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Bill Summary · HB 457

HB 457 — Increase Small County Funding (North Carolina)

Status: Passed 1st Reading; enacted effective July 1, 2025
Introduced: (filed/prefiled during 2024–2025 session)
Subject areas: Appropriations; Budgeting; Counties; Public Education; Local school boards

Main purpose

To increase the per‑county supplemental allotments for “small county” school systems (small county school system supplemental funding) and provide an initial recurring appropriation to the Department of Public Instruction (DPI) to implement the increase for FY 2025–26.

Key provisions

  • Amends G.S. 115C‑472.23(a) (Small County School System Supplemental Funding) by increasing the dollar allotment provided to each eligible county school administrative unit based on its allotted ADM (average daily membership). The revised allotment schedule (new amounts) is:

    • Allotted ADM 0–1,300: $2,548,000
    • 1,301–1,700: $2,484,580
    • 1,701–2,000: $2,421,160
    • 2,001–2,300: $2,357,740
    • 2,301–2,600: $2,294,320
    • 2,601–2,800: $2,230,900
    • 2,801–3,300: $2,167,480

(These replace the prior allotment amounts in statute for the corresponding ADM bands.)

  • Section 2 appropriates $20,961,180 in recurring General Fund dollars to the Department of Public Instruction for the 2025–2026 fiscal year to implement the increased allotments.

  • Section 3 sets the effective date of the act as July 1, 2025.

Who is affected

  • Eligible small county school administrative units (county school systems whose allotted ADM falls within the listed bands up to 3,300 ADM) — these units will receive larger fixed supplemental allotments under the statute.
  • Department of Public Instruction — responsible for administering and distributing the supplemental allotments and implementing the appropriation.
  • State budget — recurring General Fund cost reflected by the appropriation; ongoing obligations will depend on continued appropriations and counts of eligible units.

Fiscal and operational impact

  • The act includes a recurring appropriation of $20,961,180 for FY 2025–26 to fund the change. Because the allotments are statutory and the appropriation is recurring, the State may have ongoing fiscal exposure in future budgets if the General Assembly continues the funding.
  • DPI will implement distribution changes beginning in the 2025–26 school year (effective July 1, 2025).

Procedural/timeline notes

  • The bill enacts the new allotment schedule and funds it for 2025–26; the statutory change takes effect July 1, 2025, aligning with the start of the fiscal/school year funding cycle.

Compiled from official sources — confirm details with the bill’s official record.

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