North Carolina HB 490: Propel NC Funding and Tuition Surcharge.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 490

Short Title: Propel NC Funding and Tuition Surcharge. (Public)
Sponsors: Representatives Winslow, Pickett, K. Hall, and Willis (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
March 25, 2025
*H490-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO DIRECT THE STATE BOARD OF COMMUNITY COLLEGES TO REVISE ITS 2
FUNDING MODEL FOR COMMUNITY COLLEGES TO ALIGN WITH THE PROPEL 3
NC FUNDING MODEL, TO ESTABLISH THE ENROLLMENT INCREASE RESERVE, 4
AND TO PERMIT COMMUNITY COLLEGES TO ESTABLISH A LOCAL TUITION 5
AND FEE SURCHARGE. 6
The General Assembly of North Carolina enacts: 7
8
PART I. DIRECT STATE BOARD OF COMMUNITY COLLEGES TO REVISE 9
FUNDING MODEL 10
SECTION 1.(a) The following session laws are repealed: 11
(1) Subsection (b) of Section 8.3 of S.L. 2011-145. 12
(2) Subsection (a) of Section 10.4 of S.L. 2013-360. 13
SECTION 1.(b) The State Board of Community Colleges shall revise its funding 14
formula for community colleges and allocate funds under that revised formula, beginning with 15
the 2025-2026 fiscal year, according to the following minimum criteria: 16
(1) Each community college shall continue to receive a base allocation of funds. 17
(2) In addition to the base allocation of funds, funds shall be provided to 18
community colleges based on the number of full-time equivalent (FTE) 19
students enrolled in the following: 20
a. Curriculum, workforce continuing education, and Basic Skills courses. 21
b. Courses and programming conducted under the Customized Training 22
Program and the Small Business Center Network. 23
(3) Funds allocated pursuant to subdivision (2) of this subsection shall be 24
weighted based on the workforce sector of each course, as determined by the 25
State Board. In making its determinations, the State Board shall consider 26
salary data and labor market demand for the applicable workforce sector. 27
SECTION 1.(c) G.S. 115D-5 is amended by adding a new subsection to read: 28
"(aa) The State Board of Community Colleges shall review and revise, as necessary, its 29
workforce sector designations for curriculum, workforce continuing education, and Basic Skills 30
courses at community colleges by July 15, 2028, and every three years thereafter." 31
SECTION 1.(d) No later than April 1, 2027, the Community Colleges System Office 32
shall report to the Joint Legislative Education Oversight Committee on the revisions to its funding 33
formula for community colleges pursuant to subsection (b) of this section, including the structure 34

General Assembly Of North Carolina Session 2025
Page 2 House Bill 490-First Edition
of the revised formula, the process for implementing the revised formula, and any recommended 1
changes to the revised formula. 2
SECTION 1.(e) There is appropriated from the General Fund to the State Board of 3
Community Colleges for the 2025-2026 fiscal year the sum of ninety-three million nineteen 4
thousand five hundred fifty-six dollars ($93,019,556) in recurring funds to implement the 5
revisions to the funding formula required by subsection (b) of this section. 6
7
PART II. ENROLLMENT INCREASE RESERVE 8
SECTION 2.(a) G.S. 115D-31(e) reads as rewritten: 9
"(e) If receipts for community college tuition and fees exceed the amount certified in 10
General Fund Codes at the end of a fiscal year, the State Board of Community Colleges shall 11
transfer the amount of receipts and fees above those budgeted to the Enrollment Growth Reserve. 12
may allocate those receipts to the community colleges for operating costs according to a formula 13
adopted by the State Board. Funds in the Enrollment Growth Reserve allocated pursuant to this 14
subsection shall not revert to the General Fund and shall remain available to the State Board until 15
expended. The State Board may allocate funds in this reserve to colleges experiencing an 16
enrollment increase greater than five percent (5%) of budgeted enrollment levels." 17
SECTION 2.(b) G.S. 115D-31 is amended by adding a new subsection to read: 18
"(e1) The State Board shall administer the Enrollment Increase Reserve as provided in 19
G.S. 115D-31.4." 20
SECTION 2.(c) Article 3 of Chapter 115D of the General Statutes is amended by 21
adding the following new section to read: 22
"§ 115D-31.4. Enrollment Increase Reserve. 23
(a) There is established the Enrollment Increase Reserve (Reserve) to be administered by 24
the State Board of Community Colleges. The purpose of the Reserve is to allow the State Board 25
to provide funds to community colleges to account for enrollment increases beyond budgeted 26
enrollment levels. 27
(b) Monies in the Reserve shall consist of funds appropriated by the General Assembly 28
in the Current Operations Appropriations Act for a fiscal year. The State Board shall include in 29
its annual enrollment request the appr