North Carolina HB 365: Workforce Education Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 365

Short Title: Workforce Education Act. (Public)
Sponsors: Representatives Reives, Willis, Campbell, and Roberson (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 12, 2025
*H365-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 AND ESTABLISH 3
ENROLLMENT INCREASE RESERVE, TO EXPAND FUNDING FOR COOPERATIVE 4
INNOVATIVE HIGH SCHOOLS, TO CREATE GRANT PROGRAMS FOR THE 5
DEPARTMENT OF PUBLIC INSTRUCTION TO PROMOTE CTE PROGRAMS AND 6
OTHER EDUCATIONAL OPPORTUNITIES, AND TO PROMOTE COMMUNITY 7
COLLEGE ENROLLMENT TO PUBLIC SCHOOL STUDENTS. 8
The General Assembly of North Carolina enacts: 9
10
PART I. DIRECT THE STATE BOARD OF COMMUNITY COLLEGES TO REVISE 11
ITS FUNDING MODEL FOR COMMUNITY COLLEGES AND ESTABLISH 12
ENROLLMENT INCREASE RESERVE 13
SECTION 1.(a) The following session laws are repealed: 14
(1) Subsection (b) of Section 8.3 of S.L. 2011-145. 15
(2) Subsection (a) of Section 10.4 of S.L. 2013-360. 16
SECTION 1.(b) The State Board of Community Colleges shall revise its funding 17
formula for community colleges and allocate funds under that revised formula, beginning with 18
the 2025-2026 fiscal year, according to the following minimum criteria: 19
(1) Each community college shall continue to receive a base allocation of funds. 20
(2) In addition to the base allocation of funds, funds shall be provided to 21
community colleges based on the number of full-time equivalent (FTE) 22
students enrolled in the following: 23
a. Curriculum, workforce continuing education, and Basic Skills courses. 24
b. Courses and programming conducted under the Customized Training 25
Program and the Small Business Center Network. 26
(3) Community colleges shall calculate FTE enrollment as the higher of the 27
current year's total enrollment or the average enrollment of the last two 28
academic years. 29
(4) Funds allocated pursuant to subdivision (2) of this subsection shall be 30
weighted based on the workforce sector of each course, as determined by the 31
State Board. In making its determinations, the State Board shall consider 32
salary data and labor market demand for the applicable workforce sector. 33
SECTION 1.(c) G.S. 115D-5 is amended by adding a new subsection to read: 34

General Assembly Of North Carolina Session 2025
Page 2 House Bill 365-First Edition
"(aa) The State Board of Community Colleges shall review and revise, as necessary, its 1
workforce sector designations for curriculum, workforce continuing education, and Basic Skills 2
courses at community colleges by January 15, 2027, and every two years thereafter." 3
SECTION 1.(d) G.S. 115D-31(e) reads as rewritten: 4
"(e) If receipts for community college tuition and fees exceed the amount certified in 5
General Fund Codes at the end of a fiscal year, the State Board of Community Colleges shall 6
transfer the amount of receipts and fees above those budgeted to the Enrollment Growth Reserve. 7
may allocate those receipts to the community colleges for operating costs according to a formula 8
adopted by the State Board. Funds in the Enrollment Growth Reserve allocated pursuant to this 9
subsection shall not revert to the General Fund and shall remain available to the State Board until 10
expended. The State Board may allocate funds in this reserve to colleges experiencing an 11
enrollment increase greater than five percent (5%) of budgeted enrollment levels." 12
SECTION 1.(e) G.S. 115D-31 is amended by adding a new subsection to read: 13
"(e1) The State Board shall administer the Enrollment Increase Reserve as provided in 14
G.S. 115D-31.4." 15
SECTION 1.(f) Article 3 of Chapter 115D of the General Statutes is amended by 16
adding the following new section to read: 17
"§ 115D-31.4. Enrollment Increase Reserve. 18
(a) There is established the Enrollment Increase Reserve (Reserve) to be administered by 19
the State Board of Community Colleges. The purpose of the Reserve is to allow the State Board 20
to provide funds to community colleges to account for enrollment increases beyond budgeted 21
enrollment levels. 22
(b) Monies in the Reserve shall consist of funds appropriated by the General Assembly 23
in the Current Operations Appropriations Act for a fiscal year. The State Board shall include in 24
its annual enrollment request the appropriation to the Reserve that is needed to fund enrollment 25
increases in the next fiscal year. 26
(c) The State Board may allocate monies from the Reserve to a community college with 27
an eligible increase in full-time equivalent (FTE) enrollment according to a formula adopted by 28
the State Board. An eligible increase in FTE enrollment is either of the following: 29
(1) An increase in FTE enrollment of more than five percent (5%) o