May 17, 2024

Updated budget surplus news brought a flurry of discussion this week. The previously estimated $1.4 billion state revenue surplus was lowered by over $400 million bringing the projected total to roughly $980 million through 2024-25. This updated report came only a few days after the universal Opportunity Scholarship bill (HB 823 Eliminate School Choice Program Waitlists) passed the Senate. The bill sets aside an additional $463.5 million ($215.5 million of that is recurring beginning in 2024-25) for the upcoming school year on top of the previously budgeted $191.5 million. By 2032-33, the projected amount allotted for taxpayer-funded private school vouchers will increase from $520.5 million per year to at least $825 million per year if this bill becomes law.

House Speaker Tim Moore (R-Cleveland) recently told reporters that the lowered projected surplus would impact how his chamber will navigate the Senate’s proposed funding for private school vouchers in the upcoming school year. “Because once we got those initial numbers, we went ahead and started baking in some of the proposed funding, so when you pull that $400 million, it certainly made an impact,” he said. According to Moore, the House supports the funding but will not vote until money can be found outside the projected surplus. Moore did not say where the funding would come from but did mention that it won’t be connected to possible legislation surrounding video gambling machines.

While fully funding Opportunity Scholarships regardless of household income remains a priority for Speaker Tim Moore and Senate leader Phil Berger (R-Rockingham), there are staunch supporters of private school vouchers who are now voicing concerns with the Senate’s version of HB 823. The president of the conservative Thomas B. Fordham Institute, Michael Petrilli, notes that finding a balance between educational freedom, fairness, and fiscal responsibility should shape the conversations surrounding these vouchers. Petrilli pointedly asks, “Must the expansion of school choice result in windfalls for America’s wealthiest families, particularly those that already send their children to fancy private schools? Especially when that means blowing big holes in state budgets?” To read more on Petrilli’s viewpoint, click here.

Speaking of spending plans, private negotiations on Jones Street continue between House and Senate budget writers. The NCSBA Governmental Relations team is most recently hearing that the budget adjustments may be released as soon as mid-June.

Read on to learn more about bill action and education news this week.

Bills Signed by the Governor:
SB 508 (S.L. 2024-1): 2023 Budget Tech/Other Corrections (Primary Sponsor: Senator Ralph Hise, R-Mitchell)

This 60-page bill became law with no changes since the legislative update we provided last week. The bill passed 110-6 in the House and 39-2 in the Senate.
K-12 portions of the bill include:
- SECTION 1.8 Authorizes Stokes County Schools (SCPS) to submit an application for a needs-based capital grant without approval from the county board of commissioners. Authorizes SCPS to provide matching funds and to enter into any agreements with a grant award.
- SECTION 2.4 Reinstates the reporting requirement for the Transportation Reserve Fund for Homeless and Foster Children.
- SECTION 2.8A.(c,g,h) Establishes a definition for a school resource officer (SRO), which includes being assigned to one or more schools at least 20 hours/week for more than 12 weeks per calendar year. Also requires SROs to comply with training requirements before a police chief or sheriff’s office can sign an agreement.
- SECTION 2.8C.(a) Modifies the Career Development Plan requirements in middle school.
- SECTION 2.8D.(a) Contractors hired by LEAs are eligible for certain bonuses during the pandemic regardless of the funding source.
- SECTION 2.14.(a) Clarifies that forgiveness criteria for the Teaching Fellows Program includes serving as a teacher in a qualifying license area.

Local Bills That Became Law:
HB 31 (S.L. 2024-2): Rowan-Salisbury Board of Educ. Partisan (Primary Sponsor: Representative Harry Warren, R-Rowan)

Passed the House 70-38.
Establishes a voter referendum for the November 2024 general election on making the Rowan-Salisbury Board of Education elections partisan.
If approved by Rowan County voters, the partisan elections become effective December 1, 2026.

Sent To House for Concurrence:
HB 834 Juvenile Justice Modifications (Primary Sponsors: Representatives Ted Davis Jr., R-New Hanover; Neal Jackson, R-Moore)

Passed the Senate 41-4.
SECTION 4.(b) Prohibits principals from having automatic suspension policies and requires them to make decisions on a case-by-case basis during a student’s pending delinquency status.

May 13, 2024 Headlines From the Weekly Report Include:
Department of Education (ED) Announces Increased Funding for Mental Health Services in School: On Thursday, May 9, the Biden-Harris Administration announced an increase in access to school-based mental health services across the nation. These services include: (1) higher investments in the ED’s School-Based Mental Health Services (SBMH) and Mental Health Service Professionals (MHSP) grant programs in the current Fiscal Year; (2) making further investments through the Bipartisan Safer Communities Act (BSCA); and (3) offering new mental health and wellbeing trainings and resources for schools and educators. ED also extended the application windows for both grant programs until May 31, 2024. Secretary of Education Miguel Cardona said, “We know students are more likely to access mental health support if it’s offered in schools. By nearly doubling funds this year for school-based mental health professionals, releasing additional funds to help advance a variety of mental health strategies, and providing additional training and resources, we are raising the bar for student wellbeing across the country.”

The following are recent news articles, reports, and press releases on state and national education-related issues.

State News
EducationNC: Education bills to follow in North Carolina
WFAE: Conservative school vouchers supporter says NC expansion goes too far
WRAL: Smaller surplus could lead to funding change for school vouchers, Moore says. Rebates and video gambling uncertain
News & Observer: ‘Out of hand.’ Add rules if NC private schools get $463M in new voucher money, CMS says
WFAE: CMS board eyes four-day weeks if the state won’t grant calendar flexibility
EducationNC: New charter school report shows growing student waitlist in North Carolina
State Affairs: NC Department of Instruction aims to simplify ESSER reporting for school units
WRAL: NC schools are struggling with segregation 70 years after Brown v. Board, new research shows
WUNC: Study finds North Carolina public schools are growing more segregated
EducationNC: Ask & Answer | What you need to know about school district fund balances
EducationNC: News roundup: Teacher pay rankings, pandemic recovery, special education funding, and more
WRAL: End-of-grade tests: Everything you need to know about these annual exams
News & Observer: NC school district removed books featuring gay parents. It now faces federal complaint.
News & Observer: Groups seeks legislation to punish NC public schools for books that some call ‘obscene’
EducationNC: Telehealth is helping this school district fight chronic absenteeism and improve mental health
EducationNC: The Innovation Project honors visionary leaders and districts
EducationNC: This Is Possible: A short documentary about bringing the world into the classroom
Border Belt Independent: SparkNC brings a new way of learning to Scotland High School
EducationNC: EdExplainer | This dashboard has everything you need to know about arts education in NC. Here’s how to use it
WFDD: Crossnore receives $5M pledge for expansion campaign
EducationNC: Stable child care in Watauga County would add 300 employees to the local economy, study finds
WFDD: Yadkin pilot program offers solution to child care shortages in rural counties
EducationNC: Perspective | Advocating for the well-being and advancement of afterschool professionals

National News
K-12 Dive: Education Department boosts FAFSA outreach efforts to close completion gap
K-12 Dive: After-school programs expect to scale down with pandemic aid ending
Bellwether: Leveling the Landscape: An Analysis of K-12 Funding Inequities Within Metro Areas
The74: Safety or Censorship: Congress Rushes to Pass Broad Child Online Protection Laws
Education Week: How K-12 Leaders Can Better Manage Divisive Curriculum and Culture War Debates
U.S. Department of Education Press Release: U.S. Department of Education’s Office for Civil Rights Reminds Schools of Their Legal Obligation to Address Discrimination Based on Shared Ancestry and Ethnic Characteristics
Associated Press: Day care prices aren’t getting better. So states are stepping in

House Pensions and Retirement
Tuesday, May 21, 11:00 AM
Click here to stream.
The bills being heard are H988: 2024 Retirement Technical Corrections, H989: Retirement Service Purchase Rewrite Part III, and H1020: Retirement Admin. Changes Act of 2024.

Currently, no schedules have been released for education-related committees next week. Check the NC General Assembly calendar page for updates. Stay informed throughout the week with our posts on X (formerly Twitter). Click here to follow and explore our page.

Bruce Mildwurf
Director of Governmental Relations
NC School Boards Association
bmildwurf@ncsba.org

Rob Black
Assistant Director of Governmental Relations
NC School Boards Association
rblack@ncsba.org

Silya Bennai
Advocacy Coordinator
NC School Boards Association
sbennai@ncsba.org