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HB 601

Revise the Election Law

136th Legislature (2025-2026) Introduced by Bob Peterson and 1 co-sponsor

The bill commissions a study to evaluate and recommend changes to North Carolina community college funding (FTE formula, base allotments, course weightings) and accountability meas

Referred to committee
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Bill Summary · HB 601

HB 601 — Community Colleges Funding and Accountability Study

Status: Special Message Received From House (introduced Apr 17, 2025)
Primary subject: community colleges; funding formula; accountability; workforce alignment

Main purpose

Directs the State Board of Community Colleges to conduct a structured study and deliver a written report to the Joint Legislative Education Oversight Committee evaluating options to improve North Carolina’s community college funding model and institutional accountability measures. The bill itself does not change funding; it commissions analysis and recommendations that could inform future legislation.

Key provisions / required study tasks

The State Board must evaluate and report on, at minimum:

  • How funds are allocated to community colleges under the current FTE‑based formula, including consideration of:
    • Reducing the membership hours required to count as one FTE while maintaining current per‑FTE payments by course tier.
    • Increasing a base allotment provided to colleges and analyzing distributional effects across colleges of different sizes.
    • Revising the tiered course‑weighting model (e.g., increasing payments for certain tiers, expanding number of higher‑weighted courses).
    • Providing start‑up funding for new programs.
  • The effect of the FTE formula on small colleges and on colleges with many part‑time students — specifically comparing revenue generated by part‑time students with the academic and institutional supports those students require.
  • Institutional accountability and performance measures (under G.S. 115D‑31.3), including:
    • How current mandatory performance measures affect student success and college funding.
    • Recommendations for alternative or additional metrics to better capture student learning, success, and skills attainment.
  • Whether tiered course weightings reflect actual labor‑market demand across regions; the State Board must consult the Department of Commerce to identify (i) job fields with highest worker demand relative to course offerings and (ii) whether current funding encourages or discourages programs in high‑demand fields (STEM and technical trades such as plumbing, electrical, welding, etc.).
  • Any other recommendations the State Board deems relevant.

Who is affected

  • State Board of Community Colleges: charged with completing the study and report.
  • North Carolina community colleges: primary focus of the evaluation — especially small colleges and those serving many part‑time students.
  • Students (notably part‑time and workforce‑focused students) and employers seeking skilled workers in high‑demand fields.
  • Department of Commerce: consulted for labor‑market alignment analysis.
  • Joint Legislative Education Oversight Committee: recipient of the report, and potential user of any legislative follow‑up.

Timeline, deliverables, and procedural notes

  • Report due: original text required delivery by January 15, 2024; a later committee substitute set the reporting deadline as March 1, 2024. (The bill text contains both dates in different versions — the committee substitute extended the deadline to March 1, 2024.)
  • Deliverable: written report to the Joint Legislative Education Oversight Committee containing findings and recommendations.
  • Immediate fiscal effect: none — the bill mandates a study and report rather than direct funding changes.

Potential impact

  • Short term: provides lawmakers with an evidence base on how the funding formula and accountability measures affect access, program offerings, and student outcomes.
  • Long term: could lead to changes in the FTE formula, base allotments, course weighting, start‑up supports, and accountability metrics — with implications for college budgets, program availability (especially in high‑demand occupational areas), and support for part‑time students.

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

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