Guidelines for the Computations of Local Funding in Merger Plans that are Initiated and Completed by Local Boards and County Commissioners
|Policy Title||Guidelines for the Computations of Local Funding in Merger Plans that are Initiated and Completed by Local Boards and County Commissioners|
|Policy Category||Merger (MERG)|
|Previous Policy Dates||09/04/1991|
STATE BOARD OF EDUCATION GUIDELINES FOR COMPUTATION OF MINIMUM LOCAL FUNDING REQUIREMENT UPON MERGER OF SCHOOL SYSTEMS BY BOARDS OF COUNTY COMMISSIONERS
G.S. 115C-68.1, as enacted by the 1991 General Assembly, authorizes boards of county commissioners to adopt plans merging local school administrative units. Such plans must "provide local funding per average daily membership to the resulting local school administrative unit for subsequent years of at least the highest level of any local school administrative unit in the county during the preceding five fiscal years before the merger." The General Assembly has defined "local funding per average daily membership" to mean budgeted local expense per average daily membership," and has directed the State Board of Education to "establish guidelines for computation of this amount."
Pursuant to the General Assembly's direction, the State Board of Education hereby adopts the following guidelines for use by boards of county commissioners in determining minimum local funding requirements in mergers accomplished pursuant to G.S. 115C-68.1:
- For purposes of these guidelines:
- The "final average daily membership" is the total days in membership for all students over the school year divided by the number of days school was in session.
- The term "preceding five fiscal years" means the five full fiscal years preceding the effective date of a merger plan.
- The term "budgeted local expense" means the amount of funds provided by a county board of commissioners during a fiscal year to support the current expense and capital outlay needs of a local administrative unit as ascertained from the audited financial statements of a local school administrative unit or the unit's approved budget if an audited financial statement is not available. Funds from the following sources should be included in determining this amount:
- direct county appropriations:
- supplemental taxes levied pursuant to G.S. 115C-511 or local legislation;
- local sales taxes levied pursuant to Articles 39-42 of Chapter 105 of the GeneraL Statutes; and
- fines, penalties and forfeitures accruing to a local administrative unit under Article IX, § 7 of the Constitution
- Funds from the following sources need not be included in determining this amount:
- state appropriations, e.g., funds received from the Critical School Facility Needs Fund, G.S. 115C-489.1-.4 or Public School Building Capital Fund, G.S. 115C- 546.1;
- funds generated by a local administrative unit, e.g., gate receipts from athletic events or proceeds from the sale of surplus property; and
- proceeds from the sale of bonds or bond anticipation notes.
- A board of county commissioners shall determine its minimum funding requirement for the merged administrative unit for all years subsequent to merger by:
- dividing the budgeted local expense for each existing local administrative unit for each of the preceding five fiscal years by the unit's ADM for each of those years;
- selecting the highest amount obtained from these calculations; and
- multiplying that amount by the merged unit's ADM for the preceding school year.
- As provided by G.S. § 115C-68.1(d) the amount of the minimum local funding per average daily membership required to be provided for the merged unit shall be set forth as a part of the merger plan. Any variation from these guidelines in calculating that amount shall be explained and justified by the board of county commissioners in the merger plan.