Bill > H490

This bill makes several significant changes to North Carolina's community college funding and fee structure. First, it directs the State Board of Community Colleges to revise its funding formula starting in the 2025-2026 fiscal year, shifting to a model that provides a base allocation to each college plus additional funding based on full-time equivalent (FTE) student enrollment in curriculum, workforce, and Basic Skills courses. The funding will be weighted according to workforce sector, considering salary data and labor market demand. The bill establishes an Enrollment Increase Reserve to provide additional funding to colleges experiencing significant enrollment growth, either through a more than 5% increase in a specific course category or a total increase of over 325 students. Additionally, the bill permits community colleges to implement a local tuition and fee surcharge of up to 10% of the statewide rate, with the collected funds restricted to instructional purposes. The State Board must review and report on the new funding model and surcharge expenditures, and the bill includes an appropriation of $93,019,556 for implementing the new funding formula and $6,000,000 for the Enrollment Increase Reserve. The bill is set to take effect on July 1, 2025, and aims to provide more flexible and responsive funding for community colleges in North Carolina.

Budget and Finance

https://www.ncleg.gov/BillLookUp/2025/H490