North Carolina SB 112: School Financial Flexibility Pilot Program.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 112

Short Title: School Financial Flexibility Pilot Program. (Public)
Sponsors: Senator Sawyer (Primary Sponsor).
Referred to: Rules and Operations of the Senate
February 18, 2025
*S112-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO CREATE A PILOT PROGRAM TO ALLOW MORE FINANCIAL AND HIRING 2
FLEXIBILITY FOR CERTAIN SCHOOL DISTRICTS. 3
The General Assembly of North Carolina enacts: 4
SECTION 1.(a) Authorize Financial and Hiring Flexibility Plan; Purpose. – Prior to 5
the 2026-2027 school year, an eligible district (District) may submit a Financial and Hiring 6
Flexibility Plan (FHFP) to the State Board of Education (State Board) to permit the local board 7
of education (local board) to decide certain matters related to the operation of the schools under 8
the local board's control within the District, including the use of State funds, as provided in this 9
act. The purpose of operating a District under an FHFP shall be for the local board to design and 10
create a comprehensive, innovative, strategic vision allowing additional flexibility to the District 11
to provide a high-quality education to all students. 12
SECTION 1.(b) For purposes of this act, "eligible district" means a local school 13
administrative unit that meets both of the following criteria: 14
(1) The local school administrative unit has the authority to levy and lay special 15
taxes for the payment of bonds issued by the governing body of the unit. 16
(2) The local school administrative unit had an allotted average daily membership 17
of at least 5,000 for the 2023-2024 school year. 18
SECTION 2.(a) Submission of an FHFP. – A local board desiring to operate under 19
an FHFP shall submit an FHFP that meets the requirements of this section to the State Board by 20
January 15, 2026, to begin operation of the plan with the 2026-2027 school year. The local board 21
shall include at least the following components in its FHFP: 22
(1) A resolution adopted by the local board to implement the FHFP in the District. 23
(2) A detailed description of how the flexibility allowed under the FHFP will aid 24
the District in meeting each of the following goals by the conclusion of the 25
2030-2031 school year: 26
a. Ensure that one hundred percent (100%) of all students have 27
completed a career development plan by the beginning of their senior 28
year of high school. 29
b. Increase teacher retention to a ninety percent (90%) retention rate. 30
c. Improve the average growth index of District schools to 0.50 or 31
greater. 32
d. Increase the growth rate of any subgroups of students below the 33
average growth rate in the 2024-2025 school year to above the average 34
overall growth rate for the State. 35

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 112-First Edition
e. Quantify all other measures of success of the FHFP in achieving the 1
goals established in the FHFP. 2
SECTION 2.(b) State Board Approval. – The State Board shall approve an FHFP 3
that meets the requirements of this section by March 15, 2026, to begin implementation July 1, 4
2026. 5
SECTION 2.(c) State Board of Education Review; Termination of Plan. – The State 6
Board shall conduct a review of the operation and student performance of a District operating 7
under an approved FHFP following the end of the 2030-2031 school year, and at least every three 8
years thereafter, to ensure that the District is meeting the expected academic goals set forth in the 9
FHFP and complying with all financial and observance requirements in this act. The State Board 10
shall terminate an FHFP after a review for any of the following grounds: 11
(1) Failure to meet the academic strategic goals for student performance 12
contained in the plan. 13
(2) Identification of the majority of schools in the District as low-performing 14
schools in the two school years immediately preceding the review. 15
(3) Failure to meet generally accepted standards of fiscal management or 16
violation of State or federal law. 17
SECTION 2.(d) Early Termination. – If the State Board determines that a District 18
operating under an approved FHFP has failed to meet generally accepted standards of fiscal 19
management or violated State or federal law at any time, the State Board shall terminate the 20
FHFP. In addition, if the Superintendent of Public Instruction (Superintendent) finds that 21
satisfactory progress is not being made toward the strategic goals identified in an FHFP after 22
reviewing the reports required to be submitted under Section 8 of this act, the Superintendent 23
shall recommend to the State Board that the FHFP be terminated. The State Board may terminate 24
an FHFP if such a recommendation is made by the Superintendent. If an FHFP is terminated, the 25
District shall continue to operate under the FHFP until the end of the school year in which the 26
termination determination is made. 27
SECTION 2.(e) Transition. – If an FHFP is terminated