North Carolina § 115C-426 - Uniform budget format.

§ 115C-426. Uniform budget format.

The State Board of Education, in cooperation with the Local Government Commission, shall cause to be prepared and promulgated a standard budget format for use by local school administrative units throughout the State. The uniform budget format shall be organized so as to facilitate accomplishment of the following objectives: (i) to enable the board of education and the board of county commissioners to make the local educational and local fiscal policies embodied therein; (ii) to control and facilitate the fiscal management of the local school administrative unit during the fiscal year; and (iii) to facilitate the gathering of accurate and reliable fiscal data on the operation of the public school system throughout the State. The uniform budget format shall require the following funds: The State Public School Fund. The local current expense fund. The capital outlay fund. The State Public School Fund shall include appropriations for the current operating expenses of the public school system from moneys made available to the local school administrative unit by the State Board of Education. The local current expense fund shall include appropriations sufficient, when added to appropriations from the State Public School Fund, for the current operating expense of the public school system in conformity with the educational goals and policies of the State and the local board of education, within the financial resources and consistent with the fiscal policies of the board of county commissioners. These appropriations shall be funded by revenues accruing to the local school administrative unit by virtue of Article IX, Sec. 7 of the Constitution, moneys made available to the local school administrative unit by the board of county commissioners, supplemental taxes levied by or on behalf of the local school administrative unit pursuant to a local act or G.S. 115C-501 to 115C-511, State money disbursed directly to the local school administrative unit, and other moneys made available or accruing to the local school administrative unit for the current operating expenses of the public school system. The capital outlay fund shall include appropriations for: The acquisition of real property for school purposes, including but not limited to school sites, playgrounds, athletic fields, administrative headquarters, and garages. The acquisition, construction, reconstruction, enlargement, renovation, or replacement of buildings and other structures, including but not limited to buildings for classrooms and laboratories, physical and career and technical educational purposes, libraries, auditoriums, gymnasiums, administrative offices, storage, and vehicle maintenance. The acquisition or replacement of furniture and furnishings, instructional apparatus, data-processing equipment, business machines, and similar items of furnishings and equipment. The acquisition of school buses as additions to the fleet. The acquisition of activity buses and other motor vehicles. Such other objects of expenditure as may be assigned to the capital outlay fund by the uniform budget format. Other funds shall include appropriations for such purposes funded from such sources as may be prescribed by the uniform budget format. In addition, other funds may be used to account for reimbursements, including indirect costs, fees for actual costs, tuition, sales tax revenues distributed using the ad valorem method pursuant to G.S. 105-472(b)(2) , sales tax refunds, gifts and grants restricted as to use, trust funds, federal appropriations made directly to local school administrative units, municipal appropriations made directly to local school administrative units under G.S. 160A-700 , and funds received for prekindergarten programs. In addition, the appropriation or use of fund balance or interest income by a local school administrative unit shall not be construed as a local current expense appropriation included as a part of the local current expense fund. Each local school administrative unit shall maintain those funds shown in the uniform budget format that are applicable to its operations. The cost of acquiring or constructing a new building, or reconstructing, enlarging, or renovating an existing building, shall include the cost of all real property and interests in real property, and all plants, works, appurtenances, structures, facilities, furnishings, machinery, and equipment necessary or useful in connection therewith; financing charges; the cost of plans, specifications, studies, reports, and surveys; legal expenses; and all other costs necessary or incidental to the construction, reconstruction, enlargement, or renovation. No contract for the purchase of a site shall be executed nor any funds expended therefor without the approval of the board of county commissioners as to the amount to be spent for the site; and in case of a disagreement between a board of education and a board of county commissioners as to the amount to be spent for the site, the procedure provided in G.S. 115C-431 shall, insofar as the same may be applicable, be used to settle the disagreement. Appropriations in the capital outlay fund shall be funded by revenues made available for capital outlay purposes by the State Board of Education and the board of county commissioners, supplemental taxes levied by or on behalf of the local school administrative unit pursuant to a local act or G.S. 115C-501 to 115C-511, the proceeds of the sale of capital assets, the proceeds of claims against fire and casualty insurance policies, and other sources. History (1975, c. 437, s. 1; 1981, c. 423, s. 1; 2010-31, s. 7.17(a); 2013-355, s. 2(a); 2017-57, s. 7.23H(h); 2018-5, s. 38.8(f).) Local Modification. - Gaston: 2014-8, s. 2(b), as amended by 2014-9, s. 1 (expires upon the adoption of the 2016-2017 fiscal year budget by the Gaston County Board of Commissioners); Nash: 2014-8, s. 2(b), as amended by 2014-9, s. 1 (expires upon the adoption of the 2016-2017 fiscal year budget by the Nash County Board of Commissioners). Editor's Note. - Session Laws 2002-159, s. 91.1, provides: "Nothing in the General Statutes or any local act entitles any charter school, prior to July 1, 2003, to recover retroactively any funds from penalties, fines, and forfeitures or supplemental school taxes." Session Laws 2010-31, s. 7.17(b), provides: "Any local school administrative unit (i) that did not fully comply with the provisions of G.S. 115C-238.29H(b) prior to the effective date of this section and (ii) that is subject to a judgment, court order, or binding settlement agreement arising from that noncompliance may make payments required thereunder over a period not to exceed three years." Session Laws 2013-355, s. 5, repealed Session Laws 2010-31, s. 7.17(b), effective July 25, 2013. Session Laws 2010-31, s. 7.17(c), provides: "Subsection (a) of this section applies beginning with the 2010-2011 school year." 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 2010-123, s. 3.2, provides: "Nothing in Section 7.17 of S.L. 2010-31 shall be construed to invalidate any budget resolution or budget amendment approved by a local board of education regarding the appropriation or transfer of revenue to any other fund that was approved for use by the North Carolina Department of Public Instruction and the Local Government Commission." Session Laws 2013-355, s. 8, provides in part: "Nothing in this act shall be construed to affect pending litigation." Session Laws 2016-14, s. 6, provides: "(a) A local board of education shall not file any legal action under G.S. 115C-426 , 115C-431, or 115C-432 challenging the sufficiency of the funds appropriated by the board of county commissioners to the local current expense fund, the capital outlay fund, or both. This subsection expires upon the adoption of the 2026-2027 fiscal year budget by the appropriate board of county commissioners. The board of county commissioners shall approve a school budget that provides an amount per pupil annually for local current expense funds that is equal to or greater than the per pupil amount for local current expense funds appropriated by the board of county commissioners for the 2016-2017 fiscal year. "(b) This section applies only to the County of Nash." Session Laws 2016-18, s. 1, applicable to Union County for the 2016-2017 fiscal year, provides: "The Union County Board of Education shall not file any legal action under G.S. 115C-426 , 115C-431, or 115C-432 challenging the sufficiency of the funds appropriated by the Union County Board of Commissioners to the local current expense fund, the capital outlay fund, or both for any budget ordinance adopted for the 2016-2017 fiscal year." Session Laws 2016-23, s. 5(c) provides: "The State Board of Education shall provide that a student enrolled in a North Carolina public school or charter school in accordance with subsection (a) of this section be included in calculations for average daily membership, reporting for the Uniform Education Reporting System, and eligibility for State and federal funds." Session Laws 2016-23, s. 5(a), referred to above, made current North Carolina students, who are eligible to attend North Carolina schools before boundary certification, and who lose eligibility as a result of certification, eligible to attend North Carolina schools. Session Laws 2016-23, s. 12(a), is a severability clause. 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. 39.6, is a severability clause. Session Laws 2017-57, s. 7.23H(k), made the amendment to subdivision (f)(2) of this section by Session Laws 2017-57, s. 7.23H(h), applicable beginning with the 2017-2018 school year. Session Laws 2018-5, s. 38.8(i), made the amendment of subsection (c) of this section by Session Laws 2018-5, s. 38.8(f), effective July 1, 2018, and applicable to revenues derived from taxes levied on or after that date. 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. Effect of Amendments. - Session Laws 2010-31, s. 7.17(a), effective July 1, 2010, and applicable beginning with the 2010-2011 school year, in the next-to-last paragraph in subsection (c), rewrote the first sentence, which formerly read: "In addition, other funds may be required to account for trust funds, federal grants restricted as to use, and special programs" and added the last sentence. Session Laws 2013-355, s. 2(a), effective July 25, 2013, in the second paragraph of subsection (c), inserted "and" preceding "funds received for prekindergarten programs" and deleted "and special programs" thereafter in the first sentence, and added "included as a part of the local current expense fund" at the end of the last sentence. Session Laws 2017-57, s. 7.23H(h), effective July 1, 2017, substituted "career and technical" for "vocational" in subsection (f)(2). For applicability, see editor's note. Session Laws 2018-5, s. 38.8(f), inserted "municipal appropriations made directly to local school administrative units under G.S. 160A-700 " in the second paragraph of subsection (c). For effective date and applicability, see editor's note. Legal Periodicals. - See legislative survey, 21 Campbell L. Rev. 323 (1999).