A BILL TO BE ENTITLED
AN ACT TO ADDRESS FUNDING DEFICIENCIES AND NEEDED ENHANCEMENTS IN NORTH CAROLINA'S PUBLIC SCHOOLS.
The General Assembly of North Carolina enacts:

part 1.  Foundational Funding for Public Schools

lea adjustment
SECTION 1.1.  The General Assembly finds that the funding formulas outlined in statutes for operations of the public schools are underfunded by three hundred seventy‑six million one hundred twenty‑four thousand two hundred seventy‑nine dollars ($376,124,279) due to the creation of the LEA Adjustment. The current level of the LEA Adjustment requires public schools to return four and six‑tenths percent (4.6%) of funding appropriated by the General Assembly based on legislated formulas. These reductions must come from critical classroom based allotments that impair the public schools' ability to address the educational needs of their students. During the 2012‑2013 fiscal year, public schools returned (i) funding for 4,300 classroom teachers and 444 career and technical education teachers and (ii) millions of dollars in funding for key support programs to implement the required LEA Adjustment.
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 2013‑2014 fiscal year to reduce the LEA adjustment. It is the intent of the General Assembly to eliminate the remainder of the LEA adjustment by the 2015‑2016 fiscal year.

teacher salaries
SECTION 1.2.  The General Assembly finds that North Carolina's teachers earn, on average, ten thousand dollars ($10,000) less than the national average. Teachers in North Carolina have the third lowest salary in the 12 southeastern states. Salary steps for teachers in North Carolina have been frozen for over five years. Teachers in North Carolina have had a salary increase of only one and two‑tenths percent (1.2%) in five years. A beginning teacher with a bachelor's degree in North Carolina has a base salary of thirty thousand eight hundred dollars ($30,800) until that teacher has five years of experience. For these reasons, it is the intent of the 2013 General Assembly to provide a significant salary increase for teachers for the 2013‑2014 fiscal year.

Part ii.  Funding to Implement Legislated Initiatives

standardized tests
SECTION 2.1.  There is appropriated from the General Fund to the Department of Public Instruction the sum of eight million dollars ($8,000,000) for the 2013‑2014 fiscal year and the sum of eight million dollars ($8,000,000) for the 2014‑2015 fiscal year to provide recurring funding for all eighth graders to take EXPLORE tests, all tenth graders to take PLAN tests, and all eleventh graders to take the ACT tests.

Comprehensive Reading Initiative
SECTION 2.2.  There is appropriated from the General Fund to the Department of Public Instruction the sum of fifty‑two million five hundred fifty‑four thousand twenty‑three dollars ($52,554,023) for the 2013‑2014 fiscal year and the sum of sixty‑six million seven hundred eighty‑seven thousand two hundred fifty‑six dollars ($66,787,256) for the 2014‑2015 fiscal year to provide recurring funding to support (i) a wide variety of initiatives designed to work holistically to raise student reading achievement and (ii) some math instruction. These initiatives shall include a reading achievement plan, summer reading camps and extended learning opportunities, an alternative reading assessment, a reading plan for parents, tutoring for retained third graders, and progress reports for retained third graders.

Kindergarten Entry Assessment
SECTION 2.3.  There is appropriated from the General Fund to the Department of Public Instruction the sum of seven hundred fifty thousand dollars ($750,000) for the 2014‑2015 fiscal year to provide recurring funding for kindergarten entry assessments for all entering kindergarten students beginning with the 2014‑2015 school year.

Kindergarten Developmental Screening
SECTION 2.4.  There is appropriated from the General Fund to the Department of Public Instruction the sum of seven hundred fifty‑four thousand five hundred eighty‑eight dollars ($754,588) for the 2014‑2015 fiscal year to provide recurring funding for developmental screening of early language, literacy, and math skills in kindergarten.

evaas
SECTION 2.5.  There is appropriated from the General Fund to the Department of Public Instruction the sum of eight hundred fifty thousand dollars ($850,000) for the 2013‑2014 fiscal year and the sum of eight hundred fifty thousand dollars ($850,000) for the 2014‑2015 fiscal year to provide recurring funding to support the development and implementation of the Education Value‑Added Assessment System (EVAAS).

Classroom Technology
SECTION 2.6.  There is appropriated from the General Fund to the Department of Public Instruction the sum of sixty million dollars ($60,000,000) for the 2013‑2014 fiscal year and the sum of sixty million dollars ($60,000,000) for the 2014‑2015 fiscal year to provide recurring funding to accommodate technology needs in the public schools during implementation of the Instructional Improvement System. These technology needs include handheld devices, digital content, network infrastructure, and technology facilitators in each middle school. These funds shall be used to supplement and not supplant funding for textbooks and instructional materials used to acquire digital and hard cover classroom resources.

Transportation – Fuel Shortage
SECTION 2.7.  There is appropriated from the General Fund to the Department of Public Instruction the sum of twenty‑three million dollars ($23,000,000) for the 2013‑2014 fiscal year and the sum of twenty‑three million dollars ($23,000,000) for the 2014‑2015 fiscal year to provide recurring funding to address the gap between budgeted and actual fuel costs.

Additional NCVPS Staff and Operational Funding
SECTION 2.8.  There is appropriated from the General Fund to the Department of Public Instruction the sum of nine hundred eighty‑nine thousand four hundred fifty‑four dollars ($989,454) for the 2013‑2014 fiscal year and the sum of nine hundred ninety‑one thousand seventy‑two dollars ($991,072) for the 2014‑2015 fiscal year for the North Carolina Virtual Public School (NCVPS) program. These funds shall be used to provide support for quality assurance processes and teacher effectiveness for the NCVPS program.

Additional Charter Schools Staff
SECTION 2.9.  There is appropriated from the General Fund to the Department of Public Instruction the sum of three hundred twenty thousand dollars ($320,000) for the 2013‑2014 fiscal year and the sum of three hundred twenty thousand dollars ($320,000) for the 2014‑2015 fiscal year to provide recurring funding for additional charter schools staff. These funds shall be used to increase the number of charter school consultants at the Department and to provide funding for the Charter School Advisory Council to conduct the business of reading and reviewing charter applications.

Special State Reserve for Children with Special Needs
SECTION 2.10.  There is appropriated from the General Fund to the Department of Public Instruction the sum of one million three hundred fifty thousand dollars ($1,350,000) for the 2013‑2014 fiscal year and the sum of one million three hundred fifty thousand dollars ($1,350,000) for the 2014‑2015 fiscal year to provide recurring funding for a special State reserve for children with special needs. These funds shall be used to increase the available funds to support local school administrative units and charter schools that serve high‑cost and high‑need students with disabilities who enroll during the first 60 days of school.

NC Teacher Corps
SECTION 2.11.  There is appropriated from the General Fund to the Department of Public Instruction the sum of one million eight hundred thousand dollars ($1,800,000) for the 2014‑2015 fiscal year to provide recurring funding for the North Carolina Teacher Corps Program.
The NC Teacher Corps, which is modeled on the highly‑successful Teach For America program, places recent college graduates with connections to North Carolina as teachers in low‑achieving schools in targeted partner school districts across the State. The program requires a two‑year commitment from participants and provides intensive summer training, ongoing coaching and mentoring, and the ability to earn a North Carolina teaching license. These funds will be used to support 250 teachers in the 2014‑2015 fiscal year.

Part iii.  Funding for Programs that Have Great Promise to Improve Student Performance

Statewide Instructional Improvement System
SECTION 3.1.  There is appropriated from the General Fund to the Department of Public Instruction the sum of six hundred twelve thousand one hundred twenty‑five dollars ($612,125) for the 2013‑2014 fiscal year and the sum of four million seventy‑one thousand dollars ($4,071,000) for the 2014‑2015 fiscal year to provide recurring funding for the  Statewide Instructional Improvement System. These funds shall be used (i) to cover the contract for learning objects and content libraries that are typically sold with the Online Learning Exchange products for Science and Social Studies for grades K‑12, (ii) for assessment items from Pearson's new "Next Generation" assessment item bank for English/Language Arts and Math for grades K‑12, (iii) for assessment items that are typically sold with NWEA Formative Assessment item bank for Science and Social Studies, and (iv) for Open Education Resources (OER) for English/Language Arts, Math, Science, and Social Studies.

professional development
SECTION 3.2.  There is appropriated from the General Fund to the Department of Public Instruction the sum of ten million six hundred thousand dollars ($10,600,000) for the 2014‑2015 fiscal year to provide recurring funding for professional development. These funds shall be used to continue developing and supporting local capacity to ensure that all teachers and principals have ongoing access to efficient and effective training and materials that support their professional improvement.
Turning Around the Lowest Achieving Schools
SECTION 3.3.  There is appropriated from the General Fund to the Department of Public Instruction the sum of eleven million nine hundred thousand dollars ($11,900,000) for the 2014‑2015 fiscal year to provide recurring funding to turn around the lowest achieving schools. These funds shall be used to improve and sustain student academic achievement in the these schools by building capacity in the schools and their local school administrative units.

Incentives for Lowest‑Achieving Schools
SECTION 3.4.  There is appropriated from the General Fund to the Department of Public Instruction the sum of nine million dollars ($9,000,000) for the 2014‑2015 fiscal year to provide recurring funding to reward and retain effective educators in hard‑to‑staff schools.

Regional Leadership Academies
SECTION 3.5.  There is appropriated from the General Fund to the Department of Public Instruction the sum of eight million dollars ($8,000,000) for the 2014‑2015 fiscal year to provide recurring funding for Regional Leadership Academies. These funds shall be used to increase the number of principals prepared to lead transformational change in the State's lowest achieving schools by continuing to fund the Northeast, Sandhills, and Piedmont Triad Academies.

Induction Support in High‑Need Schools
SECTION 3.6.  There is appropriated from the General Fund to the Department of Public Instruction the sum of eleven million nine hundred thousand dollars ($11,900,000) for the 2014‑2015 fiscal year to provide recurring funding to provide coaching and support for newly certified teachers in the lowest‑achieving schools to increase the likelihood that they will be successful and remain in teaching.

Teach For America
SECTION 3.7.  There is appropriated from the General Fund to the Department of Public Instruction the sum of two million five hundred thousand dollars ($2,500,000) for the 2014‑2015 fiscal year to provide recurring funding for Teach for America. These funds shall be used to place and support 125 motivated, effective teachers in low‑achieving school districts in North Eastern North Carolina.

Student Survey of Teacher Performance
SECTION 3.8.  There is appropriated from the General Fund to the Department of Public Instruction the sum of one million five hundred thousand dollars ($1,500,000) for the 2014‑2015 fiscal year to provide recurring funding for a student survey of teacher performance. These funds shall be used to collect and analyze student perceptions about classroom culture and practices for use as one of multiple factors reflecting on teacher effectiveness and on helping teachers improve.

part iv.  Funding Needed to Support the School for the Blind and the Schools for the Deaf

summer school initiative 
SECTION 4.1.  There is appropriated from the General Fund to the Department of Public Instruction the sum of four hundred thirteen thousand nine hundred four dollars ($413,904) for the 2013‑2014 fiscal year and the sum of three hundred thirty‑seven thousand seven hundred fifty‑four dollars ($337,754) for the 2014‑2015 fiscal year to (i) provide nonrecurring funding to replace old, worn, unsafe, and damaged dorm furniture at the Eastern North Carolina School for the Deaf for a new summer school initiative for the Eastern North Carolina School for the Deaf and (ii) recurring funding for the summer school initiative. The initiative shall consist of a six‑week residential program for 100 students at the North Carolina School of Science and Math to host a six‑week residential program and three sessions of a two‑week deaf immersion program for 50 hearing‑impaired students.

Career Technical Education Program
SECTION 4.2.  There is appropriated from the General Fund to the Department of Public Instruction the sum of two hundred seventy‑four thousand five hundred thirty‑eight dollars ($274,538) for the 2013‑2014 fiscal year and the sum of two hundred thirty‑eight thousand five hundred thirty‑eight dollars ($238,538) for the 2014‑2015 fiscal year to provide recurring funding for a career technical education program for students at The North Carolina School for the Deaf in Morganton.

Technology for the governor morehead school
SECTION 4.3.  There is appropriated from the General Fund to the Department of Public Instruction the sum of three hundred eighteen thousand seventy‑three dollars ($318,073) for the 2013‑2014 fiscal year and the sum of five hundred six thousand sixty‑eight dollars ($506,068) for the 2014‑2015 fiscal year to provide recurring funding for school technology at the Governor Morehead School. These funds shall be used for (i) one instructional technology support position, (ii) low vision and Braille technology, (iii) tablet technology, (iv) SMART boards, and (v) computer/laptop technology replacement.

safety equipment for the governor morehead school
SECTION 4.4.  There is appropriated from the General Fund to the Department of Public Instruction the sum of eight hundred fifty‑eight thousand dollars ($858,000) for the 2013‑2014 fiscal year for the purchase of safety equipment for the Governor Morehead School and the Eastern North Carolina School for the Deaf. Funds allocated to the Governor Morehead School shall be used to purchase (i) a campus‑wide phone system that includes an auto‑dialing system that will send messages immediately to the police or fire department in case of emergencies, (ii) a card‑key access system for campus buildings, (iii) an update to the current fire alarm system, (iv) a campus‑wide siren that will enable the school to notify all students and staff in case of emergency such as tornado and other severe emergencies, and (v) a voice‑activated electronic lobby guard installed at the Lineberry Building. Funds allocated to the Eastern North Carolina School for the Deaf shall be used to restrict access to the campus by establishing a fence and a staffed guard house at the entrance to the school.

Preschool and Early Intervention Programs
SECTION 4.5.  There is appropriated from the General Fund to the Department of Public Instruction the sum of four hundred thirty‑six thousand two hundred forty‑four dollars ($436,244) for the 2013‑2014 fiscal year and the sum of four hundred thirty‑six thousand two hundred forty‑four dollars ($436,244) for the 2014‑2015 fiscal year to provide recurring funding for preschool and early intervention programs at Governor Morehead School and the Eastern North Carolina School for the Deaf. These funds shall be used to (i) increase months of employment for staff to meet the federal mandate for year‑round services and (ii) support a five‑year replacement plan that refreshes laptops, printers, and toner cartridges.

part v.  effective date
SECTION 5.1.  This act becomes effective July 1, 2013.