A BILL TO BE ENTITLED
AN ACT to direct the board of governors to modify the "student credit hours enrollment change funding formula" so that the constituent institutions are encouraged to recruit and educate future classroom teachers.
Whereas, it is the policy of the State of North Carolina to maintain teacher education programs and school administrator programs of the highest quality in order to enhance the competence of professional personnel certified in North Carolina; and
Whereas, in 2002, the General Assembly found that there is a shortage of qualified classroom teachers available in certain areas of certification, grade levels, and geographical areas of the State; and
Whereas, The University of North Carolina is the major provider of teacher education leading to certification for K‑12 teachers in North Carolina; and
Whereas, the Board of Governors of The University of North Carolina has determined that certain special institutional missions and institutional service to special undergraduate populations require funding levels beyond those provided by the basic factors in the "student credit hours enrollment change funding formula"; and 
Whereas, accordingly, the model has been designed to provide recognition of the additional funding requirements for four special situations:
(1)	Commitment to disadvantaged student populations ‑ 5% premium.
(2)	Commitment to small average class size ‑ 10% premium.
(3)	Diseconomies of scale experienced by small institutions ‑ 5% premium.
(4)	Special mission as a public liberal arts institution for undergraduates ‑ 10% premium; and
Whereas, to encourage the constituent institutions of The University of North Carolina to recruit and educate future classroom teachers, an additional modification of the funding formula is needed that would provide that the projected changes in student credit hours for teacher education courses shall be calculated using the highest "instructional‑position salary rate" among the constituent institutions; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.  The Board of Governors of The University of North Carolina shall modify the "student credit hour enrollment change funding formula" for the constituent institutions as provided by this section.  The formula shall be modified to provide that, in addition to those factors already considered, all funding increases for the 2004‑2005 fiscal year and each subsequent year based on projected changes in student credit hours for teacher education courses at the baccalaureate, masters, and doctoral levels shall be calculated using the highest "instructional‑position salary rate" among the constituent institutions.  As used in this section, the term "instructional‑position salary rate" means the "Average Teaching Salary" multiplied by any applicable "Undergraduate Cost Factor".
SECTION 2.  This act becomes effective July 1, 2003.