The Week In Review and Looking Forward into Next Week
 The 2018-19 expansion budget was released by the General Assembly Monday night. In addition to any policy provisions included, this budget is focused on changes to the 2017-2019 budget passed last summer. The expansion budget came in the form of a conference report for SB 99. Like all conference reports, the budget bill was not eligible for amendment in Committee, nor were there any amendments in the House or Senate chamber. After going through relevant committees from both the House and Senate this week, the budget bill passed all readings by both chambers. The likely next step is for the bill to be sent to the Governor, at which time he can either sign, veto or let the bill become law within 10 days without his signature.
While the budget had the spotlight this week in Raleigh, other relevant bills were filed or made their way through committees.
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Budget Summary
Teacher Compensation (Local supplements are in addition to numbers reflected below)
- Average teacher salary will increase by 6.5% total in the biennium budget, including the additional increases in the expansion budget.
- $11,831,640 in additional recurring funds for teacher salary increases.
- 25+ year teachers will be paid $5,200 monthly rather than $5,130 monthly.
- Veteran teachers who do not receive a salary increase for the 2018-2019 year will receive the Veteran Teacher Bonus if employed as of October 1, 2018.
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Minimum score on Cambridge AICE course examinations is now a “C” for the advanced course teacher bonus of $50 dollars per student.
- The fourth and fifth grade reading teacher, as well as the fourth to eighth grade math teacher performance bonuses will be $2,000 for high performing teachers. $22,900,000 of recurring funds were appropriated to make this bonus recurring.
Principal Compensation
- $12M recurring additional funding for principal salary increases.
- Principal Hold Harmless extended through end of biennium budget (June 30, 2019)
- Due to ADM and school growth scores being unknown at the start of a school year, the following changes are made. Firstly, ADM used to calculate principal pay for the 2018-19 school year will be: During July 1, 2018-Dec 31, 2018 will be based on ADM for 2017-18 school year, and during Jan 1, 2019-June 30, 2019 will be based on ADM for the 2018-19 school year. School growth scores for the 2018-19 school year principal pay will be based on 2014-15, 2015-16 and 2016-17 school years during July 1, 2018-Dec 31, 2018, and based on 2015-16, 2016-17 and 2017-18 school year during Jan 1, 2019-June 30, 2019.
- The Principal bonuses were combined into a single bonus and apply to principals who supervised a school that was in the top 50% of school growth in the state. Principals who supervised a D or F school qualify for a bonus twice the amount listed in the bonus schedule
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Compensation of Other PublicSchool Personnel
- Non-Certified Personnel working in public schools under permanent 12-month full-time contracts with salaries supported by state funds receive a 2% raise.
- Other Non-Certified Personnel with salaries supported by state funds receive a prorated raise based on the portion of time they work out of 12 months, including permanent full-time employees on a contract for fewer than 12 months; permanent part-time employees; temporary and permanent hourly employees.
- $4,387,650 will be allocated to local boards of education to increase the pay for bus drivers.
- The pay of both school superintendents and school administrators are adjusted to reflect the schedules below.
Budget Items and Provisions
- Creates a School Safety Grant program that the Superintendent of Public Instruction will oversee. This includes $12M for School Resource Officer Grants plus $2 to $1 state to private funding; $2M in Grants for students in crisis; $3M for training to increase safety; $3M for purchasing safety equipment; $10M for Mental Health Support personnel, such as - nurses, psychologists, social workers; and $100,000 for administration costs.
- $5M allocated to the Department of Public Instruction to expand the anonymous tip line to all schools statewide. The governing bodies of all schools serving 6th grade and above are required to develop anonymous tip lines. It also requires that students be educated on how to use these tip lines.
- Provides an additional $11.9M non-recurring for textbooks and digital resources.
- $200,000 is allocated to the non-profit, DonorsChoose, Inc.. These funds will then be used for classroom supplies within the Charlotte-Mecklenburg school district.
- Increases the scope of the current teacher assistant tuition reimbursement program. This allows students pursuing teaching degrees to receive reimbursement if working as a teacher assistant. The budget increases the maximum amount from $4,500 to $4,600 per academic year for up to four years.
- The NC Teaching Fellows program will be able to spend no more than 4% of their budget on administrative costs. Also, the fund for the NC Teaching Fellows Program shall contribute $600,000 to the New Teacher Support Program with up to $2,000 for fellows in low performing schools and $1,000 for all other fellows.
- Creates a professional development program for up to 60 schools provided by Schools That Lead Inc., and provides for a review of the effectiveness of the program.
- Extends the current advanced teaching roles pilot for another 5 years. This program examines the relationships between teacher performance or professional growth, and teacher salaries in particular LEAs. The total appropriation for the program for FY 2018-19 is $1.7M.
- NC Principal Fellows would establish a trust fund to support the program. This budget would require that no more than $800,000 each year be used for administrative costs.
- The Principal Preparation Grant Program will be established. This program will provide grants aimed at improving Principal Preparation Programs.
- The specific small county school system supplemental funding allotments are adjusted such that the maximum ADM to receive this funding increases from 3,200 to 3,300.
- Expands supplemental funding made available to counties that contain an armed services base to include any counties that have an average daily membership (ADM) above 17,000 rather than the previous 23,000.
- The children of military personnel who are transferred to North Carolina will be allowed to enroll in a North Carolina school remotely, prior to establishing residence in the state.
- Increases funding per child with disabilities from $4,125.17 to $4,442.32.
- K-12 Special Education Scholarships for Children with Disabilities would become available to foster children and recently adopted children, and it also outlines the methods for establishment of eligibility for this scholarship.
- Increases funding per intellectually gifted child from $1,314.56 to $1339.14.
- Replaces $2.4M of recurring funds for the Digital Learning Plan with non-recurring funds.
- Prevents LEAs from transferring funds out of the driver education allotment category.
- $200,000 of the funds appropriated to the Department of Public Instruction are committed to developing the hospitality workforce through Career and Technical Education. The Education Foundation will match state funds for this 1:1.
- The Department of Public Instruction shall have a full-time director of the statewide driver education program. Also, if LEAs fail to report data on driver education programs, the Department of Public Instruction may withhold up to 5% of state funds allocated for drivers education programs.
- Delays implementation by one year of the college and career ready program that provides remedial language arts and math courses to students.
- DPI will be required to report on the Charter School Transportation Grant Program created in the 2017 Long Session budget. These funds were not reallocated for the 2018-19 session.
- Extends virtual charter pilot schools program for an additional 4 years.
- Public schools, including Charters, may request appropriations directly from cities.
- The State Board of Education would be required to take votes by roll call, and keep a record of votes in the minutes from State Board meetings.
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Following an audit and budget suggestions, The Department of Public Instruction will have increased flexibility to pursue some measures outside of the recommendations of the audit in order to close budget gaps. The department will be able to use $3M for contract renegotiations or severance packages.
- Students enrolled in Edgecombe County Schools will be able to attend a residential science, technology, engineering and math program that targets underserved students. Originally this program was only open to students in Halifax County.
- The Joint Legislative Education Oversight Committee (JLEOC) will study current statute related to regional schools and bar any participating units from withdrawing from a regional school unless the General Assembly creates a withdrawal process after the JLEOC review.
- Allows the Innovative School District to act as an innovative school operator of schools within the district, in the place of an independent operator.
- The reporting of data under the Read to Achieve program will be expanded to include more information, such as licensure area and experience level of teachers.
- Allows UNC Lab Schools to give enrollment priority to the sibling of an enrolled student who attended the laboratory school in the prior school year, or siblings of students eligible to attend the Lab School.
- The Joint Legislative Task Force on Education Finance Reform will now make recommendations during the 2019 long session.
Relevant Bills with Action
HB 934 Threat Assessment Teams/Peer to Peer Counsels
This bill, as summarized in a previous update, passed through the House Education K-12 Committee this week where changes were made. The new bill:
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Removes a change to the statutes on the duties of school counselors found in the original bill
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Removes appropriations for grants pertaining to peer-to-peer counseling and support programs
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Adds criminal records checks for members of Threat Assessment Teams
HB 934 was passed by the House Education (K-12) Committee this week, and will next be heard in House Appropriations.
HB 938: Various School Safety Changes
This bill, as summarized in a previous update, was replaced by a Committee Substitute this week in the House Education K-12 Committee. The new version of the bill has been placed on the House Calendar for today and expands upon the original bill, adding:
- A requirement that each public school building undergo annual facility vulnerability assessments
- A requirement that each local school report annually on school resource officers to the Center for Safer Schools, which would be required to report to the Joint Legislative Education Oversight Committee
- A definition of “school resource officer”
- School resource officer training requirements
- A requirement that innovative schools, the Governor Morehead School for the Blind, Schools for the Deaf, School of Science and Mathematics, and UNC School of the Arts high school comply with school safety requirements
HB 982/SB 760: IDD Data Sharing/Longitudinal Data System
Summarized in a previous update, this bill was passed by the House Committee on Health this week and will next be heard in the House Education (Universities) Committee.
HB 984/SB 761: Oversight IDD Employment/Educ. Programs
Summarized in a previous update, this bill was passed by the House Committee on Health and will next head to the House Appropriations Committee.
HB 1026: State Employee Pay Raise/$2400
This bill would give eligible employees making less than $100,000 per year a $2,400 raise in the 2018-2019 fiscal year. Eligible employees under the bill include:
- Permanent full-time State officials and persons whose salaries are set in accordance with the State Human Resources Act.
- Permanent full-time State officials and persons in positions exempt from the State Human Resources Act.
- Permanent part-time State employees, on a pro rata basis. Temporary and permanent hourly State employees.
- Noncertified public school employees whose salaries are supported from State funds
- Eligible employees of schools operated by the Department of Health and Human Services, the Department of Public Safety, the State Board of Education, and employees of the School of Science and Mathematics of The University of North Carolina who are paid on the Teacher Salary Schedule
- Other employees as listed in the bill
The bill prorates the raises for temporary employees, part-time employees, and full-time employees on a contract for less than 10 months, and includes the appropriations necessary to implement the raises. The bill was filed this week and referred to the House Appropriations Committee.
HB 1031: Local Ed. Funding Dispute Process
HB 1031 would repeal the current statutory process for resolving funding disputes between local boards of education and county commissioners, replacing it with a new process and establishing a working group to study fund balances held by local boards of education.
Currently, local boards of education are required by statute to maintain three funds for varying purposes, two of which are made up in part, of appropriations made by county boards of commissioners. These include the local current expense fund and capital outlay fund. If a board of education believes an amount appropriated by the county to be insufficient in either or both of those funds, the board may start a resolution process, starting with a meeting presided over by a mediator. If that meeting is unsuccessful at producing a resolution on the matter, it is followed by a formal mediation process. If formal mediation is unsuccessful, a civil action may be filed by the local board, and the court enters judgement on the issue.
HB 1031 would replace that process with a default funding method which is used if the joint meeting and mediation process are both unsuccessful at producing a resolution. Under the default funding method:
- Years 1 and 2 after mediation unsuccessful: Require an appropriation of the amount the local board of education expended from the previous year’s appropriation, updated to take into account changes in the federal Employment Cost Index (ECI) and projected Average Daily Membership (ADM) changes for the upcoming year.
- Year 3 after mediation unsuccessful: Would also require an appropriation of the amount the local board of education expended from the previous year’s appropriation, updated for changes in ECI and projected ADM, but with 3% added to ECI.
- The above three year cycle would continue until an agreement is reached by the local board of education and board of county commissioners.
The bill filed this week was considered by the Joint Legislative Program Evaluation Committee after being recommended as part of a report of the Program Evaluation Division.
HB 1039: School Self-Defense Act
HB 1039 creates the School Facility Guardian program, which would allow volunteer faculty/staff in schools who possess a concealed handgun permit to carry their firearm on the campus of the school. The bill also prescribes certain requirements for the volunteer school faculty guardian, and would allow the governing body or entity of a school to opt out of the program. Filed this week, the bill was referred to the House Rules Committee
HB 1048: Require Equal Access to Advanced Classes
This bill would require any student achieving a five on the math end of grade test in grades 3-7 to be identified as academically or intellectually gifted (AIG). The bill would require that all programs and courses offered to AIG students who were identified as such through other procedures, be offered to students identified through the means prescribed in the bill. The bill would also give placement priority in courses to these students, over students who achieve below a level five on the math end-of-grade test or who score below the ninetieth percentile on the aptitude test used for identifying gifted students. It also requires that identified students not be removed or excluded from AIG programs unless the parent or guardian of the student provides written consent. The bill would also change funding for the AIG allotment to local school administrative units. The bill was filed this week and referred to the House Education (K-12) Committee. If passed through that committee, it will next head to the House Appropriations Committee.
SB 745: Fully Fund School Counselors & Psychologists
Summarized in a previous Update, this bill was referred to the Senate Rules Committee this week.
SB 756: School Security Act of 2018
SB 756, summarized in last week’s Update, was replaced by a Committee Substitute this week in the House Education K-12 Committee.
HB 954: Rockingham County School Board/Chair Term
Summarized in a previous update, this bill passed the Com On State and Local Government and the full House this week, and was referred to the Senate Rules Committee.
HB 1035: College of the Albemarle/Dare County
This bill, filed this week, gives flexibility to the College of the Albemarle to expend State funds on the construction of two facilities and renovation of a third facility located in Dare County.
HB 1023: Spouse Emp. & Loc. Sales Tax/Certain Counties
This bill permits spouses of Superintendents in Swain County or Jackson County to be employed by a local board of education and changes a local option sales tax for Swain County. The bill was filed this week.
HB 514: Permit Municipal Charter School/Certain Towns
This bill allows the Towns of Cornelius, Huntersville, Matthews, and Mint Hill to apply for and hold a charter for a charter school. The bill would allow these towns to act as the board for a charter school, or appoint a board to serve that purpose. It allows the board of directors for a municipal charter school to elect to become a participating employer in the Teachers’ and State Employees’ Retirement System and the State Health Plan for Teachers and State Employees.
Issues with the original version of the bill led to changes to the bill in Committee, which work in conjunction with Section 38.8 of the budget to alleviate some of the issues. That section of the budget would allow cities to use property tax revenues to supplement funding for elementary and secondary public education.
The bill passed the House in the Long Session, and started moving quickly through the Senate this week. On Wednesday, and the bill passed the Senate Committee on Pensions and Retirement and Aging. On Thursday, the bill passed its second of three readings in the Senate, and the third reading was scheduled for the Monday, June 4 session. If passed by the Senate on Monday, the bill will head to the House for approval of Senate changes.
SB 746: Expand Local Option Sales Tax for Education
SB 746 would allow Cabarrus County to institute a sales and use tax to be used solely for public education. The tax would require a referendum to be held in the county. Filed last week, the bill was referred to the Senate Rules Committee this week.
SB 765: No Class Rank Computation/Chapel Hill
This bill would exempt Chapel Hill-Carrboro City Schools from the requirement that class rank be recorded on the transcripts of high school students. The bill was filed this week and referred to the Senate Rules Committee.
HB 1046/SB 748 Psychology Interjdtl. Compact (PSYPACT).
HB 1051: Restore Master's Supplement for Teachers.
HB 1052: Fund SROs and Crisis Training
HB 1068: School Performance Improve't Study Commission
HB 1070/SB 737: Safer Schools, Healthier Kids Act
HB 1074: School Psychologist Compensation.
HB 1075: Restore Teaching to an Honored Profession.
HB 1079: Report Movies Shown During Instructional Time.
HB 1081: Transfer of School Support Personnel Funds.
SB 787: Small Farms to Healthier Schools Initiative
SB 790: School Nurses Reform
SB 795: Expand Extended Learn/Student Support Grants
 2018 Short Session link for bills impacting K-12 education.
2017 Long Session link for a complete list of bills impacting K-12 education including budget items.
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Monday, June 04, 2018
4:00 p.m.Select Committee on Elections (Senate) 1027/1128 LB | No Audio
Judicial Redistricting & Investment Act (HB 717)
7:00 p.m Session Convenes (Senate) Senate | Audio
Tuesday, June 05, 2018
10:00 a.m. Judiciary (Senate) 1027/1128 LB | No Audio
Adoption Law Changes (HB 776)
10:00 a.m:Education - K-12 (House) 643 LOB | Audio
National and State Mottos in Schools Act (HB 965)
Revise Cursive and Multiplication Report (HB 986)
Teachers/Isolated K-12 Schools (SB 15)
11:00 a.m.Transportation (House) 643 LOB | Audio
Build NC Bond Act. (HB 1010)
Airport Prop. Purchase/NCEPA Waiver (HB 1013)
DOT/DMV Legislative Requests (HB 1029)
Various Motor Vehicle Law Revisions (SB 411)
Improve Process/Sale of Unclaimed Vehicles (SB 412)
Wednesday, June 06, 2018
1:00 p.m.Judiciary I (House) 415 LOB | Audio
Enhance Prison Security (HB 969)
GSC Technical Corrections 2018 (HB 1025)
PED Lottery Recommendations (HB 1036)
Superior Court District 4 (HB 1037)
Healthy Mother & Child/Shackling Prohibition (HB 1038)
VIPER - Survey/Outreach/In-Kind Contributions (HB 1041)
1:00 p.m.: Judiciary II (House) 415 LOB | Audio
Rape Evidence Collection Kit Tracking Act (HB 945)
Local Law Enforcement/Citizens Academies (H960)
Required Training Police Telecommunicators (H961)
LRC HOA Dispute Resolution/PED Study (H1047)
1:00 p.m.:Judiciary III (House) 421 LOB | No Audio
Clarify Prevention/Emergency Management Act (H963)
Amend Sum Eject Service/Allow Process Server (H1040)
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