Agenda Item 1-B - Public School Forum Local School Finance Study

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ATTACHMENT B Apart from the constitutional provisions,a major change in the Over time the delineations proscribed by the School Machinery school funding structure occurred during the Great Depression. Acts and the School Budget and Fiscal Control Act have given Under the School Machinery Act(enacted in 1931 and amended way to increased local investment in instructional expenses. Even in 1933),the state assumed responsibility for all current expens- so,the North Carolina Supreme Court has made clear that it is es necessary to maintain a minimum eight-month school term the state that bears responsibility for fulfilling the constitutional and an educational program of basic content and quality(in- obligation to guard and maintain the right of every North Carolina structional and program expenses). In exchange for the state's child to receive a"sound basic education."Leandro v.North Caroli- expanded role, local governments assumed responsibility for na,346 N.C.336(1997). school construction and maintenance(capital expenses).The School Machinery Act established counties as the basic unit for operating public schools,which is maintained today with large The North Carolina Supreme Court has made county-wide school systems,except in the 11 counties that also clear that it is the state that bears responsibility have city school systems. for fulfilling the constitutional obligation to guard In 1975,the General Assembly enacted the School Budget and and maintain the right of every North Carolina Fiscal Control Act,which delineated responsibility for school child to receive a "sound basic education." funding: To ensure a quality education for every child in North Carolina has been engaged in litigation defending its North Carolina,and to assure that the necessary system of school finance for more than twenty years.The legal resources are provided, it is the policy of the State action was instigated in part by spending inequities between low- of North Carolina to provide from State revenue wealth and higher-wealth counties—inequities that persist today. sources the instructional expenses for current operations of the public school system as defined in the standard course of study. It is the policy of the State of North Carolina that the facilities requirements for a public education system will be met by county governments. SOURCESOF • SCHOOL ulTHE LEANDRO CASE governments"Because the North Carolina Constitution expressly states that units of local 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 .- Leandro v.State,488 S.E.2d .. 7<