GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	1 

SENATE BILL 882*

Short Title:  Increase Flexibility/School Funds.	(Public)
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Sponsors: Senators Lee; Ward, Walker, and Warren.
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Referred to:  Education/Higher Education.
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April 19, 1993

A BILL TO BE ENTITLED
AN ACT TO PROVIDE GREATER FLEXIBILITY IN LOCAL SCHOOL BOARD EXPENDITURES AND PROVIDE INCENTIVES FOR GREATER FISCAL RESPONSIBILITY.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 115C-12 is amended by adding a new subdivision to read:
"(5a)	Consolidation of Allotments. – Beginning with the 1993-94 fiscal year, the State Board of Education shall provide for increased flexibility in the use of State funds for local school administrative units by combining the following existing funding allotments:
a.	The allotments for school administrators and finance officers shall be combined and allocated under an allotment for 'School Administration';
b.	The allotments for clerical assistants, teacher assistants, and custodians shall be combined and allocated under an allotment for 'Noncertified Personnel';
c.	The allotments for summer school, remediation, dropout prevention, community schools, duty-free period, and sports medicine shall be combined and allocated under an allotment for 'Extended Services'; and
d.	The allotments for staff development and consolidated allotment shall be combined and allocated under an allotment for 'Consolidated Allotment'.
For budgetary reporting and accounting purposes, the local school administrative units shall continue to provide expenditure data at such detailed levels as required by the State Board of Education.  Presentation, control, and reporting of salary and salary-related objects of expenditure shall be in accordance with G.S. 115C-12(18), other applicable statutes, and directives of the State Board of Education and the Director of the Budget.
At the close of the fiscal year, the unencumbered balances of funds allocated to the local school administrative units by the State Board of Education under the Extended Services Allotment and Consolidated Allotment shall not revert to the State treasury and shall be carried forward to the next fiscal year.  Local school administrative units may use these unencumbered balances in the Extended Services Allotment and the Consolidated Allotment for one-time expenditures that do not impose additional financial obligations on the State or the local school administrative unit and that directly contribute to improved student performance."
Sec. 2.  G.S. 115C-47 is amended by adding two new subdivisions to read:
"(36)	To Enter into Interlocal Cooperative Agreements. – Local boards of education are authorized and encouraged to enter into agreements with other local boards of education providing for the shared delivery of educational and other services to students.  These agreements shall be developed and implemented in accordance with Part 1 of Article 20 of Chapter 160A of the General Statutes.
(37)	To Contract with Private Businesses. – Local boards of education are authorized and encouraged to investigate whether private businesses can provide maintenance services, janitorial services, clerical services, or other similar services for less cost or more efficiently than the local boards.  When a local board of education determines that a private business can provide one or more of those services for less cost or more efficiently, the local board is authorized and encouraged to contract with that private business for those services.  The contract shall be bid and awarded in accordance with State law and the rules and regulations of the Secretary of Administration and State Board of Education."
Sec. 3.  This act is effective upon ratification.