AN ACT to provide for a pilot program to develop a new school performance grade metric and method.

The General Assembly of North Carolina enacts:

SECTION 1.  Program Established; Purpose. – There is established the School Performance Grade Update Pilot Program (Program) for the 2024‑2025 school year and 2025‑2026 school year. The Program shall be composed of a small group of public school units in the 2024‑2025 school year and expanded to all public school units in the 2025‑2026 school year. The purpose of the Program is to improve the school performance grade process to provide more transparent information about the schools of the State to parents, students, and administrators. Any data or information collected for the Program shall not replace requirements pursuant to Part 1B of Article 7B of Chapter 115C of the General Statutes. School performance grades will continue to be issued pursuant to G.S. 115C‑83.15.

SECTION 2.(a)  School Performance Grade Criteria. – The Department of Public Instruction shall develop criteria to be used for school performance grades to be used in the Program. The criteria shall be made available to public school units within 30 days of this act becoming law.

SECTION 2.(b)  Application for Program. – The Department shall make an application for participation in the first year of the Program available to all public school units no later than 30 days after this act becomes law. Public school units interested in participating in the Program shall submit their applications no later than 30 days after the application becomes available. The Department shall select one charter school and one local school administrative unit to participate in the Program from each State Board of Education region, balancing demographics and funded average daily membership of the public school units to attempt to represent the diversity of the State. Every school in a public school unit selected for the Program for the 2024‑2025 school year shall participate in the Program.

SECTION 2.(c)  Public School Unit Reporting. – Each public school unit participating in the Program shall report to the Department on the criteria developed pursuant to subsection (a) of this section by the deadline established by the Department.

SECTION 2.(d)  Department Reporting. – The Department shall report to the Joint Legislative Oversight Committee by November 1, 2025, on the outcomes of the first year of the Program. A copy of the report shall be distributed to all local superintendents and principals in public school units participating in the Program. The report shall include at least the following:

(1)        Any difficulties in collected data or information required by the Program.

(2)        Any recommended changes to the Program.

(3)        Any other information the Department deems relevant to the performance of the Program.

(4)        Any other information requested by the committee.

SECTION 3.(a)  Statewide Expansion of the Program. – Beginning with the 2025‑2026 school year, the Program shall be expanded to all public school units in the State. All public school units shall provide the information required by the Program.

SECTION 3.(b)  Public School Unit Reporting. – Each public school unit, as part of the Program, shall report to the Department on the criteria developed pursuant to subsection (a) of Section 2 of this act by the deadline established by the Department.

SECTION 3.(c)  Final Department Reporting. – The Department shall submit a final report to the Joint Legislative Oversight Committee by November 1, 2026, on the outcomes of the Program. A copy of the report shall be distributed to local superintendents and principals in all public school units. The report shall include at least the following:

(1)        Any continued difficulties in collected data or information required by the Program.

(2)        Any recommended changes to the criteria developed by the Program.

(3)        Any other information the Department deems relevant to the performance of the Program.

(4)        The model and scale that the Department would use to assign school performance grades from the criteria developed for the Program.

(4)        Any recommended legislation for implementing the Program permanently to replace the existing school performance grade system.

(5)        Any other information requested by the committee.

SECTION 4.  Intention of General Assembly. – It is the intention of the General Assembly that after any statutory changes made pursuant to Section 3 of this act, a single summative school performance grade be issued with fifty percent (50%) of the weighted score being determined by student performance, thirty percent (30%) of the weighted score being determined by student growth, and the remaining twenty percent (20%) of the weighted score being determined by two criteria decided by the Department as a result of the Program.

SECTION 5.  Appropriation. – There is appropriated from the General Fund to the Department of Public Instruction the sum of one hundred fifty thousand dollars ($150,000) in nonrecurring funds for the implementation of this program.

SECTION 6.  This act is effective when it becomes law.