1. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION NC is unique from other states in the percentage of funds contributed by the State, for Public Education. Most other state school systems are primarily funded by locally driven initiatives such as property taxes and local bond issues. Financial Flexibility with State Funds: North Carolina is Unique

2. What State Money Is Available To Local Education Agencies?

3. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Position Allotments LEAs receive a position (or month of employment), and no matter where the person falls on a salary schedule, the state picks up the tab for the salary and benefits. So… a state paid teacher with 5 years experience costs the same to an LEA as a state paid teacher with 25 years experience, they both = 1 position. Types of State Funding

4. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Dollar Allotments These funding streams are allocated as dollars and the LEA must live within the total $$’s provided. Types of State Funding

5. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Categorical Allotments These supplemental appropriations are allocated to address specific disparity issues or specific populations. The LEA must live within the total $$’s provided but can determine how to utilize the funding to meet their specific needs. Types of State Funding

6. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Guaranteed Allotments (Other Funding Areas) Several cost areas are not allotted or are allotted for the specific amount of the cost. Examples include ABCs incentive awards, longevity, annual leave, mentor pay, and workers compensation. Types of State Funding

7. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Know What You Want To Do! Do a data-driven problem analysis to determine how to focus on school reform. The local board and central office must be the school's biggest supporters. Finance & Personnel areas MUST work together to ensure your LEA is maximizing your #1 Resource. Financial Flexibility

8. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Currently, the key to State funding flexibility is to determine ways to utilize State funding to ‘free- up’ local funding. For example, you could convert one teacher month of employment and transfer $4,400 to instructional supplies. You could then code local expenditures previously expended for instructional supplies to the State and ‘free-up’ $4,400 of local funds for any purpose. How Can an LEA Maximize It’s Resources?

9. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Position Allotments  CONVERT POSITIONS TO DOLLARS Teachers If the school can organize so that the State mandated class size maximums are not exceeded, the teacher positions can be used for any needed program or population without a waiver. Financial Flexibility Ideas

10. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Position Allotments Teachers A guaranteed teaching position can be used for one teacher for 10 months, 10 teachers for 1 month, 200 teachers for 1 day, or 400 teachers for ½ of a day. Financial Flexibility Ideas

11. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Position Allotments Instructional Support You can use Instructional Support positions as teachers: To reduce class sizes Create a permanent substitute position Add additional teachers to a school to free- up an additional period a day for your teachers. Financial Flexibility Ideas

12. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Position Allotments Assistant Principals For every month a school has a vacant Assistant Principal position, an LEA has access to: Approximately $5,500 for a teacher or supplies or staff development. Note: Each year the actual conversion $ will change as the average salary changes. Financial Flexibility Ideas

13. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Position Allotments Principals For every month a school does not have a Principal, an LEA has access to: Approximately $6,300 for clerical support for teachers, tutors, or telephones. Note: Each year the actual conversion $ will change as the average salary changes. Financial Flexibility Ideas

14. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Dollar Allotments Funds can be transferred easily between Textbooks and Classroom Supplies and Material or vice-versa. The Textbook fund carries over on June 30th. Financial Flexibility Ideas Use a teacher assistant in a K-5 school as an assistant in the computer lab at that school or have 2 classrooms share a teacher assistant and use the money to employ another teacher.

15. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Dollar Allotments A school could include in its school improvement plan the transfer of staff development funds to Classroom Materials/Instructional Supplies and Equipment for the purpose of upgrading and enhancing computer technology in the school. Financial Flexibility Ideas

16. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Categorical Allotments If your LEA employs Retired Teachers (where the teacher will not lose their retirement benefits), employ them in categorical allotments. This will save you matching benefit cost for retirement and hospitalization … thus increasing your spending power. Financial Flexibility Ideas

17. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Categorical Allotments An elementary school uses At-Risk funding to employ a half-time computer technologist to work with students in the classroom four afternoons a week. Every Tuesday, teachers attend workshops and/or receive instruction from the computer technologist. Financial Flexibility Ideas

18. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Categorical Allotments Use your At-Risk funding or Improving Student Accountability Funding to: Employ teachers to work in after- school tutoring. Employ a teacher to work on Saturdays with students that need extra help. Financial Flexibility Ideas

19. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Categorical Allotments Low Wealth Supplemental Funding can be used for any instructional activity, staff development, and to pay local supplements. Plan on using any increase in funding in a new and innovative way. Financial Flexibility Ideas

20. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Categorical Allotments Small County Supplemental Funding can be used for any activity which includes local supplements. Plan on using any increase in funding in a new and innovative way. Financial Flexibility Ideas

21. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Local priorities and local funding availability also dictate how much state flexibility can be employed. Limitations of Flexibility Primary use of State Funds is for Salaries and inherently “recurring” costs (95%). Legislation within each of the funding programs limits the use and potential for funds flexibility.

22. PUBLIC SCHOOLS OF NORTH CAROLINA STATE BOARD OF EDUCATION DEPARTMENT OF PUBLIC INSTRUCTION Work With Finance Officer, Personnel Administrator and School Improvement Team to Develop a Budget and Plan Don’t ask or pursue without thinking about where the train will take you. Does flexibility/consolidation lead to reductions? … it has. Does consolidation lead to a loss of identity? … remember community colleges. And Finally remember steel tariffs! A Few More Thoughts …