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Voices of concern are growing louder as more and more individuals and institutions directly impacted by the new state budget signed by Gov. McCrory yesterday come to grasp what is actually in the 260 page document. As reported in the post immediately below and in this story by Sarah Ovaska on Wednesday, the list of changes buried in the fine print is long and full of significant policy decisions.

And as this story in today’s Charlotte Observer details, one of the most important and worrisome changes involves how the state funds public education:

A provision of the state budget that changes how schools are funded will put Charlotte-Mecklenburg Schools at a disadvantage in recruiting talented teachers and make planning much more difficult, Superintendent Heath Morrison said.

As part of the budget signed by Gov. Pat McCrory on Thursday, the state legislature will no longer automatically fund growth in public school enrollment. Districts had long used that assumption to plan their staffing ahead of the North Carolina budget debate each summer. Now, they will have to wait until after the legislature adjourns, or later, to learn how much money they’ll receive.

“We view it as a very radical change,” Morrison said Thursday.

Charlotte-Meck isn’t the only system worried. This is from Sarah Ovaska’s story: Read More

Governor McCrory signed a final budget into law for the current 2015 fiscal year, which runs from July 2014 through June 2015, this morning. The $21.1 billion budget includes new spending initiatives – largely pay raises for teachers and state employees – but fails to include additional revenue to sustain this spending in the long-term. Contrary to fueling North Carolina’s economic comeback, as Governor McCrory claims, the final budget continues to fund core public services at diminished levels, well below pre-recession levels, and compromises the ability of the state to get ahead and prepare for the future.  Moreover, it puts North Carolina on a fiscally irresponsible path that will continue to create budget challenges in the years ahead, largely as a result of the tax plan that was little debated and discussed in the final budget.

North Carolina faces a revenue challenge, and actions taken within the final budget make this reality clear. The final budget signed by the Governor spends every available dollar and uses dollars from last year’s budget as a result of the Governor requiring agencies to cut their respective budgets. No funding is available to build up the state’s Savings Reserve fund, which is meant to position the state to weather a future economic downturn. Furthermore, the budget relies on one-time funding sources that, once depleted, cannot be replenished with such low revenue and shifts funding for core public investments such as K-12 education to lottery receipts and early childhood programming to federal block grants.

Such budget decisions are driven largely by the tax plan the governor signed into law last year, which significantly reduces revenue available for public investments. Revised analysis by the General Assembly’s Fiscal Research Division estimates that the income tax rate cuts in the plan will cost at least $200 million more annually than initially expected – more than $1 billion less in annual revenue once the plan is fully implemented. The Governor and state policymakers failed to account for this reality in the final budget, which means that, absent new revenue, more budget cuts to core public services are likely to occur in future years as the tax plan continues to be implemented. Another round of tax cuts is set to occur in January 2015.

Under the final budget signed by the Governor, state spending remains 6.6 percent below pre-recession levels (see chart below). Read More

Governor Pat McCrory has said repeatedly he plans to sign the 2014 budget passed last week–and with pride, thanks in part to the fact that it preserves teacher assistant positions, which are particularly important to him.trackingCuts-web-600

But on the ground, we’re already seeing local school districts cutting teacher assistants positions as they are faced with sizable shortfalls in their budgets that were handed down from the General Assembly.

The Chief Financial Officer for the N.C. Department of Public Instruction, Philip Price, explained to N.C. Policy Watch last week that this year’s budget actually spends $105 million less on teacher assistants than was originally budgeted for 2014 last summer– and this move comes on top of years of huge cuts to TAs.

Here’s what we know so far:

Got more cuts to the classroom to report? Email me at lindsay@ncpolicywatch.com or give me an old-fashioned phone call at 919-861-1460. I’ll be Tracking the Cuts once again this year.

 

Last week, I wrote about a bill that the General Assembly passed that would allow private, for-profit charter school management companies to keep their employees’ salaries secret, even though they are paid with public funds.

That bill, SB 793, or ‘Charter School Modifications,’ also ended up with no protections for LGBT students at charter schools, even though an earlier version of the legislation did have that language in there.

So where’s the bill now? It’s currently waiting on Gov. McCrory’s signature, who has until Friday to sign it.

Previously he said he’d veto any bill that shielded charter school employees’ salaries from the public eye, but last we’ve heard from Gov. McCrory, he was working with his legal counsel to review just how good (or bad) a job this legislation does at keeping charter schools as transparent as their traditional public school counterparts.

Recently, eastern North Carolina charter school operator and profiteer Baker Mitchell has pushed back hard against having to disclose the salaries of his charter school employees, repeatedly batting away requests from local media and the N.C. Office of Charter Schools.

He is also a frequent campaign contributor, having given $8,000 to Gov. McCrory’s campaign and $5,000 to Sen. Jerry Tillman, a principal sponsor of S793.

Mitchell, who also sits on the N.C. Charter School Advisory Board and has a heavy hand in steering state-level charter school policy, submitted his resignation for his board seat to Senator Phil Berger last week, citing time constraints associated with too many commitments.

Along with fellow Board member Paul Norcross, who also submitted his resignation with a much more colorful letter, Mitchell has been a target of recent ethics complaints (see here and here), though no violations of state ethics law have been confirmed.

Stay tuned as we track this legislation.

Education-budgetLate last night, lawmakers released a final budget deal brokered between the House and Senate that provides pay raises for teachers and a number of other education funding adjustments.

There’s a lot to process in the mammoth document, so let’s just get started with the basics on education, and I promise you — there will be more to come.

Teacher Pay

Lawmakers say they’ve provided an average 7 percent pay increase for teachers in this budget, but there’s widespread dispute over that figure since longevity pay has been wrapped up into the pay raises.

To see a side-by-side comparison of the old and new teacher pay schedules, click here.

Senator Phil Berger called the teacher pay raise the largest in North Carolina’s history, although the folks at ProgressNC fact-checked that claim and found it to be false.

Teacher Assistants

Lawmakers say TAs are “preserved” this year in the budget, but there are a few catches.

Lottery revenues will pay for a share of the funding for teacher assistants, and a portion of TAs will also be funded with non-recurring funds – meaning there will be another fight to keep them next year.

Also mentioned at Tuesday’s press conference– $65 million that was supposed to pay for TAs was moved back into funding for teacher positions. But local superintendents have the “flexibility” to move that money back over and save more TAs.

*However, that figure is not apparent in the budget’s money report. What we do know, however, is that in the certified 2014-15 budget, TAs were slated to cost $477,433,254 — but this latest budget spends $368.3 million.

Finally, while most state employees will get a $1,000 raise, TAs only get a $500 raise, along with public school custodial workers, cafeteria workers and other non-certified and central office personnel.

Higher Education

While lawmakers said on Tuesday they were able to preserve current funding levels for the university system, what actually is in place is a now slightly increased $76 million dollar cut that was in the original two-year budget passed in July 2013, but not in the most recent budget proposals.

This cut comes on top of years of cuts to the university system that have resulted in thousands of lost jobs and eliminated courses.

In 2011, the state’s universities had to cut $80 million, or 3.4 percent of its overall budget. Five hundred classes were eliminated, 3,000 jobs were cut and another 1,500 vacant jobs were eliminated. In the four years prior to 2011, state funding to the university system was slashed by $1.2 billion. Read More