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NEWS RELEASES 2000-01 :: MAY 25, 2001


Public Education
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  FY 2001-02 FY2002-03
Recommended Budget $5,923,802,924 $6,021,031,149
Legislative Changes    
A. More Accurate Projection of Budget Requirements
1. Additional Adjustments in Average Salary Projections
In addition to the annual Continuation Budget adjustment for average budgeted salary of certified personnel, a more recent review of certified personnel salaries, from updated salary data, identified an additional reduction in projected salary needs for FY 2001-02
($8,497,668) R ($8,497,668) R
2. School Bus Purchases
Reduce funding for FY 2001-02 based on a revised school bus replacement schedule.
($23,915,892) NR  
3. Payments for Teacher Unused Vacation Days
Adjust funding to reflect recent expenditure experience.
($4,000,000) R ($4,000,000) R
4. Transportation Adjustment: Bus Driver Physicals
The Division of Motor Vehicles is delaying the implementation of the requirement that bus drivers must have a physical examination every two years. $25,000 would remain in the budget for pilot projects.
($535,000) R ($535,000) R
5. Transportation Adjustment: Diesel Fuel Cost
The economic forecast models project a 10.5% decline in diesel fuel cost from the current year's average. The current average cost is $0.92 per gallon and the Continuation Budget was based on an estimated cost of $l.05 per gallon. This adjustment budgets diesel fuel at $0.92 which is the current level. All school buses utilize diesel fuel.
($2,990,000) R ($3,048,890) R
6. Transportation Adjustment: Inventory Adjustment
June 30, 2000 inventory levels (oil, tires, and parts) were approximately 62% of annual needs. This one-time reduction is to reduce current inventory levels to a more optimum level.
($4,000,000) NR  
7. Revised Projection of Average Daily Membership
To eliminate the possibility of duplicating the inclusion of some students in projecting a local school administrative units average daily membership and to project a more realistic estimate of future student populations.
($20,199,068) R
($16,227,221) R
8. Classroom Materials/lnstruction Supplies/Equipment
Adjust the increase for inflation to a 3% growth (in line with the Consumer Price Index) from the 5% growth used in the Continuation Budget.
($1,140,499) R ($1,140,499) R
9. School Building Administration
Estimated new public schools opening in FY 2001-02 has been revised to 35 (from 70).
($2,338,140) R ($2,338,140) R
10. At Risk Student Services/Altemative Schools
Each high school receives funding to employ a school safety officer. The estimate of new high schools scheduled to open in FY 2001-02 has been reduced to 10 (from 20).
($529,732) R ($529,732) R
11.Charter School Reserve
Funds in this category are used to distribute the applicable State funding to charter schools for students attending a charter school who were not previously in a public school (private or home schooled). Since the number of charter schools has reached the maximum legislated number of 100, the reserve can be reduced to $2 million in FY 2001-02 and $1 million in FY 2002-03.
($2,404,513) R ($3,404,513) R
12.Driver Education
To reflect reductions to the Highway Fund for revised Average Daily Membership Projections and an adjustment based on average annual reversions.Reduction to Receipts: ($1,830,739)
$0 R $0 R
B. Reduction of Administration Cost   
13. Safety Assistance Teams
Eliminates funding used for Statewide consultants.
($500,000) R ($500,000) R
14. Regional Education and Technical Assistance
Reduce State funding distributed to local school administrative units that could be used to support the Regional Education and Technical Assistance Centers by $3 million (44.56%).
($3,732,100) R ($3,732,100) R
15. Central Office Administration
A 1.97% reduction from FY 2000-01 allocations for each local school administrative unit. The State Board is directed to develop a revised formula for FY 2002-03 that eliminates any permanent hold harmless in the formula.
($3,300,000) R ($3,300,000) R
16. Uniform Education and Reporting System (UERS)
Based on the current NC WISE implementation schedule, a one-year reduction in funding is possible. FY 2001-02 funding level will be $10,018,927.
($5,000,000) NR $0 NR
17. Department of Public Instruction
The elimination of 50 State-paid positions in the Department of Public Instruction (over the biennium). In FY 2001-02, the total reduction to the Department of Public Instruction will be a minimum of $3,800,000.
($3,800,000) R ($3,800,000) R
C. Other Budget Adjustments   
18. Vocational Education-Tech Prep
Eliminates State funding for Tech Prep. Federal funds in excess of $3 million support this program.
($100,000) R ($100,000) R
19. Appropriations to Non-Public School Agencies
Funding for the Public School Forum for adninistration of the Teachers Fellows Program ($420,564) is reduced 10%, funding for Schools Attuned ($643,100) is reduced 10%, funding for Teacher Cadet ($150,000) is reduced 10%. The remaining non-public school agencies that have received recurring appropriations through the Department of Public Instruction are not directly funded. A $2.5 million reserve is appropriated to the State Board of Education for contractual agreements with non-public school agencies.
($2,445,116) R ($2,445,116) R
D. Improving Student Performance   
20. Targeted Class Size Reduction and Instruction
a. In schools with 80% or more of the students eligible for free or reduced lunch and with 45% or more of students performing below grade level, lower class size in grades K-3 to 1:15. Require teachers allotted for these grades to be assigned to teach in these grades.
$8,062,603 R179.60 $8,062,603 R179.60
21. Targeted Class Size Reduction and Instruction
b. Extend the contract for all teachers in these targeted schools for 5 days in 2001-02 and 10 days in 2002-03. The first year days will be for staff development in methods to individualize instruction in smaller classes. The second year will add 5 instructional days.
$973,455 R $2,334,930 R
22. Targeted Class Size Reduction and Instruction
c. Provide one additional instructional support position for each of these targeted schools
$1,840,380 R
$1,840,380 R
23. Targeted Class Size Reduction and Instruction
d. Eliminate regular dollar allotment for teacher assistants in grades K-3 in these targeted schools due to significantly lower class size.
($8,068,580) R ($8,068,580) R
24. Targeted Class Size Reduction and Instruction
e. Provide funding for outside evaluation of targeted class size reduction initiatives.
$500,000 R $500,000 R
25. Targeted Class Size Reduction and Instruction: Kindergarten Lower class size ratio in kindergarten to l teacher for every 18 students. Includes all schools (excluding the ones targeted above). $25,413,757 R
$25,413,757 R
26. Class Size Reduction/lnstruction: Chronically Low-Performing Schools
a. Reduce class-size in schools identified by the State Board of Education as chronically low-performing in grades K-3 to 1:15 and in grades 4-5 to 1:17.
$471,366 R
$471,366 R
27. Class Size Reduction/lnstruction: Chronically Low-Performing Schools
b. Reduce class-size allotment in middle schools (Grades 6-8) to 1:17 and in high schools to 1:20 for chronically low-performing schools.
$1,207,595 R
$1,207,595 R
28. Class Size Reduction/lnstruction: Chronically Low-Performing Schools
c. Extend the contracts for additional teachers in elementary schools and for all teachers in middle -and high schools by 5 days in 2001-02 for staff development and add an additional 5 days of instruction for middle- and high schools in 2002-03. These apply for schools identified as chronically low performing.
$128,295 R $307,730 R
29. Teacher Recruitment Initiatives
a. Have the Education Oversight Committee study methods to provide benefits to part-time teachers to attract more certified teachers back into the classroom.
30. Teacher Recruitment Initiatives
b. Teacher Assistant Scholarships
Additional scholarship funds for teacher assistants taking courses at community colleges that are prerequisites for teacher certification programs. (Major initiatives in the UNC budget will improve availability of teacher education programs for teacher assistants.)
$1,000,000 R $1,000,000 R
31. Teacher Recruitment Initiatives
c. To attract teachers in the shortage fields of mathematics, science and special education and to entice teachers in these specialties to teach in schools with large numbers of at-risk students, in middle schools and high schools with 80% or more of the students eligible for free or reduced lunch or with 50% or more of students performing below grade level, provide an annual bonus of $1,800 (paid monthly with matching benefits). Teachers must be certified in and teaching in these fields and will remain eligible for the bonus as long as they continue to teach in eligible schools.Final decision on this item and other salary decisions will be recommended by the chairs of the full appropriations committee.
$1,500,000 R $1,500,000 R
32. Teacher Recruitment Initiatives: Teaching Fellows Program
Increase available new scholarships by 50. The scholarships for $6,500 per year are awarded to students who agree to teach in a North Carolina public school for four years (or three years in a North Carolina low-performing public school).
$325,000 R $325,000 R
33. ABC Bonuses
Provide funding for ABC bonuses for schools meeting or exceeding expected growth in 2000-01.
($93,100,000) R $93,100,000 NR ($93,100,000) R
34. ABC Bonuses: Pilot Districts
Provide funding for school personnel in 5 pilot school districts for additional bonuses earned under the disaggregated performance pilot project directed by the General Assembly in 1999 (Sec. 8.36, SL 1999-237: HB 168). If a school achieves the pilot program goals, all certified personnel assigned to the school will receive up to $750 and teacher assistants up to $325 (these awards are in addition to standard ABC bonuses). LEAs not eligible for low wealth or small county supplemental funding must contribute 25% of the total cost of the bonuses.
$4,600,000 NR  
35. Character Education
Funding for expansion of character education program.
$300,000 R $300,000 R
36. Children with Special Needs
Increase funding per student for children with special needs.
$5,000,000 R $5,000,000 R
37. Improving Student Accountability
Increase funding for additional instruction for students performing below grade level.
$5,000,000 R $5,000,000 R
38. Limited English Proficiency
Appropriate additional funds to serve students with limited proficiency in English. This brings the total funding for this purpose to $23,037,655 for FY 2001-02 (prior to increases for any legislated salary increase).
$1,000,000 R $1,000,000 R
E. Other Increases   
39. Instructionad Supplies
Expand funding for instructional supplies. Language will direct that each LEA will allocate a minimum of $200 to each state-paid teacher for purchase of supplies.
$8,150,507 R $8,150,507 R
40. School Accountability Report Cards
Funds for the Education Cabinet to develop, publish, and distribute school accountability report cards. The cards should be designed to supply parents information on school characteristics and performance.
$200,000 R $200.000 R
41. Average Daily Membership Contingency Reserve
Provides additional funds to the State Board of Education to address transitional year funding for local school administrative units with new charter schools and for first month allotment adjustments to local school administrative units with higher than expected enrollment growth.
$500,000 R $500,000 R
42. NCWiseOwl's On-Line Subscriptions
Currently, NC WISEOWL is operated by the North Carolina Department of Public Instruction and offers on-line resources (periodicals, encyclopedia, etc.) for K-l2 teachers and students. Federal resources that have been discontinued have covered the subscription cost. The subscription service and funding should be transferred to be a part of the resource base of NC LIVE at the Department of Cultural Resource effective in FY 2002-03.
$628,000 R $628,000 R
Total Legislative Changes ($95,479,458) R ($91,025,591) R
  $64,784,108 NR $0 NR
Total Position Changes 585.50 645.50
Revised Budget $5,893,107,574 $5,930,005,558

About the North Carolina Department of Public Instruction:
The North Carolina Department of Public Instruction provides leadership to 115 local public school districts and 126 charter schools serving over 1.5 million students in kindergarten through high school graduation. The agency is responsible for all aspects of the state's public school system and works under the direction of the North Carolina State Board of Education.

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