Agenda - 05-26-2016 - 2B - Public School Forum Local School Finance Study

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Apart from the constitutional provisions,a major change in the As noted in the introduction,over time the delineations proscribed school funding structure occurred during the Great Depression. by the School Machinery Acts and the School Budget and Fiscal Under the School Machinery Act (enacted in 1931 and amended Control Act have given way to increased local investment in in 1933),the state assumed responsibility for all current expenses instructional expenses. Even so,the North Carolina Supreme necessary to maintain a minimum eight-month school term Court has made clear that it is the state that bears responsibility and an educational program of basic content and quality for fulfilling the constitutional obligation to guard and maintain (instructional and program expenses). In exchange for the the right of every North Carolina child to receive a "sound basic state's expanded role,local governments assumed responsibility education." Leandro v. North Carolina,346 N.C.336(1997). for school construction and maintenance(capital expenses). The School Machinery Act established counties as the basic unit for operating public schools,which is maintained today The North Carolina Supreme Court has made with large county-wide school systems,except in the 11 counties clear that it is the state that bears responsibility that also have city school systems. for fulfilling the constitutional obligation to guard In 1975,the General Assembly enacted the School Budget and maintain the right of every North Carolina and Fiscal Control Act,which delineated responsibility for child to receive a "sound basic education." school funding: To ensure a quality education for every child in North Carolina has been engaged in litigation defending its system North Carolina, and to assure that the necessary of school finance for almost twenty years.The legal action was resources are provided, it is the policy of the State instigated in part by spending inequities between low-wealth of North Carolina to provide from State revenue and higher-wealth counties.These inequities persist today. In sources the instructional expenses for current 2013-14,the state's ten highest-spending counties spent an average operations of the public school system as defined of$57,497 more per classroom than the ten lowest-spending in the standard course of study. It is the policy counties.This large gap exists primarily because of the variation of the State of North Carolina that the facilities in property wealth across the state.The wealthiest counties requirements for a public education system will have$1,877,434 in real estate capacity available per student, be met by county governments. compared with the poorest counties,which have approximately $355,534 in real estate capacity available per student.This gap has widened by over$1 million since the North Carolina Supreme Court's Leandro decision in 1997. ISOURCES OF LOCAL SCHOOL FINANCE LAW: THE LEANDRO CASE "Because the North Carolina Constitution expressly states that units of local governments with financial responsibility for public education may provide additional funding to supplement the educational programs provided by the state,there can be nothing unconstitutional about their doing so or in any inequality of opportunity occurring as a result...Clearly then,a county with greater financial resources will be able to supplement its programs to a greater degree than less wealthy counties, resulting in enhanced educational opportunity for its students." Leandro v. State,488 S.E.2d 249(N.C.1997). 7<