GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 6*

Short Title:  School Flexibility/Accountability.	(Public)

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Sponsors: Representatives Preston, Russell, Daughtry, Hayes, Brawley, Cummings, Gardner, Miner, Mitchell, Pate; Aldridge, Arnold, Baker, Barbee, Berry, Bowie, J. Brown, Buchanan, Cansler, Capps, Carpenter, Clary, Cocklereece, Creech, Culp, Davis, Decker, Dickson, Dockham, Eddins, Edwards, Esposito, Grady, Gray, Hiatt, Hill, Holmes, Howard, Ives, Justus, Kiser, Lemmond, McCombs, McMahan, K. Miller, Morgan, Neely, Nichols, Pulley, Rayfield, Reynolds, Robinson, Sexton, Sharpe, Sherrill, Shubert, Snowden, Tallent, Thompson, Weatherly, C. Wilson, G. Wilson, and Wood.

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Referred to:  Appropriations, Subcommittee on Education.

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January 26, 1995

A BILL TO BE ENTITLED
AN ACT TO GRANT ADDITIONAL MANAGEMENT FLEXIBILITY TO LOCAL BOARDS OF EDUCATION, TO ENSURE THAT LOCAL BOARDS OF EDUCATION ARE HELD ACCOUNTABLE FOR THE USE OF THAT FLEXIBILITY, AND TO ASSESS THE RELATIONSHIP BETWEEN EXPENDITURES FOR PUBLIC SCHOOLS AND STUDENT PERFORMANCE.
The General Assembly of North Carolina enacts:
––-LOCAL MANAGEMENT FLEXIBILITY
Section 1. (a) Effective July 1 1995, funding categories in the Public School Fund are combined as follows:
Old Funding Allotments	New Funding Allotments
(1)	Superintendents;	Administrative Allotment –
School administrators;	Central Office
Finance officers;
Maintenance supervisors;
Child nutrition - super-
vision.
(2)	Classroom Teachers - regular;	Classroom Teachers
Math, Science, and
Computer Teachers;
Classroom teachers - Program
Enhancement.
(3)	Exceptional Children -	Exceptional Children
State Aid and Related
Services; Preschool
Handicapped.
(4)	Summer School - Instruction,	Remediation
Remediation Support, Trans-
portation; Dropout Prevention/
Students at Risk/In-School
Suspension.
(5)	Child Nutrition - Staff	Staff Development
Development; Staff development -
Finance Officers; Staff 
Development - K-12.
(6)	Teacher Assistants - 	Noninstructional
Regular; Clerical 	Support Personnel.
Assistants; Custodians.
(b)	The State Board of Education shall adopt formulas for computing the new allotments.  The formula for the new funding allotment for Administrative - Central Office shall provide for a dollar allotment and not a position allotment.
(c)	Funds allotted for the new funding allotment for Remediation for the 1995-96 fiscal year shall remain available for expenditure until September 1, 1996;  funds allotted for the 1996-97 fiscal year and subsequent fiscal years shall become available for expenditure on September 1 of that fiscal year and shall remain available for expenditure until August 31 of the next fiscal year.
Sec. 2.  G.S. 115C-301(b) reads as rewritten:
"(b)	Allocation of Positions. – The State Board of Education is authorized to adopt rules to allot instructional personnel and teachers, within funds appropriated.  These rules shall encourage local boards of education to use instructional support personnel funds for teacher positions to reduce class size at all grade levels.  These rules shall also permit local boards of education to use noninstructional support personnel funds for teacher positions to reduce class size in kindergarten through the third grade."
Sec. 3.  G.S. 115C-238.6(a) reads as rewritten:
"(a)	Prior to June 30 each year, the State Superintendent shall review local school improvement plans submitted by the local school administrative units in accordance with policies and performance indicators adopted by the State Board of Education. If the State Superintendent approves the plan for a local school administrative unit, that unit shall participate in the Program for the next fiscal year.
If a local plan contains a request for a waiver of State laws, regulations, or policies, in accordance with G.S. 115C-238.3(b1)	or (b2), the State Superintendent shall determine whether and to what extent the identified laws, regulations, or policies should be waived.  The State Superintendent shall present that plan and his determination to the State Board of Education. If the State Board of Education deems it necessary to do so to enable a local unit to reach its local accountability goals, the State Board, only upon the recommendation of the State Superintendent, may grant waivers of:
(1)	State laws pertaining to class size other than kindergarten class size, teacher certification, assignment of teacher assistants, the use of funds for noninstructional support personnel so that these funds may be used for teacher positions to reduce class size in grades four and five, the use of State-adopted textbooks, and the purposes for which State funds for the public schools may be  used: Provided, however, the State Board of Education shall not permit the use of funds for teachers for administrator, instructional support personnel, or noninstructional support personnel positions.
(2)	All State regulations and policies, except those pertaining to State salary schedules, school employee benefits, the Basic Education Instructional Program, the employment system for public school teachers and administrators set out in G.S. 115C-325, health and safety codes, compulsory school attendance, the minimum lengths of the school day and year, and the Uniform Education Reporting System.
The provisions of G.S. 115C-12(16)b. regarding the placement of State-allotted office support personnel, teacher assistants, and custodial personnel on the salary schedule adopted by the State Board shall not be waived.
Except for waivers requested by the local board in accordance with G.S. 115C-238.3(b2)	for central office staff, waivers shall be granted only for the specific schools for which they are requested in building-level plans and shall be used only under the specific circumstances for which they are requested.
The State Board shall review all waivers granted and shall determine whether the State Board should consider repealing the rules waived and whether the State Board should consider recommending to the General Assembly the repeal of laws waived."
Sec. 4.  Notwithstanding Section 19.17(1) of Chapter 769 of the 1993 Session Laws, the funds allocated in that section for school psychologists, social workers, and guidance counselors for kindergarten through the eighth grade in accordance with the Basic Education Program may be used for teachers to reduce class size at all grade levels and local boards of education are encouraged to use these funds for teachers to reduce class size.
Notwithstanding Section 19.17(1) of Chapter 769 of the 1993 Session Laws, local school administrative units are not required to comply with the staffing requirements of the Basic Education Program regarding school psychologists, social workers, and guidance counselors for kindergarten through the eighth grade.
––-FISCAL ACCOUNTABILITY
Sec. 5. The General Assembly finds that the additional management flexibility with regard to the operation of the public schools and to the expenditure of State funds for the public schools given to local boards of education in this act make it imperative that the State have the ability to ensure the proper use of that flexibility; therefore, the State Board of Education shall develop a plan for modifying or expanding the Uniform Education Reporting System to provide information on the use of funds at the school level.  The plan shall provide information that will enable the General Assembly to determine how much each school in the State spends for classroom teachers, instructional support personnel, noninstructional support personnel, administration, textbooks, educational supplies and equipment, and other purposes.
The State Board shall report to the General Assembly prior to May 1, 1995, on the plan it develops.  The report shall set out any legislation or additional funds necessary to implement the plan.
––-ASSESSMENT OF STUDENT PERFORMANCE
Sec. 6.  The State Board shall consider changes in the student performance assessment system so that the system emphasizes the basics - reading, writing, and mathematics.  The State Board shall also examine methods of relating expenditures for the public schools to improvements in student performance.
The State Board shall report to the General Assembly prior to May 1, 1995, on the results of its study.  The report shall set out any legislation or additional funds necessary to implement the State Board's recommendations.
Sec. 7.  G.S. 115C-12 is amended by adding a new subdivision to read:
"(1a)	To Submit a Budget Request to the Director of the Budget. – The Board shall submit a budget request to the Director of the Budget in accordance with G.S. 143-6.  In addition to the information requested by the Director of the Budget, the Board shall provide an analysis relating each of its requests for funds to anticipated improvements in student performance."
––-EFFECTIVE DATES
Sec. 8. Sections 1, 2, and 4 of this act become effective July 1, 1995.  The remainder of this act is effective upon ratification.