MEMO: Needs-Based Public School Capital Fund

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The 2021-23 State Budget (SL 2021-180) includes significant changes to the Needs-Based Public School Capital Fund (NBPSCF). The NBPSCF is funded with revenue from the NC Education Lottery and is designed to address critical K-12 school facility needs across North Carolina. Due to increased lottery revenues, $395 million will be available for NBPSCF grants in the FY2021-22 award cycle.

These changes include:
• New maximum grant amounts -- $30m for elementary schools, $40m for middle schools, and $50m for high schools.
• Grant funds can now be used for new buildings, additions, repairs, and renovations.
• Local matching requirements now range from 0% to 35%, based on property tax data.
• New eligibility criteria based on property tax data -- 95 counties are now eligible.
• Elimination of the 5-year period of ineligibility for receipt of annual PSBCF capital funds.
• Elimination of the 5-year restriction for prior recipients to re-apply for another NBPSCF grant.
• Prior NBPSCF grant recipients who have not started construction may apply for increased grant funding.

DPI will publish new program guidance and application materials on Friday, December 17, 2021. The application deadline will be Tuesday, March 15, 2022. Full program details will be available on the DPI website.

For more information, please contact Nathan Maune, School Planning Section Chief.

I hope you all have a restful and relaxing holiday season. Thank you for all you do to support our students, teachers, and staff.

Very best,
Catherine Truitt
North Carolina Superintendent of Public Instruction