NCSBA MONTHLY LEGISLATIVE REPORT
DECEMBER 2016

NCSBA PUBLIC POLICY CONFERENCE

Time is running out to register for the fourth NCSBA Public Policy Conference. The conference will be held next Thursday and Friday, January 12-13, 2017, at the Pinehurst Resort in Pinehurst. Attached is the agenda.

To Register click here.

You can make your hotel reservations at the Pinehurst Resort one of two ways:

1. Click here
2. Call 844.738.5781

JT. LEGISLATIVE STUDY COMMITTEE ON SCHOOL-BASED ADMINISTRATOR PAY

The Joint Legislative Study Committee on School-Based Administrator Pay met on December 29 and approved recommendations to present to the General Assembly.

The recommendations are:

– Replace the current Principal salary schedule with dollar allotments (block grants) to LEAs for principal salaries (including a 3% pay raise) OR link principal pay to the Master’s teacher salary schedule plus a percentage to be determined.

– Provide bonuses to principals in low-wealth LEAs who achieve certain results across various categories. Principals in low-performing schools in the remaining school districts would also be eligible for the bonuses.

– Eliminate the Assistant Principal salary schedule and put assistant principals instead on the Master’s teacher salary schedule.

In addition, the draft report recommends that lawmakers institute a multi-year plan to significantly raise school administrator pay.

Click here to read the report and the findings and recommendations.

CAPITAL INFRASTRUCTURE BLUE RIBBON COMMISSION

The Blue Ribbon Commission to Study the Capital Infrastructure Needs of the State met on December 19 and approved a series of legislative recommendations. Some changes were made to the recommendations the Commission looked at last month. In that version of the report there was a recommendation that singled out local school boards for performance audits. This was met with some concern given that county commissioners are also involved in local school funding. The recommendation now says that all local governmental units, including school boards, should be required to have performance audits. In addition, there is also a recommendation that training programs for local governments, including school boards, should be expanded to ensure capital improvement projects involving new building construction or capital improvements take into consideration the project’s long and short impact on the unit’s annual budget.

Click here to read the final report.

SCHOOL FUNDING FORMULA STUDY

A draft bill was recommended to the legislature this month that would create a Task Force to further examine a new method of funding K-12 public schools. The bill was put forward by the General Assembly’s Program Evaluation Division. The Task Force created by this recommended bill would study a method of formula that allocates a base amount of funds per pupil and then adds additional money to that base according to certain student characteristics (special ed, etc.). The Task Force would study various weighted student models and develop one feasible for NC.

Click here to read the funding formula study upon which this legislative recommendation is based.

SPECIAL SESSIONS

The General Assembly convened three special sessions in December, each of which had notable activity for public schools. These sessions, combined with two special sessions held earlier in the year, made for five total special sessions in 2016.

Special Session 3

This session was called to pass a disaster relief bill for those impacted by Hurricane Matthew. Section 5.7 of this bill gave some calendar relief to those districts impacted. It provides that LEAs that had to close school for three or more consecutive days in October 2016 due to Hurricane Matthew only have to make up two of those days.

Special Session 4

K-3 Class Sizes

NCSBA looked at this special session as a good chance to try to get the K-3 class size issue addressed but also went in well aware that a fix was unlikely to pass. Though a long shot, the bill nonetheless ended up moving further than anticipated. Assuming it would not pass, NCSBA had a couple other goals in pushing this during the special session. The primary goal was to educate legislators and make them aware of the urgency of the issue. We are fearful about the following three things because the issue was not resolved during this special session.
• The issue might not get resolved at all, leaving districts to have to equalize average and funded K-3 class sizes starting next school year.
• There might not be a resolution on this issue until as late as June or July. This would push the uncertainty out into the period when districts are already developing and getting their budgets approved.
• With several budget constraints looming in the next session, the General Assembly could instead return to the funding allotment ratios of 1:18 for grades 1-3. This is not unprecedented in that they increased allotment ratios by 1 in 2013.
State Board of Ed and State Superintendent Powers

Lawmakers did pass HB 17, an omnibus bill to restrict gubernatorial powers in a number of areas. The bill also took several powers away from the State Board of Education (all but two of whom are gubernatorial appointees) and gave those powers to the new incoming Superintendent of Public Instruction, Mark Johnson. The move angered State Board Chairman Bill Cobey, who called the shift an attempt to “diminish the board’s constitutional authority.” The Board has chosen to file a lawsuit to challenge the legislation. A temporary restraining order (TRO) was subsequently issued to prevent enforcement of the provision of HB 17 transferring the Board’s powers. That TRO will be in place until the case can be heard by a three-judge panel on whether to grant a permanent injunction. The three judges making up the panel to hear this case are Judge Forrest Donald Bridges, Judge James F. Ammons Jr., and Judge Martin B. McGee.

Special Session 5

There was also a special session called for the purpose of repealing House Bill 2. Lawmakers adjourned without repealing the legislation, which means that under state law local school boards are still required to maintain single-gender bathrooms and changing facilities.

Leanne E. Winner
Director of Governmental Relations
N.C. School Boards Association
(919)747-6686 direct dial

Bruce Mildwurf
Associate Director of Governmental Relations
N.C. School Boards Association
(919) 606-3916 mobile

Joint Legislative Study Committee on School-Based Administrator Pay

The Joint Legislative Study Committee on School-Based Administrator Pay met on November 28.  The Committee heard from a number of experts and stakeholders.  Presenters included:

• Steve Tozer, Prof in Educational Policy Studies; University of Illinois at Chicago. Click here for presentation materials.
• Andy Baxter, Vice President, Educator Effectiveness; Southern Regional Education Board. Click here for presentation materials.
• Brenda Berg, President and CEO; Best NC. Click here for presentation materials.
• L. “Buddy” Collins, Vice Chair; North Carolina State Board of Education.
• Shirley Prince, Executive Director; North Carolina Principals and Assistant Principals Association. Click here for presentation materials.

The panel supported across the board increases in base pay for principals.  Committee co-chair, Senator Jerry Tillman (R-Randolph) said the final plan would likely include an increase of at least 5% along with opportunities for bonuses.  Sen. Tillman indicated the pay package would be a provision in the 2017-18 State budget.  The committee is expected to meet next sometime in December to discuss final recommendations.

Capital Infrastructure Blue Ribbon Commission

The Blue Ribbon Commission to Study the Capital Infrastructure Needs of the State met on November 14 and reviewed a series of draft recommendations to submit to the 2017 General Assembly.  The most notable recommendation of the group is Recommendation #3 which reads “Expand training programs for local governments and require performance audits of school boards to ensure that local entities are utilizing existing assets and planning for future expansion in the most efficient manner.”  The wording of this recommendation in singling out local school boards for performance audits generated some concern from some commission members who noted that county commissioners are also involved in local school funding.  The recommendation will be reworded before coming back before the commission in December.  Click here to read the entire set of draft recommendations.

School Funding Formula Study

The General Assembly’s Program Evaluation Division released a study of how K-12 public schools are funded at the State level.  The study found that the existing allotment formulas are inefficient and overly complex.  It recommends that lawmakers either transition to an entirely new system of funding public schools using a method called a weighted student formula OR take steps to fix problems with the current allotment formulas.

At its next meeting, the Joint Legislative Program Evaluation Oversight Committee is expected to discuss recommending legislation to create a study committee that would further examine the idea of replacing current allotment formulas with a per-student model.

Click here to read the entire study.

2016 Election Results

The 2016 election was held on November 8.  The General Assembly’s composition will largely remain the same in 2017.  There will be 74 Republicans in the House, the same number as 2015-16, with 46 Democrats.  In the Senate, Republicans picked up one seat and will have a 35-15 majority.  However, the numbers could change as soon as next year as a federal court has ruled that State lawmakers must revise legislative districts by March 15, 2017, and hold new elections for the General Assembly by the end of 2017.  This is a follow up to a ruling over the summer finding that several of the current legislative districts were unconstitutionally racially gerrymandered.  The ruling to redraw the districts and hold a special election next year has been appealed to the US Supreme Court.  Click here to read more about that story.

There were 19 school board members elected to the General Assembly- 14 in the House and 5 in the Senate.  Attached find a full list of the school board members elected to the General Assembly.

NCSBA Public Policy Conference

Register now for the fourth NCSBA Public Policy Conference, scheduled for January 12-13, 2017, at the Pinehurst Resort in Pinehurst.  Attached is a draft agenda for the conference.

To Register click here.  You can make your hotel reservations at the Pinehurst Resort with a special discounted group rate one of two ways:

1. Click here and use Group Code 60158.
2. Call 844.738.5781 and ask for the NCSBA Public Policy Conference group rate.

   *Note that the deadline for getting the discounted Group Rate at the hotel is December 12 at 5:00 PM.

Leanne E. Winner
Director of Governmental Relations
N.C. School Boards Association
(919)747-6686 direct dial

Bruce Mildwurf
Associate Director of Governmental Relations
N.C. School Boards Association
(919) 606-3916 mobile

NCSBA Monthly Legislative Report

October 2016

Education Strategy and Practices

The House Select Committee on Education Strategy and Practices met on October 18.  The following pertinent presentations were given at this meeting.

An experimental new method of learning that is starting to pop up around the country is called Competency Based Learning.  Dr. Michelle Soler, Director of Competency Based Education and Assessment at UNC, discussed the concept of competency-based learning and how it differs from other learning models.  Dr. Soler touted it as a good thing that NC lawmakers should consider adopting, but did not give any specifics on how to implement it across the state in a workable manner.  In addition to this presentation before NC lawmakers, we are starting to see an increasing number of presentations on competency-based learning in front of other groups such as BEST NC and the Foundation for Excellence in Education.  NCSBA will have a presentation on this topic at the upcoming Public Policy Conference in January.  Click here to register for the conference.
Presentation Materials:  Click here

EVAAS and how NC uses analytics in education was discussed by Emily Baranello, Vice President, Education Practice at SAS and Jennifer Bell, Senior Education Specialist, State and Local Government, SAS.
Presentation Materials:  Click here and here

A presentation on how High School start times impact student achievement was given by Dr. Kevin Bastian, Director, Teacher Quality Research Initiative, Education Policy Initiative at Carolina and Dr. Sarah Fuller, Research Assistant Professor, Education Policy Initiative at Carolina.  The following research findings were discussed:

• Little evidence of later start times impacting EOC scores.
• Some evidence that later start times, particularly after 8:30am and for economically-disadvantaged students, predict higher ACT scores.
• Robust evidence that later start times predict absence, suspension, and course grades results for economically-disadvantaged students.

The presenters also talked about several questions/concerns to think about for districts that might want to look into later High School start times.  Those questions/concerns included how later High School start times might impact elementary and middle schools in the district and getting adequate buy-in from local stakeholders.
Presentation Materials:  Click here

Dr. Kathryn Marker, Associate Director for K-12 Programs, State Education Assistance Authority, talked about the special education school voucher program.
Presentation Materials:  Click here

A presentation on assessing students with disabilities was given by DPI staff.

A background and history of the 12.5% per district cap on supplemental funding for students with disabilities was given.  The presentation also discussed the fiscal implications of possibly eliminating the cap.
Presentation Materials:  Click here

Joint Legislative Study Committee on School-Based Administrator Pay

The Joint Legislative Study Committee on School-Based Administrator Pay met on October 24.  The Committee received presentations on the following pertinent topics:

A review of the current school-based administrator salary schedule and recent notable changes to the schedule was given by Alexis Schauss, Director of School Business, DPI.
Presentation Materials:  Click here and here

Timothy Hale, Fiscal Analyst, General Assembly’s Fiscal Research Division discussed important considerations lawmakers should consider in thinking about reforming or restructuring the school-based administrator salary schedule.  The proposal reviewed by Mr. Hale would do away with set salary schedules for principals and distribute money for principal pay to school districts through block grants.
Presentation Materials:  Click here and here

There was also a panel and committee discussion involving the following participants:

• Dr. Stephen Gainey, Superintendent Randolph County Schools;
• Dr. Beverly Emery, Superintendent Winston-Salem/Forsyth County Schools;
• Dr. Frank Till, Superintendent Cumberland County Schools;
• Dr. Pascal Mubenga, Superintendent Franklin County Schools;
• Katherine Joyce, Executive Director, NC Association of School Administrators;
• Leanne Winner, Director of Governmental Relations, NC School Boards Association.

The panel discussed the block grant proposal and unanimously voiced concerns about the difficulties and inequities a block grant allocation for principal pay could cause.  NCASA and NCSBA representatives acknowledged problems with the current pay structure for school administrators but talked about the need to keep a base salary schedule for principal pay instead of moving to a block grant while reforming the schedule so it works better for school districts.  A redesigned schedule should be accompanied by a layer of some district-flexible incentives to address each LEA’s specific challenges in principal recruitment and retention.

Dr. Till noted the challenges scrapping the principal salary schedule might create for large school districts, where it could be difficult to negotiate salaries with all LEA principals.

Capital Infrastructure Blue Ribbon Commission

The General Assembly’s Blue Ribbon Commission to Study the Capital Infrastructure Needs of the State met on October 25.  The Committee discussed the following pertinent topics:

A review of the NC Capital Improvement Program was given by staff members from the Office of State Budget and Management.

Election Materials

The 2016 election will be held on November 8.  NCSBA has created two lists for you to help you in looking at election night returns.  Please find those lists in the first attached document.  The first list shows former/current school board members who are running for State House and Senate, including incumbent legislators.  The second list, below the first, is a review of key General Assembly races to watch based on analysis and research by outside groups that track legislative races.

Public Policy Conference

The fourth Public Policy Conference is slated for January 12-13, 2017 at the Pinehurst Resort in Pinehurst.  Attached is a draft agenda for the conference.  We are still working on securing a couple more presentations.

To Register click here.  You can make your hotel reservations at the Pinehurst Resort with the special conference group rate one of two ways:

1. Click here and enter Group Code 60158.
2. Call 844.738.5781 and ask for the NCSBA Public Policy Conference group rate.

Leanne E. Winner
Director of Governmental Relations
N.C. School Boards Association
(919)747-6686 direct dial

Bruce Mildwurf
Associate Director of Governmental Relations
N.C. School Boards Association
(919) 606-3916 mobile

Bryan Holloway
Associate Director of Governmental Relations
N.C. School Boards Association
(919)747-6677 direct dial

Adjournment

Lawmakers are wrapping up the 2016 session. They are finalizing legislative work and are expected to end the 2016 session today.

2016-17 Budget

A compromise budget for the 2016-17 fiscal year was released to the public on Monday. The Senate has passed the budget. The House gave final approval today and will be sending the budget to the Governor.

The biggest provision in the budget for public schools is an average 4.7% salary increase for teachers. This is closer to the House proposal than the Senate’s (6.7%). In addition, the teacher salary schedule will restore annual step increases for teachers in years 0-14. Once a teacher reaches year 15, he/she will be locked into the same salary for the next 10 years. The provision will raise average teacher salaries to over $50,000 in 2016-17 and $55,000 over the next three years. School administrators will receive a step increase and a 1.5% increase to base salaries at each step. Noncertified school personnel will also receive a 1.5% salary increase. School administrators and noncertified personnel will also receive a one-time 0.5% bonus. Below are the notable items that were included and not included in the compromise budget.

NOT Included in the Compromise Budget:

The provision to restrict the definition of year-round schools was NOT included in the compromise budget. In its place is a requirement for all local boards of education to report to the legislature about the start and end times for their schools.

No funding was appropriated for the Early College High Schools that requested State funding for the 2016-17 school year.

Included in the Compromise Budget:

Opportunity Scholarship Voucher Program.  Doubles funding in 2016-17. Establishes a reserve fund to forward fund the program. Creates an automatic $10 million increase in appropriations each fiscal year after 2016-17 to be directed to the reserve fund over the next decade, topping out at $134.8 million in 2027-28.

Non-Teacher Merit Pay.  LEAs will be required to enact policies to award merit pay to non-educator employees. Non-educator employees would be school administrators, central office staff, and noncertified personnel other than teacher assistants. LEAs are to receive $17 million to distribute for the merit pay but it is unclear how the money is to be allocated.

Virtual Charter Pilots

• Increases the percentage of teachers who can reside out of NC from 10% to 20%.
• Retains 25% withdrawal rate cap.
• Requires additional categories of students to not be included in the withdrawal rate calculation: any student enrolled less than 30 days; students who move out of state; students who withdraw for a family, personal or medical reason.

ADM Growth.  $46.8 million to fully fund ADM growth.

Performance Pay for Grade 3 Teachers.  $10 million is set aside for a pilot program where third grade teachers are given salary supplements for achieving high growth scores on student reading assessments.  Half of the total set-aside would go to the teachers in the top 25% of statewide grade 3 reading growth scores and the other half would go to each LEA’s top 25% of grade 3 reading growth achievers.

Advanced Teaching Roles/Elevating Educators Act.  Establishes a three-year pilot program where 10 LEAs would experiment with models of differentiated pay for teachers linked to advanced teaching roles (new or additional roles and responsibilities). Supplements could be up to 30% above what is set for the teacher on the State salary schedule. The appropriation for this pilot is $1 million.

A-F School Performance Grades.  The 15-point grading scale is extended for another three years (it is scheduled to end with this year’s set of grades).

Lab Schools.  Each UNC school of education will be required to establish a laboratory school. The purpose of the lab schools would be to “improve student performance in local school administrative units with low-performing schools by providing an enhanced education program for students residing in those units and to provide exposure and training for teachers and principals to successfully address challenges existing in high needs school settings.”  These lab schools will operate similar to and be funded like charter schools.

Click here for the text of the compromise budget. Click here for the money report.

Achievement School District Bill Passes

HB 1080- Achievement School District, passed the Senate after a few amendments from the floor. The House then concurred in those changes and the bill is now on its way to the Governor for his signature. One amendment to the bill tightened the criteria for selecting a charter management organization to take over a school in the Achievement School District. Another amendment allows Charlotte-Mecklenburg to create an Innovation Zone among its Project LIFT schools and also include five low-performing schools. A few Senators tried to run amendments to prohibit their LEAs from having any schools transferred to the ASD but those amendments all failed.

The Governor has 30 days to sign or veto the bill. Please contact the Governor’s office and ask that he veto HB 1080.

Talking Points on HB 1080

• The ASD framework has not shown to be successful in other states that have experimented with similar measures, including Tennessee and Michigan.

• HB 1080 creates more bureaucracy and big government, yet another example of big brother knows best. The assumption at the heart of HB 1080 is that the low-performing school problem lies almost primarily with local administrators and staff when actually many times the problems run much deeper.

• Four actions were made permissible to North Carolina school districts for low-performing schools per the Race to The Top Grant provisions, of which one was to operate a low performing school like a charter. School districts have not implemented all of these available procedures.

• HB 1080 requires local school districts to maintain school buildings despite the fact the State has taken control of the campuses. Also the State Board would be making the final decision in a number of situations where the local board and the charter operator disagree over the need for a renovation or repair. This would put Raleigh in the position of dictating how local officials prioritize capital needs, almost certainly leading to conflict.
• The local school district will also continue to provide transportation for students to the school. Again, this is another responsibility the school district should not be required to maintain if the state assumes control of a school.
• This framework could cause a school districts to deal with challenging staffing issues.
• The criteria for putting a school into the ASD is based on a flawed grading system that only counts school growth as 20% of the grade.
• The bill tries to entice districts to transfer schools to the ASD by allowing them to create “Innovation Zones,” areas where they can operate schools with charter-like flexibility. This provision is a red herring because school districts already have the authority to apply to the SBE to operate some schools with charter-like flexibility and some have already utilized this option.

School Board Lawsuit Moratorium Removed

A measure to prohibit school boards from taking legal actions against county commissioners was removed from HB 561 by a conference committee. In its place, the conference committee agreed to language establishing a study to look at the process for settling local funding disputes. The study is to be conducted by the legislature’s Program Evaluation Division. Among the issues to be studied as part of this review are: examining school board and county commissioner fund balances; how school boards and county commissioners have used fund balances; historical use of the funding dispute process; an analysis of alternative ways for local school boards to get local funds.

The results of this study are due no later than May 1, 2017. Click here to read the compromise bill, which is on its way to the Governor.

Other Notable Bills

HB 100, which would cut off school capital funds for counties found to be noncompliant with immigration laws, and HB 3, which includes a constitutional amendment to reduce the income tax cap to 5.5%, both passed the Senate this week and were sent to House Rules.

SB 867 is a bill to require criminal background checks for teachers and other school personnel. It has gone through several changes and the most recent version was approved by the Senate Finance Committee this morning. Many of the concerns voiced by LEAs have been addressed in this latest version, which you can find here.

SB330 is a bill filed by Sen. Tom McInnis (R-Richmond) to require all local boards of education to adopt a policy governing change orders to any construction and repair work contracts. The bill outlines criteria that must be addressed in the policy. SB 330 has been signed into law.

HB 657, legislation to create two separate High School Math course tracks, is still in conference as of this morning. Click here to see the conferees.

HB 1074. This bill would require all LEAs to test drinking water in schools older than 30 years for the presence of lead. This bill has passed the House and has been sent to the Senate Health Committee.

Leanne E. Winner
Director of Governmental Relations
N.C. School Boards Association
(919)747-6686 direct dial

Bruce Mildwurf
Associate Director of Governmental Relations
N.C. School Boards Association
(919) 606-3916 mobile

Bryan Holloway
Associate Director of Governmental Relations
N.C. School Boards Association
(919)747-6677 direct dial

Achievement School District Bill Passes Committee

Legislation to require 5 of the lowest performing elementary schools to be transferred from their local school boards to for-profit charter management groups passed the Senate Education Committee this morning.  HB 1080- Achievement School District as passed by the committee eliminates the Principal Turnaround Model and the Project LIFT pilots but retains the problematic provisions that were contained in the House-passed version.

“We’re talking about a situation in the state that is so bad, where the results are so bad, how can you argue for doing the same thing?” Sen. Chad Barefoot (R-Wake), who is leading the bill in the Senate, said to the committee.  Sen. Angela Bryant (D-Halifax) pointed out that schools could be forced into an ASD without any buy-in or support from the local community and that this would make it difficult for an ASD concept to work.

HB 1080 could come up on the Senate floor as early as Monday afternoon.  NCSBA continues to have both mechanical and conceptual concerns with HB 1080.  Please contact your Senator(s) in opposition throughout the weekend.  Click here to find your Senator(s) and contact information.  Click here for the NCSBA issue brief on this.  See below for short talking points.

Talking Points on HB 1080

• HB 1080 requires local school districts to maintain school buildings despite the fact the State has taken control of the campuses. Also the State Board would be making the final decision in a number of situations where the local board and the charter operator disagree over the need for a renovation or repair.This would put Raleigh in the position of dictating how local officials prioritize capital needs, almost certainly leading to conflict.
• The local school district will also continue to provide transportation for students to the school. Again, this is another responsibility the school district should not be required to maintain if the state assumes control of a school.
• This framework could cause a school districts to deal with challenging staffing issues.
• The ASD framework has not shown to be successful in other states that have experimented with similar measures, including Tennessee and Michigan.
• Four actions were made permissible to North Carolina school districts for low-performing schools per the Race to The Top Grant provisions, of which one was to operate a low performing school like a charter. School districts have not implemented all of these available procedures.
• The bill tries to entice districts to transfer schools to the ASD by allowing them to create “Innovation Zones,” areas where they can operate schools with charter-like flexibility. This provision is a red herring because school districts already have the authority to apply to the SBE to operate some schools with charter-like flexibility and some have already utilized this option.

Tax Cap Const. Amdt.

A constitutional amendment to drop NC’s constitutional income tax rate cap from 10% down to 5.5% passed out of a Senate committee today.  The Senate Rules Committee passed the amendment as part of a larger package of proposed constitutional amendments in HB 3.  The amendments could hit the Senate floor on Monday.  A reduction of the tax cap in this way could be of concern to local school districts for a few reasons:

• If the State is hamstrung in its ability to raise revenue to keep up with growing student populations at the K-12 level, the burden would likely be further shifted to the local level, creating greater challenges for local communities.
• It will be more difficult for future lawmakers to effectively respond to unexpected fiscal/economic circumstances.
• It will also be more difficult for future lawmakers to address teacher salaries and other items needed to keep NC’s public education system competitive regionally.
• Since there are certain sectors of the budget that grow automatically by statute or federal law (Medicaid, corrections, etc.), lawmakers will be more inclined to respond to a slow-down in revenue by cutting things such as education spending.
• If lawmakers find themselves needing to raise more revenue, they could potentially turn to the sales tax, which is a more volatile revenue source.

If you wish to voice concerns about the tax cap provision of HB 3 please communicate with your Senator(s) immediately.  Click here to find your Senator(s) and contact information.

Immigration Bill Ties School Capital Funds to Immigration Enforcement

A bill to establish penalties for local governments that fail to follow immigration laws was unveiled in a Senate Committee this week (HB 100) and passed two committees.  The bill would cut off distributions from the Public School Building Capital Fund for a county if either the county government or the county law enforcement agency is found by the State to not be complying with immigration laws or E-Verify.

Since school capital dollars end up with the local school system, this type of enforcement mechanism ultimately punishes school children and the local school district for the actions of a county government or local law enforcement agency.  One entity should not be punished for the actions/inactions of an entirely separate entity.  HB 100 could come up on the Senate floor as soon as Monday.

Let Senator(s) know that withholding school capital funding for the local school system is not the right way to punish counties and law enforcement agencies for failing to follow immigration laws.  Ask them to find another pot of money to use for an enforcement mechanism.  Click here to find your Senator(s) and contact information.

High School Math Standards

The House did not concur with the Senate’s proposal to require school districts to offer two separate high school math tracks.  HB 657 will now go to conference.  The House has appointed its conferees but the Senate has not yet named theirs.  Click here to see the conferees announced so far.

Budget News

Lawmakers are closing in on a final budget deal for 2016-17.

House Speaker Tim Moore (R-Cleveland) and Senate leader Phil Berger (R-Rockingham) both stated this week that a budget agreement would likely be finalized by Monday at the latest, paving the way for final passage by the end of next week.  It appears that the two sides have reached a general agreement on teacher salaries but that differences still need to be resolved on raises for other employees.

“There will be pay raises. It’s just a matter of how much,” Speaker Moore said.

Click here to read more on the year-round provision and other major items in the Senate budget.

Click here for a summary of the House-passed budget.

Click here to see the line-item adjustments made by each budget, as prepared by DPI.

Bills

Action Bills: Click here for a list of NCSBA-tracked bills that had action this week.

Leanne E. Winner
Director of Governmental Relations
N.C. School Boards Association
(919)747-6686 direct dial

Bruce Mildwurf
Associate Director of Governmental Relations
N.C. School Boards Association
(919) 606-3916 mobile

Bryan Holloway
Associate Director of Governmental Relations
N.C. School Boards Association
(919)747-6677 direct dial

High School Math Standards

The Senate approved a measure this week directing school districts to offer two separate high school math tracks beginning in the 2018-19 school year.  HB 657- Math Standard Course of Study Revisions establishes that students/parents in traditional public schools must have two options for high school/grade 8 math course sequencing: the current Integrated Math I/II/III track OR the Algebra I/Geometry/Algebra II track that was used prior to 2012.

Debate on the Senate floor became testy at times.  Supporters argued that parents uncomfortable with the Integrated Math curriculum need to have options. “At the very essence of this bill is giving parents and students a choice over not what they learn, but how they learn it, and that is something we should strive for,” said Senator Chad Barefoot (R-Wake).  Opponents noted how difficult it would be for school districts to implement two different high school math tracks, particularly for small districts with just a few math teachers.

Several amendments were approved during the floor debate.  One amendment from Sen. Don Davis (D-Greene) requires local school boards to notify parents of the two high school math track options.  Sen. Jim Davis (R-Macon) successfully passed an amendment clarifying that the requirements do not apply to Cooperative Innovative High Schools.  Another amendment from Sen. Erica Smith-Ingram (D-Northampton) establishes that local boards are to be provided with recommended student-teacher ratios for each of the tracks.  The vote for final approval was 33-13.  HB 657 now goes to the House for a concurrence vote.  If you believe this bill is going to cause staffing or other issues in your LEA, please communicate with your House members.  Please share with us any examples of staffing or other issues you are using to demonstrate how this bill could be detrimental.  Click here to find House member contact information.

Tax Cap

SB 817, a measure to drop NC’s constitutional income tax rate cap from 10% down to 5.5% (the current rate), passed the Senate Finance Committee this week.  It is now on the calendar for June 25

SB 817, that would SB 817 is on the Senate’s calendar for June 25.  While the amendment does not address annual spending levels by State government, a reduction of the tax rate cap in this manner could potentially be problematic for K-12 public education in future years.  This bill could be of concern to local school districts for a few reasons:

• If the State is hamstrung in its ability to raise revenue to keep up with growing student populations at the K-12 level, the burden would likely be further shifted to the local level, creating greater challenges for local communities.
• It will be more difficult for future lawmakers to effectively respond to unexpected fiscal/economic circumstances.
• It will also be more difficult for future lawmakers to address teacher salaries and other items needed to keep NC’s public education system competitive regionally.
• Since there are certain sectors of the budget that grow automatically by statute or federal law (Medicaid, corrections, etc.), lawmakers will be more inclined to respond to a slow-down in revenue by cutting things such as education spending.
• If lawmakers find themselves needing to raise more revenue, they could potentially turn to the sales tax, which is a more volatile revenue source.

If you wish to voice concerns about SB 817, please be in communication with your Senators.  Click here to find Senate members.
Budget News

House and Senate leaders are continuing their negotiations on a final budget deal.  It is expected that a final budget will be enacted before the start of the 2016-17 fiscal year.

Those of you who have year-round schools and are concerned about the definition established in the Senate budget that eliminates the single-track year-round option need to continue to communicate your concerns.  Direct your concerns to the Chairs of the House and Senate Education Appropriations Subcommittees, as they will likely be the lawmakers who make a final decision on whether to keep that provision.  You can find their contact info here.

Click here to read more on the year-round provision and other major items in the Senate budget.

Click here for a summary of the House-passed budget.

Click here to see the line-item adjustments made by each budget, as prepared by DPI.

Charter/LEA Funding Relationship

HB 539 remains in the House K-12 Education Committee.  The committee has three choices on the bill: do nothing, make a recommendation to not concur, or make a recommendation to concur.  Please continue to stay in communication with your House member(s) in opposition to HB 539.  Click here for member contact information.

Resources & Points to Remember

Below are materials and informational items to circulate in your communities.

*A one-page sheet with talking points on HB 539 can be found here.

*A short video on this issue can be found here.  Make sure to continue sharing this video on social media and encourage others to do so.

*A longer Myth/Fact sheet on the issue can be found here.

*Legislators and others need to understand the pots of monies that school districts would have to transfer if HB 539 becomes law (reimbursements, gifts, federal grants, etc.).  A review of the types of monies at risk can be found here.  

*Charter schools can already seek out many of the monies at issue in HB 539 without having to take them from school districts.  For example, school districts would have to transfer E-rate reimbursements under HB 539 but charters already have the ability to seek out E-Rate reimbursements if they so choose.

*There are policies and laws that limit how federal grants and reimbursements are used and which students may be served.  Charters continue to claim that despite these policies and laws, they should be entitled to a share of federal grants and reimbursements that a school district receives.

*Charters continue to claim that charter students receive only 75 cents for every dollar provided to LEAs.  This is a flawed calculation based on factors unrelated to per-pupil funding and reflects an apples-to-oranges comparison of district and charter funding.

Achievement School District

HB 1080- Achievement School District, has been referred to the Senate Rules Committee.  Please continue to be in contact with Senator(s) in opposition to this bill.

Click here for the NCSBA issue brief on this.

Bills

Action Bills: Click here for a list of NCSBA-tracked bills that had action this week.

Leanne E. Winner
Director of Governmental Relations
N.C. School Boards Association
(919)747-6686 direct dial

Bruce Mildwurf
Associate Director of Governmental Relations
N.C. School Boards Association
(919) 606-3916 mobile

Bryan Holloway
Associate Director of Governmental Relations
N.C. School Boards Association
(919)747-6677 direct dial