Q&A with state regarding budget freeze

Earlier this month, the Governor and the Office of State Budget Management (OSBM) took additional measures to address North Carolina’s severe cash flow problem, which is being caused by an ongoing shortfall in revenue (tax) collections.

This directive by the state impacts spending for 2008-09 only. GCS asked the Office of State Budget and Management for clarification on the freeze; responses are below.

• Are the budget restrictions applicable to Learn and Earn (PRC 055) dollars?  Yes
  
• Can districts use state PRC 069 and PRC 072 dollars to pay teachers to attend student hearings (gateway and high school exit standards appeals)?  Yes
  
• GCS currently uses 072 and 069 funds to provide remediation for high school students who do not pass the EOC. The remediation is in preparation for required EOC retakes. Included in the costs are teachers, transportation and remediation supplies and materials. Will this be allowed?  Yes
  
• Schools have saved their 072 and 069 funds to provide during school and after school tutoring between now and the EOGs/EOCs. Many students are identified after third quarter benchmarks. Can districts continue with solicitation and payment of tutors for this purpose? What if a school has not completed the extended employment agreement prior to April 16th?  Schools may use the funds for remediation.
  
• GCS has several Judge Manning/Turnaround high schools that are implementing a required reform model. The reform models require schools to participate in professional development, including site visits by the reform model’s consultants.  The district is under contract with these companies. Some of the professional development days and site visits are scheduled between now and the end of the year. Since this is required by Judge Manning, can the district proceed with using these funds?  Unless there is a legal requirement, schools may not pay for professional development and/or related travel.
  
• Will districts be able to use state funds for summer school beginning on July 1? Districts will be able to have summer school; however, 069 or 072 funds must be present to carry over.  
  
• If a school ordered a class set of calculators needed for EOG/EOCs, and the calculators were not delivered by April 16, can they still purchase the equipment since it is necessary for EOG administration? Schools can purchase equipment that is necessary for EOGs/EOCs.
  
• Can teachers be paid for summer school in June? Yes
  
• Is a sign-on bonus for first year teachers included in the 2008-09 budget?  No
  
• Is there any way to “encumber” unspent 2008-09 PRC 072 & PRC 069 dollars to pay salaries of teachers for a summer school session that will start in June and operate through August?  The Office of State Budget and Management is not aware of any way to do this.