AN ACT to modify the current operations appropriations act of 2023 and to make other changes in the budget operations of the state.

The General Assembly of North Carolina enacts:

PART I. TITLE AND INTRODUCTION

TITLE OF ACT

SECTION 1.1.  This act shall be known as the Current Operations Appropriations Act of 2024.

INTRODUCTION

SECTION 1.2.  The appropriations made in this act are for maximum amounts  necessary to provide the services and accomplish the purposes described in the budget in accordance with the State Budget Act. Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes, and the savings shall revert to the appropriate fund at the end of each fiscal year, except as otherwise provided by law.

PART II. CURRENT OPERATIONS AND EXPANSION/GENERAL FUND

GENERAL FUND APPROPRIATIONS

SECTION 2.1.(a)  Appropriations from the General Fund for the 2024‑2025 fiscal year set out in Section 2.1(a) of S.L. 2023‑134 are repealed.  Appropriations from the General Fund for the budgets of the State departments, institutions, and agencies, and for other purposes as enumerated, are made for the 2024‑2025 fiscal year, according to the following schedule:

Current Operations – General Fund                                              FY 2024‑2025

EDUCATION

North Carolina Community College System

Requirements                                                                                 2,107,465,642

Less: Receipts                                                                                  428,408,799

Net Appropriation                                                                       1,679,056,843

Department of Public Instruction

Requirements                                                                               14,875,741,928

Less: Receipts                                                                               1,818,798,621

Net Appropriation                                                                     13,056,943,307

THE UNIVERSITY OF NORTH CAROLINA

East Carolina Univ. – Academic Affairs 

Requirements                                                                                    435,157,458

Less: Receipts                                                                                  168,350,410

Net Appropriation                                                                          266,807,048

East Carolina Univ. – Health Affairs

Requirements                                                                                   114,341,160

Less: Receipts                                                                                   13,587,770

Net Appropriation                                                                          100,753,390

Elizabeth City State University

Requirements                                                                                      50,985,154

Less: Receipts                                                                                      4,824,784

Net Appropriation                                                                            46,160,370

Fayetteville State University

Requirements                                                                                      91,811,366

Less: Receipts                                                                                    13,099,820

Net Appropriation                                                                            78,711,546

Appalachian State University

Requirements                                                                                    313,413,598

Less: Receipts                                                                                  124,504,786

Net Appropriation                                                                          188,908,812

NC A&T University

Requirements                                                                                    240,062,658

Less: Receipts                                                                                    88,842,760

Net Appropriation                                                                          151,219,898

NC School of Science and Mathematics

Requirements                                                                                      45,331,072

Less: Receipts                                                                                      3,291,677

Net Appropriation                                                                            42,039,395

NC State University – Academic Affairs

Requirements                                                                                    954,304,072

Less: Receipts                                                                                  438,387,357

Net Appropriation                                                                          515,916,715

NC State University – Ag. Research

Requirements                                                                                      79,228,032

Less: Receipts                                                                                    19,124,784

Net Appropriation                                                                            60,103,248

NC State University – Coop. Extension

Requirements                                                                                      64,983,558

Less: Receipts                                                                                    18,874,550

Net Appropriation                                                                            46,109,008

North Carolina Central University

Requirements                                                                                    144,633,692

Less: Receipts                                                                                    53,010,459

Net Appropriation                                                                            91,623,233

UNC at Asheville

Requirements                                                                                      73,465,728

Less: Receipts                                                                                    23,040,857

Net Appropriation                                                                            50,424,871

UNC at Chapel Hill – Academic Affairs

Requirements                                                                                    723,833,122

Less: Receipts                                                                                  376,959,533

Net Appropriation                                                                          346,873,589

UNC at Chapel Hill – Area Health Ed.

Requirements                                                                                      59,771,874

Less: Receipts                                                                                        0

Net Appropriation                                                                            59,771,874

UNC at Chapel Hill – Health Affairs

Requirements                                                                                    369,568,724

Less: Receipts                                                                                  138,758,876

Net Appropriation                                                                          230,809,848

UNC at Charlotte

Requirements                                                                                    486,757,239

Less: Receipts                                                                                  179,817,408

Net Appropriation                                                                          306,939,831

UNC at Greensboro

Requirements                                                                                    314,889,872

Less: Receipts                                                                                  117,357,588

Net Appropriation                                                                          197,532,284

UNC at Pembroke

Requirements                                                                                    125,508,626

Less: Receipts                                                                                    27,326,770

Net Appropriation                                                                            98,181,856

UNC at Wilmington

Requirements                                                                                    314,796,162

Less: Receipts                                                                                  115,848,896

Net Appropriation                                                                          198,947,266

UNC BOG – Aid to Private Institutions

Requirements                                                                                      14,209,300

Less: Receipts                                                                                    10,000,000

Net Appropriation                                                                              4,209,300

UNC BOG – Institutional Programs

Requirements                                                                                    732,308,786

Less: Receipts                                                                                    60,250,000

Net Appropriation                                                                          672,058,786

UNC BOG – Related Ed. Programs

Requirements                                                                                    641,280,089

Less: Receipts                                                                                  167,855,939

Net Appropriation                                                                          473,424,150

UNC School of the Arts

Requirements                                                                                      56,488,236

Less: Receipts                                                                                    17,148,612

Net Appropriation                                                                            39,339,624

UNC System Office

Requirements                                                                                      47,640,384

Less: Receipts                                                                                         259,217

Net Appropriation                                                                            47,381,167

Western Carolina University

Requirements                                                                                    186,734,561

Less: Receipts                                                                                    30,671,875

Net Appropriation                                                                          156,062,686

Winston‑Salem State University

Requirements                                                                                      93,110,088

Less: Receipts                                                                                    23,599,718

Net Appropriation                                                                            69,510,370

HEALTH AND HUMAN SERVICES

Aging and Adult Services

Requirements                                                                                    175,848,316

Less: Receipts                                                                                  120,859,697

Net Appropriation                                                                            54,988,619

Central Management and Support

Requirements                                                                                    560,960,453

Less: Receipts                                                                                  295,358,595

Net Appropriation                                                                          265,601,858

Child and Family Well‑Being

Requirements                                                                                    628,751,349

Less: Receipts                                                                                  550,449,233

Net Appropriation                                                                            78,302,116

Child Development and Early Education

Requirements                                                                                 1,599,459,055

Less: Receipts                                                                                  671,848,539

Net Appropriation                                                                          927,610,516

Emp. & Indep. for People with Disabilities

Requirements                                                                                    201,072,005

Less: Receipts                                                                                  152,965,037

Net Appropriation                                                                            48,106,968

Health Benefits

Requirements                                                                               32,779,319,648

Less: Receipts                                                                             26,081,635,238

Net Appropriation                                                                       6,697,684,410

Health Services Regulation

Requirements                                                                                     85,597,916

Less: Receipts                                                                                   57,084,858

Net Appropriation                                                                           28,513,058

Mental Hlth./Dev. Disabl./Subs. Use Serv.

Requirements                                                                               1,963,841,323

Less: Receipts                                                                             1,101,049,960

Net Appropriation                                                                         862,791,363

Public Health

Requirements                                                                                   515,281,812

Less: Receipts                                                                                 362,850,527

Net Appropriation                                                                         152,431,285

Services for the Blind/Deaf/Hard of Hearing

Requirements                                                                                     50,567,264

Less: Receipts                                                                                   39,896,340

Net Appropriation                                                                           10,670,924

Social Services

Requirements                                                                                 2,266,843,734

Less: Receipts                                                                               2,027,527,259

Net Appropriation                                                                          239,316,475

AGRICULTURE, NATURAL, AND ECONOMIC RESOURCES

Agriculture and Consumer Services

Requirements                                                                                    305,391,185

Less: Receipts                                                                                    92,158,909

Net Appropriation                                                                          213,232,276

Commerce

Requirements                                                                                    532,397,044

Less: Receipts                                                                                  287,093,455

Net Appropriation                                                                          245,303,589

Environmental Quality

Requirements                                                                                    418,451,906

Less: Receipts                                                                                  189,844,998

Net Appropriation                                                                          228,606,908

Labor

Requirements                                                                                      47,705,202

Less: Receipts                                                                                    18,112,941

Net Appropriation                                                                            29,592,261

Natural and Cultural Resources

Requirements                                                                                    423,639,900

Less: Receipts                                                                                    54,842,950

Net Appropriation                                                                          368,796,950

Wildlife Resources Commission

Requirements                                                                                    101,711,069

Less: Receipts                                                                                    81,855,762

Net Appropriation                                                                            19,855,307

JUSTICE AND PUBLIC SAFETY

Indigent Defense Services

Requirements                                                                                    189,928,261

Less: Receipts                                                                                    13,962,679

Net Appropriation                                                                          175,965,582

Department of Public Safety

Requirements                                                                                    919,555,747

Less: Receipts                                                                                  193,653,989

Net Appropriation                                                                          725,901,758

State Bureau of Investigation

Requirements                                                                                      77,537,719

Less: Receipts                                                                                    21,057,226

Net Appropriation                                                                            56,480,493

Department of Adult Correction

Requirements                                                                                 2,187,551,408

Less: Receipts                                                                                    28,612,230

Net Appropriation                                                                       2,158,939,178

Administrative Office of the Courts

Requirements                                                                                    832,763,685

Less: Receipts                                                                                      6,210,166

Net Appropriation                                                                          826,553,519

Department of Justice

Requirements                                                                                    121,010,020

Less: Receipts                                                                                    45,147,562

Net Appropriation                                                                            75,862,458

GENERAL GOVERNMENT

Administration

Requirements                                                                                      86,670,340

Less: Receipts                                                                                    12,636,055

Net Appropriation                                                                            74,034,285

Administrative Hearings

Requirements                                                                                        9,828,367

Less: Receipts                                                                                      1,216,625

Net Appropriation                                                                              8,611,742

Auditor

Requirements                                                                                      27,234,163

Less: Receipts                                                                                      6,899,163

Net Appropriation                                                                            20,335,000

Budget and Management

Requirements                                                                                      16,264,365

Less: Receipts                                                                                      3,659,972

Net Appropriation                                                                            12,604,393

Budget and Management – Special Approp.

Requirements                                                                                      62,275,000

Less: Receipts                                                                                    51,725,000

Net Appropriation                                                                            10,550,000

Controller

Requirements                                                                                      38,476,134

Less: Receipts                                                                                         875,957

Net Appropriation                                                                            37,600,177

Elections

Requirements                                                                                      12,404,913

Less: Receipts                                                                                      102,000

Net Appropriation                                                                            12,302,913

General Assembly

Requirements                                                                                    104,311,881

Less: Receipts                                                                                         561,000

Net Appropriation                                                                          103,750,881

Governor 

Requirements                                                                                        8,601,199

Less: Receipts                                                                                      1,000,730

Net Appropriation                                                                              7,600,469

Housing Finance Agency

Requirements                                                                                    120,040,000

Less: Receipts                                                                                  109,380,000

Net Appropriation                                                                            10,660,000

Human Resources

Requirements                                                                                      12,325,864

Less: Receipts                                                                                         100,888

Net Appropriation                                                                            12,224,976

Industrial Commission

Requirements                                                                                      25,213,564

Less: Receipts                                                                                    20,739,136

Net Appropriation                                                                              4,474,428

Insurance

Requirements                                                                                      97,749,880

Less: Receipts                                                                                    25,140,347

Net Appropriation                                                                            72,609,533

Lieutenant Governor

Requirements                                                                                        1,404,464

Less: Receipts                                                                                                 0

Net Appropriation                                                                              1,404,464

Military and Veterans Affairs

Requirements                                                                                      14,226,118

Less: Receipts                                                                                         400,000

Net Appropriation                                                                            13,826,118

Revenue

Requirements                                                                                    197,650,218

Less: Receipts                                                                                    68,697,348

Net Appropriation                                                                          128,952,870

Secretary of State

Requirements                                                                                      21,812,308

Less: Receipts                                                                                         330,036

Net Appropriation                                                                            21,482,272

Treasurer

Requirements                                                                                      80,840,237

Less: Receipts                                                                                    80,631,163

Net Appropriation                                                                                 209,074

Treasurer – Other Retirement Plans/Benefits

Requirements                                                                                      22,923,708

Less: Receipts                                                                                        0

Net Appropriation                                                                            22,923,708

INFORMATION TECHNOLOGY

Department of Information Technology

Requirements                                                                                    116,435,543

Less: Receipts                                                                                    31,479,233

Net Appropriation                                                                            84,956,310

RESERVES AND LOTTERY

General Fund Reserve

Requirements                                                                                    816,291,122

Less: Receipts                                                                                  694,265,711

Net Appropriation                                                                 122,025,411

Total Requirements                                                          72,635,987,590

Less: Total Receipts                                                         38,089,420,380

Total Net Appropriation                                                  34,546,567,210

SECTION 2.1.(b)  For purposes of this act and the Committee Report described in Section 43.2 of this act, the requirements set forth in this section represent the total amount of funds, including agency receipts, appropriated to an agency, department, or institution.

GENERAL FUND AVAILABILITY

SECTION 2.2.(a)  The General Fund availability for the 2024‑2025 fiscal year set out in Section 2.2(a) of S.L. 2023‑134 is repealed. The General Fund availability derived from State tax revenue, nontax revenue, and other adjustments used in developing the budget for the 2024‑2025 fiscal year is as follows:

                                                                                                                        FY 2024‑2025

Unappropriated Balance                                                                                  1,564,437,931

Overcollections Consensus Estimate FY 2023‑24                                             413,138,702

Reversions FY 2023‑24 (S.L 2023‑134)                                                            300,000,000

Additional Reversions                                                                                        200,000,000

Total, Estimated Beginning Unreserved Balance                                      2,477,576,633

Investments to Reserves per S.L. 2023‑134

State Capital and Infrastructure (SCIF)                                                         (1,461,333,238)

Additional Transfer to SCIF                                                                             (700,000,000)

Clean Water and Drinking Water Reserve                                                    (1,000,000,000)

Economic Development Reserve                                                                      (100,000,000)

Transportation Reserve                                                                                     (100,000,000)

State Emergency Response and Disaster Relief Fund                                       (75,000,000)

Housing Reserve                                                                                                 (60,000,000)

NC Innovation Reserve Shifted to Child Care                                                                     0

Medicaid Contingency Reserve                                                                                            0

Savings Reserve                                                                                                                    0

Total, Investments to Reserves                                                                   (3,496,333,238)

Adjustments to Reserves

Invest Inflation Reserve                                                                                  1,000,000,000

Total, Adjustments to Reserves                                                                   1,000,000,000

Revenues

Certified Tax Revenue (S.L. 2023‑42; S.L. 2023‑134)                                 31,884,670,000

Certified Non‑Tax Revenue (S.L. 2023‑7; S.L. 2023‑42; S.L. 2023‑93;

S.L. 2023‑134)                                                                                                1,480,876,093

Consensus Forecast Adjustment                                                                    1,003,753,907

Total, Revenues                                                                                            34,369,300,000

Adjustments to Revenues

Individual Income Tax Fairness, Rate at 4.5% for Income

>$200K/100K (MFJ/single)                                                                    126,900,000

Maintain Lowest Corporate Income Tax Rate at 2.5%                            74,200,000

Maintain General Fund Sales Tax Transfer to DOT at 4%                    236,900,000

Child and Dependent Care Tax Credit                                                   (57,800,000)

Conservation Tax Credit                                                                          (4,700,000)

Total, Adjustments to Revenues                                                                      375,500,000

Adjustments to Availability

            Insurance Non‑Tax Transfer                                                                     19,321,482

Total, Adjustments to Availability                                                                    19,321,482

Revised Total Net General Fund Availability                                           34,745,364,877

Less General Fund Net Appropriations                                                         (34,546,567,210)

Unappropriated Balance Remaining                                                               198,797,677

SECTION 2.2.(b)  Notwithstanding the provisions of G.S. 143C‑4‑2.(i) and (j), no funds shall be transferred to the Unfunded Liability Solvency Reserve in fiscal year 2024‑2025.

SECTION 2.2.(c)  Section 2.2(q) of S.L. 2022‑74 is repealed.

SECTION 2.2.(d)  Section 2.2(c) of S.L. 2023‑134 reads as rewritten:

SECTION 2.2.(c)  Medicaid Contingency Reserve. – The State Controller shall reserve to the Medicaid Contingency Reserve described in G.S. 143C‑4‑11 from funds available in the General Fund the sum of four hundred million dollars ($400,000,000) in nonrecurring funds for the 2023‑2024 fiscal year and the sum of two hundred fifty million dollars ($250,000,000) in nonrecurring funds for the 2024‑2025 fiscal year.

SECTION 2.2.(e)  Section 2.2(h) of S.L. 2023‑134 reads as rewritten:

SECTION 2.2.(h)  Economic Development Project Reserve. – The State Controller shall reserve to the Economic Development Project Reserve established in Section 2.2 of S.L. 2021‑180 from funds available in the General Fund the sum of six hundred thirty million dollars ($630,000,000) in nonrecurring funds for the 2023‑2024 fiscal year and the sum of one hundred million dollars ($100,000,000) for the 2024‑2025 fiscal year. The State Controller shall transfer funds available in the Economic Development Project Reserve to State agencies and departments for economic development initiatives in accordance with the following schedule, and the funds transferred are appropriated for the fiscal year in which they are transferred:

State Agency or Department                                        2023‑2024                 2024‑2025

(1)        Department of Commerce

(Budget Code: 14601)                                                   $10,000,000                             $0

(2)        Department of Commerce

(Budget Code 14600)                                                                      0                 3,000,000

(2)        Department of Commerce

(Budget Code: 14602)                                              10,600,000 108,400,000186,400,000

(3)        Department of Environmental Quality

(Budget Code: 14300)                                                       1,000,000                               0

(4)        Department of Transportation

            (Budget Code: 84210)                                                                     0             150,000,000

(5)        Central Carolina Community College                                            0               40,000,000

SECTION 2.2.(f)  Section 2.2(i) of S.L. 2023‑134 reads as rewritten:

SECTION 2.2.(i)  Housing Reserve. – The State Controller shall reserve to the Housing Reserve established in Section 2.2(k) of S.L. 202274 from funds available in the General Fund the sum of forty‑five million dollars ($45,000,000) in nonrecurring funds for the 20232024 fiscal year and the sum of forty-five sixty million dollars ($45,000,000) ($60,000,000) in nonrecurring funds for the 20242025 fiscal year. The State Controller shall transfer funds available in the Housing Reserve to the Housing Finance Agency (Budget Code: 13010) in the sum of forty five million dollars ($45,000,000) in nonrecurring funds for the 20232024 fiscal year and the sum of fortyfive sixty million dollars ($45,000,000) ($60,000,000) in nonrecurring funds for the 20242025 fiscal year, and those funds are appropriated for the fiscal year in which they are transferred.

SECTION 2.2.(g)  Section 2.2(k) of S.L. 2023‑134 reads as rewritten:

SECTION 2.2.(k)  NCInnovation. – There is established in the General Fund an NCInnovation Reserve to make funds available for NCInnovation, Inc. (NCInnovation), a North Carolina nonprofit corporation, for the purposes set out in Section 11.9 of this act. The State Controller shall reserve to the NCInnovation Reserve from funds available in the General Fund the sum of two hundred fifty million dollars ($250,000,000) in nonrecurring funds for the 2023‑2024 fiscal year and the sum of two hundred fifty million dollars ($250,000,000) in nonrecurring funds for the 2024‑2025 fiscal year. The State Controller shall transfer portions of the funds in the NCInnovation Reserve to the Department of Commerce (Department) as provided in this subsection, and these funds are hereby appropriated to the Department for allocation to NCInnovation for purposes consistent with Section 11.9 of this act. The required transfers are as follows:

(1)        Two hundred fifty million dollars ($250,000,000) upon the Department certifying to the State Controller that NCInnovation has met the requirements set out in Article 76B of Chapter 143 of the General Statutes, as enacted by Section 11.9 of this act.

(2)        Two hundred fifty million dollars ($250,000,000) upon the later of July 1, 2024, or the Department certifying to the State Controller that NCInnovation has met the following requirements:

a.         NCInnovation has established a network of regional innovation hubs with at least four regional innovation hubs.

b.         NCInnovation has completed (i) research, technology, and innovation studies of the four regional innovation hubs to maximize local educational research efforts and the commercialization of those efforts to meet regional needs and (ii) a statewide strategic technology development plan.

c.         NCInnovation has produced and provided to the Joint Legislative Commission on Governmental Operations detailed spending plans and performance management programs for awarding funds.

d.         NCInnovation has received written commitments for private contributions totaling at least twenty‑five million dollars ($25,000,000) to be received within four years of receipt of the endowment.

e.         NCInnovation has reported, at least semiannually, to the Joint Legislative Commission on Governmental Operations on the progress of meeting the requirements of this subdivision. \

SECTION 2.2.(h)  Section 2.2(p) of S.L. 2023‑134 reads as rewritten:

SECTION 2.2.(p)  Federal Infrastructure Match Reserve. – The State Controller shall reserve to the Federal Infrastructure Match Reserve established in Section 2.2(m) of S.L. 2022‑74 from funds available in the General Fund the sum of fifty million dollars ($50,000,000) in nonrecurring funds for the 2023‑2024 fiscal year and the sum of forty‑five million dollars ($45,000,000) in the 2024‑2025 fiscal year. The State Controller shall transfer funds available in the Federal Infrastructure Match Reserve to agencies and departments as needed to draw down federal funds in accordance with the following schedule, and the funds transferred are appropriated for the fiscal year in which the funds are transferred:

State Agency or Department                                                    2023‑2024                2024‑2025

(1)               Department of Commerce

            (Budget Code: 14600)                                                        $250,000                  $250,000

(2)               Department of Environmental Quality

            (Budget Code: 14300)                                                          850,000                    850,000

(3)               Department of Environmental Quality

            (Budget Code: 24300)                                                       1,388,921                 1,388,921

(4)               Department of Environmental Quality

            (Budget Code: 64305)                                                          500,000                    500,000

(5)               Department of Environmental Quality

            (Budget Code: 64311)                                                       3,975,123                 8,675,950

(6)               Department of Environmental Quality

            (Budget Code: 64320)                                                       6,605,875               14,417,727

(7)               Office of State Budget and Management

            (Budget Code: 13005)                                                     10,000,000             045,000,000

SECTION 2.2.(i)  Section 2.2(r) of S.L. 2023‑134 is repealed.

SECTION 2.2.(j)  The State Controller shall transfer the sum of forty‑six million five hundred thirty one thousand eight hundred twenty nine dollars ($46,531,829) from the unreserved fund balance in the General Fund to the Information Technology Reserve. The following information technology projects are funded from the Information Technology  Reserve:  The Department of Health and Human Services' North Carolina Database Application for Vital Events (NCDAVE) self‑service portal and enhancements.

(1)               The Department of Health and Human Services' Medical Examiner Information Technology System.

(2)               The Department of Natural and Cultural Resources' network infrastructure upgrades.

(3)               The Department of Information Technology's modernization of Tanium Endpoint Detection and Response.

(4)               The Department of Public Instruction's School Business Systems Modernization ERP Grant Program.

(5)               The Department of Justice's North Carolina Justice Data Portal data consolidation.

(6)               The Office of State Budget and Management's Integrated Budget Information System (IBIS) Replacement.

(7)               The Department of Human Resources' Human Capital Management System Phase I and Phase II.

(8)               The Department of Human Resources' HR Data Analytics Application.

(9)               The State Board of Elections' Election Management System (SEIMS) software modernization.

(10)           The State Bureau of Investigation's modernization of investigation platforms.

(11)           The Secretary of State's database modernization project and program for automating certain business service processes.

Funds appropriated to the Information Technology Reserve shall be allocated by the Director of the State Budget in consultation with the State Chief Information Officer and the head of the department with primary ownership over the information technology project. Funds shall be allocated based on documented needs. Funds transferred under this section to the Information Technology Reserve are appropriated for the life of the project and shall be used in accordance with this act.

SECTION 2.2.(k)  Section 2.2(e) of S.L. 2023‑134 reads as rewritten:

SECTION 2.2.(e) SERDRF. – The State Controller shall reserve to the State Emergency Response and Disaster Relief Fund established in G.S. 166A‑19.42 from funds available in the General Fund the sum of seventy‑five million dollars ($75,000,000) in nonrecurring funds for the 2023‑2024 fiscal year and the sum of seventy‑five million dollars ($75,000,000) in nonrecurring funds for the 2024‑2025 fiscal year. The State Controller shall transfer funds available in the State Emergency Response and Disaster Relief Fund to State agencies and departments for the purposes described in Section 5.6 of this act and in accordance with the following schedule. The funds transferred are appropriated for the five‑year period ending June 30, 2028.

State Agency or Department                                                  2023‑2024       2024‑2025

(1) Emergency Management (Budget Code: 24552)                         $174,601,092              $0

(1a) Department of Public Safety (Budget Code: 14550)                  0                      5,000,000

(2) Office of State Budget and Management – Special Appropriations

(Budget Code: 13085)                                                                        22,255,000      05,000,000

(2a) Office of State Budget and Management – General Fund –

Special Revenue (Budget Code: 23014)                                             0                      75,000,000

(2b) OSBM – Tropical Storm Fred DR (Budget Code: 23024)         0                      2,500,000

(3) DACS–Soil & Water Conservation (Budget Code: 23704)         20,000,000      021,000,000

(3a) DACS (Budget Code 13700)                                                      0                      300,000

(4) Department of Insurance (Budget Code: 63903)                          20,000,000                  0

(4a) Department of Insurance (Budget Code: 13900)                                    0                      20,000,000

(5) Department of Environmental Quality (Budget Code: 14300)     7,500,000                    0

(5a) Department of Environmental Quality (Budget Code: 24300)   0                      4,000,000

(6) Department of Environmental Quality – Disaster

(Budget Code: 24310)                                                                        10,493,953      987,906

(6a) Wildlife Resources Commission (Budget Code: 14350)            11,000,000                  0

(7) DEQ – Special Revenue (Budget Code: 24317)                           10,000,000      10,000,000

(8) UNC at Chapel Hill – Academic Affairs (Budget Code: 16020) 330,000           330,000

(9) NC School of Science & Math (Budget Code: 16094)                 264,000                       0

(10) North Carolina Central University (Budget Code: 16090)         50,000                         0

PART III. highway fund and highway trust fund

CURRENT OPERATIONS/HIGHWAY FUND

SECTION 3.1.  The appropriations for the State Highway Fund for the 2024‑2025 fiscal year set out in Section 3.1 of S.L. 2023‑134 are repealed. Appropriations from the State Highway Fund for the maintenance and operation of the Department of Transportation and for other purposes as enumerated are made for the fiscal year ending June 30, 2025 according to the following schedule:

Highway Fund                                                                                             FY 2024‑2025

Administration                                                                                                            147,623,011

Division of Highways

Administration                                                                                                  40,389,207

Construction                                                                                                     77,543,078

Maintenance                                                                                                2,177,551,082

Governor's Highway Safety Program                                                                    613,391

OSHA                                                                                                                    358,030

Aid to Municipalities                                                                          

Powell Bill                                                                                                      185,875,000

Intermodal Divisions

Ferry                                                                                                                  76,929,849

Public Transportation, Bicycle and Pedestrian                                                 82,510,286

Aviation                                                                                                          160,274,429

Rail                                                                                                                   55,299,938

Division of Motor Vehicles                                                                                        149,165,896

Other State Agencies, Reserves, Transfers                                                                   84,848,940

Capital Improvements                                                                                                  43,571,863

Total Highway Fund Appropriations                                                                $3,282,554,000

HIGHWAY FUND AVAILABILITY

SECTION 3.2.  The Highway Fund availability for the 2024‑2025 fiscal year in Section 3.2 of S.L. 2023‑134 is repealed. The Highway Fund availability used in adjusting the  2024‑2025 fiscal year budget is shown below:

                                                                                                                                   FY 2024‑2025

Beginning Balance                                                                                                    $65,000,000

Consensus Revenue Forecast                      

Motor Fuels Tax                                                                                           1,848,200,000

Licenses and Fees                                                                                         1,077,700,000

Short‑Term Lease                                                                                           118,800,000

Investment Income                                                                                            52,400,000

Sales Tax Transfer                                                                                          118,500,000

Adjustments to Availability            

Title Fees – Transfer from Highway Trust Fund                                                1,954,000

Total Highway Fund Availability                                                                           $3,282,554,000

HIGHWAY TRUST FUND APPROPRIATIONS

SECTION 3.3.  The appropriations for the State Highway Trust Fund for the 2024‑2025 fiscal year set out in Section 3.3 of S.L. 2023‑134 are repealed. Appropriations from the State Highway Trust Fund to the Department of Transportation for construction and other purposes as enumerated are made for the fiscal year ending June 30, 2025, according to the following schedule:

Current Operations – Highway Trust Fund                                                      FY 2024‑2025

Program Administration                                                                                                42,467,867

Bonds                                                                                                                          121,436,775

Turnpike Authority                                                                                                        49,000,000

State Ports Authority                                                                                                     45,000,000

Strategic Prioritization Funding Plan for

Transportation Investments                                                                                      2,060,701,358

Transfer to Visitor Center                                                                                                   640,000

Total Highway Trust Fund Appropriations                                                $2,319,246,000

HIGHWAY TRUST FUND AVAILABILITY

SECTION 3.4.  The Highway Trust Fund availability for the 2024‑2025 fiscal year set out in Section 3.4 of S.L. 2023‑134 is repealed. The Highway Trust Fund availability used in adjusting the 2023‑2024 fiscal year budget is shown below:

                                                                                                                                   FY 2024‑2025

Beginning Balance                                                                                                    $31,300,000

Consensus Revenue Forecast                      

            Highway Use Tax                                                                                         1,131,400,000

            Motor Fuels Tax                                                                                             613,900,000

            Fees                                                                                                                 169,000,000

            Investment Income                                                                                            20,200,000

            Sales Tax Transfer                                                                                          355,300,000

Adjustments to Availability                                                                                                         

            Title Fees – Transfer to Highway Fund                                                           (1,954,000)

Total Highway Trust Fund Availability                                                             $2,319,146,000

PART IV. OTHER AVAILABILITY AND APPROPRIATIONS

EDUCATION LOTTERY FUNDS/CHANGES TO REVENUE ALLOCATIONS

SECTION 4.1.(a)  Section 4.3(a) of S.L. 2023‑134 reads as rewritten:

SECTION 4.3.(a)  The allocations made from the Education Lottery Fund for the 2023‑2025 fiscal biennium are as follows:

FY 2023‑2024 FY 2024‑2025

Noninstructional Support Personnel   $385,914,455$385,914,455$415,914,455

Prekindergarten Program        78,252,110$78,252,110111,152,110

School Health Personnel         0          8,100,000

Public School Building Capital Fund 100,000,000    100,000,000

Needs‑Based Public School Capital Fund      254,252,612    258,252,612

Public School Repair & Renovation  50,000,000      50,000,000

Scholarship Reserve Fund for Public Colleges

and Universities          41,194,733      41,194,733

LEA Transportation    21,386,090      21,386,090

TOTAL ALLOCATION        $931,000,000$935,000,000$1,006,000,000

INDIAN GAMING EDUCATION REVENUE FUND APPROPRIATIONS

SECTION 4.2.(a)  Section 4.4(a) of S.L. 2023‑134 reads as rewritten:

SECTION 4.4.(a)  Allocations are made from the Indian Gaming Education Revenue Fund for the fiscal biennium ending June 30, 2025, as follows:

FY 2023‑2024 FY 2024‑2025

Textbook and Digital Resources Allotment   $10,000,000    $10,000,000

Classroom Materials   11,000,000      1,000,0006,000,000

Total Appropriation    $21,000,000$11,000,000$16,000,000

CIVIL PENALTY AND FORFEITURE FUND

SECTION 4.3.  Section 4.5 of S.L. 2023‑134 reads as rewritten:

SECTION 4.5.  Allocations are made from the Civil Penalty and Forfeiture Fund for the fiscal biennium ending June 30, 2025, as follows:

            FY 2023‑2024 FY 2024‑2025

School Technology Fund       $18,000,000    $18,000,000

Drivers Education       31,493,768      31,493,768

State Public School Fund       226,041,640166,041,640191,041,640

Total Appropriation    $275,535,408$215,535,408$240,535,408

ARPA TEMPORARY SAVINGS FUND

SECTION 4.4.  Section 4.9.(d) of S.L. 2023‑134 reads as rewritten:

SECTION 4.9.(d)  Priority of Disbursement of Funds in the 2024‑2025 Fiscal Year. – For the 2024‑2025 fiscal year, funds appropriated in this act from the ARPA Temporary Savings Fund and allocated as described in this act, or in the Committee Report described in Section 43.2 of this act, shall be disbursed in the following order:

(1)        East Carolina University – Health Affairs (Budget Code 16066) for ECU Primary Care Programs Expansion.

(2)        The Department of Public Instruction (Budget Code 13510) for Health Career Promotion.

(3)        UNC BOG – Institutional Programs (Budget Code 16011) for Rural Residency Medical Education and Training Fund.

(4)        The Department of Health and Human Services, Division of Health Benefits, (Budget Code 14445) for Federally Qualified Health Centers and Rural Health Clinics.

(5)        UNC BOG – Related Education Programs (Budget Code 16012) for Primary Care Providers and Psychiatrists Forgivable Loan Program.

(6)        UNC at Pembroke (Budget Code 16082) for UNCP Health Sciences.

(7)        NC Community College System (Budget Code 16800) for Nursing and Health‑Related Workforce Programs Start‑up Funds.

(8)        The Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Use Services, (Budget Code 14460) for State Facility Workforce Investment.

(9)        The Department of Health and Human Services, Central Management and Support, Office of Rural Health (Budget Code 14410) for Incentives for Health Providers in Rural and Underserved Areas.

(10)      Department of Health and Human Services Division of Child and Family Well‑Being for the School Behavioral Health Package.

(11)      The Department of Health and Human Services Division of Aging and Adult Services for Rural Aging in Place.

(12)      The Department of Health and Human Services Division of Social Services for State Aid to County Departments of Social Services

Department of Health and Human Services Division of Health Benefits for Medicaid Administration and Healthy Opportunities Statewide Expansion.

(10) (14)    In order of least to most, all remaining allocations that are not allocations made through funds appropriated to the State Capital and Infrastructure Fund.

(11) (15)    In order of least to most, allocations made through funds appropriated to the State Capital and Infrastructure Fund.

If there are two or more allocations in subdivision (10) or subdivision (11) of this subsection that are of equal amounts, then the funds for those allocations shall be disbursed in the order determined by the Secretary of DHHS, taking into account any time lines for the use of the funds, the best interest of the citizens of the State, and the avoidance of any disruption in services to those citizens.

….

PART V. GENERAL PROVISIONS

APPROPRIATION OF RECENT FEDERAL GRANT, SUBSIDIES, LOANS, AND REBATES

SECTION 5.1.(a)   Funds received from federal programs authorized under the Bipartisan Infrastructure Law (BIL) (P.L. 117‑58 (also known as the Infrastructure Investment and Jobs Act (IIJA)), the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act (P.L. 117‑167), and the Inflation Reduction Act (IRA) (P.L. 117‑169) are appropriated in the amounts provided in the notification of award from the federal government or any entity acting on behalf of the federal government to administer the federal funds. State agencies may, with approval of the Director of the Budget, spend funds received from federal grants, subsidies, loans, and rebates resulting from enactment of this legislation. State agencies shall report to the Joint Legislative Commission on Governmental Operations, the chairs of the Senate Committee on Appropriations/Base Budget, the chairs of the House Appropriations Committee, and the Fiscal Research Division within 30 days of receipt of such funds.

SECTION 5.1.(b)  The Office of State Budget and Management shall work with the recipient State agencies to budget funding awards according to the annual program needs and within the parameters of the respective granting entities. Depending on the nature of the award, additional State personnel may be employed on a time‑limited basis. Funds received from such awards are hereby appropriated up to the applicable amount set forth in subsection (a) of this section and shall be incorporated into the authorized budget of the recipient State agency.

SECTION 5.1.(c)  Section 4.2 of S.L. 2023‑134 shall not apply to grant funds received under BIL, the CHIPS and Science Act, or IRA.

other receipts from pending grant awards

SECTION 5.2.(a)  Section 4.2.(a) of S.L. 2023‑134 reads as rewritten:

SECTION 4.2.(a)  Notwithstanding G.S. 143C‑6‑4, State agencies may, with approval of the Director of the Budget, spend funds received from grants awarded after the enactment of this act for grant awards that are for less than two million five hundred thousand dollars ($2,500,000).five million dollars ($5,000,000). State agencies shall report to the Joint Legislative Commission on Governmental Operations, the chairs of the Senate Committee on Appropriations/Base Budget, the chairs of the House Appropriations Committee, and the Fiscal Research Division within 30 days of receipt of such funds.

….

state fiscal recovery fund reallocations

SECTION 5.3.(a)  Notwithstanding any provision of law, the North Carolina Pandemic Recovery Office (NCPRO) shall reallocate one hundred thirty‑one million eight hundred and eighty‑seven thousand eight hundred and eighty‑two dollars ($131,887,882) in unexpended State Fiscal Recovery Funds (SFRF) as follows:

(1)   $9,000,000 to provide local assistance, split evenly between the NC League of Municipalities, the NC Association of Regional COGs, and the NC Association of County Commissioners.

(2)   $3,327,585 from the Smart School Bus program within the Department of Public Instruction to the School Bus Safety program.

(3)   $100,000,000 from the Broadband Make Ready Accelerator program within the Department of Information Technology to the Completing Access to Broadband program.

(4)   $19,560,298 to the Department of Environmental Quality for unexpected expenses, project overruns, and other necessary costs of existing Viable Utility Reserve and Local Assistance for Stormwater Infrastructure Investments program grants.

SECTION 5.3.(b)  Notwithstanding any provision of law, NCPRO, in consultation with the Director of the Budget, may reallocate SFRF appropriated by this act or any of the following acts:

(1)   S.L. 2021‑180.

(2)   S.L. 2021‑189.

(3)   S.L. 2022‑6.

(4)   S.L. 2022‑74.

(5)   S.L. 2023‑134.

These State Fiscal Recovery Funds may be reallocated under all of the following conditions only: 

(1)   The appropriated funds are unobligated on September 30, 2024. 

(2)   There is not a reasonable expectation that the funds will be obligated before the deadline established by applicable federal law or guidance. 

(3)   The reallocation is made to support one or more SFRF related activities authorized and receiving appropriations under this act or one of the acts listed in the Requirements above within this Section. Reallocated funds shall not be used for any new activity, purpose, or program. 

(4)   To the extent that funds reallocated pursuant to this section are unappropriated, those funds are hereby appropriated and available for use pursuant to this section. 

SECTION 5.3.(c)  Section 9G.8.(a)(2)b of S.L. 2021‑180 reads as rewritten:

SECTION 9G.8.(a)

…

(2)        $117,187,500 in nonrecurring funds shall be used to fund a program for lead paint abatement and asbestos abatement in public school units and child care facilities. As part of the program, public school units and child care facilities shall be required to conduct inspections for lead paint and asbestos hazards in their facilities. The program shall include at least the following components:

a.         DHHS and DPI shall develop a mechanism for providing funding for lead paint abatement, asbestos inspection and abatement, or both in public school units and child care facilities; provided, however, that the following conditions are met:

1.         A professional accredited in accordance with G.S. 130A‑447 or certified in accordance with G.S. 130A‑453.03 determines that action must be taken in response to an inspection report.

2.         Lead paint, asbestos, or both are detected as part of an inspection or as part of a capital, renovation, or repair project that meets the lead‑based paint hazard level, as set forth in G.S. 130A‑131.7, or that meets the definition of asbestos containing material, as set forth in G.S. 130A‑444. Capital projects may include HVAC, window, or other ventilation projects related to COVID‑19 mitigation, or other capital, renovation, or repair projects undertaken for which a hazard has been identifiedduring calendar years 2021 through 2024.

b.      A requirement that public school unit recipients of funds in Tier 3 counties allocated under this subdivision shall provide matching funds in the amount of one dollar ($1.00) of local funds for every two dollars ($2.00) of State funds.

c.      The Commission for Public Health, Child Care Commission, and State Board of Education shall adopt rules as needed to implement this subdivision.

SECTION 5.3.(d).  G.S. 143B‑1373.1 reads as rewritten:

§ 143B‑1373.1. Completing Access to Broadband program.

…

(c)        In collaboration with the Broadband Infrastructure Office, a county may request funding under this section for either a defined eligible project area that is mutually identified by the county and the Office or for a project that was not awarded a grant in the most recent round of grant awards under G.S. 143B‑1373. All identified projects shall be subject to the bid process requirements in this subsection. In selecting project areas to receive funding, the Office shall give priority to eligible areas that a county has requested funding for based upon utilizing the Office's Community Broadband Planning Playbook and those counties that meet the criteria established in subsection (e) of this section. The Department shall utilize its authority under Part 4 of this Article to develop competitive bid processes for the procurement of the construction, installation, and operation of broadband infrastructure. Notwithstanding Article 8 of Chapter 143 of the General Statutes, or any other provision of law to the contrary, the Department may delegate to a county the authority to select a provider for the project area in accordance with Part 4 of this Article. The Department shall reserve the authority to approve the selection of a county pursuant to this subsection. Unless the county has bid processes acceptable to the Office, the Office shall utilize customizable forms and procedures developed by the Department for the purposes of this subsection. Selections made pursuant to this subsection are not subject to the Department's administrative review authority under Article 3A of Chapter 150B of the General Statutes or the Department's administrative rules regarding information technology bid protests and contested case procedures. Selection of project areas shall be subject to the protections provided in G.S. 143B‑1373(c). In conjunction with the bid process, a proposed project area shall be posted on the Department's website for a period of at least 10 days. Upon submission of credible evidence, a broadband service provider may request a project scope adjustment to the Office in accordance with G.S. 143B‑1373(e). Upon a finding that the evidence submitted by the broadband service provider is credible, the Office shall work with the county to amend the scope of the project. The Office shall develop and administer any agreement entered into pursuant to this section. Nothing in this subsection shall be deemed to grant authority for a county to own, operate, or otherwise control broadband infrastructure contracted for under this section.

(d)       A broadband service provider selected for a project under this section may provide up to thirty percent (30%) a match of at least twenty‑five percent (25%) of the total estimated project cost. The Office may commit up to thirty‑five percent (35%)seventy‑five percent (75%) of the total estimated project cost from monies in the CAB Fund. A county requesting a project may provide up to fifty percent (50%) of the service provider's required match of the estimated project cost. The county requesting the project shall be responsible for at least thirty‑five percent (35%) of the total estimated project cost and shall utilize federal American Rescue Plan Act (P.L. 117‑2) funds or nonrestricted general funds for that purpose. In the event CAB Fund monies are insufficient to fund a project, a county or provider may increase its share of the total estimated project cost, or the Office may adjust the scope of the project to meet the level of available funding. No county may receive more than eight million dollars ($8,000,000) in aggregate funding from the CAB Fund in any single fiscal year.

(e)        The Office shall prioritize projects for which a county is contributing a portion of the service provider's required match of the total estimated project cost. No county may receive more than eight million dollars ($8,000,000) in aggregate funding from the CAB Fund in any single fiscal year, provided that a county contributing a portion of the service provider's required match of the total estimated project cost may receive more than eight million dollars ($8,000,000) from the CAB Fund. The additional amount shall be no more than one hundred percent (100%) of the amount of the county's contribution during a fiscal year.Notwithstanding the project cost responsibility allocations in subsection (d) of this section, for a county receiving from the federal government less than an aggregate of eight million dollars ($8,000,000) in federal American Rescue Plan Act (P.L. 117‑2) funds, a broadband service provider selected for a project shall provide not less than fifteen percent (15%) of the total estimated project cost. If a broadband service provider provides more than fifteen percent (15%) of the total estimated project cost, the State and county cost responsibilities shall be equally apportioned. The following cost responsibility allocations for counties meeting the requirements of this subsection and the State apply:

Direct Federal Funds                          County                        State

Received                                             Responsibility             Responsibility

$250,000, up to $4,000,000                5%, minimum             Up to 80%

$4,000,000, up to $8,000,000             10%, minimum           Up to 75%

(f)        A broadband service provider selected for a project under this section shall enter into an agreement with the Office that shall include the project description, time lines, benchmarks, proposed broadband speeds, and any other information and documentation the Office deems necessary. All proposed broadband speeds must meet or exceed the federal guidelines for use of American Rescue Plan Act (P.L. 117‑2) funds. If a county provides a portion of the service provider's required match of the total estimated project cost, uponUpon execution of an agreement, the county shall provide its portion of the total estimated project costs to the Office to be combined with CAB Funds awarded for the project and placed in a separate project account. The Office shall provide project oversight, and, upon completion of established benchmarks in the project agreement, the Office shall disburse funds from the project account to the broadband service provider. The forfeiture provisions in G.S. 143B‑1373(l) shall apply to agreements entered into under this section.

emergency rental assistance (ERA) reallocation

SECTION 5.4.(a)  Notwithstanding any provision of law, all remaining Emergency Rental Assistance (ERA) funds allocated in Section 5 of S.L. 2021‑1, Section 1.4 of S.L. 2021‑3, and Section 3.4 of S.L. 2021‑25, except those in retained pursuant to Section 5.4(b), and any interest earned on those funds budgeted in Budget Code 23021, Budget Fund 21450 shall be reallocated to the North Carolina Housing Finance Authority for the Housing Trust Fund and be used in for projects that comply with US Department of the Treasury's Emergency Rental Assistance guidelines. These funds are hereby appropriated.

SECTION 5.4.(b)  Section 3.4(i) of S.L. 2021‑25 is amended by adding a new subsection to read:

SECTION 3.4.(i) In addition to funds allowed for administration in subsection (i), the Office shall retain one million dollars ($1,000,000) of Emergency Rental Assistance funds to close out the program. These funds shall be used to:

1.         Review fraud, waste, and abuse allegations and assist with investigations,

2.         Conduct activities related to recovery of funds.

3.         Prepare for desk review and other federal and state audits.

4.         Prepare and submit required reports.

5.         And other unforeseen duties that arise in the closeout process of this program.

DARE COUNTy AFFORDABLE HOUSING Funds

SECTION 5.5.  Notwithstanding any provision of law, funds for Dare County Affordable Housing appropriated in S.L. 2022‑74 that are returned to the state pursuant to the Dare County Commissioner vote on April 9, 2024, shall be reallocated to the North Carolina Housing Finance Authority for the Housing Trust Fund and these funds are hereby appropriated.

ESTABLISHING OR INCREASING FEES

SECTION 5.6.(a)  Notwithstanding G.S. 123.1, an agency is not required to consult with the Joint Legislative Commission on Governmental Operations prior to establishing or increasing a fee to the level authorized or anticipated in this act.

SECTION 5.6.(b)  Notwithstanding G.S. 150B21.1A(a), an agency may adopt an emergency rule in accordance with G.S. 150B21.1A to establish or increase a fee as authorized by this act if the adoption of a rule would otherwise be required under Article 2A of Chapter 150B of the General Statutes.

SPORTS BETTING – USE OF PROCEEDS / REVERSION

SECTION 5.7.(a)  G.S. 105‑113.128 reads as rewritten:

§ 105‑113.128. Use of tax proceeds.

a.         The Secretary shall distribute the taxes collected under this Article, less the allowance to the Department of Revenue and reimbursement to the Lottery Commission for administrative expenses, in accordance with this section. The Secretary may retain the cost of administering this Article, not to exceed five hundred thousand dollars ($500,000) a year, as reimbursement to the Department. The Lottery Commission shall, no later than 20 days after the end of the month, notify the Department of its unreimbursed expenses from administering the provisions of Article 9 of Chapter 18C of the General Statutes from the previous month. The Department shall reimburse the Lottery Commission from the tax revenues collected under this Article no later than the end of the month in which the Department was notified. The remainder of the net proceeds of the tax collected under this Article are to be credited in the following priority:

…

b.         Funds appropriated pursuant to section (a), subsections (1) through (5)b, shall not revert until the end of the fiscal year following that in which they are appropriated.

SECTION 5.7.(b)  This section becomes effective June 30, 2024.

2024 DISASTER RECOVERY

SECTION 5.8.(a)  State Emergency Response and Disaster Relief Fund. – Of the nonrecurring funds appropriated in S.L. 2023‑134 and this act for the 2024‑2025 fiscal year, one hundred thirty‑two million eight hundred thousand hundred dollars ($132,800,000) shall be allocated as follows:

(1)        $75,000,000 to the Office of State Budget and Management to provide disaster recovery assistance to households and communities in response to Hurricane Matthew and Hurricane Florence.

(2)        $5,000,000 to the Office of State Budget and Management to provide a directed grant to the North Carolina Insurance Underwriting Association, consistent with the purposes set forth in Section 5.9(i) of S.L. 2021‑180.

(3)        $2,500,000 to the Office of State Budget and Management to provide disaster recovery assistance to households and communities in response to Tropical Storm Fred.

(4)        $20,000,000 to the Department of Agriculture and Consumer Services to support the Streamflow Rehabilitation Assistance Program, which maintains and restores streams in flood mitigation efforts.

(5)        $20,000,000 to the Department of Insurance, Office of the State Fire Marshal, to sustain the State Property Fire Insurance Fund.

(6)        $5,000,000 to the Department of Public Safety, Emergency Management Division, to support disaster recovery projects in Princeville in response to Hurricane Matthew.

(7)        $4,000,000 to the Department of Environmental Quality to support coastal modeling for the Flood Resiliency Blueprint.

(8)        $1,000,000 to the Department of Agriculture and Consumer Services to support the Agricultural Water Resources Assistance Program, which provides funds for agricultural water supply and efficiency increases for agricultural water use.

(9)        $300,000 to the Department of Agriculture and Consumer Services for equipment to transport mobile depopulation units, which quickly depopulate livestock following disease outbreaks, natural disasters, or other catastrophic events.

SECTION 5.8.(b)  Implementation. – The following actions and policies shall be taken to implement subsection 5.7.(a)(1):

(1)        If a person's home is relocated or purchased with funds allocated in this subsection, the State Emergency Response and Disaster Relief Fund is subrogated to the person's rights under any insurance coverage for the damage to the home and any monies received from the insurance coverage shall be paid to the State Emergency Response and Disaster Relief Fund. The Office of State Budget and Management shall ensure that those potentially affected by this section are notified of, and adhere to, its requirements.

(2)        No State funds appropriated in this section may be expended for the construction of any new residence within the 100‑year floodplain unless the construction is in an area regulated by a unit of local government pursuant to a floodplain management ordinance and the construction complies with the ordinance. As used in this section, 100‑year floodplain means any area subject to inundation by a 100‑year flood, as indicated on the most recent Flood Insurance Rate Map prepared by the Federal Emergency Management Agency under the National Flood Insurance Program.

(3)        Homeowners in the 100‑year floodplain who receive homeowner's housing assistance pursuant to this section shall have in effect federal flood insurance, if available, as a precondition to receipt of State homeowner's housing assistance for losses resulting from future flooding.

SECTION 5.8.(c)  Limitation. – Funds allocated in this section shall be expended in a manner that does not adversely affect any person's or entity's eligibility for federal funds that are made available, or that are anticipated to be made available, as a result of natural disasters.  To the extent practicable, funds allocated in this section shall not be used to cover costs that will be, or likely will be, covered by federal funds.

SECTION 5.8.(d)  No Reversion of Funds. – Funds allocated in this section shall remain available to implement the provisions of this section until the General Assembly directs the reversion of any unexpended and unencumbered funds and G.S. 143C‑6‑23(f1)(1) shall not apply to those funds.

SECTION 5.8.(e)  Reporting Requirements. – The Office of State Budget and Management shall provide periodic reports on the use of the funds allocated and appropriated in this section in a manner which is consistent with Section 5.8 of Session Law 2019‑250.

SECTION 5.8.(f)  Programmatic Support – The Office of State Budget and Management may use up to five percent (5%) of the funds allocated in subsections (a)(1), (a)(2), and (a)(3) for programmatic capacity and administrative expenses.

SECTION 5.8.(g)  Section 5.9(i) of S.L. 2021‑180 reads as rewritten:

SECTION 5.9A.(i)  North Carolina Insurance Underwriting Association (NCIUA) Coastal Resilient Roof Grant Pilot Program. – NCIUA shall establish the Coastal Resilient Roof Grant Pilot Program, adopt rules, and award amounts for resilient roof grant applicants under this pilot program. NCIUA must provide a match of one dollar ($1.00) in non‑State funds for one dollar ($1.00) provided in State grant funds. No eligible structureprimary residence, as defined by NCIUA rules, may receive more than three thousand three hundred four thousand dollars ($4,000) in State funds. for households with an income level not in excess of the median household income for that county or more than two thousand dollars ($2,000) in State funds for households with an income level in excess of the median household income for that county under this pilot program. NCIUA may use matching funds for evaluator costs and grants but shall not use any of the funds allocated for the pilot program for administrative costs. State funds allocated for this pilot program that are not encumbered or spent by June 30, 2025, shall revert to the General Fund. NCIUA will include a report on the pilot program funded by this subsection in the annual report required by G.S. 58‑45‑65. The report shall include information on the number of grants provided, geographical distribution of grants by county, and the average insured value of the structures receiving grant funding for resiliency improvements under this program. The NCIUA will provide this portion of its annual report to the Chairs of the Joint Legislative Emergency Management Oversight Committee and the Fiscal Research Division. The following definitions apply in this subsection:

(1)        Coastal area. – Defined in G.S. 58‑45‑5.

(2)        Eligible expense. – Costs for the replacement or upgrade of the roof of an eligible structure when the replacement or upgrade results in the roof meeting applicable resiliency standards issued by the Institute for Business and Home Safety or another construction storm resiliency standard that the NCIUA finds to be equivalent for purposes of reduction of risk of loss to the Coastal Property Insurance Pool (Pool) established by Article 45 of Chapter 58 of the General Statutes.

(3)        Eligible structure. – An eligible residential structure as defined by NCIUA rules and insured under a policy issued by the NCIUA through the Pool.

Flexibility for use of Unexpended Disaster Recovery Funds

SECTION 5.9.(a)  Section 3.1(a) of S.L. 2019‑250 reads as rewritten:

SECTION 3.1.(a)  Notwithstanding any other provision or law, any State agency that received funds pursuant to this act or any of the following enactments may reallocate unexpended and unobligated program funds to the same programs or purposes for damage caused by Hurricane Matthew, Florence, Michael, Dorian, Tropical Storm Fred, the earthquake in Sparta, or future storms:

(1)   S.L. 2016‑124.

(2)   S.L. 2017‑119.

(3)   Section 5.6 of S.L. 2018‑5.

(4)   S.L. 2018‑134.

(5)   S.L. 2018‑136

(6)   S.L. 2018‑138.

(7)   S.L. 2019‑3.

(8)   S.L. 2020‑97

(9)   S.L. 2021‑180

(10)           S.L. 2022‑74

SECTION 5.9.(b)  Notwithstanding any other provision of law, any State agency that received Tropical Storm Fred recovery funds pursuant to this act or any of the following enactments may reallocate unexpended and unobligated program funds to any program or purpose stated in those appropriations:

(1)   S.L. 2021‑180.

(2)   S.L. 2021‑189.

(3)   S.L. 2022‑6.

(4)   S.L. 2022‑74.

(5)   S.L. 2023‑11.

SECTION 5.9.(c)  Any State agency that reallocates funds pursuant to subsection (b) of this section shall report, at least 30 days prior to the reallocation, to the chairs of the Senate Appropriations/Base Budget Committee, the chairs of the House of Representatives Appropriations Committee, and the Fiscal Research Division. The report shall identify all of the following:

(1)   The original funding authorization.

(2)   The original program or purpose for the use of the funds.

(3)   The amount of funds expended or obligated for the original program or purpose.

(4)   The amount of funds that remain unexpended or unencumbered.

(5)   The amount of funds to be reallocated.

Part VI. Community college system

Propel NC funding model adjustment

SECTION 6.1.(a) The funds appropriated in this act for Propel NC shall be used to shift North Carolina Community College System's enrollment formula from the current tier‑based allocation model to a labor‑market driven model. This new model shall link courses to workforce sectors that are ranked and valued by statewide salary job demand data.

SECTION 6.1.(b) The State Board of Community Colleges in consultation with the Department of Commerce shall identify the workforce sectors aligned with the State's high‑demand, high‑salary jobs and allocate the funds appropriated in this act to those workforce sectors. Appropriated funds may also be used for customized training and Small Business Centers at the individual colleges.

Propel NC eNROLLMENT gROWTH rESERVE

SECTION 6.2.  G.S. 115D‑31 reads as rewritten:

§ 115D‑31. State financial support of institutions.

…

(e) If receipts for community college tuition and fees exceed the amount certified in General Fund Codes at the end of a fiscal year, the State Board of Community Colleges shall transfer retain the amount of receipts and fees above those budgeted to the Enrollment Growth Reserve.. Funds in the Enrollment Growth Reserve shall not revert to the General Fund and shall remain available to the State Board until expended. The State Board may allocate these funds in this reserve to colleges experiencing an enrollment increase greater than five percent (5%) of budgeted enrollment levels.proportionally to colleges based on actual receipt collections from the prior fiscal year.

(f) The Enrollment Growth Reserve shall be established as a recurring, nonreverting reserve under the direction of the State Board of Community Colleges. Funds appropriated by the North Carolina General Assembly shall be allocated based on actual fall semester FTE. The method of allocation shall be as follows: at one‑half the average FTE value per FTE for the greater of FTE increases in excess of 5% for each category of instruction, or for increases in total FTE greater than 325. If enrollment growth exceeds the funds appropriated in a given year, the value per FTE would be reduced proportionately.

NC Child care Grant Program Evaluation

SECTION 6.3. Of the funds appropriated in this act to the Community College System for Program Evaluation Funds, the Community College System shall use up to one hundred thousand dollars ($100,000) to evaluate the effectiveness of the Child Care Grant Program funded in S.L. 2023‑134. The Community College System Office may consult with the Office of State Budget and Management (OSBM) for assistance on how to develop an evaluation, including how to register and use a pre‑analysis plan. The Community College System Office shall report annually to OSBM and the Fiscal Research Division of the General Assembly on the progress of the evaluation and, when completed, make publicly available the pre‑analysis plan, the final evaluation report, and (to the extent possible) an anonymized version of the dataset(s) that is sufficient for others to replicate the reported analytics. The evaluation shall include, at a minimum, the following components:

(1)            Statistics that describe the uptake and use of the program, such as the number of applications received, amount of grant funds requested, number of applications approved, total amount of grant funds awarded, and the types of child care used by students with grant funds.

(2)            An estimate of the number of students who would not otherwise pursue community college but do so and receive credits as a result of this program.

(3)            An estimate of the number of students who would not otherwise continue community college studies but do so and receive credits as a result of this program.

(4)            An assessment of obstacles to receiving these grants by students who apply but do not qualify, and those who qualify but do not apply.

(5)            Recommendations on whether to continue the program and, if so, what program improvements might be made.

PART VII. PUBLIC INSTRUCTION

AVERAGE DAILY MEMBERSHIP CONTINGENCY RESERVE

SECTION 7.1.(a) Creation. –The Average Daily Membership (ADM) Contingency Reserve is established within the General Fund. The General Assembly shall appropriate in the Current Operations Appropriations Act or other appropriations act a specific amount to this reserve for allocation, on an as‑needed basis only, to fund increases in public school current year allotted ADM over prior year allotted ADM.

SECTION 7.1.(b) Definitions. – Allotted ADM and the funds requested per ADM will conform with State Board of Education policy, as documented in the Department of Public Instruction's Allotment Policy Manual.

SECTION 7.1.(c) Authorized Uses. – The funds in the ADM Contingency Reserve are available to the Department of Public Instruction for increases in a public school's current year allotted ADM over the prior year allotted ADM that was used to generate initial allotments. This includes increases to transportation allotments.

SECTION 7.1.(d) Request for Allocation. –The Department of Public Instruction may request an allocation from the ADM Contingency Reserve by submitting a report detailing the initial allotted ADM, the ADM increase, the funds allocated per ADM, and the total additional funds requested by school.

SECTION 7.1.(e) The Office of State Budget and Management (OSBM) must certify the need for any allocation before disbursing funds from the reserve. The OSBM shall report to the Fiscal Research Division on or before April 1 of each year on any disbursements made from the reserve.

COMPREHENSIVE REMEDIAL PLAN FORWARD FUND

SECTION 7.2.(a) Chapter 115C of the General Statutes is amended by adding a new Article to read:

Article 32G.

Sound Basic Education.

§ 115C‑472.20. Ensuring a Sound Basic Education for North Carolina Students.

(a)        The General Assembly finds that, due to the critical need in this State to provide opportunity for North Carolina public school students, it is imperative that the State fully fund and implement the Comprehensive Remedial Plan, as ordered by Judge David Lee on June 7th, 2021. To implement the plan, the state shall treat FY 2024‑25 as plan year three and adjust ensuing plan years accordingly. Therefore, there is appropriated from the General Fund the following amounts for each fiscal year to be used for the purposes set forth in the Plan and in order to accomplish these objectives by FY 2029‑30:

To the Department of Health and Human Services

Fiscal Year                                                                            Appropriation

2025‑2026                                                                                 $167,970,000

2026‑2027                                                                                 $370,370,000

2027‑2028                                                                                 $657,620,000

2028‑2029                                                                                 $904,570,000

2029‑2030                                                                              $1,190,720,000

For the 2030‑31 fiscal year and each fiscal year thereafter, there is appropriated from the General Fund the sum of one billion one hundred ninety million seven hundred twenty thousand dollars ($1,190,720,000) to be used for the purposes set forth in this section. When developing the base budget, as defined by G.S. 143C11, for each fiscal year specified in this subsection, the Director of the Budget shall include the appropriated amount specified in this subsection for that fiscal year.

To the Department of Public Instruction

Fiscal Year                                                                            Appropriation

2025‑2026                                                                                 $689,856,904

2026‑2027                                                                              $1,354,242,088

2027‑2028                                                                              $2,010,942,088

2028‑2029                                                                              $2,674,891,976

2029‑2030                                                                              $3,326,391,976

For the 203031 fiscal year and each fiscal year thereafter, there is appropriated from the General Fund the sum of three billion three hundred twenty‑six million three hundred ninety‑one thousand nine hundred seventy‑six dollars ($3,326,391,976) to be used for the purposes set forth in this section. When developing the base budget, as defined by G.S. 143C11, for each fiscal year specified in this subsection, the Director of the Budget shall include the appropriated amount specified in this subsection for that fiscal year.

To the University of North Carolina

Fiscal Year                                                                            Appropriation

2025‑2026                                                                                   $23,500,000

2026‑2027                                                                                   $44,700,000

2027‑2028                                                                                   $67,300,000

2028‑2029                                                                                   $85,600,000

2029‑2030                                                                                 $101,900,000

For the 2030‑31 fiscal year and each fiscal year thereafter, there is appropriated from the General Fund the sum of one hundred one million nine hundred thousand dollars ($101,900,000) to be used for the purposes set forth in this section. When developing the base budget, as defined by G.S. 143C11, for each fiscal year specified in this subsection, the Director of the Budget shall include the appropriated amount specified in this subsection for that fiscal year.

(b)        It is the intent of the General Assembly that all policy changes required by the Comprehensive Remedial Plan shall be implemented. The administering agencies shall make such changes if they possess the authority. In cases where legislative changes are necessary, the General Assembly shall implement such changes as required by the Plan.

BUDGET FLEXIBILITY FOR LOCAL BOARDS OF EDUCATION

SECTION 7.3.  G.S. 115C‑105.25(b) reads as rewritten:

§ 115C‑105.25.  Budget flexibility.

(b)        Subject to the following limitations, local boards of education may transfer and may approve transfers of funds between funding allotment categories:

…

(1b)     No funds shall be transferred out of the children with disabilities allotment  category.

…

(3a)      No funds shall be transferred out of the teacher assistants allotment category.

(3b)     No funds shall be transferred out of the academically or intellectually gifted children allotment category.

…

(5a)      No positions shall be transferred out of the allocation for classroom teachers for kindergarten through twelfth grade, except as provided in this subdivision. Positions allocated for classroom teachers may be converted to dollar equivalents to contract for visiting international exchange teachers through a visiting international exchange teacher program approved by the State. These positions shall be converted at the statewide average salary for classroom teachers, including benefits. The converted funds shall be used only to provide visiting international exchange teachers with salaries commensurate with their experience levels, to provide any State‑approved bonuses, and to cover the costs associated with supporting visiting international exchange teachers within the local school administrative unit, including programming and related activities, background checks, medical coverage, and other program administration services in accordance with the federal regulations for the Exchange Visitor Program, 22 C.F.R. Part 62.

(5b)      Positions Except as provided in subdivision (5a) of this subsection, positions allocated for classroom teachers and instructional support personnel may be converted to dollar equivalents for any purpose authorized by the policies of the State Board of Education. These positions shall be converted at the salary on the first step of the A Teachers Salary Schedule. Certified position allotments shall not be transferred to dollars to hire the same type of position.

(5d)     No positions shall be transferred out of the allocation for program enhancement teachers for kindergarten through fifth grade except as provided in this subdivision. Positions allocated for program enhancement teachers for kindergarten through fifth grade may be converted into positions allocated for classroom teachers for kindergarten through twelfth grade. For the purposes of this subdivision, the term program enhancement is as defined in G.S. 115C-301(c2).

…

(10a)    No funds shall be transferred out of the limited English proficiency allotment category.

…

(12)     Funds allotted for textbooks and digital resources may only be used for the purchase of textbooks and digital resources. These funds shall not be transferred out of the allotment for any other purpose.

FUNDS FOR CHILDREN WITH DISABILITIES

SECTION 7.4.  G.S. 115C‑111.05 reads as rewritten:

§ 115C‑111.05. Funding for children with disabilities.

To the extent funds are made available for this purpose, the State Board shall allocate funds for children with disabilities to each local school administrative unit on a per child basis. Each local school administrative unit shall receive funds for the lesser of (i) all children who are identified as children with disabilities or (ii) thirteen percent (13%) of its allocated average daily membership in the local school administrative unit for the current school year. The State Board of Education shall allocate additional funds for children with disabilities on the basis of five thousand six hundred seventy dollars ($5,670) for fiscal year 2024‑25 per child. Each local school administrative unit shall receive funds for the total number of children who are identified as children with disabilities in the local school administrative unit. The dollar amounts allocated under this section for children with disabilities shall also be adjusted in accordance with legislative salary increments, retirement rate adjustments, and health benefit adjustments for personnel who serve children with disabilities.

FUNDS FOR LIMITED ENGLISH PROFICIENCY

SECTION 7.5.  The State Board of Education shall allocate additional funds for services to students with limited proficiency in the English language to local school administrative units and to charter schools based on the three‑year weighted headcount of students in the units or charter school with limited English proficiency.

DISADVANTAGED STUDENT SUPPLEMENTAL FUNDING (DSSF)/AT‑RISK STUDENT SERVICES/ALTERNATIVE SCHOOLS

SECTION 7.6.  G.S. 115C‑472.19 reads as rewritten:

§ 115C‑472.19.  Disadvantaged student supplemental funding.

(a)        To the extent funds are made available for this purpose, funds appropriated for disadvantaged student supplemental funding shall be used, consistent with the policies and procedures adopted by the State Board of Education, only to do the following:

(1)        Provide instructional positions or instructional support positions.

(2)        Provide professional development.

(3)        Provide intensive in‑school or after‑school remediation, or both.

(4)        Purchase diagnostic software and progress‑monitoring tools.

(5)        Provide funds for teacher bonuses and supplements. The State Board of Education shall set a maximum percentage of the funds that may be used for this purpose.

The State Board of Education may require local school administrative units receiving funding under the Disadvantaged Student Supplemental Fund to purchase the Education Value‑Added Assessment System (EVAAS) in order to provide in‑depth analysis of student performance and help identify strategies for improving student achievement. This data shall be used exclusively for instructional and curriculum decisions made in the best interest of children and for professional development for their teachers and administrators.

(b)        Disadvantaged student supplemental funding (DSSF) shall be allotted to a local school administrative unit based on (i) the unit's eligible DSSF population and (ii) the difference between a teacher‑to‑student ratio of 1:21 and the following teacher‑to‑student ratios:

(1)        For counties with wealth greater than ninety percent (90%) of the statewide average, a ratio of 1:19.9.

(2)        For counties with wealth not less than eighty percent (80%) and not greater than ninety percent (90%) of the statewide average, a ratio of 1:19.4.

(3)        For counties with wealth less than eighty percent (80%) of the statewide average, a ratio of 1:19.1.

(4)        For local school administrative units that received DSSF funds in fiscal year 2005‑2006, a ratio of 1:16. These local school administrative units shall receive no less than the DSSF amount allotted in fiscal year 2006‑2007.

For the purpose of this subsection, wealth shall be calculated under the low‑wealth supplemental formula as provided for in this Article.

(c)        If a local school administrative unit's wealth increases to a level that adversely affects the unit's disadvantaged student supplemental funding (DSSF) allotment ratio, the DSSF allotment for that unit shall be maintained at the prior year level for one additional fiscal year.

(d)       For the 2024‑25 fiscal year the State Board of Education shall transfer the At‑Risk Student Services/Alternative Schools allotment into the DSSF allotment and allocate these funds to local school administrative units under a formula that:

(1)        Expands the allowable uses of the DSSF allotment to incorporate activities allowed under the current At‑Risk allotment; and

(2)        Provides that no local administrative unit receives a decrease in combined funding.

Reallocated At‑Risk funding must be counted as an independent supplement to existing DSSF funds.

NATIONAL BOARD CERTIFICATION FEE SUPPORT

SECTION 7.7.(a)  Of the funds appropriated to the Department of Public Instruction by this act, the Department shall transfer the sum of nine hundred thousand dollars ($900,000) in fiscal year 2024‑25 to the State Education Assistance Authority to pay the application fees for first time candidates applying for certification by the National Board for Professional Teaching Standards. Funds shall be available beginning with the 2024‑25 school year.

SECTION 7.7.(b)  G.S. 115C‑296.2 reads as rewritten:

§ 115C‑296.2.  National Board for Professional Teaching Standards Certification. 

(a)        State Policy. – It is the goal of the State to provide opportunities and incentives for good teachers to become excellent teachers and to retain them in the teaching profession; to attain this goal, the State shall support the efforts of teachers to achieve national certification by providing approved paid leave time for teachers participating in the process, lending teachers paying the participation fee, and paying a significant salary differential to teachers who attain national certification from the National Board for Professional Teaching Standards (NBPTS).

…

(c)        Payment of the NBPTS Participation Fee; Paid Leave. – The State shall lend provide teachers the participation fee and shall provide up to three days of approved paid leave to all teachers participating in the NBPTS program who:

(1)        Have completed three full years of teaching in a North Carolina public school; and

(2)        Have (i) not previously received State funds for participating in any certification area in the NBPTS program, (ii) repaid any State funds previously received for the NBPTS certification process, or (iii) received a waiver of repayment from the State Board of Education.

Teachers participating in the program shall take paid leave only with the approval of their supervisors.

….

NORTH CAROLINA VIRTUAL PUBLIC SCHOOL FUNDING

SECTION 7.8.  Of the funds appropriated in this act to the Department of Public Instruction, the State Board of Education shall use the sum of three million dollars ($3,000,000) in the 2024‑2025 fiscal year to offset the costs for local school administrative units and charter schools to participate in North Carolina Virtual Public School (NCVPS).

TEACHER ASSISTANTS

SECTION 7.9.  It is the intent of the General Assembly to incrementally increase funding for the Teacher Assistants allotment and to simplify the formula for allotting funding in order to provide funding for one teacher assistant for every 27 kindergarten year through third grade students by fiscal year 2029‑30. Teacher Assistant funding shall be allotted to a local school administrative unit based on a teacher assistant‑to‑kindergarten through third grade student ratio of 1:34 in fiscal year 2024‑25.

SUPPLEMENTAL FUNDING IN LOW‑WEALTH COUNTIES

SECTION 7.10. G.S. 115C‑472.17 reads as rewritten:

§ 115C‑472.17.  Supplemental funding in low‑wealth counties.

(a)        Use of Funds for Supplemental Funding. – To the extent funds are made available for this purpose, all funds received pursuant to this section shall be used only (i) to provide instructional positions, instructional support positions, teacher assistant positions, clerical positions, school computer technicians, instructional supplies and equipment, staff development, and textbooks and digital resources and (ii) for salary supplements for instructional personnel and instructional support personnel. Local boards of education are encouraged to use at least twenty‑five percent (25%) of the funds received pursuant to this section to improve the academic performance of children who are performing at Level I or II on either reading or mathematics end‑of‑grade tests in grades three through eight.

(b)        Definitions. – As used in this section, the following definitions apply:

(1)        Anticipated county property tax revenue availability. – The county‑adjusted property tax base multiplied by the effective State average tax rate.

(2)        Anticipated State average revenue availability per student. – The sum of all anticipated total county revenue availability divided by the average daily membership for the State.

(3)        Anticipated total county revenue availability. – The sum of the following:

a.         Anticipated county property tax revenue availability.

b.         Local sales and use taxes received by the county that are levied under Chapter 1096 of the 1967 Session Laws or under Subchapter VIII of Chapter 105 of the General Statutes.

c.         Fines and forfeitures deposited in the county school fund for the most recent year for which data are available.

(4)        Anticipated total county revenue availability per student. – The anticipated total county revenue availability for the county divided by the average daily membership of the county.

(5)        Average daily membership. – Average daily membership as defined in the North Carolina Public Schools Allotment Policy Manual adopted by the State Board of Education. If a county contains only part of a local school administrative unit, the average daily membership of that county includes all students who reside within the county and attend that local school administrative unit.

(6)        County‑adjusted property tax base. – Computed as follows:

a.         Subtract the present‑use value of agricultural land, horticultural land, and forestland in the county, as defined in G.S. 105‑277.2, from the total assessed real property valuation of the county.

b.         Adjust the resulting amount by multiplying by a weighted average of the three most recent annual sales assessment ratio studies.

c.         Add to the resulting amount the following:

1.         Present‑use value of agricultural land, horticultural land, and forestland, as defined in G.S. 105‑277.2.

2.         Value of property of public service companies, determined in accordance with Article 23 of Chapter 105 of the General Statutes.

3.         Personal property value for the county.

(7)        County‑adjusted property tax base per square mile. – The county‑adjusted property tax base divided by the number of square miles of land area in the county.

(8)        County wealth as a percentage of State average wealth. – Computed as follows:

a.         Compute the percentage that the county per capita income is of the State per capita income and weight the resulting percentage by a factor of five‑tenths.

b.         Compute the percentage that the anticipated total county revenue availability per student is of the anticipated State average revenue availability per student and weight the resulting percentage by a factor of four‑tenths.

c.         Compute the percentage that the county‑adjusted property tax base per square mile is of the State‑adjusted property tax base per square mile and weight the resulting percentage by a factor of one‑tenth.

d.         Add the three weighted percentages to derive the county wealth as a percentage of the State average wealth.

(9)        Effective county tax rate. – The actual county tax rate multiplied by a weighted average of the three most recent annual sales assessment ratio studies.

(10)      Effective State average tax rate. – The average of effective county tax rates for all counties.

(11)      Local current expense funds. – The most recent county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C‑447.

(12)      Per capita income. – The average for the most recent three years for which data are available of the per capita income according to the most recent report of the United States Department of Commerce, Bureau of Economic Analysis, including any reported modifications for prior years as outlined in the most recent report.

(13)      Sales assessment ratio studies. – Sales assessment ratio studies performed by the Department of Revenue under G.S. 105‑289(h).

(14)      State average adjusted property tax base per square mile. – The sum of the county‑adjusted property tax bases for all counties divided by the number of square miles of land area in the State.

(15)      State average current expense appropriations per student. – The most recent State total of county current expense appropriations to public schools, as reported by local boards of education in the audit report filed with the Secretary of the Local Government Commission pursuant to G.S. 115C‑447.

(16)      Supplant. – To decrease local per student current expense appropriations from one fiscal year to the next fiscal year.

(17)      Weighted average of the three most recent annual sales assessment ratio studies. – The weighted average of the three most recent annual sales assessment ratio studies in the most recent years for which county current expense appropriations and adjusted property tax valuations are available. If real property in a county has been revalued one year prior to the most recent sales assessment ratio study, a weighted average of the two most recent sales assessment ratios shall be used. If property has been revalued the year of the most recent sales assessment ratio study, the sales assessment ratio for the year of revaluation shall be used.

(c)        Eligibility for Funds. – Except as provided in subsection (g) of this section, the State Board of Education shall allocate these funds to local school administrative units located in whole or in part in counties in which the county wealth as a percentage of the State average wealth is less than one hundred percent (100%).

(d)       Allocation of Funds. – Except as provided in subsection (f) of this section, the amount received per average daily membership for a county shall be the difference between the State average current expense appropriations per student and the current expense appropriations per student that the county could provide given the county's wealth and an average effort to fund public schools. To derive the current expense appropriations per student that the county could be able to provide given the county's wealth and an average effort to fund public schools, multiply the county's wealth as a percentage of State average wealth by the State average current expense appropriations per student. The funds for the local school administrative units located in whole or in part in the county shall be allocated to each local school administrative unit located in whole or in part in the county based on the average daily membership of the county's students in the school units. If the funds appropriated for supplemental funding are not adequate to fund the formula fully, each local school administrative unit shall receive a pro rata share of the funds appropriated for supplemental funding.

(e)        Formula for Distribution of Supplemental Funding Pursuant to this Section Only. – The formula in this section is solely a basis for distribution of supplemental funding for low‑wealth counties and is not intended to reflect any measure of the adequacy of the educational program or funding for public schools. The formula is also not intended to reflect any commitment by the General Assembly to appropriate any additional supplemental funds for low‑wealth counties. It is the intent of the General Assembly to incrementally increase appropriations for the low‑wealth allotment to provide eligible counties supplemental funding equal to one hundred ten percent (110%) of the statewide local revenue per student by fiscal year 2029‑30. The State Board of Education shall adjust the formula to ensure each local school administrative unit receives a pro rata share of the additional funds appropriated for the low‑wealth allotment in this act for supplemental funding.

(f)        Minimum Effort Required. – A county shall receive full funding under this section if the county (i) maintains an effective county tax rate that is at least one hundred percent (100%) of the effective State average tax rate in the most recent year for which data are available or (ii) maintains a county appropriation per student to the school local current expense fund of at least one hundred percent (100%) of the current expense appropriations per student to the school local current expense fund that the county could provide given the county's wealth and an average effort to fund public schools. A county that maintains a county appropriation per student to the school local current expense fund of less than one hundred percent (100%) of the current expense appropriations per student to the school local current expense fund that the county could provide given the county's wealth and an average effort to fund public schools shall receive funding under this section at the same percentage that the county's appropriation per student to the school local current expense fund is of the current expense appropriations per student to the school local current expense fund that the county could provide given the county's wealth and an average effort to fund public schools.

(g)        Nonsupplant Requirement. – A county in which a local school administrative unit receives funds under this section shall use the funds to supplement local current expense funds and shall not supplant local current expense funds. The State Board of Education shall not allocate funds under this section to a county found to have used these funds to supplant local per student current expense funds. The State Board of Education shall make a finding that a county has used these funds to supplant local current expense funds in the prior year, or the year for which the most recent data are available, if all of the following criteria apply:

(1)        The current expense appropriations per student of the county for the current year is less than ninety‑five percent (95%) of the average of local current expense appropriations per student for the three prior fiscal years.

(2)        The county cannot show (i) that it has remedied the deficiency in funding or (ii) that extraordinary circumstances caused the county to supplant local current expense funds with funds allocated under this section.

The State Board of Education shall adopt rules to implement the requirements of this subsection.

(h)        Counties Containing a Base of the Armed Forces. – Notwithstanding any other provision of this section, for the 2024‑2025 and 2025‑2026 fiscal years, counties containing a base of the Armed Forces of the United States that have an average daily membership of more than 17,000 students shall receive whichever is the higher amount in each fiscal year as follows: either the amount of supplemental funding the county received as a low‑wealth county in the 2012‑2013 fiscal year or the amount of supplemental funding the county is eligible to receive as a low‑wealth county pursuant to the formula for distribution of supplemental funding under the other provisions of this section.

(i)         Funds for EVAAS Data. – Notwithstanding the requirements of subsection (a) of this section, local school administrative units may utilize funds allocated under this section to purchase services that allow for extraction of data from the Education Value‑Added Assessment System (EVAAS).

(j)         Reports. – The State Board of Education shall report to the Fiscal Research Division prior to May 15 of each year if it determines that counties have supplanted funds.

(k)        Department of Revenue Reports. – The Department of Revenue shall provide to the Department of Public Instruction a preliminary report for the current fiscal year of the assessed value of the property tax base for each county prior to March 1 of each year and a final report prior to May 1 of each year. The reports shall include for each county the annual sales assessment ratio and the taxable values of (i) total real property, (ii) the portion of total real property represented by the present use value of agricultural land, horticultural land, and forestland, as defined in G.S. 105‑277.2, (iii) property of public service companies determined in accordance with Article 23 of Chapter 105 of the General Statutes, and (iv) personal property.

TEACHER PREPARATION RESIDENCY FOR HIGH‑NEED DISTRICTS

SECTION 7.11.(a)  Purpose. – The State Board of Education shall establish a grant program to assist local school administrative units in the development of teacher preparation residency pilot programs. Teacher preparation residency programs provide the necessary preparation and induction supports to teacher preparation candidates pursuing a continuing professional license. Teacher preparation residency programs eligible to receive grant funding through this program shall include, at a minimum, the following components:

1.      Coursework in the candidate's area of licensure;

2.      Tuition and stipends;

3.      Faculty advising;

4.      Clinical training experiences; and

5.      Ongoing induction support.

Residency programs eligible for this grant program may include partnerships between local school administrative units, educator preparation programs, local community college or universities, and other community organizations. Grant funds awarded to local school administrative units under this program shall be matched by the local school administrative unit on the basis of one dollar ($1.00) in non‑grant funds for every one dollar ($1.00) in grant funds.

Resident teachers shall be placed in schools identified as low‑performing, as defined in GS 115C‑105.37, schools identified as continually low‑performing as defined in GS 115C‑105.37A, or schools where seventy‑five percent (75%) or greater of students qualify for free or reduced‑price lunch under the National School Lunch Program.

SECTION 7.11.(b)  Request for Proposal. – By October 1, 2024, the State Board of Education shall issue a Request for Proposal (RFP) for the grant program. Local boards of education shall submit their proposals by January 15, 2025. The RFP shall require that proposals include the following information at a minimum:

1.      Description of the proposal, including the number of teacher preparation candidates to be served;

2.      Evidence‑based research that supports the proposal;

3.      Implementation plan; and

4.      Plans for financial sustainability once grant money is no longer available.

SECTION 7.11.(c)  Grant Awards. – By April 15, 2025, the State Board of Education shall review the proposals submitted by local boards of education and shall select up to 10 local school administrative units for grant awards. The State Board of Education may make grant awards for up to three years. A local school administrative unit may not receive more than five hundred thousand dollars ($500,000) in a single fiscal year from this grant program.

SECTION 7.11.(d)  Evaluation and Reporting. – Of the funds appropriated by this act, the State Board of Education may use up to three hundred thousand dollars ($300,000) to contract with an independent research organization to evaluate the impact of this grant program. The independent research organization shall report the results of this evaluation to the Joint Legislative Education Oversight Committee, the Fiscal Research Division of the General Assembly, and the Office of State Budget and Management by September 1, 2027. The Department of Public Instruction shall report annually on the implementation of this grant program beginning on March 1, 2026.

SECTION 7.11.(e)  Carryforward. – Funds unspent in the 2024‑25 fiscal year shall not revert and shall be carried forward to implement this section.

RESIDENTIAL SCHOOLS

SECTION 7.12.(a)  Section 1 of S.L. 2023‑10 reads as rewritten:

…

§ 115C‑150.11.  State Board of Education as governing agency.General supervision over schools for the deaf and blind.

(a)        State Board of Education Supervision. – The State Board of Education shall be the sole governing agency for the Governor Morehead School for the Blind, the Eastern North Carolina School for the Deaf, and the North Carolina School for the Deaf. The Superintendent of Public Instruction through the Department of Public Instruction shall be responsible for the administration and oversight of a school governed by this Article. Notwithstanding G.S. 143C‑6‑4, the Department of Public Instruction may reorganize, if necessary, staffing to enhance administrative support for the Governor Morehead School, the North Carolina School for the Deaf, and the Eastern North Carolina School for the Deaf to meet needed functions.have general supervision over the schools for the deaf and blind in accordance with G.S. 115C‑12 and shall establish approximately equivalent service areas for each school for the deaf that cover the entire State. In establishing the service area for each school for the deaf, the State Board shall consider both the geographic proximity to the school for the deaf and the population of the service area. The State Board shall evaluate the effectiveness of the schools for the deaf and blind and shall, through the application of the accountability system developed under G.S. 115C‑83.15 and G.S. 115C‑105.35, measure the educational performance and growth of students placed in each school. If appropriate, the Board may modify this system to adapt to the specific characteristics of these schools. The boards of trustees for the schools for the deaf and blind shall be subject to rules adopted by the State Board of Education in accordance with Chapter 150B of the General Statutes.

(b)        Independent Operation. – Except as otherwise provided for in this Article, the schools for the deaf and blind shall be housed administratively within the Department of Public Instruction for purposes of distribution of State funds, but each school for the deaf and blind shall operate independently with a board of trustees as the governing body. The Department of Public Instruction shall include employees of the schools for the deaf and blind in coverage for professional liability policies purchased by the Department for its employees and shall facilitate the purchase of other insurance policies for those schools. In all other matters, the Department of Public Instruction shall provide services, support, and assistance to schools for the deaf and blind in the same manner and degree as for a local school administrative unit.

SECTION 7.12.(b)  G.S. 115C‑150.12A, 12B, and 12C are repealed.

SECTION 7.12.(c)  G.S. 115C‑150 is amended by adding a new section to read:

§ 115C‑150.12D.  Applicability of Chapter.

Except as otherwise provided, the requirements of this Chapter shall apply to the schools governed by this Article.

SECTION 7.12.(d)  G.S. 115C‑150.13A reads as rewritten:

§ 115C‑150.13A.  Admissions.

(a)        Rules. – Schools for the deaf and blind shall admit students in accordance with eligibility criteria, standards, and procedures established through rules by the board of trusteesState Board of Education in accordance with the requirements of this Article.

…

SECTION 7.12.(e)  G.S. 115C‑150.14A reads as rewritten:

§ 115C‑150.14A.  Nonresident students.

(a)        For the purposes of this section, the following definitions shall apply:

(1)        Foreign exchange student. – A student who is domiciled in a foreign country and has come to the United States on a valid, eligible student visa.

(2)        Nonresident student. – An out‑of‑state student or foreign exchange student.

(3)        Out‑of‑state student. – A student who is domiciled in a state other than North Carolina.

(b)        Schools for the deaf and blind may enroll nonresident students in the educational program who otherwise meet admissions criteria established for all students. A school shall charge the full, unsubsidized per capita cost of providing education at the school for the period of the nonresident student's attendance, including the cost of tuition, and the cost of room and board for any student whose parent elects for the student to board at the school in order to access the educational program.

(c)        Schools for the deaf and blind that seek to enroll nonresident students under this section shall submit a plan prior to enrolling any of those students to the board of trusteesState Board of Education for approval, including the proposed costs to be charged to the nonresident students for tuition and room and board and information on compliance with federal law requirements.

SECTION 7.12.(f)  G.S. 115C‑150.16 is repealed.

SECTION 7.12.(g)  G.S. 115C‑5 reads as rewritten:

§ 115C‑5.  Definitions.

As used in this Chapter unless the context requires otherwise:

…

(3a)      The governing body of a public school unit is the following:

a.         For a local school administrative unit, the local board of education.

b.         For a charter school, the nonprofit corporation board of directors.

c.         For a regional school, the regional school board of directors.

d.         For a school operated under Article 9C of this Chapter, the State Board of Education.board of trustees.

e.         For a school operated under Article 29A of Chapter 116 of the General Statutes, the chancellor of the constituent institution.

….

SECTION 7.12.(h)  G.S. 115C.51(g) reads as rewritten:

(g)      For the purposes of this section, a public secondary school is any of the following types of public school serving grades six or higher:

(1)        A school under the control of a local school administrative unit.

(2)        A school under the control of the State Board of Education, including schools for the deaf or blind operated under Article 9C of this Chapter.

(3)        A school under the control of The University of North Carolina.

(4)        A charter school.

(5)        A regional school.

SECTION 7.12.(i)  G.S. 115C.51(c1) reads as rewritten:

(c1)    Except as to the provisions of Articles 6 and 7 of this Chapter, the provisions of this Chapter shall not apply to:

…

(8a)      Employees of a regional school established pursuant to Part 10 of Article 16 of Chapter 115C of the General Statutes.

(8b)      Employees of a school for the deaf or blind governed by Article 9C of Chapter 115C of the General Statutes hired on or after July 1, 2024.

….

SECTION 7.12.(j)  G.S. 138‑5(a) reads as rewritten:

(a)      Except as provided in subsections (c) and (f) of this section, members of State boards, commissions, committees and councils which operate from funds deposited with the State Treasurer shall be compensated for their services at the following rates:

(1)        Except as otherwise provided by this subdivision, compensation at the rate of fifteen dollars ($15.00) per diem for each day of service. Members of the North Carolina Vocational Rehabilitation Council, the Statewide Independent Living Council, and the Commission for the Blind who are unemployed or who shall forfeit wages from other employment to attend Council or Commission meetings or to perform related duties, may receive compensation not to exceed fifty dollars ($50.00) per diem for attending these meetings or performing related duties, as authorized by sections 105 and 705 of the Rehabilitation Act of 1973, P.L. 102‑569, 42 U.S.C. § 701, et seq., as amended. Members of the Board of Trustees of the Eastern North Carolina School for the Deaf, the Board of Trustees of the North Carolina School for the Deaf, and the Board of Trustees of the Governor Morehead School for the Blind may receive compensation not to exceed fifty dollars ($50.00) per diem for attending trustee meetings or performing related duties.

(2)        Reimbursement of subsistence expenses at the rates allowed to State officers and employees by subdivision (3) of G.S. 138‑6(a).

(3)        Reimbursement of travel expenses at the rates allowed to State officers and employees by subdivisions (1) and (2) of G.S. 138‑6(a).

(4)        For convention registration fees, the actual amount expended, as shown by receipt.

SECTION 7.12.(k).  G.S. 150B‑1(d) reads as rewritten:

…

(32)    The Alcoholic Beverage Control Commission with respect to approval of alcoholic beverages to be sold in local ABC stores through the State warehouse and by special order pursuant to Article 8 of Chapter 18B of the General Statutes.

(33)      The Eastern North Carolina School for the Deaf, the North Carolina School for the Deaf, and the Governor Morehead School for the Blind.

SECTION 7.12.(l)  Section 4.(a) of S.L. 2023‑10 reads as rewritten:

For the 2023‑2024 school year only, the The State Board of Education shall adopt rules by August 4, 20232024, for eligibility criteria, standards, and procedures for admission to the schools for the deaf and blind in accordance with this section following consultation with the Superintendent of Public Instruction and directors of the schools for the deaf and blind. These rules shall be exempt from the requirements of Article 2A of Chapter 150B of the General Statutes.

SECTION 7.12.(m)  Section 5, Section 6, Section 7, Section 8, and Section 9 of S.L. 2023‑10 are repealed.

SECTION 7.12.(n)  This act is effective July 1, 2024.

TRANSPORTATION EMERGENCY RESERVE

SECTION 7.13.  G.S. 115C‑240(e) reads as rewritten:

(e)      The State Board of Education shall allocate to the respective local boards of education funds appropriated from time to time by the General Assembly for the purpose of providing transportation to the pupils enrolled in the public schools within this State. Such funds shall be allocated by the State Board of Education based on the efficiency of the local school administrative units in transporting pupils. The efficiency of the units shall be calculated using the number of pupils to be transported, the length of bus routes, road conditions and all other circumstances affecting the cost of the transportation of pupils by school bus to the end that the funds so appropriated may be allocated on a fair and equitable basis, according to the needs of the respective local school administrative units. Such allocation shall be made by the State Board of Education at the beginning of each fiscal year, based on the most recently available data from a prior school year. The State Board may reserve for future allocation a reasonable amount not to exceed five percent (5%) of the total funds available for transportation in such fiscal year from such appropriation. Prior to April 1 of the fiscal year in which the funds are reserved, the reserved funds shall be allocated only in the event of an emergency need of a local school administrative unit. In the event reserved funds remain by April 1 of that fiscal year, the State Board shall allocate the remaining funds to all local school administrative units based on the efficiency of the units in transporting pupils. If there is evidence of inequitable or inefficient use of funds, the State Board of Education shall be empowered to review school bus routes established by local boards pursuant to G.S. 115C-246 as well as other factors affecting the cost of the transportation of pupils by school bus.

...

(e)   There is established the Transportation Emergency Reserve. The reserved funds shall be allocated only in the event of an emergency need of a local school administrative unit. Funds remaining in this reserve at the end of each state fiscal year shall revert to the General Fund.

PART VII‑A. COMPENSATION OF PUBLIC SCHOOL EMPLOYEES

TEACHER SALARY SCHEDULE

SECTION 7A.1.(a)  The following monthly teacher salary schedule shall apply for the 2024‑25 fiscal year to licensed personnel of the public schools who are classified as teachers. The salary schedule is based on years of teaching experience.

2024‑25 Teacher Monthly Salary Schedule

Years of Experience                                                              A Teachers

0                                                                                          4,600

1                                                                                          4,660

2                                                                                          4,720

3                                                                                          4,780

4                                                                                          4,840

5                                                                                          4,900

6                                                                                          4,960

7                                                                                          5,020

8                                                                                          5,080

9                                                                                          5,140

10                                                                                        5,200

11                                                                                        5,260

12                                                                                        5,320

13                                                                                        5,380

14                                                                                        5,440

15‑17                                                                                  5,500

18‑20                                                                                  5,575

21‑23                                                                                  5,650

24‑26                                                                                  5,725

27‑29                                                                                  5,800

30+                                                                                     5,875

SECTION 7A.1.(b)  Salary Supplements for Teachers Paid on This Salary Schedule.

(1)        Licensed teachers who have NBPTS certification shall receive a salary supplement each month of twelve percent (12%) of their monthly salary on the A salary schedule.

(2)        Licensed teachers who are classified as M teachers shall receive a salary supplement each month of ten percent (10%) of their monthly salary on the A salary schedule.

(3)        Licensed teachers with licensure based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the supplement provided to them as M teachers.

(4)        Licensed teachers with licensure based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the supplement provided to them as M teachers.

(5)        Certified school nurses shall receive a salary supplement each month of ten percent (10%) of their monthly salary on the A salary schedule.

(6)        School counselors who are licensed as counselors at the master's degree level or higher shall receive a salary supplement each month of one hundred dollars ($100.00).

SECTION 7A.1.(c)  For school psychologists, school speech pathologists who are licensed as speech pathologists at the master's degree level or higher, and school audiologists who are licensed as audiologists at the master's degree level or higher, the following shall apply:

(1)        The first step of the salary schedule shall be equivalent to the sixth step of the A salary schedule.

(2)        These employees shall receive the following salary supplements each month:

a.         Ten percent (10%) of their monthly salary, excluding the supplement provided pursuant to sub‑subdivision b. of this subdivision.

b.         Three hundred fifty dollars ($350.00).

(3)        These employees are eligible to receive salary supplements equivalent to those of teachers for academic preparation at the six‑year degree level or the doctoral degree level.

(4)        The twenty‑sixth step of the salary schedule shall be seven and one‑half percent (7.5%) higher than the salary received by these same employees on the twenty‑fifth step of the salary schedule.

SECTION 7A.1.(d)  Beginning with the 2014‑15 fiscal year, in lieu of providing annual longevity payments to teachers paid on the teacher salary schedule, the amounts of those longevity payments are included in the monthly amounts under the teacher salary schedule.

SECTION 7A.1.(e)  A teacher compensated in accordance with this salary schedule for the 2024‑25 school year shall receive an amount equal to the greater of the following:

(1)        The applicable amount on the salary schedule for the applicable school year.

(2)        For teachers who were eligible for longevity for the 2013‑14 school year, the sum of the following:

a.         The salary the teacher received in the 2013‑14 school year pursuant to Section 35.11 of S.L. 2013‑360.

b.         The longevity that the teacher would have received under the longevity system in effect for the 2013‑14 school year provided in Section 35.11 of S.L. 2013‑360 based on the teacher's current years of service.

c.         The annual bonus provided in Section 9.1(e) of S.L. 2014‑100.

(3)        For teachers who were not eligible for longevity for the 2013‑14 school year, the sum of the salary and annual bonus the teacher received in the 2014‑15 school year pursuant to Section 9.1 of S.L. 2014‑100.

SECTION 7A.1.(f)  As used in this section, the term teacher shall also include instructional support personnel.

RESTORE MASTER'S PAY

SECTION 7A.2.(a)  The following session laws are repealed:

(1)        Section 8.22 of S.L. 2013‑360.

(2)        Section 8.3 of S.L. 2014‑100.

SECTION 7A.2.(b)  G.S. 115C‑302.10 reads as rewritten:

§ 115C‑302.10. Qualifications for certain education‑based salary supplements.

(a)        Notwithstanding any other provision of law, only the following teachers and instructional support personnel shall be paid on the M salary schedule or receive a salary supplement for academic preparation at the six‑year degree level or at the doctoral degree level:

(1)        Certified school nurses and instructional support personnel in positions for which a master's degree is required for licensure.

(2)        Teachers and instructional support personnel who were paid on the M salary schedule or received that salary supplement prior to the 2014‑15 school year.

(3)        Teachers and instructional support personnel who (i) complete a degree at the master's, six‑year, or doctoral degree level for which they completed at least one course prior to August 1, 2013, and (ii) would have qualified for the salary supplement pursuant to State Board of Education policy, TCPA006, as it was in effect on June 30, 2013.

(4)        Teachers who do not qualify under subdivisions (1), (2), and (3) of this section but who spend at least seventy percent (70%) of their time as follows:

a.         For teachers, in classroom instruction related to their graduate academic preparation in their field or subject area within their area of licensure. Most of the teachers' remaining time shall be spent in one or more of the following:

1.         Mentoring teachers.

2.         Performing demonstration lessons for teachers.

3.         Writing curricula.

4.         Developing and leading staff development programs for teachers

b.         For instructional support personnel, performing work within the employee's area of graduate academic preparation.

(b)        Beginning with the 2024‑25 fiscal year and in subsequent fiscal years, for teachers who are paid on the M salary schedule under subdivision (4) of subsection (a) of this act, determination of whether teachers shall be paid on the M salary schedule or receive a salary supplement for academic preparation shall take place on an annual basis. Teachers may be moved off the M salary schedule or discontinue receiving salary supplements if they are not meeting the requirements of subdivision (4) of subsection (a) of this act in that year.

(c)        Unless an individual otherwise qualifies under subdivision (2) or (3) of subsection (a) of this section, teachers and instructional support personnel who earn an advanced degree in school administration shall not be paid on the M salary schedule or receive a salary supplement for academic preparation.

PRINCIPAL SALARY SCHEDULE

SECTION 7A.3.(a)  The following annual salary schedule for principals shall apply for the 2024‑25 fiscal year, beginning July 1, 2024.

2024‑25 Principal Annual Salary Schedule

Avg. Daily Membership              Base                      Met Growth         Exceeded Growth

0‑200                                       $82,460                 $90,704                 $98,951

201‑400                                   $86,582                 $95,240                 $103,898

401‑700                                   $90,704                 $99,776                 $108,846

701‑1,000                                $94,829                 $104,310               $113,794

1,001‑1,600                             $98,951                 $108,846               $118,741

1,601+                                     $103,073               $113,381               $123,688

SECTION 7A.3.(c)  A principal's placement on the salary schedule shall be determined according to the average daily membership of the school supervised by the principal, as described in subsection (b) of this section, and the school growth scores, calculated pursuant to G.S. 115C‑83.15(c), for each school the principal supervised in at least two of the prior three school years, as described in subsection (c) of this section, regardless of a break in service, and provided the principal supervised each school as a principal for at least a majority of the school year, as follows:

(1)        A principal shall be paid according to the Exceeded Growth column of the schedule if the school growth scores show the school or schools exceeded expected growth in at least one of the prior two school years.

(2)        A principal shall be paid according to the Met Growth column of the schedule if any of the following apply:

a.         The higher school growth score in one of the two prior school years shows that the school met expected growth.

b.         The principal supervised a school in the two prior school years that was not eligible to receive a school growth score.

(3)        A principal shall be paid according to the Base column if either of the following apply:

a.         The school growth scores show the school or schools did not meet expected growth in either of the two prior years.

b.         The principal has not supervised any school as a principal for a majority of the school year in at least the two prior school years.

SECTION 7A.3.(d)  For purposes of determining the average daily membership of a principal's school in the 2024‑25 school year, placement on the schedule related to average daily membership shall be based on the average daily membership for the school from the 2023‑2024 school year. If the school did not have an average daily membership in the 2023‑24 school year, the projected average daily membership for the school for the 2024‑25 school year shall be used between July 1, 2024 and December 31, 2024, and the average daily membership for the school shall be used between January 1, 2025 and June 30, 2025.

SECTION 7A.3.(e)  For purposes of determining the school growth scores for each principal in the 2024‑25 school year, placement on the schedule related to school growth scores shall be based on the placement of the principal in the 2023‑24 school year.

SECTION 7A.3.(f)  Beginning with the 2017‑18 fiscal year, in lieu of providing annual longevity payments to principals paid on the principal salary schedule, the amounts of those longevity payments are included in the annual amounts under the principal salary schedule.

SECTION 7A.3.(g)  A principal compensated in accordance with this section for the 2023‑2024 fiscal year shall receive an amount equal to the greater of the following:

(1)        The applicable amount determined pursuant to subsections (a) through (d) of this section.

(2)        For principals who were eligible for longevity in the 2016‑17 fiscal year, the sum of the following:

a.         The salary the principal received in the 2016‑17 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.

b.         The longevity that the principal would have received as provided for State employees under the North Carolina Human Resources Act for the 2016‑17 fiscal year based on the principal's current years of service.

(3)        For principals who were not eligible for longevity in the 2016‑17 fiscal year, the salary the principal received in the 2016‑17 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.

ASSISTANT PRINCIPAL SALARIES

SECTION 7A.4.(a)  For the 2024‑25 fiscal year, assistant principals shall receive a monthly salary based on the relevant salary schedule for teachers shown in Section 7A.1(a) who are classified as A teachers plus nineteen percent (19%). An assistant principal shall be placed on the step on the salary schedule that reflects the total number of years of experience as a certified employee of the public schools. For purposes of this section, an administrator with a one‑year provisional assistant principal's certificate shall be considered equivalent to an assistant principal.

SECTION 7A.4.(b)  Assistant principals with certification based on academic preparation at the six‑year degree level shall be paid a salary supplement of one hundred twenty‑six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary supplement of two hundred fifty‑three dollars ($253.00) per month.

SECTION 7A.4.(c)  Participants in an approved full‑time master's in‑school administration program shall receive up to a 10‑month stipend at the beginning salary of an assistant principal during the internship period of the master's program. The stipend shall not exceed the difference between the beginning salary of an assistant principal plus the cost of tuition, fees, and books and any fellowship funds received by the intern as a fulltime student, including awards of the Principal Fellows Program. The Principal Fellows Program or the school of education where the intern participates in a fulltime master's in‑school administration program shall supply the Department of Public Instruction with certification of eligible fulltime interns.

SECTION 7A.4.(d)  Beginning with the 2017‑18 fiscal year, in lieu of providing annual longevity payments to assistant principals on the assistant principal salary schedule, the amounts of those longevity payments are included in the monthly amounts provided to assistant principals pursuant to subsection (a) of this section.

SECTION 7A.4.(e)  An assistant principal compensated in accordance with this section for the 2023‑25 fiscal biennium shall receive an amount equal to the greater of the following:

(1)        The applicable amount determined pursuant to subsections (a) through (d) of this section.

(2)        For assistant principals who were eligible for longevity in the 2016‑17 fiscal year, the sum of the following:

a.         The salary the assistant principal received in the 2016‑17 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.

b.         The longevity that the assistant principal would have received as provided for State employees under the North Carolina Human Resources Act for the 2016‑17 fiscal year based on the assistant principal's current years of service.

(3)        For assistant principals who were not eligible for longevity in the 2016‑17 fiscal year, the salary the assistant principal received in the 2016‑17 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.

CENTRAL OFFICE SALARIES

SECTION 7A.5.(a)  For the 2024‑25 fiscal year, beginning July 1, 2024, the annual salary for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers, whose salaries are supported from State funds, shall be increased by three percent (3%).

SECTION 7A.5.(b)  The monthly salary maximums that follow apply to assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 2024‑25 fiscal year, beginning July 1, 2024:

                                                                           2024‑25 Fiscal Year

                                                                                       Maximum

School Administrator I                                                    $7,800

School Administrator II                                                  $8,265

School Administrator III                                                 $8,757

School Administrator IV                                                 $9,099

School Administrator V                                                  $9,463

School Administrator VI                                                 $10,023

School Administrator VII                                               $10,424

The local board of education shall determine the appropriate category and placement for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or finance officer within the maximums and within funds appropriated by the General Assembly for central office administrators and superintendents. The category in which an employee is placed shall be included in the contract of any employee.

SECTION 7A.5.(c)  The monthly salary maximums that follow apply to public school superintendents for the 2024‑25 fiscal year, beginning July 1, 2024:

                                                                           2024‑25 Fiscal Year

                                                                                       Maximum

Superintendent I                                                              $11,049

Superintendent II                                                             $11,707

Superintendent III                                                           $12,410

Superintendent IV                                                           $13,156

Superintendent V                                                             $13,947

The local board of education shall determine the appropriate category and placement for the superintendent based on the average daily membership of the local school administrative unit and within funds appropriated by the General Assembly for central office administrators and superintendents.

SECTION 7A.5.(d)  Longevity pay for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers shall be as provided for State employees under the North Carolina Human Resources Act.

SECTION 7A.5.(e)  Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided pursuant to this section. Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for under this section.

SECTION 7A.5.(f)  The State Board of Education shall not permit local school administrative units to transfer State funds from other funding categories for salaries for public school central office administrators.

NON‑CERTIFIED PERSONNEL SALARIES

SECTION 7A.6.(a)  For the 2024‑25 fiscal year, beginning July 1, 2024, the annual salary for noncertified public school employees whose salaries are supported from State funds shall be increased as follows:

(1)        For permanent, full‑time employees on a 12‑month contract, by three percent (3%).

(2)        For the following employees, by a prorated and equitable amount based on the amount specified in subdivision (1) of this subsection:

a.         Permanent, full‑time employees on a contract for fewer than 12 months.

b.         Permanent, part‑time employees.

c.         Temporary and permanent hourly employees.

Part VIII. University of North Carolina System

GROWING THE HEALTHCARE WORKFORCE

SECTION 8.1.(a)  Establishment of the Fund. – Of the funds appropriated to the Board of Governors of the University of North Carolina by this act for the 2024‑25 fiscal year, the Board shall use ten million ($10,000,000) to establish the Fund for Growing the Health Care Workforce (Fund). Any unexpended funds remaining in the Fund at the end of the fiscal year shall not revert to the General Fund but shall remain available for the purposes set forth in this section through June 30, 2025. The Fund shall be used to assist independent college and universities who participate in the State Need Based Grant in starting or expanding programs that will grow the health care workforce, including through providing greater facility capacity for trainees; increasing the numbers of health faculty and staff; and providing student support, equipment and lab space.

SECTION 8.1.(b)  Report. – The Board shall submit an initial report to the Joint Legislative Education Oversight Committee by December 1, 2025, and an annual report thereafter for each year the Board provides funds, on the programs receiving the funds, which shall include at least the following information:

(1)        The institutions that received funds, the amount of funds, and the types of programs started.

(2)        The use of funds by each institution receiving awards, including costs associated with student instruction, faculty salaries, instructional supplies, related instructional equipment, and accreditation costs.

(3)        Evaluation of the success of the new programs receiving funds.

COLLEGE ADVISING CORPS

SECTION 8.2.(a)  Purpose of the College Advising Corps Program. – From the funds appropriated by this act for the 2023‑25 fiscal biennium to the Board of Governors of The University of North Carolina for the College Advising Corps program, the Board of Governors shall provide a directed grant to the National College Advising Corps, Inc. (CAC) to support an expansion of the placement of college advisers in North Carolina public schools through their program. CAC is a college access nonprofit organization with the mission to increase the number of underrepresented, low‑income, or first‑generation postsecondary degree or certificate students entering and completing their postsecondary education at community colleges and universities. In furthering this mission, CAC operates an innovative model of partnering with schools, communities, families, and postsecondary institutions, including providing for a two‑year service opportunity to recent college graduates as near‑peer college advisers working fulltime in the public schools, with an emphasis on engaging college advisers who have similar backgrounds to the students the program seeks to serve. Near‑peer college advisers perform various services for those students that are key components to the proven success of the program, including (i) attending postsecondary campus visits, fairs, and workshops with students, (ii) assisting with registering for college entrance exams, (iii) assisting with Free Application for Federal Student Aid (FAFSA) registrations and completions, (iv) identifying available scholarships, (v) assisting with postsecondary applications, and (vi) engaging with families.

SECTION 8.2.(b)  Matching Funds. – Funds made available to CAC pursuant to this section shall be matched by CAC on the basis of two dollars ($2.00) in non‑State funds for every one dollar ($1.00) in State funds. Availability of these matching funds shall not revert, but shall continue to be available for the purposes set forth in this section.

SECTION 8.2.(c)  Use of Funds. – CAC shall focus expansion of its program using the funds provided to it under this section to achieve placement of college advisers in all 100 counties of the State. In addition, CAC shall select at least three additional postsecondary institutions to partner with in order to increase the number of recent graduates working as near‑peer college advisers to meet the needs of the program expansion. Once CAC has reached the goal of placement of college advisers in 100 counties, the funds provided to it for the program shall be used to continue the mission of the program to increase access for North Carolina public school students to postsecondary degree or certificate attainment at community colleges and universities.

SECTION 8.2.(d)  Reporting Requirements. – CAC shall submit a report by June 1 of each year in which CAC spends State funds made available to it pursuant to this section to the Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Office of State Budget and Management on the progress of expanding the placement of college advisers, data on the effectiveness of the program in increasing access for students to postsecondary education, and the use of State funds.

SPORTS BETTING – USE OF PROCEEDS / rEVERSION

SECTION 8.3.(a)  G.S. 116.30.3 reads as rewritten:

§ 116‑30.3.  Reversions.

(a)        Of the General Fund current operations appropriations credit balance remaining at the end of each fiscal year in each of the budget codes listed in this subsection, any amount of the General Fund appropriation for that budget code for that fiscal year (i) may be carried forward to the next fiscal year in that budget code, (ii) is appropriated in that budget code, and (iii) may be used for the purposes set out in subsection (f) of this section. However, the amount carried forward in each budget code under this subsection shall not exceed two and one‑half percent (2.5%) of the General Fund appropriation in that budget code. The Director of the Budget, under the authority set forth in G.S. 143C‑6‑2, shall establish the General Fund current operations credit balance remaining in each budget code.

The budget codes that may carry forward a General Fund current operations appropriations credit balance remaining at the end of each fiscal year pursuant to this section are the budget codes for each of the following:

(1)        Each special responsibility constituent institution.

(2)        The Area Health Education Centers of the University of North Carolina at Chapel Hill.

(3)        University of North Carolina System Office Budget Code 16010.

(b)        Repealed by Session Laws 1998‑212, s. 11(b).

(c)        Repealed by Session Laws 1998‑212, s. 11(a).

(d)       Repealed by Session Laws 1998‑212, s. 11(b).

(e)        Repealed by Session Laws 2014‑100, s. 11.17(a), effective July 1, 2014.

(f)        Funds carried forward pursuant to subsection (a) of this section may be used for one‑time expenditures; provided, however, expenditures authorized by this subsection shall not impose additional financial obligations on the State and shall not be used to support positions.

(g) Funds appropriated pursuant to G.S. 105‑113.128 may be carried forward to the next fiscal year and shall not revert until the end of that fiscal year.

PART VIII‑A. UNIVERSITY/STATE EDUCATION ASSISTANCE AUTHORITY

OPPORTUNITY SCHOLARSHIPS ACCOUNTABILITY

SECTION 8A.1.(a)  G.S. 115C‑562.1 reads as rewritten:

§ 115C‑562.1.  Definitions.

The following definitions apply in this Part:

…

(3a)      Eligible student. – A student residing in North Carolina who has not yet received a high school diploma and who meets all of the following requirements:

a.         Is eligible to attend a North Carolina public school pursuant to Article 25 of this Chapter. A child who is the age of 4 on or before April 16 is eligible to attend the following school year if the principal, or equivalent, of the school in which the child seeks to enroll finds that the student meets the requirements established by the Authority pursuant to G.S. 115C562.2(d) and those findings are submitted to the Authority.

b.         Has not been enrolled in a postsecondary institution as a full‑time student taking at least 12 hours of academic credit.

c.         Has not been placed in a nonpublic school or facility by a public agency at public expense.

d.         Received a scholarship grant during the previous school year.

SECTION 8A.1.(b)  G.S. 115C‑562.2 reads as rewritten:

§ 115C‑562.2.  Scholarship grants.

(a)        The Authority shall make available no later than February 1 annually applications to eligible students for the award of scholarship grants to attend any nonpublic school on a full or part‑time basis. Information about scholarship grants and the application process shall be made available on the Authority's Web site. Beginning March 15, the Authority shall begin awarding scholarship grants to students who have applied by March 1 in the following order:grants.

(1)        Eligible students who received a scholarship grant for the school year prior to the school year for which the students are applying.

(2)        Eligible students qualifying for a scholarship grant in the amount provided under subdivision (1) of subsection (b2) of this section.

(3)        Eligible students qualifying for a scholarship grant in the amount provided under subdivision (2) of subsection (b2) of this section.

(4)        Eligible students qualifying for a scholarship grant in the amount provided under subdivision (3) of subsection (b2) of this section.

(5)        All other students.

(b1)      Repealed by Session Laws 2021‑180, s. 8A.3(e), effective July 1, 2021.

(b2)      Scholarship grants shall be awarded to eligible students as follows:

(1)        For students residing in households with an income level not in excess of the amount required for the student to qualify for the federal free or reducedprice lunch program, per year per eligible student, an amount of up to one hundred percent (100%) of the average State per pupil allocation for average daily membership in the prior fiscal year.

(2)        For students residing in households with an income level between the amount required for the student to qualify for the federal free or reducedprice lunch program and not in excess of two hundred percent (200%) of that amount, per year per eligible student, an amount of up to ninety percent (90%) of the average State per pupil allocation for average daily membership in the prior fiscal year.

(3)        For students residing in households with an income level of between two hundred percent (200%) of the amount required for the student to qualify for the federal free or reducedprice lunch program and not in excess of four hundred fifty percent (450%) of that amount, per year per eligible student, an amount of up to sixty percent (60%) of the average State per pupil allocation for average daily membership in the prior fiscal year.

(4)        For all students, per year per eligible student, an amount of up to fortyfive percent (45%) of the average State per pupil allocation for average daily membership in the prior fiscal year, unless the student qualifies for a higher amount under this subsection.

(b3)      Tuition and fees for a nonpublic school may include tuition and fees for books, transportation, equipment, or other items required by the nonpublic school.

(b4)      No scholarship grant shall exceed, per year per eligible student, an amount equal to one hundred percent (100%) of the average State per pupil allocation for average daily membership in the prior fiscal year, ninety percent (90%) for a full‑time student or forty‑five percent (45%) for a part‑time student of the average State per pupil allocation for average daily membership in the prior fiscal year, and no scholarship grant shall exceed the required tuition and fees for the nonpublic school the eligible student will attend.

(b5)      In addition to the amount of the scholarship grant, for any student receiving a scholarship grant in grades three, eight, or 11, the Authority shall provide to the nonpublic school an amount equal to the cost of the nationally standardized test required to be administered as provided in G.S. 115C562.5.

(b6)      Scholarship grants awarded to eligible students residing in households with an income level not in excess of the amount required for the student to qualify for the federal free or reduced‑price lunch program shall be, per year per eligible student, in an amount of up to ninety percent (90%) as a full‑time student or up to forty‑five percent (45%) as a part‑time student of the average State per pupil allocation for average daily membership in the prior fiscal year, unless this amount exceeds required tuition in fees, in which case the amount shall be the full tuition and fees. Scholarship grants awarded to eligible students residing in households with an income level in excess of the amount required for the student to qualify for the federal free or reduced‑price lunch program for full‑time student shall be for amounts of not more than ninety percent (90%) of the required tuition and fees as a full‑time student or up to ninety‑percent (90%) of the average State per pupil allocation for average daily membership in the prior fiscal year, whichever is lower. For part time students, this shall be up to forty‑five percent (45%) of the required tuition and fees as a part‑time student for the nonpublic school the eligible child will attend or up to forty‑five percent (45%) as a part‑time student of the average State per pupil allocation for average daily membership in the prior fiscal year, whichever is lower.

SECTION 8A.1.(c)  G.S. 115C‑562.8(b) reads as rewritten:

§ 115C562.8. The Opportunity Scholarship Grant Fund Reserve.

(b)        The General Assembly finds that, due to the critical need in this State to provide opportunity for school choice for North Carolina students, it is imperative that the State provide an increase of funds for 15 years funding to the Opportunity Scholarship Grant Fund Reserve. Therefore, there is appropriated from the General Fund to the Reserve the following amounts for each fiscal year to be used for the purposes set forth in this section:

Fiscal Year                                                                            Appropriation

2017‑2018                                                                                   $44,840,000

2018‑2019                                                                                   $54,840,000

2019‑2020                                                                                   $64,840,000

2020‑2021                                                                                   $74,840,000

2021‑2022                                                                                   $84,840,000

2022‑2023                                                                                   $94,840,000

2023‑2024                                                                                 $176,540,000

2024‑2025                                                                                 $191,540,000

2025‑2026                                                           $415,540,000$174,236,499

2026‑2027                                                           $430,540,000$166,919,213

2027‑2028                                                           $445,540,000$158,337,000

2028‑2029                                                           $460,540,000$147,151,195

2029‑2030                                                           $475,540,000$134,275,040

2030‑2031                                                           $490,540,000$119,413,575

2031‑2032                                                           $505,540,000$105,039,929

2032‑2033                                                                                   $89,344,633

2033‑2034                                                                                   $71,034,400

2034‑2035                                                                                   $48,759,219

2035‑2036                                                                                   $24,022,254

For the 2032-20332036‑2037 fiscal year and each fiscal year thereafter, there is appropriated from the General Fund to the Reserve the sum of five hundred twenty million five hundred forty thousandzero dollars ($0)($520,540,000) to be used for the purposes set forth in this section. When developing the base budget, as defined by G.S. 143C‑11, for each fiscal year specified in this subsection, the Director of the Budget shall include the appropriated amount specified in this subsection for that fiscal year.

SECTION 8A.1.(d)  The State Education Assistance Authority shall not award scholarship funds to new recipients pursuant to Part 2A of Article 39 of Subchapter X of Chapter 115C of the General Statutes after the 2023‑2024 academic year.

SECTION 8A.1.(e)  G.S. 115C‑562.2 is amended by adding a new subsection to read:

(c1)    An eligible student awarded a scholarship grant shall participate in administration of examinations required by G.S. 115C‑562.5 to maintain eligibility for receipt of the scholarship grant.

SECTION 8A.1.(f)  G.S. 115C‑562.5 reads as rewritten:

§ 115C‑562.5.  Obligations of nonpublic schools accepting eligible students receiving scholarship grants.

(a) A nonpublic school that accepts eligible students receiving scholarship grants shall comply with the following:

(1)        Provide to the Authority annually documentation for required tuition and fees charged to the student by the nonpublic school. A nonpublic school that accepts eligible students receiving scholarship grants shall not increase tuition each year by more than the Consumer Price Index as calculated by the United States Bureau of Labor Statistics and reported on January 1 of the year in which the school is increasing tuition.

(2)        Provide to the Authority a criminal background check conducted for the staff member with the highest decision‑making authority, as defined by the bylaws, articles of incorporation, or other governing document, to ensure that person has not been convicted of any crime listed in G.S. 115C‑332.

(3)        Provide to the parent or guardian of an eligible student, whose tuition and fees are paid in whole or in part with a scholarship grant, an annual written explanation of the student's progress, including the student's scores on standardized achievement tests.

(4)        Administer, at least once in each school year (or more as required by State or Federal Requirements) the assessments and tests required by the State Board of Education for public schools to comply with federal law according to grade level pursuant to G.S. 115C‑174.11(c)(1)., tests as provided in this subdivision. Student‑level testTest performance data shall be submitted to the Authority by July 15 of each year and retained by the nonpublic school for a five‑year period and shall be subject to audit by the Authority to ensure compliance with this subdivision and for the purpose of the evaluation required by G.S. 115C‑562.7A.year. Test Personally identifiable individual test performance data reported to the Authority or audited or collected for evaluation purposes by the Authority under this subdivision is not a public record under Chapter 132 of the General Statutes. Nothing in this subdivision shall be deemed to prohibit a nonpublic school from administering other standardized tests or tests at other grade levels for its own purposes. Tests shall be administered to all eligible students enrolled in grades three and higher whose tuition and fees are paid in whole or in part with a scholarship grant grant.as follows:

a.         The nationally standardized test designated by the Authority in grades three and eight.

b.         The ACT in grade 11.

c.         A nationally standardized test or other nationally standardized equivalent measurement selected by the chief administrative officer of the nonpublic school in all other grades four and higher. For grades four through seven, the nationally standardized test or other equivalent measurement selected must measure achievement in the areas of English grammar, reading, spelling, and mathematics. For grades nine, 10, and 12, the nationally standardized test or other equivalent measurement selected must measure either (i) achievement in the areas of English grammar, reading, spelling, and mathematics or (ii) competencies in the verbal and quantitative areas.

(4b)      Pursuant to G.S. 115C‑107.6, educate each child with a disability awarded scholarship funds in accordance with that child's Individualized Education Plan (IEP) and in compliance with the Individuals with Disabilities Act (IDEA) and State Board of Education policies.

(5)        Provide to the Authority four‑year cohort graduation rates of the students receiving scholarship grants in a manner consistent with the requirements of Title I, Part A of ESEA and 34 C.F.R. §200.19. nationally recognized standards.

(5b)      Provide to the Authority by August 1 of each year attendance records of students receiving scholarship grants during the previous school year.

(6)        Contract with a certified public accountant to perform a financial reviewaudit, consistent with generally accepted methods of accounting or any other comprehensive basis of accounting recognized by the American Institute of Certified Public Accountants (AICPA) for each school year in which the school enrolls 70 or more students receiving scholarship grants or scholarship funds awarded by the Authority. students who collectively receive more than  one hundred thousand dollars ($100,000) in scholarship grants awarded under this Part. If a nonpublic school accepts students receiving less than one hundred thousand dollars ($100,000) in scholarship grants, the school shall contract with a certified public accountant to perform a financial audit once every three years. The nonpublic school shall submit the audit report to the Authority by December 31 of each year an audit is conducted.

(7)        Maintain a school facility within the State where in‑person instruction is provided. This subdivision does not prohibit a school from offering remote‑only courses of instruction in addition to in‑person instruction.

(8)        Provide the following information annually to the Division:

a.         Name and address of the school, including physical location address. A school with more than one physical location shall establish a separate notice of intent for each physical location and shall provide all information required by this subdivision for each physical location.

b.         The name of the owners and chief administrator, as well as their contact information.

c.         Number of students in attendance at the school as of October 1.

d.         Documentation of a completed fire inspection within the previous 365 days.

(10)      In coordination with local law enforcement agencies, adopt a School Risk Management Plan (SRMP) relating to incidents of school violence as detailed in G.S. 115C‑47 (40). In constructing and maintaining these plans, the school shall utilize the School Risk and Response Management System (SRRMS) established pursuant to G.S. 115C‑105.49A. These plans are not considered a public record as the term public record is defined under G.S. 132‑1.

(11)      Pursuant to G.S. 115C‑105.53, provide schematic diagrams and keys to the main entrance of school facilities to local law enforcement agencies. These diagrams are not considered a public record as the term public record is defined under G.S. 132‑1.

(12)      Pursuant to G.S. 115C‑105.49, at least once a year, hold a full school‑wide lockdown exercise with local law enforcement and emergency management agencies that are part of the qualified nonpublic school's SRMP.

(13)      Provide the following: (i) schematic diagrams, including digital schematic diagrams, and (ii) emergency response information requested by the Department of Public Safety, Division of Emergency Management for the SRMP. These diagrams and emergency response information are not considered a public record as the term public record is defined under G.S. 132‑1.

(b)        A nonpublic school that accepts students receiving scholarship grants shall not require any additional fees based on the status of the student as a scholarship grant recipient. 

(c)        A nonpublic school enrolling more than 25 students in any grade whose tuition and fees are paid in whole or in part with a scholarship grant shall provide and retain information on student test performance in each grade with more than 25 students, as follows:

(1)        Report to the Authority on the aggregate standardized test performance of the individual student standardized test performance of eligible students in grades three, eight, and 11under subsection (4) of this section. Aggregate test performance data reported to the Authority which does not contain personally identifiable student data shall be a public record under Chapter 132 of the General Statutes. The Authority shall make these reports of aggregate student standardized test performance publicly available. Test performance data may be shared with public or private institutions of higher education located in North Carolina and shall be provided to an independent research organization selected by the Authority for research purposes as permitted by the Federal Education Rights and Privacy Act, 20 U.S.C. § 1232g.

(2)        Retain standardized test performance data for eligible students in all other grades and annually certify to the Authority compliance with the requirements of subdivision (4) of subsection (a) of this section.

(c1)      A nonpublic school shall not discriminate with respect to the categories listed in 42 U.S.C. § 2000d, as that statute read on January 1, 2014, and with respect to the definitions of an individual with a disability as defined in the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 as that statute read on January 1, 2024.

SECTION 8A.1.(g)  G.S. 115C‑562.7(b) is amended by adding a new sub‑subsection to read:

(6)      Information on the compliance with the academic assessment requirement pursuant to G.S. 115C‑562.5(a)(4).

SECTION 8A.1.(h)  G.S. 115C‑112.7 is amended by adding a new subsection to read:

(d)            The State Education Assistance Authority, in coordination with the Department of Public Instruction, shall make publicly available by September 30 of each year school achievement, growth, and performance scores and associated performance grades pursuant to G.S. 115C‑83.15 for nonpublic schools that enroll more than more than 25 students whose tuition and fees are paid in whole or in part with a scholarship grant. This section is effective with the 2024‑25 school year. The first school achievement, growth, and performance scores and associated performance grades shall be made publicly available by September 30, 2025.

SECTION 8A.1.(i)  Section 8A.6(i) and Section 8A.6(j) of Session Law 2023‑134 are repealed.

SECTION 8A.1.(j)  Article 41 of Chapter 115C of the General Statutes is amended by adding a new section to read:

§ 115C‑593.5.     Academic Assessments. – A nonpublic school that accepts eligible students receiving scholarship funds shall academically assess students on an annual basis for each school year at the same grade levels as required by the State Board of Education for students in the public schools pursuant to G.S. 115C‑174.11(c)(1). An eligible student awarded scholarship funds who is enrolled in a nonpublic school shall participate in the academic assessments to maintain eligibility for receipt of the scholarship funds.

Assessment data shall be retained by the nonpublic school for a five‑year period and shall be subject to audit by the Authority to ensure compliance with this subsection. Assessment data shall be provided to the parent or guardian of an eligible student, whose tuition and fees are paid in whole or in part with scholarship funds, with an annual written explanation of the student's progress, including the results of the student's academic assessment. If an eligible student received an academic assessment pursuant to G.S. 115C‑112.6 for a school year, the academic assessment may be used to meet the requirements of this subsection. Nothing in this subsection shall be deemed to prohibit a nonpublic school from administering assessments at other grade levels for its own purposes.

SECTION 8A.1.(k) G.S. 115C‑598 is amended by adding a new subdivision to read:

(6) Information on the compliance with the academic assessment requirement

pursuant to G.S. 115C‑593.5.

SECTION 8A.1.(l)  This provision is effective when it becomes law and applies beginning with the 2024‑25 school year.

TEACHING FELLOWS EXPANSION

SECTION 8A.2.(a)  Part 3 of Article 23 of Chapter 116 of the General Statutes reads as rewritten:

Part 3. North Carolina Teaching Fellows Program.

§ 116‑209.60.  Definitions.

The following definitions apply in this Part:

(1)        Commission. – The North Carolina Teaching Fellows Commission.

(2)        Director. – The Director of the North Carolina Teaching Fellows Program.

(3)        Forgivable loan. – A forgivable loan made under the Program.

(4)        Program. – The North Carolina Teaching Fellows Program.

(5)        Public school. – An elementary or secondary school located in North Carolina that is governed by a local board of education, charter school board of directors, regional school board of directors, or University of North Carolina laboratory school board of trustees.

(5a)      Qualifying licensure area. – A teacher licensure area in one of the following subjects:

a.         Either of the following, as identified pursuant to G.S. 116‑209.62(h):

1.         Special education.

2.         STEM.

b.         Elementary education (K‑6).

(5b)      Qualifying teacher. – A teacher in a North Carolina public school who meets the following criteria:

a.         Received a forgivable loan under the Program.

b.         Graduated within 10 years from an educator preparation program leading to teacher licensure, excluding any authorized deferment for extenuating circumstances.

(6)        STEM. – Science, technology, engineering, and mathematics.

(7)        Trust Fund. – The North Carolina Teaching Fellows Program Trust Fund.

…

§ 116‑209.62.  North Carolina Teaching Fellows Program established; administration.

(a)        Program. – There is established the North Carolina Teaching Fellows Program to be administered by the System Office of The University of North Carolina, in conjunction with the Authority and the Commission. The purpose of the Program is to recruit, prepare, and support students residing in or attending institutions of higher education located in North Carolina for preparation as highly effective teachers in qualifying licensure areas in the State's public schools. The Program shall be used to provide a forgivable loan to individuals interested in preparing to teach in the public schools of the State in qualifying licensure areas.State.

(b)        Trust Fund. – There is established the North Carolina Teaching Fellows Program Trust Fund to be administered by the Authority, in conjunction with the System Office of The University of North Carolina. All funds (i) appropriated to, or otherwise received by, the Program for forgivable loans and other Program purposes, (ii) received as repayment of forgivable loans, and (iii) earned as interest on these funds shall be placed in the Trust Fund. The purpose of the Trust Fund is to provide financial assistance to qualified students for completion of teacher education and licensure programs to fill qualifying licensure areas teaching positions in the public schools of the State.

(c)        Uses of Monies in the Trust Fund. – The monies in the Trust Fund may be used only for (i) forgivable loans granted under the Program, (ii) administrative costs associated with the Program, including recruitment and recovery of funds advanced under the Program, (iii) mentoring and coaching support to forgivable loan recipients, and (iv) extracurricular enhancement activities of the Program in accordance with the following:

(1)        The Authority shall transfer the greater of six hundred thousand dollars ($600,000) or ten percent (10%) of the available funds from the Trust Fund to The University of North Carolina System Office at the beginning of each fiscal year for the Program's administrative costs, the salary of the Director of the Program and other Program staff, expenses of the Commission, and to provide the Commission with funds to use for the extracurricular enhancement activities of the Program.

…

(d)       Director of the Program. – The Board of Governors of The University of North Carolina shall appoint a Director of the Program. The Director shall appoint staff to the Commission and shall be responsible for recruitment and coordination of the Program, including proactive, aggressive, and strategic recruitment of potential recipients. The Commission shall make an effort to identify and encourage students of color and students who may not otherwise consider a career in teaching to enter the program. Recruitment activities shall include a broad‑based effort (i) targeting regions of the State with the highest teacher attrition rates and teacher recruitment challenges, challenges and (ii) actively engaging with educators, business leaders, experts in human resources, elected officials, and other community leaders throughout the State, and (iii) attracting candidates in qualifying licensure areas to the Program.State to attract a diverse pool of applicants. The Director shall report to the President of The University of North Carolina. The Authority shall provide office space and clerical support staff, as necessary, to the Director for the Program.

(e)        Student Selection Criteria for Forgivable Loans. – The Commission shall adopt stringent standards for awarding forgivable loans based on multiple measures to ensure that only the strongest applicants receive them, including the following:

(1)        Grade point averages.

(2)        Performance on relevant career and college readiness assessments.

(3)        Experience, accomplishments, and other criteria demonstrating qualities positively correlated with highly effective teachers, including excellent verbal and communication skills.

(4)        Demonstrated commitment to serve in a qualifying licensure area in North Carolina public schools.

(f)        Program Selection Criteria. – The Authority shall administer the Program in cooperation with up to 10 institutionsany institution of higher education with approveda State Board of Education approved educator preparation program. For an educator preparation program enrolling loan recipients in a program of study leading to licensure in elementary education (K 6), provides training that is aligned with the Science of Reading in accordance with G.S. 115C 269.20. The Commission shall contract with a third party entity to biennially evaluate whether a program identified in this subdivision is providing training that is aligned with the Science of Reading.programs selected by the Commission that represent a diverse selection of both postsecondary constituent institutions of The University of North Carolina and private postsecondary institutions operating in the State. The Commission shall adopt stringent standards for selection of the most effective educator preparation programs, including the following:

(1)        Demonstrates high rates of educator effectiveness on value‑added models and teacher evaluations, including using performance‑based, subject‑specific assessment and support systems, such as edTPA or other metrics of evaluating candidate effectiveness that have predictive validity.

(2)        Demonstrates measurable impact of prior graduates on student learning, including impact of graduates teaching in qualifying licensure areas.

(3)        Demonstrates high rates of graduates passing exams required for teacher licensure.

(4)        Provides curricular and co‑curricular enhancements in leadership, facilitates learning for diverse learners, and promotes community engagement, classroom management, and reflection and assessment.

(5)        Requires at least a minor concentration of study in the subject area that the candidate may teach.

(6)        Provides early and frequent internship or practical experiences, including the opportunity for participants to perform practicums in diverse school environments.

(7)        Is approved by the State Board of Education as an educator preparation program.

(8)        For an educator preparation program enrolling loan recipients in a program of study leading to licensure in elementary education (K‑6), provides training that is aligned with the Science of Reading in accordance with G.S. 115C‑269.20. The Commission shall contract with a third‑party entity to biennially evaluate whether a program identified in this subdivision is providing training that is aligned with the Science of Reading.

(g)        Awards of Forgivable Loans. – The Program shall provide forgivable loans to selected students to be used at up up to 10 selected the participating institutions for completion of a program leading to initial teacher licensure as follows:

(1)        North Carolina high school seniors. – Forgivable loans of up to five thousand dollars ($5,000) per semester for up to eight semesters.

(2)        Students applying for transfer to a selected educator preparation program at an institution of higher education. – Forgivable loans of up to five thousand dollars ($5,000) per semester for up to six semesters.

(3)        Individuals currently holding a bachelor's degree seeking preparation for teacher licensure. – Forgivable loans of up to five thousand dollars ($5,000) per semester for up to four semesters.

(4)        Students matriculating at institutions of higher education who are changing to an approved program of study at a selected educator preparation program. – Forgivable loans of up to five thousand dollars ($5,000) per semester for up to four semesters.

Forgivable loans may be used for tuition, fees, the cost of books, and expenses related to obtaining licensure.

(h)        Identification of STEM and Special Education Licensure Areas. – The Superintendent of Public Instruction shall identify and provide to the Commission and the Authority a list of STEM and special education licensure areas and shall annually provide to the Commission the number of available positions in each qualifying licensure area relative to the number of current and anticipated teachers in that area of licensure. The Commission shall make the list of STEM and special education licensure areas readily available to applicants.

…

(j)         Annual Report. – The Commission, in coordination with the Authority, the Department of Public Instruction, and the selected participating educator education programs participating in the Program shall report no later than January 1, 2019, and annually thereafter, to the Joint Legislative Education Oversight Committee regarding the following:

(1)        Forgivable loans awarded from the Trust Fund, including the following:

a.         Demographic information regarding recipients.

b.         Number of recipients by institution of higher education and program.

c.         Information on number of recipients by anticipated qualifying licensure area.

(2)        Placement and repayment rates, including the following:

a.         Number of graduates who have been employed in a qualifying North Carolina public school by licensure area within two years of program completion.

b.         Number of graduates who accepted employment at a low‑performing school identified under G.S. 115C‑105.37 as part of their years of service.

c.         Number of graduates who have elected to do loan repayment and their years of service, if any, prior to beginning loan repayment.

d.         Number of graduates employed in a qualifying North Carolina public school by licensure area who have received an overall rating of at least accomplished and have met expected growth on applicable standards of the teacher evaluation instrument.

e.         Aggregate information on student growth and proficiency in courses taught by graduates who have fulfilled service requirements through employment in a qualifying licensure area.requirements.

PART IX‑A. AGING AND ADULT SERVICES [RESERVED]

PART IX‑B. CENTRAL MANAGEMENT AND SUPPORT  

REPLACEMENT FOR CRITICAL IT SYSTEMS THAT SUPPORT SUBSTANCE USE DISORDER PREVENTION AND TREATMENT

SECTION 9B.1.  The Department of Health and Human Services shall develop and implement a replacement for outdated data systems supporting substance use prevention and treatment goals, specifically concerning the Driving While Impaired Services (DWI), the Drug Education School (DES), and the Drug Control Unit (DCU) programs designed to prevent progression of misuse of substances through education and regulatory supports. The project shall not proceed until the business case has been approved by the Office of State Budget and Management and the State Chief Information Officer in the Enterprise Project Management Office's Touchdown System. Upon approval, Mixed Use Beverage tax receipts available in Budget Code 14460, Budget Fund 134603, may be budgeted for transfer to Budget Code 24410 for information technology projects in an amount not to exceed two million dollars ($2,000,000). Following project completion, the Division of Mental Health may use Mixed Use Beverage Tax receipts to cover operations and maintenance costs for the new IT system.

PART IX‑C. CHILD AND FAMILY WELL‑BEING [Reserved]

PART IX‑D. CHILD DEVELOPMENT AND EARLY EDUCATION  

CHILD CARE STABILIZATION GRANTS

SECTION 9D.1.  The Division of Child Development and Early Education shall reinstate Child Care Stabilization Grants for compensation to prevent child care closures and encourage program capacity growth and maintain the critical compensation support for a qualified workforce.

CHILD CARE SUBSIDY RATE FLOOR

SECTION 9D.2.(a) Section 9D.3(c) of S.L. 2023‑134 reads as rewritten:

CHILD CARE SUBSIDY RATES

…

SECTION 9D.3.(c)  Payments for the purchase of child care services for low‑income children shall be in accordance with the following requirements:

(1)            Religious sponsored child care facilities operating pursuant to G.S. 110‑106 and licensed child care centers and homes that meet the minimum licensing standards that are participating in the subsidized child care program shall be paid the one‑star county market rate or the rate they charge privately paying parents unless prohibited by subsection (f) of this section.

(2)            Licensed child care centers and homes with two or more stars shall receive the market rate for that rated license level for that age group or the statewide floor rate, whichever is higher, unless prohibited by subsection (g) of this section.

(3)            No payments shall be made for transportation services charged by child care facilities.

(4)            Payments for subsidized child care services for postsecondary education shall be limited to a maximum of 20 months of enrollment. This shall not be determined before a family's annual recertification period.

(5)            The Department of Health and Human Services shall implement necessary rule changes to restructure services, including, but not limited to, targeting benefits to employment.

(6)            Certified Developmental Day Centers shall receive the statewide average or county market rate, whichever is higher, plus a multiplier of 0.75 for children with special needs and multiplier of 0.5 for typically developing children.

….

GRANTS FOR CHILD CARE FACILITIES AND NC PRE‑K CLASSROOMS

SECTION 9D.3.(a)  Of the funds appropriated in this act to the Department of Health and Human Services, Division of Child Development and Early Education (Division), the sum of fifty million dollars ($50,000,000) in nonrecurring funds shall be used to provide grants for child care facilities and North Carolina prekindergarten (NC Pre‑K) classrooms, particularly those located in areas with limited access to child care, and low‑performing and high‑poverty districts. The Division may administer the program or subcontract administration using up to one percent (1%) of the funds for administration and shall award grants under this section pursuant to criteria established by the Division in accordance with federal law and guidance.

SECTION 9D.3.(b)  These grants shall be one‑time awards to assist with new or expanded high‑quality child care initiatives as follows:

(1)            Start‑up costs associated with establishing a new NC Pre‑K classroom or child care facility.

(2)            Quality improvements for existing NC Pre‑K classrooms or child care facilities that increase the classroom or facility's capacity or upgrade its star rating.

(3)            Capital improvements or renovations, including adding or upgrading outdoor play and learning environments, or increasing a facility's total capacity.

SECTION 9D.3.(c)  Of the funds appropriated in this act to the Division of Child Development and Early Education for NC Pre‑K and Child Care Enhancement Grants, the Division shall use up to one hundred thousand dollars ($100,000) to evaluate the effectiveness of the NC Pre‑K and Child Care Enhancement Grants and up to one hundred thousand dollars ($100,000) to evaluate the effectiveness of the Child Care Stabilization Grants funded in this act. The Division may choose to contract a third party to conduct one or both of these evaluations. The Division may consult with the Office of State Budget and Management (OSBM) for assistance on how to develop an evaluation, including how to register and use a pre‑analysis plan. The Division shall report annually to OSBM and the Fiscal Research Division of the General Assembly on the progress of the evaluation and, when completed, make publicly available the pre‑analysis plan, the final evaluation report, and (to the extent possible) an anonymized version of the dataset(s) that is sufficient for others to replicate the reported analytics.

EARLY EDUCATION PROVIDER GRANT PILOT PROGRAM

SECTION 9D.4.(a)  Of the funds appropriated in this act to the Department of Health and Human Services, Division of Child Development and Early Education, the sum of twenty‑five million dollars ($25,000,000) in nonrecurring funds for fiscal year 2024‑25 shall be used to provide funding for the Early Education Provider Grant Pilot program established by this section. Funds provided under this section shall be distributed to provide free or reduced cost, quality child care for employees working at child care centers or providing home‑based care, regardless of their qualification status for the state's Child Care Subsidy program. Upon completion of the pilot program, any unexpended funds shall revert to the General Fund.

SECTION 9D.4.(b)  There is established the Early Education Provider Grant Pilot Program, a program that:

(1)            Helps child care teachers continue working by helping them access affordable, quality care for their own children.

(2)            Helps child care employers retain and attract qualified employees.

(3)            Help stabilize child care businesses across the State.

SECTION 9D.4.(c)  The Division shall set eligibility, application, award, and fund distribution standards for the program. At a minimum, child care teachers and employees receiving this benefit must work at programs currently achieving a three star rating or higher. Awards shall be provided at the local subsidized child care rate.

SECTION 9D.4.(d)  Of the funds appropriated in this act to the Division for the Early Education Provider Grant Pilot Program, the Division may use up to three percent (3%) for administrative costs.

SECTION 9D.4.(e)  Of the funds appropriated in this act to the Division of Child Development and Early Education for the Early Education Provider Grant Pilot Program, the Division shall use up to one hundred thousand dollars ($100,000) to conduct an evaluation of the program or contract a third party to evaluate the program. Within six months after completion of the pilot program, the Division shall submit the evaluation to the Joint Legislative Oversight Committee on Health and Human Services, the Office of State Budget and Management, and the Fiscal Research Division. The evaluation shall include, at a minimum, each of the following:

(1)         The number of teachers served, by county.

(2)         Total pilot program costs, including any administrative costs.

(3)         How many participants were hired or retained in teacher roles because of grant.

(4)         How many participating teachers already met the requirements to qualify for the Child Care Subsidy program in North Carolina and were already participating or were not participating, and why.

(5)         Any other relevant information deemed appropriate.

TRI‑SHARE CHILD CARE PILOT PROGRAM EXPANSION

SECTION 9D.5  Section 9D.9 of S.L. 2023‑134 reads as rewritten:

TRI‑SHARE CHILD CARE PILOT PROGRAM

SECTION 9D.9.(a)  Of the funds appropriated in this act to the Department of Health and Human Services, Division of Child Development and Early Education, to be allocated to the North Carolina Partnership for Children, Inc., the sum of nine hundred thousand dollarsone million three hundred thousand dollars ($900,000)($1,300,000.00) in nonrecurring funds for each year of the 20234‑2025 fiscal bienniumfiscal year shall be used to provide the State portion of funding for the Tri‑Share Child Care pilot program established by this section. Funds provided under this section shall be divided evenly in each fiscal year among the regional facilitator hubs, as described in subsection (c) of this section, selected to participate in the pilot program. Upon completion of the pilot program, any unexpended funds shall revert to the General Fund.

SECTION 9D.9.(b)  The Division of Child Development and Early Education (Division), in collaboration with the North Carolina Partnership for Children, Inc. (NCPC), shall establish a two‑year pilot program to implement the Tri‑Share Child Care program, a program that creates a public/private partnership to share the cost of child care equally between employers, eligible employees, and the State to:

(1)            Make high‑quality child care affordable and accessible for working families.

(2)            Help employers retain and attract employees.

(3)            Help stabilize child care businesses across the State.

SECTION 9D.9.(c)  The Division and NCPC shall select up to fourthree local partnerships to serve as regional facilitator hubs to implement and administer the pilot program and act as regional intermediaries between employers, families, child care providers, and the State. The Division and NCPC shall select local partnerships to participate in the pilot program from geographically diverse areas across the State, with one selected from a tier one county and one selected from a tier three county. For purposes of this section, a tier one and tier three county shall have the same designation as that established by the North Carolina Department of Commerce's 2023 County Tier Designations.

SECTION 9D.9.(d)  The local partnerships selected to serve as regional facilitator hubs shall establish and determine program eligibility. For purposes of this pilot program, an employee is eligible to participate in the program if the employee (i) is employed by a Page 222 Session Law 2023‑134 House Bill 259 participating employer, (ii) has a household income between one hundred eighty‑five percent (185%) and three hundred percent (300%) of the federal poverty level, and (iii) is not otherwise eligible for subsidized child care in this State. An eligible employee may reside outside of the designated region for the respective facilitator hub. Additionally, the regional facilitator hubs shall develop and implement other criteria for the child care program, including, but not limited to, each of the following:

(1)            Ensuring payment for the cost of child care is divided equally between an employer, an eligible employee, and the State.

(2)            Soliciting participating employers.

(3)            Ensuring participating employers agree to (i) identify and recruit eligible employees, (ii) provide the employer portion of each participating employee's child care costs, and (iii) maintain communication with the regional facilitator hub regarding each eligible employee's continued employment and eligibility.

(4)            Verifying that child care providers seeking to participate in the program are licensed in this State.

(5)            Upon determining an employee's eligibility, ensuring payment by the employee of the employee's portion of the cost of child care.

(6)            Coordinating payments between employers and licensed child care providers.

SECTION 9D.9.(e)  For purposes of this section, child care includes part‑time and

full‑time care, before and after school care, and summer day camps.

SECTION 9D.9.(f)  A regional facilitator hub may use up to nine percent (9%) of its allocation for administrative costs.

SECTION 9D.9.(g)  Of the funds appropriated in this act to the Division of Child Development and Early Education for the Tri‑Share Child Care Pilot Program Expansion, the Division shall use up to one hundred thousand dollars ($100,000) to conduct an evaluation of the program or contract a third party to evaluate the program. Within six months after completion of the pilot program, the Division shall submit a reportthe evaluation to the Joint Legislative Oversight Committee on Health and Human Services, the Office of State Budget and Management, and the Fiscal Research Division. The report evaluation shall include, at a minimum, each of the following:

(1)            The number of children served, by age and county.

(2)            Total pilot program costs, including any administrative costs.

(3)            The amount of funds needed to expand the program statewide.

(4)            The list of employers participating in the pilot program.

(5)            Any other relevant information deemed appropriate.

(6)      Statistics that describe the uptake and use of the program, such as the  number of applications received, amount of funds requested, number of applications approved, total amount of funds awarded, and the types of child care used by students with pilot funds.

(7)      An estimate of the number of families who would not otherwise access child care services but do so as a result of this program.

(8)      An assessment of obstacles to receiving these funds or participating in the program by families and businesses.

(9)        Recommendations on whether to continue the program and, if so, what program improvements might be made.

PART IX‑E. HEALTH BENEFITS

ACCOUNTING FOR MEDICAID RECEIVABLES AS NONTAX REVENUE

SECTION 9E.1.  Section 9E.5(b) of S.L. 2023‑134 reads as rewritten:

SECTION 9E.5.(b)  For the 2023‑2024 fiscal year, the Department of Health and Human Services shall deposit from its revenues one hundred sixty‑four million five hundred thousand dollars ($164,500,000) with the Department of State Treasurer to be accounted for as nontax revenue. For the 20242025 fiscal year, the Department of Health and Human Services shall deposit from its revenues eighty eight million four hundred thousand dollars ($88,400,000) one hundred fifty‑nine million five hundred thousand ($159,500,000) with the Department of State Treasurer to be accounted for as nontax revenue. These deposits shall represent the return of advanced General Fund appropriations, nonfederal revenue, fund balances, or other resources from State owned and State operated hospitals that are used to provide indigent and nonindigent care services. The return from State owned and State operated hospitals to the Department of Health and Human Services shall be made from nonfederal resources in the following manner:

(1)        The University of North Carolina Hospitals at Chapel Hill shall make the following deposits:

a.         For the 2023‑2024 fiscal year, the amount of thirty‑one million three hundred sixty five thousand three hundred five dollars ($31,365,305).

b.         For the 2024‑2025 fiscal year, the amount of thirty‑one million three hundred sixty five thousand three hundred five dollars ($31,365,305).

(2)        All State owned and State operated hospitals, other than the University of North Carolina Hospitals at Chapel Hill, that specialize in psychiatric care shall annually deposit an amount equal to the amount of the payments from DHB for uncompensated care.

part ix‑f. Health services regulation

RADIATION PROTECTION SECTION X‑RAY FEE CAPS

SECTION 9F.1. G.S. 104E‑19. reads as rewritten:

§104E‑19. Fees.

(a)        An annual fee in the amount set by the Department is imposed on a person who is required to be registered or licensed under this Chapter. The Department must set the fees at amounts that provide revenue to offset its costs in performing its duties under this Chapter.

(b)        Repealed by Session Laws 1987, c. 850, s. 13.

(c)        The annual fees under subsection (a) of this section shall not exceed the maximum amounts as follows:

(1)        For tanning facilities: two hundred dollars ($200.00) for the first piece of tanning equipment and thirty dollars ($30.00) for each additional piece of tanning equipment.

(2)        For the following categories of facilities registered to use X‑ray tubes or X‑ray equipment: clinics, chiropractors, dentists, educational, government, podiatrists, industrial, physicians, veterinarians, and other; twofour hundred dollars ($200.00 ($400)for the first X‑ray tube or piece of X‑ray equipment and  thirtysixty dollars ($30.00) ($60.00) for each additional X‑ray tube or piece of X‑ray equipment.

(3)        For the following categories of facilities registered to use X‑ray tubes or X‑ray equipment: industrial medical, health departments, and service; threesix hundred dollars ($300.00)($600.00) for the first X‑ray tube or piece of X‑ray equipment and forty dollars ($40.00)($80.00) for each additional X‑ray tube or piece of X‑ray equipment.

(4)        For the following categories of facilities registered to use X‑ray tubes or X‑ray equipment: hospitals and industrial radiography; foureight hundred dollars ($400.00)($800.00) for the first X‑ray tube or piece of X‑ray equipment and fiftyone hundred dollars ($50.00)($100.00) for each additional X‑ray tube or piece of X‑ray equipment. (1975, c. 718, s. 1; 1981, c. 704, s. 13; 1987, c. 633, s. 9; c. 850, s. 13; 1987 (Reg. Sess., 1988), c. 993, s. 26; 2001474, s. 5; 2009451, s. 13.3(a).)

(d)       The Division shall increase the X‑ray fees to align with G.S. 104E.19 subsection (c) according to the following schedule; X‑ray fees shall increase at 1.2 times the FY 2023‑24 rates beginning in FY 2025‑26; 1.4 times the FY 2023‑24 rates beginning in FY 2027‑28; 1.6 times the FY 2023‑24 rates in FY 2029‑30; 1.8 times the FY 2023‑24 rates beginning in FY 2031‑32; and 2.0 times the FY 2023‑24 rates in FY 2033‑34.

PART IX‑G. MENTAL HEALTH/DEVELOPMENTAL DISABILITIES/SUBSTANCE ABUSE SERVICES [RESERVED]

part ix‑h. Division of public health

LOCAL HEALTH DEPARTMENTS/COMPETITIVE GRANT PROCESS TO IMPROVE MATERNAL AND CHILD HEALTH

SECTION 9H.1 SECTION 9H.1.(b) of S.L. 2023‑134 reads as rewritten:

SECTION 9H.1.(b)  The plan for administering the competitive grant process shall include at least all of the following components:

(1)            A request for application (RFA) process to allow local health departments to apply for and receive State funds on a competitive basis. The Department shall require local health departments to include in the application a plan to evaluate the effectiveness, including measurable impact or outcomes, of the activities, services, and programs for which the funds are being requested.

(2)            A requirement that the Secretary prioritize grant awards to those local health departments that are able to leverage nonState funds in addition to the grant award.

(3)            Ensures that funds received by the Department to implement the plan supplement and do not supplant existing funds for maternal and child health initiatives.

(4)            Allows grants to be awarded to local health departments for up to two three years.

Local medical examiner investigations fee increase

SECTION 9H.2.  G.S. 130A‑387.  reads as rewritten:

§ 130A‑387. Fees.

For each investigation and prompt filing of the required report, the medical examiner shall receive a fee paid by the State. However, if the deceased is a resident of the county in which the death or fatal injury occurred, that county shall pay the fee. The fee shall be two hundred dollars ($200.00) four hundred dollars ($400.00). (1983, c. 891, s. 2; 1991, c. 463, s. 1; 2005‑368, s. 1; 2015‑241, s. 12E.6(a).)

PART IX‑I. SERVICES FOR THE BLIND/DEAF/HARD OF HEARING [RESERVED]

PART IX‑J. SOCIAL SERVICES [RESERVED]

PART IX‑K. DIVISION OF EMPLOYMENT AND INDEPDENCE FOR PEOPLE WITH DISABILITIES [RESERVED]

PART IX‑L. DHHS Block Grants

DHHS BLOCK GRANTS

SECTION 9L.1.(a) Except as otherwise provided, appropriations from federal Block Grant funds are made for each year of the fiscal biennium ending June 30, 2025, according to the following schedule:

TEMPORARY ASSISTANCE FOR NEEDY         FY 2023‑24                      FY 2024‑25

FAMILIES (TANF) FUNDS

Local Program Expenditures

Division of Social Services

      01. Work First Family Assistance                             $31,328,255                        $31,259,794
                                                                                                                                     $37,762,726

      02. Work First County Block Grants                          80,093,566                           80,093,566

      03. Work First Electing Counties                                2,378,213                              2,378,213

      04. Adoption Services – Special Children

            Adoption Fund                                                       4,001,676                              4,001,676

      05. Child Protective Services – Child Welfare

            Workers for Local DSS                                      11,387,190                             11,387,190

      06. Child Welfare Program Improvement Plan            775,176                                   775,176

      07. Child Welfare Collaborative                                  400,000                                   400,000

      08. Child Welfare Initiatives                                     1,400,000                                1,400,000

Division of Child Development and Early Education

      09. Subsidized Child Care Program                        45,813,694                              45,813,694

      10. Swap‑Child Care Subsidy‑                                12,600,000                              12,600,000

      11. NC PreK Services‑                                            68,300,000                              68,300,000

Division of Public Health

      12. Teen Pregnancy Prevention Initiatives             3,538,541                                   3,538,541

DHHS Administration

      13. Division of Social Services                               2,478,284                                  2,478,284

      14. Division of Child and Family Well‑Being               3,976                                          3,976

      15. Office of the Secretary                                           34,042                                        34,042

      16. Eligibility Systems – Operations and

            Maintenance                                                          431,733                                    431,733

      17. NC FAST Implementation                                   428,239                                     428,239

      18. Division of Social Services – Workforce

            Innovation & Opportunity Act (WIOA)                93,216                                      93,216

      19. Division of Social Services TANF Modernization            1,667,571                  1,667,571

Transfers to Other Block Grants

Division of Child Development and Early Education

      20. Transfer to the Child Care and

            Development Fund                                                           21,773,001 21,773,001

Division of Social Services

      21. Transfer to Social Services Block

            Grant for Child Protective Services –

            Training                                                                                 285,612                    285,612

      22. Transfer to Social Services Block

            Grant for Child Protective Services                                   5,040,000                   5,040,000

      23. Transfer to Social Services Block

            Grant for County Departments of

            Social Services for Children's Services                           13,097,783                 13,166,244

      24. Transfer to Social Services Block

            Grant – Foster Care Services                                            3,422,219                    3,422,219

      25. Transfer to Social Services Block                                    1,582,000                   1,582,000

            Grant – Child Advocacy Centers

TOTAL TEMPORARY ASSISTANCE FOR

NEEDY FAMILIES (TANF) FUNDS                                $312,353,987             $312,353,987
                                                                                                                                   $318,856,919

TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)