A BILL TO BE ENTITLED
AN ACT TO PROVIDE STUDENTS IN THE PUBLIC ScHOOLS WITH A SOUND BASIC EDUCATION AS REQUIRED BY THE ConSTITUTION OF NORTH CAROLINA.
The General Assembly of North Carolina enacts:

PART I. TITLE OF ACT AND PURPOSE
SECTION 1.1.  This act shall be known as the "Sound Basic Education Act of 2005".
SECTION 1.2.  The General Assembly finds that:
(1)	All children can learn and succeed at higher levels in the public schools.
(2)	The North Carolina Constitution entitles every child to an opportunity to receive a sound basic education.
(3)	The North Carolina Supreme Court has defined a sound basic education as one that provides each student with the following:
a.	Sufficient ability to read, write, and speak the English language and a sufficient knowledge of fundamental mathematics and physical science to enable the student to function in a complex and rapidly changing society;
b.	Sufficient fundamental knowledge of geography, history, and basic economic and political systems to enable the student to make informed choices with regard to issues that affect the student personally or affect the student's community, State, and nation;
c.	Sufficient academic and vocational skills to enable the student to successfully engage in postsecondary education or vocational training; and
d.	Sufficient academic and vocational skills to enable the student to compete on an equal basis with others in further formal education or gainful employment in contemporary society.
(4)	Many North Carolina children are currently not receiving an opportunity to obtain a sound basic education as required by the Constitution as evidenced by low academic performance and a failure to graduate from school.
(5)	The North Carolina Supreme Court has concluded that legal responsibility for ensuring that all children have an opportunity to receive a sound basic education rests with the State of North Carolina.
(6)	There is a critical immediate need for the General Assembly to take tangible initial steps to ensure that students have an opportunity to obtain a sound basic education.
(7)	There also is a need for the General Assembly to develop a comprehensive long‑range strategic plan that determines how the State of North Carolina will fully ensure that all students have an opportunity to obtain a sound basic education.
SECTION 1.3.  The purpose of this act is to ensure that all North Carolina children have an equal opportunity to receive a sound basic education consistent with the North Carolina Constitution.

PART II. INVESTING MORE RESOURCES TO ENSURE A SOUND BASIC EDUCATION FOR ALL CHILDREN

FULLY FUND THE LOW‑WEALTH FORMULA OVER TWO YEARS AND REQUIRE REPORTS ON THE EXPENDITURE OF THESE FUNDS
SECTION 2.1.(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 Instruction the sum of sixteen million five hundred fifty thousand one hundred eleven dollars ($16,550,111) for the 2005‑2006 fiscal year and the sum of fifty‑eight million five hundred twenty‑seven thousand six hundred thirty‑five dollars ($58,527,635) for the 2006‑2007 fiscal year to be used for supplemental funds for the schools.
SECTION 2.1.(b)  Use of Funds for Supplemental Funding. – It is the intent that the expansion funds appropriated in 2005‑2006 and 2006‑2007 be used, if necessary, to recruit and retain high quality teachers. To that end:
(1)	If the teacher retention rate for a local school administrative unit is lower than the State average, at least fifteen percent (15%) of the expansion funds allocated to that unit in the 2005‑2006 fiscal year and at least twenty‑five percent (25%) of the expansion funds in the 2006‑2007 fiscal year shall be used for one or more of the following:
a.	Bonuses to recruit and retain instructional personnel.
b.	Full‑time mentors for instructional and instructional support personnel.
c.	Staff development.
(2)	The remainder of the expansion funds shall be used for one or more of the following:
a.	Bonuses to recruit and retain instructional personnel.
b.	Full‑time mentors for instructional and instructional support personnel.
c.	Instructional positions, instructional support positions, teacher assistant positions, clerical positions, school computer technicians, instructional supplies and equipment, staff development, and textbooks.
d.	Salary supplements for instructional personnel and instructional support personnel.
e.	Payment of an amount not to exceed ten thousand dollars ($10,000) for the plant operation contract cost charged by the Department of Public Instruction for services.
SECTION 2.1.(c)  Reports on the Expenditure of Funds. – Local boards of education shall report to the State Board of Education by October 1 of each year on the expenditure of these funds and how these funds were targeted and used to implement specific improvement strategies of each local school administrative unit and its schools, such as teacher recruitment and retention, closing the achievement gap, improving student accountability, meeting the needs of at‑risk students, and establishing and maintaining safe schools. The State Board of Education shall report this information annually by November 15 to the Office of State Budget and Management, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division.

EXPAND THE DISADVANTAGED STUDENT SUPPLEMENTAL FUND AND EVALUATE THE EFFECTIVENESS OF IMPROVEMENT STRATEGIES
SECTION 2.2.(a)  There is appropriated from the General Fund to the Department of Public Instruction the sum of one hundred million dollars ($100,000,000) for the 2005‑2006 fiscal year and the sum of two hundred million dollars ($200,000,000) for the 2006‑2007 fiscal year to local school administrative units to meet the needs of disadvantaged students. Except as provided in subsection (b) of this section, the State Board of Education shall allocate these funds on the basis of the fundable disadvantaged population in each local school administrative unit. Each local school administrative unit shall receive an equal amount for each student in the fundable disadvantaged population.
The fundable disadvantaged population for each unit shall be computed in accordance with the revised formula option presented by the Department of Public Instruction to the State Board of Education at its December 2004 meeting.
SECTION 2.2.(b)  For the 2005‑2006 fiscal year only, the State Board of Education shall hold harmless the 16 local school administrative units that received disadvantaged student supplemental funding for the 2004‑2005 fiscal year.  Each of these local school administrative units shall receive, at a minimum for the 2005‑2006 fiscal year, the amount of disadvantaged student supplemental funding it received for the 2004‑2005 fiscal year.
SECTION 2.2.(c)  Funds appropriated under this section shall be used to implement a plan jointly developed by each local school administrative unit and the LEA Assistance Program team that is based upon the needs of the students not achieving grade level proficiency or at‑risk of not graduating from school. Prior to the allotment of these funds, each plan shall be approved by the State Board of Education. All funds received pursuant to this section shall be used consistent with the policies and procedures adopted by the State Board of Education to enhance a local school administrative unit's ability to provide services to disadvantaged students. These funds shall not be used for teacher bonuses and supplements.
SECTION 2.2.(c)  To remain eligible for the resources provided in this section, local school administrative units must submit a report to the State Board of Education by October 1 of each year detailing the expenditure of the funds and the impact of these funds on student achievement. The State Board of Education shall report this information annually by November 15 to the Office of State Budget and Management, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division.

PART III. ESTABLISHMENT OF THE NORTH CAROLINA COMMISSION FOR A SOUND BASIC EDUCATION
SECTION 3.1.(a)  The North Carolina Commission for a Sound Basic Education is hereby established. The Commission shall conduct a comprehensive study to determine the professional development needs, instructional strategies, program development, and financial resources necessary to provide every North Carolina student, including students who have been excluded from the public schools, with an equal opportunity to receive a sound basic education as required by the North Carolina Constitution. The Commission shall also develop a comprehensive plan that will ensure that all children across North Carolina will have an equal opportunity to receive a sound basic education as required by the North Carolina Constitution. In addition, the Commission shall include as a part of the comprehensive study a cost analysis of the State funding required to fully implement the comprehensive plan.
SECTION 3.1.(b) The Commission shall include the following 22 members:
(1)	A cochair appointed by the President Pro Tempore of the N.C. Senate;
(2)	A cochair appointed by the Speaker of the N.C. House of Representatives;
(3)	Four members of the Senate appointed by the President Pro Tempore of the Senate;
(4)	Four members of the House of Representatives appointed by the Speaker of the House of Representatives;
(5)	Six at‑large members appointed by the President Pro Tempore of the Senate including at least one parent of a student in the public schools, representatives of education organizations, child advocacy groups, human services and child health care organizations, early education programs, and business organizations, and other individuals, groups, organizations, or State agencies that support the provision of a sound basic education for all children; and
(6)	Six at‑large members appointed by the Speaker of the House of Representatives of the Senate including at least one parent of a student in the public schools, representatives of education organizations, child advocacy groups, human services and child health care organizations, early education programs, and business organizations, and other individuals, groups, organizations, or State agencies that support the provision of a sound basic education for all children.
SECTION 3.1.(c)  The full Commission shall meet on a monthly basis. The Commission shall develop the necessary and appropriate committees and subcommittees to facilitate completion of its work. The committees and subcommittees shall meet as necessary to effectively conduct the work with which they are charged.
SECTION 3.1.(d)  Only members of the Commission may vote on any matter before the Commission.
SECTION 3.1.(e)  The comprehensive study and plan developed by the Commission shall:
(1)	Specify the State's educational standards, goals, and outcomes expected for all children in the State that represent a sound basic education.
(2)	Identify research‑based education practices, strategies, programs, and policies that will ensure that all North Carolina students have an equal opportunity to receive a sound basic education as required by the Constitution.
(3)	Delineate a plan for implementing the identified research‑based education practices, programs, and policies statewide. The plan shall include goals, objectives, and milestones to be met by certain dates.
(4)	Specify an action plan for ensuring that there is a competent, qualified teacher in every North Carolina classroom by the start of the 2007‑2008 school year.
(5)	Include strategies, practices, and policies designed to generate increased parental involvement at the school and local school administrative unit level.
(6)	Consider strategies, practices, and policies to provide learning opportunities to children from birth to school age, meet the need of children suspended or expelled from the public schools, provide children with "out‑of‑school" opportunities, and provide children with other opportunities to meet core Leandro functions.
(7)	Include an accountability plan and mechanisms to ensure that funds for education are (i) targeted exclusively toward meeting student needs, (ii) administered in a fiscally responsible manner, and (iii) effective in  providing students with the equal opportunity to receive a sound basic education.
(8)	Provide a cost analysis of the fiscal requirements to fully implement all components of the Commission's comprehensive plan statewide and a timeline for implementation.
SECTION 3.1.(f)  To aid the Commission in its analysis of the resources needed to fully implement the comprehensive plan for a basic education, the Commission shall contract for the performance of a "costing‑out study", to be replicated  every four years, to ascertain the resources required to offer all North Carolina children the opportunity to receive a sound basic education. For purposes of this section, a costing‑out study means a study that seeks to determine the funding necessary to provide the opportunity for each child to receive a sound basic education consistent with State standards and student objectives.
The Commission shall prepare a request for proposals for the conduct of the study required by this section, receive and evaluate the proposals, and contract with an appropriate independent entity or independent consultants with the requisite experience and knowledge to conduct a professional evaluation of:
(1)	The cost of the educational and other resources required by schools and school units so that they are able to offer all students the opportunity to receive a sound basic education.
(2)	The cost of the resources required by the Department of Public Instruction and the State Board of Education so that they are able to fulfill their responsibilities, including the resources needed to provide technical assistance to school units, and the costs to local school administrative units to improve their capacity to offer all students the opportunity to receive a sound basic education.
SECTION 3.1.(g)  The costing‑out study shall employ at least two of the following models:
(1)	The professional judgment model, which uses the active involvement of panels of education professionals and, through a series of simulation exercises undertaken over a number of days, designs instructional programs that would meet the needs of hypothetical schools with varying numbers of students living in poverty, students with disabilities, gifted and talented students, and English language learning students. The panel judgments are reviewed by experts and stakeholders and synthesized through regression analysis to determine the costs of providing the programs and services necessary for actual school units with their unique student demographics.
(2)	The successful schools model, which seeks schools to identify those schools or school units that have achieved a specified level of student performance, such as meeting State standards. The average level of expenditures in those schools or school units is then used to estimate the level of expenditure that would be required to achieve a similar level of student performance in other school units throughout the State, taking into account the differences in cost of living and in the number of students with extraordinary needs in each school unit.
(3)	The research‑based model, which identifies programs as effective based on recent educational research, determines the cost of the different aspects of the programs, and uses that cost figure to develop an adequate base of spending for every school, taking into account the unique demographics of each.
(4)	The econometric model that estimates school or school unit cost functions using econometric techniques to arrive at a mathematical equation that describes what is required to produce an average or acceptable level of educational achievement.
SECTION 3.1.(h)  The Commission shall provide opportunities for substantive and meaningful input into and development and review of the comprehensive plan by all stakeholders in the public education system. These stakeholders include, but are not limited to, students, parents, guardians, educators, school board members, education advocates, and child health professionals. Opportunities for input and review shall include, at minimum:
(1)	Six regional public forums held around the State prior to the initial development of the comprehensive plan to provide opportunities for public input as to the education‑related needs of children throughout North Carolina.
(2)	Regular distribution to local newspapers statewide of details of the plan and its current status and posting of the information on the Internet.
(3)	Providing stakeholders with the opportunity to identify representative members of stakeholder groups to be included as full participants in the Commission's processes for creating the comprehensive statewide plan.
(4)	Open meetings of the Commission and any committees it may create.
SECTION 3.1.(i)  The Commission shall make a final report to the General Assembly by March 15, 2006. The report shall include the details of the comprehensive plan, the results of the cost analysis, a proposed budget and timeline for implementing the plan beginning with the 2006‑2007 school year, and any statutory changes necessary to implement the comprehensive statewide plan.
SECTION 3.1.(j)  There is appropriated from the General Fund to the General Assembly the sum of five hundred thousand dollars ($500,000) for the 2005‑2006 fiscal year to carry out its work of the North Carolina Commission for a Sound Basic Education, including but not limited to, the hiring of commission staff, the public hearings, the costing‑out study, and the publication/distribution of the final report and  recommendations of the Commission. The Commission may supplement these funds with gifts, foundation grants, or other private funds donated for this purpose.

PART IV. EFFECTIVE DATE
SECTION 4.1  This act becomes effective July 1, 2005.