A BILL TO BE ENTITLED
AN ACT TO PROVIDE AN ANNUAL BONUS TO HIGH SCHOOL PRINCIPALS IF THE FOUR‑YEAR GRADUATION RATE INCREASES BY MORE THAN TEN PERCENT FROM THE PREVIOUS SCHOOL YEAR OR IF THE FOUR‑YEAR GRADUATION RATE EXCEEDS EIGHTY PERCENT.
Whereas, during the 2000‑2001 school year, nearly forty‑three percent (43%) of North Carolina's high school graduation‑aged students did not graduate from their high schools within four years; and
Whereas, eighteen counties across North Carolina had four‑year high school graduation rates below fifty percent (50%) in the 2000‑2001 school year, and only one county exceeded an eighty percent (80%) high school graduation rate; and
Whereas, approximately fourteen percent (14%) of young North Carolinians between the ages of 18 and 24 still had not completed high school as of school year 2000‑2001; and
Whereas, economic well‑being and employment prospects are profoundly diminished for young adults who have not completed high school, and their economic, social and employment status predictably will become worse in the years ahead; and
Whereas, the federal No Child Left Behind Education Act requires four‑year graduation rates far above those presently achieved across North Carolina; and
Whereas, the current statewide four‑year graduation rate is so low as to undermine the right of every young North Carolinian to a sound basic education; and
Whereas, those youth and young adults who have not graduated from high school in four years are more likely to be involved in the juvenile justice system or adult criminal justice system and to disproportionately need and use public social, health, and mental health services, institutions, and assistance; and
Whereas, it is in the best interests of the young people themselves, their communities, the State's economy, and the taxpayers of North Carolina to encourage high school graduation in four years; and
Whereas, effective high school principals play a key role in the four‑year high school graduation rate and would give this outcome greater priority were there to be an incentive bonus for significantly improving this rate; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.  For the 2003‑2004 State fiscal year and/or for the 2004‑2005 state fiscal year, any North Carolina public high school principal shall receive a one‑time bonus payment equal to:
(1)	One percent (1%) of her/his State‑paid salary for the prior school year if the four‑year graduation rate at the principal's high school has increased by more than ten percent (10%) during that prior school year or
(2)	One percent (1%) of her/his State‑paid salary for the prior school year if the four‑year graduation rate continues to exceed (eighty percent) 80% during that prior school year.
The definition of "four‑year graduation rate" shall conform entirely with the "complex" definition established in the No Child Left Behind Education Act of 2001 and regulations adopted pursuant to that act.
The annual lump sum bonus shall be paid in accordance with the guidelines and procedures established by the State Board of Education. 
SECTION 2.  This act becomes effective July 1, 2003.