K-12 Education Legislative Update - Budget Details - Friday, June 28, 2019

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K12 Education Legislation Update

Vision: Every public school student will graduate ready for post-secondary education and work, prepared to be a globally engaged and productive citizen through access to needed resources and rigor.
Mission: The State Board of Education will use its constitutional authority to lead and uphold the system of public education in North Carolina that guarantees every student in this state an opportunity to receive a sound basic education.

June 28, 2019

The Week In Review and Looking Forward into Next Week


Budget Conference Report Vetoed by the Governor


After arduous negotiations, HB 966 Conference Committee members released HB 966 conference budget on Tuesday of this week. Conference reports require a yes or no vote without consideration of any amendments. The budget passed both chambers and was vetoed by the Governor earlier today.  From here, the General Assembly can attempt to override his veto or can begin negotiating a revised version of the budget. Leadership has indicated they plan to continue working to find a compromise solution.


During the budget presentations on the floor, education and budget chairs made several remarks about the education portion of the budget that, among other things, authorizes $1.5 billion for capital expenditures on K-12 schools to fund repairs, renovations, and new buildings on public education campuses across North Carolina.  “I’m pleased to tell you this education budget for North Carolina totals $14.2 billion,” Rep. Horn said “That’s 57% of our total budget and a near $500 million increase over the previous year.”  Rep. Lambeth commented that “North Carolina has passed 18 states in teacher pay rankings with the second highest teacher pay in the Southeast.”  Rep. Elmore further added “We have a focus on our veteran teachers in this budget and teacher recruitment bonuses for smaller counties.”  In the Governor’s press conference where he announced the veto, he said the proposed budget doesn’t go far enough to address teacher pay or expand Medicaid. The Governor’s budget requested a 9.1% total average increase for teacher pay over the biennium.


In addition to the efforts centered on the budget, crossover bills continue moving at a rapid pace through House and Senate committees, on to the floor of each chamber and to the Governor for his consideration.  Some of the high profile K-12 education bills that have been passed by both Chambers and presented to the Governor this week include SB 219 Modify Teacher Licensing Requirements and HB 924 Teacher Contract Changes which also includes language requiring the Economics and Personal Finance high school graduation requirement.


Numerous K-12 education bills are scheduled to be heard next week in the House and Senate committees and chambers. The education-related legislative calendar for next week can be found at the bottom of this newsletter.

Highlights of the State Budget 


HB 966: 2019 Appropriations Act 


The 2019 budget bill includes the following K-12 education related items:




  • Teachers and Instructional Support Compensation:  Additional $51M 2019-20 and $79M FY 2020-21
  • Average teacher salary: 2% increase in 2019-2020 and 3.9% in 2020-2021.
  • $500 bonuses in each year of the biennium for teachers and instructional support personnel with 25 or more years of experience.
  • Compensation Increase Reserve: School Counselors: $4M Recurring
  • Small County Recruitment Bonus: $2,000 to match local funds on a 1:1 basis to recruit teachers and instructional support personnel to LEAs receiving funding from the Small County allotment
  • Principal Compensation: $15M Recurring
  • Principal Recruitment Salary Supplements: to recruit up to 40 high-growth principals to low-performing schools.  The supplements are provided to selected school districts for a 3year period at $30,000 annually
  • Assistant Principal Compensation: $1.8M Recurring
  • Noncertified LEA Employees Compensation: 1% salary increase July 1, 2019 and additional 1% July 1, 2020
  • DPI Compensation: 2.5% salary increase July 1, 2019 and additional increase of 2.5% effective July 1, 2020
  • TSERS Retirement Compensation: 0.5% one-time cost-of-living supplements to retirees in FY 2019-20 & FY 2020-21


Budget 2019


Summary of Special Provisions:


Section 7.9 – Advanced Teaching Roles Changes (pgs. 36-40)

  • Codifies and makes permanent the advanced teaching roles program that was created in the 2016 budget as a three-year pilot (pgs. 18-21) and was extended to eight years in the 2018 budget (pgs. 21-22)
  • Adds that the loss of an advanced teaching role shall not be considered a demotion under G.S.115C, Article 22, Part 3
  • Maintains maximum pay increase at 30% of the State teacher salary schedule
  • Removes the 10 LEA maximum for program participation – SBE can choose up to five LEAs from each of the following categories: previous school year ADM of 4,000 or less, previous school year ADM between 4,001 and 20,000, and previous school year ADM of 20,001 of more
  • LEAs that are already participating in the pilot and apply under the new statute shall be approved as long as they meet the standards of the program
  • Allows class size flexibility and budget flexibility for advanced teaching roles schools
  • Approval of the program is for five years and may be renewed
  • Adds that grant funds are awarded to LEAs for a term of up to three years, without giving a LEA eligibility to receive funding for more than one term (LEAs can continue the program, but will not receive funds after three years)


Section 7.23 – 15-Point Scale for School Performance Grades (pg. 47)

  • Makes permanent the 15-point scale for school performance grades


Section 7.27 – Cooperative Innovative High Schools/Cap on Number of New Schools (pgs. 48-49)

  • Allows SBE to approve up to four applications each year for cooperative innovative high schools that request additional funds
  • If an LEA is not one of the four applicants awarded additional funds, it may apply for approval but will not receive any funding
  • There will be no reduction in funding for cooperative innovate high schools


Section 7.31 – Classroom Supplies to Teachers (pgs. 51-52)

  • Allots $150 for the purchase of classroom supplies through an electronic account to each eligible classroom teacher for the 2019-20 fiscal year no later than January 15, 2020
  • Allots $200 for the 2020-21 fiscal year as of August 31, 2020
  • The $15 million of appropriations is estimated to cover $145 of supplies for each teacher during each year of the biennium


Section 7.41 – Permit Use of Special State Reserve Fund for Transportation/Establish Transportation Reserve Fund for Homeless and Foster Children (pgs. 60-61)

  • DPI shall use funds from the Special State Reserve Fund (SSRF) to cover extraordinary transportation costs for high-needs children with disabilities attending LEAs and charter schools
  • DPI shall establish the Transportation Reserve Fund for Homeless and Foster Children to cover extraordinary transportation costs for homeless and foster children attending LEAs and charter schools


Section 7.43 – Student Meal Debt Report and Reduced-Price Lunch Co-pays (pg. 61)

  • SBE shall report to the Joint Legislative Education Oversight Committee on unpaid meal charges in LEAs
  • DPI funds shall be used to provide school lunches at no cost to students of all grades who qualify for reduced-price meals in schools participating in the National School Lunch Program in the 2019-2020 school year


Section 7B.1 – Teacher Salary Schedule (pgs. 75-77) and Section 7B.3A – Veteran Teacher Bonuses (pg. 78)

  • Increases average teacher salary by 3.9% over the biennium
  • Maintains regular step increases for teachers with 0-15 years of experience
  • Gives teachers with 16-20 years of experience a $500 raise for each year of the biennium
  • Gives teachers with 21-24 years of experience a $1,500 raise in the first year and a $500 raise in the second year
  • Gives teachers with 25 or more years of experience a $600 raise in the first year and a $500 raise in the second year
  • Provides a $500 bonus no later than October 31, 2019 for teachers with 25 or more years of experience as of October 1, 2019 – GA intends to continue this bonus in 2020


Section 7B.3 – Support Highly Qualified NC Teaching Graduates (pgs. 77-78)

  • Program began in the 2017 budget (pgs. 93-94)
  • Applies to those entering the teaching profession in the 2019-2021 fiscal biennium
  • Modifies the definition of a “highly qualified graduate” as an individual entering the teaching profession and hired on or after July 1, 2019 who graduated from an approved educator preparation program (EPP) located in NC, earned a GPA of 3.75 or higher, and scored 48 or higher on a majority of edTPA assessments or equivalents
  • Qualified graduates receive a salary supplement each month


Section 7B.4 – Principal Salary Schedule (pg. 78-80)


Section 7B.5 – Principal Bonuses (pgs. 80)

  • Increases the existing principal bonus for the top 5% from $10,000 to $15,000 and for the top 10% from $7,500 to $10,000
  • Eliminates the principal double bonus for principals in schools with D or F performance grades


Section 7B.5A – Principal Recruitment Supplement (pgs. 80-82)

  • Provides an annual salary supplement of $30,000 for up to 36 months for a principal who is paid on the exceeded growth column of the salary schedule and accepts employment at a low-performing school that is in the bottom 5%
  • The principal remains eligible for the 36 months regardless of future school performance grades or whether the principal continues to be paid based on the exceeded growth column


Section 7B.7 – Central Office Salaries (pgs. 83-84) and Section 7B.8 – Noncertified Personnel Salaries (pgs. 84-85)

  • Increases central office salaries and noncertified personnel salaries by 1% GA intends to continue this pay increase in 2020
  • Establishes maximum monthly salary levels for central office employees from State funds


Section 8A.6 – Modify NC Teaching Fellows Program (pgs. 106-107)


Section 8A.9 – Combine K-12 Scholarship Programs for Children with Disabilities (pgs. 110-118)

  • Combines the current personal education savings account (PESA) with the disability grants program
  • Changes “PESA” to “Personal Education Student Accounts for Children with Disabilities”
  • Defines an eligible student as a child who is four years old before April 16 and is found to meet enrollment requirements
  • An eligible student with certain disabilities including autism, hearing impairments, intellectual/developmental disability, orthopedic impairments, and visual impairments may be awarded up to $17,000 in scholarship funds for each school year – other eligible students are awarded up to $8,000 and eligible part-time students are awarded $4,000
  • Students can still qualify for this program and the Opportunity Scholarship if the family/student meets the eligibility of both


Section 38.25 – Rehire High-Need Teachers (pgs. 322-326)


Section 39.2(h) – School Capital (pgs. 331-333)


Additional Notable Budget Provisions:


  • Section 4.3 – Education Lottery Funds (pg. 13)
  • Section 4.5 – Civil Penalty and Forfeiture Fund (pgs. 13-14)
  • Section 7.3 – Supplemental Funding in Low-Wealth Counties (pgs. 29-32)
  • Section 7.4 – Small County School System Supplemental Funding (pgs. 33-34)
  • Section 7.13 – Create Definition for Public Schools/School Resource Officers Report (pgs. 40-41)
  • Section 7.18 – Economics and Financial Literacy (pgs. 43-47)
  • Section 7.24 – Arts Education Graduation Requirement (pgs. 47-48)
  • Section 7.36 – School Safety Grants Programs (pgs. 55-58)
  • Section 7.42 – Read to Achieve Reading Camp Curriculum Pilot Program (pg. 61)
  • Section 7.47 – School Mental Health Crisis Response Program (pgs. 63-64)
  • Section 7.51 – Extend Joint Legislative Task Force on Education Finance Reform to 2020 (pg. 65)
  • Section 7.52 – Recommendations for Students with Disabilities Funding (pg. 65)
  • Section 7.53 – Education on the Holocaust and Genocide/Gizella Abramson Holocaust Education Act (pgs. 65-66)
  • Part VII-A – Excellent Public Schools Act of 2019 (pgs. 66-75)
  • Section 7B.6 – Assistant Principal Salaries (pgs. 82-83)
  • Section 7B.9 – Small County Signing Bonus for Teachers (pg. 85)
  • Section 7B.10 – Consolidate and Broaden Qualifications for Certain Teacher Bonuses (pgs. 85-89)
  • Section 7B.11 – School Psychologist and School Counselor Position Study (pgs. 89-90)


Provides $1.5 billion for school capital from the State Capital and Infrastructure Fund (SCIF) and delineates how much each LEA will receive, with at least $500 million appropriated by 2020-21.


Important Budget Resources 


  • Governor's Veto Statement here.
  • HB 966: Ratified Conference Report here.
  • Updated "Money" Report (Conference Report) here.
  • Conference Committee Members here.
  • DPI Financial & Business Services: Budget Comparison here
  • DPI Financial & Business Services: Summary of Budget here.
  • HB 966: 2019 Appropriations Act (Senate v6) here
  • "Money" Report - 3rd Edition (Senate) here.
  • Senate Appropriations/Base Budget Amendments here.
  • HB 966: 2019 Appropriations Act (House v4) here
  • Committee "Money" Report - 2nd Edition (House) here.
  • Education Items in the Governor's budget here
  • Highlights of the NC Public School Budget 2019 here.
  • NC State Board of Education Budget Response here.
  • NC Department of Public Instruction #NC2030 vision here.
  • Public School Capital Outlays Chart here.
  • North Carolina School Finances website here.

K-12 Education Bills That Are Now Session Law

Court of Law


  1. SL 2019-51: (HB 57) Create Term for Public Schs. & Codify NCVPS  BILL SUMMARY
  2. SL 2019-11: (HB 263) Fill Vacancies/Modify 2018 Appointments
  3. SL 2019-22: (HB 646) ID Approval/Flex Muni One-Stop  BILL SUMMARY
  4. SL 2019-55: (HB 664) myFutureNC/Postsecondary Attainment Goal  BILL SUMMARY
  5. SL 2019-38: (SB 448) Amend Appt For Compact on Education/Military  BILL SUMMARY
  6. SL 2019-60: (SB 227) TP3/Principal Fellows Consolidation BILL SUMMARY 
  7. SL 2019-63: (SB 674) Surry Co./Mt. Airy/Elkin City/Bd. Ed Partisan  BILL SUMMARY


  • Complete List of Bills that are Session Law here.

Relevant Bills with Action


Bills Passed in Both Chambers

Presented to the Governor


  1. HB 656: Medicaid Changes for Transformation  BILL SUMMARY
  2. HB 886: Study Participation of Operators in NC Pre-K  BILL SUMMARY
  3. HB 924: Teacher Contract Changes  BILL SUMMARY
  4. SB 88: Electrician Requirements for Certain Orgs BILL SUMMARY
  5. SB 219: Modify Teacher Licensing Requirements  BILL SUMMARY 
  6. SB 399: Rehire High-Need Teachers  BILL SUMMARY
  7. SB 500: Modify Advanced Math Course EnrollmenBILL SUMMARY
  8. SB 556: GSC People First Language 2019  GENERAL COMMENTS


  • Complete List of Bills Pending the Governor's Signature here.

High Profile K-12 Education Bills

Heard in Committee This Week


HB 107: PED Oversight/EPP Changes

Teacher Prep

HB 107 would require the following:   

  • Include as a performance standard for Educator Preparation Programs (EPPs) the two-year retention rate of EPP completers initially licensed and employed in a North Carolina public school. 
  • Remove the quality of students entering the EPP as a performance standard, and instead only include it in the annual performance report. 
  • Make various clarifying and technical changes to the annual performance report. 
  • Modify the criteria by which an EPP can be sanctioned. 
  • Direct the State Board of Education (State Board) to adopt a rule creating a small group reporting exception any time data are at risk of being individually identifiable. 
  • Direct the State Board, in consultation with the Department of Public Instruction (DPI) and the Professional Educator Preparation and Standards Commission (PEPSC), to develop a formulaic, performance-based weighted model and report to the Joint Legislative Education Oversight Committee before implementing the model. 


HB 362: 15-Point Scale For School Performance Grades


School Performance Grade


The Senate Education/Higher Education Committee proposed and passed this Committee Substitute.  The amended version of HB 362 would:

  • Adopt a Fifteen-Point Scale in the Determination of School Performance Grades - modifies General Statute so this becomes codified in law
  • Require the State Board of Education to Adopt Emergency Rules in Preparation for Permanent Rule Making (extends rule making dates: interim rules by Aug 9, 2019 and permanent by Dec 6, 2019, emergency rules effective through May 30, 2020)
  • Direct the State Board of Education to Study the Reporting Methods Used for School Accountability Purposes on the North Carolina Annual School Report Cards.


Bills that moved this week:  


  • Passed the House - Sent to the Senate

    •  None
  • Passed the Senate - Sent to the House 

    • HB 411: Modify School Qual./Student Success Indicator (Placed on House Calendar July 9)  BILL SUMMARY 
  • Conference Committee

  • Passed in a Committee - Referred to another Committee

    • HB 107: PED Oversight/EPP Changes (Passed Senate Ed/Higher Ed (CS) - referred to Senate Rules)  BILL SUMMARY
    • HB 362: 15-Point Scale For School Performance Grades (Amended in Senate Ed/Higher Ed (CS) - referred to Senate Rules)  BILL SUMMARY

    • HB 668: Various Higher Education Changes (Amended in Senate Ed/Higher Ed (CS)
    • HB 678: Amend Counselor/SA/Soc. Worker Prof. Acts (Referred to Senate Health Care) BILL SUMMARY
    • HB 735: Adopt Rules Incorporating 2017 Food Code (Passed Senate Agriculture - referred to Senate Rules)  BILL SUMMARY
    • HB 777: Various Retirement Chngs/Wastewater Reform (Passed Senate Finance - referred to Senate Rules)  BILL SUMMARY
    • HB 922: Enhance Insurance Coverage/Educ. Buildings (Amended and passed in Senate Insuarnce (CS) - referred to and passed Senate Rules) BILL SUMMARY
    • SB 199: Child Sex Abuse/Strengthen Laws (Amended in House Judiciary (CS) - referred to House Rules) BILL SUMMARY
    • SB 230: Excused Absences for Military Children (Passed House K-12 Ed - referred to House Rules)  BILL SUMMARY
    • SB 343: Changes to Education Reports (Amended in House K-12 Ed (CS) referred to House Rules)  BILL SUMMARY
    • SB 438: Excellent Public Schools Act of 2019 (Re-referred to House K-12 Ed)  BILL SUMMARY
    • SB 354: Sam's Law (Amended in House K-12 Ed (CS) referred to House Rules) BILL SUMMARY
    • SB 391: Expand Youth Internship Opportunities (Passed House Commerce - referred to House Rules)  BILL SUMMARY
    • SB 621: Testing Reduction Act of 2019 (Referred to )  BILL SUMMARY


  • For complete bill history and summaries, click on the bill link.

REMINDER: SBE Student Advisor Application Now Available

 Deadline: June 30


One rising junior and one rising senior will be selected to represent North Carolina's public school students as a nonvoting advisor to the State Board of Education. The rising senior selected will serve a one-year term, while the rising junior will serve a two-year term, each beginning with the August 2019 SBE meeting. Meetings are typically the first Wednesday and Thursday of each month on the 7th floor of the Education Building at 301 N. Wilmington Street in Raleigh. Click here to view the application. The deadline for applications is June 30, and the two advisors selected will be notified by July 15.  You are encouraged to forward this application to students who would be an excellent fit for this role.


DPI Logo
  • 2019 Long Session LINK for bills impacting K-12 education.
  • LINK to K-12 Public Education Bills that made Crossover.
  • NCGA Crossover List - LINK.

Next Week's Education-Related Legislative Calendar


July 1 - 5:  Legislative Meeting Calendar


Monday, July 1, 2019

11:00 a.m.: House: Session Convenes                                                          House | Audio

  2:00 p.m.: Senate: Session Convenes                                                        Senate | Audio

North Carolina General Assembly 


Legislative Info and Acronyms 

This section includes details pertaining to acronyms and bill information referenced throughout the K-12 Education Legislative Update newsletters.


Biennium- A two-year term of legislative activity

Public Bill- Legislation enacted into law that applies to the public at large

Local Bill- Legislation put into law that has limited application (How many counties)- Local bills do not have to be signed by the governor

Sponsor- The legislator who presents a bill or resolution for consideration

Resolution- A document that expresses the sentiment or intent of the legislature or a chamber. Resolutions, when finalized, go to the Secretary of State


Glossary of Legislative Terms- LINK


DPI = NC Department of Public Instruction

LEA = Local Education Agency

NCGA North Carolina General Assembly

LB/LOB = Legislative Building/Legislative Office Building 

SBE = North Carolina State Board of Education


AB = Agency Bill

HB/SB = House Bill/Senate Bill

JR = Joint Resolution

SL = Session Law

GS = General Statute 

PCS = Proposed Committee


  • Cecilia Holden  – Director of Government and Community Relations |  919-807-3406
  • Anne Murtha  –  Legislative Specialist  |  919-807-3403

To view previous 2019 Weekly Legislative Updates click here.

 The NC Department of Public instruction offers a number of topics for subscription.

  • To subscribe to the Weekly Legislative Update, click here.
  • To subscribe to other NC Department of Public Instruction topics, click here.