A BILL TO BE ENTITLED
AN ACT to appropriate additional funds for certain small county school ADMINISTRATIVE units.
The General Assembly of North Carolina enacts:
SECTION 1.  Section 8.4 of S.L. 2013‑360, as amended by Section 3.11 of S.L. 2013‑363, reads as rewritten:
"SMALL SCHOOL SYSTEM SUPPLEMENTAL FUNDING
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"SECTION 8.4.(d)  Allotment Formula for the 2014‑2015 Fiscal Year. – Except as otherwise provided in subsections (g) and (f1) of this section, for the 2014‑2015 fiscal year, each eligible county school administrative unit shall receive a dollar allotment equal to the product of the following:
(1)	A per student funding factor, equal to the product of the following:
a.	One, minus the local school administrative unit's average daily membership divided by the maximum small school system average daily membership.
b.	The maximum small school system dollars per student.
(2)	The average daily membership of the eligible county school administrative unit.
"SECTION 8.4.(e)  Phase‑Out Provisions for the 2014‑2015 Fiscal Year. – If a local school administrative unit becomes ineligible for funding under the formula in subsection (d) of this section in the 2014‑2015 fiscal year, funding for that unit shall be phased out over a five‑year period. Funding for such local administrative units shall be reduced in equal increments in each of the five years after the local administrative unit becomes ineligible. Funding shall be eliminated in the fifth fiscal year after the local administrative unit becomes ineligible.
Allotments for eligible local school administrative units shall not be reduced by more than twenty percent (20%) of the amount received in fiscal year 2013‑2014 in any fiscal year.
"SECTION 8.4.(f)  Maximum Allotments for the 2014‑2015 Fiscal Year. – For the 2014‑2015 fiscal year, the maximum small school system dollars per student shall be two thousand ninety‑four dollars ($2,094).
"SECTION 8.4.(f1)  Additional Funds for Certain Local School Administrative Units for the 2014‑2015 Fiscal Year. – Notwithstanding subsection (f) of this section, an eligible county school administrative unit in which the average daily membership per square mile is less than two shall receive an additional allotment in the amount of five hundred thousand dollars ($500,000) for the 2014‑2015 fiscal year.
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SECTION 2.  There is appropriated from the General Fund to the Department of Public Instruction the sum of one million dollars ($1,000,000) for the 2014‑2015 fiscal year in recurring funds to implement the requirements of this act.
SECTION 3.  This act becomes effective July 1, 2014.