The 2017 state budget (S.L. 2017-57) creates the Needs-Based Public School Capital Fund, a $30 million fund designed to assist school districts in lower-wealth counties with their critical public school building capital needs. Counties designated as tier one by the NC Department of Commerce have priority for the funding. (A list of counties and their tier designations can be accessed here.)
The law requires that the funds are capped at $15 million per project in tier one counties and $10 million per project in tier two counties, as well as a local match of $1 for every $3 in grant funds. The fund is restricted to new capital projects, and cannot be used for real property acquisition or for operational lease agreements, unless the lease agreement was executed on or before June 30, 2017. Furthermore, the county cannot have received more than $8.75 million from the Public School Building Capital Fund from fiscal years 2012-13 to 2016-17.
The funds provided by revenue from the state lottery will be a minimum of $30 million this fiscal year and $75 million in the 2018-19 fiscal year. Under the law, awards will be based on the following criteria:
- Counties designated as development tier 1 areas;
- Counties with greater need and less ability to generate sales tax and property tax revenue;
- Counties with a high debt-to-tax revenue ratio;
- The extent to which a project will address critical deficiencies in adequately serving the current and future student population.
Applications are available online at www.schoolclearinghouse.org and are due to the Department of Public Instruction by Oct. 11, 2017. Awards will be announced by Nov. 1, 2017.
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