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BUDGETARY REFORM PROPOSALS

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GENERAL ASSEMBLY PROPOSAL

• House and Senate Leaders Working on Proposal to Consolidate All 32 Current K-12 Allotments into 1 Block Grant.

• NCASA’s Regulatory Reform Committee, led by Dr. Frank Till, Began Considering Viable Alternatives to This Proposal.

• Finance Officers Ricky Lopes & Kerry Crutchfield & Peers Developed Possible Alternative Proposal at NCASBO Conference.

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NCASA ALTERNATIVE PROPOSALPRC 001 Classroom Teachers POSITION Leave as is PRC 001 Classroom TeacheersPRC 002 Central Office Administration DOLLAR Consolidate into PRC 030PRC 003 Non-instructional Support DOLLAR Consolidate into PRC 030PRC 005 School Building Administration POSITION Leave as is PRC 005 School Building AdministrationPRC 007 Instructional Support POSITION Leave as is PRC 007 Instructional SupportPRC 009 Non-allotted Costs DOLLAR Leave as is PRC 009 Non-allotted CostsPRC 012 Driver Education DOLLAR Leave as is PRC 012 Driver EducationPRC 013 CTE Months of Employment POSITION Leave as is PRC 013 CTE Months of EmploymentPRC 014 CTE Program Support DOLLAR Consolidate into PRC 030PRC 015 School Technology Fund DOLLAR Leave as is PRC 015 School Technology FundPRC 019 Small County Supplemental Funding DOLLAR Consolidate into PRC 031PRC 024 Disadvantaged Student Supplemental Funding DOLLAR Consolidate into PRC 030PRC 027 Teacher Assistants DOLLAR Consolidate into PRC 030PRC 029 Behavioral Support (Willie M) DOLLAR Consolidate into PRC 032PRC 030 Not Currently Used Use as consolidated allotment PRC 030 District-wide Support ServicesPRC 031 Low Wealth Supplemental Funding DOLLAR Leave as is but include Small County PRC 031 Low Wealth/Small County FundingPRC 032 Children with Special Needs DOLLAR Leave as is PRC 032 Children with Special NeedsPRC 034 Academically & Intellectually Gifted DOLLAR Consolidate into PRC 030PRC 042 Child and Family Support Teams POSITION Consolidate into PRC 007PRC 043 Child and Family Support DOLLAR Consolidate into PRC 030PRC 054 Limited English (LEP) DOLLAR Consolidate into PRC 030PRC 055 High School Learn and Earn DOLLAR Leave as is PRC 055 High School Learn and EarnPRC 056 Transportation DOLLAR Leave as is PRC 056 TransportationPRC 061 Classroom Materials, Supplies, Equipment DOLLAR Consolidate into PRC 030PRC 063 Special Program Funds - EC DOLLAR Consolidate into PRC 032PRC 066 Assistant Principal Interns DOLLAR Consolidate into PRC 030PRC 067 Assistant Principal Interns - MSA DOLLAR Consolidate into PRC 030PRC 069 At-risk Student Services/Alternative Schools DOLLAR Consolidate into PRC 030PRC 073 School Connectivity DOLLAR Consolidate into PRC 030PRC 085 Mclass Reading 3D DOLLAR Consolidate into PRC 030PRC 120 LEA Financed Purchase of School Buses DOLLAR Consolidate into PRC 056PRC 000 Textbooks DOLLAR Consolidate into PRC 030

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PROPOSED 12 ALLOTMENTS

PRC 001 CLASSROOM TEACHERS

PRC 005 SCHOOL BUILDING ADMINISTRATION

PRC 007 INSTRUCTIONAL SUPPORT

PRC 009 NON-ALLOTTED COSTS

PRC 012 DRIVER EDUCATION

PRC 013 CTE MONTHS OF EMPLOYMENT

PRC 015 SCHOOL TECHNOLOGY FUNDING

PRC 030 DISTRICT-WIDE SUPPORT SERVICES

PRC 031 LOW WEALTH/SMALL COUNTY FUNDING

PRC 032 CHILDREN WITH SPECIAL NEEDS

PRC 055 HIGH SCHOOL LEARN AND EARN

PRC 056 TRANSPORTATION

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MUST-HAVES FOR NCASA SUPPORT

• One-Year Delay in Change Is Essential for Transition Time for DPI & LEAs.

• Changes Must Be Revenue Neutral Or Increase Funding.

• Retain Position Allotments to Ensure Guaranteed # of Positions & Salary Levels.

• Non-Allotted Dollars for Longevity, Workers’ Comp, Leave Payouts, Disability & Unemployment to Remain Unchanged.

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MUST-HAVES FOR NCASA SUPPORT

• Retain Funding Formulas for Dollar Allotments for Use in Determining Each LEA’s Share but Distribute in Fewer Allotments with More Flexibility/Less Strings.

• PRC 030 (New District-Wide Support) & PRC 031 (Low Wealth/Small County) Would Have Open Chart of Accounts.

• All Current Transfer Flexibility to Be Retained/Enhanced.

• Future Increases in Dollar Allotments Must Cover Salary Increases & Related Benefits.

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ADDITIONAL RECOMMENDATIONS

• Allow Carryover of Consolidated PRC 030 until 8/31 Each Year.

• Consolidate PRC 007 & PRC 013 into PRC 001 if Practicable.

• Place PRC 012 (Driver Ed) in PRC 030 While Retaining Funding from State Highway Fund if Allowable.

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POINTS TO CONSIDER

• Will Allotment Consolidation Result in Less Funding from the General Assembly as Occurred in the 1990s?

• Is Allotment Reduction Tied to an Effort to Siphon Funds for Vouchers/Tax Credits?

• Will Some Districts Suffer at the Expense of Others Under Allotment Consolidation?

• NCASA, DPI & School Boards Association Oppose 1 Large Pot of Money Since It Will Be Harder to Put a Face on Cuts Applied Later.

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POSSIBLE BENEFITS

• Fewer Strings for Various Allotments.• More Flexibility & Local Control!

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NEXT STEPS FOR NCASA

• Response to the Legislative Proposal and the NCASA Alternative Needed From All Districts by 3/15!

• Send Comments & Responses by Email to kjoyce@ncasa.net

• 2nd Webinar to Be Held on 3/12 at 2:00 p.m. for LEAs Not Participating Today. Invitations to Come by Email.

• Response to Lawmakers to be Provided in Late March Before Senate Budget Rollout in April.

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REGULATORY REFORM FEEDBACK

• Jack Hoke Sending LEA Requirements Grid to RESA Directors & Superintendents Today.

• Each Grid Component Is Assigned to RESA for Review. (150+ items divided into 8 groups)

• All RESAS Asked to Fill in Comments about Each of Their Assigned Grid Components & Recommend “Keep, Revise, Study or Delete.”

• Completed Responses from RESAs Should Be Submitted to kjoyce@ncasa.net by 3/22/13 to Meet Bill Filing Deadline the Next Week.

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QUESTIONS?