AN ACT to appropriate funds for the north carolina prekindergarten (nc Pre‑K) program and the north carolina partnership for children, Inc., (smart start) and to set the ADMINISTRATIVE cap for nc pre‑k and smart start at ten percent.

The General Assembly of North Carolina enacts:

SECTION 1.(a)  There is appropriated from the General Fund to the Department of Health and Human Services, Division of Child Development and Early Education, the sum of one hundred eighty million dollars ($180,000,000) in recurring funds for each year of the 2023‑2025 fiscal biennium to increase investment in the North Carolina Prekindergarten (NC Pre‑K) program. These funds shall be used to increase reimbursement and administrative rates to improve access to the program.

SECTION 1.(b)  Section 9C.1 of S.L. 2021‑180 is amended by adding a new subsection to read:

SECTION 9C.1.(h)  Administration. – The Division of Child Development and Early Education may use up to ten percent (10%) of the State funds appropriated for the NC Pre‑K program for administrative costs.

SECTION 2.(a)  There is appropriated from the General Fund to the Department of Health and Human Services, Division of Child Development and Early Education, the sum of thirty million dollars ($30,000,000) in recurring funds for each year of the 2023‑2025 fiscal biennium to increase funding for the North Carolina Partnership for Children, Inc.

SECTION 2.(b)  There is appropriated from the General Fund to the Department of Health and Human Services, Division of Child Development and Early Education, the sum of six million dollars ($6,000,000) in recurring funds for each year of the 2023‑2025 fiscal biennium for the North Carolina Partnership for Children, Inc., to provide training and coaching for early childhood teachers, with a coordinated delivery model, to ensure all child care centers at every star‑rating level across the State receive critical technical assistance.

SECTION 2.(c)  Section 9C.6(b) of S.L. 2021‑180, as amended by Section 9C.2 of S.L. 2022‑74, reads as rewritten:

SECTION 9C.6.(b)  Administration. – Administrative costs shall be equivalent to, on an average statewide basis for all local partnerships, not more than nine percent (9%) ten percent (10%) of the total statewide allocation to all local partnerships. For purposes of this subsection, administrative costs shall include costs associated with partnership oversight, business and financial management, general accounting, human resources, budgeting, purchasing, contracting, and information systems management. The North Carolina Partnership for Children, Inc., shall continue using a single statewide contract management system that incorporates features of the required standard fiscal accountability plan described in G.S. 143B‑168.12(a)(4). All local partnerships are required to participate in the contract management system and, directed by the North Carolina Partnership for Children, Inc., to collaborate, to the fullest extent possible, with other local partnerships to increase efficiency and effectiveness.

SECTION 3.  This act becomes effective July 1, 2023.