A BILL TO BE ENTITLED
AN ACT to increase local flexibility regarding the use of funds for teacher compensation.
The General Assembly of North Carolina enacts:
SECTION 1.  Notwithstanding any other provision of law, funds appropriated to increase teacher and principal compensation for the 2007‑2008 and subsequent fiscal years shall be allotted to local school administrative units to provide additional compensation to State‑paid employees paid on the teacher and principal salary schedules.  Local boards of education shall use these funds for one or more of the following:
(1)	Across‑the‑board salary increments,
(2)	Performance‑based salary schedules,
(3)	Critical‑need salary schedules, and
(4)	Other salary increments necessary to meet local staffing needs.
Local boards of education shall report to the State Board of Education by January 1 of each year on the use of these funds.
SECTION 2.  This act becomes effective July 1, 2007.