H317: Adjustments to the 2023 Appropriations Act. Latest Version

Session: 2023 - 2024

House
Passed 1st Reading
Committee
Rules
Senate
Passed 1st Reading
Rules
Committee
Passed 3rd Reading


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 the 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 Appropriations from the General Fund for the 2024‑2025 fiscal year set out in Section 2.1(a) of S.L. 2023‑134 are repealed.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



Community College System



      Requirements                                                                                                      2,012,282,275



      Less: Receipts                                                                                                        408,948,277



      Net Appropriation                                                                                            1,603,333,998



 



Public Instruction



      Requirements                                                                                                    13,768,490,327



      Less: Receipts                                                                                                     1,750,698,621



      Net Appropriation                                                                                          12,017,791,706



 



University of North Carolina



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                                                                                                           56,271,874



      Less: Receipts                                                                                                                          0



      Net Appropriation                                                                                                 56,271,874



 



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                                                                                                             1,209,300



      Less: Receipts                                                                                                                          0



      Net Appropriation                                                                                                   1,209,300



 



UNC BOG – Institutional Programs



      Requirements                                                                                                         456,056,182



      Less: Receipts                                                                                                          51,750,000



      Net Appropriation                                                                                               404,306,182



 



UNC BOG – Related Ed. Programs



      Requirements                                                                                                      1,299,265,818



      Less: Receipts                                                                                                        415,855,939



      Net Appropriation                                                                                               883,409,879



 



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



 



Appalachian State University



      Requirements                                                                                                         313,413,598



      Less: Receipts                                                                                                        124,504,786



      Net Appropriation                                                                                               188,908,812



 



East Carolina Univ. – Academic Affairs



      Requirements                                                                                                         432,957,458



      Less: Receipts                                                                                                        168,350,410



      Net Appropriation                                                                                               264,607,048



 



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



 



HEALTH AND HUMAN SERVICES



Aging and Adult Services



      Requirements                                                                                                         163,989,332



      Less: Receipts                                                                                                        110,359,697



      Net Appropriation                                                                                                 53,629,635



 



Central Management and Support



      Requirements                                                                                                         516,342,065



      Less: Receipts                                                                                                        290,358,595



      Net Appropriation                                                                                               225,983,470



 



Child and Family Well‑Being



      Requirements                                                                                                         598,865,804



      Less: Receipts                                                                                                        538,307,550



      Net Appropriation                                                                                                 60,558,254



 



Child Development and Early Education



      Requirements                                                                                                      1,072,845,753



      Less: Receipts                                                                                                        775,447,461



      Net Appropriation                                                                                               297,398,292



 



Emp. & Indep. for People with Disabilities



      Requirements                                                                                                         184,426,242



      Less: Receipts                                                                                                        140,253,360



      Net Appropriation                                                                                                 44,172,882



 



Health Benefits



      Requirements                                                                                                    32,723,853,613



      Less: Receipts                                                                                                   26,776,717,664



      Net Appropriation                                                                                            5,947,135,949



 



Health Services Regulation



      Requirements                                                                                                           82,341,123



      Less: Receipts                                                                                                          56,649,546



      Net Appropriation                                                                                                 25,691,577



 



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



      Requirements                                                                                                      1,952,695,867



      Less: Receipts                                                                                                     1,099,049,960



      Net Appropriation                                                                                               853,645,907



 



Public Health



      Requirements                                                                                                         501,066,054



      Less: Receipts                                                                                                        362,850,527



      Net Appropriation                                                                                               138,215,527



 



Services for the Blind/Deaf/Hard of Hearing



      Requirements                                                                                                           45,470,847



      Less: Receipts                                                                                                          35,981,255



      Net Appropriation                                                                                                   9,489,592



 



Social Services



      Requirements                                                                                                      2,241,469,520



      Less: Receipts                                                                                                     2,002,527,259



      Net Appropriation                                                                                               238,942,261



 



AGRICULTURE, NATURAL, AND ECONOMIC RESOURCES



Agriculture and Consumer Services



      Requirements                                                                                                         274,102,971



      Less: Receipts                                                                                                          91,858,909



      Net Appropriation                                                                                               182,244,062



 



Commerce



      Requirements                                                                                                         697,897,732



      Less: Receipts                                                                                                        494,293,455



      Net Appropriation                                                                                               203,604,277



 



Environmental Quality



      Requirements                                                                                                      1,099,399,902



      Less: Receipts                                                                                                        189,844,998



      Net Appropriation                                                                                               909,554,904



 



Labor



      Requirements                                                                                                           44,468,963



      Less: Receipts                                                                                                          18,112,941



      Net Appropriation                                                                                                 26,356,022



 



Natural and Cultural Resources



      Requirements                                                                                                         336,533,868



      Less: Receipts                                                                                                          54,842,950



      Net Appropriation                                                                                               281,690,918



 



Wildlife Resources Commission



      Requirements                                                                                                           98,586,402



      Less: Receipts                                                                                                          81,855,762



      Net Appropriation                                                                                                 16,730,640



 



JUSTICE AND PUBLIC SAFETY



Administrative Office of the Courts



      Requirements                                                                                                         785,174,686



      Less: Receipts                                                                                                            6,210,166



      Net Appropriation                                                                                               778,964,520



 



Correction



      Requirements                                                                                                      2,070,615,156



      Less: Receipts                                                                                                          24,612,230



      Net Appropriation                                                                                            2,046,002,926



 



Indigent Defense Services



      Requirements                                                                                                         182,653,198



      Less: Receipts                                                                                                          13,962,679



      Net Appropriation                                                                                               168,690,519



 



Justice



      Requirements                                                                                                         112,115,754



      Less: Receipts                                                                                                          45,147,562



      Net Appropriation                                                                                                 66,968,192



 



Public Safety



      Requirements                                                                                                         875,624,571



      Less: Receipts                                                                                                        226,707,297



      Net Appropriation                                                                                               648,917,274



 



State Bureau of Investigation



      Requirements                                                                                                           71,017,565



      Less: Receipts                                                                                                          21,057,226



      Net Appropriation                                                                                                 49,960,339



 



GENERAL GOVERNMENT



Administration



      Requirements                                                                                                           80,145,616



      Less: Receipts                                                                                                          12,636,055



      Net Appropriation                                                                                                 67,509,561



 



Administrative Hearings



      Requirements                                                                                                             9,449,343



      Less: Receipts                                                                                                            1,216,625



      Net Appropriation                                                                                                   8,232,718



 



Auditor



      Requirements                                                                                                           26,171,092



      Less: Receipts                                                                                                            6,899,163



      Net Appropriation                                                                                                 19,271,929



 



Budget and Management



      Requirements                                                                                                           12,567,620



      Less: Receipts                                                                                                            1,036,517



      Net Appropriation                                                                                                 11,531,103



 



Budget and Management – Special Approp.



      Requirements                                                                                                           57,275,000



      Less: Receipts                                                                                                          46,725,000



      Net Appropriation                                                                                                 10,550,000



 



Controller



      Requirements                                                                                                           36,837,536



      Less: Receipts                                                                                                               875,957



      Net Appropriation                                                                                                 35,961,579



 



Elections



      Requirements                                                                                                             9,861,207



      Less: Receipts                                                                                                               102,000



      Net Appropriation                                                                                                   9,759,207



 



General Assembly



      Requirements                                                                                                         100,189,540



      Less: Receipts                                                                                                               561,000



      Net Appropriation                                                                                                 99,628,540



 



Governor



      Requirements                                                                                                             7,771,765



      Less: Receipts                                                                                                            1,000,730



      Net Appropriation                                                                                                   6,771,035



 



Housing Finance Authority



      Requirements                                                                                                         114,254,433



      Less: Receipts                                                                                                        103,594,433



      Net Appropriation                                                                                                 10,660,000



 



Human Resources



      Requirements                                                                                                           11,252,211



      Less: Receipts                                                                                                               100,888



      Net Appropriation                                                                                                 11,151,323



 



Industrial Commission



      Requirements                                                                                                           24,516,649



      Less: Receipts                                                                                                          20,739,136



      Net Appropriation                                                                                                   3,777,513



 



Insurance



      Requirements                                                                                                           63,278,398



      Less: Receipts                                                                                                            5,140,347



      Net Appropriation                                                                                                 58,138,051



 



Lieutenant Governor



      Requirements                                                                                                             1,343,471



      Less: Receipts                                                                                                                          0



      Net Appropriation                                                                                                   1,343,471



 



Military and Veterans Affairs



      Requirements                                                                                                           11,642,217



      Less: Receipts                                                                                                                          0



      Net Appropriation                                                                                                 11,642,217



 



Revenue



      Requirements                                                                                                         189,810,136



      Less: Receipts                                                                                                          68,697,348



      Net Appropriation                                                                                               121,112,788



 



Secretary of State



      Requirements                                                                                                           19,574,159



      Less: Receipts                                                                                                               330,036



      Net Appropriation                                                                                                 19,244,123



 



Treasurer



      Requirements                                                                                                           74,099,682



      Less: Receipts                                                                                                          73,890,608



      Net Appropriation                                                                                                      209,074



 



Treasurer – Other Retirement Plans/Benefits



      Requirements                                                                                                           24,044,657



      Less: Receipts                                                                                                                          0



      Net Appropriation                                                                                                 24,044,657



 



INFORMATION TECHNOLOGY



Information Technology



      Requirements                                                                                                         110,450,423



      Less: Receipts                                                                                                          31,479,233



      Net Appropriation                                                                                                 78,971,190



 



RESERVES AND LOTTERY



General Fund Reserve – Reverting Funds



      Requirements                                                                                                           49,186,505



      Less: Receipts                                                                                                        800,000,000



      Net Appropriation                                                                                              (750,813,495)



 



General Fund Reserves



      Requirements                                                                                                                           0



      Less: Receipts                                                                                                                          0



      Net Appropriation                                                                                                                 0



 



      Total Requirements                                                                                        70,683,698,986



      Less: Total Receipts                                                                                        39,255,975,469



      Total Net Appropriation                                                                                31,427,723,517



 



SECTION 2.1.(b)  For purposes 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 Remaining FY 2023‑24                                               1,564,437,931



      Anticipated Reversions                                                                                          500,000,000



      Anticipated Overcollections                                                                                  188,138,702



Total, Prior Year‑End Fund Balance                                                                   2,252,576,633



 



Revised Consensus Revenue Forecast                                                                                        



      Tax Revenue                                                                                                     32,574,000,000



      Non‑Tax Revenue                                                                                               1,590,300,000



Total, Tax and Non‑Tax Revenue                                                                       34,164,300,000



 



Reservations of Revenue, Statutory* and Discretionary                                                          



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



      Additional Transfer to SCIF                                                                                 (700,000,000)



      Savings Reserve                                                                                                   (125,000,000)



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



      Economic Development Reserve                                                                         (305,100,000)



      Medicaid Contingency Reserve                                                                           (350,000,000)



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



      Housing Reserve                                                                                                    (45,000,000)



      Transportation Reserve                                                                                        (100,000,000)



      Education Reserve                                                                                                (254,000,000)



      Child Care Reserve                                                                                               (111,000,000)



      NCInnovation Reserve                                                                                         (250,000,000)



Total, All Reservations of Revenue                                                                      (4,776,433,238)



 



Revised Total General Fund Availability                                                           31,640,443,395



 



General Fund Net Appropriations                                                                      31,427,723,517



 



Unappropriated Balance Remaining                                                                       212,719,878



 



SECTION 2.2.(b)  Education Reserve. – There is established in the General Fund an Education Reserve. The State Controller shall reserve to the Education Reserve from funds available in the General Fund the sum of two hundred fifty‑four million dollars ($254,000,000) in nonrecurring funds for the 2024‑2025 fiscal year. The State Controller shall transfer funds available in the Education Reserve, and the funds transferred are appropriated pursuant to Section 2.1 of this act for the fiscal year in which they are transferred. The schedule for this subsection is as follows:



State Agency or Department                                                    2024‑2025



 



(1)        UNC BOG – Related Ed. Programs



            (Budget Code: 16012)                                          $248,000,000



(2)        NC Community College System                               $6,000,000



 



SECTION 2.2.(c)  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) three hundred fifty million dollars ($350,000,000) in nonrecurring funds for the 2024‑2025 fiscal year.



SECTION 2.2.(c1)  The State Controller shall transfer the sum of one hundred million dollars ($100,000,000) from funds available in the Medicaid Contingency Reserve to the Department of Health and Human Services, Division of Health Benefits, for the 2024‑2025 fiscal year.  The funds transferred are appropriated pursuant to Section 2.1 of this act for the fiscal year in which they are transferred.



SECTION 2.2.(d)  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) three hundred five million one hundred thousand dollars ($305,100,000) 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$55,100,000



(2)        Department of Commerce



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



(3)        Department of Environmental Quality



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



(4)        Department of Transportation



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



 



SECTION 2.2.(e)  Child Care Reserve. – There is established in the General Fund a Child Care Reserve. The State Controller shall reserve to the Child Care Reserve from funds available in the General Fund the sum of one hundred eleven million dollars ($111,000,000) in nonrecurring funds for the 2024‑2025 fiscal year. The State Controller shall transfer the sum of one hundred eleven million dollars ($111,000,000) from the Child Care Reserve to the Department of Health and Human Services, Division of Child Development and Early Education, (Budget Code: 14420) for the 2024‑2025 fiscal year, and the funds transferred are appropriated pursuant to Section 2.1 of this act for the fiscal year in which they are transferred.



SECTION 2.2.(f)  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. 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, the schedule provided in this subsection, and the funds transferred are appropriated for the fiscal year in which the funds are transferred:transferred. Funds appropriated in this subsection that exceed the amount required for the match of federal grant funds specified in this act and in the Committee Report described in Section 43.2 of this act shall revert to the Federal Match Reserve at the end of the fiscal year in which they were appropriated. The schedule for this subsection is as follows:



….



SECTION 2.2.(g)  Notwithstanding G.S. 143C‑4‑2(i), no transfer shall be made to the Unfunded Liability Solvency Reserve for the 2024‑2025 fiscal year.



 



PART III. HIGHWAY FUND AND HIGHWAY TRUST FUND



 



CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND



SECTION 3.1.  Appropriations from 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. Amounts set out in parentheses are reductions from Highway Fund Appropriations for the 2024‑2025 fiscal year.



 



Highway Fund                                                                                                         FY 2024‑2025



Administration                                                                                                           $117,336,157



Division of Highways



            Administration                                                                                                   57,986,424



            Construction                                                                                                      77,543,078



            Maintenance                                                                                                 2,165,993,362



            Governor's Highway Safety Program                                                                     324,111



            OSHA                                                                                                                     358,030



Aid to Municipalities                                                                                                   185,875,000



Intermodal Divisions



            Ferry                                                                                                                  64,679,849



            Public Transportation, Bicycle



                  and Pedestrian                                                                                              69,510,286



            Aviation                                                                                                           179,374,429



            Rail                                                                                                                    45,299,938



Division of Motor Vehicles                                                                                         147,883,896



Other State Agencies, Reserves, Transfers                                                                    72,817,577



Capital Improvements                                                                                                   10,571,863



Highway Fund Total                                                                                               $3,195,554,000



 



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:



 



Highway Fund Availability                                                                                    FY 2024‑2025



                                                                                                                                             



Beginning Balance                                                                                                                     $0



 



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                                                                                                 177,700,000



 



Total Highway Fund Availability                                                                       $3,274,800,000



 



Unappropriated Balance                                                                                           $79,246,000



 



HIGHWAY TRUST FUND APPROPRIATIONS



SECTION 3.3.  Appropriations from 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 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. Amounts set out in parentheses are reductions from Highway Trust Fund Appropriations for the 2024‑2025 fiscal year.



 



Highway Trust Fund                                                                                                 FY 2024‑25



Program Administration                                                                                                42,017,311



Bond                                                                                                                            121,436,775



Turnpike Authority                                                                                                        49,000,000



State Ports Authority                                                                                                     45,000,000



FHWA State Match                                                                                                         6,176,440



Strategic Prioritization Funding



      Plan for Transportation Investments                                                                  2,181,475,474



Transfer to Visitor Center                                                                                                   640,000



Highway Trust Fund Total                                                                                  $2,445,746,000



 



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 2024‑2025 fiscal year budget is shown below:



 



Highway Trust Fund Availability                                                                          FY 2024‑2025



                                                                                                                                             



Beginning Balance                                                                                                                     $0



 



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                                                                                                 533,000,000



 



Total Highway Trust Fund Availability                                                             $2,467,500,000



 



Unappropriated Balance                                                                                           $21,754,000



 



PART IV. OTHER AVAILABILITY AND APPROPRIATIONS



 



Appropriation of Receipts Increased due to salary and benefits increases



SECTION 4.1.  Any receipts that are required to be used to pay the legislatively mandated salary increases and employee benefits increases provided in this act are appropriated up to the actual amount received for the 2024‑2025 fiscal year.



 



Reallocations of unspent State Fiscal Recovery Funds



SECTION 4.2.  VIPER Reallocation. – The Office of State Budget and Management, in consultation with the North Carolina Pandemic Recovery Office, shall identify ten million dollars ($10,000,000) in unspent funds in the State Fiscal Recovery Fund established in Section 2.2 of S.L. 2021‑25 for the Long Leaf Scholarship 2022 Graduates project, as the project has been completed and all eligible students have been served. Amounts identified pursuant to this section are reallocated as provided in Section 9.2 of this act.



SECTION 4.3.(a)  Water and Wastewater Reallocation. – Funds appropriated to the Department of Environmental Quality from the State Fiscal Recovery Fund, established in Section 2.2 of S.L. 2021‑25, for the Water Infrastructure Fund for water and wastewater projects allocated in Section 12.13 of S.L. 2021‑180 and Section 12.9 of S.L. 2022‑74 shall be reduced by the sum of the eight hundred million dollars ($800,000,000) in nonrecurring funds (reallocated funds). Of the funds appropriated from the General Fund to the Department of Environmental Quality, the sum of eight hundred million dollars ($800,000,000) in nonrecurring funds shall be used for the projects previously designated to be funded by the reallocated funds in the same amounts.



The reallocated funds are hereby appropriated for the 2024‑2025 fiscal year to the Office of State Budget and Management (OSBM) to be used to offset General Fund appropriations across State government for allowable State Fiscal Recovery Fund expenditures; provided that, OSBM shall not use reallocated funds to increase total requirements of a State agency or department. As allowable expenditures are identified in accordance with this subsection, OSBM shall reduce the net General Fund appropriation in the relevant State agency or department and transfer that appropriation to the reserve created in subsection (b) of this section.



SECTION 4.3.(b)  Creation of Reserve. – There is created in the General Fund a Statewide Reserve for Appropriations (Reserve) (Budget Code: 190XX). The Reserve shall have a beginning negative appropriation balance of eight hundred million dollars ($800,000,000). By June 30, 2025, the Reserve shall have a balance of zero dollars ($0.00).



 



PART V. GENERAL PROVISIONS



 



Extend The Time Line for Certain Directed Grants to Non‑State Entities



SECTION 5.1.(a)  This section applies to any directed grants appropriated as nonrecurring funds in S.L. 2022‑74 for the 2022‑2023 fiscal year that (i) remain unexpended as of the effective date of this section and (ii) are subject to reversion at the end of the 2023‑2024 fiscal year. Notwithstanding any provision of law to the contrary, the grants described by this section shall not revert at the end of the 2023‑2024 fiscal year and shall remain available for expenditure for the purpose for which the funds were appropriated until the earlier of the date the funds are expended or the date the funds revert pursuant to subsection (b) of this section.



SECTION 5.1.(b)  Any funds described in subsection (a) of this section that remain unexpended as of June 30, 2024, shall revert to the appropriate fund at the end of the 2024‑2025 fiscal year.



SECTION 5.1.(c)  This section becomes effective June 30, 2024.



 



ELIMINATE EDUCATION ENROLLMENT RESERVE FUNDS



SECTION 5.2.  Notwithstanding any provision of law or the Committee Report described in Section 43.2 of S.L. 2023‑134 to the contrary, the sum of sixty million dollars ($60,000,000) in recurring funds for the 2024‑2025 fiscal year for the Education Enrollment Reserve is hereby eliminated. Additional funds are appropriated in this act to support the budget requirements associated with education enrollment changes provided in the Community College System, Department of Public Instruction, and The University of North Carolina budgets.



 



Eliminate reservation of Pending legislation funds



SECTION 5.3.  Notwithstanding any provision of law or the Committee Report described in Section 43.2 of S.L. 2023‑134 to the contrary, the sum of four hundred fifty thousand dollars ($450,000) in nonrecurring funds for the 2024‑2025 fiscal year as appropriated for Item 3 on page I‑6 of that report for pending legislation is hereby eliminated.



 



REDUCE FUTURE BUILDING RESERVE FUNDS



SECTION 5.4.  Notwithstanding any provision of law or the Committee Report described in Section 43.2 of S.L. 2023‑134 to the contrary, the sum of seven million six hundred thirty‑six thousand six hundred seventy‑three dollars ($7,636,673) in recurring funds for the 2024‑2025 fiscal year and the sum of four hundred seventy thousand four hundred four dollars ($470,404) in nonrecurring funds for the 2024‑2025 fiscal year for the Future Building Reserve are reduced. Additional funds are appropriated in this act to support the opening of Randall Library at the University of North Carolina at Wilmington, Joiner Hall and other buildings at the North Carolina School of Science and Mathematics Morganton campus, and the Office of the State Fire Marshal's Emergency Training Facility in Stanly County.



 



part VI. education



 



TEACHER SALARY SCHEDULE



SECTION 6.1.(a)  The following monthly teacher salary schedule shall apply for the 2024‑2025 fiscal year to licensed personnel of the public schools who are classified as teachers. The salary schedule is based on years of teaching experience.



2024‑2025 Teacher Monthly Salary Schedule



Years of Experience                                                              A Teachers



0                                                                                         $4,100



1                                                                                         $4,175



2                                                                                         $4,250



3                                                                                         $4,325



4                                                                                         $4,400



5                                                                                         $4,475



6                                                                                         $4,572



7                                                                                         $4,663



8                                                                                         $4,753



9                                                                                         $4,844



10                                                                                       $4,935



11                                                                                       $5,025



12                                                                                       $5,116



13                                                                                       $5,206



14                                                                                       $5,297



15‑24                                                                                  $5,388



25+                                                                                     $5,595



SECTION 6.1.(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 6.1.(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 6.1.(d)  Beginning with the 2014‑2015 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 6.1.(e)  A teacher compensated in accordance with this salary schedule for the 2024‑2025 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 2013‑2014 school year, the sum of the following:



a.         The salary the teacher received in the 2013‑2014 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 2013‑2014 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 2013‑2014 school year, the sum of the salary and annual bonus the teacher received in the 2014‑2015 school year pursuant to Section 9.1 of S.L. 2014‑100.



SECTION 6.1.(f)  As used in this section, the term teacher shall also include instructional support personnel.



 



PRINCIPAL SALARY SCHEDULE



SECTION 6.2.(a)  The following annual salary schedule for principals shall apply for the 2024‑2025 fiscal year, beginning July 1, 2024:



2024‑2025 Principal Annual Salary Schedule



Avg. Daily Membership              Base                      Met Growth         Exceeded Growth



0‑200                                       $77,792                 $85,570                 $93,350



201‑400                                   $81,681                 $89,849                 $98,017



401‑700                                   $85,570                 $94,128                 $102,685



701‑1,000                                $89,461                 $98,406                 $107,353



1,001‑1,600                             $93,350                 $102,685               $112,020



1,601+                                     $97,239                 $106,963               $116,687



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 one or more prior 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 as follows:



a.         For the first six months of the applicable fiscal year, if the higher school growth score in one of the two prior school years shows that the school exceeded expected growth.



b.         For the second six months of the applicable fiscal year, if the school growth scores show the school or schools exceeded expected growth in at least two of the prior three school years.



(2)        A principal shall be paid according to the Met Growth column of the schedule as follows:



a.         For the first six months of the applicable fiscal year, if any of the following apply:



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



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



b.         For the second six months of the applicable fiscal year, if any of the following apply:



1.         The school growth scores show the school or schools met expected growth in at least two of the prior three school years.



2.         The school growth scores show the school or schools met expected growth in at least one of the prior three school years and exceeded expected growth in one of the prior three school years.



3.         The principal supervised a school in at least two of the prior three school years that was not eligible to receive a school growth score.



(3)        A principal shall be paid according to the Base column, as follows:



a.         For the first six months of the applicable fiscal year, if any of the following apply:



1.         The school growth scores from the two prior school years show that the school did not meet expected growth in both years.



2.         The principal has not supervised any school as a principal for a majority of the two prior school years.



b.         For the second six months of the applicable fiscal year, if any of the following apply:



1.         The school growth scores show the school or schools did not meet expected growth in at least two of the prior three school years.



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



SECTION 6.2.(b)  For purposes of determining the average daily membership of a principal's school, the following amounts shall be used during the following time periods:



(1)        For the first six months of the applicable fiscal year, the average daily membership for the school from the third year. If the school did not have an average daily membership in the third year, the projected average daily membership for the school for the applicable school year.



(2)        For the second six months of the applicable fiscal year, the average daily membership for the school for the applicable school year. For this time period only, the average daily membership of a principal's school shall include any prekindergarten students in membership at that school.



SECTION 6.2.(c)  For purposes of determining the school growth scores for each school the principal supervised in one or more prior school years, the following school growth scores shall be used during the following time periods:



(1)        For the first six months of the applicable fiscal year, the school growth scores from the first and second years.



(2)        For the second six months of the applicable fiscal year, the school growth scores from the first, second, and third years. If a principal does not have a school growth score from any of the school years identified in this subdivision, the most recent available growth scores, up to the third year, shall be used.



SECTION 6.2.(d)  Beginning with the 2017‑2018 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 6.2.(e)  A principal compensated in accordance with this section for the applicable fiscal year shall receive an amount equal to the greater of the following:



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



(2)        For principals who were eligible for longevity in the 2016‑2017 fiscal year, the sum of the following:



a.         The salary the principal received in the 2016‑2017 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 2016‑2017 fiscal year based on the principal's current years of service.



(3)        For principals who were not eligible for longevity in the 2016‑2017 fiscal year, the salary the principal received in the 2016‑2017 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.



SECTION 6.2.(f)  For purposes of this section, the following definitions apply:



(1)        First year. – The school year immediately preceding the second year.



(2)        Second year. – The school year immediately preceding the third year.



(3)        The applicable fiscal year. – The 2024‑2025 fiscal year.



(4)        The applicable school year. – The 2024‑2025 school year.



(5)        Third year. – The school year immediately preceding the applicable school year.



 



BONUSES FOR PRINCIPALS



SECTION 6.3.(a)  The Department of Public Instruction shall administer a bonus in the 2024‑2025 fiscal year to any principal who supervised a school as a principal for a majority of the previous school year if that school was in the top fifty percent (50%) of school growth in the State during the previous school year, calculated by the State Board pursuant to G.S. 115C‑83.15(c), as follows:



2024‑2025 Principal Bonus Schedule



Statewide Growth Percentage                                             Bonus



Top 5%                                                                      $15,000



Top 10%                                                                    $10,000



Top 15%                                                                      $5,000



Top 20%                                                                      $2,500



Top 50%                                                                      $1,000



A principal shall receive no more than one bonus pursuant to this subsection. The bonus shall be paid at the highest amount for which the principal qualifies.



SECTION 6.3.(b)  The bonus awarded pursuant to this section shall be in addition to any regular wage or other bonus the principal receives or is scheduled to receive.



SECTION 6.3.(c)  Notwithstanding G.S. 135‑1(7a), the bonuses awarded pursuant to this section are not compensation under Article 1 of Chapter 135 of the General Statutes, Retirement System for Teachers and State Employees.



SECTION 6.3.(d)  It is the intent of the General Assembly that funds provided pursuant to this section will supplement principal compensation and not supplant local funds.



SECTION 6.3.(e)  The bonus provided pursuant to this section shall be paid no later than October 31, 2024, to qualifying principals employed as of October 1, 2024.



 



ASSISTANT PRINCIPAL SALARIES



SECTION 6.4.(a)  For the 2024‑2025 fiscal year, beginning July 1, 2024, assistant principals shall receive a monthly salary based on the salary schedule for teachers 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 6.4.(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 6.4.(c)  Participants in an approved full‑time master's in school administration program shall receive up to a 10‑month stipend during the internship period of the master's program. The stipend shall be at the beginning salary of an assistant principal or, for a teacher who becomes an intern, at least as much as that person would earn as a teacher on the teacher salary schedule. The North Carolina Principal Fellows Program or the school of education where the intern participates in a full‑time master's in school administration program shall supply the Department of Public Instruction with certification of eligible full‑time interns.



SECTION 6.4.(d)  Beginning with the 2017‑2018 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 6.4.(e)  An assistant principal compensated in accordance with this section for the 2024‑2025 fiscal year shall receive an amount equal to the greater of the following:



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



(2)        For assistant principals who were eligible for longevity in the 2016‑2017 fiscal year, the sum of the following:



a.         The salary the assistant principal received in the 2016‑2017 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 2016‑2017 fiscal year based on the assistant principal's current years of service.



(3)        For assistant principals who were not eligible for longevity in the 2016‑2017 fiscal year, the salary the assistant principal received in the 2016‑2017 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.



 



CENTRAL OFFICE SALARIES



SECTION 6.5.(a)  For the 2024‑2025 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 6.5.(b)  The monthly salary maximums that follow apply to assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 2024‑2025 fiscal year, beginning July 1, 2024:



2024‑2025 Fiscal Year



Maximum



School Administrator I                                                     $7,573



School Administrator II                                                   $8,024



School Administrator III                                                  $8,502



School Administrator IV                                                  $8,834



School Administrator V                                                   $9,187



School Administrator VI                                                  $9,731



School Administrator VII                                              $10,120



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 6.5.(c)  The monthly salary maximums that follow apply to superintendents for the 2024‑2025 fiscal year, beginning July 1, 2024:



2024‑2025 Fiscal Year



Maximum



Superintendent I                                                             $10,727



Superintendent II                                                            $11,366



Superintendent III                                                          $12,049



Superintendent IV                                                          $12,773



Superintendent V                                                           $13,541



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 6.5.(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 6.5.(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 6.5.(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.



 



NONCERTIFIED PERSONNEL SALARIES



SECTION 6.6.  For the 2024‑2025 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 an equitable amount based on the amount specified in subdivision (1) of this section:



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



b.         Permanent, part‑time employees.



c.         Temporary and permanent hourly employees.



 



Community College Enrollment adjustment



SECTION 6.7.  Of the funds appropriated in this act for the 2024‑2025 fiscal year for the Community College System, the total requirements shall be increased by eighty‑three million seven hundred seventy thousand seven hundred nineteen dollars ($83,770,719) in recurring funds and the receipts shall be increased by fourteen million five hundred thirty‑nine thousand four hundred seventy‑eight dollars ($14,539,478) in recurring funds, resulting in a recurring increase in General Fund net appropriations of sixty‑nine million two hundred thirty‑one thousand two hundred forty‑one dollars ($69,231,241), to account for an increase in enrollment.



 



Create parity between Workforce continuing Education and Curriculum programs



SECTION 6.7A.  Of the funds appropriated in this act for the 2024‑2025 fiscal year for the Community College System, the sum of eighteen million five hundred thousand dollars ($18,500,000) in recurring funds shall be used to create funding parity between Workforce Continuing Education (WCE) and Curriculum programs. Funds provided for this purpose shall be used to increase the budget full‑time equivalent formula values for applicable WCE programs in the current funding model.



 



Enrollment increase reserve



SECTION 6.7B.  Of the funds appropriated in this act for the 2024‑2025 fiscal year from the Education Reserve for the Community College System, the sum of six million dollars ($6,000,000) in nonrecurring funds shall be allocated to community colleges with eligible enrollment increases that exceed budgeted enrollment levels. The Community College System shall request replenishment of the Education Reserve by the enrollment growth adjustment as needed.



 



STATUTORY CHANGES FOR DPI FUNDING IN ARREARS



SECTION 6.8.(a)  G.S. 115C‑47(1a) reads as rewritten:



(1a)    a.   To Establish and Maintain Kindergartens. –  Local boards of education shall provide for their respective local school administrative unit kindergartens as a part of the public school system for all children living in the local school administrative unit who are eligible for admission pursuant to sub‑subdivision c. of this subdivision provided that funds are available from State, local, federal, or other sources to operate a kindergarten program as provided in this subdivision.



b.         All kindergarten programs so established shall be subject to the supervision of the Department of Public Instruction and shall be operated in accordance with the standards adopted by the State Board of Education, upon recommendation of the Superintendent of Public Instruction. Among the standards to be adopted by the State Board of Education shall be a provision that the Board will allocate funds for the purpose of operating and administering kindergartens to each school administrative unit in the State based on the average daily membership for the best continuous three out of the first four school months of pupils in the kindergarten program during the last school year in that respective school administrative unit. Such allocations are to be made from funds appropriated to the State Board of Education for the kindergarten program.



c.         Any child who meets the requirements of G.S. 115C‑364 shall be eligible for enrollment in kindergarten. Any child who is enrolled in kindergarten and not withdrawn by the child's parent or legal guardian shall attend kindergarten.



d.         Notwithstanding any other provision of law to the contrary, subject to the approval of the State Board of Education, any local board of education may elect not to establish and maintain a kindergarten program. Any funds allocated to a local board of education which does not operate a kindergarten program may be reallocated by the State Board of Education, within the discretion of the Board, to a county or city board of education which will operate such a program.



SECTION 6.8.(b)  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 allotted average daily membership in the local school administrative unit for the current school year.



SECTION 6.8.(c)  G.S. 115C‑150.9 reads as rewritten:



§ 115C‑150.9.  Funding for academically or intellectually gifted students.



To the extent funds are made available for this purpose, the State Board shall allocate funds for academically or intellectually gifted students on a per child basis. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its allocated allotted average daily membership for the current school year, regardless of the number of students identified as academically or intellectually gifted in the unit.



SECTION 6.8.(d)  G.S. 115C‑472.18(b) reads as rewritten:



(b)      Phase‑Out Provision. – If a local school administrative unit becomes ineligible for funding under the schedule in subsection (a) of this section, funding for that unit shall be phased out over a five‑year period. Funding for such local school administrative units shall be reduced in equal increments in each of the five years after the unit becomes ineligible. Funding shall be eliminated in the fifth fiscal year after the school administrative unit becomes ineligible. Allotments for eligible local school administrative units under this subsection shall not be reduced in any fiscal year by more than twenty percent (20%) of the amount received during the fiscal year when the local school administrative unit became ineligible to receive funds under this section. A local school administrative unit shall not become ineligible for funding if either the highest of the first two months' total projected average daily membership for the current year or the higher of the first two months' total prior year average daily membership would otherwise have made the unit eligible for funds under the schedule in subsection (a) of this section.Eligibility for funding is based on the allotted average daily membership of the unit. The initial allocation is based on the allotted average daily membership of the unit and shall not be adjusted for current year actual average daily membership.



SECTION 6.8.(e)  The reduction of thirty‑six million two hundred twenty‑four thousand four hundred twenty‑two dollars ($36,224,422) in recurring funds for the 2024‑2025 fiscal year for the State Public School Fund as reflected in Section 2.1(a) of this act is an adjustment made to accommodate the transition to an arrears‑based funding model as well as changes in average salaries, special population headcounts, and other technical adjustments.



 



FUNDS FOR K‑12 CONTINGENCY RESERVE



SECTION 6.9.  Of the funds appropriated in this act for the 2024‑2025 fiscal year to the Department of Public Instruction, the sum of ninety‑five million dollars ($95,000,000) in recurring funds shall be allocated to the K‑12 Contingency Reserve to fund growing public school units.



 



UPDATE ADVANCED TEACHING ROLES PROGRAM



SECTION 6.10.(a)  Chapter 115C of the General Statutes is amended by adding a new Article to read:



Article 20A.



Advanced Teaching Roles.



§ 115C‑310.1.  Purpose.



The State Board of Education shall establish a program to develop advanced teaching roles and organizational models that link teacher performance and professional growth to salary increases for classroom teachers in selected local school administrative units. The purpose of the Advanced Teaching Roles program is to do the following:



(1)        Allow highly effective classroom teachers to advance by either (i) teaching an increased number of students or (ii) becoming a lead classroom teacher responsible for the student performance of all students taught by teachers on that lead classroom teacher's team.



(2)        Enable local school administrative units to provide salary supplements to classroom teachers in advanced teaching roles. Selection of a classroom teacher for an advanced teaching role and award of related salary supplements shall be made on the basis of demonstrated effectiveness and additional responsibilities.



(3)        Enable local school administrative units to create innovative compensation models that focus on classroom teacher professional growth that lead to measurable improvements in student outcomes.



(4)        Utilize local plans to establish organizational changes related to compensation in order to sustain evidence‑based teaching practices that have the capacity to be replicated throughout the State.



§ 115C‑310.3.  Definitions.



The following definitions apply to this Article:



(1)        Adult leadership teacher. – An ATR team lead who meets the following criteria:



a.         Works in the classroom providing instruction for at least thirty percent (30%) of the instructional day.



b.         Leads a team of between three and eight teachers.



c.         Shares responsibility for the performance of the students of all teachers on adult leadership teacher's team.



d.         Is not a school administrator.



(2)        Advanced teaching role. – A teaching assignment that includes either (i) teaching an increased number of students or (ii) becoming an ATR team lead.



(3)        ATR plan. – A local board of education's plan to implement advanced teaching roles under this Article.



(4)        ATR school. – A school that is included in an ATR unit's ATR plan.



(5)        ATR team lead. – A teaching assignment that includes leading one or more teachers and being responsible for the student performance of all students taught by teachers on that lead teacher's team.



(6)        ATR unit. – A local school administrative unit operating under an ATR plan approved by the State Board of Education.



(7)        Classroom excellence teacher. – A classroom teacher serving in an advanced teaching role who assumes and maintains responsibility for at least twenty percent (20%) of additional students as compared to the most recent prior school year in which the teacher did not receive a salary supplement pursuant to this section.



(8)        Classroom teacher. – A teacher who works in the classroom providing instruction to students at least seventy percent (70%) of the instructional day and who is not instructional support personnel.



§ 115C‑310.5.  Advanced teaching roles plan approval.



(a)        Proposals. – By July 15 of each year, the State Board of Education shall issue a Request for Proposal (RFP) to allow local boards of education to submit ATR plans for approval. Local boards of education shall submit their proposed ATR plans by August 15. The RFP shall require that proposals include the following information at a minimum:



(1)        Description of the plan structure, including both of the following:



a.         The process for teacher advancement based on performance, professional growth, or the advanced teaching roles assumed by the teacher.



b.         Plans for how the local school administrative unit will utilize and train teachers in advanced teaching roles. These plans shall describe how the proposed use and training of teachers in advanced teaching roles will improve student outcomes.



(2)        Descriptions of the advanced teaching roles, including the following information for each advanced role:



a.         Minimum qualifications for the position that include at least two of the following:



1.         Advanced certifications, such as National Board for Professional Teaching Standards Certification, or a master's degree in the area in which the teacher is licensed and teaching.



2.         A rating of at least accomplished on each of the Teacher Evaluation Standards 1‑5 on the North Carolina Teacher Evaluation instrument.



3.         Evidence that the teacher has an average Education Value‑Added Assessment System (EVAAS) student growth index score from the three previous school years of 1.5 or greater and no individual EVAAS student growth index score below zero.



4.         Equivalent demonstrated mastery of teaching skills as required by the new local compensation model.



b.         Job responsibilities for each advanced teaching role that include at least one of the following:



1.         Teaching an increased number of students and being responsible for their performance as the teacher of record for those students.



2.         Becoming an ATR team lead and participating in EVAAS according to a model developed by the Department of Public Instruction. The Department shall publish and explain the model on the Department's website and update it within 30 days of any change to the model.



(3)        Salary supplement information including the following:



a.         The amount of the salary supplements for each advanced teaching role and the source of funding for each supplement.



b.         A statement by the local board of education that the salary supplements will be paid as a supplement to the teacher's regular salary and not be included in the average salary calculation used for budgeting State allotments.



c.         A statement by the local board of education that if a teacher in an advanced teaching role (i) fails to maintain the minimum criteria established for the position, (ii) is not successfully performing the additional duties associated with the advanced teaching role, or (iii) voluntarily relinquishes the advanced teaching role, the teacher shall only be paid the salary applicable to that individual on the State teacher salary schedule and any other local supplements that would otherwise apply to the teacher's compensation.



d.         The amount of the salary supplements at all levels of the proposed new compensation model in relation to the State teacher salary schedule.



(4)        An implementation plan consistent with subsection (d) of this section, including the number of schools in the local school administrative unit that will have advanced teaching roles and any new proposed compensation model, the number of advanced teaching roles at each of those schools, the number of students whose teacher of record will be a teacher in an advanced teaching role, and the number of teachers overall who would be eligible for the proposed new compensation model.



(5)        Plans for long‑term financial sustainability once any grant money that may be awarded under G.S. 115C‑310.11 to the local school administrative unit is no longer available. This plan shall include a description of how the unit intends to provide supplemental compensation for teachers in an advanced teaching role without grant money.



(6)        Description of how the local school administrative unit will inform all employees and the public on the criteria and selection for the advanced teaching roles, the continued eligibility requirements for the advanced teaching roles, and how the individuals selected for the advanced teaching roles will be evaluated.



(7)        Description of how the local school administrative unit will inform all employees and the public on the criteria for movement on the proposed new local compensation model.



(8)        The process for the voluntary relinquishment of an advanced teaching role, including the associated additional duties.



(9)        A description of how the local school administrative unit could partner with local educator preparation programs, institutions of higher education, or community colleges to improve teacher effectiveness and student outcomes.



(b)        Selection of ATR Units. – By October 15 of each year, the State Board of Education shall review proposals and select local school administrative units to participate in the program in accordance with the criteria established by the State Board of Education consistent with this section.



(c)        Advanced Teaching Roles Designation. – ATR units shall designate participating schools within the unit as ATR schools.



(d)       Implementation Limitations. – The following limitations apply to the implementation of advanced teaching roles in an ATR unit:



(1)        For the first year of implementation, the ATR unit may include in its ATR plan at least one school up to the lesser of (i) five of the ATR unit's schools or (ii) twenty‑five percent (25%) of the ATR unit's schools.



(2)        For the second and third year of implementation, the ATR unit may include in its ATR plan up at least one school up to the lesser of (i) 10 of the ATR unit's schools or (ii) fifty percent (50%) of the ATR unit's schools.



(3)        For any years following the third year of implementation, the ATR unit's plan may include any number of the unit's schools.



(e)        Loss of Advanced Teaching Role. – Loss of an advanced teaching role, including voluntary relinquishment, shall not be considered a demotion under Part 3 of Article 22 of Chapter 115C of the General Statutes.



(f)        Material Revisions of Plans. – ATR units shall submit material revisions of an approved ATR plan to the State Board of Education for approval.



§ 115C‑310.7.  Advanced teaching roles unit flexibility.



(a)        Class Size Flexibility. – Notwithstanding G.S. 115C‑301, with the approval of the State Board of Education, ATR schools may exceed the maximum class size requirements for kindergarten through third grade during any term of up to three years in which State funds are awarded to the ATR unit where the school is located. At the conclusion of the term, any class size flexibility approved for an ATR school pursuant to this subsection shall expire.



(b)        Budget Flexibility. – Subject to the budget flexibility limitations identified in G.S. 115C‑105.25(b), the State Board of Education shall authorize ATR units to use any available State funds to provide salary supplements to teachers in an advanced teaching role as long as the ATR unit complies with policies of the State Board of Education, federal law, and any State programs with specific restrictions on the use of funds, including bonus and grant programs.



§ 115C‑310.9.  Renewal and termination of program participation.



(a)        ATR Unit Review. – The State Board of Education shall review each ATR unit once every five years to ensure the unit is complying with the approved ATR plan. As part of the review, the State Board shall consider at least the following information:



(1)        The total number of teachers in advanced teaching roles in the unit, the number of teachers in each advanced teaching role identified in the unit's ATR plan, and the number of students receiving instruction from those teachers.



(2)        For each ATR school in the ATR unit, the total number of teachers in advanced teaching roles in the school, the number of teachers in each advanced teaching role identified in the unit's ATR plan in the school, the number of students receiving instruction from those teachers, and the number of teachers led by each ATR team lead.



(3)        Growth scores for students calculated pursuant to G.S. 115C‑83.15.



(4)        Achievement scores for students calculated pursuant to G.S. 115C‑83.15.



(5)        Retention of effective teachers.



(6)        Results of the Teacher Working Conditions Survey.



(7)        Ratings of teachers through the North Carolina Teacher Evaluation System.



(8)        Evidence that higher performing teachers have been selected to serve in an advanced teaching role.



(9)        A description of the activities undertaken by ATR team leads to (i) support the professional development of teachers on their team and (ii) enhance instruction by better aligning teachers' strengths with student needs.



(10)      The amount and funding source for any salary supplement received by teachers in advanced teaching roles in the unit.



(11)      A description of the amount of release time given to each ATR team lead, how the release time is spent, and how the school facilitates providing that release time.



(b)        Renewal or Termination. – Following the five‑year review, the State Board may, in its discretion, renew or terminate the plan of any ATR unit or any ATR school within the ATR unit that fails to meet criteria established by the State Board.



(c)        No later than October 15 of each year, the State Board shall report the results of any review conducted pursuant to this section and a copy of the information listed in subsection (a) of this section to the Fiscal Research Division, and the Joint Legislative Education Oversight Committee.



(d)       Access to Review Information. – An ATR unit shall provide any information or access needed to review the unit's compliance with this section that is requested by the State Board of Education.



(e)        Implementation Assistance. – If a review conducted in accordance with this section results in the State Board of Education determining that an ATR unit is having difficulties implementing the unit's ATR plan, the Department of Public Instruction shall provide guidance and support to the unit, including information on how to implement best practices according to the latest research.



§ 115C‑310.11.  Advanced teaching roles grants.



(a)        Term. – Any funds awarded to an ATR unit pursuant to this section shall be subject to availability and awarded for a term of up to three years, in the discretion of the State Board. An ATR unit shall not be eligible to receive funding for more than two terms. The State Board of Education shall authorize a second term of State funds in accordance with subsection (c) of this section.



(b)        Use of State Funds. – State funds shall be used for any of the following purposes, as defined by the State Board:



(1)        Development of ATR plans.



(2)        Development of professional development courses for teachers in advanced teaching roles that lead to improved student outcomes.



(3)        Transition costs associated with designing and implementing ATR plans. Transition costs may include employing staff members or contractors to assist with design and implementation of the plan.



(4)        Development of the design and implementation of compensation plans that focus on teacher professional growth and student outcomes and the transition costs associated with designing and implementing new compensation plans, including employing staff members or contractors to assist with design and implementation of the plan.



(c)        Renewal of Award of State Funds. – An ATR unit that received an initial award of State funds pursuant to this section may apply for a second term of funding for up to three years. Renewal of an award of State funds is in the discretion of the State Board. The ATR unit may apply at any time (i) after the initial award of State funds expires or (ii) within 90 days prior to the date the initial award of State funds is set to expire. Upon receipt of an application for renewal, the State Board shall do the following:



(1)        Review the unit to ensure the unit is complying with the approved ATR plan and criteria established by the State Board.



(2)        Grant or deny the application within 60 days of its receipt.



(d)       Non‑Reversion. – Funds awarded to an ATR unit under this section shall not revert at the end of each fiscal year but shall remain available until October 1 of the subsequent fiscal year.



§ 115C‑310.13.  Advanced teaching roles salary supplements.



(a)        ATR units may designate up to fifteen percent (15%) of the teachers in each ATR school as adult leadership teachers and five percent (5%) of the teachers in each ATR school as classroom excellence teachers. To the extent funds are made available for the purpose, teachers serving in an advanced teaching role are eligible to receive salary supplements as follows:



(1)        Ten thousand dollars ($10,000) for adult leadership teachers.



(2)        Three thousand dollars ($3,000) for classroom excellence teachers.



(b)        Notwithstanding G.S. 115C‑310.5, to the extent funds are made available for this purpose, the State Board of Education shall award funds to ATR units for annual salary supplements for teachers and the receiving ATR units shall provide the salary supplement to participating teachers in accordance with this section. If State funds are insufficient to cover the full amount of supplement identified in subsection (a) of this section, the State Board of Education and the ATR unit shall disburse any supplement funds pro rata. If funds have been disbursed pro rata, ATR units are encouraged but not required to fund the remainder of the supplement from alternate funding sources.



(c)        The following additional requirements apply to salary supplements received pursuant to this section:



(1)        Loss of a salary supplement received pursuant to this section for any reason shall not be considered a demotion under Part 3 of Article 22 of Chapter 115C of the General Statutes.



(2)        A teacher is eligible to continue receiving a salary supplement pursuant to this section as long as he or she remains an adult leadership teacher or a classroom excellence teacher.



(3)        A teacher is eligible to receive no more than one annual salary supplement pursuant to this section at any time.



(d)       By December 31, 2024, the Department of Public Instruction shall issue guidance to ATR units on how to effectively develop staffing plans and budgets, including how to maximize resources across multiple funding sources and the reach of teachers in advanced teaching roles to a greater number of students.



§ 115C‑310.15.  Program evaluation.



(a)        The State Board of Education shall evaluate how the advanced teaching roles program and new compensation plans have accomplished, at a minimum, the following:



(1)        Improvement in the quality of classroom instruction and increases in school‑wide growth or the growth of teachers who are mentored or impacted by a teacher in an advanced teaching role.



(2)        An increase in the attractiveness of teaching.



(3)        Recognition, impact, and retention of high‑quality classroom teachers.



(4)        Assistance to and retention of beginning classroom teachers.



(5)        Improvement in and expansion of the use of technology and digital learning.



(6)        Improvement in school culture based on school climate survey results.



(b)        No later than October 15 of each year, the State Board shall report the results of the evaluation conducted pursuant to this section to the Fiscal Research Division and the Joint Legislative Education Oversight Committee.



(c)        Access to Review Information. – An ATR unit shall provide any information or access needed to review the advanced teaching roles program that is requested by (i) the State Board of Education or (ii) an independent research organization selected by the State Board of Education to evaluate the program pursuant to this section.



SECTION 6.10.(b)  G.S. 115C‑311 and 115C‑312 are repealed.



SECTION 6.10.(c)  Notwithstanding G.S. 115C‑310.5(b), as enacted by this section, for the 2024‑2025 school year, the State Board of Education shall review proposals and select local school administrative units to participate in the program by November 15, 2024.



SECTION 6.10.(d)  Notwithstanding G.S. 115C‑310.5(d), as enacted by this section, for any ATR unit approved by the State Board of Education prior to July 1, 2024, the ATR unit may implement advanced teaching roles in the number of schools included in its approved ATR plan.



SECTION 6.10.(e)  Notwithstanding G.S. 115C‑310.15, as enacted by this section, for the advanced teaching roles evaluation report due October 15, 2024, the State Board of Education shall contract with an independent research organization to perform the evaluation.



SECTION 6.10.(f)  The Department of Public Instruction shall study the feasibility of measuring class size by student‑to‑teacher ratio, including the method to determine student ratios when a teacher is serving as an ATR team lead. No later than February 15, 2025, the Department shall report the results of the study to the Joint Legislative Education Oversight Committee, including recommendations on the technology needed to implement the student accounting model.



SECTION 6.10.(g)  This section is effective when it becomes law and applies beginning with the 2024‑2025 school year.



 



UNC STUDENT CREDIT HOUR ENROLLMENT CHANGES



SECTION 6.11.  Of the funds appropriated in this act for the 2024‑2025 fiscal year to the Board of Governors of The University of North Carolina, the sum of five hundred seventy‑four thousand five hundred seventy‑eight dollars ($574,578) in recurring funds shall be used to adjust funds provided to constituent institutions, as determined by the enrollment funding model for changes in resident student credit hours.



 



UNC PERFORMANCE FUNDING



SECTION 6.12.  Of the funds appropriated in this act for the 2024‑2025 fiscal year to the Board of Governors of The University of North Carolina, the sum of thirteen million sixty‑eight thousand two hundred sixty‑seven dollars ($13,068,267) in nonrecurring funds shall be used to adjust funds provided to constituent institutions, as determined by the enrollment funding model for performance outcomes related to student success, affordability, and productivity.



 



UNC ENROLLMENT LOSS MITIGATION



SECTION 6.13.  Of the funds appropriated in this act for the 2024‑2025 fiscal year to the Board of Governors of The University of North Carolina, the sum of eight million one hundred fifty thousand three hundred five dollars ($8,150,305) in nonrecurring funds shall be used to offset enrollment‑related funding losses experienced by the following institutions: (i) East Carolina University, (ii) the University of North Carolina at Asheville, (iii) the University of North Carolina at Greensboro, (iv) the University of North Carolina at Pembroke, and (v) Winston‑Salem State University.



 



UNC BUILDING RESERVES



SECTION 6.14.  Of the funds appropriated in this act for the 2024‑2025 fiscal year to the Board of Governors of The University of North Carolina, the sum of two million seven hundred eighty‑six thousand six hundred seventy‑three dollars ($2,786,673) in recurring funds and the sum of four hundred seventy thousand four hundred four dollars ($470,404) in nonrecurring funds shall be used to operate and maintain Randall Library at the University of North Carolina at Wilmington and Joiner Hall and other buildings at the North Carolina School of Science and Mathematics Morganton campus.



 



ADDITIONAL FUNDS FOR THE OPPORTUNITY SCHOLARSHIP PROGRAM



SECTION 6.15.(a)  Of the funds appropriated in this act for the 2024‑2025 fiscal year to the Board of Governors of The University of North Carolina from the Education Reserve (Reserve) for related education programs, the sum of two hundred forty‑eight million dollars ($248,000,000) in nonrecurring funds shall be allocated to the State Education Assistance Authority to provide additional funds for applicants for the award of opportunity scholarships pursuant to Part 2A of Article 39 of Chapter 115C of the General Statutes. These funds shall not be allocated to the Opportunity Scholarship Grant Fund Reserve and shall instead be made available for scholarship awards in the 2024‑2025 school year.



SECTION 6.15.(b)  Of the funds appropriated in this act from the General Fund to the Opportunity Scholarship Grant Fund Reserve, the sum of two hundred fifteen million four hundred sixty thousand dollars ($215,460,000) in additional recurring funds for the 2024‑2025 fiscal year shall be used for the purposes set forth in G.S. 115C‑562.8.



SECTION 6.15.(c)  G.S. 115C‑562.8 reads as rewritten:



§ 115C‑562.8.  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 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$625,000,000



2026‑2027                                                           $430,540,000$675,000,000



2027‑2028                                                           $445,540,000$700,000,000



2028‑2029                                                           $460,540,000$725,000,000



2029‑2030                                                           $475,540,000$750,000,000



2030‑2031                                                           $490,540,000$775,000,000



2031‑2032                                                           $505,540,000$800,000,000



For the 2032‑2033 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 thousand dollars ($520,540,000) eight hundred twenty‑five million dollars ($825,000,000) to be used for the purposes set forth in this section. When developing the base budget, as defined by G.S. 143C‑1‑1, 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.



…



(e)        The Authority shall make reasonable efforts to ensure the amount of scholarship grants awarded for a school year do not exceed the funds that are available for the awards to eligible students in each fiscal year. However, notwithstanding subsection (a) of this section, to ensure that as many eligible students receive scholarship grants in a timely manner as possible, the Authority may use up to thirty percent (30%) of the unencumbered cash balance in the Reserve in a fiscal year if the funds required to award scholarship grants to eligible students for a school year exceed the funds available for the distribution of those awards. If the Authority expends funds in excess of those available in the Reserve for a particular school year, the Authority shall submit the report required by G.S. 115C‑562.7(b1).G.S. 115C‑562.7(d).



 



ALLOW THE AUTHORITY TO USE ADMINISTRATIVE FUNDS FROM OPPORTUNITY SCHOLARSHIPS FOR PERSONAL EDUCATION STUDENT ACCOUNTS



SECTION 6.15A.(a)  G.S. 115C‑562.8(c) reads as rewritten:



(c)      Of the funds allocated to the Authority to award scholarship grants under this Part, the Authority may retain up to two and one‑half percent (2.5%) of the funds appropriated each fiscal year for administrative costs associated with the scholarship grant program. If the actual costs of administering the scholarship grant program are less than the funds authorized for administering the program pursuant to this subsection, the Authority may allocate unused funds for the additional administrative costs of the Personal Education Student Accounts for Children with Disabilities Program in accordance with G.S. 115C‑597(d).



SECTION 6.15A.(b)  G.S. 115C‑597(d) reads as rewritten:



(d)      Administration Costs. – Of the funds allocated to the Authority to award scholarship funds under this Article, the Authority may retain the lesser of four percent (4%) of the funds appropriated or two million dollars ($2,000,000) three million dollars ($3,000,000) each fiscal year for administrative costs associated with the program, including contracting with non‑State entities for administration of certain components of the program. If the actual costs of administering the program exceed the funds authorized for administering the program pursuant to this subsection, the Authority may allocate unused funds set aside for administration costs from the Opportunity Scholarship Grant Fund Reserve pursuant to G.S. 115C‑562.8(c) for the additional administrative costs of the Personal Education Student Accounts for Children with Disabilities Program.



 



ADDITIONAL FUNDS FOR NORTH CAROLINA PERSONAL EDUCATION STUDENT ACCOUNTS FOR CHILDREN WITH DISABILITIES PROGRAM



SECTION 6.16.(a)  Of the funds appropriated in this act for the 2024‑2025 fiscal year from the General Fund to the Board of Governors of The University of North Carolina, the sum of twenty‑four million seven hundred thousand dollars ($24,700,000) in recurring funds shall be allocated to the State Education Assistance Authority for the North Carolina Personal Education Student Accounts for Children with Disabilities Program in accordance with Article 41 of Chapter 115C of the General Statutes.



SECTION 6.16.(b)  G.S. 115C‑600(a) reads as rewritten:



(a)      The General Assembly finds that due to the continued growth and ongoing need in this State to provide opportunity for school choice for children with disabilities, it is imperative that the State provide an increase in funds of at least one million dollars ($1,000,000) each fiscal year for 10 years for the Personal Education Student Accounts for Children with Disabilities Program. To that end, there is appropriated from the General Fund to the Board of Governors of The University of North Carolina the following amounts each fiscal year to be allocated to the Authority for the Program in accordance with this Article:



Fiscal Year                                                                        Appropriation



2023‑2024                                                                          $48,943,166



2024‑2025                                                                          $49,943,166



2025‑2026                                                                          $50,943,166$75,643,166



2026‑2027                                                                          $51,943,166$76,643,166



2027‑2028                                                                          $52,943,166$77,643,166



2028‑2029                                                                          $53,943,166$78,643,166



2029‑2030                                                                          $54,943,166$79,643,166



2030‑2031                                                                          $55,943,166$80,643,166



2031‑2032                                                                          $56,943,166$81,643,166



2032‑2033 and each subsequent fiscal year thereafter      $57,943,166$82,643,166



When developing the base budget, as defined by G.S. 143C‑1‑1, for each fiscal year specified in this section, the Director of the Budget shall include the appropriated amount specified in this section for that fiscal year.



 



North carolina School of science and mathematics and North carolina school of the arts tuition grant



SECTION 6.17.  Of the funds appropriated in this act for the 2024‑2025 fiscal year to the Board of Governors of The University of North Carolina, the sum of six hundred fifty‑four thousand dollars ($654,000) in recurring funds shall be used to support tuition grants for high school graduates of the North Carolina School of Science and Mathematics and the North Carolina School of the Arts who attend a constituent institution of The University of North Carolina.



 



part VII. health and human services



 



MEDICAID REBASE



SECTION 7.1.  Of the funds appropriated in this act for the 2024‑2025 fiscal year to the Department of Health and Human Services, Division of Health Benefits (DHB), the sum of two hundred fifty‑nine million dollars ($259,000,000) in recurring funds and associated receipts shall be used to adjust Medicaid funding to account for projected changes in enrollment, enrollment mix, service and capitation costs, and federal match rates, as well as the ongoing transition to managed care. Of the funds appropriated in this act for the 2024‑2025 fiscal year to DHB from the Medicaid Contingency Reserve as set forth in Section 2.2(c) of this act, the sum of one hundred million dollars ($100,000,000) in nonrecurring funds and associated receipts shall be used to support nonrecurring Medicaid costs.



 



RETENTION OF ARPA TEMPORARY SAVINGS BY DHB FOR MEDICAID



SECTION 7.2.(a)  Notwithstanding the requirement under Section 1.3(a) of S.L. 2023‑7 for the Department of Health and Human Services, Division of Health Benefits (DHB), to deposit all of the savings associated with receipts arising from the enhanced federal medical assistance percentage (FMAP) available to the State under section 9814 of the American Rescue Plan Act of 2021, P.L. 117‑2 (ARPA), into the ARPA Temporary Savings Fund, DHB shall perform the following actions with regard to those savings generated in the 2024‑2025 fiscal year in the following order:



(1)        DHB shall deposit those savings into the ARPA Temporary Savings Fund as required by Section 1.3(a) of S.L. 2023‑7 until the total amount of savings transferred reaches four hundred fifty million dollars ($450,000,000).



(2)        DHB shall retain eighty million dollars ($80,000,000) of those savings to be used for the Medicaid program in place of General Fund net appropriations.



(3)        DHB shall deposit the remaining savings into the ARPA Temporary Savings Fund as required by Section 1.3(a) of S.L. 2023‑7.



SECTION 7.2.(b)  Funds appropriated in this act for the 2024‑2025 fiscal year to DHB have, in accordance with subdivision (2) of subsection (a) of this section, been reduced by eighty million dollars ($80,000,000) due to the projected savings from the additional five percentage point federal Medicaid match available through the ARPA Temporary Savings Fund for states that expand Medicaid after March 11, 2021.



 



MODIFY MEDICAID RECEIVABLES ACCOUNTED FOR AS NONTAX REVENUE



SECTION 7.3.  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 2024‑2025 fiscal year, the Department of Health and Human Services shall deposit from its revenues eighty‑eight million four hundred thousand one hundred fifty‑nine million five hundred thousand dollars ($88,400,000) ($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:



….



 



CLARIFY LANGUAGE/COMPENSATION GRANTS FOR CHILD CARE PROGRAMS



SECTION 7.4.  Section 9L.2(b) of S.L. 2021‑180, as amended by Section 9L.2(a) of S.L. 2022‑74 and Section 9D.11 of S.L. 2023‑134, reads as rewritten:



SECTION 9L.2.(b)  Of the funds appropriated in this act from federal Child Care and Development Block Grant funds received pursuant to ARPA to the Department of Health and Human Services, Division of Child Development and Early Education, the sum of five hundred three million seven hundred ninety‑three thousand seven hundred eleven dollars ($503,793,711) in nonrecurring funds shall be allocated for the following in response to the COVID‑19 pandemic:



(1)        Up to two hundred seventy‑four million dollars ($274,000,000) of the funds shall be used as follows:



a.         A minimum of two hundred six million dollars ($206,000,000) but no more than two hundred fifteen million dollars ($215,000,000) to (i) reduce the waitlist for children eligible for subsidized child care who are in foster care and (ii) after addressing the waitlist under item (i) of this sub‑subdivision, work toward reducing the waitlist for children eligible for subsidized child care. Additionally, the Division shall use a portion of these funds to extend the compensation grants portion of the child care stabilization grants, as authorized under Section 3.2(a) of S.L. 2021‑25, until these funds are exhausted.



b.         A minimum of fifty million dollars ($50,000,000) but no more than Up to fifty‑nine million dollars ($59,000,000) to modernize and improve early childhood technology infrastructure.



….



 



CHILD CARE STABILIZATION GRANTS CONTINUATION FUNDING



SECTION 7.5.(a)  Of the funds appropriated in this act for the 2024‑2025 fiscal year to the Department of Health and Human Services, Division of Child Development and Early Education (Division), the sum of one hundred eleven million dollars ($111,000,000) in nonrecurring funds from the Child Care Reserve established in Section 2.2(e) of this act and the sum of twenty‑five million four hundred ninety‑eight thousand nine hundred twenty‑two dollars ($25,498,922) in nonrecurring funds from the Child Care and Development Fund Block Grant for quality and availability initiatives shall be used to continue the compensation grants portion of the child care stabilization grants. The Division shall decrease grant amounts from levels it has previously provided. The Division shall provide grants for four quarters using decreased amounts to stay within the funding limits provided in this section.



SECTION 7.5.(b)  Section 9M.1 of S.L. 2023‑134, as amended by Section 3.8 of S.L. 2024‑1, reads as rewritten:



SECTION 9M.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 2023‑2024         FY 2024‑2025



FAMILIES (TANF) FUNDS



 



Local Program Expenditures



 



Division of Child Development and Early Education



 



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



                                                                                                                                       52,316,626



      …



 



TOTAL TEMPORARY ASSISTANCE FOR



NEEDY FAMILIES (TANF) FUNDS                                  $312,353,987           $312,353,987



                                                                                                                                   $318,856,919



 



…



 



CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT



 



Local Program Expenditures



 



Division of Child Development and Early Education



 



      01. Child Care Services                                                      $289,070,072           $289,070,072



                                                                                                                                   $282,567,140



                                                                                                                                                        



      02. Smart Start Subsidy                                                            7,392,654                 7,392,654



 



      03. Transfer from TANF Block Grant



            for Child Care Subsidies                                                   21,773,001               21,773,001



 



      04. Quality and Availability Initiatives



            (TEACH Program $3,800,000)                                        61,980,526               61,980,526



                                                                                                                                       87,479,448



…



 



TOTAL CHILD CARE AND DEVELOPMENT



      FUND BLOCK GRANT                                                  $411,280,123           $411,280,123



                                                                                                                                   $430,302,451



 



…



 



CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT



…



SECTION 9M.1.(x)  Of the sixty‑one million nine hundred eighty thousand five hundred twenty‑six dollars ($61,980,526) appropriated in this act in the Child Care and Development Block Grant for each year of the 2023‑2025 fiscal biennium the 2023‑2024 fiscal year and the eighty‑seven million four hundred seventy‑nine thousand four hundred forty‑eight dollars ($87,479,448) for the 2024‑2025 fiscal year for quality and availability initiatives to the Department of Health and Human Services, Division of Child Development and Early Education, the sum of one million three hundred fifty thousand dollars ($1,350,000) for in each year of the 2023‑2025 fiscal biennium shall be used to establish 18 new positions. From the eighty‑seven million four hundred seventy‑nine thousand four hundred forty‑eight dollars ($87,479,448) appropriated in this act for the 2024‑2025 fiscal year, the sum of twenty‑five million four hundred ninety‑eight thousand nine hundred twenty‑two dollars ($25,498,922) shall be used to extend the compensation grants portion of the child care stabilization grants, as authorized under Section 3.2(a) of S.L. 2021‑25.



 



….



 



MEDICAID GPT OFFSET



SECTION 7.6.  The reduction of nineteen million three hundred thousand dollars ($19,300,000) in nonrecurring funds for the Department of Health and Human Services, Division of Health Benefits, for the 2024‑2025 fiscal year as reflected in Section 2.1(a) of this act is an adjustment made to conform with the calculation of the gross premiums tax offset amount in G.S. 108A‑147.12(b) and with a corresponding adjustment to the transfer to the Health Advancement Receipts Special Fund.



 



part VIII. agriculture and natural and economic resources



 



FUNDING FOR WATER AND SEWER PROJECTS in chatham county



SECTION 8.1.  Funds transferred from the Economic Development Project Reserve to the Department of Commerce (Budget Code: 14601) for the 2024‑2025 fiscal year pursuant to Section 2.2(d) of this act shall be allocated to the City of Sanford for water and sewer expenditures in Chatham County.



 



part IX. Justice and public safety



 



Funding for the office of indigent defense services to make timely payments to Private Assigned Counsel



SECTION 9.1.  Of the funds appropriated in this act for the 2024‑2025 fiscal year from the General Fund to the Administrative Office of the Courts, Office of Indigent Defense Services, Budget Code 12001, Budget Fund 100151, the sum of twelve million dollars ($12,000,000) in nonrecurring funds shall be used to provide timely payments to attorneys representing indigent defendants.



 



Guardian ad litem contract attorney rate



SECTION 9.1A.  Of the funds appropriated in this act for the 2024‑2025 fiscal year from the General Fund to the Administrative Office of the Courts, Budget Code 12000, the sum of one million nine thousand two hundred sixty‑five dollars ($1,009,265) in recurring funds shall be used for the Guardian ad Litem program to increase the hourly rate paid to contract attorneys.



 



Funding for VIPER System



SECTION 9.2.(a)  The Office of State Budget and Management shall transfer the sum of ten million dollars ($10,000,000) in nonrecurring funds for the 2024‑2025 fiscal year from the State Fiscal Recovery Fund established in Section 2.2 of S.L. 2021‑25 to the Department of Public Safety for costs related to repairing or replacing structurally deficient Voice Interoperability Plan for Emergency Responders (VIPER) System towers. To the extent the funds transferred by this subsection are deemed unappropriated, the funds are hereby appropriated for the purpose set forth in this subsection.



SECTION 9.2.(b)  Of the funds appropriated in this act from the General Fund to the Department of Public Safety, the sum of one million eight hundred thousand dollars ($1,800,000) in recurring funds beginning in the 2024‑2025 fiscal year shall be used for costs related to the operation of the VIPER network.



 



Emergency Management Federal Funding Offset



SECTION 9.3.  Of the funds appropriated in this act for the 2024‑2025 fiscal year from the General Fund to the Department of Public Safety, Division of Emergency Management, the sum of one million nine hundred thousand dollars ($1,900,000) in recurring funds shall be used to support State‑level positions and State‑level operations impacted by reduced federal receipts.



 



part X. Information technology



 



Completing Access to Broadband Program Changes



SECTION 10.1.(a)  Notwithstanding the county project cost responsibility in G.S. 143B‑1373.1(d) and (e), of the funds appropriated to the Department of Information Technology (Department) from the State Fiscal Recovery Fund and the Coronavirus Capital Projects Fund for projects under the Completing Access to Broadband grant program (Program) in G.S. 143B‑1373.1, the Department shall utilize up to one hundred ninety million dollars ($190,000,000) to provide the county project cost responsibility required in G.S. 143B‑1373.1(e) and the State project cost responsibility for the 37 counties that have committed to the Department to participate in the Program and provide the county match as of May 1, 2024. A county may decline to accept any portion of the county project cost responsibility funding from the Department described in this subsection by notifying the Department within 30 days of the effective date of this section.



SECTION 10.1.(b)  G.S. 143B‑1373.1 reads as rewritten:



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



…



(d)       A broadband service provider selected for a project under this section may shall provide up to thirty percent (30%) of the total estimated project cost. The Office may commit up to thirty‑five percent (35%) of the total estimated project cost from monies in the CAB Fund. 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 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)        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 Received               County Responsibility              State 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. Upon 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.



SECTION 10.1.(c)  Subsection (b) of this section becomes effective July 1, 2024, and applies to grant funding requests submitted on or after that date. The remainder of this section becomes effective July 1, 2024.



 



BEAD Deployment



SECTION 10.2.(a)  Definitions. – As used in this section, the following definitions apply:



(1)        BEAD. – Broadband Equity, Access, and Deployment.



(1a)      Broadband service. – For the purposes of this section, a terrestrially deployed mass‑market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpoints, including any capabilities that are incidental to and enable the operation of the communications service, but excluding dial‑up internet access service.



(2)        Broadband serviceable location or BSL. – A location where broadband service is or could be installed, as identified by the Federal Communications Commission for purposes of its Broadband DATA Maps.



(3)        Community anchor institution or CAI. – A school, library, health clinic, health center, hospital or other medical provider, public safety entity, institution of higher education, public housing organization, or community support organization that facilitates greater use of broadband service by vulnerable populations, including, but not limited to, low‑income individuals, unemployed individuals, and aged individuals.



(4)        Department. – The Department of Information Technology.



(5)        Eligible location. – An unserved or underserved BSL not located in a protected area or a CAI where qualifying broadband service is not available.



(6)        Eligible project. – A discrete and specific project intended to construct and deploy qualifying broadband service to an eligible location or to a combination of eligible locations. A project may constitute a single unserved or underserved BSL, or a grouping of BSLs in which not less than eighty percent (80%) of BSLs served by the project are unserved or underserved locations, provided that the Office may not award funding under this section to construct and deploy infrastructure for the provision of qualifying broadband service to any served BSL.



(7)        Extremely high cost per location threshold. – A BEAD subsidy cost per location above which the Office may decline to select a proposal if use of an alternative technology meeting the BEAD program's technical requirements is necessitated by the fact that selection of an eligible project proposing to provision service via end‑to‑end fiber‑optic facilities to each end‑user premises would be cost prohibitive. The Office will develop a methodology for calculating this threshold in a manner that maximizes use of the best available technology while ensuring that the program can, at a minimum, meet the prioritization requirements. The Office will post the methodology for public comment before implementation. The Office shall not, unless it is determined that it does not have sufficient funding to select each highest‑scoring application in the initial round described in this section, utilize the extremely high cost per location threshold in the initial round.



(7a)      FCC. – The Federal Communications Commission.



(8)        High‑cost outlier. – Any unserved or underserved location that an applicant identifies as a risk to disproportionately affect the cost of an applicant's project budget.



(9)        IIJA. – Infrastructure Investment and Jobs Act (P.L. 117‑58).



(9a)      Infrastructure. – Facilities, equipment, materials, and structures that an entity installs either for its core business or public enterprise purposes. Examples include, but are not limited to, copper wire, coaxial cable, optical cable, loose tube cable, communication huts, conduits, vaults, patch panels, mounting hardware, poles, generators, battery and cabinet, network nodes, network routers, network switches, microwave relay, microwave receivers, site routers, outdoor cabinets, towers, easements, rights‑of‑way, and buildings or structures owned by the entity that are made available for location or collocation purposes.



(10)      Infrastructure costs. – Costs related to the construction of broadband infrastructure for the extension of broadband service for an eligible project, including installation, acquiring or updating easements, backhaul infrastructure, and testing costs. The term also includes engineering and any other costs associated with securing a lease to locate or collocate infrastructure on public or private property or structures, but not including the actual monthly lease payment. The term does not include overhead or administrative costs.



(11)      Low‑cost broadband service option. – A broadband service offered to low‑income households that meets the eligibility requirements for the federal Affordable Connectivity Program, or similar replacement program, in the project area for at least the length of time defined by federal requirements. A low‑cost broadband service option must be made available and include the following elements:



a.         Provide typical download speeds of at least 100 Mbps and typical upload speeds of at least 20 Mbps.



b.         Provide typical latency measurements of no more than 100 milliseconds.



c.         Not be subject to nongovernmental imposed surcharges and be subject only to the same acceptable use policies to which subscribers to all other broadband internet access service plans offered to home subscribers by the participating subgrantee must adhere.



d.         Shall be offered at a price that does not exceed the highest price listed in the FCC's 2024 Urban Rate Survey data for Fixed Broadband Service for a service offering in North Carolina that provides a download speed of 100 Mbps, upload speed of 20 Mbps, and an unlimited capacity allowance. The price may be adjusted by the subgrantee based on the Consumer Price Index, as defined by the United States Bureau of Labor Statistics, beginning with an adjustment in the first new calendar year after the date of enactment of this section.



e.         In the event the provider later increases the speeds of one of its low‑cost plans it will permit Eligible Subscribers that are subscribed to that plan to upgrade to those new speeds at no more than a commensurate change in cost.



(12)      Multi‑dwelling units (MDUs). – Multiple separate residential units within a single or several buildings.



(13)      NTIA. – The National Telecommunications and Information Administration of the United States Department of Commerce.



(14)      Office. – The Broadband Infrastructure Office in the Department of Information Technology.



(15)      Protected areas. – BSLs subject to an enforceable commitment as defined in the NTIA Notice of Funding Opportunity or where a broadband service provider has been designated to receive funds through other State‑ or federally funded programs designed specifically for the deployment of qualifying broadband service if such funding is intended to result in construction of broadband to the location within 18 months or for the duration of the federal funding program, or if the broadband service provider is otherwise in good standing with the funding agency's regulations governing the funding program. Any CAI where a private provider submits documentation satisfactory to the Department that such provider currently offers broadband service that will be scalable to a qualifying broadband service after the conclusion of the challenge process shall be also considered protected. Upon submission of documentation satisfactory to the Office, a protected area shall remain protected until project completion.



(16)      Qualifying broadband service. – A reliable broadband service meeting the following criteria:



a.         To a location that is not a CAI with a speed of not less than 100 Mbps for downloads and not less than 20 Mbps for uploads.



b.         To a CAI with a speed of not less than 1 Gbps for downloads and uploads.



(17)      Reliable broadband service. – Terrestrial‑based broadband service (i) with ninety‑five percent (95%) of latency measurements during testing windows falling at or below 100 milliseconds round‑trip time and (ii) which is designed to ensure that network outages should not exceed, on average, 48 hours over any 365‑day period except in the case of natural disasters or other force majeure occurrences. Locations served exclusively by satellite, terrestrial fixed wireless services utilizing entirely licensed spectrum, using a hybrid of licensed and unlicensed spectrum, or a technology not specified by the FCC for purposes of its Broadband DATA Maps, do not meet the definition of reliable broadband service and will be considered unserved for the purposes of determining eligible locations.



(18)      Secretary. – The Secretary of Information Technology.



(19)      Subgrantee. – An eligible recipient who receives BEAD funds for an eligible project.



(20)      Underserved. – A BSL that has access to reliable broadband service equal to or greater than 25 Mbps download and 3 Mbps upload but less than 100 Mbps download and 20 Mbps upload. Unless otherwise determined by the Department based on competent findings of fact, locations that the FCC's Broadband DATA Maps show to have available qualifying broadband service delivered via (i) DSL or (ii) terrestrial fixed wireless services utilizing entirely licensed spectrum, or using a hybrid of licensed and unlicensed spectrum, shall be considered underserved for the purpose of determining eligible locations.



(21)      Unserved. – A BSL that does not have access to reliable broadband service with transmission speeds of at least 25 Mbps download and at least 3 Mbps upload.



SECTION 10.2.(b)  Consistency With Federal Law. – Except as defined in this section, terms in this section shall have the meaning prescribed to them in the IIJA and in the Notice of Funding Opportunity for the BEAD Program (BEAD NOFO) published by NTIA on May 13, 2022, including any subsequent guidance issued by NTIA with respect to the program after the issuance of the BEAD NOFO. In the event of any actual conflict between this section and legal requirements contained in the IIJA, the provisions of the IIJA shall take precedence. Should any instances of actual conflict arise, the Department shall report to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division any actions taken to conform with federal law.



SECTION 10.2.(c)  Consistency With State Policy. – Consistent with the policy of the State, the Office shall not prescribe the rates of service which applicants may deliver, nor shall the Office indirectly regulate the rates of service which applicants may deliver by affording any preference or differentiated scoring weight based on the specific rate of service which an applicant may deliver. The Office shall not make mandatory any optional conditions contained in Section IV.C.1.e. of the BEAD NOFO.



SECTION 10.2.(d)  GREAT 3.0 Fund. – The Growing Rural Economies with Access to Technology for Broadband Equity, Access, and Deployment Fund (GREAT 3.0 Fund) is established as a special revenue fund in the Department of Information Technology. The Secretary may award subgrants from the GREAT 3.0 Fund to eligible recipients for eligible projects. The State shall not be obligated for funds committed for project costs from the GREAT 3.0 Fund in excess of those sums appropriated by the General Assembly to the GREAT 3.0 Fund. The funds shall be used by the eligible recipient to pay for infrastructure costs associated with an eligible project. State and federal funds appropriated to this Fund shall be considered an information technology project within the meaning of G.S. 143C‑1‑2. The grants shall be considered fixed amount subawards for purposes of the federal requirements within the meaning of the Policy Notice on Tailoring the Application of the Uniform Guidance to the BEAD Program issued by the NTIA. The Office shall further make available to awardees all options available under the BEAD Letter of Credit Waiver issued by NTIA.



SECTION 10.2.(e)  Priority. – The Office shall prioritize projects proposed to address the following in order:



(1)        Unserved BSLs.



(2)        Underserved BSLs.



(3)        Community anchor institutions.



SECTION 10.2.(f)  Project Proposals; Use of Funds. – The Office may seek proposals to serve unserved BSLs, underserved BSLs, and community anchor institutions collectively or separately, provided that it prioritizes awarding projects that address, at minimum, all unserved BSLs. Once the Office reports that projects will address all unserved BSLs, it shall prioritize projects that address, at minimum, all underserved BSLs. If the Department has entered into subgrant agreements for deployment of service to all unserved and underserved locations in the State, it may use any remaining funds in the GREAT 3.0 Fund for digital literacy and awareness or other purposes consistent with nondeployment activities described in the BEAD NOFO.



SECTION 10.2.(g)  Challenge Process. – The Office shall develop and implement a formal challenge process that conforms with the published regulations and guidelines of the BEAD program, including the requirement that challenges based upon speed tests must be conducted and submitted in conformance with the specifications of the NTIA's speed test guidance and may not be submitted by an individual subscriber. In developing the challenge process, the Office shall solicit input from stakeholders and consider the adaptability of the challenge process to fit existing State broadband grant programs and all applicable federal requirements. The challenge process shall be open to submissions from internet providers, county and municipal government entities, and community anchor institutions, and shall establish procedures that allow a period of at least 30 calendar days of the opening of the challenge window to submit challenges, and a period of at least 30 calendar days from notification of any challenge to the classification of a location determined to be valid by the Office during the challenge phase for the submission of rebuttal evidence. Prior to selecting subgrantees, the Office shall publish a statewide map indicating eligible locations that may be included in an eligible project.



SECTION 10.2.(h)  Prequalification. – The Office shall develop a prequalification process to identify potential subgrantees with the financial, managerial, operational, and technical capacity to complete an eligible project. The Office shall prequalify broadband service providers based on the minimum eligibility criteria in the GREAT 3.0 program. Information submitted by a broadband service provider as part of the prequalification process may be considered during the subgrantee selection process. Information contained in an application that is identified as proprietary by an applicant for a subgrant pursuant to the prequalification process shall not be considered a public record.



SECTION 10.2.(i)  Applications. – The Office shall develop a subgrantee selection process that shall be administered in multiple rounds. Applications for subgrants will be submitted at times designated by the Office and will include, at a minimum, the following information:



(1)        The identity of the applicant and its qualifications and experience with broadband deployment and administration of federal subgrants.



(2)        The total cost and duration of the proposed project.



(3)        The amount to be funded by the applicant. The applicant shall fund a minimum of twenty‑five percent (25%) of the cost of the project unless the project is in an NTIA‑defined high‑cost area or a waiver is granted pursuant to the BEAD Program guidelines as set forth by NTIA.



(4)        A list of the eligible locations that will have access to qualifying broadband service as a result of the project.



(5)        The proposed construction time line not to exceed four years, unless the Department extends the four‑year deadline if (i) the subgrantee has a specific plan for use of the grant funds, with project completion expected by a specific date not more than one year after the four‑year deadline; (ii) the construction project is underway; or (iii) extenuating circumstances require an extension of time to allow the project to be completed.



(6)        A description of the services to be provided, including the proposed upload and download broadband speeds to be delivered.



(7)       A description of proposed cost tiers available to customers upon completion of the proposed project.



(8)       A description of the applicant's proposed low‑cost broadband service option applicable to eligible subscribers in BEAD‑funded areas. The Office may not impose additional requirements on qualifying low‑cost service options as a condition of grant eligibility.



(9)        Technology type of the proposed service.



(10)      Any other information or supplementary documentation requested by the Office. The Office shall ensure that subgrant applications contain sufficient information to allow the Office to reasonably evaluate subgrantees' ability to comply with all program requirements, including all subgrantee qualifications and conditions required under federal law.



SECTION 10.2.(j)  Competitive Subgrantee Selection Process. – The Office shall implement a competitive subgrantee selection process that conforms with published regulations and guidelines under the BEAD Program  under the IIJA. Applications receiving the highest score shall receive priority status for the awarding of subgrants pursuant to this section. As a means of breaking a tie for applications receiving the same score, the Office shall give priority to the application proposing to serve the highest number of new unserved and underserved locations. Applications shall be scored on an objective 100‑point scale that is published prior to the submission of applications for subgrants. The Office shall determine whether or not a subgrantee has the capacity to perform multiple projects and shall not be required to award multiple projects to a prequalified subgrantee that has failed to demonstrate its ability to perform.



SECTION 10.2.(k)  Subgrant Award Agreements. – Applicants awarded subgrants pursuant to this section shall enter into an agreement with the Office. Selections are contingent until an agreement is executed. The agreement shall contain all of the elements outlined in subsection (i) of this section and any other provisions the Office may require, provided, however, the Department may not impose requirements or contract conditions requiring that broadband service be offered at a specific price or that otherwise constitutes rate regulation. The agreement shall contain a provision governing the time line, milestones, and minimum requirements and thresholds for disbursement of grant funds measured by the progress of the project or disbursed on any other basis that may be necessary to effectuate every option made available in the BEAD Letter of Credit Waiver issued by NTIA on November 1, 2023. If applicable, the agreement shall identify the amount of matching funds the subgrantee must contribute to the project. The Office shall monitor the project to ensure (i) that the subgrantee is making adequate progress towards project completion by the required deadline; (ii) compliance with all relevant and applicable federal, State, and local laws, rules, and regulations; and (iii) compliance with all NTIA guidelines for the BEAD Program and any guidelines developed by the Office.



SECTION 10.2.(l)  Letter of Credit. – The Office shall require a letter of credit or an alternative form of satisfactory performance security, such as a performance bond, from the subgrantee to secure the subgrantee's performance of its obligations under the grant contract consistent with the federal requirements.  The Office shall give full effect to the NTIA BEAD Letter of Credit Waiver as a means of enabling a subgrantee to satisfy the requirements of this subsection. Subject to further waiver from NTIA to the extent the same may be required, the Office shall permit an alternative means of satisfying the requirement of this subsection for a subgrantee that demonstrates that it has more than one hundred million dollars ($100,000,000) in telecommunications or electric plant in production in the State.



SECTION 10.2.(m)  Annual Report. – The Department of Information Technology shall submit an annual report to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division upon completion of each funding round. The report shall contain at least all of the following:



(1)        The number of subgrant projects applied for and the number of grant agreements entered into.



(2)        A time line for each subgrant agreement and the number of households and businesses expected to benefit from each agreement.



(3)        The amount of matching funds required for each agreement and the total amount of investment.



(4)        A summary of areas receiving subgrants that are now being provided broadband service and the advertised broadband speeds for those areas.



(5)        Any breaches of agreements, grant fund forfeitures, or subsequent reductions or refunds of matching funds.



(6)        Any recommendations for the GREAT 3.0 program, including better sources and methods for improving outcomes and accountability.



SECTION 10.2.(n)  Progress Report. – Upon completion of two rounds of subgrantee selection, the Department shall report to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division the following:



(1)        The number of remaining unserved and underserved locations in the State.



(2)        The amount of remaining funding for the GREAT 3.0 program.



(3)        The estimated amount of subgrant funding needed to award projects serving all remaining unserved and underserved locations in the State.



(4)        The amount of funding available for nondeployment activities.



SECTION 10.2.(o)  Retention of Funds. – In administering the IIJA for the BEAD Program, the Department may utilize up to one and one‑half percent (1.5%) of allocated BEAD grant funds for planning and administrative purposes.



SECTION 10.2.(p)  The State Controller shall establish a BEAD Reserve (Reserve) in the General Fund to maintain federal funds received from the IIJA for the BEAD Program. The State Controller shall transfer funds to the GREAT 3.0 Fund established in subsection (d) of this section only as needed to meet the appropriations set out in subsequent legislation. Funds reserved in the Reserve do not constitute an appropriation made by law, as that phrase is used in Section 7(1) of Article V of the North Carolina Constitution.



SECTION 10.2.(q)  The Department may utilize funds received for digital literacy from the federal Digital Equity Act of 2021 (P.L. 117‑58) in accordance with the North Carolina Digital Equity Plan approved by the NTIA, and the funds are hereby appropriated for that purpose.



SECTION 10.2.(r)  Section 38.4 of S.L. 2022‑74 is repealed.



SECTION 10.2.(s)  Section 38.10(p) of S.L. 2021‑180 reads as rewritten:



SECTION 38.10.(p)  This section is effective when it becomes law. Subsections (b) through (k) of this section expire December 31, 2024.



SECTION 10.2.(t)  This section becomes effective July 1, 2024.



 



part XI. General government



 



HFA/EMERGENCY RENTAL ASSISTANCE FUNDS



SECTION 11.1.  Notwithstanding any provision of law to the contrary, the Office of State Budget and Management shall transfer to the Housing Trust Fund in the Housing Finance Agency all remaining Emergency Rental Assistance 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, as amended, and any interest earned on those funds, Budget Code 23021, Budget Funds 214050 and 214051, an estimated sum of approximately fifty‑eight million five hundred ninety‑four thousand four hundred thirty‑three dollars ($58,594,433) in nonrecurring funds for the 2024‑2025 fiscal year to be used for eligible programs administered by the Housing Finance Agency. Projects under this section shall comply with the United States Department of the Treasury's Emergency Rental Assistance guidelines, and these funds are hereby appropriated for that purpose.



 



Remove VETERANS BURIAL RESIDENCY REQUIREMENT/VCGP FUNDS



SECTION 11.2.(a)  G.S. 65‑43 reads as rewritten:



§ 65‑43.  Definitions.



For purposes of this Article, the following definitions shall apply, unless the context requires otherwise:



…



(2)        A legal resident of a state means a person whose principal residence or abode is in that state, who uses that state to establish his or her right to vote and other rights in a state, and who intends to live in that state, to the exclusion of maintaining a legal residence in any other state.



(3)        A qualified veteran means a veteran who meets the requirements of sub‑subdivisions a. and b. of this subdivision:



a.         A veteran who served an honorable military service or who served a period of honorable nonregular service and is any of the following:



1.a.      A veteran who is entitled to retired pay for nonregular service under 10 U.S.C. §§ 12731‑12741, as amended.



2.b.      A veteran who would have been entitled to retired pay for nonregular service under 10 U.S.C. §§ 12731‑12741, as amended, but for the fact that the person was under 60 years of age.



3.c.      A veteran who is eligible for interment in a national cemetery under 38 U.S.C. § 2402, as amended.



b.         Who is a legal resident of North Carolina:



1.         At the time of death, or



2.         For a period of at least 10 years, or



3.         At the time he or she entered the Armed Forces of the United States.



SECTION 11.2.(b)  G.S. 65‑43.2 reads as rewritten:



§ 65‑43.2.  Proof of eligibility.



…



(b)        The survivors or legal representative of the deceased shall notify the funeral director that the deceased is to be interred in a veterans cemetery. The survivor or legal representative shall furnish the funeral director with documentary evidence of the veteran's honorable military service and evidence to establish that the veteran is a legal resident of North Carolina. service. The funeral director shall notify the superintendent of the nearest State veterans cemetery to arrange for the interment and convey to the superintendent all evidence to establish the veteran's eligibility.



SECTION 11.2.(c)  There is appropriated from the budgeted receipts from the United States Department of Veterans Affairs' Veterans Cemetery Grant Program to the Department of Military and Veterans Affairs the sum of three million five hundred eighty‑six thousand one hundred thirty‑six dollars ($3,586,136) in nonrecurring funds for the 2024‑2025 fiscal year to be used as follows:



(1)        Five hundred seven thousand one hundred fifty dollars ($507,150) for an expansion of columbarium cremation spaces at Eastern Carolina State Veterans Cemetery.



(2)        Seven hundred seventy‑one thousand seven hundred fifty dollars ($771,750) for an expansion of columbarium cremation spaces at Coastal Carolina State Veterans Cemetery.



(3)        Two million three hundred seven thousand two hundred thirty‑six dollars ($2,307,236) for the expansion of burial and cremation spaces at Sandhills State Veterans Cemetery.



 



Office of State Fire Marshal Expenses



SECTION 11.3.  Of the funds appropriated to the Department of Insurance in this act, the Department shall allocate to the Office of the State Fire Marshal the recurring sum of four million eight hundred fifty thousand dollars ($4,850,000) for the 2024‑2025 fiscal year to support the operations of the Emergency Training Facility in Stanly County, including nine full‑time employees.



 



part XII. salaries and benefits



 



UPDATED SALARY‑RELATED CONTRIBUTIONS/ADDRESS FUNDING REQUIREMENTS for the NC NATIONAL GUARD PENSION FUND



SECTION 12.1.(a)  Section 39.26(c) of S.L. 2023‑134 reads as rewritten:



SECTION 39.26.(c)  Effective July 1, 2024, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 2024‑2025 fiscal year for teachers and State employees, State law enforcement officers (LEOs), the University and Community Colleges Optional Retirement Programs (ORPs), the Consolidated Judicial Retirement System (CJRS), and the Legislative Retirement System (LRS) are as set forth below:



Teachers         State                ORPs              CJRS              LRS



and State        LEOs



Employees



Retirement                   16.79%            16.79%              6.84%       37.00%35.96%  22.00%19.32%



Disability                       0.13%              0.13%              0.13%              0.00%              0.00%



Death                             0.13%              0.13%              0.00%              0.00%              0.00%



Retiree Health                6.99%              6.99%              6.99%              6.99%              6.99%



NC 401(k)                      0.00%              5.00%              0.00%              0.00%              0.00%



 



Total Contribution



Rate                             24.04%            29.04%            13.96%       43.99%42.95%    28.99%26.31%



The rate for teachers and State employees and State law enforcement officers includes one one‑hundredth percent (0.01%) for the Qualified Excess Benefit Arrangement.



SECTION 12.1.(b)  Part XXXIX of S.L. 2023‑134 is amended by adding a new section to read:



ADDRESS INCREASED FUNDING REQUIREMENTS/NORTH CAROLINA NATIONAL GUARD PENSION FUND



SECTION 39.26A.(a)  Notwithstanding any provision of law or the Committee Report described in Section 43.2 of this act to the contrary, funds appropriated in this act to the Department of State Treasurer are increased by the recurring sum of one million one hundred twenty thousand nine hundred forty‑nine dollars ($1,120,949) for the 2024‑2025 fiscal year and are to be used for the State's contribution to the North Carolina National Guard Pension Fund (Budget Code 13412, Budget Fund 100903) to match the actuarially determined contribution amount.



SECTION 39.26A.(b)  Notwithstanding any provision of law or the Committee Report described in Section 43.2 of this act to the contrary, funds appropriated in this act to the Administrative Office of the Courts in Budget Code 12000 for the State's contribution for members of the Consolidated Judicial Retirement System are reduced by the recurring sum of nine hundred sixty‑two thousand six hundred eighty‑seven dollars ($962,687) for the 2024‑2025 fiscal year.



SECTION 39.26A.(c)  Notwithstanding any provision of law or the Committee Report described in Section 43.2 of this act to the contrary, funds appropriated in this act to the Office of Indigent Defense Services in the Administrative Office of the Courts in Budget Code 12001 for the State's contribution for members of the Consolidated Judicial Retirement System are reduced by the recurring sum of sixty‑one thousand two hundred forty‑six dollars ($61,246) for the 2024‑2025 fiscal year.



SECTION 39.26A.(d)  Notwithstanding any provision of law or the Committee Report described in Section 43.2 of this act to the contrary, funds appropriated in this act to the General Assembly in Budget Code 11000 for the State's contribution for members of the Legislative Retirement System are reduced by a recurring sum of ninety‑seven thousand sixteen dollars ($97,016) for the 2024‑2025 fiscal year.



 



part XIII. CAPITAL [Reserved]



 



part XIV. transportation



 



RANDOLPH COUNTY MEGASITE TRANSPORTATION IMPROVEMENT FUNDS



SECTION 14.1.  The funds transferred from the Economic Development Project Reserve to the Department of Transportation for the 2024‑2025 fiscal year pursuant to Section 2.2(d) of this act shall be used to expand highway infrastructure and complete work on roads serving the megasite industrial park in Randolph County.



 



PART XV. FINANCE [Reserved]



 



PART XVI. MISCELLANEOUS



 



STATE BUDGET ACT APPLIES



SECTION 16.1.  The provisions of the State Budget Act, Chapter 143C of the General Statutes, are reenacted and shall remain in full force and effect and are incorporated in this act by reference.



 



APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY



SECTION 16.2.  Except where expressly repealed or amended by this act, the provisions of any legislation enacted during the 2023 Regular Session of the General Assembly affecting the State budget shall remain in effect.



 



MOST TEXT APPLIES ONLY TO THE 2024‑2025 FISCAL Year



SECTION 16.3.  Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2024‑2025 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2024‑2025 fiscal year.



 



EFFECT OF HEADINGS



SECTION 16.4.  The headings to the Parts, Subparts, and sections of this act are a convenience to the reader and are for reference only. The headings do not expand, limit, or define the text of this act, except for effective dates referring to a Part or Subpart.



 



SEVERABILITY CLAUSE



SECTION 16.5.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part so declared to be unconstitutional or invalid.



 



EFFECTIVE DATE



SECTION 16.6.  Except as otherwise provided, this act becomes effective July 1, 2024.





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