GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 1500

Short Title:  Supplemental School Funding.	(Public)
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Sponsors: Representatives Rogers, Wicker; Albertson, Anderson, Beard, Bowen, Bowman, Chapin, Church, N.J. Crawford, Cunningham, DeVane, Dial, Diamont, Ethridge, Foster, Green, H. Hunter, Hurley, James, Kerr, Lilley, Luebke, Lutz, McGee, McLawhorn, Mavretic, Mercer, Michaux, Oldham, Russell, Smith, Thompson, Wainwright, Warner, and Woodard.
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Referred to:  Appropriations.
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June 2, 1992

A BILL TO BE ENTITLED
AN ACT TO APPROPRIATE FUNDS FOR SUPPLEMENTAL FUNDS IN LOW-WEALTH COUNTIES TO ALLOW THOSE COUNTIES TO ENHANCE THE INSTRUCTIONAL PROGRAM AND STUDENT ACHIEVEMENT.
The General Assembly of North Carolina enacts:
Section 1.  Section 201.2 of Chapter 689 of the 1991 Session Laws, as rewritten by Section 47.3 of Chapter 761 of the 1991 Session Laws, reads as rewritten:
"(a)	The General Assembly finds that it is appropriate to provide supplemental funds in low-wealth counties to allow those counties to enhance the instructional program and student achievement;  therefore, there is appropriated from the General Fund to the Department of Public Education the sum of twenty-five million dollars ($25,000,000) for the 1992-93 fiscal year to be used for supplemental funds for schools.  These funds are in addition to the funds in the amount of six million dollars ($6,000,000) appropriated in Chapter 689 of the 1991 Session Laws for this purpose.  The State Board of Education shall allocate these funds to the counties in which the adjusted property tax base per student for that county is less than the State average adjusted property tax base per student.  The amount each such county receives shall be its pro rata share of the funds appropriated for supplemental funding in this act, computed as follows:
(1)	Divide the county adjusted property tax base per student by the State adjusted property tax base per student;
(2)	Multiply the resulting amount by the State average current expense appropriations per student;
(3)	Subtract the resulting amount per student from the State average county current expense appropriations per student; and
(4)	Multiply the resulting amount by the average daily membership of students in the county.
The funds a county receives shall be allocated to each local school administrative unit, located in whole or in part in the county, based on the average daily membership of the county's students in the school units.  
This formula is solely a basis for distribution of supplemental funding for low-wealth counties and is not intended to reflect any measure of the adequacy of the educational program or funding for public schools.  The formula is also not intended to reflect any commitment by the General Assembly to appropriate any additional supplemental funds for low-wealth counties.
(b)	Funds received pursuant to this section shall be used only to provide instructional positions, instructional support positions, teacher assistant positions, clerical positions, instructional supplies and equipment, staff development, and textbooks.
(c)	Nonsupplant Requirement. – A county in which a local school administrative unit receives funds under this section shall use the funds to supplement and not supplant existing State and local funding for public schools.
The Local Government Commission shall analyze the budgets and the expenditures of school administrative units that receive funds under this section in light of their budgets and expenditures for the previous year and shall determine whether those funds were used to supplement and not supplant State and local funding for public schools.  The Local Government Commission shall report the results of its study to the State Board of Education, to the Joint Legislative Education Oversight Committee, and to the Appropriations Committees of the Senate and the House of Representatives, prior to May 1, 1992, and May 1, 1993.
(d)	Definitions. –   As used in this act:
(1)	'Average daily membership' means average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual, adopted by the State Board of Education.
(2)	'County adjusted property tax base per student' means the total assessed property valuation for each county, adjusted using a weighted average of the three most recent annual sales assessment ratio studies, divided by the total number of students in average daily membership who reside within the county, and further adjusted using the ratio of the county's per capita income to the State average per capita income.
(3)	'Effective county tax rate' means the actual county tax rate multiplied by a weighted average of the three most recent annual sales assessment ratio studies.
(4)	'Per capita income' means the per capita income according to the most recent report of the United States Department of Commerce, Bureau of Economic Analysis.
(5)	'Sales assessment ratio studies' means sales assessment ratio studies performed by the Department of Revenue under G.S. 105-289(h).
(6)	'State adjusted property tax base per student' means the sum of all county adjusted property tax bases divided by the total number of students who reside within the State.
(7)	'State average current expense appropriations per student' means the most recent State total of county current expense appropriations to public schools, as reported by counties in the annual county financial information report to the State Treasurer, divided by the total State average daily membership for that year.
(8)	'Weighted average of the three most recent annual sales assessment ratio studies' means the weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available.  If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used.  If property has been revalued the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used.
(e)	Minimum Effort Required. – Counties that receive funding under this section shall maintain an effective county tax rate that is at least one hundred percent (100%) of the State average effective tax in the most recent year for which data are available.  Any county that fails to maintain an effective county tax rate that is at least one hundred percent (100%) of the State average effective tax in the most recent year for which data are available shall refund to the State the entire amount of its allocation under this section.
(f)	Counties that receive funds under this section shall report to the State Board of Education before March 1 each year on how they are using the funds for the fiscal year.  The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to May 1, 1992, and May 1, 1993, on how the funds are being used."
Sec. 2.  This act becomes effective July 1, 1992.