Introduction created to support public education of North

Introduction

            The start of North Carolina’s education system was created when
the States Constitution of 1776 stated that a school or schools would be built
and established by the Legislature to teach the youth.  In the year 1817 Archiblad D. Murphey was the
first person to present to the General Assembly a plan or outline for them to
establish a public school fund and that a State Board be created to maintain
the funds that would be created for education. 
The State Board was established with six members: three came from the
east of Raleigh, NC and the other three came from the west of Raleigh, NC.  In 1825 the Literary Fund was created to
support public education of North Carolina. 
The fund contained bank stocks, sales from land, taxes, and etc.  The first school law of North Carolina was
passed in 1839. In 1855 the Literary Board was reestablished and it included
Governor, as ex-officio president, and three others with the appointee of the
Governor.  In 1913 the Compulsory Attendance
Act was established and required all children from the ages 8 to 12 to attend
school for at least four months a year. 
In 1942 the State Board of Education was created and the erased the
State School Commission. In 1985 the State Board of Education adopted a Basic
Education Program, but was never completely funded. In 1996 was when ABCs
started with grades K-8 and the first ABCs Accountability Report that focused
on school performance was submitted to the State Board of Education. In 1996
Charter Schools were now allowed to open. 
In 1999 the State Board of Education considered from the North Carolina
Committee on Standards of Accountability. North Carolina will need around 6,000
more teachers a year that is foreseen by population growth and teacher
shortages.  The Excellent Schools Act
increased based salaries, offers awards, and offers incentives for teacher
performance and professional development. North Carolina has the highest number
of National Board Certified teachers than any other state.  The Department of Education has several
incentive programs to promote improvement in North Carolina’s schools. 

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Budget Overview

             North
Carolina’s Department of Education creates the Education budget that is timed
every two years. The years always fall on an odd number year for example: 2017
and 2019. The Governor (director of state budget) of North Carolina is
responsible for the development of creating a set of spending priorities that
are based off the Department of Education recommendations and requests. This
list of the spending priorities is shown to the General Assembly. Legislators
take into consideration the list of spending priorities from the Governor and
offer their own list of spending priorities in the spring. The budget from the
General Assembly is typical presented to the Governor on June 30 of the fiscal
year.  The Governor has three options at
this time once the budget has been presented from the General Assembly: the
Governor can sign budget, veto the budget, or after ten days the budget will come
into effect. On the even number years such as 2016 and 2018 the Governor will
offer budget adjustment recommendations. 
Governor Cooper offered his budget on March 1, 2017 and he presented it
the General Assembly on March 2, 2017.

Expenditures

 North Carolina Education
expenditures are as follows: salary, employee benefits, purchased services,
supplies and materials, and capital. North Carolinas salary section are divided
up into: superintendent, assistant superintendent, finance officer, director/
supervisor, principal, assistant principal, teacher, certified instructional
support, supplement and differential, teacher aides, non-instructional support,
tutor, clerical, overtime pay, teacher substitute pay, bonus pay, mentor pay,
transportation personnel, and other that totaled 5,665,453,979 which was 69.71
percent of the budget. Purchased services are divided into contract services,
workshops, property services, communications, advertising, printing and
binding, and other purchased services that equaled 225,756,056 which was 2.78
percent of the budget. Employee’s benefits are separated into Employer’s Social
Security Cost, retirement cost, insurance benefits, longevity, bonus and annual
leave, and disability that equal 2,006,475,072 which is 24.69 percent of the
budget. Supplies and Materials are divided into Instructional supplies,
computer software and supplies, textbooks, library services, transportation,
and non-capitalized equipment that amounted to 225,756,056 which are 2.78
percent of the budget. Capital is split into equipment and drivers education
vehicle’s that equaled 12,872,047 which was .16 percent of the budget. Then
there was other that equaled 1,747,281 which was .02 percent of the budget.

Revenue

            North Carolina funding for Education mainly comes from three
sources: State funding, local funding, and Federal funding. State funding is
the main source for the funding of North Carolina’s schools which account for
65 percent of the funding for schools. Local funding comes from county
government and donations which accounts for 25 percent of the funding for
education. North Carolina also has Federal funding and this accounts for 10
percent of funding.  North Carolina’s
Department of Education has six classifications for North Carolina’s State
public school revenues. Taxes go directly to the General Fund unless the tax
has been marked for a certain purpose. The General Fund pays for many services
such as K- 12 education, colleges, universities, and corrections.  For the year 2016-2017 93 percent of the
funding from the General Funds supported the Department of Education.  The other 7 percent of state revenue given to
public schools include: lottery, fines and forfeitures, estimated sales tax
refund, and Indian gaming fund. The lottery provides support for
non-instructional support such as janitors, clerical, bus drivers, and
substitutes.  Fines and forfeitures are
all the fines from civil penalties, civil forfeitures, and civil fines to
support school technology and general school funding. Estimated sales tax
refund is an amount of money that is transfer from the Department of Revenue to
public schools to make up for the elimination of sales tax for school
purchases. Indian gaming fund supports funding for school textbooks. North
Carolina’s total amount of education funds for the 2017 year was around 9.4
billion dollars.

Cost Analysis

Cost Benefit Analysis allows K-12 school district administrators
to determine which programs and polices give the biggest return on
investment.  The first step to make when
creating a Cost Benefit Analysis would be determine the benefits of an existing
program or possible existing program and place a dollar value on those
benefits, next calculate the total cost of the program, and then compare the
benefits and the cost.  A challenge in
Cost Benefit Analysis is identifying all cost and benefits and giving them the
appropriate monetary value. Another challenge in the Cost Benefit Analysis
would be the geographical scope and populations that should be included. The
fixed cost is a cost that does not change or altered due to an increase or
decrease in student population. An example of a fixed cost would be a teacher’s
salary over a annual period. A variable cost is a cost that changes with growth
of student population or the decrease in student population. An example of
variable cost would be teachers and materials. Capital cost is a cost that is
used over a financial year. An example of this would be gym equipment,
computers, textbooks, and school buildings. The effective cost is the cost that
is per student that is allotted to educate that student.

Budget Challenges

            There are so many challenges when it
comes to an education budget. There are several factors that need to be
considering when considering a budget for a state’s education. The education
budget has to take into consideration what the income and expenditures are and
make sure that there is enough capital to create a school development
plan.  One issue for budgeting the North Carolina’s
education budget is the student population. 
The North Carolina education budget usually represents around 80 percent
of its budget toward staffing funding, which causes many issues in other areas
of the education budget. The budget needs to be prepared for any changes that
could happen to make sure that the budget is secured toward education.

Budget Recommendations

            The State Board of Education for North Carolina has
approved 2.5 million dollars of a budget cut to the state’s education budget.  Most of these cuts will come from staff cuts
that will equal into the amount of 1.6 million dollars. Then another almost
900,000 thousand dollars will be cut in operating reductions such as travel,
supplies, equipment, and training services. These areas of reduction in
teachers and reduction in operating reductions need to be seriously considered
over the next five years.  The North
Carolina Department of Education should consider reducing the budget in other
areas. North Carolina Department of Education should considered getting rid of
programs that show little to no growth on students. The department should also
considered getting rid of programs that duplicate other programs. The
department should take into consideration teacher’s training and education and
provided training that is only needed to the teachers that will benefit
students, parents, and staff.

Conclusion

            Schools are
dependable on a strong budget plan that can last many unseen issues or
challenges that could occur over the annual year. One way that the North
Carolina can manage to do this would keep a detailed financial management of
knowing where money is being spent on and where money is coming from. There are
several financial issues that the education department has to face, due to
budget cuts and deficits. Budget monitoring has become an important and
effective way to manage a productive and manageable education budget. North
Carolina should try to perfect budget monitoring to create the best possible
budget for education.

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