 365-First Edition Page 3
102+DRH10164-NGa-8A Page 3
100103 administrative unit located in a development tier one area as defined in G.S. 143B-437.08 with a 1
101104 cooperative innovative high school that was approved by the State Board of Education pursuant 2
102105 to G.S. 115C-238.51A(c): 3
103106 (1) The sum of seven hundred forty thousand dollars ($740,000) in recurring 4
104107 funds for the first cooperative innovative high school approved by the State 5
105108 Board. 6
106109 (2) The sum of three hundred seventy thousand dollars ($370,000) in recurring 7
107110 funds for each subsequent cooperative innovative high school approved by the 8
108111 State Board. 9
109112 (3) For a virtual cooperative innovative high school, the Department shall allocate 10
110113 the sum of two hundred thousand dollars ($200,000) in recurring funds from 11
111114 the cooperative innovative high school supplemental allotment to the local 12
112115 school administrative unit for each fiscal year. 13
113116 (4) For the Northeast Regional School of Biotechnology and Agriscience, the 14
114117 Department shall allocate the sum of three hundred ten thousand dollars 15
115118 ($310,000) in recurring funds from the regional school supplemental 16
116119 allotment for the school for each fiscal year. 17
117120 (b) Development Tier Two Areas. – The Department shall allocate the following amounts 18
118121 from the cooperative innovative high school supplemental allotment to a local school 19
119122 administrative unit located in a development tier two area as defined in G.S. 143B-437.08 with 20
120123 a cooperative innovative high school that was approved by the State Board of Education pursuant 21
121124 to G.S. 115C-238.51A(c): 22
122125 (1) The sum of five hundred ninety thousand dollars ($590,000) in recurring funds 23
123126 for the first cooperative innovative high school approved by the State Board. 24
124127 (2) The sum of two hundred ninety-five thousand dollars ($295,000) in recurring 25
125128 funds for each subsequent cooperative innovative high school approved by the 26
126129 State Board. 27
127130 (3) For a virtual cooperative innovative high school, the Department shall allocate 28
128131 the sum of two hundred thousand dollars ($200,000) in recurring funds from 29
129132 the cooperative innovative high school supplemental allotment to the local 30
130133 school administrative unit for each fiscal year. 31
131134 (c) Development Tier Three Areas. – The Department shall allocate the following 32
132135 amounts from the cooperative innovative high school supplemental allotment to a local school 33
133136 administrative unit located in a development tier three area as defined in G.S. 143B-437.08 with 34
134137 a cooperative innovative high school that was approved by the State Board of Education pursuant 35
135138 to G.S. 115C-238.51A(c): 36
136139 (1) The sum of five hundred fifty thousand dollars ($550,000) in recurring funds 37
137140 for the first cooperative innovative high school approved by the State Board. 38
138141 (2) The sum of two hundred seventy-five thousand dollars ($275,000) in recurring 39
139142 funds for each subsequent cooperative innovative high school approved by the 40
140143 State Board. 41
141144 (3) For a virtual cooperative innovative high school, the Department shall allocate 42
142145 the sum of two hundred thousand dollars ($200,000) in recurring funds from 43
143146 the cooperative innovative high school supplemental allotment to the local 44
144147 school administrative unit for each fiscal year. 45
145148 (d) Applicability of Funds Allocated Pursuant to this Section. – The allotment of funds 46
146149 to local school administrative units pursuant to the provisions of this section shall include a 47
147150 cooperative innovative high school approved by the State Board of Education pursuant to 48
148151 G.S. 115C-238.51A(c) since July 1, 2015, that is operated by a local school administrative unit 49
149152 but that has not received the cooperative innovative high school allotment in a prior fiscal year. 50 General Assembly Of North Carolina Session 2025
150-Page 4 House Bill 365-First Edition
153+Page 4 DRH10164-NGa-8A
151154 Funds shall not be allocated to local school administrative units for cooperative innovative high 1
152155 schools approved by the State Board pursuant to G.S. 115C-238.51A(b)." 2
153156 SECTION 2.(b) There is appropriated from the General Fund to the Department of 3
154157 Public Instruction the sum of forty million dollars ($40,000,000) in recurring funds for the 4
155158 2025-2026 fiscal year to implement the provisions of this section. 5
156159 6
157160 PART III. DEPARTMENT OF PUBLIC INSTRUCTION GRANT PROGRAMS 7
158161 8
159162 GRANTS FOR STEM EDUCATION 9
160163 SECTION 3.1. There is appropriated from the General Fund to the Department of 10
161164 Public Instruction the sum of thirty million dollars ($30,000,000) in recurring funds for the 11
162165 2025-2026 fiscal year to create a grant program in collaboration with the Community Colleges 12
163166 System Office for public school units to promote science, technology, engineering, and math 13
164167 (STEM) education. Grants shall be used for professional development, classroom technology, 14
165168 lab upgrades, or coding programs for teachers teaching STEM courses. The Department shall 15
166169 make an application for grants available to public school units prior to August 1 of each school 16
167170 year. Public school units applying for grants shall submit their application to the Department by 17
168171 October 1 of each school year. The Department shall make determinations on grant recipients by 18
169172 November 1 of each school year and disburse grants funds within 60 days of making the 19
170173 determination. 20
171174 21
172175 GRANTS TO EXPAND CTE OPPORTUNITIES 22
173176 SECTION 3.2. There is appropriated from the General Fund to the Department of 23
174177 Public Instruction the sum of twenty million dollars ($20,000,000) in recurring funds for the 24
175178 2025-2026 fiscal year to create a grant program in collaboration with the Community Colleges 25
176179 System Office for public school units to expand career and technical education course offerings, 26
177180 dual enrollment opportunities, and certification pathways for students in grades nine through 12. 27
178181 The Department shall make an application for grants available to public school units prior to 28
179182 August 1 of each school year. Public school units applying for grants shall submit their 29
180183 application to the Department by October 1 of each school year. The Department shall make 30
181184 determinations on grant recipients by November 1 of each school year and disburse grants funds 31
182185 within 60 days of making the determination. 32
183186 33
184187 INDUSTRY-SCHOOL PARTNERSHIP GRANTS 34
185188 SECTION 3.3. There is appropriated from the General Fund to the Department of 35
186189 Public Instruction the sum of twenty-five million dollars ($25,000,000) in recurring funds for the 36
187190 2025-2026 fiscal year to create a grant program in collaboration with the Community Colleges 37
188191 System Office for public school units to create industry-school partnerships to facilitate 38
189192 internships, apprenticeships, and project-based learning opportunities. The Department shall 39
190193 make an application for grants available to public school units prior to August 1 of each school 40
191194 year. The application shall include at least one industry partner that the public school unit intends 41
192195 to collaborate with to achieve the goals of the program enumerated in this section. Public school 42
193196 units applying for grants shall submit their application to the Department by October 1 of each 43
194197 school year. The Department shall make determinations on grant recipients by November 1 of 44
195198 each school year and disburse grants funds within 60 days of making the determination. 45
196199 46
197200 PART IV. PROMOTE COMMUNITY COLLEGE ENROLLMENT WITHIN PUBLIC 47
198201 SCHOOLS 48
199202 SECTION 4. There is appropriated from the General Fund to the Department of 49
200203 Public Instruction the sum of ten million dollars ($10,000,000) in recurring funds for the 50
201204 2025-2026 fiscal year for the Department to collaborate with the Community Colleges System 51 General Assembly Of North Carolina Session 2025
202-House Bill 365-First Edition Page 5
205+DRH10164-NGa-8A Page 5
203206 Office to create an awareness campaign in public school units to promote enrollment in 1
204207 community colleges. The campaign shall inform students and parents of career pathways, 2
205208 internships, apprenticeships, dual enrollment opportunities, and certification pathways available 3
206209 through the Community College System. 4
207210 5
208211 PART V. EFFECTIVE DATE 6
209212 SECTION 5. This act becomes effective July 1, 2025. 7