Teacher Salary Supplement/Guilford Cnty Schs.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 285

Short Title: Teacher Salary Supplement/Guilford Cnty Schs. (Public)
Sponsors: Senators Robinson and Garrett (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 17, 2025
*S285-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO AUTHORIZE SUPPLEMENTAL FUNDS FOR TEACHER COMPENSAT ION 2
FOR THE 2025 -2027 FISCAL BIENNIUM AND TO INCLUDE GUILFORD CO UNTY 3
SCHOOLS AS ELIGIBLE TO RECEIVE THOSE FUNDS. 4
The General Assembly of North Carolina enacts: 5
SECTION 1.(a) Use of Funds. – For each year of the 2025 -2027 fiscal biennium, 6
except as provided in subsection (g) of this section, the State Board of Education shall allocate 7
funds pursuant to this section to eligible local school administrative units to provide sala ry 8
supplements to teachers and qualifying school administrators in those units. Allocation of salary 9
supplements among teachers and qualifying school administrators within each eligible local 10
school administrative unit, including whether a teacher or quali fying school administrator 11
receives a salary supplement and the amount of the supplement provided to that person, shall be 12
determined in the discretion of the local board of education of the eligible unit, except that no 13
individual salary supplement shall exceed the per teacher funding amount awarded to that unit 14
pursuant to subdivision (4) of subsection (c) of this section. 15
SECTION 1.(b) Definitions. – As used in this section, the following definitions shall 16
apply: 17
(1) Adjusted market value of taxable real property. – A county's assessed taxable 18
real property value, using the latest available data published by the 19
Department of Revenue, divided by the county's sales assessment ratio 20
determined under G.S. 105-289(h). 21
(2) Composite value. – For each eligible county, the sum of the following: 22
a. The taxable real property factor multiplied by sixty -five percent 23
(65%). 24
b. The median household income factor multiplied by twenty -five 25
percent (25%). 26
c. The effective tax rate factor multiplied by ten percent (10%). 27
(3) County allocation factor. – For each eligible county, the supplement factor for 28
that county divided by the sum of all supplement factors for the State. 29
(4) Effective tax rate. – The actual county tax rate multiplied by the most recent 30
annual sales assessment ratio for that county. 31
(5) Effective tax rate factor. – For each eligible county, the effective tax rate for 32
that county divided by the median effective tax rate in the State. 33
(6) Eligible county. – One of the following: 34
a. A county that has an adjusted market value of taxable real property of 35
less than fifty billion nine hundred million dollars ($50,900,000,000). 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 285-First Edition
b. Guilford County. 1
(7) Eligible local school administrative unit. – A local school administrative unit 2
located in whole or in part in an eligible county. 3
(8) Eligible school. – A public school that is located in an eligible county and 4
governed by a local school administrative unit. 5
(9) Maintenance of effort amount. – For each local school administrative unit in 6
each fiscal year, the supplant factor multiplied by the total State and non-State 7
funds expended for salaries for teachers from the fiscal year for which the 8
most recent salary data are available. 9
(10) Median household income. – A county's median household income for the 10
most recent 1 2 months for which data are available, as that term is used in 11
G.S. 143B-437.08. 12
(11) Median household income factor. – For each eligible county, the median 13
household income in the State divided by the median household income for 14
that county. 15
(12) Non-State funds. – Any funds held by a local school administrative unit, other 16
than nonrecurring federal funds received as a result of legislation enacted by 17
Congress in response to COVID-19, that are not State funds. 18
(13) Qualifying school administrator. – Any of the following: 19
a. Assistant principals paid pursuant to G.S. 115C-285(a)(8). 20
b. Principals paid pursuant to G.S. 115C-285(a)(8a). 21
(14) Supplant factor. – For each local school administrative unit in each fiscal year 22
of the fiscal biennium, the total non -State funds expended for salary 23
supplements for teachers in the 2020 -2021 fiscal year divided by the total 24
State and non-State funds expended for salaries for teachers in the 2020-2021 25
fiscal year. 26
(15) Supplement factor. – For each eligible county, the composite value multiplied 27
by the number of State -funded teachers employed in a school in the county 28
that is governed by a local school administrative unit. 29
(16) Taxable real property factor. – For each eligible county, the median adjusted 30
market value of ta xable real property in the State divided by the adjusted 31
market value of taxable real property for that county. 32
(17) Teacher. – Teachers and instructional support personnel. 33
SECTION 1.(c) Allocation of Funds. – The State Board of Education shall allocate 34
funds for salary supplements to eligible local school administrative units according to the 35
following procedure: 36
(1) County allocation. – For each eligible county, the State Board shall determine 37
a county allocation by multiplying the county allocation factor for that county 38
by the funding amount appropriated pursuant to this section for the applicable 39
fiscal year. 40
(2) Per teacher funding amount. – For each eligible county, the State Board shall 41
determine a per teacher funding amount by dividing the county allocation 42
amounts determined pursuant to subdivision (1) of this subsection by the total 43
number of State -funded teachers employed in all eligible schools in that 44
county. 45
(3) Unit funding amount. – For each eligible local school administrative unit, the 46
State Board shall determine the funding amount for that unit based on the per 47
teacher funding amount or amounts for the eligible county or counties where 48
the unit is located. For each county with an eligible school governed by the 49
unit, the State Board shall multiply the applicable per teacher funding amount 50
for that county determined pursuant to subdivision (2) of this subsection by 51
General Assembly Of North Carolina Session 2025
Senate Bill 285-First Edition Page 3
the number of State -funded teachers employed in the eligible school in that 1
county. If the unit is located in multiple eligible counties, the State Board shall 2
aggregate those amounts. 3
(4) Allocation and funding cap. – The State Board shall allocate the amount 4
determined pursuant to subdivision (3) of this subsection to each eligible local 5
school administrative unit for each applicable fiscal year, up to a maximum of 6
five thousand dollars ($5,000) per State-funded teacher. 7
SECTION 1.(d) Charter Schools. – Funds appropriated to the Department of Public 8
Instruction pursuant to this section shall be subject to the allocation of funds for charter schools 9
described in G.S. 115C-218.105. The General Assembly encourages charter schools receiving 10
funds pursuant to this section to provide salary supplements to teachers and qualifying school 11
administrators in the charter school in accordance with the requirements of this section. 12
SECTION 1.(e) Formula for Distribution of Supplemental Funding Pursuant to this 13
Section Only. – The formula in this section is solely a basis for distribution of supplemental 14
funding to eligible local school administrative units and is not intended to reflect any measure of 15
the adequacy of the educational program or funding for public schools. The formula is also not 16
intended to reflect any commitment by the General Assembly to appropriate any additional 17
supplemental funds for eligible local school administrative units. 18
SECTION 1.(f) Nonsupplant Requirement. – A local school administrative unit that 19
receives funds under this section shall use those funds to supplement non -State funds provided 20
for salary supplements f or teachers and qualifying school administrators and shall not use any 21
State funds, including funds received under this section, Section 7A.4 of S.L. 2023 -134, or 22
Section 7A.12 of S.L. 2021-180, to supplant non-State funds provided for salary supplements for 23
teachers and qualifying school administrators. For purposes of this section, a local school 24
administrative unit has supplanted non -State funds if the State Board finds that the amount of 25
non-State funds expended by the unit for salary supplements was less than ninety -five percent 26
(95%) of the maintenance of effort amount for the local school administrative unit. 27
SECTION 1.(g) Nonsupplant Enforcement. – The State Board of Education shall 28
not allocate any funds under this section to a local school administrative unit if it determines that 29
the unit has supplanted non-State funds in violation of subsection (f) of this section. 30
SECTION 1.(h) Reports. – No later than April 15 of each year of the 2025 -2027 31
fiscal biennium, the State Board of Education shall re port the following information for the 32
applicable fiscal year to the Joint Legislative Education Oversight Committee and the Fiscal 33
Research Division: 34
(1) A list of all eligible counties and eligible local school administrative units. 35
(2) Funds allocated to each eligible local school administrative unit. 36
(3) The percentage and amount of teachers and qualifying school administrators 37
in each eligible local school administrative unit receiving salary supplements. 38
(4) The average salary supplement amount in eac h eligible local school 39
administrative unit. 40
(5) The range of salary supplement amounts in each eligible local school 41
administrative unit. 42
(6) The effect of the salary supplements on the retention of teachers and 43
qualifying school administrators in eligible local school administrative units. 44
(7) The identity of any local school administrative unit that the State Board 45
determines has supplanted funds. 46
SECTION 2. This act becomes effective July 1, 2025. 47