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What this week’s court order means for N.C.’s unpaid $730 million tab to school districts

Running out the clock, it seems, is not an option for remedying North Carolina’s $730 million technology tab to local school districts.

That’s the takeaway from Wake Superior Court Judge Vince Rozier’s order this week extending a hefty judgement against the state for civil penalties unconstitutionally diverted from schools from 1996 to 2005.

A judge sided with local districts in their case against the state in 2008, but that order was set to expire last year until school board leaders filed a new suit.

Meanwhile, the state — which is not contesting its lingering bill — has been non-committal in addressing their debt. Funds would be used exclusively for school tech.

At least 30 percent of school districts say they don’t have the money to meet the state’s goal for replacing mobile devices every four years, according to the N.C. School Boards Association, which advocates for local boards of education.

Minnie Forte-Brown

“In this ever-changing, high-tech world, that’s unacceptable,” Minnie Forte-Brown, immediate NCSBA past president, said in a statement this week.

The 2008 ruling set the bill, but the courts agree they do not have the power to direct the state in the manner of how they repay their debt. State agencies have only paid about $18 million of the original $750 million ruling.

That leaves school boards waiting to see if and when North Carolina lawmakers take action, no sure thing when state school leaders regularly wage bruising battles with legislators over K-12 cash.

At the very least, the expired ruling means lawmakers won’t get a pass by virtue of the clock.

Read Ed NC‘s report on the ruling below:

A Wake County Superior Court Judge extended a nearly $730 million judgment against the state today for failing to give money received from civil penalties to school districts.

A 2008 court decision said the state owed the public schools almost $750 million in civil penalties collected by state agencies. Since the decision, the state’s public schools have only received about $18 million.

The crux of the issue revolves around the time period between 1996 and 2005, when the state held back money that the courts later said was owed to the state’s public schools under the state constitution. While schools have been receiving the money they’re owed since then, districts are still trying to collect on money owed prior to 2005.

Back in August, The North Carolina School Boards Association (NCSBA) and other plaintiffs refiled the lawsuit because the original judgment was only valid for 10 years and a second lawsuit had to be filed to keep it alive.

“We are pleased that the court extended the judgment against the state,” said Billy Griffin, president of the NCSBA and chairman of the Board of Education in Jones County, in a press release. “These funds are vitally important to public schools across the state because there is certainly no shortage of needs for technology.”

The money from the judgment is meant to be spent on technology, because that is what it was originally meant to be used for.

Historically, the General Assembly has taken no action to repay the money from the judgment, but that appears to be changing. A provision in the House construction bond bill filed by Speaker Tim Moore, R-Cleveland, addresses the issue. It says that funds used from the construction bond for school technology shall be credit against that $730 million judgment.

“NCSBA continues to stress to the General Assembly the need to develop a payment structure to return the funds due to the public school students of this state for technology. We are encouraged by the inclusion in Speaker Moore’s bond proposal that any funds used for technology will be credited against the judgment. This is the first of several steps necessary to address the judgment for several years,” said Leanne Winner, NCSBA director of governmental relations, in a press release.

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