Keep Our Schools Standing Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 946

Short Title: Keep Our Schools Standing Act. (Public)
Sponsors: Senators Chitlik and Garrett (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S946-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ENACT THE KEEP OUR SCHOOLS STANDING BOND ACT OF 2026. 2
The General Assembly of North Carolina enacts: 3
SECTION 1.(a) Short Title. – This act shall be known as the "Keep Our Schools 4
Standing Bond Act of 2026." 5
SECTION 1.(b) Purpose. – It is the intent of the General Assembly by this act to 6
provide, subject to a vote of the qualified voters of the State, for the issuance of fifty billion 7
dollars ($50,000,000,000) general obligation bonds of the State for the purpose of provi ding 8
funds, with any other available funds, for public school facilities through grants to counties for 9
public school capital outlay projects and repairs and renovations. 10
SECTION 1.(c) Definitions. – Unless the context otherwise requires, the following 11
definitions apply in this section: 12
(1) Bonds. – Bonds issued under this section. 13
(2) Cost. – Without intending thereby to limit or restrict any proper definition of 14
this term in financing the cost of public school capital outlay projects 15
authorized by this section, any of the following: 16
a. The cost of constructing, reconstructing, enlarging, acquiring, and 17
improving projects and acquiring equipment and land therefor. 18
b. The cost of engineering, architectural, and other consulting services as 19
may be required. 20
c. Administrative expenses and charges, including expenses related to 21
determining compliance with applicable requirements of federal law 22
and expenses relating to issuance. Nothing in this section shall permit 23
use of bond funds to pay salaries or fees for bond administration; such 24
salaries and fees shall come from funds appropriated by the General 25
Assembly. 26
d. Finance charges and interest prior to and during construction and, if 27
deemed advisable by the State Treasurer, for a period not exceeding 28
three years after the estimated date of completion of construction. 29
e. The cost of bond insurance, investment contracts, credit enhancement 30
and liquidity facilities, interest rate swap agreements or other 31
derivative products, financial and legal consultants, and relat ed costs 32
of bond and note issuance, to the extent and as determined by the State 33
Treasurer. 34
f. The cost of reimbursing the State for any payments made for any cost 35
described in this subdivision. 36
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g. Any other costs and expenses necessary or incidental to th e purposes 1
of this section. 2
Allocations in this section of proceeds of bonds to the costs of a project or 3
undertaking in each case may include allocations to pay the costs set forth in 4
sub-subdivisions c. through g. of this subdivision in connection with t he 5
issuance of bonds for the project or undertaking. 6
(3) Credit facility agreement. – An agreement entered into by the State Treasurer 7
on behalf of the State with a bank, savings and loan association, or other 8
banking institution; an insurance company, rei nsurance company, surety 9
company, or other insurance institution; a corporation, investment banking 10
firm, or other investment institution; or any financial institution or other 11
similar provider of a credit facility agreement, which provider may be located 12
within or without the United States of America, such agreement providing for 13
prompt payment of all or any part of the principal or purchase price (whether 14
at maturity, presentment or tender for purchase, redemption, or acceleration), 15
redemption premium, if any, and interest on any bonds or notes payable on 16
demand or tender by the owner, in consideration of the State agreeing to repay 17
the provider of the credit facility agreement in accordance with the terms and 18
provisions of such agreement. 19
(4) Notes. – Notes issued under this section. 20
(5) Par formula. – Any provision or formula adopted by the State to provide for 21
the adjustment, from time to time, of the interest rate or rates borne by any 22
bonds or notes, including the following: 23
a. A provision providing fo r such adjustment so that the purchase price 24
of such bonds or notes in the open market would be as close to par as 25
possible; 26
b. A provision providing for such adjustment based upon a percentage or 27
percentages of a LIBOR rate, a prime rate, or base rate, wh ich 28
percentage or percentages may vary or be applied for different periods 29
of time; or 30
c. Such other provision as the State Treasurer may determine to be 31
consistent with this section and will not materially and adversely affect 32
the financial position of the State and the marketing of bonds or notes 33
at a reasonable interest cost to the State. 34
(6) Public school capital outlay project. – A project for the construction of one or 35
more new public school buildings or the renovation of one or more existing 36
public school buildings, for the building of technology infrastructure, for the 37
purchase of measures to ensure building security, for the purchase of 38
equipment for a public school building that has never been used for public 39
education purposes or equipment related to the improvement of an existing 40
public school building that will be used at the building or become affixed to 41
the building during its use for public education, for the purchase of land 42
necessary for construction to commence within 24 months of one or mo re 43
school buildings, and for other related capital outlay projects to provide 44
facilities for individual schools that are used for instructional or related 45
purposes. The term applies to facilities, infrastructure, security, and equipment 46
suitable for pre -kindergarten through grade 12 and applies to cooperative 47
innovative high schools, as defined in Part 9 of Article 16 of Chapter 115C of 48
the General Statutes, and facilities designed for high school courses that are 49
co-located on community college campuses. T he term does not include 50
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Senate Bill 946-First Edition Page 3
projects for facilities for centralized administration, trailers, relocatable 1
classrooms, or mobile classrooms. 2
(7) State. – The State of North Carolina. 3
SECTION 1.(d) Authorization of Bonds and Notes. – Subject to a favorable vote of 4
a majority of the qualified voters of the State who vote on the question of issuing bonds for capital 5
outlay projects for public schools and for capital outlay projects and repairs and re novations 6
funds for community colleges and The University of North Carolina in the election called and 7
held as provided in this section, the State Treasurer is hereby authorized, by and with the consent 8
of the Council of State, to issue and sell, at one ti me or from time to time, general obligation 9
bonds of the State to be designated "State of North Carolina Education Bonds," with any 10
additional designations as may be determined to indicate the issuance of bonds from time to time, 11
or notes of the State as provided in this section, in an aggregate principal amount not exceeding 12
fifty billion dollars ($50,000,000,000) for the purpose of providing funds, with any other 13
available funds, for the purposes authorized in this section. The principal amounts of bonds or 14
notes issued in any 12 -month period shall not exceed two hundred fifty million dollars 15
($250,000,000). In determining whether this limit has been reached, the issuance of a note or 16
bond to pay an outstanding note is not considered an issuance. 17
SECTION 1.(e) Use of Education Bond and Note Proceeds. – 18
(1) Subject to the provisions of subdivision (2) of this subsection, fifty billion 19
dollars ($50,000,000,000) of the proceeds of education bonds and notes, 20
including premium thereon, if any, shall be used for the purpose of making 21
grants to counties for paying the cost of public school capital outlay projects 22
and repairs and renovations in the amounts determined, in its discretion, by 23
the Department of Public Instruction to maximize the benefit of the funds. I n 24
making allocations of proceeds for the local school administrative unit, the 25
Department of Public Instruction shall take into account average daily 26
membership, whether the unit is located in a low-wealth county, average daily 27
membership growth over the past five years, and the age and condition of the 28
facilities of the unit. Any additional monies that may be received by means of 29
a grant or grants from the United States of America or any agency or 30
department thereof or from any other source to aid in finan cing the cost of 31
public school capital outlay projects authorized by this act may be placed by 32
the State Treasurer in the Education Bonds Fund or in a separate account or 33
fund and shall be disbursed, to the extent permitted by the terms of the grant 34
or grants, without regard to limitations imposed by this act. 35
(2) Special allocation provisions. – In determining the use of the proceeds of 36
education bonds and notes, including premium thereon, if any, set forth in this 37
act, the following special allocation provisions apply: 38
a. The proceeds shall be used for new construction or rehabilitation of 39
existing facilities and repairs and renovations. Any items purchased 40
with such proceeds and installed or replaced as part of a renovation or 41
rehabilitation must have a useful life of at least 10 years or must extend 42
the life of the facility by at least 10 years once renovated or 43
rehabilitated. 44
b. In the case of a local school administrative unit located entirely in one 45
county, the unit's total distribution amount shall be allocated to that 46
county. In the case of a local school administrative unit located in more 47
than one county, the unit's distribution amount shall be allocated 48
among the counties in which the unit is located in proportion to 49
average daily membership of the unit in each county. A unit's 50
distribution amount allocated to a county may be used only with 51
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respect to public school facilities of that unit. If two or more local 1
school administrative units are consolidated into one unit, the 2
distribution amounts deter mined pursuant to subdivision (1) of this 3
subsection for the units shall be considered the distribution amount for 4
the merged unit. 5
c. In determining between projects for which bond proceeds are 6
allocated, the Department of Public Instruction shall give 7
consideration to those projects that primarily involve materially 8
improving the energy efficiency of the school facility. 9
SECTION 1.(f) Allocation and Tracking of Proceeds. – 10
(1) Education bonds. – The proceeds of education bonds and notes, including 11
premium thereon, if any, except the proceeds of bonds, the issuance of which 12
has been anticipated by bond anticipation notes or the proceeds of refunding 13
bonds or notes, shall be placed by the State Treasurer in a special fund to be 14
designated "Education Bonds F und," which may include such appropriate 15
special accounts therein as may be determined by the State Treasurer and shall 16
be disbursed as provided in this section. Monies in the Education Bonds Fund 17
shall be allocated and expended as provided in this section. 18
Any additional monies that may be received by means of a grant or grants 19
from the United States of America or any agency or department thereof or 20
from any other source for deposit to the Education Bonds Fund may be placed 21
in the Education Bonds Fund or i n a separate account or fund and shall be 22
disbursed, to the extent permitted by the terms of the grant or grants, without 23
regard to any limitations imposed by this section. 24
Monies in the Education Bonds Fund or any separate account established 25
under this section may be invested from time to time by the State Treasurer in 26
the same manner permitted for investment of monies belonging to the State or 27
held in the State treasury, except with respect to grant money to the extent 28
otherwise directed by the terms of the grant. Investment earnings, except 29
investment earnings with respect to grant monies to the extent otherwise 30
directed or restricted by the terms of the grant, may be (i) credited to the 31
Education Bonds Fund or (ii) used to satisfy compliance with applic able 32
requirements of the federal tax law. 33
The proceeds of education bonds and notes, including premium thereon, 34
if any, may be used with any other monies made available by the General 35
Assembly for funding the projects authorized by this section, including the 36
proceeds of any other State bond issues, whether heretofore made available or 37
that may be made available at the session of the General Assembly at which 38
this section is ratified or any subsequent sessions. The proceeds of education 39
bonds and notes, inc luding premium thereon, if any, shall be expended and 40
disbursed under the direction and supervision of the Director of the Budget. 41
The funds provided by this section shall be disbursed for the purposes 42
provided in this section upon warrants drawn on the St ate Treasurer by the 43
State Controller, which warrants shall not be drawn until requisition has been 44
approved by the Director of the Budget and which requisition shall be 45
approved only after full compliance with the State Budget Act, Chapter 143C 46
of the General Statutes. 47
(2) Tracking of bond proceeds. – The State Treasurer or the State Treasurer's 48
designee is hereby authorized and directed to set up a comprehensive system 49
of tracking the proceeds of the education bonds and notes, including premium 50
thereon, if any, to the extent necessary to enable the State Treasurer or the 51
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Senate Bill 946-First Edition Page 5
State Treasurer's designee to properly account for the use of such proceeds for 1
compliance with applicable requirements of the federal tax law or otherwise. 2
All recipients of such proceeds shall comply with any tracking system 3
implemented by the State Treasurer or the State Treasurer's designee for this 4
purpose. The State Treasurer may withhold proceeds if the recipient fails to 5
comply with this subdivision. 6
(3) Costs. – Allocations to the costs of a capital improvement or undertaking in 7
each case may include allocations to pay the costs set forth in sub-subdivisions 8
c. through g. of subdivision (2) of subsection (c) of this section in connection 9
with the issuance of bonds for that capital improvement or undertaking. 10
SECTION 1.(g) Election. – The question of the issuance of the bonds authorized by 11
this section shall be submitted to the qualified voters of the State at an election to be held in 12
November of 2026. Any other primary, election, o r referendum, validly called or scheduled by 13
law at the time the election on the bond question provided for in this subsection is held, may be 14
held as called or scheduled. Notice of the election shall be given in the manner and at the times 15
required by G.S. 163A-769(8). The election and the registration of voters therefor shall be held 16
under and in accordance with the general laws of the State. Absentee ballots shall be authorized 17
in the election. 18
The Bipartisan State Board of Elections and Ethics Enforceme nt (State Board) shall 19
reimburse the counties of the State for all necessary expenses incurred in holding the election 20
that are in addition to those that would have otherwise been incurred, the same to be paid out of 21
the Contingency and Emergency Fund or other funds available to the State Board. 22
Ballots, voting systems authorized by Subpart 2 of Part 3 of Article 20 of Chapter 23
163A of the General Statutes, or both may be used in accordance with rules prescribed by the 24
State Board. The bond question to be used in the ballots or voting systems shall be in substantially 25
the following form: 26
"[ ] FOR [ ] AGAINST 27
The issuance of fifty billion dollars ($50,000,000,000) State of North Carolina 28
Education Bonds constituting general obligation bonds of the State secure d by a pledge of the 29
faith and credit and taxing power of the State for the purpose of providing funds, with any other 30
available funds, for public school facilities suitable for pre -kindergarten through grade 12 31
through grants for public school capital outlay projects." 32
If a majority of those voting on a bond question in the election vote in favor of the 33
issuance of the bonds described in the question, those bonds may be issued as provided in this 34
section. If a majority of those voting on a bond question in the election do not vote in favor of 35
the issuance of the bonds described in the question, those bonds shall not be issued. 36
The results of the election shall be canvassed and declared as provided by law for 37
elections for State officers; the results of the election shall be certified by the State Board to the 38
Secretary of State in the manner and at the time provided by the general election laws of the 39
State. 40
SECTION 1.(h) Issuance of Bonds and Notes. – 41
(1) Terms and conditions. – Bonds or notes may bear such date or dates, may be 42
serial or term bonds or notes, or any combination thereof, may mature in such 43
amounts and at such time or times, not exceeding 40 years from their date or 44
dates, may be payable at such place or places, either within or without the 45
United States of America, in such coin or currency of the United States of 46
America as at the time of payment is legal tender for payment of public and 47
private debts, may bear interest at such rate or rates, which may vary from 48
time to time, and may be made redeemable before maturity, at the option of 49
the State or otherwise as may be provided by the State, at such price or prices, 50
including a price less than the face amount of the bonds or notes, and under 51
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such terms and conditions, all as may be determined by the State Treasurer by 1
and with the consent of the Council of State. 2
(2) Signatures; form and denomination; registration. – Bonds or notes may be 3
issued as certificated or uncertificated obligations. If issued as certificated 4
obligations, bonds or notes shall be signed on behalf of the State by the 5
Governor or shall bear the Governor's facsimile signature, shall be signed by 6
the State Treasurer or shall bear the State Treasurer's facsimile signature, and 7
shall bear the Great Seal of the State of North Car olina or a facsimile thereof 8
shall be impressed or imprinted thereon. If bonds or notes bear the facsimile 9
signatures of the Governor and the State Treasurer, the bonds or notes shall 10
also bear a manual signature, which may be that of a bond registrar, tru stee, 11
paying agent, or designated assistant of the State Treasurer. Should any officer 12
whose signature or facsimile signature appears on bonds or notes cease to be 13
such officer before the delivery of the bonds or notes, the signature or 14
facsimile signature shall nevertheless have the same validity for all purposes 15
as if the officer had remained in office until delivery, and bonds or notes may 16
bear the facsimile signatures of persons who at the actual time of the execution 17
of the bonds or notes shall be the proper officers to sign any bond or note, 18
although at the date of the bond or note such persons may not have been such 19
officers. The form and denomination of bonds or notes, including the 20
provisions with respect to registration of the bonds or notes and an y system 21
for their registration, shall be as the State Treasurer may determine in 22
conformity with this section; provided, however, that nothing in this section 23
shall prohibit the State Treasurer from proceeding, with respect to the issuance 24
and form of the bonds or notes, under the provisions of Chapter 159E of the 25
General Statutes, the Registered Public Obligations Act, as well as under this 26
section. 27
(3) Manner of sale; expenses. – Subject to the consent of the Council of State, the 28
State Treasurer shall d etermine the manner in which bonds or notes shall be 29
offered for sale, whether at public or private sale, whether within or without 30
the United States of America, and whether by publishing notices in certain 31
newspapers and financial journals, mailing notice s, inviting bids by 32
correspondence, negotiating contracts of purchase, or otherwise, and the State 33
Treasurer is authorized to sell bonds or notes at one time or from time to time 34
at such rate or rates of interest, which may vary from time to time, and at such 35
price or prices, including a price less than the face amount of the bonds or the 36
notes, as the State Treasurer may determine. All expenses incurred in 37
preparation, sale, and issuance of bonds or notes shall be paid by the State 38
Treasurer from the proceeds of bonds or notes or other available monies. 39
(4) Notes; repayment. – 40
a. Subject to the consent of the Council of State, the State Treasurer is 41
hereby authorized to borrow money and to execute and issue notes of 42
the State for the same, but only in the following circumstances and 43
under the following conditions: 44
1. For anticipating the sale of bonds to the issuance of which the 45
Council of State shall have given consent, if the State Treasurer 46
shall deem it advisable to postpone the issuance of the bonds. 47
2. For the payment of interest on or any installment of principal 48
of any bonds then outstanding, if there shall not be sufficient 49
funds in the State treasury with which to pay the interest or 50
installment of principal as they respectively become due. 51
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3. For the renewal of any loan evidenced by notes herein 1
authorized. 2
4. For the purposes authorized in this section. 3
5. For refunding bonds or notes as herein authorized. 4
b. Funds derived from the sale of bonds or notes may be used in the 5
payment of any bond ant icipation notes issued under this section. 6
Funds provided by the General Assembly for the payment of interest 7
on or principal of bonds shall be used in paying the interest on or 8
principal of any notes and any renewals thereof, the proceeds of which 9
shall have been used in paying interest on or principal of the bonds. 10
(5) Refunding bonds and notes. – By and with the consent of the Council of State, 11
the State Treasurer is authorized to issue and sell refunding bonds and notes 12
pursuant to the provisions of the State Refunding Bond Act for the purpose of 13
refunding bonds or notes issued pursuant to this section. The refunding bonds 14
and notes may be combined with any other issues of State bonds and notes 15
similarly secured. 16
(6) Tax exemption. – Bonds and notes shall be exempt from all State, county, and 17
municipal taxation or assessment, direct or indirect, general or special, 18
whether imposed for the purpose of general revenue or otherwise, excluding 19
inheritance and gift taxes, income taxes on the gain from the transfer of bonds 20
and notes, and franchise taxes. The interest on bonds and notes shall not be 21
subject to taxation as to income. 22
(7) Investment eligibility. – Bonds and notes are hereby made securities in which 23
all public officers, agencies, and public bodies o f the State and its political 24
subdivisions; all insurance companies, trust companies, investment 25
companies, banks, savings banks, savings and loan associations, credit unions, 26
pension or retirement funds, other financial institutions engaged in business 27
in the State; executors, administrators, trustees, and other fiduciaries may 28
properly and legally invest funds, including capital in their control or 29
belonging to them. Bonds and notes are hereby made securities that may 30
properly and legally be deposited with and received by any officer or agency 31
of the State or political subdivision of the State for any purpose for which the 32
deposit of bonds, notes, or obligations of the State or any political subdivision 33
of the State is now or may hereafter be authorized by law. 34
(8) Faith and credit. – The faith and credit and taxing power of the State are hereby 35
pledged for the payment of the principal of and the interest on bonds and notes. 36
In addition to the State's right to amend any provision of this section to the 37
extent it does not impair any contractual right of a bond owner, the State 38
expressly reserves the right to amend any provision of this section with respect 39
to the making and repayment of loans, the disposition of any repayments of 40
loans, and any intercept provisions relating to the failure of a local government 41
unit to repay a loan, the bonds not being secured in any respect by loans, any 42
repayments thereof, or any intercept provisions with respect thereto. 43
SECTION 1.(i) Variable Interest Rates. – In fixing the details of bonds and notes, 44
the State Treasurer may provide that any of the bonds or notes may: 45
(1) Be made payable from time to time on demand or tender for purchase by the 46
owner thereof, provided a credit facility agreement supports the bonds or 47
notes, unless the State Treasurer specifically determines that a credit facility 48
agreement is not required, upon a finding and determination by the State 49
Treasurer that the absence of a credit facility agreement will not materially or 50
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adversely affect the financ ial position of the State and the marketing of the 1
bonds or notes at a reasonable interest cost to the State; 2
(2) Be additionally supported by a credit facility agreement; 3
(3) Be made subject to redemption or a mandatory tender for purchase prior to 4
maturity; 5
(4) Bear interest at a rate or rates that may vary for such period or periods of time, 6
all as may be provided in the proceedings providing for the issuance of the 7
bonds or notes, including, without limitation, such variations as may be 8
permitted pursuant to a par formula; and 9
(5) Be made the subject of a remarketing agreement whereby an attempt is made 10
to remarket bonds or notes to new purchasers prior to their presentment for 11
payment to the provider of the credit facility agreement or to the State. 12
If the aggregate principal amount repayable by the State under a credit facility 13
agreement is in excess of the aggregate principal amount of bonds or notes secured by the credit 14
facility agreement, whether as a result of the inclusion in the credit facility a greement of a 15
provision for the payment of interest for a limited period of time or the payment of a redemption 16
premium or for any other reason, then the amount of authorized but unissued bonds or notes 17
during the term of such credit facility agreement shall not be less than the amount of such excess, 18
unless the payment of such excess is otherwise provided for by agreement of the State executed 19
by the State Treasurer. 20
SECTION 1.(j) Interpretation of Section. – 21
(1) Additional method. – The foregoing subsect ions of this section shall be 22
deemed to provide an additional and alternative method for the doing of the 23
things authorized thereby and shall be regarded as supplemental and 24
additional to powers conferred by other laws and shall not be regarded as in 25
derogation of any powers now existing. 26
(2) Statutory references. – References in this section to specific sections or 27
Chapters of the General Statutes or to specific acts are intended to be 28
references to these sections, Chapters, or acts as they may be amended from 29
time to time by the General Assembly. 30
(3) Broad construction. – The General Assembly specifically has chosen to 31
combine what otherwise might be considered differing projects to be financed 32
into one bond bill and bond question because the General Assembly finds that 33
such differing projects, when taken together, constitute an interrelated, united, 34
and single plan for the State's infrastructure as stated aforesaid. Accordingly, 35
this section, being necessary for the health, welfare, and advancement of the 36
people of the State, shall be broadly construed to affect the purposes thereof. 37
(4) Inconsistent provisions. – Insofar as the provisions of this section are 38
inconsistent with the provisions of any general laws, or parts thereof, the 39
provisions of this section shall be controlling. 40
(5) Severability. – If any provision of this section or the application thereof to any 41
person or circumstance is held invalid, such invalidity shall not affect other 42
provisions or applications of this section that can be given eff ect without the 43
invalid provision or application and, to this end, the provisions of this section 44
are declared to be severable. 45
SECTION 1.(k) Other Agreements. – The State Treasurer may authorize, execute, 46
obtain, or otherwise provide for bond issuance, i nvestment contracts, credit and liquidity 47
facilities, interest rate swap agreements and other derivative products, and any other related 48
instruments and matters the State Treasurer determines to be desirable in connection with the 49
issuance of bonds and notes. 50
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SECTION 2. Each entity, upon receiving the proceeds of education bonds and notes, 1
including premium thereon, if any, issued pursuant to and for projects listed in Section 1 of this 2
act, shall administer, supervise, and ensure that use of the proceeds comport with t he purposes 3
provided in this act. Each local school administrative unit, along with the corresponding board 4
of county commissioners, shall jointly submit to the Department of Public Instruction a plan for 5
the expenditure of proceeds allocated to it under t his act. After the Department of Public 6
Instruction determines that a local school administrative unit's planned expenditure of part or all 7
of the proceeds allocated to it is within the purposes provided in this act, the Department of Public 8
Instruction sh all make the proceeds to which the plans apply available to the local school 9
administrative unit. Each local school administrative unit receiving the proceeds of education 10
bonds and notes, including premium thereon, if any, issued pursuant to Section 1 of this act shall 11
report by January 1, 2028, and quarterly thereafter, to the Department of Public Instruction on 12
the projects funded from education general obligation bonds authorized by Section 1 of this act, 13
and the Department of Public Instruction shall combine the reports and submit them to the Joint 14
Legislative Capital Oversight Committee, the House of Representatives Appropriations 15
Committee, and the Senate Committee on Appropriations/Base Budget. Each report shall include 16
the total project costs, the amount to be funded from the bonds, the expenditures to date from the 17
bonds and other sources, and the percentage of each project completed. 18
SECTION 3.(a) Projects funded in whole or in part with the proceeds of education 19
bonds and notes, including premium thereon, if any, issued pursuant to this act, and that portion 20
of funds estimated to be needed for escalation of costs shall remain with the Office of State 21
Budget and Management and shall be disbursed only for the following purposes: 22
(1) To address unforeseen contingencies related to the specific project for which 23
the funds were made available. 24
(2) To address inflation costs related to that specific project. 25
SECTION 3.(b) Any funds retained by the Office of State Budget and Management 26
pursuant to subsection (a) of this section at the time a project is completed shall be retained by 27
the Office of State Budget and Management. The Office of State Budget and Management shall 28
report on any funds retained pursuant to this subsection within 90 days of a project's completion. 29
SECTION 4. Notwithstanding the period of time provided in G.S. 163A-1045(a) for 30
which transfers are effective, transfers of voters from a given precinct, for the purpose of voting, 31
to an adjacent precinct for the election held in November of 2026 shall be for that election only 32
and shall not apply to any subsequent election. 33
SECTION 5. Any funds from the Education Bond expended for school technology 34
for public schools shall be reported to the State Board of Education and shall be credited against 35
the judgment in N.C. Sch. Bds. Ass'n. v. Moore, No. 98-CVS-14159 (N.C. Super. Ct.) 36
SECTION 6. This act is effective when it becomes law. 37