2018-19 Biennial Budget Passed June 2018
The budget bill, SB 99, was released on the NCGA website on Monday, May 28. The legislative leaders did not allow amendments thus the budget was voted on without any adjustments. The Senate’s final budget vote was 36-14 on May 31, 2018. The House voted in favor of the budget Friday, June 1, 2018 with a final vote of 66-44. The bill was vetoed by Gov. Cooper on June 6, 2018. On June 7, 2018, the Senate voted to override Gov. Cooper’s veto. The House concurred on June 11, 2018. A technical correction bill, SB 335 was used to fix some of the identified issues. One of the most surprising elements in the bill was the provision that would allow North Carolina municipalities to spend property tax revenues on any public school. The text of the full budget bill can be found on the NCGA website: https://www.ncleg.net/Sessions/2017/Bills/Senate/PDF/S99v6.pdf.
2018-2019 Budget Adjustments to the 2017-19 Biennial Budget
Compensation and Benefits
- $11.8 million is allocated to fund salary increases for teachers. The average teacher raise is 6.5%. The teacher salary schedule starts at $3,500 per month and increases by $100 for each year of service until 15 years. Between years 15-24, teachers would earn $5,000 per month. This rate is frozen until teachers reach 25 years of service. At 25+ years, the monthly salary would be $5,200 per month. This budget eliminates $5 million dollars for veteran teacher bonuses.
- $12 million is allocated for a principal pay increase and tied to test performance. The base salary schedule for principals is determined by the average daily membership (ADM) and whether or not their school failed to meet, met, or exceeded growth.
2018-2019 Principal Annual Salary Schedule
|1001 to 1300||$75,911||$83,503||$91,094|
Performance bonuses are also included and are awarded according to the Principal Bonus Schedule, calculated using schools’ A-F grades. Bonus levels are as follows:
Top 5%: $10,000, Top 10%: $7,500, Top 15%: $5,000 Top 20%: $2,500, Top 50%: $1,000
- Further, a principal who qualifies for a bonus and supervises a school with an overall school performance grade of D or F for a majority of the 2017-2018 school year qualifies for a bonus of twice the amount listed in the Principal Bonus Schedule.
- $418K is allocated for an assistant principal pay increase. The assistant principal salary schedule is equivalent to the base teacher salary plus 19%.
- $22.9 million is allocated to make the 4th-5th grade reading bonus program and the 4th-8th grade math bonus program recurring.
- The programs will provide $2,000 bonuses to the top 25% of teachers statewide and the same amount to the top 25% of teachers within individual LEAs, based on growth scores.
- State employees will earn a salary increase of either 2% or the amount required to reach an average annual salary of $31,200 or approximately $15/ hour. Notably, school employees such as teacher assistants or custodial staff are not included in the increase to reach $31,200, but will receive a prorated 2% raise.
- The budget increases the State’s contribution for members of the Teachers and State Employees Retirement System to fund a 1% one-time cost of living supplement to retirees.
- Increases Needs-Based School Capital fund by $42 million, largely through changing percentages of lottery funds going to this fund. School building funding was otherwise omitted. A blue ribbon panel estimated that, not including repercussions from the class size mandate, school construction needs were approximately $8 billion dollars and critical infrastructure needs remain.
- No additional state funding provided to meet mandated class size reduction.
- Section 38.8 authorizes cities in North Carolina to use local property taxes to fund any public school located within their localities. This could include charters, lab schools, and any other publicly funded entity. It appears to address a deficiency in HB 514, a bill that allowed for the creation of charters in the suburbs of Charlotte. HB514 will drastically alter the way schools could be funded. It could further the divide between have and have not schools by allowing cities to supplement funds for certain schools.
- $35 million is allocated for the school safety package, though only $5 million is recurring. The funding goes to expand the SRO grant program, to expand the anonymous tip line, and to create new grants to support students in crisis, school safety training, safety equipment, and school mental health personnel. Includes $10 million of non-recurring funds transferred from the Dorothea Dix hospital fund.
- What could have been used to fund approximately 1,000 more Pre-K slots was instead appropriated elsewhere. Over $75 million of federal funds were allocated to NC to expand Pre-K programs and of that, $50 million dollars was used to replace state funding.
Per Pupil Spending
- Little investment was made to expand school resources. Allotments for teaching assistants, textbooks, at-risk student services and more are still below 2008-2009 levels when adjusted for inflation.
- Opportunity Scholarship funding increases from $45 to $55 million.
- Funding for the Disabilities Grants increases from $10 million to $13 million.
- Adds $161 million to the rainy day fund.
- Tax cuts for the wealthy and corporations will remain in place at the expense of public schools and other worthy recipients. By 2019 corporate tax rates will fall to 2.5 percent and rates for top earners will fall to 5.25 percent. These cuts have taken, and will continue to take a huge chunk out of potential public school funding, resulting in a $900-million-dollar decrease.
Other Education Provisions
- Grants the virtual charter schools pilot an extension for another 4 years even though both virtual schools are low-performing.
- Section 7.2 allows the ISD to essentially oversee itself “in the event that temporary management is necessary due to contract termination, lack of a qualified ISD operator or other unforeseen emergency.”
- Military families are now permitted to enroll their children prior to residency in NC if they are in the process of being transferred to NC. They can enroll their children in public schools or participate in charter school lotteries (SB99).
Department of Public Instruction/State Board of Education
- Continues planned cuts in the amount of $4 million for central office and $5 million for DPI. This provision led to the layoff of 40 DPI employees, many of whom served low income populations.
Summary of the public schools education budget provisions is found here: http://www.ncpublicschools.org/docs/fbs/budget/budgetsummary2019.pdf.
Summary about some of the issues that impact public schools are found here: https://www.ncsbac.org/advocacy/issue-briefs/.
Highlights of Education Bills Passed During Short Session 2018
HB514: Permit Municipal Charter School/Certain Towns. This bill allows Cornelius, Huntersville, Matthews, and Mint Hill, majority white suburbs of Charlotte, to create their own charter schools. Further, they will be permitted to restrict access to local residents. In the budget amendments, a related provision (38.8) allows local municipalities to use (and raise) property taxes to fund schools. It is worrisome that this will exacerbate existing segregation and inequality. Charlotte is already experiencing high levels of segregation. Additionally, taxpayers could see increases in tax bills as localities take on school funding responsibilities. Many public school advocates think these related pieces of legislation will eventually be found unconstitutional. Also troubling is how this legislation could return North Carolina back to a time when the quality of education was inequitably distributed based on one’s zip code. On June 6, 2018, the N.C. House approved HB 514 with a 64-53 vote. It was ordered enrolled and ratified (Ch. SL 2018-3). Public school advocates have serious concerns about segregation and inequity. It was treated as a local law and therefore did not require the governor’s signature.
HB 374: Regulatory Reform Act of 2018. Repeals State Board of Education policies that are inconsistent with the June 8, 2018 Supreme Court ruling.
HB 670: Protect Educational Property. This bill increases the criminal penalty for making a threat of mass violence on educational property or at a place of worship; provides for conditional discharge of persons convicted of those offenses when the offense is committed under the age of twenty.
HB 986: Various Changes to Education Law. This bill enacted the following:
- Requires the State Board of Education and the Department of Public Instruction to report to the Joint Legislative Oversight Committee by March 30 of each year on the compliance of schools with the requirements regarding cursive writing and the memorization of multiplication tables,
- Includes a provision that directs DPI to develop a mental health training program and suicide referral protocol and that the State Board of Education repeals it School-Based Mental Health Initiative Policy,
- Requires school districts to offer placement in advanced mathematics courses to students who score a level 5 or higher on end-of-grade or end-of-year mathematics testing,
- Instructs the State Superintendent of Public Instruction to study and make recommendations on ways to reduce testing not otherwise required by State or federal law in kindergarten through twelfth grade by January 15, 2019 and report findings and recommendations to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Joint Legislative Education Oversight Committee, and
- Creates a “Renewal School System” model that authorizes a qualifying local school administrative unit to become a renewal school system and to receive charter-like flexibility. The only school district that qualified for “restart status” (see Bill for the criteria) is Rowan-Salisbury (https://www.rssed.org/). This LEA already has 16 of their 35 schools identified as low-performing restart schools and these schools as such have the same kind of flexibility enjoyed by charter schools. This special flexibility allows them to change their calendar or hire half of their teachers without certification and vary how they pay teachers in the pursuit of school improvement. A Renewal School System will allow the entire school district to treat all schools in its district like a restart school.
Many school boards and Superintendents across NC have complained about having one set of rules for their restart schools and one set of rules for their traditional schools. Education advocates have long lobbied for giving all school districts the same flexibility as charters to give them more options when it comes to curriculum, calendars, budgeting, and staffing for all of their schools not just low-performing schools.
If school boards were given the right to have their own charters under their elected purview or given system-wide flexibility like charters for traditional schools per se, one could argue you do not need a separate system for charter schools with non-elected governing boards.
HB 1031: Local Ed Funding Dispute Process. This bill repeals the authority for a local board of education to file legal action challenging the sufficiency of funds appropriated by county commissioners.
Key Bills Not Passed During 2018 Short Session
HB53: School Calendar Modification is an example of numerous Local Bills on School Calendar Flexibility: No movement of allowing school districts calendar flexibility
Calendar Flexibility Bills: H20, H41, H47, H50, H51, H60, H77, H79, H93, H106, H108, H121, H166, H167, H188, H202, H203, H209, H210, H213, H231, H234, H253, H269, H291, H296, H301, H313, H314, H318, H346, H372, H377, H419, H430, H521, H523, H839
HB933: Bill to improve flexibility needed to hire more school psychologists due to severe shortage.
HB746: Omnibus bill that included permit-less carry. If this bill would have passed it would mean that people as young as 18 years old with no training and no background check could carry a hidden loaded weapon in public. Bill did not receive a committee hearing on the Senate side.
For a more detailed list of Key Legislative Bills that did and did not see action during the 2018 Legislative Session, visit this link: https://www.publicschoolsfirstnc.org/wp-content/uploads/2013/09/06-29-18-Week-in-Review.pdf
Task Force May Change How Schools Are Funded
How are North Carolina schools funded now?
North Carolina currently funds schools with a complex formula that includes three basic types of allotments: position allotments, dollar allotments and categorical allotments. Position allotments include funding for teachers, principals and instructional support staff and other school personnel. Dollar allotments can be used to fund positions like teacher assistants and textbooks. Categorical allotments are used for budget items such as transportation and at-risk student services. View a summary of the funding formula. You may also want to review this document for more historical context presented by Adam Levinson, the NCDPI Chief Financial Officer, to the task force in December, 2017.
What are the proposed changes to the funding formula?
The Joint Legislative Task Force on Education Finance Reform, established in August 2017 to review the feasibility of moving to a weighted student funding model (see Task Force charge). A weighted student funding model sets a base amount of funding for each student and then adds “weights” (money) for kids who fall in different categories such as low-income, English language learners and disabled. The task force will consider the implications of moving to a weighted funding system and look at other states that have done the same.
Proponents of the weighted funding method say it allows for more flexibility and transparency. They see the potential for more money to go to “schools of choice” as an incentive. Critics argue that the overhaul might create more problems than it fixes. Weighted student models can miss fixed costs of a school district that are incurred regardless of population size. Few, if any states have been able to implement this model in a way that is completely fair and equitable. The weighted student funding models can have the same inequities and complexities as the current allotments methods. Many caution against proceeding too quickly with an overhaul. A notable omission in the task force’s undertaking is any discussion of the current adequacy of funding.
Several presentations to the task force in January 2018 are helpful in understanding the impact of changing the current education funding formula. These presentations can be found on the NCGA website. Information was provided by several superintendents along with the NC School Boards Association (NCSBA) and the NC Association of School Administrators (NCASA). Both the NCASA and the NCSBA advised that if the North Carolina proceeds with implementing a weighted funding model, that they should gradually transition to any new funding formula to allow a more successful transition and to allow time for staff training and adjustments. Additionally, both groups recommended provisions be included to; “hold harmless” funding levels so districts do not receive less money than they have now, a maintenance of position allotments, and an adequate base level of funding.
The NCASA pointed out no state has yet been able to implement a “clean, simple version of a weighted student formula pushed by advocates” and that transition to a new funding model “would create transition costs without obvious benefits”. Clearly, there is much for this task force to consider before proceeding.
The task force committee will continue to meet periodically to gather information. They plan to present their findings to the NCGA by October of this year. You can follow the work of this task force on the NCGA website. Be sure to review each meeting’s agenda and materials posted for the presentations.
State Budget Process Primer
In North Carolina, two-year budgets are created in odd years. The process begins early in an odd-numbered year, when the governor, as the director of the state budget, develops a set of spending priorities based on state agency requests and recommendations. This is presented to the General Assembly.
Legislators consider this roadmap and present their own budget priorities in the spring. The House and Senate alternate being the first chamber to introduce a budget plan for the biennium. A budget plan has two parts, a budget bill, and a money report.
After the first chamber produces and passes a budget, the second may either take that bill up or introduce and pass its own budget bill. That is usually the case. Also usually, the first chamber does not pass the second chamber’s bill, so the differences between the two budgets are reconciled in a conference committee consisting of both House and Senate members. Finally, each chamber agrees to the conference budget and sends it to the governor.
The General Assembly’s budget is theoretically presented to the governor by the end of the fiscal year on June 30th, but in reality often later in the summer. The governor may sign the budget into law; ignore it, in which case it becomes law after 10 days; or veto it and send it back to the General Assembly.
In the second year of the biennium – in other words, in even years – the governor proposes budget adjustment recommendations. The legislative budget process then continues in much the same manner with both chambers making their own budget plans, but it is usually shorter, hence our General Assembly’s Long and Short Sessions.
2017-19 Biennium Budget
This is the Senate’s turn to create the first legislative biennium budget, so Senate leaders released their plan at midnight on Wednesday, May 10, 2017, less than 12 hours before the Senate Appropriations, Base Budget Committee met to discuss it. The full chamber passed the bill at 3:08 AM on May 12. The Senate budget bill, SB257, and the money report form the budget. The specifics of the Senate’s Education budget are available at the link.
The House made the Appropriations bill available on the night of May 30, the money report and special provisions are also online, and it passed the Appropriations Committee late in the afternoon of May 31. The full chamber passed the bill at 12:29 AM on June 2. You can read the details of the House Education budget.
The Department of Public Instruction has a useful spreadsheet available for download that compares Gov. Cooper’s proposal with the Senate’s adopted budget, including comparisons of the salary and benefit packages and pay schedules for teachers and principals.
Here are the budget bill and the money report proposed by the conference committee and released just before midnight on Monday, June 19. The Senate held the first vote on the 983-page plan the very next day, and House leaders followed over the next two days. Although Gov. Cooper vetoed the bill, his veto was overridden on Wednesday, June 28.
You can read about the impact of the budget, and these are some high-/low-lights:
Compensation and benefits
- Average 3.3% teacher pay raise, with raises for almost every step and an increase & bonuses of $385 for 25+ years in 2017-18 and 2018-19
- Retirees will get 1% COLA (this is recurring, not one-time)
- Non-teaching state employees will receive $1,000 raises (not bonuses)
- Raises for assistant principals (avg 13.4% over 2 years) and principals (avg 8.6%). More here.
- Makes 3 teacher bonus programs permanent: Third Grade Read to Achieve Teacher Bonuses, Advanced Placement/International Baccalaureate/Cambridge AICE Teacher Bonuses, and the Career and Technical Education Teacher Bonuses
- Adds funding for $2,150 math performance bonuses for grades 4-8 teachers and the same for reading performance bonuses for grades 4-5 , to go to the top 25% statewide and within LEAs in 2017-18 only
- Eliminates retirement health benefits for state employees hired after Jan. 21, 2021. More here.
- Expands teacher assistant tuition assistance program in several counties.
- Funds reimbursing initial teacher license application fees for graduates of an approved NC educator preparation program
Per Pupil Spending
- Per pupil spending, adjusted for inflation, 6.7% below pre-Recession levels
- Adds 3,525 new pre-K slots over 2 years, BUT 2/3 of the funding comes from a federal block grant (Temporary Assistance for Needy Families, or TANF) that is threatened by federal budget cuts
- Does not include funding for specials (Art/Music/PE/world language) teachers when class size restrictions take effect
- Adds $11.2M in non-recurring funds for textbooks
- Increases funding cap for children with disabilities to 12.75%
- Provides an additional $2.4 M recurring for the state’s digital learning plan
- Creates grants for LEAs to expand CTE programs to grades 6 and 7
- Adds $363M to rainy day fund
- Includes Raise the Age language & funding for ADAs
- Cuts personal income tax rate from 5.49% to 5.25% and corporate tax rate from 3% to 2.5% in 2019
- Does not cut Governor’s School or Wright School
- Restores middle-of-the-night Eastern NC STEM summer program cut made in Senate
- Cuts central office administration (LEAs) by 7.4% in first year and 11.6% in the second
- Allows K-3 class size flexibility pilot program ending in 2019-20 for dual language immersion classes and certain schools in Chapel Hill-Carrboro, CMS, Edgecombe, Pitt, Vance, and Washington counties
- Creates Education Savings Accounts for students with disabilities. This will take the form of a taxpayer-funded $9,000 debit card given directly to parents for educational expenses. Parents of students with serious disabilities can receive these funds even if their children are already receiving Disabilities Grants. Management may be contracted to a private financial management firm. Kindergartners will be eligible for this program.
- Adds $10M per year to voucher program until 2027-28 when it will plateau at $144.8M annually; also makes that funding part of the base budget going forward
- Creates a task force to study accountability within the voucher program, with guaranteed representation for: private schools that accept voucher students and associations that represent those schools; organizations “representing parental school choice, such as Parents for Educational Freedom in North Carolina”; independent organizations that evaluate K12 education; and public school leaders.
Department of Public Instruction/State Board of Education
- Cuts NCDPI by 13.9% over the next 2 years. More here.
- Gives the Superintendent of Public Instruction $1,000,000 to pay for an audit of NCDPI
- Gives the superintendent $700,000 for up to 10 new exempt positions within his office, with no approval from the State Board
- Also gives the superintendent $300,000 for his lawsuit against the State Board and…
- Prohibits the State Board from using any state funds for private counsel in litigation
- Terminated for political reasons the State Board’s Executive Director and employees of NCDPI. Three NCDPI staffers whose firings are written into the budget worked in their spare time on former superintendent’s campaign, and the State Board director represents the GOP-led Board at the legislature.
- Creates Joint Legislative Task Force on education funding reform, with 9 members appointed by each chamber’s leaders by Sept. 1, 2017, to complete a report with proposed legislation by Oct. 1, 2018
- Transfers Education and Workforce Innovation Commission from the governor’s office to NCDPI
- Establishes B-3 Interagency Council between NCDPI and the Department of Health and Human Services, including 2 positions, for “the development and implementation of an interagency plan for a coordinated system of early care, education, and child development services with a focus on program outcomes in satisfying the developmental and educational needs of all children from birth to eight years of age”
- Changes the Achievement School District’s name to the Innovative School District (ISD)
- Creates new, less generous form of the Teaching Fellows program that was axed in 2011. This plan favors STEM/special ed teachers and offers incentives for teaching in low-wealth schools. Contrast the original program with Gov. Cooper’s proposal and the legislative proposal that’s included in the budget here.
- Keeps school performance grade formula at 80% achievement, 20% growth, and switches to 10-point grading scale beginning with 2019-20 school year
The budget devised by House and Senate negotiators to reconcile the differences between their respective chamber plans was released late on Monday, June 27. The Senate passed the measure Wednesday, June 29, and the House on Friday, July 1. The budget comprises two documents: the conference budget bill and the conference money report.
Here are some highlights:
- Raises teacher salary by an average of 4.7%. The teacher salary schedule will restore annual step increases for teachers in years 0-14, at year 15 salary will stay the same for next 10 years.
- Raises average teacher salaries to over $50,000 in 2016-17 and $55,000 over the next three years.
- School administrators receive step increase and a 1.5% increase to base salaries
- Non-certified school personnel receive a 1.5% salary increase.
- School administrators and noncertified personnel will also receive a one-time 0.5% bonus.
- There is a pilot program for rewarding third grade teachers. Teachers who are in the top 25% in the state for EVAAS student growth index scores in reading will share $5 million. Teachers who are in the top 25% of their LEAs for the same score will share $5 million, and teachers who fall in both categories will receive both bonuses.
- The state’s voucher program will expand by an extra $10 million and 2,000 students every year until 2027-2028 when spending will plateau at $144.8 million per year. The budget also expands the percentage of money that can go to Kindergarten and 1st grade recipients, from 35% to 40% of what remains after prior recipients are enrolled.
- The school performance grade formula will not change from 80% test scores, 20% growth to 50/50 as the House proposed, and the 15-point scale will remain for the next three years.
- The budget codifies maximum class sizes for the earliest grades. The funded class size ratios are: Kindergarten 1:18; 1st grade 1:16; and 2nd and 3rd grade 1:17.
- A provision in the Senate budget that would have changed the schedules of year-round schools was omitted.
- The budget funds 260 new pre-K slots at a cost of $1.325 million. For reference, there are more than 7,000 children on the state’s pre-K waiting list. The governor and the House both proposed spending $4 million to fill 800 spots.
- The percentage of virtual charter school teachers who must live in state decreases from 90% to 80%. The budget also changes the way students who withdraw are counted under the withdrawal rate cap of 25%, creating four new exceptions. For instance a student who withdraws for “a family, personal, or medical reason” and who notifies the school would not count as a withdrawal under the cap.
The NC Senate released its $22.2 billion budget plan just before midnight on Tuesday, May 31. Chamber leaders were, as planned, able to pass the 187-page bill that features faster tax cuts than the House plan just over 48 hours later, at 12:05 Friday, June 3. Read the full measure here and the Appropriations Committee report on it here.
The Senate budget proposal includes teacher raises, which the News & Observer compared to the House plan:
HOW THE TEACHER PAY PLANS COMPARE
Starting salary: Remains at $35,000 in both the House and Senate plans
Five years of experience: 4.1 percent raise in House plan; 4.8 percent raise in Senate plan
10 years of experience: 5 percent raise in House plan; 6.25 percent raise in Senate plan
15 years of experience: 3.4 percent raise in House plan; 7.5 percent raise in Senate plan
20 years of experience: 3.2 percent raise in House plan; 3.8 percent raise in Senate plan
25 years of experience: 2 percent raise in House plan; no raise in Senate plan
The Senate budget provides $27.1 million to reduce second grade class size to 1:16 ratio, which is just one fewer student per classroom. At the same time, the upper chamber followed the House’s lead in making lottery money the sole source of non-instructional support funds. Senate budget writers also put almost double the money in the state’s rainy day fund, just about $600 million, while cutting DPI’s budget by $2.2 million and LEA central office funding by $5 million. In addition – or subtraction, really – the budget eliminates $10 million for school connectivity and $4.8 million for at-risk students. The Senate slightly increased textbook funding (to $9.25 million) but uses one-time, rather than recurring, funds to do so. All told, funding for K-12 public education would remain 8% below pre-Recession levels, adjusted for inflation.
Oddly, the Senate budget incorporates SB862’s “forward funding” for the voucher program into the budget itself. It creates the proposed reserve and funds it based on the program’s expansion of 2,000 additional students per year. NC Policy Watch calculates that would entail giving 112,892 vouchers out annually in just ten years. The reserve provision will cost $170 million more than current voucher funding plans would in just the next 5 years.
The House budget includes small teacher pay raises. They average 3% but are structured so that teachers in the middle of their careers get more than new or veteran teachers. Those teachers would get bonuses of $1,000, paid throughout the year, rather than salary increases. Those bonuses would however, count toward retirement. The main budget writer for the House, Rep. Nelson Dollar (R-Wake) stated that “the House’s goal is to see us be at or above the average teacher salary for the Southeast.” This is a lower goal than seeking to reach the national average, and we are currently 9th out of the 12 Southeastern states.
The NCAE has more highlights of the education budget:
- Provides $46.8 million for enrollment growth of nearly 5,900 students.
- Replaces $57.3 million in General Fund dollars with lottery money to pay for non-instructional support personnel. This area is now fully-supported by lottery funds, which should be used to enhance education funding, not supplant current General Fund spending on schools.
- Provides $25 million for literacy coaches to support Read to Achieve, but would mean elimination of the first-grade class size reduction passed last year and reduction in reading camp funds.
- Provides $11.6 million in one-time funds for textbooks and digital materials. We would remain about 34 percent below pre-recession levels.
- Provides $5 million in one-time funds for instructional supplies. We would remain about 50 percent below pre-recession levels.
- Provides $1.3 million to reinstate funding for salary supplements to instructional coaches who have earned National Board Certification.
- Provides $5.8 million in additional private school voucher funds for Special Education Scholarship grants.
- Provides $1.1 million for a differentiated pay pilot similar to Project LIFT in Charlotte.
- Provides $4.3 million for $50 dollar bonuses for Advanced Placement/International Baccalaureate teachers for each student who scores highly on exams or CTE teachers whose students pass industry certifications.
- Provides $2 million in the university budget for a N.C. Scholarship for Teacher Advancement and Retention program similar to the N.C. Teaching Fellows program previously eliminated.
- Modifies A-F letter grading system of schools from 80 percent performance and 20 percent growth to 50-50. It would also keep the 15-point system in place.
- In addition, Health & Human Services budget writers approved spending $4 million more to fund an additional 800 pre-K slots.
You can also see NC DPI’s comparison of the governor’s proposal and the House budget here.
2016-17 Budget Proposals
The State Board of Education released a set of budget priorities in March 2016 that aim to make NC number one for teacher pay in the Southeast. Currently, we are 9th out of the 12 states.
Gov. McCrory’s budget proposal, released in April, is too modest to achieve that. It includes some teacher pay raises, however those largely come in the form of one-time bonuses for teachers rather than permanent pay raises. It also continues per pupil funding below pre-Recession levels when adjusted for inflation.
The NC House Education Appropriations subcommittee released its budget report and special provisions proposal on May 12, 2016. It does not include funding for teacher pay increases as the writers say they will add that to the budget further along in the process. It increases reliance on lottery funds rather than paying expenses out of the General Fund. It also cuts funds for smaller first grade class sizes in order to add money for literacy coaches, and the extra money it provides for textbooks and digital learning resources is in the form of one-time only payments.
The Senate budget proposal, released just before midnight on Tuesday May 31, is described above.
Don’t forget, you can keep up with the status of all of the bills that affect our public schools here!
2015-17 Biennium Budget
After enacting two continuing budget resolutions, House and Senate leaders reached a final budget agreement on September 18, shortly after midnight. Governor McCrory signed the budget bill (House 97) later the same day. The budget includes a total spending amount of $21.735 billion, which is a 3.1 percent increase over the previous budget.
Over all the budgets keeps recession-era levels of investment in education while our student population and costs are increasing. Further cuts to state revenue were also implemented this session.
Earning potential is low for teachers because their salaries are capped at about $50,000 (an increase of only $15,000 over their entire career). The national average ending salary, according to the National Council on Teacher Quality is around $76,000.
- Read our fact sheet, The Impact of the 2015-17 State Budget or our Quick Facts for additional information and links to other budget resources.
- Access a presentation from the General Assembly’s Fiscal Research Division to understand how public schools are funded.
- The NC DPI presented a list of the 2015 Relevant Laws Passed. (Here)
- Historical per pupil funding: 2008-09 to 2015-16. (Here)
|Teacher Pay||25th in U.S.||41st in U.S.|
|Teacher Career Status||Yes||No (except for those who have already earned it)|
|Salary Supplement for Master’s Degree||Yes||No|
|NC Teaching Fellows Program||Yes||No|
|Class Size Capped (grades 4-12)||Yes||No|
|Per Pupil Expenditure||$5,896||$5,744|
|Total Education Budget||$8.706 B||$8.878 B|
The new biennial budget highlights are below (see budget bill here). It is also helpful to review the results of the 2013-15 budget below to better understand the national rankings assigned NC for teacher pay and per pupil funding.
- Increases school vouchers by $6.8 million in 2015-16 and $14 million in 2016-17, a total increase of 129% over 2014-15 funding level. Total dollars available for 2015-16 is $17.6 million and $24.8 million for 2016-17.
- New beginning teachers will be paid $35,000 (an increase from $33,000).
- All State employees/school personnel receive a one-time $750 bonus (includes central office staff). The salary steps (tiers) are the same as 2014-15 and will be funded for teachers and principals/assistant principals.
- There is no change to master’s and other advanced degree pay. If you had a master’s or other advanced degree or had completed one class prior to August 1, 2013, you are grandfathered under rules in place prior to that date. Master’s and other advanced degree pay will always be allowed if your job requires it.
- Teacher Assistants are funded at the 2014-15 levels, but funds must be used for teacher assistants only with all flexibility for the funds being eliminated effective this school year. Funds 15,300 TA positions, about 7,000 less than 2008.
- Teacher support will now be funded from general funds (not lottery funds) and non-instructional support personnel funded from lottery funds (no longer from general funds).
- Class size for first grade classes is reduced to 1:16 for 2016-17; an additional $27 million is allocated for additional teachers.
- Textbook and digital resources increased by $21.8 million for 2015-16 and by $31 million for next year (currently funded at ~$24 million).
- Funds driver’s education for 2015-2016 (general fund) and 2016-2017 (civil penalty and forfeiture fund). School districts can charge up to $65 per student to fund driver’s education. School districts must reduce fee for students who prove economic hardship.
- A decrease of 5,400 Pre-K slots since 2008; a waiting list remains.
2013-15 Biennium Budget
The passage of the 2013-15 state budget dealt a powerful and immediate blow to North Carolina’s public schools. It is helpful to see the funding levels and staff cuts made two years ago as you consider the new biennial budget’s allocations. Some increases this year are restoring monies lost two years ago and many funding cuts have been restored. Some of the key actions are below.
- Teacher career status was terminated by legislators but a June 2015 ruling from the NC Appeals Court said that ending teacher career status for educators who have already earned that status was unconstitutional. Career status protects teachers from being fired arbitrarily (without due process). Yet, teachers who have yet to earn career status are effectively temporary employees and are given only one-year contracts. Beginning in 2016, teachers without career status can be offered one, three or four-year contracts.
- Caps annual teacher salaries at $50,000. A certified teacher with a bachelor’s degree would earn $50,000 at 25 years of service. The U.S. average public school teacher salary is $58,000.
- Eliminated 5,184.5 teachers and 272 support personnel (guidance counselors, psychologists, social workers, etc.) in 2013-14.
- Cut teacher assistant positions: 3,850 positions in 2013-14 and an additional 3,300 in 2014-15.
Last updated: July 17, 2018