North Carolina § 115C-105 - 25. Budget flexibility.

§ 115C-105. 25. Budget flexibility.

Consistent with improving student performance, a local board shall provide maximum flexibility to schools in the use of funds to enable the schools to accomplish their goals. Subject to the following limitations, local boards of education may transfer and may approve transfers of funds between funding allotment categories: Repealed by Session Laws 2013-360, s. 8.14, effective July 1, 2013. Funds for career and technical education and other purposes may be transferred only as permitted by federal law and the conditions of federal grants or as provided through any rules that the State Board of Education adopts to ensure compliance with federal regulations. No funds shall be transferred out of the children with disabilities allotment category. , (2a) Repealed by Session Laws 2013-360, s. 8.14, effective July 1, 2013. No funds shall be transferred into the central office administration allotment category. No funds shall be transferred out of the teacher assistants allotment category. No funds shall be transferred out of the academically or intellectually gifted children allotment category. , (5) Repealed by Session Laws 2013-360, s. 8.14, effective July 1, 2013. (Effective until July 1, 2021) Positions allocated for classroom teachers may be converted to dollar equivalents to contract for visiting international exchange teachers through a visiting international exchange teacher program approved by the State. These positions shall be converted at the statewide average salary for classroom teachers, including benefits. The converted funds shall be used only to provide visiting international exchange teachers with salaries commensurate with their experience levels, to provide any State-approved bonuses, and to cover the costs associated with supporting visiting international exchange teachers within the local school administrative unit, including programming and related activities, background checks, medical coverage, and other program administration services in accordance with the federal regulations for the Exchange Visitor Program, 22 C.F.R. Part 62. (Effective July 1, 2021) No positions shall be transferred out of the allocation for classroom teachers for kindergarten through twelfth grade, except as provided in this subdivision. Positions allocated for classroom teachers may be converted to dollar equivalents to contract for visiting international exchange teachers through a visiting international exchange teacher program approved by the State. These positions shall be converted at the statewide average salary for classroom teachers, including benefits. The converted funds shall be used only to provide visiting international exchange teachers with salaries commensurate with their experience levels, to provide any State-approved bonuses, and to cover the costs associated with supporting visiting international exchange teachers within the local school administrative unit, including programming and related activities, background checks, medical coverage, and other program administration services in accordance with the federal regulations for the Exchange Visitor Program, 22 C.F.R. Part 62. (Effective until July 1, 2021) Except as provided in subdivision (5a) of this subsection, positions allocated for classroom teachers and instructional support personnel may be converted to dollar equivalents for any purpose authorized by the policies of the State Board of Education. These positions shall be converted at the salary on the first step of the "A" Teachers Salary Schedule. Certified position allotments shall not be transferred to dollars to hire the same type of position. (Effective July 1, 2021) Positions allocated for instructional support personnel may be converted to dollar equivalents for any purpose authorized by the policies of the State Board of Education. These positions shall be converted at the salary on the first step of the "A" Teachers Salary Schedule. Certified position allotments shall not be transferred to dollars to hire the same type of position. Funds allocated for school building administration may be converted for any purpose authorized by the policies of the State Board of Education. For funds related to principal positions, the salary transferred shall be based on the first step of the Base column of the Principal Salary Schedule. For funds related to assistant principal months of employment, the salary transferred shall be based on the first step of the "A" Teachers Salary Schedule at the salary level for assistant principals. Certified position allotments shall not be transferred to dollars to hire the same type of position. No positions shall be transferred out of the allocation for program enhancement teachers for kindergarten through fifth grade except as provided in this subdivision. Positions allocated for program enhancement teachers for kindergarten through fifth grade may be converted into positions allocated for classroom teachers for kindergarten through twelfth grade. For the purposes of this subdivision, the term "program enhancement" is as defined in G.S. 115C-301(c2). No funds shall be transferred out of the limited English proficiency allotment category. To ensure that parents, educators, and the general public are informed on how State funds have been used to address local educational priorities, each local school administrative unit shall publish information from the prior fiscal year on its Web site by October 15 of each year, as follows: A description of each program report code, written in plain English, and a summary of the prior fiscal year's expenditure of State funds within each program report code. A description of each object code within a program report code, written in plain English, and a summary of the prior fiscal year's expenditure of State funds for each object code. A description of each allotment transfer that increased or decreased the initial allotment amount by more than five percent (5%), including all of the following information: The amount of the transfer. The allotment category into which the funds were transferred. The purpose code for the funds following the transfer. A description of any teacher positions fully or partially funded as a result of the transfer, including all subject areas taught by the teacher in the position. The educational priorities that necessitated the transfer. Repealed by Session Laws 2017-57, s. 7.13(b), effective July 1, 2018. A chart that clearly reflects how the local school administrative unit spent State funds. The local school administrative unit shall maintain information published pursuant to subsection (c) of this section on its Web site for at least three years after it is published. No later than December 1 of each year, the Department of Public Instruction shall collect the information reported by local school administrative units pursuant to subsection (c) of this section and report the aggregated information, including available data from the two previous fiscal years, to the Joint Legislative Education Oversight Committee and the Fiscal Research Division. The report shall also include information on the use of the budget flexibility provided to Advanced Teaching Roles schools pursuant to G.S. 115C-311(j). (6) through (9) Repealed by Session Laws 2013-360, s. 8.14, effective July 1, 2013. (10) Funds to carry out the elements of the Excellent Public Schools Act that are contained in Section 7A.1 of S.L. 2012-142 shall not be transferred. (11) No funds shall be transferred into or out of the driver education allotment category. (12) Funds allotted for textbooks and digital resources may only be used for the purchase of textbooks and digital resources. These funds shall not be transferred out of the allotment for any other purpose. History (1995 (Reg. Sess., 1996), c. 716, s. 3; 1996, 2nd Ex. Sess., c. 18, ss. 18.24(h)-(k); 1998-212, s. 9.20(b); 1999-237, s. 8.25(c); 2001-424, s. 28.22; 2005-276, s. 7.22(a); 2006-69, s. 3(b); 2011-145, s. 7.13(g); 2011-391, s. 14(b); 2013-360, s. 8.14; 2015-241, ss. 8.33, 8.39(c), 8.47(a); 2016-94, ss. 8.5, 8.16; 2017-57, ss. 7.1(b), 7.2(b), 7.12, 7.13(a), (b), 7.23J(a), 8.3(d); 2017-197, s. 2.4; 2018-2, s. 4(a), (b); 2018-5, ss. 7.11(a), 8.2(g); 2019-247, s. 2.3(f); 2020-78, s. 2.6(c).) Subdivisions (b)(5a) and (5b) Set Out Twice. - The first version of subdivisions (b)(5a) and (5b) set out above is effective until July 1, 2021. The second version of subdivisions (b)(5a) and (5b) set out above is effective July 1, 2021. Editor's Note. - The number of this section was assigned by the Revisor of Statutes, the number in Session Laws 1995 (Reg. Sess., 1996), c. 716, s. 3, having been 115C-105.21A. Session Laws 2005-276, s. 7.22(b), provides: "The Visiting International Faculty Program is a State-approved visiting international exchange teacher program." Session Laws 2005-276, s. 7.32(c), provides: "During the first year of its operation, a high school established under G.S. 115C-238.50 shall be allotted a principal regardless of the number of State-paid teachers assigned to the school or the number of students enrolled in the school. The budget flexibility authorized by G.S. 115C-105.25 does not apply to these positions." Session Laws 2005-276, ss. 7.61(a) and (b), as amended by Session Laws 2010-31, s. 7.22(d), and as amended by Session Laws 2011-145, s. 7.13(dd), provides: "(a) Funds appropriated for the At-Risk/Alternative Schools allotment and the Improving Student Accountability allotment shall be used consistent with the policies and procedures adopted by the State Board of Education. Priority for use of the funds shall be to (i) provide instructional positions or instructional support positions and/or professional development; (ii) provide intensive in-school and/or after-school remediation; and (iii) purchase diagnostic software and progress monitoring tools." "(b) Repealed by Session Laws 2011-145, s. 7.13(dd), effective July 1, 2011." Session Laws 2005-276, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2005'." Session Laws 2005-276, s. 46.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2005-2007 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2005-2007 fiscal biennium." Session Laws 2005-276, s. 46.5, is a severability clause. Session Laws 2009-451, s. 7.8(a)-(e), as amended by Session Laws 2010-31, s. 7.13(a), provides: "(a) The State Board of Education is authorized to adopt emergency rules in accordance with G.S. 150B-21.1 A to grant maximum flexibility to local school administrative units regarding the expenditure of State funds. These rules shall not be subject to the limitations on transfers of funds between funding allotment categories set out in G.S. 115C-105.25 . These rules: "(1) Shall authorize the transfer of textbook funds to other allotments to manage funding cuts; and "(2) Shall not permit the transfer of funds from school-based positions to the central office. "(b) For the 2010-2011 fiscal year, local school administrative units shall reduce spending whenever and wherever such budget reductions are appropriate to protect direct classroom services. Local school administrative units shall implement administrative and other operating efficiencies prior to the dismissal of classroom-based personnel. Local school administrative units shall maximize federal funds received including American Recovery and Reinvestment Act of 2009 (ARRA), P.L. 111-5; Keep Our Educators Working Act or any other federal act that provides funding that can be expended on positions; Individuals with Disabilities Act (IDEA); Title I; and Title II funds. Local school administrative units are encouraged to designate all Title I-eligible schools and must maximize attrition prior to the dismissal of classroom-based personnel. Notwithstanding G.S. 115C-301 or any other law, local school administrative units shall have the maximum flexibility to use allotted teacher positions to maximize student achievement in grades 4-12. Allocation of teachers and class size requirements in grades K-3 shall remain unchanged. "(c) Within 14 days of the date this act becomes law, the State Board of Education shall notify each local school administrative unit and charter school of the amount the unit must reduce from the State General Fund appropriations. The State Board shall determine the amount of the reduction for each unit on the basis of average daily membership. "(d) Each unit shall report to the State Board of Education, the Office of State Budget and Management, and the Department of Public Instruction on the flexibility budget reductions it has identified for the unit, including an explanation of how administrative efficiencies, federal funds, and attrition have been maximized prior to the dismissal of classroom-based personnel, within 30 days of the date this act becomes law. "(e) For the 2010-2011 fiscal year, to the extent that local school administrative units reduce career and technical education spending in order to meet the LEA Adjustment, local school administrative units shall make every effort to reduce spending from Career Technical Education - State: Program Support Funds before making any reductions to Career Technical Education - State: Months of Employment funds." Session Laws 2009-451, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2009'." Session Laws 2009-451, s. 28.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2009-2011 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2009-2011 fiscal biennium." Session Laws 2009-451, s. 28.5, is a severability clause. Session Laws 2010-31, s. 7.13(b), provides: "For the 2010-2011 fiscal year, local boards of education may also implement furloughs in accordance with Section 29.1 of this act to manage funding amounts." Session Laws 2010-31, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2010'." Session Laws 2010-31, s. 32.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2010-2011 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2010-2011 fiscal year." Session Laws 2010-31, s. 32.6, is a severability clause. Session Laws 2015-241, s. 8.39(h), as amended by Session Laws 2016-94, s. 8.5, made subdivision (b)(11), as added by Session Laws 2015-241, s. 8.39(c), effective July 1, 2016, and applicable beginning with the 2016-2017 school year. Session Laws 2015-241, s. 8.47(b), provides: "This act provides local school administrative units the dollar equivalent of teacher assistant positions based on the following ratios: "(1) Two teacher assistants for every three classes in kindergarten. "(2) One teacher assistant for every two classes in grades 1 and 2. "(3) One teacher assistant for every three classes in grade 3. "For the 2015-2016 fiscal year, funds shall be distributed based on an estimated statewide average salary and benefits per position and an average class size of 21 students in membership per classroom." Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'" Session Laws 2015-241, s. 33.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2015-2017 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2015-2017 fiscal biennium." Session Laws 2015-241, s. 33.6, is a severability clause. At the direction of the Revisor of Statutes, subsections (c1) and (d), as added by Session Laws 2017-57, s. 7.23J(a), were redesignated as subsections (d) and (e), respectively. Session Laws 2017-57, s. 7.23J(b), as amended by Session Laws 2017-197, s. 2.4, provides: "The report required by December 1, 2017, pursuant to G.S. 115C-105.25(d) [115C-105.25(e)], as enacted by this section, shall include information on uses of funds pursuant to G.S. 115C-105.25(c) , as amended by this section, for the 2014-2015, 2015-2016, and 2016-2017 fiscal years." Session Laws 2017-57, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2017.'" Session Laws 2017-57, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2017-2019 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2017-2019 fiscal biennium." Session Laws 2017-57, s. 39.6, is a severability clause. Session Laws 2018-5, s. 8.2(g), effective July 1, 2018, repealed Session Laws 2017-57, s. 8.3(d), which, in subdivision (b)(5c), substituted "the Base column of the Principal Salary Schedule" for "the Principal III Salary Schedule" in the second sentence, and substituted " 'A' Teachers Salary Schedule at the salary level for assistant principals" for "Assistant Principal Salary Schedule" in the next-to-last sentence. Subdivision (b)(5c) now appears as it did prior to its amendment by Session Laws 2017-57, s. 8.3(d). Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'" Session Laws 2018-5, s. 39.7, is a severability clause. Session Laws 2020-78, s. 22.1, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2019-2021 fiscal biennium, the textual provisions of this act apply only to the 2019-2021 fiscal biennium." Session Laws 2020-78, s. 22.3, is a severability clause. Session Laws 2021-7, s. 1.4, provides: "Use of Reading Camp Funds. - Notwithstanding G.S. 115C-105.25(b)(10) and any other provision of law, local school administrative units may use funds allocated to the units for reading camps for the 2020-2021 fiscal year to also support the operation of reading instruction for first, second, and third grade students in the school extension learning recovery and enrichment program pursuant to this act. These funds shall not be used for enrichment activities." Effect of Amendments. - Session Laws 2005-276, s. 7.22(a), effective July 1, 2005, added subdivision (b)(5a). Session Laws 2006-69, s. 3.(b), effective July 10, 2006, substituted "disabilities" for "special needs" in subdivision (b)(4). Session Laws 2013-360, s. 8.14, effective July 1, 2013, deleted subdivisions (b)(1), (b)(2), (b)(2a), (b)(4), (b)(5), (b)(6), (b)(7), (b)(8), and (b)(9), which pertained to the transfer of funds allocated for: teacher assistants; classroom materials/instructional supplies/equipment; children with disabilities/limited English proficiency/driver's education; At-risk students; vocational education; career development; gifted children; and Alternative Schools/At-risk Students respectively; added subdivisions (b)(1a), (b)(5b), (b)(5c), and (b)(10), and subsection (c); and inserted "administration" in subdivision (b)(3). Session Laws 2015-241, s. 8.33, effective July 1, 2015, added subdivisions (c)(4) and (c)(5). Session Laws 2015-241, s. 8.47(a), effective July 1, 2015, added subdivision (b)(3a). Session Laws 2016-94, s. 8.16, effective July 1, 2016, rewrote subdivision (b)(5a), which read "Positions allocated for classroom teachers may be converted to dollar equivalents to contract for visiting international exchange teachers. These positions shall be converted at the statewide average salary for classroom teachers, including benefits. The converted funds shall be used only to over the costs associated with bringing visiting international exchange teachers to the local school administrative unit through a State-approved visiting international exchange teacher program and supporting the visiting exchange teachers." Session Laws 2017-57, ss. 7.1(b), 7.12, 7.23J(a), and 8.3(d), effective July 1, 2017, added subdivisions (b)(1b) and (10a) and subsections (d) and (e); in subdivision (b)(1a) deleted "children with disabilities" following "Funds for"; in subdivision (b)(5c), substituted "the Base column of the Principal Salary Schedule" for "the Principal III Salary Schedule" and " 'A ' Teachers Salary Schedule at the salary level for assistant principals" for "Assistant Principal Salary Schedule"; in the introductory paragraph of subsection (c), substituted "information from the prior fiscal year' for "following information" and added "as follows" at the end; in subdivision (c)(3), added "including all of the following information" at the end of the introductory paragraph, added subdivisions (c)(3)a.-d. and added the designation (c)(3)e. Session Laws 2017-57, ss. 7.2(b) and 7.13(a) and (b), effective July 1, 2018, added subdivisions (b)(3b) and (b)(12); and repealed former subdivision (c)(4), which read: "A description of any transfer of funds from the textbooks and digital resources allotment into another allotment category with an explanation of why the transfer from the textbooks and digital resources allotment was made to a different allotment category." Session Laws 2018-2, s. 4(a), effective July 1, 2018, added subdivision (b)(5d). Session Laws 2018-2, s. 4(b), effective July 1, 2021, added the first sentence in subdivision (b)(5a); and deleted "Except as provided in subdivision (5a) of this subsection" at the beginning and "classroom teachers and" following "allocated for" in subdivision (b)(5b). Session Laws 2018-5, s. 7.11(a), effective July 1, 2018, inserted "or out of" in subdivision (b)(11). Session Laws 2019-247, s. 2.3(f), effective July 1, 2019, in subdivision (b)(5c), substituted "the Base column of the Principal Salary Schedule" for " the Principal III Salary Schedule" in the second sentence, and substituted "'A' Teachers Salary Schedule at the salary level for assistant principals" for "Assistant Principal Salary Schedule" in the last sentence. Session Laws 2020-78, s. 2.6(c), effective July 1, 2020, added the last sentence in subsection (e).