North Carolina § 115C-432 - The budget resolution; adoption; limitations; tax levy; filing.

§ 115C-432. The budget resolution; adoption; limitations; tax levy; filing.

After the board of county commissioners has made its appropriations to the local school administrative unit, or after the appeal procedure set out in G.S. 115C-431 for the capital outlay fund has been concluded, the board of education shall adopt a budget resolution making appropriations for the budget year in such sums as the board may deem sufficient and proper. The budget resolution shall conform to the uniform budget format established by the State Board of Education. The following directions and limitations shall bind the board of education in adopting the budget resolution: If the county budget ordinance allocates appropriations to the local school administrative unit pursuant to G.S. 115C-429(b), the school budget resolution shall conform to that allocation. The budget resolution may be amended to change allocated appropriations only in accordance with G.S. 115C-433. Subject to the provisions of G.S. 115C-429(d), the full amount of any lawful deficit from the prior fiscal year shall be appropriated. Contingency appropriations in a fund may not exceed five percent (5%) of the total of all other appropriations in that fund. Each expenditure to be charged against a contingency appropriation shall be authorized by resolution of the board of education, which resolution shall be deemed an amendment to the budget resolution, not subject to G.S. 115C-429(b) and 115C-433(b), setting up or increasing an appropriation for the object of expenditure authorized. The board of education may authorize the superintendent to authorize expenditures from contingency appropriations subject to such limitations and procedures as it may prescribe. Any such expenditure shall be reported to the board of education at its next regular meeting and recorded in the minutes. Sufficient funds to meet the amounts to be paid during the fiscal year under continuing contracts previously entered into shall be appropriated. The sum of estimated net revenues and appropriated fund balances in each fund shall be equal to appropriations in that fund. No appropriation may be made that would require the levy of supplemental taxes pursuant to a local act or G.S. 115C-501 to 115C-511 in excess of the rate of tax approved by the voters, or the expenditure of revenues for purposes not permitted by law. In estimating revenues to be realized from the levy of school supplemental taxes pursuant to a local act or G.S. 115C-501 to 115C-511, the estimated percentage of collection may not exceed the percentage of that tax actually realized in cash during the preceding fiscal year, or if the tax was not levied in the preceding fiscal year, the percentage of the general county tax levy actually realized in cash during the preceding fiscal year. Amounts to be realized from collection of supplemental taxes levied in prior fiscal years shall be included in estimated revenues. No appropriation may be made to or from the capital outlay fund to or from any other fund, except as permitted by G.S. 115C-433(d). If the local school administrative unit levies its own supplemental taxes pursuant to a local act, the budget resolution shall make the appropriate tax levy in accordance with the local act, and the board of education shall notify the county or city that collects the levy in accordance with G.S. 159-14. The budget resolution shall be entered in the minutes of the board of education, and within five days after adoption, copies thereof shall be filed with the superintendent, the school finance officer and the county finance officer. History (1975, c. 437, s. 1; 1981, c. 423, s. 1; 1987 (Reg. Sess., 1988), c. 1025, s. 13; 1993, c. 57, s. 1; 2018-83, s. 2.) 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 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 2018-83, s. 3(a), (b), provides: "(a) The Local Government Commission and the School of Government at the University of North Carolina at Chapel Hill shall convene a working group to develop and recommend statutory parameters for fund balances maintained by local boards of education and for disputes related to the capital outlay fund. The working group shall include at least one representative from each of the following groups: the North Carolina Association of County Commissioners, the North Carolina School Boards Association, and the North Carolina Association of School Business Officers. The working group shall produce findings and recommendations on the following issues: "(1) Relating to fund balances maintained by local boards of education the following: "a. Minimum and maximum fund balances, with a focus on unencumbered funds. "b. Appropriate uses of fund balances. "c. Annual reporting requirements for fund balances. "d. A process for factoring fund balances into annual local education budgets. "e. The role of boards of county commissioners, if any, in determining the use of fund balances. "(2) Relating to capital outlay funds, a mechanism for calculation by formula or other means to resolve disputes related to capital outlay as alternatives to litigation. "(b) No later than March 30, 2019, the working group shall report its findings and recommendations, including statutory parameters and any proposed legislation, to the Joint Legislative Education Oversight Committee." Session Laws 2018-83, s. 4, made the amendment of subsection (a) of this act by Session Laws 2018-83, s. 2, effective June 25, 2018, and applicable beginning with budget ordinances adopted on or after that date. Effect of Amendments. - Session Laws 2018-83, s. 2, inserted "for the capital outlay fund" following "G.S. 115C-431" in subsection (a). For effective date and applicability, see editor's note.