H1031 - Local Education Funding Dispute Process. (SL 2018-83)

Overview: S.L. 2018-83 makes adjustments to the local education funding dispute process, including all of the following:

• Eliminates actions in superior court when there is a dispute between a local board of education and a board of county commissioners as to the necessary appropriation for local current expenses.
• If the local board of education and the board of county commissioners are unable to reach an agreement through mediation, the amount to be appropriated by the board of county commissioners to the local current expense fund would be determined by a formula.
• Local boards of education can continue to file an action in superior court when no agreement is reached through mediation on the amount of money to be appropriated for the capital outlay fund.
• The Local Government Commission and the School of Government at the University of North Carolina at Chapel Hill are required to convene a working group to develop and recommend statutory parameters for fund balances maintained by local boards of education and for disputes related to the capital outlay fund. The working group must report no later than March 30, 2019 to the Joint Legislative Education Oversight Committee.

This act became effective June 25, 2018 and applies to budget ordinances adopted on or after that date.