North Carolina 2025-2026 Regular Session

North Carolina House Bill H420 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 420
	3	+	H D
	4	+	HOUSE BILL DRH30188-MTa-22
	5	+
5	6
6	7
7	8		Short Title: Sound Basic Education for Every Child. (Public)
8		-	Sponsors: Representatives von Haefen, Ball, Hawkins, and Prather (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Rules, Calendar, and Operations of the House
11		-	March 18, 2025
12		-	H420 -v-1
	9	+	Sponsors: Representative von Haefen.
	10	+	Referred to:
	11	+
	12	+	DRH30188 -MTa-22
13	13		A BILL TO BE ENTITLED 1
14	14		AN ACT TO PROVIDE FOR A SOUND BASIC EDUCATION FOR EVERY CHILD IN 2
15	15		NORTH CAROLINA. 3
16	16		The General Assembly of North Carolina enacts: 4
17	17		5
18	18		PART I. WELL-PREPARED, HIGH-QUALITY, AND SUPPORTED TEACHER IN 6
19	19		EVERY CLASSROOM 7
20	20		8
21	21		PEPSC POSITIONS 9
22	22		SECTION 1.1. There is appropriated from the General Fund to the Department of 10
23	23		Public Instruction the sum of two hundred thousand dollars ($200,000) in recurring funds for the 11
24	24		2025-2026 fiscal year to support two additional positions for the Professional Educator 12
25	25		Preparation and Standards Commission (Commission) to increase the capacity of the 13
26	26		Commission to coordinate efforts to recruit, prepare, retain, and support the State's teaching 14
27	27		workforce on behalf of the State Board of Education and the Department of Public Instruction. 15
28	28		16
29	29		EDUCATOR LICENSURE AND COMPENSATION REFORM PLAN 17
30	30		SECTION 1.2.(a) The State Board of Education shall develop a plan for 18
31	31		implementing a teacher licensure and compensation reform model designed to restore respect for 19
32	32		the teaching profession; to build a more diverse, quality teaching force; to increase instructional 20
33	33		capabilities of teachers; and to entice more young professionals, mid-career professionals, and 21
34	34		out-of-state individuals into the teaching profession. The plan shall include at least the following 22
35	35		components: 23
36	36		(1) Offer early, inclusive, and clear pathways into the profession. 24
37	37		(2) Reward excellence and advancement among teachers. 25
38	38		(3) Encourage retention in the profession. 26
39	39		The State Board of Education shall submit details on the plan and any recommended 27
40	40		legislative changes to implement the plan to the Joint Legislative Education Oversight 28
41	41		Committee, the Fiscal Research Division, and the Office of State Budget and Management by 29
42	42		March 15, 2026. 30
43	43		SECTION 1.2.(b) There is appropriated from the General Fund to the Department 31
44	44		of Public Instruction the sum of fifty thousand dollars ($50,000) in nonrecurring funds for the 32
45	45		2025-2026 fiscal year to develop the plan required by subsection (a) of this section. 33
46	46		34
47		-	EDUCATOR PREPARATION PROGRAM CAPACITY S TUDY 35 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 420-First Edition
	47	+	EDUCATOR PREPARATION PROGRAM CAPACITY STUDY 35
	48	+	H.B. 420
	49	+	Mar 17, 2025
	50	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	51	+	Page 2 DRH30188-MTa-22
49	52		SECTION 1.3.(a) The State Board of Education, in consultation with The University 1
50	53		of North Carolina System Office, shall conduct a study to identify the resources and structures 2
51	54		that educator preparation programs at the constituent institutions of The University of North 3
52	55		Carolina need to be able to do the following: 4
53	56		(1) Increase capacity in educator preparation programs to recruit, prepare, 5
54	57		support, and graduate at least 5,000 in-State trained teachers annually. 6
55	58		(2) Increase capacity in educator preparation programs to recruit, prepare, 7
56	59		support, and graduate more educators of color annually. 8
57	60		The State Board of Education shall report on the findings of this study to the Joint 9
58	61		Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of 10
59	62		State Budget and Management by March 15, 2026. 11
60	63		SECTION 1.3.(b) There is appropriated from the General Fund to the Department 12
61	64		of Public Instruction the sum of twenty-five thousand dollars ($25,000) in nonrecurring funds for 13
62	65		the 2025-2026 fiscal year to conduct the study required by subsection (a) of this section. 14
63	66		15
64	67		ALTERNATIVE PATHWAYS TEACHER RECRUITMENT MODELS 16
65	68		SECTION 1.4.(a) There is appropriated from the General Fund to the Department 17
66	69		of Public Instruction the sum of four million three hundred thousand dollars ($4,300,000) in 18
67	70		recurring funds for the 2025-2026 fiscal year to support research-based Grow-Your-Own and 19
68	71		2+2 teacher recruitment education programs in all regions of the State, including high 20
69	72		school-based career academy programs, the North Carolina Teacher Cadet Program, the 21
70	73		Teaching as a Profession program, and the TA to Teachers program. 22
71	74		SECTION 1.4.(b) There is appropriated from the General Fund to the Department 23
72	75		of Public Instruction the sum of one million dollars ($1,000,000) in recurring funds for the 24
73	76		2025-2026 fiscal year to establish new Grow-Your-Own and 2+2 teacher recruitment education 25
74	77		programs in high-need public school units. 26
75	78		27
76	79		STUDY ON CONSOLIDATING AND COORDINATING TEACHER RECRUITMENT 28
77	80		AND RETENTION EFFORTS 29
78	81		SECTION 1.5.(a) The State Board of Education shall develop a plan to implement 30
79	82		and fund a statewide system or entity to coordinate, enhance, and evaluate efforts to recruit, place, 31
80	83		and retain teacher candidates and beginning teachers between institutions of higher education 32
81	84		and local school administrative units. This study shall focus on, but not be limited to, how best 33
82	85		to consolidate and coordinate statewide teacher recruitment and retention efforts. The State Board 34
83	86		of Education shall submit details on the plan and any recommended legislative changes to 35
84	87		implement the plan to the Joint Legislative Education Oversight Committee, the Fiscal Research 36
85	88		Division, and the Office of State Budget and Management by March 15, 2026. 37
86	89		SECTION 1.5.(b) There is appropriated from the General Fund to the Department 38
87	90		of Public Instruction the sum of twenty-five thousand dollars ($25,000) in nonrecurring funds for 39
88	91		the 2025-2026 fiscal year to be used to support the development of the plan required by this 40
89	92		section. 41
90	93		42
91	94		EXPAND NC TEACHING FELLOWS PROGRAM 43
92	95		SECTION 1.6.(a) Part 3 of Article 23 of Chapter 116 of the General Statutes reads 44
93	96		as rewritten: 45
94	97		"Part 3. North Carolina Teaching Fellows Program. 46
95	98		"§ 116-209.60. Definitions. 47
96	99		The following definitions apply in this Part: 48
97	100		(1) Commission. – The North Carolina Teaching Fellows Commission. 49
98	101		(2) Director. – The Director of the North Carolina Teaching Fellows Program. 50
99	102		(3) Forgivable loan. – A forgivable loan made under the Program. 51 General Assembly Of North Carolina Session 2025
100		-	~~House Bill 420-First Edition~~ Page 3
	103	+	DRH30188-MTa-22 Page 3
101	104		(4) Program. – The North Carolina Teaching Fellows Program. 1
102	105		(5) Public school. – An elementary or secondary school located in North Carolina 2
103	106		that is governed by a local board of education, charter school board of 3
104	107		directors, regional school board of directors, or University of North Carolina 4
105	108		laboratory school board of trustees. 5
106	109		(5a) Qualifying licensure area. – A teacher licensure area in one of the following 6
107	110		subjects: 7
108	111		a. Either of the following, as identified pursuant to G.S. 116-209.62(h): 8
109	112		1. Special education. 9
110	113		2. STEM. 10
111	114		b. Elementary education (K-6). 11
112	115		(5b) Qualifying teacher. – A teacher in a North Carolina public school who meets 12
113	116		the following criteria: 13
114	117		a. Received a forgivable loan under the Program. 14
115	118		b. Graduated within 10 years from an educator preparation program 15
116	119		leading to teacher licensure, excluding any authorized deferment for 16
117	120		extenuating circumstances. 17
118	121		c. Serves as a teacher in a qualifying licensure area. 18
119	122		(6) STEM. – Science, technology, engineering, and mathematics. 19
120	123		(7) Trust Fund. – The North Carolina Teaching Fellows Program Trust Fund. 20
121	124		… 21
122	125		"§ 116-209.62. North Carolina Teaching Fellows Program established; administration. 22
123	126		(a) Program. – There is established the North Carolina Teaching Fellows Program to be 23
124	127		administered by the System Office of The University of North Carolina, in conjunction with the 24
125	128		Authority and the Commission. The purpose of the Program is to recruit, prepare, and support 25
126	129		students residing in or attending institutions of higher education located in North Carolina for 26
127	130		preparation as highly effective teachers in qualifying licensure areas in the State's public schools. 27
128	131		The Program shall be used to provide a forgivable loan to individuals interested in preparing to 28
129	132		teach in the public schools of the State in qualifying licensure areas.State. 29
130	133		(b) Trust Fund. – There is established the North Carolina Teaching Fellows Program 30
131	134		Trust Fund to be administered by the Authority, in conjunction with the System Office of The 31
132	135		University of North Carolina. All funds (i) appropriated to, or otherwise received by, the Program 32
133	136		for forgivable loans and other Program purposes, (ii) received as repayment of forgivable loans, 33
134	137		and (iii) earned as interest on these funds shall be placed in the Trust Fund. The purpose of the 34
135	138		Trust Fund is to provide financial assistance to qualified students for completion of teacher 35
136	139		education and licensure programs to fill qualifying licensure areas teach in the public schools of 36
137	140		the State. 37
138	141		… 38
139	142		(d) Director of the Program. – The Board of Governors of The University of North 39
140	143		Carolina shall appoint a Director of the Program. The Director shall appoint staff to the 40
141	144		Commission and shall be responsible for recruitment and coordination of the Program, including 41
142	145		proactive, aggressive, and strategic recruitment of potential recipients. Efforts shall include 42
143	146		identifying and encouraging students of color and students who may not otherwise consider a 43
144	147		career in teaching to enter the Program. Recruitment activities shall include a broad-based 44
145	148		strategy (i) targeting regions of the State with the highest teacher attrition rates and teacher 45
146	149		recruitment challenges, challenges and (ii) actively engaging with educators, business leaders, 46
147	150		experts in human resources, elected officials, and other community leaders throughout the State, 47
148	151		and (iii) attracting candidates in qualifying licensure areas to the Program. State to attract a 48
149	152		diverse pool of applicants. The Director shall report to the President of The University of North 49
150	153		Carolina. The Authority shall provide office space and clerical support staff, as necessary, to the 50
151	154		Director for the Program. 51 General Assembly Of North Carolina Session 2025
152		-	Page 4 ~~House Bill 420-First Edition~~
	155	+	Page 4 DRH30188-MTa-22
153	156		(e) Student Selection Criteria for Forgivable Loans. – The Commission shall adopt 1
154	157		stringent standards for awarding forgivable loans based on multiple measures to ensure that only 2
155	158		the strongest applicants receive them, including the following: 3
156	159		(1) Grade point averages. 4
157	160		(2) Performance on relevant career and college readiness assessments. 5
158	161		(3) Experience, accomplishments, and other criteria demonstrating qualities 6
159	162		positively correlated with highly effective teachers, including excellent verbal 7
160	163		and communication skills. 8
161	164		(4) Demonstrated commitment to serve in a qualifying licensure area in North 9
162	165		Carolina public schools. 10
163	166		(f) Program Selection Criteria. – The Authority shall administer the Program in 11
164	167		cooperation with up to 10 institutions of higher education with approved educator preparation 12
165	168		programs selected by the Commission that represent a diverse selection of both postsecondary 13
166	169		constituent institutions of The University of North Carolina and private postsecondary 14
167	170		institutions operating in the State. State, including minority-serving institutions. The 15
168	171		Commission shall adopt stringent standards for selection of the most effective educator 16
169	172		preparation programs, including the following: 17
170	173		(1) Demonstrates high rates of educator effectiveness on value-added models and 18
171	174		teacher evaluations, including using performance-based, subject-specific 19
172	175		assessment and support systems, such as edTPA or other metrics of evaluating 20
173	176		candidate effectiveness that have predictive validity. 21
174	177		(2) Demonstrates measurable impact of prior graduates on student learning, 22
175	178		including impact of graduates teaching in qualifying licensure areas.learning. 23
176	179		(3) Demonstrates high rates of graduates passing exams required for teacher 24
177	180		licensure. 25
178	181		(4) Provides curricular and co-curricular enhancements in leadership, facilitates 26
179	182		learning for diverse learners, and promotes community engagement, 27
180	183		classroom management, and reflection and assessment. 28
181	184		(5) Requires at least a minor concentration of study in the subject area that the 29
182	185		candidate may teach. 30
183	186		(6) Provides early and frequent internship or practical experiences, including the 31
184	187		opportunity for participants to perform practicums in diverse school 32
185	188		environments. 33
186	189		(7) Is approved by the State Board of Education as an educator preparation 34
187	190		program. 35
188	191		(8) For an educator preparation program enrolling loan recipients in a program of 36
189	192		study leading to licensure in elementary education (K-6), provides training 37
190	193		that is aligned with the Science of Reading in accordance with 38
191	194		G.S. 115C-269.20. The Commission shall contract with a third-party entity to 39
192	195		biennially evaluate whether a program identified in this subdivision is 40
193	196		providing training that is aligned with the Science of Reading. 41
194	197		(g) Awards of Forgivable Loans. – The Program shall provide forgivable loans to selected 42
195	198		students to be used at up to 10 selected institutions for completion of a program leading to initial 43
196	199		teacher licensure as follows: 44
197	200		(1) North Carolina high school seniors. – Forgivable loans of up to five thousand 45
198	201		dollars ($5,000) per semester for up to eight semesters. 46
199	202		(2) Students applying for transfer to a selected educator preparation program at 47
200	203		an institution of higher education. – Forgivable loans of up to five thousand 48
201	204		dollars ($5,000) per semester for up to six semesters. 49 General Assembly Of North Carolina Session 2025
202		-	~~House Bill 420-First Edition~~ Page 5
	205	+	DRH30188-MTa-22 Page 5
203	206		(3) Individuals currently holding a bachelor's degree seeking preparation for 1
204	207		teacher licensure. – Forgivable loans of up to five thousand dollars ($5,000) 2
205	208		per semester for up to four semesters. 3
206	209		(4) Students matriculating at institutions of higher education who are changing to 4
207	210		an approved program of study at a selected educator preparation program. – 5
208	211		Forgivable loans of up to five thousand dollars ($5,000) per semester for up 6
209	212		to four semesters. 7
210	213		Forgivable loans may be used for tuition, fees, the cost of books, and expenses related to 8
211	214		obtaining licensure. 9
212	215		(g1) Extracurricular Enhancement Activities. – The Program shall provide planning, 10
213	216		training, and ongoing support for Program leaders and recipients, including training on topics 11
214	217		such as culturally responsive teaching, teaching students with disabilities, and trauma-informed 12
215	218		teaching. 13
216	219		(h) Identification of STEM and Special Education Licensure Areas. – The Superintendent 14
217	220		of Public Instruction shall identify and provide to the Commission and the Authority a list of 15
218	221		STEM and special education licensure areas and shall annually provide to the Commission the 16
219	222		number of available positions in each qualifying licensure area relative to the number of current 17
220	223		and anticipated teachers in that area of licensure. The Commission shall make the list of STEM 18
221	224		and special education licensure areas readily available to applicants. 19
222	225		… 20
223	226		(j) Annual Report. – The Commission, in coordination with the Authority, the 21
224	227		Department of Public Instruction, and the selected educator education programs participating in 22
225	228		the Program shall report no later than January 1, 2019, and annually thereafter, to the Joint 23
226	229		Legislative Education Oversight Committee regarding the following: 24
227	230		(1) Forgivable loans awarded from the Trust Fund, including the following: 25
228	231		a. Demographic information regarding recipients. 26
229	232		b. Number of recipients by institution of higher education and program. 27
230	233		c. Information on number of recipients by anticipated qualifying 28
231	234		licensure area. 29
232	235		(2) Placement and repayment rates, including the following: 30
233	236		a. Number of graduates who have been employed in a qualifying 31
234	237		licensure area within two years of program completion. 32
235	238		b. Number of graduates who accepted employment at a low-performing 33
236	239		school identified under G.S. 115C-105.37 as part of their years of 34
237	240		service. 35
238	241		c. Number of graduates who have elected to do loan repayment and their 36
239	242		years of service, if any, prior to beginning loan repayment. 37
240	243		d. Number of graduates employed in a qualifying licensure area who 38
241	244		have received an overall rating of at least accomplished and have met 39
242	245		expected growth on applicable standards of the teacher evaluation 40
243	246		instrument. 41
244	247		e. Aggregate information on student growth and proficiency in courses 42
245	248		taught by graduates who have fulfilled service requirements through 43
246	249		employment in a qualifying licensure area.employment. 44
247	250		…." 45
248	251		SECTION 1.6.(b) There is appropriated from the General Fund to the North Carolina 46
249	252		Teaching Fellows Program Trust Fund the sum of twenty-nine million nine hundred thousand 47
250	253		dollars ($29,900,000) in recurring funds for the 2025-2026 fiscal year and the sum of thirty-seven 48
251	254		million dollars ($37,000,000) in recurring funds for the 2026-2027 fiscal year to revise and 49
252	255		expand the NC Teaching Fellows Program in accordance with subsection (a) of this section. 50 General Assembly Of North Carolina Session 2025
253		-	Page 6 ~~House Bill 420-First Edition~~
	256	+	Page 6 DRH30188-MTa-22
254	257		SECTION 1.6.(c) Subsection (a) of this section applies to applications for the award 1
255	258		of funds beginning in the 2025-2026 academic year. 2
256	259		3
257	260		RECRUITMENT BONUS PILOT PROGRAM FOR TEACHERS IN LOW -WEALTH, 4
258	261		LOW-PERFORMING, OR HIGH -NEED SCHOOLS 5
259	262		SECTION 1.7.(a) Purpose. – The State Board of Education shall establish a grant 6
260	263		program to assist local school administrative units in providing multiyear recruitment bonuses to 7
261	264		certified teachers who commit to teach multiple years in a low-performing or high-need school. 8
262	265		Bonuses awarded as part of this grant program shall include, but are not limited to, the following 9
263	266		components: 10
264	267		(1) Awards over multiple years with a requirement that teachers remain in the 11
265	268		school over multiple years to receive the bonus. 12
266	269		(2) Awards to licensed teachers who commit to teach in a school identified as 13
267	270		low-performing, as defined in G.S. 115C-105.37, a school identified as 14
268	271		continually low-performing, as defined in G.S. 115C-105.37A, or a school 15
269	272		where seventy-five percent (75%) or greater of students qualify for free or 16
270	273		reduced-price lunch under the National School Lunch Program. 17
271	274		SECTION 1.7.(b) Request for Proposal. – By September 1, 2025, and annually 18
272	275		thereafter, the State Board of Education shall issue a request for proposal (RFP) for the grant 19
273	276		program. Local boards of education shall submit their proposals by December 1, 2025. The RFP 20
274	277		shall require that proposals include the following information at a minimum: 21
275	278		(1) Description of the proposal, including details on targeted schools for the 22
276	279		bonuses and how the bonus program will be structured. 23
277	280		(2) Evidence-based research that supports the proposal. 24
278	281		(3) Implementation time line for the plan. 25
279	282		(4) Plans for financial sustainability once grant money is no longer available. 26
280	283		SECTION 1.7.(c) Grant Awards. – By February 15, 2026, the State Board of 27
281	284		Education shall review the proposals submitted by local boards of education and select up to 10 28
282	285		local school administrative units for grant awards. The State Board of Education may make grant 29
283	286		awards for up to three years. A local school administrative unit may not receive more than five 30
284	287		hundred thousand dollars ($500,000) in a single fiscal year from the grant program. 31
285	288		SECTION 1.7.(d) Evaluation and Reporting. – Of the funds appropriated by this 32
286	289		section, the State Board of Education may use up to three hundred thousand dollars ($300,000) 33
287	290		to contract with an independent research organization to evaluate the impact of this grant 34
288	291		program. The independent research organization shall report the results of this evaluation to the 35
289	292		Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office 36
290	293		of State Budget and Management by September 1, 2028. The Department of Public Instruction 37
291	294		shall report annually on the implementation of this grant program beginning March 15, 2026. 38
292	295		SECTION 1.7.(e) Appropriation. – There is appropriated from the General Fund to 39
293	296		the Department of Public Instruction the sum of twelve million dollars ($12,000,000) in recurring 40
294	297		funds for the 2025-2026 fiscal year to implement the grant program in accordance with this 41
295	298		section. 42
296	299		SECTION 1.7.(f) Carryforward. – Any unexpended funds appropriated under this 43
297	300		section at the end of the 2025-2026 fiscal year shall not revert to the General Fund but shall 44
298	301		remain available for the purposes set forth in this section. 45
299	302		46
300	303		TEACHER PREPARATION RESIDENCY PILOT GRANT PROGRAM 47
301	304		SECTION 1.8.(a) Purpose. – The State Board of Education shall establish a grant 48
302	305		program to assist local school administrative units in the development of teacher preparation 49
303	306		residency pilot programs. Teacher preparation residency programs provide the necessary 50
304	307		preparation and induction supports to teacher preparation candidates pursuing a continuing 51 General Assembly Of North Carolina Session 2025
305		-	~~House Bill 420-First Edition~~ Page 7
	308	+	DRH30188-MTa-22 Page 7
306	309		professional license. Teacher preparation residency programs eligible to receive grant funding 1
307	310		through this program shall include, at a minimum, the following components: 2
308	311		(1) Coursework in the candidate's area of licensure. 3
309	312		(2) Tuition and stipends. 4
310	313		(3) Faculty advising. 5
311	314		(4) Clinical training experiences. 6
312	315		(5) Ongoing induction support. 7
313	316		Residency programs eligible for this grant program may include partnerships between 8
314	317		local school administrative units, educator preparation programs, local community colleges or 9
315	318		universities, and other community organizations. Grant funds awarded to local school 10
316	319		administrative units under this program shall be matched by the local school administrative units 11
317	320		on the basis of one dollar ($1.00) in non-grant funds for every one dollar ($1.00) in grant funds. 12
318	321		SECTION 1.8.(b) Request for Proposal. – By October 1, 2025, the State Board of 13
319	322		Education shall issue a request for proposal (RFP) for the grant program. Local boards of 14
320	323		education shall submit their proposals by January 15, 2026. The RFP shall require that proposals 15
321	324		include the following information at a minimum: 16
322	325		(1) Description of the proposal, including the number of teacher preparation 17
323	326		candidates to be served. 18
324	327		(2) Evidence-based research that supports the proposal. 19
325	328		(3) Implementation time line for the plan. 20
326	329		(4) Plans for financial sustainability once grant money is no longer available. 21
327	330		SECTION 1.8.(c) Grant Awards. – By April 15, 2026, the State Board of Education 22
328	331		shall review the proposals submitted by local boards of education and shall select up to 10 local 23
329	332		school administrative units for grant awards. The State Board of Education may make grant 24
330	333		awards for up to three years. A local school administrative unit may not receive more than five 25
331	334		hundred thousand dollars ($500,000) in a single fiscal year from this grant program. 26
332	335		SECTION 1.8.(d) Evaluation and Reporting. – Of the funds appropriated by this 27
333	336		section, the State Board of Education may use up to three hundred thousand dollars ($300,000) 28
334	337		to contract with an independent research organization to evaluate the impact of this grant 29
335	338		program. The independent research organization shall report the results of this evaluation to the 30
336	339		Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office 31
337	340		of State Budget and Management by September 1, 2029. The Department of Public Instruction 32
338	341		shall report annually on the implementation of this grant program beginning March 15, 2026. 33
339	342		SECTION 1.8.(e) Appropriation. – There is appropriated from the General Fund to 34
340	343		the Department of Public Instruction the sum of twenty million dollars ($20,000,000) in recurring 35
341	344		funds for the 2025-2026 fiscal year and the sum of twenty-five million dollars ($25,000,000) in 36
342	345		recurring funds for the 2026-2027 fiscal year to implement the grant program in accordance with 37
343	346		this section. 38
344	347		SECTION 1.8.(f) Carryforward. – Any unexpended funds appropriated under this 39
345	348		section at the end of each year of the 2025-2027 fiscal biennium shall not revert to the General 40
346	349		Fund but shall remain available for the purposes set forth in this section. 41
347	350		42
348	351		EXPAND PARTNERSHIP TEACH 43
349	352		SECTION 1.9. There is appropriated from the General Fund to the Board of 44
350	353		Governors of The University of North Carolina the sum of two hundred thousand dollars 45
351	354		($200,000) in recurring funds for the 2025-2026 fiscal year to expand Partnership Teach to up to 46
352	355		two additional hub sites, including providing funds for staffing, fellowship support, mentoring, 47
353	356		and increasing recruitment capacity. 48
354	357		49
355	358		DEVELOPING A REPRESENTATIVE AND INCLUSIVE VISION FOR EDUCATION 50
356	359		(DRIVE) GRANT PROGRAM 51 General Assembly Of North Carolina Session 2025
357		-	Page 8 ~~House Bill 420-First Edition~~
	360	+	Page 8 DRH30188-MTa-22
358	361		SECTION 1.10.(a) Purpose. – The State Board of Education, in consultation with 1
359	362		the Office of the Governor, The University of North Carolina System Office, and the Community 2
360	363		College System Office, shall establish a grant program to support strategic partnerships 3
361	364		committed to increasing the pipeline of educators of color across the State. As an extension of 4
362	365		the recommendations and strategies presented by the Governor's DRIVE Task Force on January 5
363	366		1, 2021, the grants shall be provided to local school administrative units, institutions of higher 6
364	367		education, and community organizations to implement innovative initiatives that support the 7
365	368		recruitment, preparation, support, and retention of racially, ethnically, and linguistically diverse 8
366	369		educators. The purpose of this program shall be to do at least the following: 9
367	370		(1) Increase the diversity of the educator workforce across the State through novel 10
368	371		recruitment efforts. 11
369	372		(2) Strengthen the pipeline of aspiring teachers of color across the State through 12
370	373		traditional and alternative certification pathways. 13
371	374		(3) Provide mechanisms to support and retain educators of color currently serving 14
372	375		in elementary and secondary public schools. 15
373	376		(4) Promote collaboration between school systems, institutions of higher 16
374	377		education, and community and nonprofit organizations to diversify the 17
375	378		educator workforce. 18
376	379		SECTION 1.10.(b) Applications. – Applicants for grants shall demonstrate at least 19
377	380		the following for grant award consideration: 20
378	381		(1) A partnership between at least two of the following entities: local school 21
379	382		administrative units, Historically Black Colleges and Universities, 22
380	383		Historically Minority-Serving Institutions, educator preparation programs, 23
381	384		alternative certification programs, public and private colleges and universities, 24
382	385		community colleges, and community or nonprofit organizations. 25
383	386		(2) Proposals for strategies that address one or more of the following components 26
384	387		of the educator development continuum as highlighted by the DRIVE Task 27
385	388		Force's 2021 Report to the Governor: recruitment, placement and induction, 28
386	389		and support and retention of educators of color. 29
387	390		SECTION 1.10.(c) Use of Funds. – Grant funds may be used for the following 30
388	391		activities: 31
389	392		(1) Strengthening existing high school dual enrollment programs to offer 32
390	393		education-based college credit or honors courses as streamlined pathways for 33
391	394		future careers in education. 34
392	395		(2) Implementing targeted school system–level and community-based 35
393	396		recruitment programs for aspiring educators of color interested in traditional 36
394	397		and alternative educator preparation programs. 37
395	398		(3) Utilizing and leveraging existing financial aid programs that include 38
396	399		scholarships, loan forgiveness, and tuition reimbursement that reduce the 39
397	400		disproportionate financial burden incurred by aspiring candidates of color. 40
398	401		(4) Increasing preparation and supporting preservice educators of color through 41
399	402		paid clinical learning experiences, with a commitment to teaching in North 42
400	403		Carolina public schools. 43
401	404		(5) Offering support for job placement and licensure for candidates of color after 44
402	405		completing their educator preparation program. 45
403	406		(6) Providing induction and mentoring programs that address the needs of 46
404	407		educators of color and that include sustaining networking and professional 47
405	408		learning communities or affinity groups. 48
406	409		(7) Encouraging and financially supporting educators of color interested in 49
407	410		joining national professional organizations or attending national conferences. 50 General Assembly Of North Carolina Session 2025
408		-	~~House Bill 420-First Edition~~ Page 9
	411	+	DRH30188-MTa-22 Page 9
409	412		SECTION 1.10.(d) Request for Proposal. – By October 1, 2025, the State Board of 1
410	413		Education shall issue a request for proposal (RFP) for the grant program. Applicants shall submit 2
411	414		their proposals by December 1, 2025. The RFP shall require that proposals include the following 3
412	415		information at a minimum: 4
413	416		(1) Description of the proposal. 5
414	417		(2) Evidence-based research that supports the proposal. 6
415	418		(3) An implementation time line for the plan. 7
416	419		(4) Plans for financial sustainability once grant money is no longer available. 8
417	420		SECTION 1.10.(e) Selection. – By February 1, 2026, a selection committee shall 9
418	421		select up to five grantees, making the effort to ensure that there is representation across the State 10
419	422		as reflected by rural and urban districts, institutions of higher education, and community-based 11
420	423		partners. Any grants awarded may be spent over a five-year period from the initial award. Grants 12
421	424		may be awarded for new or existing projects. 13
422	425		SECTION 1.10.(f) Reporting Requirements. – No later than September 1 of each 14
423	426		year, grant recipients shall submit to the State Board of Education an annual report for the 15
424	427		preceding grant year that describes the implementation of the program. This report must include 16
425	428		qualitative and quantitative data to demonstrate program effectiveness. 17
426	429		SECTION 1.10.(g) Evaluation and Reporting. – Of the funds appropriated by this 18
427	430		section, the State Board of Education may use up to three hundred thousand dollars ($300,000) 19
428	431		to contract with an independent research organization to evaluate the impact of this grant 20
429	432		program. The independent research organization shall report the results of this evaluation to the 21
430	433		Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office 22
431	434		of State Budget and Management by September 1, 2027. The State Board of Education shall 23
432	435		report annually on the implementation of this grant program beginning on January 1, 2027. 24
433	436		SECTION 1.10.(h) Appropriation. – There is appropriated from the General Fund 25
434	437		to the Department of Public Instruction the sum of two million dollars ($2,000,000) in recurring 26
435	438		funds for the 2025-2026 fiscal year to implement the grant program in accordance with this 27
436	439		section. 28
437	440		SECTION 1.10.(i) Carryforward. – Any unexpended funds at the end of each fiscal 29
438	441		year from the funds appropriated for the grant program under this section shall not revert to the 30
439	442		General Fund but shall remain available for expenditure for the purposes set forth in this section. 31
440	443		32
441	444		ANNUAL EDUCATOR DIVERSITY REPORT 33
442	445		SECTION 1.11.(a) G.S. 115C-12(22) reads as rewritten: 34
443	446		"(22) Duty to Monitor the State of the Teaching and School Administration 35
444	447		Professions and Educator Diversity in North Carolina. – The State Board of 36
445	448		Education shall monitor and compile an annual report reports on the 37
446	449		following: 38
447	450		a. The state of the teaching and school administration professions in 39
448	451		North Carolina, as provided in G.S. 115C-289.2 and G.S. 115C-299.5. 40
449	452		b. Educator diversity in North Carolina, as provided in 41
450	453		G.S. 115C-299.7." 42
451	454		SECTION 1.11.(b) Article 20 of Chapter 115C of the General Statutes is amended 43
452	455		by adding a new section to read: 44
453	456		"§ 115C-299.7. Duty to monitor educator diversity. 45
454	457		(a) Definitions. – As used in this section, the following definitions apply: 46
455	458		(1) Diversity categories. – Race and ethnicity. 47
456	459		(2) Education entity. – Any of the following: 48
457	460		a. A public school unit, as defined in G.S. 115C-5(7a). 49
458	461		b. An educator preparation program, as defined in G.S. 115C-269.1(10). 50
459	462		(3) Educators. – Teachers employed by a public school unit. 51 General Assembly Of North Carolina Session 2025
460		-	Page 10 ~~House Bill 420-First Edition~~
	463	+	Page 10 DRH30188-MTa-22
461	464		(4) Future educators. – Students enrolled in an educator preparation program. 1
462	465		(5) Grade level. – Where applicable, the grade level taught by an educator and the 2
463	466		grade level attended by a future educator. 3
464	467		(6) Mobility rates. – The percentage of educators who move from one school or 4
465	468		public school unit to another. 5
466	469		(7) Qualitative data. – Information collected via questionnaire, interview, and 6
467	470		other nonquantitative methods. 7
468	471		(b) Education Entity Diversity Report. – No later than July 30, 2025, and annually 8
469	472		thereafter, each education entity shall report to the Department of Public Instruction the following 9
470	473		information regarding the diversity of educators and future educators in the entity from the 10
471	474		previous school year, disaggregated by diversity category and, where applicable, by grade level: 11
472	475		(1) Total number of educators and future educators. 12
473	476		(2) The number of persons who apply to work in or attend the education entity as 13
474	477		an educator or future educator. 14
475	478		(3) The number of educators and future educators who are employed by or 15
476	479		enrolled in an education entity. 16
477	480		(4) Retention rates of educators. 17
478	481		(5) Mobility rates of educators between schools in a public school unit. 18
479	482		(6) The number of future educators who do the following: 19
480	483		a. Complete an educator preparation program. 20
481	484		b. Become licensed in North Carolina. 21
482	485		c. Become employed in a public school unit. 22
483	486		(7) Qualitative data from educators and future educators on the diversity and 23
484	487		inclusiveness of the education entity, including applicable information on 24
485	488		recruitment, educator preparation, retention, mobility, and turnover. This 25
486	489		information should include related reasons for educator attrition provided on 26
487	490		educator workforce reports. 27
488	491		(8) Recommendations from the entity to improve diversity of educators and future 28
489	492		educators, including strategies to recruit and retain a diverse pool of educators 29
490	493		and future educators. 30
491	494		(c) Statewide Diversity Report. – No later than October 15, 2025, and annually thereafter, 31
492	495		the Department of Public Instruction shall collect the information provided pursuant to 32
493	496		subsection (b) of this section and report that information, organized to include at least the 33
494	497		following, to the Joint Legislative Education Oversight Committee, disaggregated by diversity 34
495	498		category and, where applicable, by grade level: 35
496	499		(1) Statewide data for each education entity, including mobility rates of educators 36
497	500		between public school units. 37
498	501		(2) Recommendations from the Department to improve diversity among 38
499	502		educators and future educators in education entities, including strategies to 39
500	503		recruit and retain a diverse pool of educators and future educators. 40
501	504		(d) Statistical Profile. – The Department of Public Instruction shall include the 41
502	505		information regarding public school units collected pursuant to this section in the statistical 42
503	506		profile of public schools maintained on its website. 43
504	507		(e) Certain Information Excluded. – Nothing in this section shall be construed to require 44
505	508		an education entity or the Department of Public Instruction to report any data that reveals 45
506	509		confidential or personally identifiable information about an educator or future educator." 46
507	510		47
508	511		ESTABLISH THE OFFICE OF EQUITY AFFAIRS WITHIN THE DEPARTMENT OF 48
509	512		PUBLIC INSTRUCTION 49
510	513		SECTION 1.12.(a) Chapter 115C of the General Statutes is amended by adding a 50
511	514		new Article to read: 51 General Assembly Of North Carolina Session 2025
512		-	~~House Bill 420-First Edition~~ Page 11
	515	+	DRH30188-MTa-22 Page 11
513	516		"Article 6E. 1
514	517		"Office of Equity Affairs. 2
515	518		"§ 115C-64.35. Establishment, purpose, and duties of Office of Equity Affairs. 3
516	519		(a) There is established within the Department of Public Instruction the Office of Equity 4
517	520		Affairs. The purpose of the Office of Equity Affairs is to provide internal oversight within the 5
518	521		Department of Public Instruction and the State Board of Education specific to compliance with 6
519	522		the State's constitutional role to provide each child the opportunity to receive a sound basic 7
520	523		education and to direct the recruitment and retention of a diverse educator workforce. 8
521	524		(b) The Office of Equity Affairs shall review educational policies, programs, and 9
522	525		initiatives and shall provide an independent, objective source of information to be used in 10
523	526		evaluating substantial compliance with sound basic education standards and the goal of recruiting 11
524	527		and retaining a diverse educator workforce, giving special attention and consideration to 12
525	528		outcomes for at-risk students. The Office of Equity Affairs may suggest adjustments to the 13
526	529		content and delivery of educational policies, programs, and initiatives to improve their efficacy. 14
527	530		The authority of the Office of Equity Affairs to evaluate and advise shall extend to all policies, 15
528	531		programs, and initiatives related to ensuring that all students have access to a sound basic 16
529	532		education and to the goal of recruiting and retaining a diverse educator workforce. 17
530	533		(c) In carrying out its duties, the Office of Equity Affairs has authority to obtain full and 18
531	534		unrestricted access to all records, information, and data in the possession of or legally available 19
532	535		to the Department of Public Instruction or the State Board of Education. 20
533	536		(d) Beginning no later than January 15 immediately following the effective date of this 21
534	537		section, and semiannually thereafter, the Office of Equity Affairs shall submit a report to the 22
535	538		Joint Legislative Education Oversight Committee on the (i) implementation of its duties as set 23
536	539		forth in this Article, (ii) progress of the Department of Public Instruction and the State Board of 24
537	540		Education in effectively providing each child the opportunity to receive a sound basic education, 25
538	541		and (iii) diversity of the educator workforce. Prior to the reporting of any deficiencies in progress, 26
539	542		the Office of Equity Affairs shall give to the Department of Public Instruction and the State Board 27
540	543		of Education ample notice of the deficiencies and an opportunity to correct or improve the 28
541	544		deficiencies and shall include in the report any efforts to do so. The report shall include any 29
542	545		recommended legislation. 30
543	546		"§ 115C-64.36. Administrative organization; organizational independence. 31
544	547		(a) There is established within the Department of Public Instruction the position of 32
545	548		Deputy Superintendent of Equity Affairs who shall serve as the chief officer of the Office of 33
546	549		Equity Affairs. The Deputy Superintendent shall have professional, administrative, technical, and 34
547	550		clerical personnel as may be necessary in carrying out the duties of the position. 35
548	551		(b) The Superintendent of Public Instruction shall recommend to the State Board of 36
549	552		Education the individual to be appointed as Deputy Superintendent of Equity Affairs, and the 37
550	553		recommended appointee shall be appointed upon approval by the State Board of Education. The 38
551	554		Deputy Superintendent shall report to the Superintendent of Public Instruction and the State 39
552	555		Board of Education jointly and may be removed only upon the joint agreement of the 40
553	556		Superintendent of Public Instruction and a majority of the members of the State Board of 41
554	557		Education. The Deputy Superintendent shall be organizationally situated to avoid impairments 42
555	558		to independence of the Deputy Superintendent's professional judgment on how to best 43
556	559		accomplish the purposes of the Office of Equity Affairs." 44
557	560		SECTION 1.12.(b) There is appropriated from the General Fund to the Department 45
558	561		of Public Instruction for the 2025-2026 fiscal year the sum of four hundred thousand dollars 46
559	562		($400,000) in recurring funds to permit the Deputy Superintendent of Equity Affairs, as 47
560	563		established by this section, to appoint up to four full-time staff to assist in the administration of 48
561	564		the Deputy Superintendent's duties under Article 6E of Chapter 115C of the General Statutes, as 49
562	565		enacted by this section. Personnel appointed to these positions shall report solely to the Deputy 50
563	566		Superintendent of Equity Affairs. The appointments shall not be subject to approval or 51 General Assembly Of North Carolina Session 2025
564		-	Page 12 ~~House Bill 420-First Edition~~
	567	+	Page 12 DRH30188-MTa-22
565	568		disapproval by the Superintendent of Public Instruction or the State Board of Education. Of the 1
566	569		four time-limited positions, one shall be an administrative assistant position and at least one shall 2
567	570		be an attorney position. 3
568	571		4
569	572		NORTH CAROLINA NEW TEACHER SUPPORT PROGRAM 5
570	573		SECTION 1.13. There is appropriated from the General Fund to the Board of 6
571	574		Governors of The University of North Carolina the sum of thirty-seven million three hundred 7
572	575		thousand dollars ($37,300,000) in recurring funds for the 2025-2026 fiscal year and forty-eight 8
573	576		million five hundred thousand dollars ($48,500,000) in recurring funds for the 2026-2027 fiscal 9
574	577		year for the New Teacher Support Program to provide mentoring and coaching support to 10
575	578		beginning teachers who are employed in public schools identified as low-performing or 11
576	579		high-poverty at no cost to the local school administrative units. 12
577	580		13
578	581		ADVANCED TEACHING ROLES CHANGES 14
579	582		SECTION 1.14.(a) G.S. 115C-310.7(a) reads as rewritten: 15
580	583		"(a) Class Size Flexibility. – Notwithstanding G.S. 115C-301, with the approval of the 16
581	584		State Board of Education, ATR schools may exceed the maximum class size requirements for 17
582	585		kindergarten through third grade during any term of up to three years in which State funds are 18
583	586		awarded to the ATR unit where the school is located. At the conclusion of the term, any class 19
584	587		size flexibility approved for an ATR school pursuant to this subsection shall expire.grade." 20
585	588		SECTION 1.14.(b) This section is effective July 1, 2025, and applies beginning with 21
586	589		the 2025-2026 school year. 22
587	590		23
588	591		EDUCATOR PROFESSIONAL DEVELOPMENT ALLOTMENT 24
589	592		SECTION 1.15.(a) Effective July 1, 2025, there is established the Educator 25
590	593		Professional Development Allotment in the State Public School Fund. The State Board of 26
591	594		Education shall establish the purposes for which the funds within the new Educator Professional 27
592	595		Development funding allotment may be used, including at least the following: 28
593	596		(1) Educator professional development for targeted public school units and 29
594	597		schools requiring multitiered support for prekindergarten through grade three, 30
595	598		including the following: 31
596	599		a. Child development. 32
597	600		b. Early literacy. 33
598	601		c. Social and emotional learning. 34
599	602		d. Family engagement. 35
600	603		(2) Implementation of literacy training. 36
601	604		(3) Mentoring programs for beginning educators. 37
602	605		SECTION 1.15.(b) There is appropriated from the General Fund to the Department 38
603	606		of Public Instruction the sum of one hundred one million one hundred fifty thousand dollars 39
604	607		($101,150,000) in recurring funds for the 2025-2026 fiscal year and one hundred twenty-eight 40
605	608		million four hundred fifty thousand dollars ($128,450,000) in recurring funds for the 2026-2027 41
606	609		fiscal year to be used to fund the Educator Professional Development Allotment. Funds shall be 42
607	610		allotted to local school administrative units based on average daily membership. 43
608	611		44
609	612		REPORT FINDINGS OF COMPENSATION STUDY 45
610	613		SECTION 1.16. The Department of Public Instruction shall report to the Joint 46
611	614		Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of 47
612	615		State Budget and Management (OSBM) by March 1, 2026, on the findings of the compensation 48
613	616		study it conducted on alternative teacher compensation models and advanced teaching roles using 49
614	617		funds awarded by OSBM from the North Carolina Evaluation Fund. 50
615	618		51 General Assembly Of North Carolina Session 2025
616		-	~~House Bill 420-First Edition~~ Page 13
	619	+	DRH30188-MTa-22 Page 13
617	620		TEACHER SALARY SCHEDULE 1
618	621		SECTION 1.17.(a) The following monthly teacher salary schedule shall apply for 2
619	622		the 2025-2026 fiscal year to licensed personnel of the public schools who are classified as 3
620	623		teachers. The salary schedule is based on years of teaching experience. 4
621	624		2025-2026 Teacher Monthly Salary Schedule 5
622	625		Years of Experience "A" Teachers 6
623	626		0 $4,600 7
624	627		1 $4,685 8
625	628		2 $4,770 9
626	629		3 $4,855 10
627	630		4 $4,940 11
628	631		5 $5,025 12
629	632		6 $5,110 13
630	633		7 $5,195 14
631	634		8 $5,280 15
632	635		9 $5,365 16
633	636		10 $5,450 17
634	637		11 $5,535 18
635	638		12 $5,620 19
636	639		13 $5,705 20
637	640		14 $5,790 21
638	641		15 $5,875 22
639	642		16 $5,950 23
640	643		17-19 $6,070 24
641	644		20-22 $6,135 25
642	645		23-25 $6,200 26
643	646		26-28 $6,295 27
644	647		29+ $6,370 28
645	648		SECTION 1.17.(b) Salary Supplements for Teachers Paid on This Salary Schedule. 29
646	649		– 30
647	650		(1) Licensed teachers who have NBPTS certification shall receive a salary 31
648	651		supplement each month of twelve percent (12%) of their monthly salary on 32
649	652		the "A" salary schedule. 33
650	653		(2) Licensed teachers who are classified as "M" teachers shall receive a salary 34
651	654		supplement each month of ten percent (10%) of their monthly salary on the 35
652	655		"A" salary schedule. 36
653	656		(3) Licensed teachers with licensure based on academic preparation at the 37
654	657		six-year degree level shall receive a salary supplement of one hundred 38
655	658		twenty-six dollars ($126.00) per month in addition to the supplement provided 39
656	659		to them as "M" teachers. 40
657	660		(4) Licensed teachers with licensure based on academic preparation at the 41
658	661		doctoral degree level shall receive a salary supplement of two hundred 42
659	662		fifty-three dollars ($253.00) per month in addition to the supplement provided 43
660	663		to them as "M" teachers. 44
661	664		(5) Certified school nurses shall receive a salary supplement each month of ten 45
662	665		percent (10%) of their monthly salary on the "A" salary schedule. 46
663	666		(6) School counselors who are licensed as counselors at the master's degree level 47
664	667		or higher shall receive a salary supplement of one hundred dollars ($100.00) 48
665	668		per month. 49 General Assembly Of North Carolina Session 2025
666		-	Page 14 ~~House Bill 420-First Edition~~
	669	+	Page 14 DRH30188-MTa-22
667	670		SECTION 1.17.(c) For school psychologists, school speech pathologists who are 1
668	671		licensed as speech pathologists at the master's degree level or higher, and school audiologists 2
669	672		who are licensed as audiologists at the master's degree level or higher, the following shall apply: 3
670	673		(1) The first step of the salary schedule shall be equivalent to the sixth step of the 4
671	674		"A" salary schedule. 5
672	675		(2) These employees shall receive the following salary supplements each month: 6
673	676		a. Ten percent (10%) of their monthly salary, excluding the supplement 7
674	677		provided pursuant to sub-subdivision b. of this subdivision. 8
675	678		b. Five hundred dollars ($500.00). 9
676	679		(3) These employees are eligible to receive salary supplements equivalent to those 10
677	680		of teachers for academic preparation at the six-year degree level or the 11
678	681		doctoral degree level. 12
679	682		(4) The twenty-sixth step of the salary schedule shall be seven and one-half 13
680	683		percent (7.5%) higher than the salary received by these same employees on 14
681	684		the twenty-fifth step of the salary schedule. 15
682	685		SECTION 1.17.(d) Beginning with the 2014-2015 fiscal year, in lieu of providing 16
683	686		annual longevity payments to teachers paid on the teacher salary schedule, the amounts of those 17
684	687		longevity payments are included in the monthly amounts under the teacher salary schedule. 18
685	688		SECTION 1.17.(e) A teacher compensated in accordance with this salary schedule 19
686	689		for the 2025-2026 school year shall receive an amount equal to the greater of the following: 20
687	690		(1) The applicable amount on the salary schedule for the applicable school year. 21
688	691		(2) For teachers who were eligible for longevity for the 2013-2014 school year, 22
689	692		the sum of the following: 23
690	693		a. The salary the teacher received in the 2013-2014 school year pursuant 24
691	694		to Section 35.11 of S.L. 2013-360. 25
692	695		b. The longevity that the teacher would have received under the longevity 26
693	696		system in effect for the 2013-2014 school year provided in Section 27
694	697		35.11 of S.L. 2013-360 based on the teacher's current years of service. 28
695	698		c. The annual bonus provided in Section 9.1(e) of S.L. 2014-100. 29
696	699		(3) For teachers who were not eligible for longevity for the 2013-2014 school 30
697	700		year, the sum of the salary and annual bonus the teacher received in the 31
698	701		2014-2015 school year pursuant to Section 9.1 of S.L. 2014-100. 32
699	702		SECTION 1.17.(f) As used in this section, the term "teacher" shall also include 33
700	703		instructional support personnel. 34
701	704		SECTION 1.17.(g) There is appropriated from the General Fund to the Department 35
702	705		of Public Instruction for the 2025-2026 fiscal year the sum of eight hundred seventy-two million 36
703	706		six hundred forty-two thousand three hundred thirty-six dollars ($872,642,336) in recurring funds 37
704	707		to implement the teacher raises provided in this section. 38
705	708		SECTION 1.17.(h) It is the intent of the General Assembly to adjust compensation 39
706	709		for teachers in the 2026-2027 fiscal year and subsequent fiscal years in accordance with 40
707	710		information provided by the Department of Public Instruction in March of 2026 pursuant to the 41
708	711		compensation study referenced in Section 1.16 of this act. 42
709	712		43
710	713		FUNDS FOR NATIONAL BOARD CERTIFICATION APPLICATION FEE 44
711	714		SECTION 1.18. There is appropriated from the General Fund to the Department of 45
712	715		Public Instruction the sum of nine hundred thousand dollars ($900,000) in recurring funds for the 46
713	716		2025-2026 fiscal year to provide additional grants for reimbursement of the cost of the 47
714	717		participation fee for National Board for Professional Teaching Standards (NBPTS) certification 48
715	718		pursuant to G.S. 115C-296.2A. 49
716	719		50 General Assembly Of North Carolina Session 2025
717		-	~~House Bill 420-First Edition~~ Page 15
	720	+	DRH30188-MTa-22 Page 15
718	721		PART II. WELL-PREPARED, HIGH-QUALITY, AND SUPPORTED PRINCIPAL IN 1
719	722		EVERY SCHOOL 2
720	723		3
721	724		EXPANSION OF THE NORTH CAROLINA PRINCIPAL FELLOWS PROGRAM 4
722	725		SECTION 2.1. There is appropriated from the General Fund to the North Carolina 5
723	726		Principal Fellows Trust Fund the sum of thirteen million two hundred thousand dollars 6
724	727		($13,200,000) in recurring funds for the 2025-2026 fiscal year to be used to provide forgivable 7
725	728		loans to an additional 189 new principal candidates each year through principal preparation 8
726	729		programs provided grants under the North Carolina Principal Fellows Program (Program) 9
727	730		established pursuant to Article 5C of Chapter 116 of the General Statutes. Any unexpended funds 10
728	731		in the Trust Fund each fiscal year shall not revert to the General Fund but shall remain available 11
729	732		for the purposes of the Program consistent with G.S. 116-74.41B. 12
730	733		13
731	734		STATEWIDE SCHOOL LEADERSHIP ACADEMY 14
732	735		SECTION 2.2.(a) The State Board of Education shall develop a plan for the creation 15
733	736		of a School Leadership Academy to provide initial and ongoing support to the State's local school 16
734	737		administrative units and school leaders. The plan for the School Leadership Academy shall 17
735	738		include at least the following components: 18
736	739		(1) Equity training for all local school administrative units and school leaders. 19
737	740		(2) Training and ongoing support for local board of education members focused 20
738	741		on the needs of successful schools and turnaround schools. 21
739	742		(3) Mentorship and individualized coaching for novice principals and for 22
740	743		experienced principals in high-need schools focused on dismantling 23
741	744		impediments to student success in their schools. 24
742	745		(4) Peer support networks, such as facilitated partnership networks and rapid 25
743	746		response hotlines that provide immediate assistance. 26
744	747		(5) Aligned, ongoing, research-driven professional learning. 27
745	748		The State Board shall take into consideration any existing school administrator 28
746	749		leadership training opportunities when creating this plan. 29
747	750		SECTION 2.2.(b) By February 15, 2026, the State Board shall report to the Joint 30
748	751		Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of 31
749	752		State Budget and Management on its proposal for the School Leadership Academy, including the 32
750	753		plan for implementation and an estimation of costs. 33
751	754		SECTION 2.2.(c) Beginning with the 2026-2027 school year, the Department of 34
752	755		Public Instruction shall operate and support the School Leadership Academy according to the 35
753	756		plan developed by the State Board of Education pursuant to subsection (a) of this section. 36
754	757		37
755	758		PRINCIPAL SALARY SCHEDULE 38
756	759		SECTION 2.3.(a) The following annual salary schedule for principals shall apply 39
757	760		for the 2025-2026 fiscal year beginning July 1, 2025: 40
758	761		2025-2026 Principal Annual Salary Schedule 41
759	762		Avg. Daily Membership Base Met Growth Exceeded Growth 42
760	763		0-200 $84,676 $93,143 $101,612 43
761	764		201-400 $88,910 $97,801 $106,691 44
762	765		401-700 $93,143 $102,457 $111,773 45
763	766		701-1,000 $97,377 $107,115 $116,853 46
764	767		1,001-1,600 $101,612 $111,773 $121,933 47
765	768		1,601+ $105,845 $116,429 $127,013 48
766	769		A principal's placement on the salary schedule shall be determined according to the 49
767	770		average daily membership of the school supervised by the principal, as described in subsection 50
768	771		(b) of this section, and the school growth scores, calculated pursuant to G.S. 115C-83.15(c), for 51 General Assembly Of North Carolina Session 2025
769		-	Page 16 ~~House Bill 420-First Edition~~
	772	+	Page 16 DRH30188-MTa-22
770	773		each school the principal supervised in one or more prior school years, as described in subsection 1
771	774		(c) of this section, regardless of a break in service, and provided the principal supervised each 2
772	775		school as a principal for at least a majority of the school year, as follows: 3
773	776		(1) A principal shall be paid according to the Exceeded Growth column of the 4
774	777		schedule as follows: 5
775	778		a. For the first six months of the applicable fiscal year, if the higher 6
776	779		school growth score in one of the two prior school years shows that 7
777	780		the school exceeded expected growth. 8
778	781		b. For the second six months of the applicable fiscal year, if the school 9
779	782		growth scores show that the school or schools exceeded expected 10
780	783		growth in at least two of the prior three school years. 11
781	784		(2) A principal shall be paid according to the Met Growth column of the schedule 12
782	785		as follows: 13
783	786		a. For the first six months of the applicable fiscal year, if any of the 14
784	787		following apply: 15
785	788		1. The higher school growth score in one of the two prior school 16
786	789		years shows that the school met expected growth. 17
787	790		2. The principal supervised a school in the two prior school years 18
788	791		that was not eligible to receive a school growth score. 19
789	792		b. For the second six months of the applicable fiscal year, if any of the 20
790	793		following apply: 21
791	794		1. The school growth scores show that the school or schools met 22
792	795		expected growth in at least two of the prior three school years. 23
793	796		2. The school growth scores show that the school or schools met 24
794	797		expected growth in at least one of the prior three school years 25
795	798		and exceeded expected growth in one of the prior three school 26
796	799		years. 27
797	800		3. The principal supervised a school in at least two of the prior 28
798	801		three school years that was not eligible to receive a school 29
799	802		growth score. 30
800	803		(3) A principal shall be paid according to the Base column as follows: 31
801	804		a. For the first six months of the applicable fiscal year, if any of the 32
802	805		following apply: 33
803	806		1. The school growth scores from the two prior school years show 34
804	807		that the school did not meet expected growth in both years. 35
805	808		2. The principal has not supervised any school as a principal for 36
806	809		a majority of the two prior school years. 37
807	810		b. For the second six months of the applicable fiscal year, if any of the 38
808	811		following apply: 39
809	812		1. The school growth scores show that the school or schools did 40
810	813		not meet expected growth in at least two of the prior three 41
811	814		school years. 42
812	815		2. The principal has not supervised any school as a principal for 43
813	816		a majority of the school year in at least two of the prior three 44
814	817		school years. 45
815	818		SECTION 2.3.(b) For purposes of determining the average daily membership of a 46
816	819		principal's school, the following shall apply: 47
817	820		(1) The following amounts shall be used during the following time periods: 48
818	821		a. For the first six months of the applicable fiscal year, the average daily 49
819	822		membership for the school from the third year. If the school did not 50
820	823		have an average daily membership in the third year, the projected 51 General Assembly Of North Carolina Session 2025
821		-	~~House Bill 420-First Edition~~ Page 17
	824	+	DRH30188-MTa-22 Page 17
822	825		average daily membership for the school for the applicable school 1
823	826		year. 2
824	827		b. For the second six months of the applicable fiscal year, the average 3
825	828		daily membership for the school for the applicable school year. 4
826	829		(2) The average daily membership of a principal's school shall include any 5
827	830		prekindergarten students in membership at that school. 6
828	831		SECTION 2.3.(c) For purposes of determining the school growth scores for each 7
829	832		school the principal supervised in one or more prior school years, the following school growth 8
830	833		scores shall be used during the following time periods: 9
831	834		(1) For the first six months of the applicable fiscal year, the school growth scores 10
832	835		from the first and second years. 11
833	836		(2) For the second six months of the applicable fiscal year, the school growth 12
834	837		scores from the first, second, and third years. If a principal does not have a 13
835	838		school growth score from any of the school years identified in this subdivision, 14
836	839		the most recent available growth scores, up to the third year, shall be used. 15
837	840		SECTION 2.3.(d) Beginning with the 2017-2018 fiscal year, in lieu of providing 16
838	841		annual longevity payments to principals paid on the principal salary schedule, the amounts of 17
839	842		those longevity payments are included in the annual amounts under the principal salary schedule. 18
840	843		SECTION 2.3.(e) A principal compensated in accordance with this section for the 19
841	844		applicable fiscal year shall receive an amount equal to the greater of the following: 20
842	845		(1) The applicable amount on the salary schedule for the applicable fiscal year. 21
843	846		(2) For principals who were eligible for longevity in the 2016-2017 fiscal year, 22
844	847		the sum of the following: 23
845	848		a. The salary the principal received in the 2016-2017 fiscal year pursuant 24
846	849		to Section 9.1 or Section 9.2 of S.L. 2016-94. 25
847	850		b. The longevity that the principal would have received as provided for 26
848	851		State employees under the North Carolina Human Resources Act for 27
849	852		the 2016-2017 fiscal year based on the principal's current years of 28
850	853		service. 29
851	854		(3) For principals who were not eligible for longevity in the 2016-2017 fiscal 30
852	855		year, the salary the principal received in the 2016-2017 fiscal year pursuant to 31
853	856		Section 9.1 or Section 9.2 of S.L. 2016-94. 32
854	857		SECTION 2.3.(f) For purposes of this section, the following definitions apply: 33
855	858		(1) First year. – The school year immediately preceding the second year. 34
856	859		(2) Second year. – The school year immediately preceding the third year. 35
857	860		(3) The applicable fiscal year. – The 2025-2026 fiscal year. 36
858	861		(4) The applicable school year. – The 2025-2026 school year. 37
859	862		(5) Third year. – The school year immediately preceding the applicable school 38
860	863		year. 39
861	864		SECTION 2.3.(g) There is appropriated from the General Fund to the Department 40
862	865		of Public Instruction for the 2025-2026 fiscal year the sum of twenty-six million four hundred 41
863	866		thirty-six thousand one hundred eighty dollars ($26,436,180) in recurring funds to increase 42
864	867		salaries for principals in accordance with this section. 43
865	868		SECTION 2.3.(h) It is the intent of the General Assembly to adjust compensation 44
866	869		for principals in the 2025-2026 fiscal year and subsequent fiscal years in accordance with any 45
867	870		information provided by the Department of Public Instruction in March of 2026 pursuant to the 46
868	871		compensation study referenced in Section 1.16 of this act. 47
869	872		48
870	873		ASSISTANT PRINCIPAL SALARIES 49
871	874		SECTION 2.4.(a) For the 2025-2026 fiscal year, beginning July 1, 2025, assistant 50
872	875		principals shall receive a monthly salary based on the salary schedule for teachers who are 51 General Assembly Of North Carolina Session 2025
873		-	Page 18 ~~House Bill 420-First Edition~~
	876	+	Page 18 DRH30188-MTa-22
874	877		classified as "A" teachers plus nineteen percent (19%). An assistant principal shall be placed on 1
875	878		the step on the salary schedule that reflects the total number of years of experience as a certified 2
876	879		employee of the public schools. For purposes of this section, an administrator with a one-year 3
877	880		provisional assistant principal's certificate shall be considered equivalent to an assistant principal. 4
878	881		SECTION 2.4.(b) Assistant principals with certification based on academic 5
879	882		preparation at the six-year degree level shall be paid a salary supplement of one hundred 6
880	883		twenty-six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary 7
881	884		supplement of two hundred fifty-three dollars ($253.00) per month. 8
882	885		SECTION 2.4.(c) Participants in an approved full-time master's in school 9
883	886		administration program shall receive up to a 10-month stipend during the internship period of the 10
884	887		master's program. The stipend shall be at the beginning salary of an assistant principal or, for a 11
885	888		teacher who becomes an intern, at least as much as that person would earn as a teacher on the 12
886	889		teacher salary schedule. The North Carolina Principal Fellows Program or the school of education 13
887	890		where the intern participates in a full-time master's in school administration program shall supply 14
888	891		the Department of Public Instruction with certification of eligible full-time interns. 15
889	892		SECTION 2.4.(d) Beginning with the 2017-2018 fiscal year, in lieu of providing 16
890	893		annual longevity payments to assistant principals on the assistant principal salary schedule, the 17
891	894		amounts of those longevity payments are included in the monthly amounts provided to assistant 18
892	895		principals pursuant to subsection (a) of this section. 19
893	896		SECTION 2.4.(e) An assistant principal compensated in accordance with this section 20
894	897		for the 2025-2026 fiscal year shall receive an amount equal to the greater of the following: 21
895	898		(1) The applicable amount on the salary schedule for the applicable year. 22
896	899		(2) For assistant principals who were eligible for longevity in the 2016-2017 fiscal 23
897	900		year, the sum of the following: 24
898	901		a. The salary the assistant principal received in the 2016-2017 fiscal year 25
899	902		pursuant to Section 9.1 or Section 9.2 of S.L. 2016-94. 26
900	903		b. The longevity that the assistant principal would have received as 27
901	904		provided for State employees under the North Carolina Human 28
902	905		Resources Act for the 2016-2017 fiscal year based on the assistant 29
903	906		principal's current years of service. 30
904	907		(3) For assistant principals who were not eligible for longevity in the 2016-2017 31
905	908		fiscal year, the salary the assistant principal received in the 2016-2017 fiscal 32
906	909		year pursuant to Section 9.1 or Section 9.2 of S.L. 2016-94. 33
907	910		SECTION 2.4.(f) There is appropriated from the General Fund to the Department of 34
908	911		Public Instruction for the 2025-2026 fiscal year the sum of twenty-two million eight hundred 35
909	912		sixty-two thousand nine hundred eighty-four dollars ($22,862,984) in recurring funds to increase 36
910	913		salaries for assistant principals in accordance with this section. 37
911	914		SECTION 2.4.(g) It is the intent of the General Assembly to adjust compensation 38
912	915		for assistant principals in the 2026-2027 fiscal year and subsequent fiscal years in accordance 39
913	916		with any information provided by the Department of Public Instruction in March of 2026 40
914	917		pursuant to the compensation study referenced in Section 1.16 of this act. 41
915	918		42
916	919		PLAN FOR SCHOOL -BASED ADMINISTRATOR GRANT PROGRAM 43
917	920		SECTION 2.5.(a) No later than March 15, 2026, the State Board of Education shall 44
918	921		develop and report to the Joint Legislative Education Oversight Committee and the Fiscal 45
919	922		Research Division a plan to implement and evaluate the effectiveness of incentive programs to 46
920	923		encourage well-qualified principals and assistant principals to work in high-need schools. These 47
921	924		programs may include salary supplements for principals who take positions in chronically 48
922	925		low-performing schools, protection for principals against salary reduction for working in 49
923	926		high-need or low-performing schools, and rewards for principals and assistant principals for 50
924	927		making progress on school performance. 51 General Assembly Of North Carolina Session 2025
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	928	+	DRH30188-MTa-22 Page 19
926	929		SECTION 2.5.(b) It is the intent of the General Assembly to implement advisable 1
927	930		components of the plan developed pursuant to subsection (a) of this section. 2
928	931		3
929	932		RECOMMENDATIONS FOR ADDITIONAL AUTONOMY AND RESOURCES FOR 4
930	933		PRINCIPALS AND SUPERINTENDENTS IN LOCAL SCHOOL ADMINISTRATIVE 5
931	934		UNITS 6
932	935		SECTION 2.6.(a) No later than November 15, 2026, the Department of Public 7
933	936		Instruction shall survey local school administrative units on recommendations to increase 8
934	937		autonomy and resources for principals and superintendents. No later than February 15, 2027, the 9
935	938		Department shall compile responses from this survey and report them to the Joint Legislative 10
936	939		Education Oversight Committee and the Fiscal Research Division. 11
937	940		SECTION 2.6.(b) It is the intent of the General Assembly to implement advisable 12
938	941		recommendations submitted to the Department pursuant to subsection (a) of this section in the 13
939	942		2027-2028 fiscal year and subsequent fiscal years. 14
940	943		15
941	944		PART III. FINANCE SYSTEM THAT PROVIDES ADEQUATE, EQUITABLE, AND 16
942	945		EFFICIENT RESOURCES 17
943	946		18
944	947		BUDGET FLEXIBILITY FOR LOCAL BOARDS OF EDUCATION 19
945	948		SECTION 3.1.(a) G.S. 115C-105.25(b) reads as rewritten: 20
946	949		"(b) Subject to the following limitations, local boards of education may transfer and may 21
947	950		approve transfers of funds between funding allotment categories: 22
948	951		(1) Repealed by Session Laws 2013-360, s. 8.14, effective July 1, 2013. 23
949	952		(1a) Funds for career and technical education and other purposes may be 24
950	953		transferred only as permitted by federal law and the conditions of federal 25
951	954		grants or as provided through any rules that the State Board of Education 26
952	955		adopts to ensure compliance with federal regulations. 27
953	956		(1b) No funds shall be transferred out of the children with disabilities allotment 28
954	957		category. 29
955	958		(2), (2a) Repealed by Session Laws 2013-360, s. 8.14, effective July 1, 2013. 30
956	959		(3) No funds shall be transferred into the central office administration allotment 31
957	960		category. 32
958	961		(3a) No funds shall be transferred out of the teacher assistants allotment category. 33
959	962		(3b) No funds shall be transferred out of the academically or intellectually gifted 34
960	963		children allotment category. 35
961	964		(4), (5) Repealed by Session Laws 2013-360, s. 8.14, effective July 1, 2013. 36
962	965		(5a) No positions shall be transferred out of the allocation for classroom teachers 37
963	966		for kindergarten through twelfth grade, except as provided in this subdivision. 38
964	967		Positions allocated for classroom teachers may be converted to dollar 39
965	968		equivalents to contract for visiting international exchange teachers through a 40
966	969		visiting international exchange teacher program approved by the State. These 41
967	970		positions shall be converted at the statewide average salary for classroom 42
968	971		teachers, including benefits. The converted funds shall be used only to provide 43
969	972		visiting international exchange teachers with salaries commensurate with their 44
970	973		experience levels, to provide any State-approved bonuses, and to cover the 45
971	974		costs associated with supporting visiting international exchange teachers 46
972	975		within the local school administrative unit, including programming and 47
973	976		related activities, background checks, medical coverage, and other program 48
974	977		administration services in accordance with the federal regulations for the 49
975	978		Exchange Visitor Program, 22 C.F.R. Part 62. 50 General Assembly Of North Carolina Session 2025
976		-	Page 20 ~~House Bill 420-First Edition~~
	979	+	Page 20 DRH30188-MTa-22
977	980		(5b) Positions allocated Except as provided in subdivision (5a) of this subsection, 1
978	981		positions allocated for classroom teachers and for instructional support 2
979	982		personnel may be converted to dollar equivalents for any purpose authorized 3
980	983		by the policies of the State Board of Education. These positions shall be 4
981	984		converted at the salary on the first step of the "A" Teachers Salary Schedule. 5
982	985		Certified position allotments shall not be transferred to dollars to hire the same 6
983	986		type of position. 7
984	987		(5c) Funds allocated for school building administration may be converted for any 8
985	988		purpose authorized by the policies of the State Board of Education. For funds 9
986	989		related to principal positions, the salary transferred shall be based on the first 10
987	990		step of the Base column of the Principal Salary Schedule. For funds related to 11
988	991		assistant principal months of employment, the salary transferred shall be based 12
989	992		on the first step of the "A" Teachers Salary Schedule at the salary level for 13
990	993		assistant principals. Certified position allotments shall not be transferred to 14
991	994		dollars to hire the same type of position. 15
992	995		(5d) No positions shall be transferred out of the allocation for program 16
993	996		enhancement teachers for kindergarten through fifth grade except as provided 17
994	997		in this subdivision. Positions allocated for program enhancement teachers for 18
995	998		kindergarten through fifth grade may be converted into positions allocated for 19
996	999		classroom teachers for kindergarten through twelfth grade. For the purposes 20
997	1000		of this subdivision, the term "program enhancement" is as defined in 21
998	1001		G.S. 115C-301(c2). 22
999	1002		(6) through (9) Repealed by Session Laws 2013-360, s. 8.14, effective July 1, 23
1000	1003		2013. 24
1001	1004		(10) Funds to carry out the elements of the Excellent Public Schools Act that are 25
1002	1005		contained in Section 7A.1 of S.L. 2012-142 shall not be transferred. 26
1003	1006		(10a) No funds shall be transferred out of the limited English proficiency allotment 27
1004	1007		category. 28
1005	1008		(11) No funds shall be transferred into or out of the driver education allotment 29
1006	1009		category. 30
1007	1010		(12) Funds allotted for textbooks and digital resources may only be used for the 31
1008	1011		purchase of textbooks and digital resources. These funds shall not be 32
1009	1012		transferred out of the allotment for any other purpose. 33
1010	1013		(13) No positions shall be transferred out of the allocation for school health 34
1011	1014		personnel except as provided in this subdivision. Positions allocated for school 35
1012	1015		health personnel may be converted to dollar equivalents for contracted 36
1013	1016		services directly related to school psychology, school counseling, school 37
1014	1017		nursing, and school social work. These positions shall be converted at the 38
1015	1018		minimum salary for the position on the "A" Teachers Salary Schedule." 39
1016	1019		SECTION 3.1.(b) This section applies beginning with the 2025-2026 school year. 40
1017	1020		41
1018	1021		FUNDS FOR CHILDREN WITH DISABILITIES 42
1019	1022		SECTION 3.2.(a) G.S. 115C-111.05, as enacted by Section 7.1 of S.L. 2023-134, 43
1020	1023		reads as rewritten: 44
1021	1024		"§ 115C-111.05. Funding for children with disabilities. 45
1022	1025		To the extent funds are made available for this purpose, the State Board shall allocate funds 46
1023	1026		for children with disabilities to each local school administrative unit on a per child basis. Each 47
1024	1027		local school administrative unit shall receive funds for the lesser of (i) all children who are 48
1025	1028		identified as children with disabilities or (ii) thirteen percent (13%) of its allocated average daily 49
1026	1029		membership in the local school administrative unit for the current school year.on the basis of the 50
1027	1030		reported cost of the services provided." 51 General Assembly Of North Carolina Session 2025
1028		-	~~House Bill 420-First Edition~~ Page 21
	1031	+	DRH30188-MTa-22 Page 21
1029	1032		SECTION 3.2.(b) There is appropriated from the General Fund to the Department 1
1030	1033		of Public Instruction the sum of three hundred fifty-one million nine hundred twenty-four 2
1031	1034		thousand two hundred seventy-three dollars ($351,924,273) in recurring funds for the 2025-2026 3
1032	1035		fiscal year and four hundred fifty million three hundred twenty-four thousand two hundred 4
1033	1036		seventy-three dollars ($450,324,273) in recurring funds for the 2026-2027 fiscal year to 5
1034	1037		implement the plan for weighted funding for children with disabilities on the basis of the reported 6
1035	1038		cost of services provided developed by the Department of Public Instruction pursuant to Section 7
1036	1039		7.7 of S.L. 2023-134. The Department shall begin distributing funds for children with disabilities 8
1037	1040		based on this model beginning with the 2025-2026 school year. 9
1038	1041		10
1039	1042		REVISE SUPPLEMENTAL FUNDING IN LOW -WEALTH COUNTIES 11
1040	1043		SECTION 3.3.(a) Subsections (d) and (e) of G.S. 115C-472.22 read as rewritten: 12
1041	1044		"(d) Allocation of Funds. – Except as provided in subsection (f) of this section, the amount 13
1042	1045		received per average daily membership for a county shall be the difference between one hundred 14
1043	1046		ten percent (110%) of the State average current expense appropriations per student and the 15
1044	1047		current expense appropriations per student that the county could provide given the county's 16
1045	1048		wealth and an average effort to fund public schools. To derive the current expense appropriations 17
1046	1049		per student that the county could be able to provide given the county's wealth and an average 18
1047	1050		effort to fund public schools, multiply the county's wealth as a percentage of State average wealth 19
1048	1051		by the State average current expense appropriations per student. The funds for the local school 20
1049	1052		administrative units located in whole or in part in the county shall be allocated to each local 21
1050	1053		school administrative unit located in whole or in part in the county based on the average daily 22
1051	1054		membership of the county's students in the school units. If the funds appropriated for 23
1052	1055		supplemental funding are not adequate to fund the formula fully, each local school administrative 24
1053	1056		unit shall receive a pro rata share of the funds appropriated for supplemental funding. 25
1054	1057		(e) Formula for Distribution of Supplemental Funding Pursuant to This Section Only. – 26
1055	1058		The formula in this section is solely a basis for distribution of supplemental funding for 27
1056	1059		low-wealth counties and is not intended to reflect any measure of the adequacy of the educational 28
1057	1060		program or funding for public schools. The formula is also not intended to reflect any 29
1058	1061		commitment by the General Assembly to appropriate any additional supplemental funds for low-30
1059	1062		wealth counties.counties. It is the intent of the General Assembly to incrementally increase 31
1060	1063		appropriations for the low-wealth allotment to provide eligible counties supplemental funding 32
1061	1064		equal to one hundred ten percent (110%) of the statewide local revenue per student by fiscal year 33
1062	1065		2027-2028. The State Board of Education shall adjust the formula to ensure each local school 34
1063	1066		administrative unit receives a pro rata share of the additional funds appropriated for the 35
1064	1067		low-wealth allotment in this section for supplemental funding." 36
1065	1068		SECTION 3.3.(b) There is appropriated from the General Fund to the Department 37
1066	1069		of Public Instruction the sum of one hundred twenty-five million six hundred thousand dollars 38
1067	1070		($125,600,000) in recurring funds for the 2025-2026 fiscal year and one hundred sixty-five 39
1068	1071		million one hundred thousand dollars ($165,100,000) in recurring funds for the 2026-2027 fiscal 40
1069	1072		year to implement the changes to the low-wealth allotment in this section. 41
1070	1073		42
1071	1074		FUNDING FOR LIMITED ENGLISH PROFICIENCY STUDENTS 43
1072	1075		SECTION 3.4.(a) The State Board of Education shall allocate additional funds for 44
1073	1076		services to students with limited proficiency in the English language to local school 45
1074	1077		administrative units and to charter schools based on the three-year weighted headcount of 46
1075	1078		students in the units or charter schools with limited English proficiency pursuant to Section 7.9(a) 47
1076	1079		of S.L. 2007-323. The State Board of Education shall adopt formulas for computing the 48
1077	1080		allotments that do not include a cap on funds allocated. 49
1078	1081		SECTION 3.4.(b) There is appropriated from the General Fund to the Department 50
1079	1082		of Public Instruction the sum of one hundred forty million seven hundred thousand dollars 51 General Assembly Of North Carolina Session 2025
1080		-	Page 22 ~~House Bill 420-First Edition~~
	1083	+	Page 22 DRH30188-MTa-22
1081	1084		($140,700,000) in recurring funds for the 2025-2026 fiscal year and one hundred eighty-one 1
1082	1085		million dollars ($181,000,000) in recurring funds for the 2026-2027 fiscal year to implement this 2
1083	1086		section. 3
1084	1087		4
1085	1088		TEACHER ASSISTANT ALLOTMENT 5
1086	1089		SECTION 3.5.(a) Section 8.47(b) of S.L. 2015-241 is repealed. 6
1087	1090		SECTION 3.5.(b) Article 21 of Chapter 115C of the General Statutes is amended by 7
1088	1091		adding a new section to read: 8
1089	1092		"§ 115C-316.6. Teacher assistant allotment. 9
1090	1093		(a) To the extent funds are made available, the State Board of Education shall establish a 10
1091	1094		funding allotment for teacher assistant positions. The State Board is authorized to adopt rules for 11
1092	1095		the allocation of teacher assistant positions pursuant to this allotment. Funds allocated pursuant 12
1093	1096		to this section shall be distributed based on the following: 13
1094	1097		(1) An estimated statewide average salary and benefits per teacher assistant 14
1095	1098		position. 15
1096	1099		(2) The requirements of subsection (d) of this section. 16
1097	1100		(b) Beginning with the 2025-2026 fiscal year, there is appropriated from the General 17
1098	1101		Fund to the Department of Public Instruction for the following fiscal years the following amounts 18
1099	1102		to the teacher assistant allotment: 19
1100	1103		Fiscal Year Appropriation 20
1101	1104		2025-2026 $142,600,000 21
1102	1105		2026-2027 $180,100,000 22
1103	1106		2027-2028 and each subsequent fiscal year thereafter $217,700,000 23
1104	1107		(c) When developing the base budget, as defined by G.S. 143C-1-1, for each fiscal year 24
1105	1108		specified in subsection (b) of this section, the Director of the Budget shall include the 25
1106	1109		appropriated amount for that fiscal year. 26
1107	1110		(d) Funds appropriated pursuant to subsection (b) of this section shall be allocated to local 27
1108	1111		school administrative units to increase positions for teacher assistants in the following fiscal years 28
1109	1112		to the following statewide ratios of teacher assistants to students in kindergarten through grade 29
1110	1113		three: 30
1111	1114		Fiscal Year Teacher Assistants 31
1112	1115		2025-2026 1:33 32
1113	1116		2026-2027 1:30 33
1114	1117		2027-2028 and each subsequent fiscal year thereafter 1:27." 34
1115	1118		35
1116	1119		INCREASE FUNDING FOR INSTRUCTIONAL SUPPORT PERSONNEL 36
1117	1120		SECTION 3.6.(a) G.S. 115C-316.5 reads as rewritten: 37
1118	1121		"§ 115C-316.5. School health personnel allotment. 38
1119	1122		(a) For the purposes of this section, the term "school health personnel" refers to the same 39
1120	1123		positions listed in G.S. 115C-316.2(a). 40
1121	1124		(b) To the extent funds are made available, the The State Board of Education shall 41
1122	1125		establish a funding allotment for school health personnel positions. There is appropriated from 42
1123	1126		the General Fund to the Department of Public Instruction to fund the allotment the following 43
1124	1127		amounts in the fiscal years identified: 44
1125	1128		Fiscal Year Appropriation 45
1126	1129		2025-2026 $447,900,000 46
1127	1130		2026-2027 $518,300,000 47
1128	1131		2027-2028 and each subsequent fiscal year thereafter $647,900,000 48
1129	1132		(b1) When developing the base budget, as defined by G.S. 143C-1-1, for each fiscal year 49
1130	1133		specified in subsection (b) of this section, the Director of the Budget shall include the 50
1131	1134		appropriated amount for that fiscal year. 51 General Assembly Of North Carolina Session 2025
1132		-	~~House Bill 420-First Edition~~ Page 23
	1135	+	DRH30188-MTa-22 Page 23
1133	1136		(b2) The State Board is authorized to shall adopt rules for the allocation of school health 1
1134	1137		personnel positions pursuant to this allotment. Rules adopted by the State Board pursuant to this 2
1135	1138		section shall include, at a minimum, the following requirements: 3
1136	1139		(1) School health personnel positions are allocated on the basis of average daily 4
1137	1140		membership. 5
1138	1141		(2) Each local school administrative unit receives sufficient funding for at least 6
1139	1142		one school psychologist position.to fulfill the position-to-student ratios 7
1140	1143		identified in subsection (c) of this section. 8
1141	1144		(3) Local school administrative units are encouraged to fill positions under this 9
1142	1145		allotment with full-time, permanent employees. If the local school 10
1143	1146		administrative unit is unable to fill these positions by hiring a full-time, 11
1144	1147		permanent employee, the allocation for the position may be converted to a 12
1145	1148		dollar equivalent for the unit to contract with a third party to provide the 13
1146	1149		relevant services for an amount of hours equivalent to the hours a full-time 14
1147	1150		position employee would provide. 15
1148	1151		(c) Local school administrative units shall increase school health personnel positions 16
1149	1152		each fiscal year until the 2028-2029 fiscal year at the following position-to-student ratios: 17
1150	1153		Fiscal Year Nurses Counselors Social Workers Psychologists 18
1151	1154		2025-2026 1:766 1:306 1:651 1:1,198 19
1152	1155		2026-2027 1:657 1:275 1:496 1:885 20
1153	1156		2027-2028 21
1154	1157		and each subsequent 22
1155	1158		fiscal year thereafter 1:574 1:250 1:400 1:700." 23
1156	1159		SECTION 3.6.(b) Article 21 of Chapter 115C of the General Statutes is amended by 24
1157	1160		adding a new section to read: 25
1158	1161		"§ 115C-316.7. Instructional support allotment. 26
1159	1162		(a) Beginning with the 2025-2026 fiscal year, there is appropriated from the General 27
1160	1163		Fund to the Department of Public Instruction for the following fiscal years the following amounts 28
1161	1164		to the instructional support allotment: 29
1162	1165		Fiscal Year Appropriation 30
1163	1166		2025-2026 $19,045,331 31
1164	1167		2026-2027 $38,090,661 32
1165	1168		2027-2028 and each subsequent fiscal year thereafter $57,713,123 33
1166	1169		(b) When developing the base budget, as defined by G.S. 143C-1-1, for each fiscal year 34
1167	1170		specified in subsection (a) of this section, the Director of the Budget shall include the 35
1168	1171		appropriated amount for that fiscal year. 36
1169	1172		(c) Funds appropriated pursuant to subsection (a) of this section shall be allocated to local 37
1170	1173		school administrative units to increase instructional support personnel positions each fiscal year 38
1171	1174		until the 2028-2029 fiscal year at the following position-to-student ratios: 39
1172	1175		Fiscal Year Media Coordinators 40
1173	1176		2025-2026 1:684 41
1174	1177		2026-2027 1:608 42
1175	1178		2027-2028 and each subsequent fiscal year thereafter 1:547." 43
1176	1179		44
1177	1180		CONSOLIDATE ALLOTMENTS INTO A SINGLE ALLOTMENT 45
1178	1181		SECTION 3.7. The Department of Public Instruction shall report to the Joint 46
1179	1182		Legislative Education Oversight Committee on a method to combine all dollar allotments 47
1180	1183		currently distributed on the basis of average daily membership into a single allotment. The 48
1181	1184		Department shall submit the report no later than February 15, 2026. 49
1182	1185		50
1183	1186		INCREASE ALLOTTED ASSISTANT PRINCIPAL MONTHS OF EMPLOYMENT 51 General Assembly Of North Carolina Session 2025
1184		-	Page 24 ~~House Bill 420-First Edition~~
	1187	+	Page 24 DRH30188-MTa-22
1185	1188		SECTION 3.8. There is appropriated from the General Fund to the Department of 1
1186	1189		Public Instruction the recurring sum of eighteen million six hundred thousand dollars 2
1187	1190		($18,600,000) in the 2025-2026 fiscal year and the recurring sum of twenty-four million eight 3
1188	1191		hundred thousand dollars ($24,800,000) in the 2026-2027 fiscal year to increase the school 4
1189	1192		building administration allotment. These funds shall be used to increase the ratio of assistant 5
1190	1193		principals to students in all local school administrative units. 6
1191	1194		7
1192	1195		INCREASE FUNDING FOR CENTRAL OFFICE STAFF 8
1193	1196		SECTION 3.9. There is appropriated from the General Fund to the Department of 9
1194	1197		Public Instruction the recurring sum of twenty-one million seven hundred two thousand sixty-one 10
1195	1198		dollars ($21,702,061) in the 2025-2026 fiscal year and the recurring sum of twenty-nine million 11
1196	1199		three hundred fifty-five thousand three hundred fifty-five dollars ($29,355,355) in the 2026-2027 12
1197	1200		fiscal year to increase the central office administration allotment. These funds shall be used to 13
1198	1201		support additional personnel and services provided by central office staff in local school 14
1199	1202		administrative units. 15
1200	1203		16
1201	1204		CENTRAL OFFICE SALARIES 17
1202	1205		SECTION 3.10.(a) The monthly salary maximums that follow apply to assistant 18
1203	1206		superintendents, associate superintendents, directors/coordinators, supervisors, and finance 19
1204	1207		officers for the 2025-2026 fiscal year beginning July 1, 2025: 20
1205	1208		2025-2026 Fiscal Year 21
1206	1209		Maximum 22
1207	1210		School Administrator I $7,754 23
1208	1211		School Administrator II $8,216 24
1209	1212		School Administrator III $8,707 25
1210	1213		School Administrator IV $9,046 26
1211	1214		School Administrator V $9,407 27
1212	1215		School Administrator VI $9,966 28
1213	1216		School Administrator VII $10,363 29
1214	1217		The local board of education shall determine the appropriate category and placement 30
1215	1218		for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or 31
1216	1219		finance officer within the maximums and within funds appropriated by the General Assembly 32
1217	1220		for central office administrators and superintendents. The category in which an employee is 33
1218	1221		placed shall be included in the contract of any employee. 34
1219	1222		SECTION 3.10.(b) The monthly salary maximums that follow apply to 35
1220	1223		superintendents for the 2025-2026 fiscal year beginning July 1, 2025: 36
1221	1224		2025-2026 Fiscal Year 37
1222	1225		Maximum 38
1223	1226		Superintendent I $10,985 39
1224	1227		Superintendent II $11,640 40
1225	1228		Superintendent III $12,338 41
1226	1229		Superintendent IV $13,080 42
1227	1230		Superintendent V $13,867 43
1228	1231		The local board of education shall determine the appropriate category and placement 44
1229	1232		for the superintendent based on the average daily membership of the local school administrative 45
1230	1233		unit and within funds appropriated by the General Assembly for central office administrators and 46
1231	1234		superintendents. 47
1232	1235		SECTION 3.10.(c) Longevity pay for superintendents, assistant superintendents, 48
1233	1236		associate superintendents, directors/coordinators, supervisors, and finance officers shall be as 49
1234	1237		provided for State employees under the North Carolina Human Resources Act. 50 General Assembly Of North Carolina Session 2025
1235		-	~~House Bill 420-First Edition~~ Page 25
	1238	+	DRH30188-MTa-22 Page 25
1236	1239		SECTION 3.10.(d) Superintendents, assistant superintendents, associate 1
1237	1240		superintendents, directors/coordinators, supervisors, and finance officers with certification based 2
1238	1241		on academic preparation at the six-year degree level shall receive a salary supplement of one 3
1239	1242		hundred twenty-six dollars ($126.00) per month in addition to the compensation provided 4
1240	1243		pursuant to this section. Superintendents, assistant superintendents, associate superintendents, 5
1241	1244		directors/coordinators, supervisors, and finance officers with certification based on academic 6
1242	1245		preparation at the doctoral degree level shall receive a salary supplement of two hundred 7
1243	1246		fifty-three dollars ($253.00) per month in addition to the compensation provided for under this 8
1244	1247		section. 9
1245	1248		SECTION 3.10.(e) The State Board of Education shall not permit local school 10
1246	1249		administrative units to transfer State funds from other funding categories for salaries for public 11
1247	1250		school central office administrators. 12
1248	1251		13
1249	1252		ESTABLISH MECHANISM TO CONTINUALLY UPDATE STATE SPENDING FOR 14
1250	1253		INFLATION AND ENROLLMENT GROWTH 15
1251	1254		SECTION 3.11. The Department of Public Instruction, when submitting budget 16
1252	1255		adjustment requests to the General Assembly and the Office of State Budget and Management, 17
1253	1256		shall include adjustments for inflation and other rising costs associated with providing a sound 18
1254	1257		basic education. 19
1255	1258		20
1256	1259		APPROPRIATE FUNDS DIRECTLY TO CHARTER SCHOOLS 21
1257	1260		SECTION 3.12.(a) G.S. 115C-218.105 reads as rewritten: 22
1258	1261		"§ 115C-218.105. State and local funds for a charter school. 23
1259	1262		(a) The State Board of Education shall allocate to each charter school: 24
1260	1263		(1) An amount equal to the average per pupil allocation for average daily 25
1261	1264		membership from the local school administrative unit allotments for the local 26
1262	1265		school administrative unit in which the charter school is located for each child 27
1263	1266		attending the charter school except for the allocation for children with 28
1264	1267		disabilities and for the allocation for children with limited English 29
1265	1268		proficiency;school. 30
1266	1269		(2) An additional amount for each child attending the charter school who is a child 31
1267	1270		with disabilities; anddisabilities. 32
1268	1271		(3) An additional amount for children with limited English proficiency attending 33
1269	1272		the charter school, based on a formula adopted by the State Board. 34
1270	1273		In accordance with G.S. 115C-218.7 and G.S. 115C-218.8, the State Board shall allow for 35
1271	1274		annual adjustments to the amount allocated to a charter school based on its enrollment growth in 36
1272	1275		school years subsequent to the initial year of operation. 37
1273	1276		In the event a child with disabilities leaves the charter school and enrolls in a public school 38
1274	1277		during the first 60 school days in the school year, the charter school shall return a pro rata amount 39
1275	1278		of funds allocated for that child to the State Board, and the State Board shall reallocate those 40
1276	1279		funds to the local school administrative unit in which the public school is located. In the event a 41
1277	1280		child with disabilities enrolls in a charter school during the first 60 school days in the school year, 42
1278	1281		the State Board shall allocate to the charter school the pro rata amount of additional funds for 43
1279	1282		children with disabilities. 44
1280	1283		… 45
1281	1284		(b1) Counties may provide direct capital funds to charter schools by direct appropriation 46
1282	1285		as set forth in G.S. 153A-461. These funds shall be used only for the following purposes: 47
1283	1286		… 48
1284	1287		(b2) If a charter school uses funds provided in receives direct capital funds under 49
1285	1288		subsection (b1) of this section to acquire or improve property, the amount provided by the county 50
1286	1289		shall be evidenced by a promissory note and secured by a deed of trust on the property acquired 51 General Assembly Of North Carolina Session 2025
1287		-	Page 26 ~~House Bill 420-First Edition~~
	1290	+	Page 26 DRH30188-MTa-22
1288	1291		or improved by the funds. The county may subordinate the deed of trust to other liens to facilitate 1
1289	1292		the acquisition or improvement of the property secured by the deed of trust. In the event that a 2
1290	1293		charter school repays the county in the amount of the capital funds provided, the county shall, 3
1291	1294		for the property acquired or improved by the funds, execute and file a deed of release or other 4
1292	1295		documentation of satisfaction showing the charter school repaid the county in the amount of the 5
1293	1296		capital funds provided. 6
1294	1297		(b3) For each child attending a charter school, the county in which the child resides shall 7
1295	1298		allocate to the charter school an amount equal to the average per pupil allocation for average 8
1296	1299		daily membership, as determined in accordance with G.S. 115C-430. 9
1297	1300		(b4) Counties shall allocate funds to charter schools in accordance with G.S. 115C-437. 10
1298	1301		…." 11
1299	1302		SECTION 3.12.(b) G.S. 115C-218.105(c) through G.S. 115C-218.105(e) are 12
1300	1303		repealed. 13
1301	1304		SECTION 3.12.(c) G.S. 115C-423 reads as rewritten: 14
1302	1305		"§ 115C-423. Definitions. 15
1303	1306		The words and phrases defined in this section have the meanings indicated when used in this 16
1304	1307		Article, unless the context clearly requires another meaning: 17
1305	1308		(1) "Budget" is a Budget. – A plan proposed by a board of education for raising 18
1306	1309		and spending money for specified school programs, functions, activities, or 19
1307	1310		objectives during a fiscal year. 20
1308	1311		(2) "Budget resolution" is a Budget resolution. – A resolution adopted by a board 21
1309	1312		of education that appropriates revenues for specified school programs, 22
1310	1313		functions, activities, or objectives during a fiscal year. 23
1311	1314		(3) "Budget year" is the Budget year. – The fiscal year for which a budget is 24
1312	1315		proposed and a budget resolution is adopted. 25
1313	1316		(4) "Fiscal year" is the Fiscal year. – The annual period for the compilation of 26
1314	1317		fiscal operations. The fiscal year begins on July 1 and ends on June 30. 27
1315	1318		(5) "Fund" is an Fund. – An independent fiscal and accounting entity consisting 28
1316	1319		of cash and other resources together with all related liabilities, obligations, 29
1317	1320		reserves, and equities which are segregated by appropriate accounting 30
1318	1321		techniques for the purpose of carrying on specific activities or attaining certain 31
1319	1322		objectives in accordance with established legal regulations, restrictions or 32
1320	1323		limitations. 33
1321	1324		(6) Local schools. – All local school administrative units located in a county, plus 34
1322	1325		any charter schools that are attended by children residing in the county. 35
1323	1326		(7) "Vending facilities" has the same meaning as it does in Vending facilities. – 36
1324	1327		As defined in G.S. 111-42(d), but also means any mechanical or electronic 37
1325	1328		device dispensing items or something of value or entertainment or services for 38
1326	1329		a fee, regardless of the method of activation, and regardless of the means of 39
1327	1330		payment, whether by coin, currency, tokens, or other means." 40
1328	1331		SECTION 3.12.(d) G.S. 115C-430 reads as rewritten: 41
1329	1332		"§ 115C-430. Apportionment of county appropriations among local school administrative 42
1330	1333		units.schools. 43
1331	1334		If there is more than one local school administrative unit in a county, all All appropriations 44
1332	1335		by the county to the local current expense funds of the units, schools, except appropriations 45
1333	1336		funded by supplemental taxes levied less than countywide pursuant to a local act of 46
1334	1337		G.S. 115C-501 to 115C-511, must be apportioned according to the membership of each unit. 47
1335	1338		average daily membership. County appropriations are properly apportioned when the dollar 48
1336	1339		amount obtained by dividing the amount so appropriated to each unit appropriated to each local 49
1337	1340		school administrative unit in the county and each charter school a resident child is attending by 50
1338	1341		the total membership of the unit or number of resident charter school attendees is the same for 51 General Assembly Of North Carolina Session 2025
1339		-	~~House Bill 420-First Edition~~ Page 27
	1342	+	DRH30188-MTa-22 Page 27
1340	1343		each unit. The total membership of the local school administrative unit is the unit's average same. 1
1341	1344		Average daily membership for the budget year to shall be determined by and certified to the unit 2
1342	1345		local schools and the board of county commissioners by the State Board of Education." 3
1343	1346		SECTION 3.12.(e) G.S. 115C-431 reads as rewritten: 4
1344	1347		"§ 115C-431. Procedure for resolution of dispute between board of education the governing 5
1345	1348		body of a local school and a board of county commissioners. 6
1346	1349		(a) If the board of education governing body of a local school determines that the amount 7
1347	1350		of money appropriated to the local current expense fund, or the capital outlay fund, or both, by 8
1348	1351		the board of county commissioners to a local school administrative unit or charter school is not 9
1349	1352		sufficient to support a system of free public schools, then the chairman of the board of education 10
1350	1353		governing body of the local school and the chairman of the board of county commissioners shall 11
1351	1354		arrange a joint meeting of the two boards to be held within seven days after the day of the county 12
1352	1355		commissioners' decision on the school appropriations. 13
1353	1356		Prior to the joint meeting, the Senior Resident Superior Court Judge shall appoint a mediator 14
1354	1357		unless the boards agree to jointly select a mediator. The mediator shall preside at the joint meeting 15
1355	1358		and shall act as a neutral facilitator of disclosures of factual information, statements of positions 16
1356	1359		and contentions, and efforts to negotiate an agreement settling the boards' differences. 17
1357	1360		At the joint meeting, the entire school budget shall be considered carefully and judiciously, 18
1358	1361		and the two boards shall make a good-faith attempt to resolve the differences that have arisen 19
1359	1362		between them. 20
1360	1363		(b) If no agreement is reached at the joint meeting of the two boards, the mediator shall, 21
1361	1364		at the request of either board, commence a mediation immediately or within a reasonable period 22
1362	1365		of time. The mediation shall be held in accordance with rules and standards of conduct adopted 23
1363	1366		under Chapter 7A of the General Statutes governing mediated settlement conferences but 24
1364	1367		modified as appropriate and suitable to the resolution of the particular issues in disagreement. 25
1365	1368		Unless otherwise agreed upon by both boards, the following individuals shall constitute the 26
1366	1369		two working groups empowered to represent their respective boards during the mediation: 27
1367	1370		(1) The chair of each board or the chair's designee;designee. 28
1368	1371		(2) The superintendent of the local school administrative unit or the chair of the 29
1369	1372		charter school board of directors, and the county manager manager, or either's 30
1370	1373		designee;any of their designees. 31
1371	1374		(3) The finance officer of each board; andboard. 32
1372	1375		(4) The attorney for each board. 33
1373	1376		Members of both the boards, their chairs, and representatives shall cooperate with and respond 34
1374	1377		to all reasonable requests of the mediator to participate in the mediation. Notwithstanding Article 35
1375	1378		33C of Chapter 143 of the General Statutes, the mediation proceedings involving the two working 36
1376	1379		groups shall be conducted in private. Evidence of statements made and conduct occurring in a 37
1377	1380		mediation are not subject to discovery and are inadmissible in any court action. However, no 38
1378	1381		evidence otherwise discoverable is inadmissible merely because it is presented or discussed in a 39
1379	1382		mediation. The mediator shall not be compelled to testify or produce evidence concerning 40
1380	1383		statements made and conduct occurring in a mediation in any civil proceeding for any purpose, 41
1381	1384		except disciplinary hearings before the State Bar or any agency established to enforce standards 42
1382	1385		of conduct for mediators. Reports by members of either working group to their respective boards 43
1383	1386		shall be made in compliance with Article 33C of Chapter 143 of the General Statutes. 44
1384	1387		Unless both boards agree otherwise, or unless the boards have already resolved their dispute, 45
1385	1388		the mediation shall end no later than August 1. The mediator shall have the authority to determine 46
1386	1389		that an impasse exists and to discontinue the mediation. The mediation may continue beyond 47
1387	1390		August 1 provided both boards agree. If both boards agree to continue the mediation beyond 48
1388	1391		August 1, the board of county commissioners shall appropriate to the local school administrative 49
1389	1392		unit for deposit in the local current expense fund or to a charter school a sum of money sufficient 50
1390	1393		to equal the local contribution to this fund for the previous year. 51 General Assembly Of North Carolina Session 2025
1391		-	Page 28 ~~House Bill 420-First Edition~~
	1394	+	Page 28 DRH30188-MTa-22
1392	1395		If the working groups reach a proposed agreement, the terms and conditions must be 1
1393	1396		approved by each board. If no agreement is reached, the mediator shall announce that fact to the 2
1394	1397		chairs of both boards, the Senior Resident Superior Court Judge, and the public. The mediator 3
1395	1398		shall not disclose any other information about the mediation. The mediator shall not make any 4
1396	1399		recommendations or public statement of findings or conclusions. 5
1397	1400		The local board of education governing body of the local school and the board of county 6
1398	1401		commissioners shall share equally the mediator's compensation and expenses. The mediator's 7
1399	1402		compensation shall be determined according to rules adopted under Chapter 7A of the General 8
1400	1403		Statutes. 9
1401	1404		(b1) If agreement is not reached in mediation on the amount of money appropriated to the 10
1402	1405		local current expense fund, fund or charter school, and the amount to be appropriated has not 11
1403	1406		been calculated pursuant to this subsection for longer than the prior year, the sum to be 12
1404	1407		appropriated for the budget year in dispute shall be calculated as follows: 13
1405	1408		(1) The amount of moneys appropriated to the local current expense fund by the 14
1406	1409		board of county commissioners in the prior fiscal year that are expended in 15
1407	1410		that year by the local school administrative unit or transferred as required by 16
1408	1411		G.S. 115C-75.10, 115C-218.105, 115C-238.70, and 116-239.11 shall be 17
1409	1412		divided by the sum of the following: the average daily membership of the local 18
1410	1413		school administrative unit plus the share of the average daily membership of 19
1411	1414		any innovative, charter, regional, or laboratory school whose students reside 20
1412	1415		in the local school administrative unit for the prior school year. For charter 21
1413	1416		schools, the amount of moneys appropriated to the charter school in the prior 22
1414	1417		fiscal year that are expended in that year divided by the average daily 23
1415	1418		membership of the charter school. 24
1416	1419		(2) The amount from subdivision (1) of this subsection, rounded to the nearest 25
1417	1420		penny, shall then be multiplied by the sum of one plus the twelve month 26
1418	1421		percent change in the second quarter Employment Cost Index for elementary 27
1419	1422		and secondary school workers as reported by the Federal Bureau of Labor 28
1420	1423		Statistics. 29
1421	1424		(3) The amount from subdivision (2) of this subsection, rounded to the nearest 30
1422	1425		penny, shall then be multiplied by the sum of the following: the allotted 31
1423	1426		average daily membership for the school year plus the share of the average 32
1424	1427		daily membership of any innovative, charter, regional, or laboratory school 33
1425	1428		whose students reside in the local school administrative unit for the budget 34
1426	1429		year in dispute. For charter schools, the amount shall be multiplied by the 35
1427	1430		allotted average daily membership for the school year. 36
1428	1431		The board of county commissioners shall appropriate to the local current expense fund or the 37
1429	1432		charter school the sum from subdivision (3) of this subsection, rounded to the nearest penny, to 38
1430	1433		the local board of education for the budget year in dispute. 39
1431	1434		(b2) If agreement is not reached in mediation, and the amount to be appropriated has been 40
1432	1435		calculated pursuant to subsection (b1) of this section to the local current expense fund for the 41
1433	1436		prior two years, the sum to be appropriated for the budget year in dispute shall be calculated as 42
1434	1437		follows: 43
1435	1438		(1) The amount of moneys appropriated to the local current expense fund by the 44
1436	1439		board of county commissioners in the prior fiscal year that are expended in 45
1437	1440		the prior fiscal year by the local school administrative unit and transferred as 46
1438	1441		required by G.S. 115C-75.10, 115C-218.105, 115C-238.70, and 116-239.11 47
1439	1442		shall be divided by the sum of the following: the average daily membership 48
1440	1443		plus the share of the average daily membership of any innovative, charter, 49
1441	1444		regional, or laboratory school whose students reside in the local school 50
1442	1445		administrative unit for the prior school year. For charter schools, the amount 51 General Assembly Of North Carolina Session 2025
1443		-	~~House Bill 420-First Edition~~ Page 29
	1446	+	DRH30188-MTa-22 Page 29
1444	1447		of moneys appropriated to the charter school in the prior fiscal year that are 1
1445	1448		expended in that year divided by the average daily membership of the charter 2
1446	1449		school. 3
1447	1450		… 4
1448	1451		(4) The amount from subdivision (3) of this subsection shall then be multiplied 5
1449	1452		by the sum of the following: the allotted average daily membership for the 6
1450	1453		school year plus the share of the average daily membership of any innovative, 7
1451	1454		charter, regional, or laboratory school whose students reside in the local 8
1452	1455		school administrative unit for the budget year in dispute. For charter schools, 9
1453	1456		the amount shall be multiplied by the funded average daily membership for 10
1454	1457		the school year. 11
1455	1458		The board of county commissioners shall appropriate to the local current expense fund or to 12
1456	1459		the charter school the sum from subdivision (4) of this subsection, rounded to the nearest penny, 13
1457	1460		to the local board of education for the budget year in dispute. 14
1458	1461		(b3) Neither the local board of education governing body of the local school nor the board 15
1459	1462		of county commissioners shall file any legal action challenging the determination as to the funds 16
1460	1463		to be appropriated by the board of county commissioners to the local current expense fund in 17
1461	1464		accordance with under the formulas found in subsections (b1) and (b2) of this section. 18
1462	1465		…." 19
1463	1466		SECTION 3.12.(f) G.S. 115C-437 reads as rewritten: 20
1464	1467		"§ 115C-437. Allocation of revenues to the local school administrative unit by the 21
1465	1468		county.schools. 22
1466	1469		Revenues accruing to the local school administrative unit schools by virtue of Article IX, 23
1467	1470		Sec. 7, of the Constitution and taxes levied by or on behalf of the a local school administrative 24
1468	1471		unit pursuant to a local act or G.S. 115C-501 to 115C-511 shall be remitted to the school finance 25
1469	1472		officer by the officer having custody thereof within 10 days after the close of the calendar month 26
1470	1473		in which the revenues were received or collected. The clear proceeds of all penalties and 27
1471	1474		forfeitures and of all fines collected for any breach of the penal laws of the State, as referred to 28
1472	1475		in Article IX, Sec. 7 of the Constitution, shall include the full amount of all penalties, forfeitures 29
1473	1476		or fines collected under authority conferred by the State, diminished only by the actual costs of 30
1474	1477		collection, not to exceed ten percent (10%) of the amount collected. Revenues appropriated to 31
1475	1478		the local school administrative unit a local school by the board of county commissioners from 32
1476	1479		general county revenues shall be made available to the school finance officer by such procedures 33
1477	1480		as may be mutually agreeable to the board of education governing body of the local school and 34
1478	1481		the board of county commissioners, but if no such agreement is reached, these funds shall be 35
1479	1482		remitted to the school finance officer by the county finance officer in monthly installments 36
1480	1483		sufficient to meet its lawful expenditures from the county appropriation until the county 37
1481	1484		appropriation to the local school administrative unit is exhausted. Each installment shall be paid 38
1482	1485		not later than 10 days after the close of each calendar month. When revenue has been appropriated 39
1483	1486		to the local school administrative unit by the board of county commissioners from funds which 40
1484	1487		carry specific restrictions binding upon the county as recipient, the board of commissioners must 41
1485	1488		inform the local school administrative unit in writing of those restrictions." 42
1486	1489		SECTION 3.12.(g) G.S. 115C-448(d) reads as rewritten: 43
1487	1490		"(d) Special funds of individual schools shall not be included as part of the local current 44
1488	1491		expense fund of a local school administrative unit for the purposes of determining in determining 45
1489	1492		the per pupil share of the local current expense fund transferred amount to be appropriated from 46
1490	1493		the county to a charter school pursuant to G.S. 115C-218.105(c).G.S. 115C-218.105(b3)." 47
1491	1494		SECTION 3.12.(h) G.S. 153A-461, as amended by Section 6 of S.L. 2023-107, 48
1492	1495		reads as rewritten: 49
1493	1496		"§ 153A-461. Charter schools. 50 General Assembly Of North Carolina Session 2025
1494		-	Page 30 ~~House Bill 420-First Edition~~
	1497	+	Page 30 DRH30188-MTa-22
1495	1498		(a) Each county shall appropriate to a charter school the average per pupil allocation, as 1
1496	1499		determined by G.S. 115C-430, for each child that resides in the county and attends that charter 2
1497	1500		school. 3
1498	1501		(b) Each county is authorized to appropriate direct capital funds and lease real property 4
1499	1502		to schools chartered under Article 14A of Chapter 115C of the General Statutes. Counties may 5
1500	1503		provide direct capital funds only for the purposes set forth in G.S. 115C-218.105(b1)." 6
1501	1504		7
1502	1505		ISSUE CAPITAL BONDS 8
1503	1506		SECTION 3.13.(a) Purpose. – It is the intent of the General Assembly by this section 9
1504	1507		to provide, subject to a vote of the qualified voters of the State, for the issuance of two billion 10
1505	1508		dollars ($2,000,000,000) in general obligation bonds of the State for the purpose of providing 11
1506	1509		funds, with any other available funds, for public school facilities through grants to counties for 12
1507	1510		public school capital outlay projects, repairs, and renovations. 13
1508	1511		SECTION 3.13.(b) Definitions. – Unless the context otherwise requires, the 14
1509	1512		following definitions apply in this section: 15
1510	1513		(1) Bonds. – Bonds issued under this section. 16
1511	1514		(2) Cost. – Without intending thereby to limit or restrict any proper definition of 17
1512	1515		this term in financing the cost of any capital outlay projects as authorized by 18
1513	1516		this section, any of the following: 19
1514	1517		a. The cost of constructing, reconstructing, enlarging, acquiring, and 20
1515	1518		improving projects and acquiring equipment and land therefor. 21
1516	1519		b. The cost of engineering, architectural, and other consulting services as 22
1517	1520		may be required. 23
1518	1521		c. Administrative expenses and charges, including expenses related to 24
1519	1522		determining compliance with applicable requirements of federal law 25
1520	1523		and expenses relating to issuance. Nothing in this section shall permit 26
1521	1524		use of bond funds to pay salaries or fees for bond administration; such 27
1522	1525		salaries and fees shall come from funds appropriated by the General 28
1523	1526		Assembly. 29
1524	1527		d. Finance charges and interest prior to and during construction and, if 30
1525	1528		deemed advisable by the State Treasurer, for a period not exceeding 31
1526	1529		three years after the estimated date of completion of construction. 32
1527	1530		e. The cost of bond insurance, investment contracts, credit enhancement 33
1528	1531		and liquidity facilities, interest rate swap agreements or other 34
1529	1532		derivative products, financial and legal consultants, and related costs 35
1530	1533		of bond and note issuance, and costs incurred by the State in 36
1531	1534		administering the bond issues, including costs of trustees, escrow 37
1532	1535		agents, arbitrage rebate liability consultants, securities disclosure 38
1533	1536		counsel or similar securities disclosure consultants, tax consultants 39
1534	1537		and financial advisors, to the extent and as determined by the State 40
1535	1538		Treasurer. 41
1536	1539		f. The cost of reimbursing the State for any payments made for any cost 42
1537	1540		described in this subdivision. 43
1538	1541		g. Any other costs and expenses necessary or incidental to the purposes 44
1539	1542		of this school. 45
1540	1543		Allocations in this section of proceeds of bonds to the costs of a project or 46
1541	1544		undertaking in each case may include allocations to pay the costs set forth in 47
1542	1545		sub-subdivisions c. through g. of this subdivision in connection with the 48
1543	1546		issuance of bonds for the project or undertaking. 49
1544	1547		(3) Credit facility agreement. – An agreement entered into by the State Treasurer 50
1545	1548		on behalf of the State with a bank, savings and loan association, or other 51 General Assembly Of North Carolina Session 2025
1546		-	~~House Bill 420-First Edition~~ Page 31
	1549	+	DRH30188-MTa-22 Page 31
1547	1550		banking institution; an insurance company, reinsurance company, surety 1
1548	1551		company, or other insurance institution; a corporation, investment banking 2
1549	1552		firm, or other investment institution; or any financial institution or other 3
1550	1553		similar provider of a credit facility agreement, which provider may be located 4
1551	1554		within or without the United States of America, such agreement providing for 5
1552	1555		prompt payment of all or any part of the principal or purchase price (whether 6
1553	1556		at maturity, presentment or tender for purchase, redemption, or acceleration), 7
1554	1557		redemption premium, if any, and interest on any bonds or notes payable on 8
1555	1558		demand or tender by the owner, in consideration of the State agreeing to repay 9
1556	1559		the provider of the credit facility agreement in accordance with the terms and 10
1557	1560		provisions of such agreement. 11
1558	1561		(4) Notes. – Notes issued under this section. 12
1559	1562		(5) Par formula. – Any provision or formula adopted by the State to provide for 13
1560	1563		the adjustment, from time to time, of the interest rate or rates borne by any 14
1561	1564		bonds or notes, including the following: 15
1562	1565		a. A provision providing for such adjustment so that the purchase price 16
1563	1566		of such bonds or notes in the open market would be as close to par as 17
1564	1567		possible; 18
1565	1568		b. A provision providing for such adjustment based upon a percentage or 19
1566	1569		percentages of a LIBOR rate, a prime rate, or base rate, which 20
1567	1570		percentage or percentages may vary or be applied for different periods 21
1568	1571		of time; or 22
1569	1572		c. Such other provision as the State Treasurer may determine to be 23
1570	1573		consistent with this and will not materially and adversely affect the 24
1571	1574		financial position of the State and the marketing of bonds or notes at a 25
1572	1575		reasonable interest cost to the State. 26
1573	1576		(6) Public school capital outlay project. – A project for any of the following: 27
1574	1577		a. Construction of one or more new public school buildings. 28
1575	1578		b. Renovation of one or more existing public school buildings. 29
1576	1579		c. Construction, acquisition, and installation of technology infrastructure 30
1577	1580		for a public school building. 31
1578	1581		d. Acquisition and installation of equipment or fixtures to ensure 32
1579	1582		building security for a public school building. 33
1580	1583		e. Acquisition and installation of equipment for a public school building 34
1581	1584		that will be used for an instructional or related purpose. 35
1582	1585		f. Purchase of land necessary for construction to commence within 24 36
1583	1586		months of one or more public school buildings. 37
1584	1587		g. Other related capital outlay projects to provide facilities for individual 38
1585	1588		public schools that are used for instructional or related purposes. 39
1586	1589		The term does not include projects for facilities for centralized administration, 40
1587	1590		trailers, relocatable classrooms, or mobile classrooms. 41
1588	1591		(7) State. – The State of North Carolina. 42
1589	1592		SECTION 3.13.(c) Authorization of Bonds and Notes. – Subject to a favorable vote 43
1590	1593		of a majority of the qualified voters of the State who vote on the question of issuing bonds for 44
1591	1594		public school capital outlay projects in the election called and held as provided in this section, 45
1592	1595		the State Treasurer is hereby authorized, by and with the consent of the Council of State, to issue 46
1593	1596		and sell, at one time or from time to time, general obligation bonds of the State to be designated 47
1594	1597		"State of North Carolina Education Bonds," with any additional designations as may be 48
1595	1598		determined to indicate the issuance of bonds from time to time, or notes of the State as provided 49
1596	1599		in this section, in an aggregate principal amount not exceeding two billion dollars 50
1597	1600		($2,000,000,000) for the purpose of providing funds, with any other available funds, for the 51 General Assembly Of North Carolina Session 2025
1598		-	Page 32 ~~House Bill 420-First Edition~~
	1601	+	Page 32 DRH30188-MTa-22
1599	1602		purposes authorized in this section. In determining whether this limit has been reached, the 1
1600	1603		issuance of a note or bond to pay an outstanding note is not considered an issuance. 2
1601	1604		SECTION 3.13.(d) Use of Education Bond and Note Proceeds. – 3
1602	1605		(1) Subject to the provisions of subdivision (2) of this subsection, two billion 4
1603	1606		dollars ($2,000,000,000) of the proceeds of education bonds and notes, 5
1604	1607		including premium thereon, if any, shall be used for the purpose of making 6
1605	1608		grants to counties for paying the cost of public school capital outlay projects, 7
1606	1609		repairs, and renovations. Proceeds of education bonds and notes shall be 8
1607	1610		distributed to public school units as if they were funds in the Needs-Based 9
1608	1611		Public School Capital Fund, except there shall be no matching requirements 10
1609	1612		imposed on the public school units. 11
1610	1613		Any additional monies that may be received by means of a grant or grants 12
1611	1614		from the United States of America or any agency or department thereof or 13
1612	1615		from any other source to aid in financing the cost of public school capital 14
1613	1616		outlay projects authorized by this section may be placed by the State Treasurer 15
1614	1617		in the Education Bonds Fund or in a separate account or fund and shall be 16
1615	1618		disbursed, to the extent permitted by the terms of the grant or grants, without 17
1616	1619		regard to limitations imposed by this section. 18
1617	1620		(2) The State Board of Education shall also require counties to report annually on 19
1618	1621		the impact of funds provided under this section on the property tax rate for 20
1619	1622		that year. These reports shall be public documents and shall be furnished to 21
1620	1623		any citizen upon request. 22
1621	1624		(3) The General Assembly encourages, in projects for which bond proceeds are 23
1622	1625		allocated, consideration by counties and local school administrative units of 24
1623	1626		projects that primarily involve materially improving the energy efficiency of 25
1624	1627		the school facility. 26
1625	1628		SECTION 3.13.(e) Allocation and Tracking of Proceeds. – 27
1626	1629		(1) Education bonds. – The proceeds of education bonds and notes, including 28
1627	1630		premium thereon, if any, except the proceeds of bonds, the issuance of which 29
1628	1631		has been anticipated by bond anticipation notes or the proceeds of refunding 30
1629	1632		bonds or notes, shall be placed by the State Treasurer in a special fund to be 31
1630	1633		designated "Education Bonds Fund," which may include such appropriate 32
1631	1634		special accounts therein as may be determined by the State Treasurer and shall 33
1632	1635		be disbursed as provided in this section. Monies in the Education Bonds Fund 34
1633	1636		shall be allocated and expended as provided in this section. 35
1634	1637		Any additional monies that may be received by means of a grant or grants 36
1635	1638		from the United States of America or any agency or department thereof or 37
1636	1639		from any other source for deposit to the Education Bonds Fund may be placed 38
1637	1640		in the Education Bonds Fund or in a separate account or fund and shall be 39
1638	1641		disbursed, to the extent permitted by the terms of the grant or grants, without 40
1639	1642		regard to any limitations imposed by this section. 41
1640	1643		Monies in the Education Bonds Fund or any separate account established 42
1641	1644		under this section may be invested from time to time by the State Treasurer in 43
1642	1645		the same manner permitted for investment of monies belonging to the State or 44
1643	1646		held in the State treasury, except with respect to grant money to the extent 45
1644	1647		otherwise directed by the terms of the grant. Investment earnings, except 46
1645	1648		investment earnings with respect to grant monies to the extent otherwise 47
1646	1649		directed or restricted by the terms of the grant, may be (i) credited to the 48
1647	1650		Education Bonds Fund or (ii) used to satisfy compliance with applicable 49
1648	1651		requirements of the federal tax law. 50 General Assembly Of North Carolina Session 2025
1649		-	~~House Bill 420-First Edition~~ Page 33
	1652	+	DRH30188-MTa-22 Page 33
1650	1653		The proceeds of education bonds and notes, including premium thereon, 1
1651	1654		if any, may be used with any other monies made available by the General 2
1652	1655		Assembly for funding the projects authorized by this section, including the 3
1653	1656		proceeds of any other State bond issues, whether heretofore made available or 4
1654	1657		that may be made available at the session of the General Assembly at which 5
1655	1658		this section is ratified or any subsequent sessions. The proceeds of education 6
1656	1659		bonds and notes, including premium thereon, if any, shall be expended and 7
1657	1660		disbursed under the direction and supervision of the Director of the Budget. 8
1658	1661		The funds provided by this section shall be disbursed for the purposes 9
1659	1662		provided in this section upon warrants drawn on the State Treasurer by the 10
1660	1663		State Controller, which warrants shall not be drawn until requisition has been 11
1661	1664		approved by the Director of the Budget and which requisition shall be 12
1662	1665		approved only after full compliance with the State Budget Act, Chapter 143C 13
1663	1666		of the General Statutes. 14
1664	1667		(2) Tracking of bond proceeds. – The State Treasurer or the State Treasurer's 15
1665	1668		designee is hereby authorized and directed to set up a comprehensive system 16
1666	1669		of tracking the proceeds of the education bonds and notes, including premium 17
1667	1670		thereon, if any, to the extent necessary to enable the State Treasurer or the 18
1668	1671		State Treasurer's designee to properly account for the use of such proceeds for 19
1669	1672		compliance with applicable requirements of the federal tax law or otherwise. 20
1670	1673		All recipients of such proceeds shall comply with any tracking system 21
1671	1674		implemented by the State Treasurer or the State Treasurer's designee for this 22
1672	1675		purpose. The State Treasurer may withhold proceeds if the recipient fails to 23
1673	1676		comply with this subdivision. 24
1674	1677		(3) Costs. – Allocations to the costs of a capital improvement or undertaking in 25
1675	1678		each case may include allocations to pay the costs set forth in sub-subdivisions 26
1676	1679		(b)(2)c. through (b)(2)g. of this section in connection with the issuance of 27
1677	1680		bonds for that capital improvement or undertaking. 28
1678	1681		SECTION 3.13.(f) Election. – The question of the issuance of the bonds authorized 29
1679	1682		by this section shall be submitted to the qualified voters of the State at the time of the election in 30
1680	1683		2028 when voters of this State are given an opportunity to express their preference for the person 31
1681	1684		to be the presidential candidate of their political party. Any other primary, election, or 32
1682	1685		referendum, validly called or scheduled by law at the time the election on the bond question 33
1683	1686		provided for in this subsection is held, may be held as called or scheduled. Notice of the election 34
1684	1687		shall be given in the manner and at the times required by G.S. 163-33(8). The election and the 35
1685	1688		registration of voters therefor shall be held under and in accordance with the general laws of the 36
1686	1689		State. Absentee ballots shall be authorized in the election. 37
1687	1690		Ballots, voting systems authorized by Article 14A of Chapter 163 of the General 38
1688	1691		Statutes, or both may be used in accordance with rules prescribed by the State Board. The bond 39
1689	1692		question to be used in the ballots or voting systems shall be in substantially the following form: 40
1690	1693		"[ ] FOR [ ] AGAINST 41
1691	1694		The issuance of two billion dollars ($2,000,000,000) State of North Carolina 42
1692	1695		Education Bonds constituting general obligation bonds of the State secured by a pledge of the 43
1693	1696		faith and credit and taxing power of the State for the purpose of providing funds, with any other 44
1694	1697		available funds, to fund capital improvements, construction of new facilities, and the renovation 45
1695	1698		and rehabilitation of existing facilities for the State's kindergarten through grade 12 public 46
1696	1699		education system." 47
1697	1700		If a majority of those voting on a bond question in the election vote in favor of the 48
1698	1701		issuance of the bonds described in the question, those bonds may be issued as provided in this 49
1699	1702		section. If a majority of those voting on the bond question in the election do not vote in favor of 50
1700	1703		the issuance of the bonds described in the question, those bonds shall not be issued. 51 General Assembly Of North Carolina Session 2025
1701		-	Page 34 ~~House Bill 420-First Edition~~
	1704	+	Page 34 DRH30188-MTa-22
1702	1705		The results of the election shall be canvassed and declared as provided by law for 1
1703	1706		elections for State officers; the results of the election shall be certified by the State Board to the 2
1704	1707		Secretary of State in the manner and at the time provided by the general election laws of the 3
1705	1708		State. 4
1706	1709		SECTION 3.13.(g) Issuance of Bonds and Notes. – 5
1707	1710		(1) Terms and conditions. – Bonds or notes may bear such date or dates, may be 6
1708	1711		serial or term bonds or notes, or any combination thereof, may mature in such 7
1709	1712		amounts and at such time or times, not exceeding 40 years from their date or 8
1710	1713		dates, may be payable at such place or places, either within or without the 9
1711	1714		United States of America, in such coin or currency of the United States of 10
1712	1715		America as at the time of payment is legal tender for payment of public and 11
1713	1716		private debts, may bear interest at such rate or rates, which may vary from 12
1714	1717		time to time, and may be made redeemable before maturity, at the option of 13
1715	1718		the State or otherwise as may be provided by the State, at such price or prices, 14
1716	1719		including a price less than the face amount of the bonds or notes, and under 15
1717	1720		such terms and conditions, all as may be determined by the State Treasurer by 16
1718	1721		and with the consent of the Council of State. 17
1719	1722		(2) Signatures; form and denomination; registration. – Bonds or notes may be 18
1720	1723		issued as certificated or uncertificated obligations. If issued as certificated 19
1721	1724		obligations, bonds or notes shall be signed on behalf of the State by the 20
1722	1725		Governor or shall bear the Governor's facsimile signature, shall be signed by 21
1723	1726		the State Treasurer or shall bear the State Treasurer's facsimile signature, and 22
1724	1727		shall bear the Great Seal of the State of North Carolina or a facsimile thereof 23
1725	1728		shall be impressed or imprinted thereon. If bonds or notes bear the facsimile 24
1726	1729		signatures of the Governor and the State Treasurer, the bonds or notes shall 25
1727	1730		also bear a manual signature, which may be that of a bond registrar, trustee, 26
1728	1731		paying agent, or designated assistant of the State Treasurer. Should any officer 27
1729	1732		whose signature or facsimile signature appears on bonds or notes cease to be 28
1730	1733		such officer before the delivery of the bonds or notes, the signature or 29
1731	1734		facsimile signature shall nevertheless have the same validity for all purposes 30
1732	1735		as if the officer had remained in office until delivery, and bonds or notes may 31
1733	1736		bear the facsimile signatures of persons who at the actual time of the execution 32
1734	1737		of the bonds or notes shall be the proper officers to sign any bond or note, 33
1735	1738		although at the date of the bond or note such persons may not have been such 34
1736	1739		officers. The form and denomination of bonds or notes, including the 35
1737	1740		provisions with respect to registration of the bonds or notes and any system 36
1738	1741		for their registration, shall be as the State Treasurer may determine in 37
1739	1742		conformity with this section; provided, however, that nothing in this section 38
1740	1743		shall prohibit the State Treasurer from proceeding, with respect to the issuance 39
1741	1744		and form of the bonds or notes, under the provisions of Chapter 159E of the 40
1742	1745		General Statutes, the Registered Public Obligations Act, as well as under this 41
1743	1746		section. 42
1744	1747		(3) Manner of sale; expenses. – Subject to the consent of the Council of State, the 43
1745	1748		State Treasurer shall determine the manner in which bonds or notes shall be 44
1746	1749		offered for sale, whether at public or private sale, whether within or without 45
1747	1750		the United States of America, and whether by publishing notices in certain 46
1748	1751		newspapers and financial journals, mailing notices, inviting bids by 47
1749	1752		correspondence, negotiating contracts of purchase, or otherwise, and the State 48
1750	1753		Treasurer is authorized to sell bonds or notes at one time or from time to time 49
1751	1754		at such rate or rates of interest, which may vary from time to time, and at such 50
1752	1755		price or prices, including a price less than the face amount of the bonds or the 51 General Assembly Of North Carolina Session 2025
1753		-	~~House Bill 420-First Edition~~ Page 35
	1756	+	DRH30188-MTa-22 Page 35
1754	1757		notes, as the State Treasurer may determine. All expenses incurred in 1
1755	1758		preparation, sale, and issuance of bonds or notes shall be paid by the State 2
1756	1759		Treasurer from the proceeds of bonds or notes or other available monies. 3
1757	1760		(4) Notes; repayment. – 4
1758	1761		a. Subject to the consent of the Council of State, the State Treasurer is 5
1759	1762		hereby authorized to borrow money and to execute and issue notes of 6
1760	1763		the State for the same, but only in the following circumstances and 7
1761	1764		under the following conditions: 8
1762	1765		1. For anticipating the sale of bonds to the issuance of which the 9
1763	1766		Council of State shall have given consent if the State Treasurer 10
1764	1767		shall deem it advisable to postpone the issuance of the bonds. 11
1765	1768		2. For the payment of interest on or any installment of principal 12
1766	1769		of any bonds then outstanding if there shall not be sufficient 13
1767	1770		funds in the State treasury with which to pay the interest or 14
1768	1771		installment of principal as they respectively become due. 15
1769	1772		3. For the renewal of any loan evidenced by notes herein 16
1770	1773		authorized. 17
1771	1774		4. For the purposes authorized in this section. 18
1772	1775		5. For refunding bonds or notes as herein authorized. 19
1773	1776		b. Funds derived from the sale of bonds or notes may be used in the 20
1774	1777		payment of any bond anticipation notes issued under this section. 21
1775	1778		Funds provided by the General Assembly for the payment of interest 22
1776	1779		on or principal of bonds shall be used in paying the interest on or 23
1777	1780		principal of any notes and any renewals thereof, the proceeds of which 24
1778	1781		shall have been used in paying interest on or principal of the bonds. 25
1779	1782		(5) Refunding bonds and notes. – By and with the consent of the Council of State, 26
1780	1783		the State Treasurer is authorized to issue and sell refunding bonds and notes 27
1781	1784		pursuant to the provisions of the State Refunding Bond Act for the purpose of 28
1782	1785		refunding bonds or notes issued pursuant to this section. The refunding bonds 29
1783	1786		and notes may be combined with any other issues of State bonds and notes 30
1784	1787		similarly secured. 31
1785	1788		(6) Tax exemption. – Bonds and notes shall be exempt from all State, county, and 32
1786	1789		municipal taxation or assessment, direct or indirect, general or special, 33
1787	1790		whether imposed for the purpose of general revenue or otherwise, excluding 34
1788	1791		inheritance and gift taxes, income taxes on the gain from the transfer of bonds 35
1789	1792		and notes, and franchise taxes. The interest on bonds and notes shall not be 36
1790	1793		subject to taxation as to income. 37
1791	1794		(7) Investment eligibility. – Bonds and notes are hereby made securities in which 38
1792	1795		all public officers, agencies, and public bodies of the State and its political 39
1793	1796		subdivisions; all insurance companies, trust companies, investment 40
1794	1797		companies, banks, savings banks, savings and loan associations, credit unions, 41
1795	1798		pension or retirement funds, other financial institutions engaged in business 42
1796	1799		in the State; executors, administrators, trustees, and other fiduciaries may 43
1797	1800		properly and legally invest funds, including capital in their control or 44
1798	1801		belonging to them. Bonds and notes are hereby made securities that may 45
1799	1802		properly and legally be deposited with and received by any officer or agency 46
1800	1803		of the State or political subdivision of the State for any purpose for which the 47
1801	1804		deposit of bonds, notes, or obligations of the State or any political subdivision 48
1802	1805		of the State is now or may hereafter be authorized by law. 49
1803	1806		(8) Faith and credit. – The faith and credit and taxing power of the State are hereby 50
1804	1807		pledged for the payment of the principal of and the interest on bonds and notes. 51 General Assembly Of North Carolina Session 2025
1805		-	Page 36 ~~House Bill 420-First Edition~~
	1808	+	Page 36 DRH30188-MTa-22
1806	1809		In addition to the State's right to amend any provision of this section to the 1
1807	1810		extent it does not impair any contractual right of a bond owner, the State 2
1808	1811		expressly reserves the right to amend any provision of this section with respect 3
1809	1812		to the making and repayment of loans, the disposition of any repayments of 4
1810	1813		loans, and any intercept provisions relating to the failure of a local government 5
1811	1814		unit to repay a loan, the bonds not being secured in any respect by loans, any 6
1812	1815		repayments thereof, or any intercept provisions with respect thereto. 7
1813	1816		SECTION 3.13.(h) Variable Interest Rates. – In fixing the details of bonds and notes, 8
1814	1817		the State Treasurer may provide that any of the bonds or notes may: 9
1815	1818		(1) Be made payable from time to time on demand or tender for purchase by the 10
1816	1819		owner thereof, provided a credit facility agreement supports the bonds or 11
1817	1820		notes, unless the State Treasurer specifically determines that a credit facility 12
1818	1821		agreement is not required, upon a finding and determination by the State 13
1819	1822		Treasurer that the absence of a credit facility agreement will not materially or 14
1820	1823		adversely affect the financial position of the State and the marketing of the 15
1821	1824		bonds or notes at a reasonable interest cost to the State; 16
1822	1825		(2) Be additionally supported by a credit facility agreement; 17
1823	1826		(3) Be made subject to redemption or a mandatory tender for purchase prior to 18
1824	1827		maturity; 19
1825	1828		(4) Bear interest at a rate or rates that may vary for such period or periods of time, 20
1826	1829		all as may be provided in the proceedings providing for the issuance of the 21
1827	1830		bonds or notes, including, without limitation, such variations as may be 22
1828	1831		permitted pursuant to a par formula; and 23
1829	1832		(5) Be made the subject of a remarketing agreement whereby an attempt is made 24
1830	1833		to remarket bonds or notes to new purchasers prior to their presentment for 25
1831	1834		payment to the provider of the credit facility agreement or to the State. 26
1832	1835		If the aggregate principal amount repayable by the State under a credit facility 27
1833	1836		agreement is in excess of the aggregate principal amount of bonds or notes secured by the credit 28
1834	1837		facility agreement, whether as a result of the inclusion in the credit facility agreement of a 29
1835	1838		provision for the payment of interest for a limited period of time or the payment of a redemption 30
1836	1839		premium or for any other reason, then the amount of authorized but unissued bonds or notes 31
1837	1840		during the term of such credit facility agreement shall not be less than the amount of such excess, 32
1838	1841		unless the payment of such excess is otherwise provided for by agreement of the State executed 33
1839	1842		by the State Treasurer. 34
1840	1843		SECTION 3.13.(i) Interpretation of Section. – 35
1841	1844		(1) Additional method. – The foregoing subsections of this section shall be 36
1842	1845		deemed to provide an additional and alternative method for the doing of the 37
1843	1846		things authorized thereby and shall be regarded as supplemental and 38
1844	1847		additional to powers conferred by other laws and shall not be regarded as in 39
1845	1848		derogation of any powers now existing. 40
1846	1849		(2) Statutory references. – References in this section to specific sections or 41
1847	1850		Chapters of the General Statutes or to specific acts are intended to be 42
1848	1851		references to these sections, Chapters, or acts as they may be amended from 43
1849	1852		time to time by the General Assembly. 44
1850	1853		(3) Broad construction. – This section, being necessary for the health, welfare, 45
1851	1854		and advancement of the people of the State, shall be broadly construed to 46
1852	1855		affect the purposes thereof. 47
1853	1856		(4) Inconsistent provisions. – Insofar as the provisions of this section are 48
1854	1857		inconsistent with the provisions of any general laws, or parts thereof, the 49
1855	1858		provisions of this section shall be controlling. 50 General Assembly Of North Carolina Session 2025
1856		-	~~House Bill 420-First Edition~~ Page 37
	1859	+	DRH30188-MTa-22 Page 37
1857	1860		(5) Severability. – If any provision of this section or the application thereof to any 1
1858	1861		person or circumstance is held invalid, such invalidity shall not affect other 2
1859	1862		provisions or applications of the section that can be given effect without the 3
1860	1863		invalid provision or application and, to this end, the provisions of this section 4
1861	1864		are declared to be severable. 5
1862	1865		SECTION 3.13.(j) Other Agreements. – The State Treasurer may authorize, execute, 6
1863	1866		obtain, or otherwise provide for bond issuance, investment contracts, credit and liquidity 7
1864	1867		facilities, interest rate swap agreements and other derivative products, and any other related 8
1865	1868		instruments and matters the State Treasurer determines to be desirable in connection with the 9
1866	1869		issuance of bonds and notes. 10
1867	1870		SECTION 3.13.(k) Each entity, upon receiving the proceeds of education bonds and 11
1868	1871		notes, including premium thereon, if any, issued pursuant to and for purposes listed in subsection 12
1869	1872		(a) of this section, shall administer, supervise, and ensure that use of the proceeds comports with 13
1870	1873		those purposes. Each local school administrative unit, along with the corresponding board of 14
1871	1874		county commissioners, shall jointly submit to the State Board of Education a plan for the 15
1872	1875		distribution of the proceeds of education bonds and notes pursuant to this section. After the State 16
1873	1876		Board of Education determines that a local school administrative unit's planned expenditure of 17
1874	1877		part or all of the proceeds is within the purposes provided in this section, the State Board of 18
1875	1878		Education shall make the proceeds to which the plans apply available to the local school 19
1876	1879		administrative unit. Each local school administrative unit receiving the proceeds of education 20
1877	1880		bonds and notes, including premium thereon, if any, issued pursuant to subsection (a) of this 21
1878	1881		section shall report by January 1, 2029, and quarterly thereafter, to the State Board of Education 22
1879	1882		on the projects funded from education general obligation bonds authorized by subsection (a) of 23
1880	1883		this section, and the State Board of Education shall combine the reports and submit them to the 24
1881	1884		Joint Legislative Capital Improvement Oversight Committee, the House of Representatives 25
1882	1885		Appropriations Committee, and the Senate Committee on Appropriations/Base Budget. Each 26
1883	1886		report shall include the total project costs, the amount to be funded from the bonds, the 27
1884	1887		expenditures to date from the bonds and other sources, and the percentage of each project 28
1885	1888		completed. 29
1886	1889		SECTION 3.13.(l) Projects funded in whole or in part with the proceeds of education 30
1887	1890		bonds and notes, including premium thereon, if any, issued pursuant to this section, and that 31
1888	1891		portion of funds estimated to be needed for escalation of costs shall remain with the Office of 32
1889	1892		State Budget and Management and shall be disbursed only for the following purposes: 33
1890	1893		(1) To address unforeseen contingencies related to the specific project for which 34
1891	1894		the funds were made available. 35
1892	1895		(2) To address inflation costs related to that specific project. 36
1893	1896		SECTION 3.13.(m) Any funds retained by the Office of State Budget and 37
1894	1897		Management pursuant to subsection (l) of this section at the time a project is completed shall be 38
1895	1898		retained by the Office of State Budget and Management. The Office of State Budget and 39
1896	1899		Management shall report on any funds retained pursuant to this subsection within 90 days of a 40
1897	1900		project's completion. 41
1898	1901		SECTION 3.13.(n) Any funds from the Education Bond Fund expended for school 42
1899	1902		technology for public schools shall be reported to the State Board of Education and shall be 43
1900	1903		credited against the judgment in N.C. Sch. Bds. Ass'n. v. Moore, No. 98-CVS-14159 (N.C. Super. 44
1901	1904		Ct.). 45
1902	1905		46
1903	1906		DISADVANTAGED STUDENT SUPPLEMENTAL FUNDING (DSSF)/AT -RISK 47
1904	1907		STUDENT SERVICES/ALTERNATIVE SCHOOLS 48
1905	1908		SECTION 3.14.(a) Beginning with the 2025-2026 fiscal year, the State Board of 49
1906	1909		Education shall transfer the At-Risk Student Services/Alternative Schools allotment into the 50
1907	1910		DSSF allotment, as established by G.S. 115C-472.24. The State Board of Education shall allocate 51 General Assembly Of North Carolina Session 2025
1908		-	Page 38 ~~House Bill 420-First Edition~~
	1911	+	Page 38 DRH30188-MTa-22
1909	1912		these funds to local school administrative units under a formula that provides that no local school 1
1910	1913		administrative unit receives a decrease in combined funding. Reallocated At-Risk funding must 2
1911	1914		be counted as an independent supplement to existing DSSF funds. 3
1912	1915		SECTION 3.14.(b) G.S. 115C-472.24 reads as rewritten: 4
1913	1916		"§ 115C-472.24. Disadvantaged Disadvantaged/At-Risk student supplemental funding. 5
1914	1917		(a) To the extent funds are made available for this purpose, funds appropriated for 6
1915	1918		disadvantaged or at-risk student supplemental funding shall be used, consistent with the policies 7
1916	1919		and procedures adopted by the State Board of Education, only to do the following: 8
1917	1920		(1) Provide instructional positions or instructional support positions. 9
1918	1921		(2) Provide professional development. 10
1919	1922		(3) Provide intensive in-school or after-school remediation, or both. 11
1920	1923		(4) Purchase diagnostic software and progress-monitoring tools. 12
1921	1924		(5) Provide funds for teacher bonuses and supplements. The State Board of 13
1922	1925		Education shall set a maximum percentage of the funds that may be used for 14
1923	1926		this purpose. 15
1924	1927		(6) Provide funds for alternative learning and at-risk student programs in 16
1925	1928		accordance with G.S. 115C-12(24). 17
1926	1929		The State Board of Education may require local school administrative units receiving funding 18
1927	1930		under the Disadvantaged Student Supplemental Fund to purchase the Education Value-Added 19
1928	1931		Assessment System (EVAAS) in order to provide in-depth analysis of student performance and 20
1929	1932		help identify strategies for improving student achievement. This data shall be used exclusively 21
1930	1933		for instructional and curriculum decisions made in the best interest of children and for 22
1931	1934		professional development for their teachers and administrators. 23
1932	1935		…." 24
1933	1936		SECTION 3.14.(c) There is appropriated from the General Fund to the Department 25
1934	1937		of Public Instruction the sum of seven hundred twenty-five million eight hundred thousand 26
1935	1938		dollars ($725,800,000) in recurring funds for the 2025-2026 fiscal year and nine hundred 27
1936	1939		forty-four million three hundred thousand dollars ($944,300,000) in recurring funds for the 28
1937	1940		2026-2027 fiscal year to implement the provisions of this section. 29
1938	1941		30
1939	1942		INCREASE FUNDING FOR CLASSROOM SUPPLIES 31
1940	1943		SECTION 3.15. There is appropriated from the General Fund to the Department of 32
1941	1944		Public Instruction the sum of sixty-one million seven hundred thousand dollars ($61,700,000) in 33
1942	1945		recurring funds for the 2025-2026 fiscal year and ninety-six million seven hundred thousand 34
1943	1946		dollars ($96,700,000) in recurring funds for the 2026-2027 fiscal year to increase the Classroom 35
1944	1947		Materials/Instructional Supplies/Equipment Allotment. 36
1945	1948		37
1946	1949		DEPARTMENT OF PUBLIC INSTRUCTION TO STUDY WEIGHTED STUDENT 38
1947	1950		FUNDING MODEL 39
1948	1951		SECTION 3.16.(a) The Department of Public Instruction shall study methods of 40
1949	1952		implementing a weighted student funding formula that retains existing guaranteed position 41
1950	1953		allotments. The Department may contract with a third party to conduct this study. The 42
1951	1954		Department shall report the Department's recommendations to implement such a model to the 43
1952	1955		Joint Legislative Education Oversight Committee by March 15, 2026. 44
1953	1956		SECTION 3.16.(b) There is appropriated from the General Fund to the Department 45
1954	1957		of Public Instruction the sum of five hundred thousand dollars ($500,000) in nonrecurring funds 46
1955	1958		for the 2025-2026 fiscal year to perform the study required by this section. 47
1956	1959		48
1957	1960		PART IV. ASSESSMENT AND ACCOUNTABILITY SYSTEM THAT RELIABLY 49
1958	1961		ASSESSES MULTIPLE MEASURES OF STUDENT PERFORMANCE 50
1959	1962		51 General Assembly Of North Carolina Session 2025
1960		-	~~House Bill 420-First Edition~~ Page 39
	1963	+	DRH30188-MTa-22 Page 39
1961	1964		ADJUST WEIGHTING BETWEEN PROFICIENCY AND GROWTH 1
1962	1965		SECTION 4.1.(a) G.S. 115C-83.15(d) reads as rewritten: 2
1963	1966		"(d) Calculation of the Overall School Performance Scores and Grades. – The State Board 3
1964	1967		of Education shall calculate the overall school performance score by adding the school 4
1965	1968		achievement score, as provided in subsection (b) of this section, and the school growth score, as 5
1966	1969		determined using EVAAS as provided in subsection (c) of this section, earned by a school. The 6
1967	1970		school achievement score shall account for eighty fifty-one percent (80%), (51%), and the school 7
1968	1971		growth score shall account for twenty forty-nine percent (20%) (49%) of the total sum. For all 8
1969	1972		schools, the total school performance score shall be converted to a 100-point scale and used to 9
1970	1973		determine an overall school performance grade. The overall school performance grade shall be 10
1971	1974		based on the following scale and shall not be modified to add any other designation related to 11
1972	1975		other performance measures, such as a "plus" or "minus": 12
1973	1976		…." 13
1974	1977		SECTION 4.1.(b) The Department of Public Instruction shall amend the State plan 14
1975	1978		under the Elementary and Secondary Education Act of 1965, as amended by the Every Student 15
1976	1979		Succeeds Act, to reflect the changes to achievement and growth score weighting in this section. 16
1977	1980		SECTION 4.1.(c) This section applies beginning with school performance scores 17
1978	1981		issued based on data from the 2025-2026 school year. 18
1979	1982		19
1980	1983		STUDY ON ADDITIONAL MEASURES IN THE SCHOOL ACCOUNTABILITY 20
1981	1984		SYSTEM 21
1982	1985		SECTION 4.2. The State Board of Education, in consultation with the Department 22
1983	1986		of Public Instruction, shall study methods of adding to the State school accountability system 23
1984	1987		indicators that provide information on the opportunity of students to access a sound basic 24
1985	1988		education. Additional indicators recommended shall not be inconsistent with the requirements of 25
1986	1989		the Elementary and Secondary Education Act of 1965, as amended by the Every Student 26
1987	1990		Succeeds Act, and shall not replace indicators included in the State school accountability system 27
1988	1991		under Part 1B of Article 8 of Chapter 115C of the General Statutes. The State Board of Education 28
1989	1992		shall submit a report with its recommended changes regarding the school accountability system 29
1990	1993		to the Joint Legislative Education Oversight Committee on or before June 15, 2026. 30
1991	1994		31
1992	1995		PART V. ASSISTANCE AND TURNAROUND FUNCTION THAT PROVIDES 32
1993	1996		NECESSARY SUPPORT TO LOW -PERFORMING SCHOOLS AND 33
1994	1997		LOW-PERFORMING LOCAL SCHOOL ADMINISTRATIVE UNITS 34
1995	1998		35
1996	1999		DISTRICT AND REGIONAL SUPPORT MODEL 36
1997	2000		SECTION 5.1. There is appropriated from the General Fund to the Department of 37
1998	2001		Public Instruction the sum of nineteen million dollars ($19,000,000) in recurring funds for the 38
1999	2002		2025-2026 fiscal year to be used to continue to implement the District and Regional Support 39
2000	2003		model developed by the State Board of Education to support the improvement of low-performing 40
2001	2004		and high-poverty schools. Implementation shall (i) provide support in needed content areas and 41
2002	2005		instructional and leadership coaching and (ii) include direct, comprehensive, and progressive 42
2003	2006		turnaround assistance to the State's chronically low-performing schools and low-performing 43
2004	2007		districts. 44
2005	2008		45
2006	2009		REVIEW AND UPDATE CURRICULUM ADOPTION PROCESSES 46
2007	2010		SECTION 5.2. Before March 15, 2026, the State Board of Education shall review, 47
2008	2011		update, and strengthen the State-level process for reviewing and adopting core curriculum 48
2009	2012		resources. The State Board of Education shall provide statewide and regional support, resources, 49
2010	2013		and professional learning opportunities to assist schools and districts in selecting and successfully 50
2011	2014		employing high-quality, standards-aligned, culturally responsive, evidence-based resources and 51 General Assembly Of North Carolina Session 2025
2012		-	Page 40 ~~House Bill 420-First Edition~~
	2015	+	Page 40 DRH30188-MTa-22
2013	2016		practices to assist educators in applying innovative practices that promote continuous 1
2014	2017		improvement. No later than June 30, 2026, the Department of Public Instruction shall provide a 2
2015	2018		model implementation plan to each local school administrative unit. 3
2016	2019		4
2017	2020		SUPPORT FOR HIGH -POVERTY SCHOOLS 5
2018	2021		SECTION 5.3.(a) Article 13 of Chapter 115C of the General Statutes is amended by 6
2019	2022		adding a new section to read: 7
2020	2023		"§ 115C-209.2. Community schools support program. 8
2021	2024		(a) Program Established. – The Department of Public Instruction shall establish a 9
2022	2025		program (Program) to provide support to high-poverty schools that adopt a community school 10
2023	2026		model or other evidence-based models to address out-of-school barriers to learning. 11
2024	2027		(b) Definitions. – The following definitions shall apply in this section: 12
2025	2028		(1) Community school model. – The model following the Department of Public 13
2026	2029		Instruction's Whole School, Whole Community, Whole Child model based on 14
2027	2030		the Centers for Disease Control and Prevention's guidance. 15
2028	2031		(2) Evidence-based model. – Any model established using evidence-based 16
2029	2032		methods that, in the discretion of the State Board of Education, achieve the 17
2030	2033		goals set in the Whole School, Whole Community, Whole Child model. 18
2031	2034		(c) Participation. – The Department of Public Instruction shall disseminate an application 19
2032	2035		form for participation in the Program for the following school year no later than June 1 of each 20
2033	2036		year. No later than July 1, any school that uses a community school model or other 21
2034	2037		evidence-based model to address out-of-school barriers to learning may apply to participate in 22
2035	2038		the Program. No later than August 1 of each school year that funds are made available for this 23
2036	2039		purpose, the Department of Public Instruction shall select geographically and culturally diverse 24
2037	2040		schools from among the applicants for that school year to participate in the Program. Priority 25
2038	2041		shall be given to schools that have high rates of student poverty. 26
2039	2042		(d) Implementation. – Each participating local school administrative unit shall hire one 27
2040	2043		full-time school-based coordinator per participating school. The school-based coordinator shall 28
2041	2044		assess local needs and assets and organize the integration of social, academic, and health supports 29
2042	2045		in coordination with school support personnel. The school-based coordinator shall also assess the 30
2043	2046		school's access to technical assistance and professional support to effectively plan and implement 31
2044	2047		the community school model or other evidence-based model. No later than July 15 of each school 32
2045	2048		year that a school participates in the Program, the school-based coordinator shall submit to the 33
2046	2049		Department of Public Instruction a request for funds for goods or services beneficial to meeting 34
2047	2050		the goals of the community school model or other evidence-based model for the following school 35
2048	2051		year. No later than August 15 of each school year, the Department of Public Instruction shall 36
2049	2052		evaluate each funding request and allocate funds as it deems necessary. 37
2050	2053		(e) Report. – No later than October 15 of each school year, the Department of Public 38
2051	2054		Instruction, in consultation with each school-based coordinator, shall provide a report to the Joint 39
2052	2055		Legislative Education Oversight Committee on the following: 40
2053	2056		(1) The amount of funds requested by each school. 41
2054	2057		(2) The purposes of funds requested by each school. 42
2055	2058		(3) The amount of funds allocated to each school. 43
2056	2059		(4) The use of funds allocated to each school. 44
2057	2060		(5) Any effects of the model on school outcomes, including attendance rates, 45
2058	2061		academic outcomes, or any other measure the school-based coordinator or the 46
2059	2062		Department deems relevant. 47
2060	2063		(6) Any other information the Department deems relevant." 48
2061	2064		SECTION 5.3.(b) Appropriation. – There is appropriated from the General Fund to 49
2062	2065		the Department of Public Instruction the sum of fifty-eight million seven hundred sixty-three 50
2063	2066		thousand seven hundred thirty-three dollars ($58,763,733) in recurring funds for the 2025-2026 51 General Assembly Of North Carolina Session 2025
2064		-	~~House Bill 420-First Edition~~ Page 41
	2067	+	DRH30188-MTa-22 Page 41
2065	2068		fiscal year and sixty-five million five hundred thirteen thousand six hundred twenty-one dollars 1
2066	2069		($65,513,621) in recurring funds for the 2026-2027 fiscal year for the implementation of this 2
2067	2070		Program. 3
2068	2071		SECTION 5.3.(c) This section applies beginning with the 2025-2026 school year. 4
2069	2072		5
2070	2073		ELIMINATE STUDENT COPAY FOR REDUCED -PRICE MEALS 6
2071	2074		SECTION 5.4.(a) There is appropriated from the General Fund to the Department 7
2072	2075		of Public Instruction the sum of nine hundred thousand dollars ($900,000) in recurring funds for 8
2073	2076		the 2025-2026 fiscal year to be used to provide school breakfasts and lunches at no cost to 9
2074	2077		students of all grade levels that qualify for reduced-price meals under the National School Lunch 10
2075	2078		Program in the current school year. If the funds are insufficient to provide school meals at no 11
2076	2079		cost to students qualifying for reduced-price meals, the Department of Public Instruction may 12
2077	2080		use funds appropriated to the State Aid for Public Schools fund for this purpose. 13
2078	2081		SECTION 5.4.(b) Part 2 of Article 17 of Chapter 115C of the General Statutes is 14
2079	2082		amended by adding a new section to read: 15
2080	2083		"§ 115C-264.6. School meal debt report. 16
2081	2084		No later than October 15, 2025, and annually thereafter, the State Board of Education shall 17
2082	2085		report to the Joint Legislative Education Oversight Committee on unpaid meal charges in local 18
2083	2086		school administrative units. At a minimum, the report shall include the following information: 19
2084	2087		(1) The percentage of students of all grade levels in each local school 20
2085	2088		administrative unit who (i) qualify for and participate in reduced-price meals 21
2086	2089		and (ii) do not carry an unpaid meal charge. 22
2087	2090		(2) The total amount of funds received by each local school administrative unit 23
2088	2091		related to unpaid meal charges. 24
2089	2092		(3) Summaries of approaches adopted by each local school administrative unit 25
2090	2093		regarding unpaid meal charges. 26
2091	2094		(4) Options for a statewide policy on the uniform administration of unpaid meal 27
2092	2095		charges in local school administrative units. Every option shall ensure that 28
2093	2096		students are not prevented from receiving nutritious meals because of an 29
2094	2097		unpaid meal charge." 30
2095	2098		31
2096	2099		CEP MEAL PROGRAM INCENTIVE 32
2097	2100		SECTION 5.5.(a) Section 7.59 of S.L. 2023-134 reads as rewritten: 33
2098	2101		"SECTION 7.59.(a) Program; Purpose. – The Department of Public Instruction shall 34
2099	2102		establish the CEP Meal Program Incentive for the 2023-2025 fiscal biennium to expand public 35
2100	2103		school participation in the federal Community Eligibility Provision (CEP) program to increase 36
2101	2104		the number of students with access to healthy, cost-free school breakfast and lunch. The incentive 37
2102	2105		program shall be available to public school units for the 2024-2025 fiscal year.year and last for 38
2103	2106		four additional years. 39
2104	2107		… 40
2105	2108		"SECTION 7.59.(c) Application. – By January 15, 2024, and annually thereafter by April 41
2106	2109		15 for four additional years, the Department shall develop the application for the incentive 42
2107	2110		program and make it available to public school units. Public school units or individual schools 43
2108	2111		shall submit their applications by March 1, 2024. 2024, and annually thereafter by June 1 for four 44
2109	2112		additional years. At a minimum, the application shall include the following information: 45
2110	2113		(1) The school or schools that will participate in the CEP program. 46
2111	2114		(2) The Identified Student Percentage (ISP) for the school or schools for the 2024-47
2112	2115		2025 current school year. 48
2113	2116		(3) The number of students enrolled in the school or schools for the 2024-2025 49
2114	2117		current school year. 50 General Assembly Of North Carolina Session 2025
2115		-	Page 42 ~~House Bill 420-First Edition~~
	2118	+	Page 42 DRH30188-MTa-22
2116	2119		(4) Participation rates in the National School Breakfast and Lunch programs for 1
2117	2120		the 2023-2024 school year for the schools requesting to receive the incentive. 2
2118	2121		"SECTION 7.59.(d) Selection. – By April 30, 2024, and annually thereafter by July 15 for 3
2119	2122		four additional years, the Department shall determine whether each applicant is eligible to 4
2120	2123		participate in the incentive program. The Department shall then award grants to all eligible public 5
2121	2124		school units and schools. If there are insufficient funds to award grants to all eligible public 6
2122	2125		school units or schools, the Department shall first prioritize awarding grants to public school 7
2123	2126		units and schools with an Identified Student Percentage (ISP) of greater than or equal to fifty-five 8
2124	2127		percent (55%) and then prioritize awarding grants to those schools that will draw the greatest 9
2125	2128		federal match. 10
2126	2129		… 11
2127	2130		"SECTION 7.59.(g) Report. – No later than January 1, 2025, and annually thereafter for 12
2128	2131		four additional years, the Department shall report to the Joint Legislative Education Oversight 13
2129	2132		Committee and the Fiscal Research Division at least the following information: 14
2130	2133		…." 15
2131	2134		SECTION 5.5.(b) Appropriation. – There is appropriated from the General Fund to 16
2132	2135		the Department of Public Instruction the sum of one hundred two million dollars ($102,000,000) 17
2133	2136		in recurring funds for the 2025-2026 fiscal year to implement the provisions of this section. 18
2134	2137		19
2135	2138		PART VI. SYSTEM OF EARLY EDUCATION THAT PROVIDES ACCESS TO 20
2136	2139		HIGH-QUALITY PREKINDERGARTEN AND OTHER EARLY CHILDHOOD 21
2137	2140		LEARNING OPPORTUNITIES 22
2138	2141		23
2139	2142		EXPAND NC PREKINDERGARTEN (NC PRE -K) PROGRAM 24
2140	2143		SECTION 6.1.(a) Appropriation. – There is appropriated from the General Fund to 25
2141	2144		the Department of Health and Human Services, Division of Child Development and Early 26
2142	2145		Education, the sum of two hundred fifty-eight million three hundred thousand dollars 27
2143	2146		($258,300,000) in recurring funds for the 2025-2026 fiscal year and the sum of three hundred 28
2144	2147		thirty-three million four hundred thousand dollars ($333,400,000) in recurring funds for the 29
2145	2148		2026-2027 fiscal year for the purpose of expanding the NC Prekindergarten (NC Pre-K) program 30
2146	2149		for eligible children who are 4 years of age by allocating funds for each of the following: 31
2147	2150		(1) Incrementally increase State funding for each NC Pre-K slot with the goal of 32
2148	2151		paying one hundred percent (100%) of the actual cost by the end of the 33
2149	2152		2027-2028 fiscal year. 34
2150	2153		(2) Gradually increase the number of eligible children able to be served in the NC 35
2151	2154		Pre-K program with the goal of reaching at least seventy-five percent (75%) 36
2152	2155		of eligible children in each county by the end of the 2027-2028 fiscal year. 37
2153	2156		(3) Raise the rate for the county administrator to provide oversight, monitoring, 38
2154	2157		enrollment, and support to ten percent (10%) by the end of the 2025-2026 39
2155	2158		fiscal year. 40
2156	2159		(4) Phasing-in extension of the NC Pre-K program year from 10 to 12 months in 41
2157	2160		accordance with subsection (b) of this section. 42
2158	2161		SECTION 6.1.(b) Extend NC Pre-K Program Year to 12 Months. – Section 9D.1 of 43
2159	2162		S.L. 2023-134 is amended by adding a new subsection to read: 44
2160	2163		"SECTION 9D.1.(h) Extend NC Pre-K Program Year. – It is the intent of the General 45
2161	2164		Assembly to gradually extend the NC Pre-K program to cover 12 months of the program year 46
2162	2165		with full implementation statewide by the end of the 2027-2028 fiscal year. To that end, the 47
2163	2166		Division of Child Development and Early Education (Division) shall develop and implement a 48
2164	2167		plan that (i) includes establishing a pilot program to extend the NC Pre-K program year from 10 49
2165	2168		to 12 months and (ii) is based on county capacity to implement the extension. The Division shall 50
2166	2169		select up to three counties to participate in the pilot program that includes, at a minimum, 51 General Assembly Of North Carolina Session 2025
2167		-	~~House Bill 420-First Edition~~ Page 43
	2170	+	DRH30188-MTa-22 Page 43
2168	2171		representation from a private classroom setting, a public classroom setting that operates on a 1
2169	2172		year-round basis, and an underserved area. The Division shall submit a report to the Joint 2
2170	2173		Legislative Oversight Committee on Health and Human Services and the Fiscal Research 3
2171	2174		Division by December 31, 2026. The report shall include each of the following: 4
2172	2175		(1) The number of students participating in the pilot program. 5
2173	2176		(2) The number of students participating who are in an NC Pre-K classroom in a 6
2174	2177		child care center versus those in an NC Pre-K classroom in a public school. 7
2175	2178		(3) The number of schools and child care centers participating in the program, 8
2176	2179		including identifying those that are private and those that are public. 9
2177	2180		(4) The number of NC Pre-K classrooms participating in the program. 10
2178	2181		(5) The additional costs needed to implement the program. 11
2179	2182		(6) The challenges and successes of implementing the program in both NC Pre-K 12
2180	2183		classrooms in child care centers and NC Pre-K classrooms in public schools." 13
2181	2184		SECTION 6.1.(c) There is appropriated from the General Fund to the Department 14
2182	2185		of Health and Human Services, Division of Child Development and Early Education (Division), 15
2183	2186		the sum of three hundred thousand dollars ($300,000) in recurring funds for each year of the 16
2184	2187		2025-2027 fiscal biennium to increase State-level NC Pre-K staffing to manage the planned 17
2185	2188		expansion of the NC Pre-K program, provide policy development and program oversight, ensure 18
2186	2189		program quality, and manage any new, required studies. 19
2187	2190		SECTION 6.1.(d) There is appropriated from the General Fund to the Department 20
2188	2191		of Health and Human Services, Division of Child Development and Early Education (Division), 21
2189	2192		the sum of thirty-two million three hundred thousand dollars ($32,300,000) in recurring funds 22
2190	2193		for the 2025-2026 fiscal year and the sum of forty-eight million four hundred thousand dollars 23
2191	2194		($48,400,000) in recurring funds for the 2026-2027 fiscal year to provide transportation to all 24
2192	2195		participants enrolled in the NC Pre-K program. 25
2193	2196		26
2194	2197		INCREASE HIGH -QUALITY EARLY LEARNING OPPORTUNITIES FOR 27
2195	2198		CHILDREN FROM BIRTH/INCREASE FUNDS FOR CHILD CARE SUBSIDY 28
2196	2199		SECTION 6.2.(a) There is appropriated from the General Fund to the Department 29
2197	2200		of Health and Human Services, Division of Child Development and Early Education (Division), 30
2198	2201		the sum of ten million dollars ($10,000,000) in recurring funds for each year of the 2025-2027 31
2199	2202		fiscal biennium to increase funds for the child care subsidy program and provide for program 32
2200	2203		improvements, including, but not limited to, increasing compensation for the child care 33
2201	2204		workforce and ensuring that eligible families receive assistance through the elimination of 34
2202	2205		waitlists. 35
2203	2206		SECTION 6.2.(b) There is appropriated from the General Fund to the Department 36
2204	2207		of Health and Human Services, Division of Child Development and Early Education (Division), 37
2205	2208		the sum of seventy-eight million seven hundred thousand dollars ($78,700,000) in recurring 38
2206	2209		funds for each year of the 2025-2027 fiscal biennium to expand the Family Connects universal 39
2207	2210		home visiting model to local agencies statewide that choose to implement the program for their 40
2208	2211		community through local health departments or local Smart Start partnerships. Family Connects 41
2209	2212		is an evidence-based model that provides one to three home visits from a registered nurse to all 42
2210	2213		families who have newborns and live in a defined service area. 43
2211	2214		SECTION 6.2.(c) There is appropriated from the General Fund to the Department 44
2212	2215		of Health and Human Services, Division of Child Development and Early Education (Division), 45
2213	2216		the sum of forty-three million nine hundred thousand dollars ($43,900,000) in recurring funds 46
2214	2217		for the 2025-2026 fiscal year and the sum of forty million dollars ($40,000,000) in recurring 47
2215	2218		funds for the 2026-2027 fiscal year to conduct a pilot program of a State model for high-quality 48
2216	2219		early learning programs for eligible children from birth to 3 years of age, for 1,000 children each 49
2217	2220		year, with the intent to expand the program to additional locations. The pilot program and any 50 General Assembly Of North Carolina Session 2025
2218		-	Page 44 ~~House Bill 420-First Edition~~
	2221	+	Page 44 DRH30188-MTa-22
2219	2222		subsequent expansion of the pilot program shall focus on high-poverty school districts across the 1
2220	2223		State. 2
2221	2224		3
2222	2225		EXPAND AND IMPROVE ACCESS TO INDIVIDUALIZED EARLY INTERVENTION 4
2223	2226		SERVICES FOR ELIGIBLE CHILDREN/NC INFANT -TODDLER PROGRAM 5
2224	2227		SECTION 6.3.(a) Funds for NC Infant-Toddler Program. – There is appropriated 6
2225	2228		from the General Fund to the Department of Health and Human Services, Division of Child and 7
2226	2229		Family Well-Being, Early Intervention Section, the sum of twenty million dollars ($20,000,000) 8
2227	2230		in recurring funds for the 2025-2026 fiscal year and the sum of twenty million dollars 9
2228	2231		($20,000,000) in recurring funds for the 2026-2027 fiscal year to provide funds for the North 10
2229	2232		Carolina Infant-Toddler Program, a program that provides support and services for families and 11
2230	2233		their children, from birth to 3 years of age, who have special needs. These funds shall be used to 12
2231	2234		take steps toward doing the following: 13
2232	2235		(1) Increasing State and local staffing in the provision of services to families with 14
2233	2236		infants and toddlers with developmental delays and established medical 15
2234	2237		conditions who are eligible for the NC Infant-Toddler Program. 16
2235	2238		(2) Expanding funding for interpreter services. 17
2236	2239		(3) Establishing a centralized provider network system. 18
2237	2240		(4) Providing professional development focused on early childhood mental 19
2238	2241		health. 20
2239	2242		(5) Addressing salary inequities affecting provider retention and recruitment. 21
2240	2243		SECTION 6.3.(b) Feasibility Study & Infrastructure Readiness 22
2241	2244		Assessment/Expansion of NC Infant-Toddler Program. – There is appropriated from the General 23
2242	2245		Fund to the Department of Health and Human Services, Division of Child and Family 24
2243	2246		Well-Being, Early Intervention Section, the sum of two hundred fifty thousand dollars 25
2244	2247		($250,000) in nonrecurring funds for the 2025-2026 fiscal year to be allocated as follows: 26
2245	2248		(1) One hundred fifty thousand dollars ($150,000) to conduct a feasibility study 27
2246	2249		to examine eligibility criteria and cost implications for expansion of the NC 28
2247	2250		Infant-Toddler Program. 29
2248	2251		(2) One hundred thousand dollars ($100,000) to conduct a system and 30
2249	2252		infrastructure readiness assessment to determine areas of need and system 31
2250	2253		challenges that need to be addressed before expanding the NC Infant-Toddler 32
2251	2254		Program. The Division of Public Health shall solicit public input and feedback 33
2252	2255		on the plan developed pursuant to this subdivision. 34
2253	2256		SECTION 6.3.(c) Scale Up Early Intervention Services. – There is appropriated 35
2254	2257		from the General Fund to the Department of Health and Human Services, Division of Child and 36
2255	2258		Family Well-Being, Early Intervention Section, the sum of one hundred eight million three 37
2256	2259		hundred thousand dollars ($108,300,000) in recurring funds for the 2025-2026 fiscal year and 38
2257	2260		the sum of one hundred sixty-two million five hundred thousand dollars ($162,500,000) in 39
2258	2261		recurring funds for the 2026-2027 fiscal year to provide high-quality early intervention services 40
2259	2262		and supports for up to an additional 30,000 children from birth to 3 years of age, who meet 41
2260	2263		expanded eligibility criteria for the Infant and Toddler Program implemented as a result of the 42
2261	2264		feasibility study conducted pursuant to subdivision (b)(1) of this section. The Early Intervention 43
2262	2265		Section may use up to five percent (5%) of these allocated funds to conduct a public awareness 44
2263	2266		campaign regarding expansion of eligibility for the NC Infant and Toddler Program, to increase 45
2264	2267		efforts to identify children eligible to receive services under this expanded program, and to create 46
2265	2268		partnerships with family support agencies. 47
2266	2269		48
2267	2270		INCREASE SMART START FUNDING 49
2268	2271		SECTION 6.4. There is appropriated from the General Fund to the Department of 50
2269	2272		Health and Human Services, Division of Child Development and Early Education, the sum of 51 General Assembly Of North Carolina Session 2025
2270		-	~~House Bill 420-First Edition~~ Page 45
	2273	+	DRH30188-MTa-22 Page 45
2271	2274		three hundred seventeen million two hundred thousand dollars ($317,200,000) in recurring funds 1
2272	2275		for the 2025-2026 fiscal year and the sum of four hundred nineteen million six hundred thousand 2
2273	2276		dollars ($419,600,000) in recurring funds for the 2026-2027 fiscal year to gradually increase 3
2274	2277		funding for the North Carolina Partnership for Children, Inc., (Smart Start), with the goal of fully 4
2275	2278		funding Smart Start by the end of the 2027-2028 fiscal year. Funds allocated to the North 5
2276	2279		Carolina Partnership for Children, Inc., pursuant to this section, shall be distributed to Smart Start 6
2277	2280		local partnerships to improve statewide early child system infrastructure and support a cohesive 7
2278	2281		continuum of services for families and children from birth through 5 years of age. 8
2279	2282		9
2280	2283		INCREASE EARLY CHILDHOOD EDUCATOR WORKFORCE 10
2281	2284		SECTION 6.5.(a) Funds for WAGE$ and AWARD$ Programs. – There is 11
2282	2285		appropriated from the General Fund to the Department of Health and Human Services, Division 12
2283	2286		of Child Development and Early Education, the sum of thirty million five hundred thousand 13
2284	2287		dollars ($30,500,000) in recurring funds for the 2025-2026 fiscal year and the sum of thirty-two 14
2285	2288		million dollars ($32,000,000) in recurring funds for the 2026-2027 fiscal year to increase funding 15
2286	2289		for and expand participation statewide in the Child Care WAGE$ program and the Infant-Toddler 16
2287	2290		Educator AWARD$ program, both of which provide salary supplements for early childhood 17
2288	2291		educators. 18
2289	2292		SECTION 6.5.(b) Recruitment Strategies and Professional Development. – There is 19
2290	2293		appropriated from the General Fund to the Department of Health and Human Services, Division 20
2291	2294		of Child Development and Early Education, the sum of five million eight hundred thousand 21
2292	2295		dollars ($5,800,000) in recurring funds for the 2025-2026 fiscal year and the sum of seven million 22
2293	2296		three hundred thousand dollars ($7,300,000) in recurring funds for the 2026-2027 fiscal year to 23
2294	2297		implement strategies to recruit early childhood educators and provide ongoing professional 24
2295	2298		development, including coaching, technical assistance, assistance with degree attainment, and 25
2296	2299		licensure support. 26
2297	2300		27
2298	2301		FACILITATE RELIABLE ACCESS TO HIGH -QUALITY DATA SUPPORTING 28
2299	2302		EARLY CHILDHOOD EDUCATION 29
2300	2303		SECTION 6.6.(a) Real-Time Workforce Data System. – There is appropriated from 30
2301	2304		the General Fund to the Department of Health and Human Services, Division of Child 31
2302	2305		Development and Early Education, the sum of five hundred thousand dollars ($500,000) in 32
2303	2306		recurring funds for each year of the 2025-2027 fiscal biennium to develop and implement a 33
2304	2307		real-time workforce data system that supports building a pipeline of early childhood educators. 34
2305	2308		SECTION 6.6.(b) Expand and Improve Current Early Childhood Data Systems. – 35
2306	2309		There is appropriated from the General Fund to the Department of Health and Human Services, 36
2307	2310		Division of Child Development and Early Education (Division), the sum of five hundred 37
2308	2311		thousand dollars ($500,000) in recurring funds for each year of the 2025-2027 fiscal biennium to 38
2309	2312		expand and improve the North Carolina Early Childhood Integrated Data System (NC ECIDS) 39
2310	2313		and the North Carolina Early Childhood Action plan data dashboards to track child outcomes and 40
2311	2314		provide access to State data for State and local users and researchers with the goal of connecting 41
2312	2315		this data to the NC Longitudinal Data System (NCLDS). 42
2313	2316		SECTION 6.6.(c) Build Local Capacity/Early Childhood Data. – There is 43
2314	2317		appropriated from the General Fund to the Department of Health and Human Services 44
2315	2318		(Department), Division of Child Development and Early Education (Division), the sum of one 45
2316	2319		hundred fifty thousand dollars ($150,000) in recurring funds for each year of the 2025-2027 fiscal 46
2317	2320		biennium to collaborate with the Divisions of Social Services and Public Health, as appropriate, 47
2318	2321		in developing and implementing a plan to provide technical assistance to build local capacity to 48
2319	2322		use quality early childhood data across child health, child welfare, and early childhood education 49
2320	2323		for local planning. 50 General Assembly Of North Carolina Session 2025
2321		-	Page 46 ~~House Bill 420-First Edition~~
	2324	+	Page 46 DRH30188-MTa-22
2322	2325		SECTION 6.6.(d) Real-Time Data Collection/Children Eligible for Early Childhood 1
2323	2326		Services. – There is appropriated from the General Fund to the Department of Health and Human 2
2324	2327		Services, Division of Child Development and Early Education, the sum of five hundred thousand 3
2325	2328		dollars ($500,000) in nonrecurring funds for the 2025-2026 fiscal year and the sum of two 4
2326	2329		hundred fifty thousand dollars ($250,000) in recurring funds for the 2026-2027 fiscal year to 5
2327	2330		develop and implement a real-time data collection and sharing process to identify children 6
2328	2331		eligible for early childhood programs, including the North Carolina Prekindergarten (NC Pre-K) 7
2329	2332		program and Early Intervention program, that allows for each of the following: 8
2330	2333		(1) The disaggregation along multiple variables, such as race, ethnicity, and 9
2331	2334		geography. 10
2332	2335		(2) The identification of the children most vulnerable to build a more equitable 11
2333	2336		early learning system. 12
2334	2337		13
2335	2338		PREKINDERGARTEN TO KINDERGARTEN TRANSITIONS 14
2336	2339		SECTION 6.7. There is appropriated from the General Fund to the Department of 15
2337	2340		Health and Human Services, Division of Child Development and Early Education (Division), the 16
2338	2341		sum of five million dollars ($5,000,000) in recurring funds for each year of the 2025-2027 fiscal 17
2339	2342		biennium to incrementally scale up the Pre-K to K Transitions program to serve all districts. 18
2340	2343		19
2341	2344		COLLABORATIVE FAMILY ENGAGEMENT PLANS 20
2342	2345		SECTION 6.8. There is appropriated from the General Fund to the Department of 21
2343	2346		Health and Human Services, Division of Child Development and Early Education (Division), the 22
2344	2347		sum of three hundred twenty thousand dollars ($320,000) in recurring funds for each year of the 23
2345	2348		2025-2027 fiscal biennium to provide ongoing support and technical assistance for establishing 24
2346	2349		local collaborative family engagement plans for birth through third grade. 25
2347	2350		26
2348	2351		REQUIRE LICENSURE FOR NC PRE -K LEAD TEACHERS 27
2349	2352		SECTION 6.9. By July 1, 2026, the Department of Health and Human Services, 28
2350	2353		Division of Child Development and Early Education, shall implement a policy to require that all 29
2351	2354		NC Prekindergarten (NC Pre-K) lead teachers hold an appropriate State teaching license as 30
2352	2355		specified by NC Pre-K policy. The policy shall also require that NC Pre-K lead teachers be paid 31
2353	2356		according to the State public school salary schedule by the 2026-2027 fiscal year. 32
2354	2357		33
2355	2358		PART VII. ALIGNMENT OF HIGH SCHOOL TO POSTSECONDARY AND CAREER 34
2356	2359		EXPECTATIONS FOR ALL STUDENTS 35
2357	2360		36
2358	2361		REVISE NCVPS FUNDING 37
2359	2362		SECTION 7.1. There is appropriated from the General Fund to the Department of 38
2360	2363		Public Instruction the sum of thirteen million three hundred thousand dollars ($13,300,000) in 39
2361	2364		nonrecurring funds for the 2025-2026 fiscal year and sixteen million seven hundred thousand 40
2362	2365		dollars ($16,700,000) in nonrecurring funds for the 2026-2027 fiscal year to offset the costs for 41
2363	2366		local school administrative units and charter schools to remove barriers to student participation 42
2364	2367		in North Carolina Virtual Public Schools. The funds shall be allocated with a priority to cover 43
2365	2368		the costs of courses for students enrolled in public schools located in low-wealth counties. 44
2366	2369		45
2367	2370		SCHOOL CALENDAR FLEXIBILITY/CC CALENDAR 46
2368	2371		SECTION 7.2.(a) G.S. 115C-84.2(d) reads as rewritten: 47
2369	2372		"(d) Opening and Closing Dates. – Local boards of education shall determine the dates of 48
2370	2373		opening and closing the public schools under subdivision (a)(1) of this section. Except for 49
2371	2374		year-round schools, the opening date for students shall be no earlier than the Monday closest to 50
2372	2375		August 26, and the closing date for students shall be no later than the Friday closest to June 11. 51 General Assembly Of North Carolina Session 2025
2373		-	~~House Bill 420-First Edition~~ Page 47
	2376	+	DRH30188-MTa-22 Page 47
2374	2377		On a showing of good cause, the State Board of Education may waive the requirement that the 1
2375	2378		opening date for students be no earlier than the Monday closest to August 26 and may allow the 2
2376	2379		local board of education to set an opening date no earlier than the Monday closest to August 19, 3
2377	2380		to the extent that school calendars are able to provide sufficient days to accommodate anticipated 4
2378	2381		makeup days due to school closings. A local board may revise the scheduled closing date if 5
2379	2382		necessary in order to comply with the minimum requirements for instructional days or 6
2380	2383		instructional time. For purposes of this subsection, the term "good cause" means that schools in 7
2381	2384		any local school administrative unit in a county have been closed eight days per year during any 8
2382	2385		four of the last 10 years because of severe weather conditions, energy shortages, power failures, 9
2383	2386		or other emergency situations. 10
2384	2387		The required opening and closing dates under this subsection shall not apply to any school 11
2385	2388		that a local board designated as having a modified calendar for the 2003-2004 school year or to 12
2386	2389		any school that was part of a planned program in the 2003-2004 school year for a system of 13
2387	2390		modified calendar schools, so long as the school operates under a modified calendar. 14
2388	2391		Notwithstanding the required opening and closing dates under this subsection, a local board 15
2389	2392		of education may align the calendar of schools in the local school administrative unit with the 16
2390	2393		calendar of a community college serving the city or county in which the unit is located." 17
2391	2394		SECTION 7.2.(b) This section is effective when it becomes law and applies 18
2392	2395		beginning with the 2025-2026 school year. 19
2393	2396		20
2394	2397		COLLEGE ADVISING CORPS/COLLEGE ADVISERS IN THE PUBLIC SCHOOLS 21
2395	2398		SECTION 7.3.(a) Purpose of the College Advising Corps Program. – From the funds 22
2396	2399		appropriated in subsection (b) of this section, the Board of Governors of The University of North 23
2397	2400		Carolina shall make funds available to the National College Advising Corps, Inc., (CAC) to 24
2398	2401		support an expansion of the placement of college advisers in North Carolina public schools 25
2399	2402		through their program over a three-year period. CAC is a college access nonprofit organization 26
2400	2403		with the mission to increase the number of underrepresented, low-income, or first-generation 27
2401	2404		postsecondary degree or certificate students entering and completing their postsecondary 28
2402	2405		education at community colleges and universities. In furthering this mission, CAC operates an 29
2403	2406		innovative model of partnering with schools, communities, families, and postsecondary 30
2404	2407		institutions, including providing for a two-year service opportunity to recent college graduates 31
2405	2408		as near-peer college advisers working full time in the public schools, with an emphasis on 32
2406	2409		engaging college advisers who have similar backgrounds to the students the program seeks to 33
2407	2410		serve. Near-peer college advisers perform various services for those students that are key 34
2408	2411		components to the proven success of the program, including (i) attending postsecondary campus 35
2409	2412		visits, fairs, and workshops with students, (ii) assisting with registering for college entrance 36
2410	2413		exams, (iii) assisting with Free Application for Federal Student Aid (FAFSA) registrations and 37
2411	2414		completions, (iv) identifying available scholarships, (v) assisting with postsecondary 38
2412	2415		applications, and (vi) engaging with parents. 39
2413	2416		SECTION 7.3.(b) Funds for the Program. – Due to the effectiveness of the 40
2414	2417		innovative model operated by CAC and the potential for significantly impacting the highest-need 41
2415	2418		students as described in subsection (a) of this section, the sum of three million dollars 42
2416	2419		($3,000,000) in recurring funds is appropriated from the General Fund to the Board of Governors 43
2417	2420		of The University of North Carolina for the 2025-2026 fiscal year to be provided to CAC for the 44
2418	2421		purpose of expanding the placement of college advisers in accordance with the requirements of 45
2419	2422		this section. 46
2420	2423		SECTION 7.3.(c) Use of Funds. – CAC shall focus the first two years of the 47
2421	2424		expansion of its program using the funds provided to it under this section by placing college 48
2422	2425		advisers in counties designated as tier one and tier two. For the third year of the expansion, CAC 49
2423	2426		shall use the funds provided to it to place college advisers in the remaining counties designated 50
2424	2427		as tier three in order to achieve placement of college advisers in all 100 counties of the State. In 51 General Assembly Of North Carolina Session 2025
2425		-	Page 48 ~~House Bill 420-First Edition~~
	2428	+	Page 48 DRH30188-MTa-22
2426	2429		addition, CAC shall select at least three additional postsecondary institutions to partner with in 1
2427	2430		order to increase the number of recent graduates working as near-peer college advisers to meet 2
2428	2431		the needs of the program expansion. Once CAC has reached the goal of placement of college 3
2429	2432		advisers in 100 counties, the funds provided to it for the program shall be used to continue the 4
2430	2433		mission of the program to increase access for North Carolina public school students to 5
2431	2434		postsecondary degree or certificate attainment at community colleges and universities. 6
2432	2435		SECTION 7.3.(d) Reporting Requirements. – CAC shall submit a report by June 1 7
2433	2436		of each year in which CAC spends State funds made available to it pursuant to this section to the 8
2434	2437		Joint Legislative Education Oversight Committee and the Fiscal Research Division on the 9
2435	2438		progress of expanding the placement of college advisers, data on the effectiveness of the program 10
2436	2439		in increasing access for students to postsecondary education, and the use of State funds. 11
2437	2440		12
2438	2441		CAREER DEVELOPMENT COORDINATORS 13
2439	2442		SECTION 7.4. There is appropriated from the General Fund to the Department of 14
2440	2443		Public Instruction the sum of one hundred thousand dollars ($100,000) in recurring funds in the 15
2441	2444		2025-2026 fiscal year for a Career and Postsecondary Planning Director position in the 16
2442	2445		Department's career and technical education division to focus on career planning in grades five 17
2443	2446		through 12. There is also appropriated the sum of sixty-eight million dollars ($68,000,000) in 18
2444	2447		recurring funds for the 2025-2026 fiscal year and eighty-seven million dollars ($87,000,000) in 19
2445	2448		recurring funds for the 2026-2027 fiscal year to increase the number of school-based career 20
2446	2449		development coordinators for grades six through 12. 21
2447	2450		22
2448	2451		FUNDS TO REMOVE BARRIERS FOR ECONOMICALLY DISADVANTAGED 23
2449	2452		STUDENTS TO PARTICIPATE IN THE CAREER AND COLLEGE PROMISE 24
2450	2453		TRANSFER PATHWAY PROGRAM 25
2451	2454		SECTION 7.5. There is appropriated from the General Fund to the Department of 26
2452	2455		Public Instruction the sum of five million dollars ($5,000,000) in recurring funds for the 27
2453	2456		2025-2026 fiscal year to fund additional costs for all economically disadvantaged students 28
2454	2457		enrolled in the Career and College Promise Transfer Pathway Program in each year, including at 29
2455	2458		least the full costs of textbooks, transportation, meals on college campuses, fees, and technology. 30
2456	2459		If these funds are insufficient, the Department shall use additional unspent funds in the State 31
2457	2460		Public School Fund to fulfill this purpose. 32
2458	2461		33
2459	2462		PART VIII. MISCELLANEOUS 34
2460	2463		35
2461	2464		STATE BUDGET ACT APPLIES 36
2462	2465		SECTION 8.1. The provisions of the State Budget Act, Chapter 143C of the General 37
2463	2466		Statutes, are reenacted and shall remain in full force and effect and are incorporated in this act 38
2464	2467		by reference. 39
2465	2468		40
2466	2469		EFFECT OF HEADINGS 41
2467	2470		SECTION 8.2. The headings to the Parts, subparts, and sections of this act are a 42
2468	2471		convenience to the reader and are for reference only. The headings do not expand, limit, or define 43
2469	2472		the text of this act, except for effective dates referring to a Part or subpart. 44
2470	2473		45
2471	2474		SEVERABILITY CLAUSE 46
2472	2475		SECTION 8.3. If any section or provision of this act is declared unconstitutional or 47
2473	2476		invalid by the courts, it does not affect the validity of this act as a whole or any part other than 48
2474	2477		the part so declared to be unconstitutional or invalid. 49
2475	2478		50
2476	2479		EFFECTIVE DATE 51 General Assembly Of North Carolina Session 2025
2477		-	~~House Bill 420-First Edition~~ Page 49
	2480	+	DRH30188-MTa-22 Page 49
2478	2481		SECTION 8.4. Except as otherwise provided, this act becomes effective July 1, 1
2479	2482		2025. 2