Bill
SB 540
SB 540 raises recurring state supplemental funding for small county school systems, boosting per-ADM allotments (by ADM bands) and appropriating $20,961,180 for FY 2025–26.
Status & Timing
- Bill: SB 540 — "Increase Small County Funding"
- Introduced: February 20, 2025
- Sponsor(s): Senators Hanig, Corbin, and Sanderson (primary sponsors)
- Current status: Passed 1st Reading
- Effective date (if enacted): July 1, 2025
- Implementation/administration: North Carolina Dept. of Public Instruction (DPI)
Purpose and intent
- Increase the state supplemental allotment paid to small county school administrative units (small county school system supplemental allotment) to provide additional recurring operating support to smaller, typically rural, school systems.
Key substantive provisions
- Amends G.S. 115C‑472.23(a) (Small county school system supplemental funding) by increasing the dollar allotments paid to eligible county school administrative units based on their allotted Average Daily Membership (ADM).
- New allotment amounts by ADM band (new amount; prior amount in parentheses):
- 0–1,300 ADM: $2,548,000 (was $1,820,000)
- 1,301–1,700 ADM: $2,484,580 (was $1,774,700)
- 1,701–2,000 ADM: $2,421,160 (was $1,729,400)
- 2,001–2,300 ADM: $2,357,740 (was $1,684,100)
- 2,301–2,600 ADM: $2,294,320 (was $1,638,800)
- 2,601–2,800 ADM: $2,230,900 (was $1,593,500)
- 2,801–3,300 ADM: $2,167,480 (was $1,548,200)
- Language retains the standard caveat that these allotments are provided “to the extent funds are made available.”
Appropriation and fiscal effect
- Appropriates $20,961,180 in recurring General Fund dollars to the Department of Public Instruction for FY 2025–26 to implement the increases.
- Because the appropriation is recurring, ongoing budgetary impacts should be expected in future fiscal years if the higher allotments continue.
Who is affected
- Direct beneficiaries: eligible small county school administrative units (school systems with ADM in the listed bands, i.e., up to 3,300 ADM).
- Indirectly affected: students, teachers, and local communities in small/rural counties who may benefit from increased local education funding; state budget planners because of recurring General Fund commitments.
Likely impact
- Provides a sizable per-district increase in supplemental funding for small counties, intended to improve capacity for operations, staffing, and services in smaller systems.
- Establishes a recurring state funding commitment; long‑term fiscal implications depend on future appropriations and whether the allotments remain at the increased levels.
Procedural note
- Text modifies an existing statutory allotment schedule; final implementation depends on passage and appropriation.
Compiled from official sources — confirm details with the bill’s official record.
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