Final
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GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2003
HOUSE BILL 1414
RATIFIED BILL
AN ACT TO MODIFY THE CURRENT OPERATIONS AND CAPITAL
APPROPRIATIONS ACT OF 2003 AND TO MAKE OTHER CHANGES IN THE BUDGET OPERATIONS
OF THE STATE.
The General Assembly of North Carolina enacts:
PART II. CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
SECTION 2.1.(a) Appropriations from the General Fund of the State for
the maintenance of the State departments, institutions, and agencies,
and for other purposes as enumerated are adjusted for the fiscal year
ending June 30, 2005, according to the schedule that follows. Amounts
set out in brackets are reductions from General Fund appropriations for
the 2004-2005 fiscal year.
Current Operations – General Fund 2004-2005
EDUCATION
Community Colleges System Office 31,612,319
Department of Public Instruction 122,269,724
University of North Carolina – Board of Governors 56,386,840
PART VIII. COMMUNITY COLLEGES
USE OF FUNDS FOR THE COLLEGE INFORMATION SYSTEM PROJECT
SECTION 8.1.(a) Funds appropriated to the Community Colleges System
Office for the College Information System Project shall not revert at
the end of the 2003-2004 fiscal year but shall remain available until
expended.
SECTION 8.1.(b) The Community Colleges System Office shall report on a
quarterly basis to the Joint Legislative Education Oversight Committee
on the implementation of the College Information System Project.
SECTION 8.1.(c) Subsection (a) of this section becomes effective June
30, 2004.
CARRYFORWARD FOR EQUIPMENT
SECTION 8.2.(a) Subject to the approval of the Office of State Budget
and Management and cash availability, the North Carolina Community Colleges
System may carry forward an amount not to exceed ten million dollars ($10,000,000)
of the operating funds held in reserve that were not reverted in fiscal
year 2003-2004 to be reallocated to the State Board of Community Colleges'
Equipment Reserve Fund. These funds shall be distributed to colleges consistent
with G.S. 115D-31.
SECTION 8.2.(b) This section becomes effective June 30, 2004.
SALARIES OF COMMUNITY COLLEGE FACULTY AND PROFESSIONAL STAFF
SECTION 8.3.(a) It is the intent of the General Assembly to establish
a community college faculty salary plan that (i) provides accountability
to the General Assembly, (ii) maintains local flexibility and autonomy
for the community colleges, and (iii) ensures that community college faculty
members have a uniform minimum salary based on level of education, equivalent
applicable experience, or both. It is imperative that the State move community
college faculty and professional staff salaries to the national average.
The estimated incremental costs of doing so over five years are thirty-three
million two hundred eighty-nine thousand three hundred seventy-one dollars
($33,289,371) for the 2004-2005 fiscal year, twenty-one million ninety-two
thousand sixty-six dollars ($21,092,066) for the 2005-2006 fiscal year,
twenty-one million five hundred seventy-four thousand five hundred three
dollars ($21,574,503) for the 2006-2007 fiscal year, twenty-two million
ninety-five thousand five hundred thirty-two dollars ($22,095,532) for
the 2007-2008 fiscal year, and twelve million four hundred twenty-seven
thousand five hundred thirty-one dollars ($12,427,531) for the 2008-2009
fiscal year.
SECTION 8.3.(b) The minimum salaries for community college faculty shall
be based on the following education levels:
(1) Vocational Diploma/Certificate or Less. – This education level includes
faculty members who are high school graduates, have vocational diplomas,
or have completed one year of college.
(2) Associates Degree or Equivalent. – This education level includes faculty
members who have an associates degree or have completed two or more years
of college but have no degree.
(3) Bachelors Degree.
(4) Masters Degree or Education Specialist.
(5) Doctoral Degree.
SECTION 8.3.(c) For the 2004-2005 school year, the minimum salaries
for nine-month, full-time, curriculum community college faculty shall
be as follows: House Bill 1414-Ratified Page 51
Education Level Minimum Salary
Vocational Diploma/Certificate or Less $28,512
Associates Degree or Equivalent $28,944
Bachelors Degree $30,817
Masters Degree or Education Specialist $32,478
Doctoral Degree $34,874.
No full-time faculty member shall earn less than the minimum salary for
his or her education level. The pro rata hourly rate of the minimum salary
for each education level shall be used to determine the minimum salary
for part-time faculty members.
SECTION 8.3.(d)
(1) It is the intent of the General Assembly to encourage community colleges
to make faculty salaries a priority and to reward colleges that have taken
steps to achieve the national average, therefore:
a. If the average faculty salary at a community college is one hundred
percent (100%) or more of the national average community college faculty
salary, the college may transfer up to eight percent (8%) of the State
funds allocated to it for faculty salaries.
b. If the average faculty salary at a community college is at least ninety-five
percent (95%) but less than one hundred percent (100%) of the national
average community college faculty salary, the college may transfer up
to six percent (6%) of the State funds allocated to it for faculty salaries.
c. If the average faculty salary at a community college is at least ninety
percent (90%) but less than ninety-five percent (95%) of the national
average community college faculty salary, the college may transfer up
to five percent (5%) of the State funds allocated to it for faculty salaries.
d. If the average faculty salary at a community college is at least eighty-five
percent (85%) but less than ninety percent (90%) of the national average
community college faculty salary, the college may transfer up to three
percent (3%) of the State funds allocated to it for faculty salaries.
e. If the average faculty salary at a community college is eighty-five
percent (85%) or less of the national average community college faculty
salary, the college may transfer up to two percent (2%) of the State funds
allocated to it for faculty salaries.
Except as provided by subdivision (2) of this subsection, a community
college shall not transfer a greater percentage of the State funds allocated
to it for faculty salaries than is authorized by this subsection.
(2) With the approval of the State Board of Community Colleges, a community
college at which the average faculty salary is eighty-five percent (85%)
or less of the national average may transfer a greater percentage of the
State funds allocated to it for faculty salaries than is authorized by
sub-subdivision e. of subdivision (1) of this subsection.
The State Board shall approve the transfer only for purposes that directly
affect student services. The State Board of Community Colleges shall adopt
rules to
implement the provisions of this subdivision.
(3) A local community college may use all State funds allocated to it
except for Literacy Funds and Funds for New and Expanding Industries to
increase faculty salaries.
Page 52 House Bill 1414-Ratified
SECTION 8.3.(e) As used in this section:
(1) "Average faculty salary at a community college " means the
total nine-month salary from all sources of all nine-month, full-time,
curriculum faculty at the college, as determined by the North Carolina
Community College System on October 1 of each year. (2) "National
average community college faculty salary" means the nine-month, full-time,
curriculum salary average, as published by the Integrated Postsecondary
Education Data System (IPEDS), for the most recent year for which data
are available.
SECTION 8.3.(f) The State Board of Community Colleges shall adopt rules
to implement the provisions of this section.
SECTION 8.3.(g) The State Board of Community Colleges shall report to
the appropriations subcommittees on education, the Speaker of the House
of Representatives, the President Pro Tempore of the Senate, the Fiscal
Research Division, and the Office of State Budget and Management by December
1, 2004, and every year thereafter through December 1, 2009, on the implementation
of this section.
SECTION 8.3.(h) Funds appropriated in this act for salary increases
shall be used to:
1) Implement the minimum salaries set out in subsection (c) of this section.
Funds shall be allocated to those colleges with faculty below the minimum
salary in each education level as determined by the North Carolina Community
College System. These funds shall only be used to bring the salaries of
full-time faculty members to the applicable minimum; and
2) Increase faculty and professional staff salaries by an average of two
percent (2%). These increases are in addition to other salary increases
provided for in this act and shall be calculated on the average salaries
prior to the issuance of the compensation increase. Colleges may provide
additional increases from funds available. The State Board of Community
Colleges shall adopt rules to ensure that these funds are used only to
move faculty and professional staff to the respective national averages.
These funds shall not be transferred by the State Board or used for any
other budget purpose by the community colleges.
MODIFY REPORTING REQUIREMENT FOR NEW AND EXPANDING INDUSTRY TRAINING
PROGRAM
SECTION 8.4. G.S.115D-5(i) reads as rewritten:
"(i) The State Board of Community Colleges shall report to the Joint
Legislative Education Oversight Committee on March 1 and October 1 September
1 of each year on expenditures for the New and Expanding Industry Program
each fiscal year. The report shall include, for each company or individual
that receives funds for New and Expanding Industry:
(1) The total amount of funds received by the company or individual;
(2) The amount of funds per trainee received by the company or individual;
(3) The amount of funds received per trainee by the community college
training the trainee;
(4) The number of trainees trained by company and by community college;
and
(5) The number of years the companies or individuals have been funded."
NEW AND EXPANDING INDUSTRIES TRAINING PROGRAM FUNDS
SECTION 8.5.(a) Funds available to the New and Expanding Industries Program
shall not revert at the end of the 2003-2004 fiscal year but shall remain
available until expended.
House Bill 1414-Ratified Page 53
SECTION 8.5.(b) This section becomes effective June 30, 2004. CENTER FOR
APPLIED TEXTILE TECHNOLOGY/MODIFY BOARD MEMBERSHIP SECTION 8.6. G.S. 115D-68
reads as rewritten:
"§ 115D-68. Creation of board of trustees; members and terms of office;
no compensation.
The North Carolina Center for Applied Textile Technology shall be managed,
subject to policies and regulations of the State Board of Community Colleges,
by a board of trustees. The board of trustees shall consist of the President
of the North Carolina System of Community Colleges and nine members appointed
by the Governor. The terms of office of the trustees appointed by the
Governor shall be as follows: Three of the trustees shall be appointed
for a term of two years; three for three years; and three for four years.
At the expiration of those terms, the appointments shall be made for periods
of four years. In the event of any vacancy on the board, the vacancy shall
be filled by appointment of the Governor for the unexpired term of the
member causing the vacancy. The members of the board of trustees appointed
by the Governor shall serve without compensation."
STUDY OF THE NORTH CAROLINA CENTER FOR APPLIED TEXTILE TECHNOLOGY
SECTION 8.6A.(a) The State Board of Community Colleges shall study the
North Carolina Center for Applied Textile Technology (NCCATT). In the
course of the study, the State Board shall consider:
(1) The mission and purpose of the Center;
(2) The Center's programs and course of study;
(3) Any duplication of courses offered by community colleges;
(4) The Center's expenditures, receipts, and potential funding mechanisms;
(5) The population served by the Center, including students and industry;
and
(6) The Center's status within the Community College System.
The State Board shall seek input, during the course of the study, from
representatives of the North Carolina textile industry, members of the
NCCATT Board of Trustees, the Department of Commerce, representatives
of the College of Textiles at North Carolina State University, the Director
of the Hosiery Technology Center at Catawba Valley Community College,
and other interested parties.
SECTION 8.6A.(b) The State Board shall determine whether the Center
should (i) remain an independent institution under the Community College
System, (ii) be administered by a community college, (iii) be dissolved
and the property transferred from State to county ownership, or (iv) be
otherwise administered. If the State Board determines that the Center
should remain an independent institution under the Community College System
or be administered by a community college, the State Board shall identify
necessary changes to the Center's organization and funding structure,
mission and purpose, programs or services currently offered, and governance.
SECTION 8.6A.(c) The State Board shall consult with the Education Subcommittee
of the Joint Legislative Commission on Governmental Operations on the
results of the study and shall provide a written report on the results
of the study to the Office of State Budget and Management, the chairs
of the Joint Legislative Education Oversight Committee, and the chairs
of the finance committees of the Senate and the House of Representatives,
no later than October 30, 2004.
SECTION 8.6A.(d) Notwithstanding Article 6 of Chapter 115D of the General
Statutes or any other provision of law, the State Board of Community Colleges,
Page 54 House Bill 1414-Ratified in consultation with the Office of State
Budget and Management, shall implement the results of the study by January
1, 2005.
FUNDS FOR THE BUREAU OF TRAINING INITIATIVES
SECTION 8.7.(a) The Community Colleges System Office may carry forward
the unexpended balance of funds appropriated for the 2003-2004 fiscal
year from the Worker Training Trust Fund to the Community College System
Office, Bureau of Training Initiatives. These funds shall be used for
pilot programs that support the retraining of the existing workforce in
new skills related to specific industry sectors. The purposes for which
the funds may be used in the pilot programs include targeted assessments,
training equipment, software, third-party trainers, and supplies and material
costs. Any unexpended balance remaining in this program shall revert to
the Worker Training Trust Fund on June 30, 2005.
SECTION 8.7.(b) This act becomes effective June 30, 2004. FUNDS FOR
THE COMPREHENSIVE ARTICULATION AGREEMENT STUDY
SECTION 8.8.(a) Section 8.12(h) of S.L. 2003-284 reads as rewritten:
"SECTION 8.12.(h) The University of North Carolina, Office of the
President, and the North Carolina Community College System shall each
transfer thirty-five thousand dollars ($35,000) to the Joint Legislative
Education Oversight Committee to carry out this study. Funds transferred
by the North Carolina Community College System that are not expended shall
not revert on June 30, 2004, but shall remain available for the 2004-2005
fiscal year to pay costs associated with the study."
SECTION 8.8.(b) This section becomes effective June 30, 2004.
REPORT ON THE ADEQUACY OF MULTICAMPUS AND OFF-CAMPUS CENTER FUNDS
SECTION 8.9. The General Assembly finds that additional data are needed
to determine the adequacy of multicampus and off-campus center funds;
therefore, multicampus colleges and colleges with off-campus centers shall
report annually, beginning September 1, 2005, to the Community Colleges
System Office on all expenditures by line item of funds used to support
their multicampuses and off-campus centers. The Community Colleges System
Office shall report on these expenditures to the Education Appropriation
Subcommittees of the House of Representatives and the Senate, the Office
of State Budget and Management, and the Fiscal Research Division by October
1 of each year.
Of the funds appropriated in this act for off-campus centers, ten thousand
dollars ($10,000) shall be used by the State Board to assist State Board-approved
centers with less than 50 FTE. The State Board shall allocate these funds
to qualifying colleges on the basis of actual FTE enrollment at the centers.
Notwithstanding any other provision of law, funds appropriated to the
Community Colleges System Office for multicampus colleges or off-campus
centers shall be used only for the administration of the multicampus college
or off-campus center for which the funds were allotted. These funds shall
not be transferred to any other campus or center, or used for any other
purpose.
MIDDLE COLLEGE START-UP FUNDS
SECTION 8.11.(a) Funds appropriated for a middle college program at
Edgecombe Community College shall not revert at the end of the 2003-2004
fiscal year but shall remain available until expended.
SECTION 8.11.(b) This section becomes effective June 30, 2004.
MATCHING FUNDS FOR THE CAREER START PROJECT
House Bill 1414-Ratified Page 55
SECTION 8.12. Community colleges may use funds earned through the continuation
education enrollment allotment for Human Resource Development Programs
to match federal grants for the Career Start Project.
STUDY OF FTE FUNDING FORMULA
SECTION 8.13. The State Board of Community Colleges shall consider modifications
to its funding formulas to ensure that colleges have sufficient funds
to adequately serve students when enrollment increases. In the course
of the study, the State Board shall consider methods of accurately projecting
enrollment for the upcoming academic year and using projected enrollment
in its funding formulas. The State Board shall also consider modifications
to its funding formulas to ensure that adequate funding is provided for
high-cost programs.
The State Board shall report the results of its study to the Joint Legislative
Education Oversight Committee and to the chairs of the appropriations
committees of the House of Representatives and the Senate by January 15,
2005.
CONTINGENCY RESERVES
SECTION 8.14. Funds are appropriated in this act for the 2004-2005 fiscal
year to create a contingency reserve fund for community college enrollment
increases. The State Board of Community Colleges shall use these funds
to:
(1) Increase the FTE allotment for the spring semester of the 2004-2005
school year at colleges that experience a total enrollment growth for
the fall semester of the 2004-2005 school year of over ten percent (10%).
Each such college shall receive an increase in its FTE allotment for the
spring semester equal to the amount the enrollment increase exceeded ten
percent (10%), insofar as funds are available within the enrollment reserve;
and
(2) Provide one-time grants to colleges in areas with high unemployment
due to manufacturing job losses. These funds shall be used only for additional
faculty, guidance counselors, financial aid officers, and equipment that
are necessary to meet the specific needs of the workers who are unemployed
due to manufacturing job losses.
Funds not expended or encumbered for this purpose shall revert to the
General Fund at the end of the 2004-2005 fiscal year. The State Board
of Community Colleges shall adopt rules to determine eligibility for funds
from the contingency reserve.
STATE BOARD RESERVE ALLOCATION FOR MAINTENANCE OF PLANT
SECTION 8.16. The State Board of Community Colleges may use up to one
hundred thousand dollars ($100,000) from the State Board Reserve for the
2004-2005 fiscal year to assist small rural low-wealth community colleges
with operation and maintenance of plant costs if they need to assist new
or expanding industries in their service delivery areas.
STATEWIDE MILITARY BUSINESS CENTER AND HOMELAND SECURITY BUSINESS INCUBATOR
SECTION 8.17.(a) The funds appropriated in this act to the Community
Colleges System Office for a military business center to provide for a
statewide system of military procurement shall be used as follows:
(1) The sum of two hundred thousand dollars ($200,000) shall be used by
the North Carolina Electronics and Information Technologies Association
to develop, in conjunction with MCNC, a proposal for the development and
operation of a homeland security business incubator. The North Carolina
Electronics and Information Technologies Association shall make a report
on this proposal to the Joint
Page 56 House Bill 1414-Ratified
Legislative Education Oversight Committee no later than February 28, 2005.
(2) The remainder of these funds shall be used for the development and
operation of a military business center by Fayetteville Technical Community
College. The military business center shall provide services to residents
and businesses throughout the State. These funds shall be used for:
a. The development and operation of a statewide business assistance center.
The purpose of the business assistance center is to serve as a coordinator
and facilitator for small- and medium-sized businesses throughout the
State seeking to win and complete military contracts. Activities of the
business assistance center shall include:
1. Training and mentoring eligible businesses on effectively marketing
their products and services to military clients and contracting offices.
2. Assisting eligible businesses with any required accreditations and
qualifications for government contracting.
3. Teaching eligible businesses about federal set-aside programs and how
to take advantage of these programs directly or through partnering with
other eligible businesses.
4. Training and assisting clients with the registration, proposal development,
and bidding processes related to military contracts.
5. Training eligible businesses on legal and regulatory compliance.
6. Designing and implementing mentoring programs to facilitate the development
of interrelationships between eligible businesses.
7. Forecasting the need for and assisting eligible businesses in obtaining
advanced certifications and accreditations and advanced manufacturing
skills and technologies.
8. Assisting eligible businesses in advising military clients on retaining
project funding.
9. Working with Small Business Centers throughout the State to carry out
these activities on a statewide basis.
b. The development and maintenance of an Internet-based system to match
the knowledge, skills, and abilities of active-duty military personnel,
veterans, and their families throughout the State with the needs of North
Carolina businesses.
c. The study of community resources and existing business capacity to
meet the current and future needs of the military and the development
of proposals for further developing community resources and developing
or recruiting new businesses to meet those needs.
d. The marketing of the services provided by the military business center.
e. The planning and implementation of the development of an industrial
park to house military contractors. These funds shall not revert at the
end of the fiscal year but shall remain available for expenditure for
these purposes.
SECTION 8.17.(b) G.S. 66-58(c) is amended by adding a new subdivision
to read:
House Bill 1414-Ratified Page 57
"(3b) The operation of a military business center by a community
college. For the purposes of this subdivision, the term 'military business
center' means a facility that serves to coordinate and facilitate interactions
between the United States Armed Forces; military personnel, veterans,
and their families; and private businesses."
SECTION 8.17.(c) Fayetteville Technical Community College shall report
to the Joint Legislative Education Oversight Committee prior to September
1, 2005, on expenditures of funds pursuant to this section.
PART XXXI. SALARIES AND EMPLOYEE BENEFITS GOVERNOR AND COUNCIL OF STATE/SALARY
INCREASES COMMUNITY COLLEGE PERSONNEL
SECTION 31.11. The Director of the Budget shall transfer to the North
Carolina Community College System Office from the Reserve for Compensation
Increases created in this act for fiscal year 2004-2005 funds necessary
to provide an annual salary increase of the greater of one thousand dollars
($1,000) or two and one-half percent (2.5%), including funds for the employer's
retirement and social security contributions, commencing July 1, 2004,
for all permanent full-time community college institutional personnel
supported by State funds.
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