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FY 2010-11 STATE AID ALLOCATIONS AND BUDGET POLICIES

STATE BOARD OF COMMUNITY COLLEGES DIVISION OF BUSINESS AND FINANCE AUGUST 3, 2010 (AMENDED AND REVISED PER STATE BOARD ACTION APPROVED ON SEPTEMBER 16, 2010)

On August 3, 2010, the Finance Committee of the State Board of Community Colleges met and approved the FY 2010-11 State Aid Allocations and Budget Policies as described by FC-1 dated 8/3/10. On August 20, 2010, the full State Board ratified the actions taken by the Finance Committee. The formula allocations included in this document were based on an employer contribution rate of 9.15% to the Teachers' and State Employees' Retirement System (TSERS) On August 24, 2010, the Office of State Budget and Management issued a memo that increased the TSERS employer contribution rate to 10.51% effective July 1, 2010. It also authorized the release of State funds held in reserve that represented 1.36%, the difference between the original (9.15%) and revised (10.51%) rates. On September 16, 2010, the State Board approved the allocation of additional funds to the colleges to support this rate increase. A college's supplemental allocation is equal to the difference between 1) its formula allocation calculated using the higher employer contribution rate and 2) its formula allocation as approved by the Finance Committee and ratified by the State Board in August. This document reflects the incorporation of these supplemental funds into the colleges' allocations.

The following pages of this document have been revised as amended by the State Board's September 16th action: 8, 11-13, 15-17, 19-23, 59, 62-65, 71, and 105-108.

TABLE OF CONTENTS

I. II. Purpose Statement ............................................................................................................... 1 Guidelines Related to State Salaries of Community College Employees ........................ 3 A. Salaries of Community College Faculty, Professional Staff, and Other State-Supported Positions ......................................................................................................................... 3 B. Establishment of Minimum Salaries for Faculty ............................................................ 4 C. College Presidents' State Salaries .................................................................................. 5 D. Employer Contribution Rates and Longevity ................................................................. 8 III. Budget Allocations ............................................................................................................. 11 A. Formula Budget ­ Current Operating ........................................................................... 13 B. Categorical Allocations ................................................................................................ 23 B1. Multi-Campus Colleges ........................................................................................ 23 B2. Health Sciences Programs..................................................................................... 25 B3. Technical Education.............................................................................................. 28 B4. Vocational Education (Federal) ­ CFDA #84.048A............................................. 30 B5. Tech Prep (Federal) ­ CFDA #84.243A ............................................................... 32 B6. Child Care ............................................................................................................. 34 B7. Small Business Centers ......................................................................................... 36 B8. Customized Training ............................................................................................. 40 B9. Special High Cost Program Allotment ................................................................. 47 B10. B11. Equipment........................................................................................................ 49 Instructional Resources.................................................................................... 55

C. Specific Program Categorical Allocations ................................................................... 57 D. Allocation of Management Flexibility Reduction ........................................................ 59 E. Summary of College Allocations ................................................................................. 62 IV. Use of State Funds and Budget Flexibility ....................................................................... 67 A. Use of State Funds ........................................................................................................ 67 B. Cash Management ........................................................................................................ 67 C. Instructional Salary Transfer Limitations..................................................................... 68 D. Authority to Use Funds for Campus Security .............................................................. 70 E. Authority to Use Funds for Maintenance of Plant ....................................................... 72 F. No State Funds for Intercollegiate Athletics ................................................................ 72 V. Tuition and Fees ................................................................................................................. 73 A. Curriculum Tuition Rates ............................................................................................. 73 B. Continuing Education Occupational Extension Registration Fees............................... 73

C. Tuition Waivers ............................................................................................................ 73 D. Tuition Refunds ............................................................................................................ 75 E. Estimated Receipts ....................................................................................................... 75 VI. Other Budget Policy Issues ............................................................................................... 77 A. Joint High School Programs ......................................................................................... 77 B. Prison Inmates .............................................................................................................. 79 C. Financial Aid ................................................................................................................ 80 Appendix A: Relevant Excerpts from S.L. 2009-451 ............................................................... 81 Appendix B: Relevant Excerpts from S.L. 2010-31 ................................................................. 91 Appendix C: Revised Purpose and Vocational Codes ........................................................... 105 Appendix D: FY 2010-11 Key Formula Values...................................................................... 107 Appendix E: FY 2010-11 Per Capita Rates ............................................................................ 108

I.

Purpose Statement

Through S.L. 2010-31, the 2010 Session of the General Assembly enacted changes to the budget for the North Carolina Community College System for FY 2010-11, communicated directives for studies and required reports, and made policy changes that require State Board action. These actions and adjustments are required to assure appropriate fiscal control with respect to the allocation of resources, and as such require the State Board's deliberation and approval. Furthermore, G.S. 115D-5(a) provides that "The State Board of Community Colleges may adopt and execute such policies, regulations and standards concerning the establishment, administration, and operation of institutions as the State Board may deem necessary ... to provide for the equitable distribution of State and federal funds to the several institutions." G.S. 115D-31 further describes the State Board's responsibility to provide, "from sources available to the State Board," financial support to the institutions. It is the purpose of this document to allocate funds to the colleges and adopt necessary policies consistent with Session Law 2010-31 (S897) and in compliance with G.S. 115D-5(a) and G.S. 115D-31. It is the responsibility of the colleges to ensure that State and federal funds are expended consistent with the policies herein.

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II.

A.

Guidelines Related to State Salaries of Community College Employees

Salaries of Community College Faculty, Professional Staff, and Other State-Supported Positions 1. Per Section 26.1A.(a) of S.L. 2009-451, the salaries in effect for faculty, professional staff, and other community college positions supported by State funds on June 30, 2009, or the last pay date in pay status during FY 2008-09 if earlier, shall remain in effect for FY 2010-11 except as provided in #2 and #3 below. Notwithstanding #1 above, Section 26.1A.(a) of S.L. 2009-451 allows for faculty salary increases as provided by Section 8.1 of S.L. 2009-451. Section 8.1 of S.L. 2009-451 sets out the Community College Faculty Salary Plan. This plan authorizes community colleges to use all State funds allocated to it, except funds appropriated for Literacy or Customized Training, to increase faculty salaries. This plan also requires colleges to adhere to the minimum faculty salaries outlined in Section B. These minimum salaries apply to both newly hired and existing faculty. Notwithstanding #1 above, Section 26.1A.(a)(4) of S.L. 2009-451 allows for certain salary adjustments for non-faculty. Salaries may be increased for reallocations or promotions, in-range adjustments for job change, career progression adjustments for demonstrated competencies, or any other adjustment related to an increase in job duties or responsibilities. All other salary increases for non-faculty community college employees are prohibited, including pay increases that would normally be provided to non-faculty solely for degree attainment. 23 NCAC Subchapter 2D.0101(a) states in part that "salary increases shall be granted annually...." Colleges may not, however, grant salary increases allowable under #2 or #3 above in the fourth quarter of fiscal year 2010-11. Colleges may not make "bonus payments" or salary supplements to either presidents, faculty, or staff from State funds in FY 2010-11. Note that this includes Teaching in Excellence awards. Performance funding has not been approved for FY 2010-11; therefore, bonus payments authorized by G.S. 115D-31.3 also may not be provided. Per 23 NCAC 02D.0101, the State Board shall adopt a minimum and maximum amount of State funds which may be paid to any full-time employee of the college paid with State funds. With the exception of the college president, the minimum amount is $23,168 and the maximum amount is $120,576 for FY 2010-11. Since the General Assembly did not provide for a legislative salary increase in FY 2010-11, these limits have not changed from FY 2009-10.

2.

3.

4.

5.

6.

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B.

Establishment of Minimum Salaries for Faculty Since the General Assembly failed to provide a legislative salary increase in FY 2010-11, the minimum faculty salaries adopted by Section 26.11A of S.L. 2008-107 remain in effect for FY 2010-11. These minimums shall be implemented per the following guidelines: 1. Definitions of Educational Levels: The minimum salaries for community college faculty shall be based upon the following educational levels:

Vocational Diploma, Certificate or Less ­ This education level includes faculty members who are high school graduates, have vocational diplomas, or have completed one year of college. Associate Degree or Equivalent ­ This education level includes faculty members who have an associate's degree or have completed two or more years of college, but have no degree. Bachelor's Degree. Master's Degree or Education Specialist. Doctoral Degree.

2.

Full-Time Faculty Minimum Salaries: No nine-month, full-time curriculum faculty member shall earn less than the minimum salary for his or her education level, regardless of whether their degree is applicable to what they are teaching. Since the General Assembly did not provide for a legislative salary increase, the minimum salaries for full-time faculty described in #4 below are unchanged from FY 2008-09. Part-Time Faculty Minimum Salaries: Section 26.11A of S.L. 2008-107 states, "The pro-rata hourly rate of the minimum salary for each education level shall be used to determine the minimum salary for part-time faculty members." The pro-rata hourly rate of the minimum salary for adjunct faculty is calculated by dividing the full-time faculty minimum by 1560 hours (number of hours for 9/12th of a work year). The FY 2010-11 minimum salaries for part-time faculty are fifteen percent (15%) above these derived minimums based on the minimum salaries for full-time faculty. This is consistent with the 2005 agreement between the System Office and the North Carolina Association of Community College Presidents. The State Board establishes the "contact hour" as the standard unit of measure. Minimum Faculty Salaries by Education Level: For FY 2010-11 fiscal year, the minimum salaries for community college faculty shall be:

Education Level Vocational Diploma, Certificate or Less Associates Degree or Equivalent Bachelors Degree Masters Degree or Education Specialist Doctoral Degree Full-Time Faculty (9-month Contract) $34,314 $34,819 $37,009 $38,952 $41,753 Part-Time Faculty (Hourly Rate) $25.29 $25.67 $27.28 $28.71 $30.78

3.

4.

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C.

College Presidents' State Salaries Per 23 NCAC 02D .0101(c), the State Board shall adopt a state salary schedule for presidents in the system. A president's placement on the schedule is based on the size of the institution and years of eligible experience per the provisions of 23 NCAC 02D.0101(c). The size of the institution is determined by the total FTE served and reported in the enrollment reports furnished the System Office, including both budget and non-budget FTE. 1. No Legislative Salary Increase: Per Section 26.1A of S.L. 2009-451, the General Assembly did not appropriate funds for a legislative salary increase. Consequently, the Presidents' Salary Schedule remains unchanged from FY 2008-09 levels. No Experience-Based Step Increase: Consistent with the salary freeze enacted by S.L. 2009-451, presidents shall not advance one step on the Presidents' Salary Schedule. Grade Adjustments Allowable: If a college's institutional grade changed due to enrollment growth, the president of that college may be paid according to his/her new position on the Presidents' Salary Schedule. This adjustment is allowable under Section 26.1A.(a)(4) of S.L. 2009-451.

2.

3.

Other than the grade adjustment allowable under #3 above, the State-funded portion of presidents' salaries that was in effect on June 30, 2009 shall remain in effect for FY 2010-11. S.L. 2010-113 (S740) amended G.S. 115D-5(a) to state that "Any and all salary caps set by the State Board for community college presidents shall apply only to the State-paid portion of the salary. Except as otherwise provided by law, the employer contribution rate on the localpaid portion of the salary, to be paid from local funds, shall be set by the State Treasurer based on actuarial recommendations." As a result, the Presidents' Salary Schedule no longer includes a maximum salary from all fund sources. Note that this statutory change negates the language found in 23 NCAC 02D.0101(c)(6). This rule will be amended at a future date to ensure consistency with this statutory change.

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NORTH CAROLINA COMMUNITY COLLEGE SYSTEM PRESIDENT'S SALARY SCHEDULE FY 2010-11

GRADE 1 2 3 4

0-2749 YEARS OF EXPERIENCE (STEPS) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 NUMBER OF COLLEGES IN GRADE

FTE RANGE 2750-4499 4500-7499

7500-UP

$

ANNUAL STATE FUNDED SALARY 102,576 $ 109,608 $ 117,120 $ 104,616 111,804 119,472 106,728 114,036 121,860 108,876 116,316 124,296 111,036 118,644 126,780 113,256 121,008 129,312 115,524 123,432 131,892 117,840 125,904 134,544 120,192 128,412 137,232 122,580 130,992 139,980 125,040 133,608 142,764 127,548 136,284 145,632 130,104 139,008 148,536 132,696 141,780 151,524 135,348 144,636 154,548 138,060 147,528 157,644 140,808 150,480 160,800 143,628 153,480 164,016 146,508 156,540 167,280 149,436 159,672 170,628 152,424 162,864 174,036 18 19 12

125,148 127,656 130,200 132,816 135,480 138,180 140,940 143,748 146,628 149,580 152,556 155,616 158,724 161,904 165,132 168,444 171,816 175,248 178,764 182,328 185,976 9

No Legislative Increase for 2010-11

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NORTH CAROLINA COMMUNITY COLLEGE SYSTEM SALARY SCALE PLACEMENT BASED ON YEARS OF PRESIDENTIAL EXPERIENCE STATE BUDGETED SALARIES FY 2010-11 BUDGET FTE BASIC SKILLS 407 421 241 96 143 259 445 469 124 422 995 1,372 220 222 261 188 632 446 271 1,187 643 416 1,109 115 71 182 110 321 455 191 338 145 209 88 176 87 178 414 339 505 105 1,014 139 392 364 380 333 318 197 226 230 53 428 1,299 363 474 285 229 21,742 NON-BUDGET FTE STATE SALARY TOTAL INST SAL FTE SIZE STEP 2010-11 5,527 3 13 $151,524 7,746 4 0 125,148 2,245 1 5 113,256 1,919 1 0 102,576 2,912 2 1 111,804 1,982 1 7 117,840 5,418 3 11 145,632 9,817 4 14 165,132 2,263 1 1 104,616 6,184 3 2 121,860 6,544 3 0 117,120 18,538 4 14 165,132 4,366 2 14 144,636 5,728 3 14 154,548 2,861 2 0 109,608 3,748 2 0 109,608 4,976 3 5 129,312 5,601 3 1 119,472 3,492 2 4 118,644 13,113 4 1 127,656 9,927 4 5 138,180 7,125 3 12 148,536 14,408 4 13 161,904 2,057 1 8 120,192 2,360 1 5 113,256 3,212 2 1 111,804 1,752 1 5 113,256 5,002 3 0 117,120 4,639 3 6 131,892 1,157 1 6 115,524 2,208 1 5 113,256 1,963 1 5 113,256 3,563 2 13 141,780 1,178 1 8 120,192 3,161 2 4 118,644 735 1 5 113,256 3,223 2 0 109,608 8,063 4 5 138,180 3,399 2 2 114,036 2,562 1 0 102,576 1,110 1 3 108,876 4,336 2 5 121,008 2,714 1 14 135,348 7,898 4 15 168,444 2,176 1 6 115,524 4,668 3 14 154,548 3,076 2 7 125,904 3,146 2 5 121,008 2,912 2 4 118,644 3,396 2 10 133,608 3,976 2 1 111,804 1,475 1 1 104,616 5,024 3 4 126,780 16,220 4 13 161,904 4,299 2 1 111,804 4,227 2 6 123,432 3,659 2 10 133,608 2,681 1 5 113,256 273,667 $ 7,301,688

COMMUNITY COLLEGES Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC TOTAL

CURR. CON. ED 4,188 371 5,652 704 1,617 202 1,515 185 1,921 551 1,297 329 3,951 563 7,570 785 1,519 359 4,421 507 4,194 719 13,993 835 3,364 315 3,946 734 2,175 242 2,721 415 3,395 551 3,716 757 2,607 243 8,626 2,087 7,159 990 5,572 433 10,994 812 1,503 241 1,837 231 2,340 272 1,207 225 3,697 554 2,860 853 670 167 1,154 385 1,296 185 2,642 384 740 197 2,332 359 443 94 2,268 346 6,215 526 2,269 424 1,528 286 717 222 2,352 585 1,974 324 5,721 904 1,304 301 3,428 310 1,873 529 2,027 429 1,958 512 2,436 378 2,785 517 1,048 196 3,220 629 11,522 1,545 2,988 546 2,835 385 2,508 567 1,663 342 193,473 28,639

CURR. CON. ED 454 107 768 201 149 36 103 20 207 90 48 49 406 53 799 194 198 63 671 163 557 79 1,851 487 422 45 677 149 132 51 341 83 354 44 492 190 296 75 976 237 946 189 582 122 1,099 394 164 34 191 30 327 91 149 61 346 84 360 111 67 62 238 93 299 38 269 59 115 38 214 80 65 46 338 93 841 67 298 69 151 92 40 26 252 133 210 67 753 128 92 115 455 95 159 182 264 108 225 20 331 25 342 102 121 57 609 138 1,238 616 317 85 410 123 229 70 380 67 23,387 6,426

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D.

Employer Contribution Rates and Longevity 1. Employer Contribution Retirement Rates: Consistent with Section 2.3.(h) of S.L. 201031, colleges shall contribute the following rates toward employee retirement effective July 1, 2010. This new rate shall be implemented starting with the July 2010 payroll.

Teachers and State Employees Retirement System (TSERS): 9.15% 10.51% NCCCS Presidents participating in Optional Retirement Program: 12.26%

Section 2.3.(h) of S.L. 2010-31 also states that employers shall contribute 1.36% to a reserve in the Office of State Budget and Management for the purpose of covering a possible budget shortfall that will occur if Congress does not authorize certain federal funds. The System Office will make this contribution to the reserve on behalf of the colleges for State-funded positions. Accordingly, the allocations included in this document are calculated on the basis that the colleges will only pay the 9.15% rate to TSERS. If the funds in the reserve are indeed used to cover a budget shortfall, the colleges will not need to take any action. If the funds are not needed for this purpose, they will be allocated to the colleges at a later date, and colleges will be provided instructions on how to make an additional retirement contribution on behalf of their employees. Note that if colleges are directed to make an additional retirement contribution, it will apply to all college employees regardless of fund source. Therefore, colleges should ensure non-State funds are held in reserve locally specifically for the purpose of covering a possible increase in the employer retirement contribution rate on behalf of non-State-funded employees. The Office of State Budget and Management issued a memo on August 24, 2010 that increased the TSERS employer contribution rate to 10.51% effective July 1, 2010 and authorized the release of funds held in the 1.36% reserve described in gray above. Retirement must be withheld on all permanent salary increases and bonuses/salary supplements (if applicable). (Note that bonuses/salary supplements may not be provided with State funds in FY 2010-11.) 2. Health Insurance Rates: Consistent with Section 6.(e) of S.L. 2009-16, the annual employer contribution rate is $4,929 ($410.80 per month) for non-Medicare-eligible employees and $3,753 ($312.76 per month) for Medicare-eligible employees. New employee contribution rates for dependent coverage are outlined on the following page. These new rates are effective July 1, 2010. Consequently, the new dependent premium rates should be withheld starting in the June 2010 payroll. 3. Longevity: Colleges should continue to pay longevity to employees consistent with 23 NCAC 02D.0109.

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III. Budget Allocations

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM SUMMARY OF STATE AID ALLOCATIONS FY 2010-11 Program Formula Allocations - Current Operating Categorical Allocations B.1 Multi-Campus B.2 Health Sciences Programs B.3 Technical Education B.4 Vocational Educ. Allotment - Basic Grant (Federal) B.5 Tech Prep (Federal) B.6 Child Care B.7 Small Business Centers B.8 Customized Training Business and Industry Support Regional Trainers B.9 Special High Cost Programs B.10A Equipment B.10B Equipment Reserve B.11 Instructional Resources Specific Program Categorical Allocations C.1 Biotechnology Training Center at NC Research Campus (Rowan Cabarrus CC) C.2 Botanical Lab (Fayetteville Tech CC) C.3 Center for Applied Textile Technology (Gaston College) C.4 Center for Emerging Manufacturing Solutions (Catawba Valley CC) C.5 Haywood Regional High Tech. Center (Haywood CC) C.6 Hickory Metro Higher Education Center (Catawba Valley CC) C.7 NC Military Business Center (Fayetteville Tech CC) TOTAL ALLOCATIONS: Management Flexibility Reduction NET ALLOCATIONS: Allocation 1,277,848,419

A. B.

14,056,785 16,842,300 5,500,000 10,174,955 903,184 1,838,215 5,883,027 2,990,000 763,204 998,141 43,319,732 19,837,211 2,500,000

C.

3,364,662 264,000 912,509 572,116 582,383 264,833 1,250,000 $1,410,665,676 ($39,000,000) $1,371,665,676

D.

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NORTH CAROLINA COMMUNITY COLLEGE SYSTEM STATEWIDE COLLEGE ALLOTMENT COMPARISON 2009-10 vs. 2010-11

FY 2009-10 Budgeted FTE Regular Curriculum Contracted Instruction Occupational Extension Basic Skills Total Budgeted FTE Formula Allocations - Current Operating Categorical Allocations Multi-Campus Health Sciences Programs Technical Education Vocational Educ. Allotment - Basic Grant (federal) Tech Prep (federal) Child Care - State Funds Small Business Centers Customized Training - Business and Industry Support Business and Industry Support Regional Trainers Special High Cost Program Allotments Heavy Equipment Marine Technology Equipment Equipment Reserve Instructional Resources Biotechnology Training Center at NC Research Campus Botanical Lab (FTCC) Center for Applied Textile Technology Center for Emerging Manufacturing Solutions Haywood Regional High Tech. Center Hickory Metro Higher Education Center NC Military Business Center Total Categorical Allocations Management Flexibility Reduction (Negative Reserve) TOTAL ALLOCATION:

1

FY2010-11 193,262 211 28,639 21,742 243,854 1,277,848,419

Change +/(-) 1 23,697 (44) 1,805 1,924 27,382 $152,867,538

% Change 14% -17% 7% 10% 13% 14%

169,565 255 26,834 19,818 216,472 $1,124,980,881

$13,784,617 15,435,000 5,500,000 10,129,867 998,801 1,838,215 5,398,848 2,997,500 763,574 350,520 633,410 40,319,732 2,500,000 3,346,632 264,000 894,363 562,183 568,820 255,314 1,250,000 $107,791,396 (28,612,950) $1,204,159,327

$14,056,785 16,842,300 5,500,000 10,174,955 903,184 1,838,215 5,883,027 2,990,000 763,204 328,336 669,805 43,319,732 19,837,211 2,500,000 3,364,662 264,000 912,509 572,116 582,383 264,833 1,250,000 $132,817,257 (39,000,000) $1,371,665,676

$272,168 1,407,300 45,088 (95,617) 484,179 (7,500) (370) (22,184) 36,395 3,000,000 19,837,211 18,030 18,146 9,933 13,563 9,519 $25,025,861 (10,387,050) $167,506,349

2% 9% 0% 0% -10% 0% 9% 0% 0% -6% 6% 7% 100% 0% 1% 0% 2% 2% 2% 4% 0% 23% 36% 14%

Allocations reflecting an increase/(decrease) in the difference column indicate Legislative action, a change in FTE, or a change due to an increase in the employer benefit contribution rates.

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A.

Formula Budget ­ Current Operating The formula budget is the primary mechanism through which State funds are allocated to the colleges for current operations. For FY 2010-11, a total of $1,277,848,419 is allocated through the formula budget. The formula budget is driven by colleges' budget FTE. In FY 2010-11, the colleges' budget FTE figures have been adjusted consistent with the provisions included in S.L. 2010-31 related to prison education. The Appropriations Act of 2009 appropriated funds to support prison education in FY 2009-10 on a non-recurring basis, while the Department of Correction and the Community Colleges System Office jointly conducted a continuation review of prisoner education. On the basis of that study, the General Assembly decided to eliminate funding for all instruction provided to inmates of local jails and federal prisons, as well as funding for instruction in State prisons leading to Associate of Arts, Associate of Science, or Associate of General Education degrees. Of the funds that were restored, the General Assembly directed that funds be used to first restore funding for Basic Skills; the remaining funds may be used for continuing education and curriculum courses related to jobs skills training.1 As a result of these provisions, colleges' allotted budget FTE figures have been adjusted to deduct any FTEs related to activities for which funding was eliminated. After fully funding colleges for Basic Skills FTE served in State prisons, funding was only sufficient to cover 60% of the curriculum and continuing education FTE served in these institutions. Therefore, colleges' allotted budget FTE figures have also been adjusted to deduct the 40% of curriculum and continuing education FTEs that were not funded.

A1.

Curriculum Instruction Purpose: Funds are provided to support curriculum instruction, including instructional salaries, fringe benefits, and other costs, such as supplies, materials, and faculty travel. Allocation Method: Curriculum budget FTE equals the average of the past three years (fall and spring) or the latest year, whichever is greater. In FY 2010-11, this curriculum budget FTE figure has been adjusted for prison education cuts as described above to determine a college's curriculum allotted budget FTE. A college's curriculum instruction allocation is determined by multiplying the curriculum allotted FTE times the amount appropriated ("the equivalent value") by the General Assembly for each FTE up to 500 FTE ($4,173.06) and the dollar amount appropriated for each FTE above 500 ($3,182.86). The curriculum equivalent value for FTE <= 500 increased slightly from the FY 2009-10 level due to the increase in required employer contribution rates for hospitalization insurance and retirement. The equivalent value for FTE > 500 decreased from the FY 2009-10 level

1

Section 8.3 of S.L. 2010-31; Joint Conference Committee Report on the Continuation, Expansion, and Capital Budgets dated June 28, 2010, Item #40, page F-8.

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due to the realignment of $48.6 million from curriculum instruction to students services as authorized by Section 8.5.(a) of S.L. 2010-31. This realignment was achieved by modifying the instructional unit: FTE ratio for FTE > 500 from 1:20.0225 to 1:22.0120. Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: 210, 220, 230, 240 Vocational code: 97, 20-29 (excluding 26), consistent with the Accounting Procedures Manual

A2.

Continuing Education (Occupational Extension) Instruction Purpose: Funds are provided to support occupational extension instruction, including instructional salaries, fringe benefits, and other costs, such as supplies, materials, and faculty travel. Allocation Method: Continuing Education (Occupational Extension) budget FTE equals the average of the past three years (spring, summer, and fall) or the latest year whichever is greater. In FY 2010-11, this continuing education budget FTE figure has been adjusted for prison education cuts as described above to determine a college's continuing education allotted budget FTE. A college's continuing education instruction allocation is determined by multiplying the continuing education allotted FTE times the amount appropriated ("the equivalent value") by the General Assembly for each FTE up to 500 FTE ($2,964.06) and the dollar amount appropriated for each FTE above 500 ($2,273.31). The continuing education equivalent value for FTE <= 500 did not change from 2009-10 levels except for a minor change due to rounding. The equivalent value for FTE > 500 decreased from the FY 2009-10 level due to the realignment of $1.3 million from continuing education instruction to students services as authorized by Section 8.5.(a) of S.L. 2010-31. This realignment was achieved by modifying the instructional unit: FTE ratio for FTE > 500 from 1:20.0225 to 1:22.0120. Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: 310, 311 Vocational code: 97

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A3.

Basic Skills Block Grant Purpose: The Basic Skills Block grant provides funds to support basic skills (literacy) instruction, which is defined as all courses offered related to Adult Basic Education, Adult High School Diploma programs, General Education Development (GED) programs, and the Compensatory Education curriculum. Per G.S. 115D-31(b1), Basic Skills funds must be used only for Basic Skills education programs and may not be transferred to any other area. These funds may be used to hire assessment and retention specialists; these funds may also be used to pay for transportation of Basic Skills students. Basic Skills funds may not be used for support of administrative functions (such as Director of Basic Skills programs, clerical, etc.). Per Section 8.2 of S.L. 2009-451, up to five percent of the Basic Skills Block Grant may be used to procure instructional technology including computers, instructional software and software licenses, scanners for testing and classroom projection equipment, for student use in the college's literacy lab. No other equipment or capital items can be purchased with Basic Skills funds. Title II ­ Adult Education and Literacy of the Workforce Investment Act of 1998 no longer requires colleges to spend 10% of the federal allotment on instructor training. However, there is no prohibition against colleges using the funds for that purpose. Allocation Method: Basic Skills budget FTE equals the average of the past three years (spring, summer, and fall) or the latest year whichever is greater. Basic Skills FTE shall be reported on a contact hour basis. In FY 2010-11, this Basic Skills budget FTE figure has been adjusted for prison education cuts as described above to determine a college's Basic Skills allotted budget FTE. A college's Basic Skills Block Grant allocation is determined by the sum of the following components:

Base allocation ­ Each college receives a base allocation of $20,000. Target Population allocation ­ Colleges receive $0.25 per person in the target population (individuals aged 16 years and over who have not attained a high school diploma or equivalent based on the 2000 census).2 GED Incentive allocation ­ Colleges receive $50 per General Education Development (GED) certificate awarded. AHS Incentive allocation ­ Colleges receive $150 per Adult High School diploma awarded. Level of Effort Incentive allocation ­ Colleges receive $10,000 for each percentage point that its local level of effort is in excess of the statewide level of effort. Level of effort is measured by the percentage of the target population served by Basic Skills programs. The statewide level of effort is 11.31%. State per FTE allocation ­ Colleges receive $3,342.90 in State funds per Basic Skills budget FTE.

2

Target population figures based on 2000 Census data as reported in "Profiles of the Adult Education Target Population", December 2005, Research Triangle Institute International.

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Revised as Amended by State Board ­ Sept. 16, 2010

Federal per FTE allocation ­ Colleges receive $710.99 in federal funds per Basic Skills budget FTE.3

Basic Skills Plus: Section 8.10 of S.L. 2010-31 gives approved colleges the flexibility to bridge the gap between basic skills and curriculum and continuing education by providing employability skills, job-specific occupational and/or technical skills, and developmental education free of charge to Basic Skills students concurrently pursuing a high school diploma or GED. Specifically, the legislation enables the State Board of Community Colleges to authorize a community college to use up to 20% of its State Basic Skills allocation to implement pathways programs for basic skills students. Only colleges that receive State Board approval may utilize this flexibility. Colleges must follow the procedures outlined by the Division of Academic and Student Services (see memo dated July 22, 2010 from Drs. Sharon Morrissey and Randy Whitfield) to seek State Board approval. Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: current ­ 321, 322, 323, 324, 320 (New: Basic Skills Plus ­ approved colleges only); capital outlay ­ 923 (instructional technology only*) Vocational code: 97 *If funds are transferred to purpose 923 for instructional technology, an invoice or other supporting documentation must accompany the Form 104. Each college has the ability to track their federal and State expenditures separately each year. If a college does not track which funding source is being used throughout the fiscal year, the assumption is that federal funds are spent first. All federal funds must be fully expended on or before June 30, 2011.

A4.

Institutional Support Purpose: Funds are provided to support salaries, fringe benefits, and other costs related to the management and administration of the entire institution, student support, and academic program support. Allocation Method: A college's institutional support allocation is determined by the sum of the following components: Base Allotment: Each college receives a base of $2,056,736. This amount is based on an amount for other costs and support for 30 positions: o Nine administrative positions (4.0 senior administrators, 1.0 general institution, 1.0 technical/paraprofessional, and 3.0 clerical); and

3

The State per FTE amount has decreased and the federal per FTE amount has increased from FY 2009-10 levels due to the use of one-time federal funds to help support Basic Skills enrollment growth. See Joint Conference Committee Report on the Continuation, Expansion and Capital Budgets dated June 28, 2010, page F-8, Item #37.

16

Revised as Amended by State Board ­ Sept. 16, 2010

o Twenty-one instructional support positions (2.0 supervisors of programs, 7.0 student support services, 4.0 general institution, 4.0 technical/ paraprofessional, and 3.0 clerical). The base allotment increased slightly from the FY 2009-10 level because of the increase in employer contribution rates for hospitalization insurance and retirement. Enrollment Allotment: Colleges receive an additional $1,663 for each allotted budget FTE in excess of 750 FTE. The enrollment allotment value increased from the FY 2009-10 level due to 1) the realignment of approximately $50 million from instruction to students services as authorized by Section 8.5.(a) of S.L. 2010-31 and 2) the increase in required employer contribution rates for hospitalization insurance and retirement. The realignment was achieved by adding 6.0 student services positions in the enrollment allotment model.

Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: 1XX, 311, 410, 421, 422, 430, 510 Vocational code: 97

17

Revised as Amended by State Board ­ Sept. 16, 2010

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM ALLOTTED BUDGET FTE FY 2010-11

Curriculum ALAMANCE COMMUNITY COLLEGE ASHEVILLE-BUNCOMBE TECH CC BEAUFORT CO COMMUNITY COLLEGE BLADEN COMMUNITY COLLEGE BLUE RIDGE COMMUNITY COLLEGE BRUNSWICK COMMUNITY COLLEGE CALDWELL COMMUNITY COLLEGE CAPE FEAR COMMUNITY COLLEGE CARTERET COMMUNITY COLLEGE CATAWBA VALLEY COMMUNITY COLL CENTRAL CAROLINA COMMUNITY COL CENTRAL PIEDMONT COMMUNITY COL CLEVELAND COMMUNITY COLLEGE COASTAL CAROLINA COMMUNITY COL COLLEGE OF THE ALBEMARLE CRAVEN COMMUNITY COLLEGE DAVIDSON CO COMMUNITY COLLEGE DURHAM TECHNICAL COMM COLL EDGECOMBE COMMUNITY COLLEGE FAYETTEVILLE TECH COMM COLL FORSYTH TECHNICAL COMM COLL GASTON COLLEGE GUILFORD TECH COMM COLL HALIFAX COMMUNITY COLLEGE HAYWOOD COMMUNITY COLLEGE ISOTHERMAL COMMUNITY COLLEGE JAMES SPRUNT COMMUNITY COLLEGE JOHNSTON COMMUNITY COLLEGE LENOIR COMMUNITY COLLEGE MARTIN COMMUNITY COLLEGE MAYLAND COMMUNITY COLLEGE MCDOWELL TECHNICAL COMM COLL MITCHELL COMMUNITY COLLEGE MONTGOMERY COMMUNITY COLLEGE NASH COMMUNITY COLLEGE PAMLICO COMMUNITY COLLEGE PIEDMONT COMMUNITY COLLEGE PITT COMMUNITY COLLEGE RANDOLPH COMMUNITY COLLEGE RICHMOND COMMUNITY COLLEGE ROANOKE-CHOWAN COMMUNITY COLL ROBESON COMMUNITY COLLEGE ROCKINGHAM COMMUNITY COLLEGE ROWAN-CABARRUS COMMUNITY COLL SAMPSON COMMUNITY COLLEGE SANDHILLS COMMUNITY COLLEGE SOUTH PIEDMONT COMMUNITY COLLEGE SOUTHEASTERN COMMUNITY COLLEGE SOUTHWESTERN COMMUNITY COLLEGE STANLY COMMUNITY COLLEGE SURRY COMMUNITY COLLEGE TRI-COUNTY COMMUNITY COLLEGE VANCE GRANVILLE COMMUNITY COLL WAKE TECHNICAL COMMUNITY COLL WAYNE COMMUNITY COLLEGE WESTERN PIEDMONT COMM COLLEGE WILKES COMMUNITY COLLEGE WILSON COMMUNITY COLLEGE TOTAL 4,188 5,652 1,617 1,515 1,921 1,297 3,951 7,570 1,519 4,421 4,194 13,993 3,364 3,946 2,175 2,721 3,395 3,716 2,607 8,626 7,159 5,572 10,994 1,503 1,837 2,340 1,207 3,697 2,860 670 1,154 1,296 2,642 740 2,332 443 2,268 6,215 2,269 1,528 717 2,352 1,974 5,721 1,304 3,428 1,873 2,027 1,958 2,436 2,785 1,048 3,220 11,522 2,988 2,835 2,508 1,663 193,473

Non-Curric Basic Skills 371 704 202 185 551 329 563 785 359 507 719 835 315 734 242 415 551 757 243 2,087 990 433 812 241 231 272 225 554 853 167 385 185 384 197 359 94 346 526 424 286 222 585 324 904 301 310 529 429 512 378 517 196 629 1,545 546 385 567 342 28,639 407 421 241 96 143 259 445 469 124 422 995 1,372 220 222 261 188 632 446 271 1,187 643 416 1,109 115 71 182 110 321 455 191 338 145 209 88 176 87 178 414 339 505 105 1,014 139 392 364 380 333 318 197 226 230 53 428 1,299 363 474 285 229 21,742

Total 4,966 6,777 2,060 1,796 2,615 1,885 4,959 8,824 2,002 5,350 5,908 16,200 3,899 4,902 2,678 3,324 4,578 4,919 3,121 11,900 8,792 6,421 12,915 1,859 2,139 2,794 1,542 4,572 4,168 1,028 1,877 1,626 3,235 1,025 2,867 624 2,792 7,155 3,032 2,319 1,044 3,951 2,437 7,017 1,969 4,118 2,735 2,774 2,667 3,040 3,532 1,297 4,277 14,366 3,897 3,694 3,360 2,234 243,854

18

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM FORMULA BUDGET COMPUTATION FY 2010-11

BUDGETED CURRICULUM FTE: REGULAR CURRICULUM CONTRACTED INSTRUCTION TOTAL CURRICULUM: 193,262 211 193,473 BUDGETED CONTINUING EDUCATION FTE: OCCUPATIONAL BASIC SKILLS TOTAL CONTINUING EDUCATION TOTAL BUDGETED: 28,639 21,742 50,381 243,854

INSTRUCTION: REGULAR CURRICULUM First Above 500 28,943 164,319 FTE @ FTE @ $4,173.06 $3,182.86 $120,780,876 $523,004,373 $643,785,249

TOTAL REGULAR CURRICULUM

CONTRACTED CURRICULUM INSTRUCTION 211 FTE @ $2,964.06 $625,418 $644,410,667

CONTINUING EDUCATION OCCUPATIONAL First Above 500 22,277 FTE @ 6,362 FTE @ $2,964.06 $2,273.31 $66,030,367 $14,462,799 $80,493,166

TOTAL CONTINUING EDUCATION OCCUPATIONAL

BASIC SKILLS BLOCK GRANT COMMUNITY SERVICE GRANT TOTAL INSTRUCTION

$91,427,801 $0 $816,331,634

PRESIDENT'S ALLOTMENT: PRESIDENT'S SALARY FICA AT RETIREMENT AT HOSPITALIZATION AT TOTAL PRESIDENT'S ALLOTMENT

7.65% 10.51% $4,929.00

$7,301,688 $472,880 $767,407 $285,882 $8,827,857

INSTITUTIONAL SUPPORT : BASE ALLOTMENT - FIRST 750 FTE ENROLLMENT ALLOTMENT @ TOTAL INSTITUTIONAL SUPPORT

$1,663.00

$119,290,688 $333,398,240 $452,688,928

TOTAL FORMULA ALLOTMENT

$1,277,848,419

19

Revised as Amended by State Board ­ Sept. 16, 2010

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM Formula Budget by College FY 2010-11 CONTINUING CURRICULUM CONTRACT EDUCATION BASIC SKILLS PRESIDENTS $13,824,918 $0 $1,099,666 $1,712,972 $180,548 18,484,625 0 1,945,785 1,757,793 151,400 5,641,785 0 598,740 1,007,740 138,258 5,317,133 0 548,351 415,086 126,133 6,609,374 0 1,597,969 613,913 136,654 4,623,269 0 975,176 1,083,067 143,324 13,070,580 0 1,625,249 1,854,987 174,037 24,589,350 0 2,129,923 1,998,955 195,586 5,329,864 0 1,064,098 536,258 128,543 14,566,524 0 1,497,943 1,761,835 147,766 13,844,015 0 1,979,885 4,129,897 142,528 45,032,860 0 2,243,589 5,757,390 195,586 11,202,241 0 933,679 933,491 172,936 13,054,666 0 2,013,985 1,126,703 183,890 7,417,821 0 717,303 1,120,355 134,227 9,155,662 0 1,230,085 811,525 134,227 11,300,910 0 1,597,969 2,620,885 156,002 12,322,608 0 2,066,271 1,864,040 145,128 8,792,816 0 720,267 1,161,016 144,212 27,950,450 0 5,089,773 4,926,294 154,172 23,281,195 0 2,595,952 2,699,798 165,802 18,229,996 0 1,283,438 1,782,086 177,246 35,487,463 0 2,191,303 4,563,732 192,019 5,278,939 0 714,338 496,191 145,923 6,342,014 0 684,698 315,429 138,258 7,942,992 0 806,224 783,458 136,654 4,336,812 0 666,914 474,026 138,258 12,262,133 0 1,604,789 1,340,573 142,528 9,598,080 0 2,284,508 1,886,740 158,853 2,627,616 0 494,998 802,351 140,765 4,168,120 0 1,141,163 1,406,445 138,258 4,620,087 0 548,351 617,870 138,258 8,904,216 0 1,138,199 895,732 169,780 2,850,416 0 583,920 381,979 145,923 7,917,530 0 1,064,098 747,187 144,212 1,848,666 0 278,622 375,612 138,258 7,713,826 0 1,025,565 751,106 134,227 19,878,717 370,508 1,541,136 1,735,037 165,802 7,717,009 0 1,256,761 1,419,445 139,120 5,358,510 0 847,721 2,100,151 126,133 2,777,211 0 658,021 455,842 133,418 7,981,187 0 1,675,261 4,155,638 146,825 6,778,066 0 960,355 598,735 162,672 18,704,242 0 2,400,447 1,648,857 199,246 4,645,549 0 892,182 1,509,441 140,765 11,405,944 0 918,859 1,575,578 183,890 6,456,597 0 1,547,956 1,402,417 152,236 6,946,757 0 1,271,582 1,322,705 146,825 6,727,140 0 1,509,310 858,656 144,212 8,248,547 0 1,120,415 1,004,168 160,749 9,359,365 0 1,520,676 970,327 136,654 3,830,737 0 580,956 242,279 128,543 10,743,909 0 1,775,287 1,811,240 153,204 37,168,013 0 3,857,639 5,397,972 192,019 9,766,771 222,305 1,586,602 1,557,551 136,654 9,518,508 0 1,141,163 1,994,991 149,504 8,477,713 0 1,634,342 1,192,188 160,749 5,753,185 32,605 1,013,709 960,066 138,258 $643,785,249 $625,418 $80,493,166 $91,427,801 $8,827,857 INST. SUPPORT $9,067,944 12,079,637 4,235,266 3,796,234 5,158,231 3,944,241 9,056,303 15,483,798 4,138,812 9,706,536 10,634,490 27,750,086 7,293,523 8,961,512 5,263,000 6,337,298 8,422,700 8,989,783 5,999,709 20,599,186 15,430,582 11,487,609 22,287,131 3,901,003 4,366,643 5,455,908 3,373,832 8,412,722 7,740,870 2,519,050 3,930,937 3,513,524 6,189,291 2,514,061 5,577,307 2,056,736 5,452,582 12,708,251 5,851,702 4,665,983 2,545,658 7,379,999 4,862,217 12,478,757 4,083,933 7,657,720 5,357,791 5,422,648 5,244,707 5,865,006 6,683,202 2,966,397 7,922,137 24,700,144 7,290,197 6,952,608 6,397,166 4,524,628 $452,688,928

COMMUNITY COLLEGES Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC TOTAL

TOTAL $25,886,048 34,419,240 11,621,789 10,202,937 14,116,141 10,769,077 25,781,156 44,397,612 11,197,575 27,680,604 30,730,815 80,979,511 20,535,870 25,340,756 14,652,706 17,668,797 24,098,466 25,387,830 16,818,020 58,719,875 44,173,329 32,960,375 64,721,648 10,536,394 11,847,042 15,125,236 8,989,842 23,762,745 21,669,051 6,584,780 10,784,923 9,438,090 17,297,218 6,476,299 15,450,334 4,697,894 15,077,306 36,399,451 16,384,037 13,098,498 6,570,150 21,338,910 13,362,045 35,431,549 11,271,870 21,741,991 14,916,997 15,110,517 14,484,025 16,398,885 18,670,224 7,748,912 22,405,777 71,315,787 20,560,080 19,756,774 17,862,158 12,422,451 $1,277,848,419

20

Revised as Amended by State Board ­ Sept. 16, 2010

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM BASIC SKILLS BLOCK GRANT FY 2010-11

COMMUNITY COLLEGES Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC TOTAL

BASE ALLOTMENT $20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 $1,160,000

TARGET POPULATION 16-54 YEARS 22,770 33,224 11,014 7,049 16,028 12,438 24,033 23,934 8,503 33,977 33,494 76,639 19,144 14,318 19,657 11,876 36,111 40,837 13,499 32,067 50,861 52,877 53,652 16,974 9,213 16,603 12,396 21,898 19,205 10,835 11,324 9,424 19,428 7,146 15,412 2,497 12,055 18,024 29,108 17,412 11,135 29,984 21,380 45,930 13,703 16,402 23,491 12,275 12,934 11,128 25,131 8,491 33,904 53,702 18,701 21,748 25,121 16,504 1,298,620

TARGET DOLLARS GED CERT. $.25 AWARDED $5,693 8,306 2,754 1,762 4,007 3,110 6,008 5,984 2,126 8,494 8,374 19,160 4,786 3,580 4,914 2,969 9,028 10,209 3,375 8,017 12,715 13,219 13,413 4,244 2,303 4,151 3,099 5,475 4,801 2,709 2,831 2,356 4,857 1,787 3,853 624 3,014 4,506 7,277 4,353 2,784 7,496 5,345 11,483 3,426 4,101 5,873 3,069 3,234 2,782 6,283 2,123 8,476 13,426 4,675 5,437 6,280 4,126 $324,662 342 456 160 44 204 119 227 198 157 452 426 675 52 247 277 115 290 309 330 142 537 523 326 115 79 268 88 204 246 104 268 154 342 39 143 46 130 215 310 287 148 65 198 565 208 181 451 210 308 67 233 106 534 758 173 434 121 107 14,513

GED DOLLARS $50 $17,100 22,800 8,000 2,200 10,200 5,950 11,350 9,900 7,850 22,600 21,300 33,750 2,600 12,350 13,850 5,750 14,500 15,450 16,500 7,100 26,850 26,150 16,300 5,750 3,950 13,400 4,400 10,200 12,300 5,200 13,400 7,700 17,100 1,950 7,150 2,300 6,500 10,750 15,500 14,350 7,400 3,250 9,900 28,250 10,400 9,050 22,550 10,500 15,400 3,350 11,650 5,300 26,700 37,900 8,650 21,700 6,050 5,350 $725,650

AHS DIPL. AWARDED 59 0 0 13 0 27 91 158 24 0 104 350 95 17 61 42 102 37 4 41 116 242 24 0 9 54 4 24 20 1 0 0 0 10 18 0 0 55 16 12 0 95 0 0 0 13 27 0 3 142 0 0 140 72 66 92 30 15 2,525

AHS DOLLARS $150 $8,850 0 0 1,950 0 4,050 13,650 23,700 3,600 0 15,600 52,500 14,250 2,550 9,150 6,300 15,300 5,550 600 6,150 17,400 36,300 3,600 0 1,350 8,100 600 3,600 3,000 150 0 0 0 1,500 2,700 0 0 8,250 2,400 1,800 0 14,250 0 0 0 1,950 4,050 0 450 21,300 0 0 21,000 10,800 9,900 13,800 4,500 2,250 $378,750

ELIGIBLE POPULATION SERVED 12.45% 10.77% 9.14% 8.77% 10.51% 9.06% 10.05% 15.12% 10.02% 9.29% 14.41% 18.32% 5.10% 30.14% 12.75% 12.75% 9.16% 11.79% 13.50% 18.62% 12.93% 6.24% 12.78% 7.52% 9.14% 10.78% 5.84% 8.55% 11.52% 8.18% 10.49% 8.70% 11.96% 7.42% 9.26% 11.29% 9.43% 12.63% 6.66% 12.55% 5.52% 9.59% 6.22% 7.95% 8.20% 10.00% 11.27% 9.56% 13.41% 15.37% 6.91% 5.56% 8.53% 16.30% 15.59% 12.56% 6.51% 11.08% 11.31%

10,000 LEVEL OF EFFORT $11,397 0 0 0 0 0 0 38,098 0 0 31,006 70,048 0 188,260 14,377 14,375 0 4,798 21,938 73,063 16,184 0 14,659 0 0 0 0 0 2,121 0 0 0 6,512 0 0 0 0 13,222 0 12,436 0 0 0 0 0 0 0 0 20,956 40,557 0 0 0 49,846 42,765 12,511 0 0 $699,129

21

Revised as Amended by State Board ­ Sept. 16, 2010

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM BASIC SKILLS BLOCK GRANT FY 2010-11

COMMUNITY COLLEGES Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC TOTAL

SUB-TOTAL BASE PLUS INCENTIVE DISTRIBUTION $63,040 51,106 30,754 25,912 34,207 33,110 51,008 97,682 33,576 51,094 96,280 195,458 41,636 226,740 62,291 49,394 58,828 56,007 62,413 114,330 93,149 95,669 67,972 29,994 27,603 45,651 28,099 39,275 42,222 28,059 36,231 30,056 48,469 25,237 33,703 22,924 29,514 56,728 45,177 52,939 30,184 44,996 35,245 59,733 33,826 35,101 52,473 33,569 60,040 87,989 37,933 27,423 76,176 131,972 85,990 73,448 36,830 31,726 $3,288,191

FTE 407 421 241 96 143 259 445 469 124 422 995 1,372 220 222 261 188 632 446 271 1,187 643 416 1,109 115 71 182 110 321 455 191 338 145 209 88 176 87 178 414 339 505 105 1,014 139 392 364 380 333 318 197 226 230 53 428 1,299 363 474 285 229 21,742

STATE ALLOTMENT $3,342.90 $1,360,561 1,407,362 805,639 320,919 478,035 865,812 1,487,591 1,567,821 414,520 1,410,705 3,326,187 4,586,461 735,438 742,124 872,497 628,466 2,112,714 1,490,934 905,926 3,968,025 2,149,486 1,390,647 3,707,278 384,434 237,346 608,408 367,719 1,073,072 1,521,020 638,494 1,129,901 484,721 698,667 294,175 588,351 290,832 595,037 1,383,961 1,133,244 1,688,165 351,005 3,389,703 464,663 1,310,418 1,216,816 1,270,303 1,113,186 1,063,043 658,552 755,496 768,867 177,174 1,430,762 4,342,430 1,213,473 1,584,536 952,727 765,525 $72,681,374

SUPPLEMENTAL FEDERAL ALLOTMENT $710.99 $289,371 299,325 171,347 68,255 101,671 184,145 316,388 333,452 88,162 300,036 707,430 975,471 156,417 157,839 185,567 133,665 449,343 317,099 192,677 843,939 457,163 295,770 788,482 81,763 50,480 129,399 78,208 228,226 323,498 135,798 240,313 103,093 148,596 62,567 125,133 61,856 126,555 294,348 241,024 359,047 74,653 720,939 98,827 278,706 258,799 270,174 236,758 226,093 140,064 160,683 163,527 37,682 304,302 923,570 258,088 337,007 202,631 162,815 $15,458,236

TOTAL BASIC SKILLS ALLOTMENT 1,712,972 1,757,793 1,007,740 415,086 613,913 1,083,067 1,854,987 1,998,955 536,258 1,761,835 4,129,897 5,757,390 933,491 1,126,703 1,120,355 811,525 2,620,885 1,864,040 1,161,016 4,926,294 2,699,798 1,782,086 4,563,732 496,191 315,429 783,458 474,026 1,340,573 1,886,740 802,351 1,406,445 617,870 895,732 381,979 747,187 375,612 751,106 1,735,037 1,419,445 2,100,151 455,842 4,155,638 598,735 1,648,857 1,509,441 1,575,578 1,402,417 1,322,705 858,656 1,004,168 970,327 242,279 1,811,240 5,397,972 1,557,551 1,994,991 1,192,188 960,066 $91,427,801

22

Revised as Amended by State Board ­ Sept. 16, 2010

B.

Categorical Allocations B1. Multi-Campus Colleges Purpose: A multi-campus college (MCC) functions as a convenience location in the service area to provide appropriate population and geographic access for community outreach, testing, faculty/staff offices, as well as literacy, continuing education, and curriculum instruction. Students may complete certificates, diplomas, and associate degrees at multicampus locations. Comprehensive instructional support functions including areas such as libraries, student development services, etc., are parts of the operation. A multi-campus college must provide students the opportunity to complete at least one associate degree at each campus of a multi-campus college. The MCC allotment provides supplemental funds to help support the duplicative costs of staffing these locations. Funds shall be used to support administrative and student support positions and related operating costs at the MCC. Allocation Method: A total of $14,056,785 is allocated in FY 2010-11 through the MultiCampus College (MCC) allotment. To receive MCC funding, the State Board must designate the location a MCC and the General Assembly must appropriate funding for the location. Note that Section 8.11 of S.L. 2010-31 prohibits the State Board from approving any additional multi-campus centers without identified recurring sources of funding. Each eligible MCC shall receive an allocation equal to the lower of: 1. The budget FTE served at the MCC site multiplied by the Institutional Support Enrollment Allotment value; or 2. The maximum allocation based on the MCC's level as defined below: MCC Level Level 1 Level 2 Level 3 Budget FTE Less than 500 500 to 799 800+ Maximum Allocation $525,000 $575,000 $625,000

If the total amount appropriated for MCCs is not adequate to fully fund allocations as prescribed above, each MCC shall receive its pro-rata share of the MCC appropriation. Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: 1XX, 410, 421, 422, 430, 510 Vocational code: 97 Per G.S. 115D-5(o), colleges receiving these funds must track these expenditures separately from main campus expenditures in order to generate annually the required report of expenditures by location by line item and fund source.

23

Revised as Amended by State Board ­ Sept. 16, 2010

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM MULTI CAMPUS FUNDING FY 2010-11

Community College

Campus

3-Year Average FTE

Pro-Rata Level %

Pro-Rata Campus Allotment

Total Allotment

Caldwell CC Cape Fear CC Central Carolina CC

Watauga Cty. Campus North Campus Chatham Cty. Campus Harnett Cty. Campus North Campus Levine Campus Harper Campus Harris Campus Cato Campus Dare Cty. Campus Havelock Campus Davie Campus Rocky Mount Campus Spring Lake Campus Lincoln Cty. Campus Greensboro Campus High Point Campus Caswell Campus Cabarrus Cty. Campus West Campus (Union) Franklin Cty. Campus Granville Cty. Campus Health Sciences Campus Northeast Campus West Campus Ashe Cty. Campus

925 2,012 394 976 938 2,282 886 533 1,060 272 443 966 799 553 761 2,120 743 740 2,062 1,146 572 436 1,449 2,471 455 426 26,420

3 3 1 3 3 3 3 2 3 1 1 3 2 2 2 3 2 2 3 3 2 1 3 3 1 1

4.1% $ 4.1% 3.4% 4.1% 4.1% 4.1% 4.1% 3.8% 4.1% 2.9% 3.4% 4.1% 3.8% 3.8% 3.8% 4.1% 3.8% 3.8% 4.1% 4.1% 3.8% 3.4% 4.1% 4.1% 3.4% 3.4% 100% $

577,120 577,120 484,781 577,120 577,120 577,120 577,120 530,951 577,120 413,663 484,781 577,120 530,951 530,951 530,951 577,120 530,951 530,951 577,120 577,120 530,951 484,781 577,120 577,120 484,781 484,781 14,056,785

$

577,120 577,120

1,061,901

Central Piedmont CC

2,839,431 413,663 484,781 577,120 530,951 530,951 530,951

College of The Albemarle Craven CC Davidson Co. CC Edgecombe CC Fayetteville Tech. CC Gaston College Guilford TCC

1,108,071 530,951 577,120 577,120

Piedmont CC Rowan-Cabarrus CC South Piedmont CC Vance-Granville CC

1,015,732

Wake TCC

1,639,021 484,781 $ 14,056,785

Wilkes CC TOTAL

24

B2. Health Sciences Programs Purpose: Health Sciences funding provides supplemental funds to support high cost nursing and allied health programs. These funds are intended to help reduce waiting lists and to expand program offerings in high-demand health care programs. Funds shall be used for the following purposes:

Health sciences equipment; Health sciences supplies; Supplement the salaries of health sciences faculty; Establish new full- or part-time health sciences faculty positions to increase instructional capacity; and/or National League of Nursing accreditation fees.

These funds may not be used for health sciences faculty travel. Allocation Method: A total of $16,842,300 is allocated in FY 2010-11 through the Health Sciences allotment.4 Of these funds, $10,600,000 will be allocated to colleges based on the number of actual FTE in associate degree and diploma health sciences programs. A college shall receive $427 for each eligible FTE. Consistent with the Joint Conference Committee Report, the remaining $6,242,300 will be allocated based on the actual FTE in associate degree and diploma nursing, dental, and radiology technology programs. A college will receive an additional $423 for each FTE in these programs. Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: current ­ 220, 230, 421*; capital outlay ­ 940 (New) Vocational code: current ­ 57, capital outlay ­ 58 *Note that colleges may only use these funds in purpose 421 in a situation where a faculty member is split-coded because he/she has academic administration duties in addition to teaching duties. Colleges may not use Health Sciences funds to support positions that do not have teaching responsibilities.

4

During the 2009 Session, the General Assembly appropriated an additional $1,407,300 for FY 2010-11. See Joint Conference Committee Report on the Continuation, Expansion and Capital Budgets dated August 3, 2009, page F-14, Item #86.

25

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM HEALTH SCIENCES ALLOTMENT ELIGIBLE HEALTH SCIENCES PROGRAMS 2009-10 FTE 4,407.0 1,814.8 2,346.6 12.6 127.6 34.1 100.5 834.7 66.9 45.1 38.5 797.6 609.8 22.1 1,887.5 2,188.7 31.4 643.8 320.0 153.1 180.9 27.0 499.5 33.7 162.8 245.6 115.9 108.7 1,664.1 818.9 98.6 639.9 378.2 17.0 14.5 375.5 6.3 105.9 5.9 628.0 28.9 (1.0) 27.1 2,175.0 24,839.2 14,751.3

A45100 A45110 A45120 A45130 A45160 A45170 A45190 A45260 A45280 A45310 A45320 A45340 A45360 A45370 A45380 A45400 A45410 A45420 A45440 A45460 A45500 A45560 A45580 A45610 A45620 A45640 A45670 A45680 A45700 A45720 A45730 A45740 A45750 A45760 A45770 A45780 D45180 D45200 D45220 D45240 D45300 D45450 D45510 D45660 Total

ASSOCIATE DEGREE NURSING (INTEGRATED) ASSOCIATE DEGREE NURSING ASSOCIATE DEGREE NURSING(NON-INTEGRATED) CANCER INFORMATION MANAGEMENT CARDIOVASCULAR SONOGRAPHY CARDIOVASCULAR TECH. (INVASIVE & NON-INV CLINICAL TRIALS RESEARCH ASSOCIATE DENTAL HYGIENE DENTAL LABORATORY TECHNOLOGY DIETETIC TECHNICIAN ELECTRONEURODIAGNOSTIC TECHNOLOGY EMERGENCY MEDICAL SCIENCE HEALTH INFORMATION TECHNOLOGY HISTOTECHNOLOGY HUMAN SERVICES TECHNOLOGY MEDICAL ASSISTING INTERVENTIONAL CARDIAC AND VASCULAR TECH MEDICAL LABORATORY TECHNOLOGY MEDICAL SONOGRAPHY NUCLEAR MEDICINE TECHNOLOGY OCCUPATIONAL THERAPY ASSISTANT OPTICIANRY PHARMACY TECHNOLOGY PHYSICAL FITNESS TECHNOLOGY PHYSICAL THERAPIST ASSISTANT (2-YEAR) PHYSICAL THERAPIST ASSISTANT (1+1) POLYSOMNOGRAPHY RADIATION THERAPY TECHNOLOGY RADIOGRAPHY RESPIRATORY THERAPY SPEECH-LANGUAGE PATHOLOGY ASSISTANT SURGICAL TECHNOLOGY THERAPEUTIC MASSAGE THERAPEUTIC RECREATION THERAPEUTIC RECREATION ASSISTANT VETERINARY MEDICAL TECHNOLOGY CENTRAL STERILE PROCESSING CT & MRI TECHNOLOGY CYTOTECHNOLOGY DENTAL ASSISTING DIALYSIS TECHNOLOGY MEDICAL DOSIMETRY OPTHTHALMIC MEDICAL ASSISTANT PRACTICAL NURSING

Nursing, Dental, and Radiology Technology programs

26

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM HEALTH SCIENCES PROGRAMS FY 2010-11 Health Sciences FTE 424.9 999.2 293.7 89.9 175.5 135.0 382.3 581.6 291.8 450.5 1,036.6 874.0 178.0 369.2 204.2 354.7 868.1 667.6 567.0 866.1 1,256.8 572.2 1,083.2 258.9 162.6 151.1 152.2 488.7 376.4 127.3 165.0 267.1 335.3 151.1 221.8 80.7 163.3 916.6 116.7 374.8 97.3 181.0 239.3 241.7 145.9 1,194.5 318.5 319.3 415.6 483.8 309.4 110.8 494.1 1,676.2 366.7 379.8 448.9 185.2 24,839.4 Nursing, Dental and Radiology Technology FTE 203.4 622.8 214.6 89.9 139.2 90.0 267.5 441.1 157.1 250.9 659.1 346.8 162.6 223.5 140.3 239.0 319.4 275.3 264.5 585.6 769.5 275.2 605.4 190.8 74.4 139.2 111.4 394.7 155.3 20.6 111.8 130.0 139.6 90.8 161.1 0.0 72.9 469.3 116.3 195.9 85.6 128.5 129.4 241.7 145.9 729.5 185.1 193.6 188.6 214.2 226.2 68.2 333.0 1,234.3 271.9 153.5 154.5 151.1 14,751.5 Total Health Sciences Allocation $267,398 689,946 216,137 76,390 133,789 95,699 276,365 434,846 190,960 298,402 721,293 519,708 144,771 252,105 146,523 252,501 505,642 401,381 353,898 617,431 861,949 360,637 718,426 191,227 100,889 123,381 112,107 375,601 226,330 63,067 117,705 168,981 202,131 102,929 162,831 34,430 100,506 589,703 99,045 242,819 77,732 131,630 156,860 205,457 124,002 818,441 214,211 218,157 257,141 297,091 227,741 76,134 351,779 1,237,585 271,527 227,015 256,947 142,971 16,842,300

Community College Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC Total

Allocation $181,331 426,396 125,343 38,356 74,897 57,610 163,156 248,189 124,502 192,239 442,373 372,968 75,977 157,532 87,149 151,348 370,467 284,893 241,954 369,614 536,308 244,182 462,234 110,492 69,401 64,468 64,967 208,561 160,617 54,337 70,408 113,970 143,074 64,489 94,647 34,430 69,666 391,134 49,814 159,930 41,526 77,253 102,111 103,161 62,262 509,743 135,900 136,237 177,337 206,445 132,038 47,266 210,870 715,283 156,486 162,055 191,581 79,023 $10,600,000

Allocation $86,067 263,550 90,794 38,034 58,892 38,089 113,209 186,657 66,458 106,163 278,920 146,740 68,794 94,573 59,374 101,153 135,175 116,488 111,944 247,817 325,641 116,455 256,192 80,735 31,488 58,913 47,140 167,040 65,713 8,730 47,297 55,011 59,057 38,440 68,184 30,840 198,569 49,231 82,889 36,206 54,377 54,749 102,296 61,740 308,698 78,311 81,920 79,804 90,646 95,703 28,868 140,909 522,302 115,041 64,960 65,366 63,948 $6,242,300

27

B3. Technical Education Purpose: The General Assembly has appropriated categorical funds to re-establish and place renewed emphasis on technical education programs. Funds may be in the following curriculum areas: Construction, Engineering, Industrial, and Transport Systems Technologies. Authorized uses of these funds include: 1. The hiring of additional faculty or faculty salary enhancements; 2. The purchase of instructional equipment for each of these programs; and/or 3. The purchase of shop, lab or other operating supplies to re-establish and support these programs. A college may both purchase the equipment and have it installed with these funds. These activities are not to be considered capital improvement projects, but rather the purchase and installation of equipment. Allocation Method: A total of $5,500,000 is allocated in FY 2010-11 through the Technical Education allotment. Funds shall be distributed among colleges based on the number of actual FTE students enrolled in the following curriculum areas: Construction, Engineering, Industrial, and Transport Systems Technologies. Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: current ­ 210, 220, 230, 240; capital outlay ­ 940 (New) Vocational code: current ­ 90, capital outlay ­ 91

28

NORTH CAROLIINA COMMUNTY COLLEGE SYSTEM Technical Education Allotment FY 2010-11 Transport Total 2009-10 Systems FTE 86 430 130 505 59 239 0 167 114 232 0 14 290 433 270 1,107 28 28 101 505 207 686 500 1,608 58 502 81 223 0 150 165 396 197 345 132 286 92 164 174 604 338 849 191 803 677 1,468 83 276 62 204 38 437 13 105 191 419 111 266 27 125 24 201 46 239 8 206 15 48 24 301 0 104 0 412 83 608 104 227 0 174 0 108 0 293 0 192 185 872 0 91 105 271 1 86 0 173 41 152 0 269 87 280 21 144 42 404 243 1,035 120 314 0 282 191 470 48 209 5,803 21,741 2010-11 Allotment $ 108,781 127,754 60,462 42,247 58,691 3,542 109,540 280,047 7,083 127,754 173,543 406,789 126,995 56,414 37,947 100,179 87,277 72,352 41,488 152,799 214,779 203,142 371,372 69,822 51,608 110,551 26,563 105,998 67,292 31,622 50,849 60,462 52,114 12,143 76,146 26,310 104,227 153,811 57,426 44,018 27,322 74,123 48,572 220,597 23,021 68,557 21,756 43,765 38,453 68,051 70,834 36,429 102,203 261,832 79,435 71,340 118,900 52,871 $ 5,500,000

Community College Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC Total

Construction Engineering 99 0 110 169 13 86 63 0 37 44 0 3 18 64 229 380 0 0 70 157 90 163 304 555 197 33 60 60 52 56 0 71 30 44 40 51 27 0 285 98 124 236 172 231 253 372 72 2 35 39 152 87 54 0 142 22 0 59 85 0 99 40 91 0 53 145 33 0 89 101 100 0 163 0 281 126 38 0 35 85 63 0 256 0 73 50 365 143 40 0 0 165 61 12 69 53 18 87 66 89 95 31 12 0 220 36 310 406 42 66 45 160 64 125 106 27 5,700 5,029

Industrial 245 96 81 104 37 11 61 228 0 177 226 249 214 22 42 160 74 63 45 47 151 209 166 119 68 160 38 64 96 13 38 102 0 0 87 4 249 118 85 54 45 37 69 179 51 1 12 51 6 114 67 111 106 76 86 77 90 28 5,209

Source: Annual Statistcal Report, Table 27, FTE by Curriculum Program Area

29

B4. Vocational Education (Federal) ­ CFDA #84.048A Purpose: Federal Vocational Education funds are provided through the Carl D. Perkins Career and Technical Education Act of 2006. The purpose of the Carl D. Perkins Career and Technical Education Act is to make the United States more competitive in the world economy by developing more fully the academic, career, and technical skills of students who enroll in career and technical education programs. Key elements of the Act include:

Places major emphasis on providing strong academic and career and technical competencies, integrating instruction, providing professional development, and expanding the use of technology in the classroom. Maintains emphasis on providing services for students who are members of a special population (persons with disabilities, economically disadvantaged persons, individuals preparing for nontraditional training and employment, single parents, displaced homemakers, and individuals with limited English proficiency). Provides greater accountability by requiring the measurement of student achievement against established core indicators of performance at both state and local levels.

Funds must be used in accordance with the budget approved by System Office program staff. No more than five percent of a college's allocation may be used for college administration. Allocation Method: The Carl D. Perkins Act requires that at least 85% of available funding be allocated to local community colleges. A total of $10,174,955 is expected to be available from the federal government for allocation through the Vocational Education allotment. These funds are allocated based on each college's pro-rata share of Pell Grant recipients pursuing a credential in a vocational/technical curriculum program in relation to the total number of Pell Grant recipients pursuing such credentials systemwide.5 Colleges' allocations are divided into two time periods: July 2010-September 2010 and October 2010-June 2011. Funds allotted for the October 2010-June 2011 time period are subject to the availability of funds. Between July 1, 2010 and September 30, 2010, colleges may not expend more than the allotted amount for that time period. After October 1, 2010, the total allotment is available for spending, assuming full funding availability. Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: current - as needed, consistent with the activities in the approved budget and the Accounting Procedures Manual; capital outlay ­ 940 (New)

Vocational code: 10-15 and 17-19, as prescribed by the Accounting Procedures Manual; 16 ­ Equipment can only be used with purpose code 940 (New)

In accordance with Section 132.(c)(1) of the Carl D. Perkins Vocational & Technical Education Act of 1998, no institution or consortium shall receive an allocation of federal vocational education funds in an amount that is less than $50,000. For 2010-11 Mayland CC did not generate $50,000 and elected not to form a consortium.

5

30

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM VOCATIONAL EDUCATION ALLOTMENTS FY 2010-11 VOED Allotment July, Aug., Sept. Oct. 2010- June 2010 2011 Approx. 32% Approx. 68% $67,668 $143,795 45,050 95,731 32,214 68,455 35,143 74,678 22,120 47,005 17,260 36,677 65,176 138,499 67,419 143,265 31,404 66,734 55,829 118,637 78,697 167,231 259,395 551,214 57,886 123,007 39,442 83,814 23,989 50,977 41,498 88,184 65,612 139,425 56,889 120,888 60,814 129,230 204,998 435,622 142,564 302,949 66,173 140,617 175,900 373,787 37,635 79,974 36,763 78,121 43,679 92,818 23,989 50,977 28,475 60,510 57,699 122,610 19,378 41,179 0 0 23,865 50,712 37,884 80,504 16,699 35,485 41,747 88,713 0 0 37,136 78,915 86,860 184,576 30,345 64,483 43,181 91,759 21,871 46,475 63,805 135,586 36,140 76,797 136,832 290,768 26,108 55,479 80,192 170,409 36,763 78,121 41,872 88,978 28,538 60,643 51,842 110,163 49,972 106,191 19,628 41,708 86,361 183,517 98,885 210,131 57,574 122,345 56,266 119,564 42,869 91,097 41,993 89,240 $3,255,986 $6,918,969

Community College Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC** McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC* Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC Total

Actual Pell Grant Awards 1,086 723 517 564 355 277 1,046 1,082 504 896 1,263 4,163 929 633 385 666 1,053 913 976 3,290 2,288 1,062 2,823 604 590 701 385 457 926 311 0 383 608 268 670 0 596 1,394 487 693 351 1,024 580 2,196 419 1,287 590 672 458 832 802 315 1,386 1,587 924 903 688 674 52,255

Percent of Pell Grants 0.0208 0.0138 0.0099 0.0108 0.0068 0.0053 0.0200 0.0207 0.0096 0.0171 0.0242 0.0797 0.0178 0.0121 0.0074 0.0127 0.0202 0.0175 0.0187 0.0630 0.0438 0.0203 0.0540 0.0116 0.0113 0.0134 0.0074 0.0087 0.0177 0.0060 0.0000 0.0073 0.0116 0.0051 0.0128 0.0000 0.0114 0.0267 0.0093 0.0133 0.0067 0.0196 0.0111 0.0420 0.0080 0.0246 0.0113 0.0129 0.0088 0.0159 0.0153 0.0060 0.0265 0.0304 0.0177 0.0173 0.0132 0.0129 1.0000

Total Allotment 2010-11 $211,463 140,781 100,669 109,821 69,125 53,937 203,675 210,684 98,138 174,466 245,928 810,609 180,893 123,256 74,966 129,682 205,037 177,777 190,044 640,620 445,513 206,790 549,687 117,609 114,884 136,497 74,966 88,985 180,309 60,557 0 74,577 118,388 52,184 130,460 0 116,051 271,436 94,828 134,940 68,346 199,391 112,937 427,600 81,587 250,601 114,884 130,850 89,181 162,005 156,163 61,336 269,878 309,016 179,919 175,830 133,966 131,233 $10,174,955

Admin Cost 5% Maximum $10,573 7,039 5,033 5,491 3,456 2,697 10,184 10,534 4,907 8,723 12,296 40,530 9,045 6,163 3,748 6,484 10,252 8,889 9,502 32,031 22,276 10,340 27,484 5,880 5,744 6,825 3,748 4,449 9,015 3,028 0 3,729 5,919 2,609 6,523 0 5,803 13,572 4,741 6,747 3,417 9,970 5,647 21,380 4,079 12,530 5,744 6,543 4,459 8,100 7,808 3,067 13,494 15,451 8,996 8,792 6,698 6,562 $508,746

*Pamlico CC and Craven CC are combined as a consortium. **In accordance with Section 132.(c)(1) of the Carl D. Perkins Vocational & Technical Education Act of 1998, no institution or consortium shall receive an allocation of federal vocational education funds in an amount that is less than $50,000. Mayland CC did not generate $50,000 and elected not to form a consortium.

31

B5. Tech Prep (Federal) ­ CFDA #84.243A Purpose: Title II of the Carl D. Perkins Career and Technical Education Act of 2006 provides funding for Tech Prep programs. A Tech Prep program combines two years of secondary education with a minimum of two years of postsecondary education in a nonduplicative, sequential course of study. The program integrates academic and career and technical instruction; utilizes work-based learning; builds student competence in math, science, reading, writing, communications, economics, and workplace skills; and leads to an associate or baccalaureate degree, and/or placement in appropriate employment. Funds must be used consistent with the budget approved by the System Office program staff. Allocation Method: A total of $903,184 is available from the federal government for Tech Prep programs. Funds are allocated to colleges based on a competitive application process. Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: current ­ 440, capital outlay ­ 940 (New) Vocational code: 80 Capital expenditures must be coded to either object code 555170 (minor equipment) or 553600 (major equipment).

32

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM TECH PREP ALLOTMENTS FY 2010-11 Community College Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC TOTAL

1 $26,000

Total Allotment $29,569 40,000 52,666 19,000 0 22,844 26,000 0 21,333 0 35,333 0 0 29,844 41,860 18,489 0 42,333 0 44,666 66,795 23,666 56,333 0 18,487 19,400 0 30,111 19,500 0 0 0 0 0 0 0 13,645 23,313 0 23,666 19,000 30,666 0 33,000 26,000 0 23,666 0 0 0 0 0 0 0 28,333 23,666 0 0 $903,184

1

2

3

of this allotment supports BCC's partnership with Beaufort County Schools; the remaining $26,666 supports its partnership with Hyde County Schools, Tyrell County Schools and Washington County Schools. 2 $19,000 of this allotment supports COA's partnership with Perquimans County, Edenton-Chowan Schools; the remaining $22,860 supports its partnership with Dare County Schools. 3 $23,666 of this allotment supports FTCC's partnership with Stokes County Schools; the remaining $43,129 supports its partnership with Winston-Salem Forsyth County Schools

33

B6. Child Care Purpose: The intent of the NC Child Care Grant is to assist student-parents with the financial responsibilities for child care expenses so they may stay enrolled and complete their educational goals. All curriculum student-parents are eligible to apply; with the exception of qualified "work study" students, no faculty, staff, or administrator employed by the college may receive or utilize funds from this grant. Child care coordinators and financial aid officers at each college shall jointly determine the need of student-parents for child care in coordination with local social services agencies that provide child care funding for qualified students. These funds must be disbursed directly to the provider or the student-parent only upon receipt of an invoice from a child care provider accompanied by a student's class attendance report. Under no circumstances may colleges pay in advance for services which have not been received. Neither these funds nor any other state funds may be used to support nonState costs, including but not limited to non-instructional activities for college childcare facilities. (State funds cannot be used to support child care facilities or support child care staff positions.) Colleges may not expend any of these allocations for administrative overhead, including salaries. Allocation Method: A total of $1,838,215 is allocated in FY 2010-11 through the Child Care Grant allotment. Each college will be authorized funds on the following formula: $20,000 (base) + $3.51 per curriculum budget FTE. Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose code: 530 Vocational code: 80

34

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM CHILD CARE ALLOTMENT FY 2010-11

Community College Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC and TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of the Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC Total

Base Allotment $20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 $1,160,000

Curriculum FTE 4,188 5,652 1,617 1,515 1,921 1,297 3,951 7,570 1,519 4,421 4,194 13,993 3,364 3,946 2,175 2,721 3,395 3,716 2,607 8,626 7,159 5,572 10,994 1,503 1,837 2,340 1,207 3,697 2,860 670 1,154 1,296 2,642 740 2,332 443 2,268 6,215 2,269 1,528 717 2,352 1,974 5,721 1,304 3,428 1,873 2,027 1,958 2,436 2,785 1,048 3,220 11,522 2,988 2,835 2,508 1,663 193,473

Per Curriculum FTE Amount $3.505 $14,681 19,813 5,668 5,311 6,734 4,547 13,850 26,536 5,325 15,498 14,702 49,052 11,792 13,833 7,624 9,538 11,901 13,026 9,139 30,238 25,096 19,533 38,539 5,269 6,440 8,203 4,231 12,960 10,026 2,349 4,045 4,543 9,261 2,594 8,175 1,553 7,950 21,787 7,954 5,356 2,513 8,245 6,920 20,055 4,571 12,017 6,566 7,106 6,864 8,539 9,763 3,674 11,288 40,390 10,474 9,938 8,792 5,828 $678,215

Total 2010-11 Allotment $34,681 39,813 25,668 25,311 26,734 24,547 33,850 46,536 25,325 35,498 34,702 69,052 31,792 33,833 27,624 29,538 31,901 33,026 29,139 50,238 45,096 39,533 58,539 25,269 26,440 28,203 24,231 32,960 30,026 22,349 24,045 24,543 29,261 22,594 28,175 21,553 27,950 41,787 27,954 25,356 22,513 28,245 26,920 40,055 24,571 32,017 26,566 27,106 26,864 28,539 29,763 23,674 31,288 60,390 30,474 29,938 28,792 25,828 $1,838,215

35

B7. Small Business Centers Purpose: The mission of each Small Business Center (SBC) is to help the many small businesses within its service area survive, prosper, and contribute to the economic well-being of the community and the state. Small Business Centers provide a wide variety of seminars and workshops, one-on-one counseling, a library of resources, and referrals to other sources of help to owners and operators of small businesses. A minimum of $9,000 of a college's allocation shall be spent on non-FTE instruction, such as SBC seminars. A maximum of 10% of funds may be spent on one-to-one instruction. A minimum of $1,000 is to be spent on new resources for the resource center. The expenditure of SBC funds must be consistent with the State Board's SBC Guidelines (see CC07-142). Allocation Method: A total of $5,883,027 is allocated in FY 2010-11 through the Small Business Center allotment. Each college receives a base allocation of $90,254. The base amount increased from FY 2009-10 due to 1) the restoration of SBC funds and 2) the increase in required employer contribution rates for hospitalization insurance and retirement.6 Colleges also receive an additional performance allocation. This allocation is based on the following factors (as measured using the sum of the prior two years' data):

Number of Non-FTE Attendees Number of Non-FTE Seminars Number of Counseling Clients Number of Counseling Hours Number of Small Businesses in Service Area

For each factor, a college earns 1-58 points. The sum of each factor's score determines a college's total point score. The total number of points determines a college's performance allocation; each point earns approximately $76. For 2010-11, performance funding allocations are calculated based on the colleges' pro-rata share of total point score, limited to $648,295 in total due to funds availability. Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: current ­ 363; capital outlay ­ 940 (New) Vocational code: 80 Capital expenditures must be coded to either object code 555150 (minor equipment) or 553500 (major equipment).

Joint Conference Committee Report on the Continuation, Expansion and Capital Budgets dated June 28, 2010, page F8, Item #38.

6

36

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM SMALL BUSINESS CENTER ALLOTMENT FY 2010-11

Community College Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC and TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of the Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC TOTAL

Base Allocation $90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 90,254 $5,234,732

Performance Allocation Total Allocation $9,256 $99,510 21,319 111,573 9,104 99,358 2,276 92,530 18,967 109,221 7,966 98,220 7,663 97,917 14,870 105,124 14,187 104,441 15,022 105,276 18,967 109,221 15,705 105,959 7,207 97,461 16,691 106,945 16,843 107,097 13,049 103,303 8,270 98,524 11,456 101,710 12,215 102,469 16,615 106,869 20,029 110,283 15,629 105,883 19,650 109,904 12,215 102,469 9,256 99,510 6,828 97,082 11,911 102,165 10,166 100,420 10,849 101,103 5,918 96,172 10,925 101,179 3,718 93,972 10,394 100,648 8,421 98,675 7,435 97,689 2,807 93,061 8,573 98,827 14,263 104,517 16,919 107,173 9,180 99,434 2,276 92,530 11,911 102,165 8,952 99,206 13,277 103,531 5,614 95,868 10,015 100,269 6,980 97,234 12,670 102,924 6,980 97,234 4,856 95,110 5,311 95,565 10,166 100,420 11,077 101,331 21,016 111,270 12,898 103,152 10,470 100,724 6,525 96,779 14,567 104,821 $648,295 $5,883,027

37

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM SMALL BUSINESS CENTER PERFORMANCE FUNDING CALCULATION FY 2010-11

Seminar Seminars Offerings Seminar Attendees COLLEGE Number 89 339 72 54 266 70 101 109 133 144 189 129 80 189 165 130 143 83 164 183 207 139 201 172 61 60 120 192 167 85 132 57

Counseling Clients Hours

Small Businesses

Alamance CC Asheville-Buncombe TCC A h ill B b Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC and TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of the Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Ed b Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC

Ranking Ranking Ranking (points) Number (points) Number (points) 19 1177 21 129 22 58 4629 56 769 58 14 824 9 151 30 1 275 2 100 16 56 4450 54 240 49 12 947 15 108 17 25 1737 32 51 3 27 2537 45 202 43 39 1892 35 236 48 43 1887 34 175 38 50 2372 44 628 57 34 2116 39 242 50 15 1234 22 124 21 50 2576 47 263 51 46 2605 48 156 33 35 1925 36 145 26 42 1169 20 50 2 17 1701 31 149 29 45 4423 53 135 24 49 2933 51 203 44 54 4575 55 378 54 40 1851 33 235 47 53 7198 58 177 39 48 2821 50 148 28 9 913 12 198 42 7 677 6 159 35 32 2746 49 170 37 52 2261 41 46 1 47 2196 40 119 20 18 1548 29 92 13 37 948 16 151 30 3 258 1 131 23

Hours 246.1 1444 41 1444.41 645.75 156.5 688.8 348.05 80.67 342 445.8 424.2 1290.45 310.9 192.35 192 35 432.52 689.3 531 70.2 227.5 363.75 363 75 295.41 639.45 438.29 1073 273.43 487 254.25 355 51.17 200.3 192.92 192 92 546 207.5

Ranking (points) Number 20 3,441 57 8 326 8,326 48 1,595 8 556 49 3,767 29 2,634 3 3,190 , 28 8,450 39 2,220 35 5,154 55 4,368 26 32,135 12 2,018 2 018 36 2,831 50 4,647 45 2,425 2 3,942 19 10,505 32 910 25 6,009 47 9,752 37 5,780 53 14,645 22 1,259 , 42 1,519 21 1,866 30 1,083 1 3,207 14 1,880 13 819 46 1,386 18 732

FY10-11 Overall Total Points Based Points Point Ranking Score Performance Ranking Allocation (points) 40 122 $9,256 23 52 281 21,319 21 319 58 19 120 9,104 21 3 30 2,276 1 42 250 18,967 53 32 105 7,966 16 38 101 7,663 , 15 53 196 14,870 45 26 187 14,187 42 48 198 15,022 46 44 250 18,967 53 58 207 15,705 48 25 95 7,207 7 207 13 36 220 16,691 50 45 222 16,843 51 30 172 13,049 40 43 109 8,270 17 55 151 11,456 33 7 161 12,215 12 215 36 50 219 16,615 49 54 264 20,029 56 49 206 15,629 47 56 259 19,650 55 13 161 12,215 , 36 17 122 9,256 23 21 90 6,828 10 9 157 11,911 34 39 134 10,166 26 22 143 10,849 30 5 78 5,918 5 918 8 15 144 10,925 31 4 49 3,718 4

38

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM SMALL BUSINESS CENTER PERFORMANCE FUNDING CALCULATION FY 2010-11

Seminar Seminars Offerings Seminar Attendees COLLEGE Number 96 131 110 56 104 227 149 92 60 114 59 100 81 141 63 113 70 63 58 93 92 281 59 132 128 119

Counseling Clients Hours Ranking (points) 16 41 5 24 31 23 56 27 7 43 38 40 17 4 6 44 34 10 9 52 15 51 58 33 11 54

Small Businesses

Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC TOTAL:

Ranking Ranking Ranking (points) Number (points) Number (points) 23 1285 25 147 27 36 937 13 116 19 28 1560 30 70 6 2 408 3 73 7 26 1261 23 142 25 55 3674 52 108 17 44 2019 37 314 53 20 1283 24 152 32 7 587 5 69 5 30 2569 46 95 14 5 836 10 215 45 24 938 14 233 46 16 1467 26 57 4 41 2334 42 87 10 10 1000 17 91 12 29 2357 43 197 41 12 433 4 84 8 10 1138 19 89 11 4 878 11 98 15 22 762 8 181 40 20 2086 38 160 36 57 5105 57 464 55 5 1492 27 284 52 37 1049 18 157 34 33 749 7 84 8 31 1529 28 580 56 1711 10607

Hours 204.45 477 124.49 295.25 356.8 277 1368.61 312.65 155.2 514 445.08 467.5 205.75 205 75 95.93 139.75 519.75 398 161 159.54 1039.9 201.2 755.8 1529.71 380 187.72 1256.4

FY10-11 Overall Total Points Based Points Point Ranking Score Performance Ranking Allocation Number (points) 4,713 46 137 10,394 28 552 2 111 8,421 18 2,392 29 98 7,435 14 277 1 37 2,807 3 991 8 113 8,573 19 3,694 41 188 14,263 43 2,701 33 223 16,919 52 1,585 18 121 9,180 22 886 6 30 2,276 1 1,909 24 157 11,911 34 1,817 20 118 8,952 20 6,874 51 175 13,277 41 1,190 1 190 11 74 5,614 5 614 7 2,824 35 132 10,015 25 4,952 47 92 6,980 11 1,127 10 167 12,670 38 2,778 34 92 6,980 11 1,377 14 64 4,856 5 2,474 31 70 5,311 6 1,247 12 134 10,166 26 3,120 37 146 11,077 32 28,171 57 277 21,016 57 2,349 28 170 12,898 39 1,511 16 138 10,470 29 2,278 27 86 6,525 9 1,897 23 192 14,567 44 8545 $76 $648,295

7216 1704 111137 58 - 1 points based highest to lowest

1708 25972.45

1711 238737 1711 Approximate Value Per Point:

39

B8. Customized Training Per G.S. 115D-5.1(e), the Customized Training Program offers programs and training services to assist new and existing business and industry to remain productive, profitable, and within the State. Funds are allocated to colleges through four means: a) Customized Training ­ Program Projects Purpose: Funds are allotted to colleges to provide customized training assistance in support of full-time production and customer service positions created in the State of North Carolina, thereby enhancing the growth potential of companies located in the state while simultaneously preparing the State's workforce with skills essential to successful employment in emerging industries. Business and industries must meet certain criteria to be eligible to receive assistance. Funds must be used in accordance with the Customized Training Guidelines adopted by the State Board (see Numbered Memo CC09-14). Colleges receive a 10 percent administrative allowance based upon the current fiscal year expenditures that support approved Customized Training Program projects. These administrative funds may be used for the following purposes: Project clerical staff; Project administrative personnel; Project coordination staff; Travel expenses for personnel involved with the developing, coordinating, implementing, and monitoring of a Customized Training project; Administrative business operations costs (printing, mailing, filing, etc.) associated with Customized Training projects; and Printing costs of marketing materials for the Customized Training Program.

Allocation Method: Funds are allocated to colleges upon System Office approval of Funds Action Requests for qualifying projects. Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: 361 (Use this purpose code regardless of whether the project is approved as job growth, technology investment, or productivity enhancement.) Vocational code: 80

40

b) Customized Training ­ Business and Industry Support Purpose: Colleges receive an initial support allocation that includes both an administrative ($40,000) and an instructional component. Colleges may only use up to $40,000 for administrative purposes. These funds may be used to support ­ in total or in part ­ a position whose responsibility is to serve business and industry. The instructional component may only be used for instructional activities supporting the Manufacturing, Warehousing and Distribution, Business Support Services, Information Technology, and Computer Software Design industries. Allocation Method: A total of $2,990,000 is allocated to community colleges for Business and Industry Support. Each college receives an administrative allotment of $40,000.7 Colleges receive an additional instructional allotment based on the eligible employment in the college's service area per the following formula: Eligible Employment Less than 5,000 jobs 5000 ­ 10,000 jobs Greater than 10,000 jobs Instructional Allotment $7,500 $10,000 $20,000

Eligible employment is defined as employment in the Manufacturing, Warehousing and Distribution, Business Support Services, Information Technology, and Computer Software Design industries, as reported by the NC Employment Security Commission for the 4th quarter of 2009. Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: 364 Vocational code: 80

7

The only exception is Pamlico CC, which is combined into a consortium with Craven CC.

41

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM CUSTOMIZED TRAINING: BUSINESS AND INDUSTRY SUPPORT FY 2010-11 Administrative Instructional Allotment Allotment Community College Alamance CC $40,000 $20,000 Asheville-Buncombe TCC 40,000 20,000 Beaufort County CC 40,000 7,500 Bladen CC 40,000 10,000 Blue Ridge CC 40,000 10,000 Brunswick CC 40,000 7,500 Caldwell CC & TI 40,000 10,000 Cape Fear CC 40,000 20,000 Carteret CC 40,000 7,500 Catawba Valley CC 40,000 20,000 Central Carolina CC 40,000 20,000 Central Piedmont CC 40,000 20,000 Cleveland CC 40,000 10,000 Coastal Carolina CC 40,000 7,500 College of The Albemarle 40,000 7,500 Craven CC 40,000 10,000 Davidson County CC 40,000 20,000 Durham TCC 40,000 20,000 Edgecombe CC 40,000 7,500 Fayetteville TCC 40,000 20,000 Forsyth TCC 40,000 20,000 Gaston College 40,000 20,000 Guilford TCC 40,000 20,000 Halifax CC 40,000 7,500 Haywood CC 40,000 7,500 Isothermal CC 40,000 7,500 James Sprunt CC 40,000 10,000 Johnston CC 40,000 10,000 Lenoir CC 40,000 7,500 Martin CC 40,000 7,500 Mayland CC 40,000 7,500 McDowell TCC 40,000 10,000 Mitchell CC 40,000 20,000 Montgomery CC 40,000 7,500 Nash CC 40,000 20,000 Pamlico CC* * * Piedmont CC 40,000 7,500 Pitt CC 40,000 10,000 Randolph CC 40,000 20,000 Richmond CC 40,000 10,000 Roanoke-Chowan CC 40,000 7,500 Robeson CC 40,000 10,000 Rockingham CC 40,000 10,000 Rowan-Cabarrus CC 40,000 20,000 Sampson CC 40,000 7,500 Sandhills CC 40,000 10,000 South Piedmont CC 40,000 20,000 Southeastern CC 40,000 7,500 Southwestern CC 40,000 7,500 Stanly CC 40,000 7,500 Surry CC 40,000 10,000 Tri-County CC 40,000 7,500 Vance-Granville CC 40,000 20,000 Wake TCC 40,000 20,000 Wayne CC 40,000 10,000 Western Piedmont CC 40,000 10,000 Wilkes CC 40,000 10,000 Wilson CC 40,000 10,000 Total $2,280,000 $710,000 *Craven CC and Pamlico CC are combined into a consortium.

Total Allotment $60,000 60,000 47,500 50,000 50,000 47,500 50,000 60,000 47,500 60,000 60,000 60,000 50,000 47,500 47,500 50,000 60,000 60,000 47,500 60,000 60,000 60,000 60,000 47,500 47,500 47,500 50,000 50,000 47,500 47,500 47,500 50,000 60,000 47,500 60,000 * 47,500 50,000 60,000 50,000 47,500 50,000 50,000 60,000 47,500 50,000 60,000 47,500 47,500 47,500 50,000 47,500 60,000 60,000 50,000 50,000 50,000 50,000 $2,990,000

42

c) Customized Training ­ Regional Capacity Building Purpose: Per G.S. 115D-5.1(f3), up to eight percent of the funds appropriated each year for Customized Training may be used to train and support regional community college personnel to deliver training services. These funds support much-needed depth in the training services delivery capacity of the NC Community College System. Funds are allotted to six colleges that serve as hosts for these regional trainers. Funds will be used to support salary and fringes as well as travel and subsistence, supplies and materials, long distance telephone expenses, and training certification costs for these regional positions. Even though the regional trainers are employees of the host colleges, these positions function as regional resources for training and support for approved Customized Training Program projects. Regional trainers may not be utilized for instruction generating budget FTE. Allocation Method: A total of $763,204 is allocated to six colleges for Regional Capacity Building. This amount is less than the eight percent of funds appropriated that is allowable. Host community colleges were determined based on 1) the college having adequate infrastructure to support East/West regions, 2) the availability of dedicated space with appropriate office furniture and equipment at the college, and 3) the convenience of the location for the regional trainer. Recommended allocations are as follows: College Asheville-Buncombe TCC Beaufort County CC Blue Ridge CC Cleveland CC Sandhills CC Edgecombe CC Total Instructional Area Continuous Improvement, West Safety, East Safety, West Leadership, West Leadership, East Continuous Improvement, East Allocation Amount $177,698 $119,768 $90,682 $108,860 $108,860 $157,336 $763,204

Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: 360 Vocational code: 80

43

d) Customized Training ­ Local Capacity Building Purpose: Per G.S. 115D-5.1(f2), up to ten percent of college-delivered training expenditures and up to five percent of contractor-delivered training expenditures of the prior fiscal year may be allotted to each college for capacity building at that college. Colleges will utilize these funds to build the internal capacity of the college to provide customized training through instructor/trainer skill-specific training, certifications, and development of instructional materials at the local level. Accessing Funds: Colleges may access a maximum of $243,955 for local capacity building. The following page outlines the maximum amount of local capacity building funds that each college may access based on the amount of college- and contractordelivered training expenditures incurred by the college in FY 2009-10. In order to access these funds, colleges must identify instructional delivery deficiencies and submit a description of how receipt of the funds will address such deficiencies. Colleges must also submit a projected budget for approval by the Associate Vice President of Customized Training. Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: 359 Vocational code: 80

44

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM Customized Training Capacity Building - Local

FY 2010-11

College

FY 2009-10 Total Expenditures $ 18,456 34,704 16,582 772 22,876 0 1,827 4,534 0 126,574 49,367 48,277 18,172 16,119 18,423 15,692 47,544 103,922 46,719 5,370 55,223 76,893 468,430 474 0 0 5,052 138,330 793,712 29,304 0 7,331 63,427 10,609 23,542 0 0 6,908 15,108 53,046 0 20,096 34,483 50,930 51,104 70,766 121,294 0 4,755 3,251 16,211 8,455 30,880 232,461 11,301 38,307 7,911 23,439 3,068,963

FY 2009-10 Total College Provided Expenditures $ 8,856 21,939 3,410 647 21,026 0 0 4,534 0 45,478 31,948 28,869 2,172 1,465 3,443 3,648 1,744 26,273 22,164 5,370 26,313 18,643 316,621 474 0 0 3,699 57,130 702,672 5,432 0 7,331 11,688 1,259 20,342 0 0 6,908 2,068 21,871 0 20,096 11,913 28,814 13,169 15,486 53,650 0 4,755 1,551 371 1,486 30,120 144,988 11,301 31,263 1,411 4,292 1,810,103

CT Projects 10% College Provided Capacity Building $ 886 2,194 341 65 2,103 0 0 453 0 4,548 3,195 2,887 217 147 344 365 174 2,627 2,216 537 2,631 1,864 31,662 47 0 0 370 5,713 70,267 543 0 733 1,169 126 2,034 0 0 691 207 2,187 0 2,010 1,191 2,881 1,317 1,549 5,365 0 476 155 37 149 3,012 14,499 1,130 3,126 141 429 181,010

FY 2009-10 Total Contracted* Expenditures $ 9,600 12,765 13,172 125 1,850 0 1,827 0 0 81,096 17,419 19,408 16,000 14,653 14,980 12,044 45,800 77,649 24,555 0 28,910 58,250 151,809 0 0 0 1,353 81,200 91,041 23,872 0 0 51,739 9,350 3,200 0 0 0 13,040 31,175 0 0 22,570 22,116 37,935 55,280 67,644 0 0 1,700 15,840 6,970 760 87,473 0 7,044 6,500 19,148 1,258,860

CT Projects 5% Contracted* Capacity Building $ 480 638 659 6 93 0 91 0 0 4,055 871 970 800 733 749 602 2,290 3,882 1,228 0 1,446 2,913 7,590 0 0 0 68 4,060 4,552 1,194 0 0 2,587 468 160 0 0 0 652 1,559 0 0 1,129 1,106 1,897 2,764 3,382 0 0 85 792 348 38 4,374 0 352 325 957 62,945

Total Capacity Building $ 1,366 2,832 1,000 71 2,196 0 91 453 0 8,603 4,066 3,857 1,017 880 1,093 967 2,464 6,509 3,444 537 4,077 4,777 39,252 47 0 0 438 9,773 74,819 1,737 0 733 3,756 594 2,194 0 0 691 859 3,746 0 2,010 2,320 3,987 3,214 4,313 8,747 0 476 240 829 497 3,050 18,873 1,130 3,478 466 1,386 243,955

Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC and TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of the Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC Grand Total

$

$

$

$

$

$

Assumptions: - Total Expenditures include purpose code 361 Job Growth and exclude object code 519600. - College Provided Expenditures include purpose code 361 and exclude object codes 519600 (Personal Service Contract - Job Growth clients) and 519700 (Personal Service Contract - Third Party). - Contracted expenditures include purpose code 361 and object code 519700 only. - Wilkes Media Development Center expenditures are excluded from the calculation.

45

CUSTOMIZED TRAINING PROGRAM Request for Funds to Build Instructional Capacity 10 Percent/5 Percent Funds, Purpose 359 Fiscal Year 2010 - 2011

Date Submitted:

Community College: Training/Certification Activity Description (Include Dates and Application to Customized Training Program Projects):

Training Provider:

Number of Trainees and Positions at Community College:

Total Allotment Request (List out registration fees, material costs, testing fees, certification costs, travel, etc.):

Community College President (or Designee) Signature:

Regional Customized Training Director Signature:

Associate Vice-President, Customized Training: 46

B9. Special High Cost Program Allotment Purpose: The Special High Cost Program allotment provides supplemental funds to support the operation of the Marine Science program at Cape Fear Community College and the Heavy Equipment Operator program at Wilson Community College. Allocation Method: A total of $998,141 is allocated in FY 2010-11 through the Special High Cost Program allotment. Funds are allocated between the two programs on a weighted FTE basis. The actual enrollment in the previous year for each program is multiplied by the following weights: PROGRAM WEIGHT a) Marine Science............................1.00 b) Heavy Equipment Operator..............1.25 The resulting weighted FTE for each program is multiplied by the FY 2010-11 curriculum per capita amount ($4,944.57). If the total amount appropriated for the High Cost Program allotment is not adequate to fully fund allocations as prescribed above, each college shall receive its pro-rata share of the High Cost Program appropriation. Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: current ­ 220, 230, 421; capital outlay ­930, 940 (New) Vocational code: current ­71; capital outlay ­ 73 Capital expenditures must be coded to object code 553800.

47

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM SPECIAL HIGH COST ALLOTMENT FY 2010-11

College

Program

Weighted FTE 1.00 1.25

2010-11 Per Capita Rate $4,944.57 $4,944.57

2009-10 Actual FTE 153 60

Allotment $756,519 $370,843 $1,127,362

Pro-Rata Portion of Funds Available $669,805 $328,336 $998,141

Cape Fear CC Marine Technology Wilson CC Heavy Equipment Total

48

B10.

Equipment

Purpose: The regular Equipment and Equipment Reserve allocations provide funds for administrative and educational equipment and furniture. Allocation Method: Regular Equipment A total of $43,319,732 is allocated in FY 2010-11 through the regular Equipment allotment.8 A college's regular equipment allocation is determined by the sum of the following components: Base Allocation: Each college receives a base of $100,000. High Cost Program Allocation (if applicable): Each college with an extremely high cost program (Cape Fear CC - Marine Technology; Wilson CC - Heavy Equipment Operator Program) receives an amount equal to the average actual high cost program equipment expenditures over the past three years. Weighted FTE Allocation: The remaining balance of the Equipment allotment is allocated among colleges based on each college's equipment full-time equivalent (E/FTE). Colleges receive $195.89 per E/FTE. A college's E/FTE shall be calculated by applying the following ratios to the actual FTE for the preceding year, and adding the products to obtain a sum for each college: CATEGORY WEIGHT c) Low equipment intensity programs...............0.50 (College Transfer, General Education, Basic Skills) d) Moderate equipment intensity programs......0.75 (Occupational Extension) e) High equipment intensity programs..............1.00 (Technical and Vocational) Equipment Reserve A total of $19,837,211 in over-realized tuition receipts have been approved by OSBM for carryforward and transfer to the Equipment Reserve as authorized by G.S. 115D-31(e). Equipment Reserve funds are allocated among colleges on a weighted FTE basis as described above. Colleges receive $103.61 per E/FTE.

During the 2009 Session, the General Assembly appropriated an additional $3 million for FY 2010-11. Joint Conference Committee Report on the Continuation, Expansion and Capital Budgets dated August 3, 2009, page F-14, Item #88.

8

49

Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: 920 (Regular Equipment); 921 (Equipment Reserve); Vocational code: 97 or 26, consistent the Accounting Procedures Manual Note that any categorical funds that are used for equipment should be coded to Purpose 940. This is a new purpose code created to simplify the tracking of the categorical capital outlay expenditures. All equipment-related items over $1,000 must be charged to an equipment object code and tracked in the college's inventory system. Equipment costing less than $1,000 should be coded as minor equipment. Some minor equipment items may also be charged to supplies and materials if they are determined to be consumable. Authorized Special Indebtedness to Support Equipment Section 30.7 of S.L. 2010-31 authorizes the State, with prior approval of the State Treasurer and the Council of State, to issue up to $33 million of special indebtedness to support the costs of acquiring community college equipment and completing related capital improvements. This special indebtedness will be issued in the form of Certificates of Participation (COPs). The equipment purchased with these funds must be used for teaching and research in the fields of health, science, engineering, and technical education. These funds may also be used for capital improvements to existing facilities that are necessary in order to use the equipment purchased with these funds. Note that it is not sufficient that a capital improvement would facilitate the use of the purchased equipment; the only authorized improvements are those without which purchased equipment could not be effectively utilized. The State Board will approve allocations and guidelines related to the use of these funds at a later date once the Office of State Budget and Management has issued additional guidance. Funds will be allocated on a weighted FTE basis as described above.

50

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM Equipment Allotment FY 2010-11 Equipment FTE 3,917 5,700 1,595 1,340 2,091 1,397 3,774 6,495 1,636 4,142 4,925 11,829 3,226 3,475 1,947 2,546 3,708 3,646 2,479 9,144 7,427 5,024 9,830 1,510 1,847 2,411 1,295 3,532 3,303 842 1,531 1,336 2,590 878 2,281 535 2,381 5,516 2,445 1,749 854 2,894 1,979 5,937 1,494 3,461 2,136 2,092 2,122 2,571 2,951 1,040 3,662 10,695 3,047 2,823 2,634 1,793 191,460 Total 2010-11 Allotment $867,297 1,216,566 412,443 362,491 509,604 373,657 839,284 1,372,298 420,474 911,372 1,064,753 2,417,169 731,937 780,714 481,396 598,733 826,356 814,211 585,608 1,891,207 1,554,866 1,084,145 2,025,587 395,792 461,807 572,288 353,676 791,879 747,021 264,938 399,906 361,707 607,352 271,990 546,822 204,801 566,411 1,180,523 578,948 442,610 267,289 666,902 487,664 1,262,992 392,658 777,971 518,419 509,799 515,676 603,630 678,068 303,724 817,345 2,195,031 696,873 652,994 615,971 466,087 $43,319,732

Community College Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC TOTAL

51

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM Equipment Formula FY 2010-11 LOW COLLEGES Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC TOTAL CT & GE 1,506 1,312 571 724 630 554 1,637 3,797 425 1,740 611 6,953 968 2,214 1,054 1,161 833 1,712 872 3,281 1,593 2,163 4,655 463 397 449 273 1,484 850 98 162 344 890 108 811 45 472 2,602 624 482 166 809 615 1,317 429 780 602 833 637 525 673 344 489 5,271 1,058 1,076 884 467 68,495 BS 407 406 223 96 143 259 438 469 121 422 995 1,372 220 215 240 188 632 439 271 1,187 643 416 1,109 115 71 182 110 321 455 191 338 145 209 88 176 87 178 414 339 494 105 1,014 139 392 356 380 333 318 197 226 228 53 428 1,299 355 474 285 229 21,635 SUB TOTAL 1,913 1,718 794 820 773 813 2,075 4,266 546 2,162 1,606 8,325 1,188 2,429 1,294 1,349 1,465 2,151 1,143 4,468 2,236 2,579 5,764 578 468 631 383 1,805 1,305 289 500 489 1,099 196 987 132 650 3,016 963 976 271 1,823 754 1,709 785 1,160 935 1,151 834 751 901 397 917 6,570 1,413 1,550 1,169 696 90,130 HIGH TE & V0C 2,682 4,340 1,046 791 1,291 743 2,314 3,773 1,094 2,681 3,583 7,040 2,396 1,732 1,121 1,560 2,562 2,004 1,735 5,345 5,566 3,409 6,339 1,040 1,440 1,891 934 2,213 2,010 572 992 952 1,752 632 1,521 398 1,796 3,613 1,645 1,046 551 1,543 1,359 4,404 875 2,648 1,271 1,194 1,321 1,911 2,112 704 2,731 6,251 1,930 1,759 1,624 1,196 124,978 MOD OCC 371 668 202 185 551 329 563 785 359 507 719 835 315 704 239 415 551 755 229 2,087 990 433 812 241 231 272 225 554 853 167 385 185 384 197 355 94 346 526 424 286 222 585 324 904 301 310 529 429 512 378 517 183 629 1,545 546 385 567 332 28,527 CT;GE;BS 0.50 E/FTE 957 859 397 410 387 407 1,038 2,133 273 1,081 803 4,163 594 1,215 647 675 733 1,076 572 2,234 1,118 1,290 2,882 289 234 316 192 903 653 145 250 245 550 98 494 66 325 1,508 482 488 136 912 377 855 393 580 468 576 417 376 451 199 459 3,285 707 775 585 348 45,081 TE;VOC 1.00 E/FTE 2,682 4,340 1,046 791 1,291 743 2,314 3,773 1,094 2,681 3,583 7,040 2,396 1,732 1,121 1,560 2,562 2,004 1,735 5,345 5,566 3,409 6,339 1,040 1,440 1,891 934 2,213 2,010 572 992 952 1,752 632 1,521 398 1,796 3,613 1,645 1,046 551 1,543 1,359 4,404 875 2,648 1,271 1,194 1,321 1,911 2,112 704 2,731 6,251 1,930 1,759 1,624 1,196 124,978 OCC 0.75 E/FTE 278 501 152 139 413 247 422 589 269 380 539 626 236 528 179 311 413 566 172 1,565 743 325 609 181 173 204 169 416 640 125 289 139 288 148 266 71 260 395 318 215 167 439 243 678 226 233 397 322 384 284 388 137 472 1,159 410 289 425 249 21,401

TOTAL E/FTE 3,917 5,700 1,595 1,340 2,091 1,397 3,774 6,495 1,636 4,142 4,925 11,829 3,226 3,475 1,947 2,546 3,708 3,646 2,479 9,144 7,427 5,024 9,830 1,510 1,847 2,411 1,295 3,532 3,303 842 1,531 1,336 2,590 878 2,281 535 2,381 5,516 2,445 1,749 854 2,894 1,979 5,937 1,494 3,461 2,136 2,092 2,122 2,571 2,951 1,040 3,662 10,695 3,047 2,823 2,634 1,793 191,460

52

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM Equipment Formula FY 2010-11

COLLEGES Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC TOTAL

BASE ALLOTMENT ($100,000 EACH) $100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 $5,800,000

EXCEPTIONALLY HIGH COST PROGRAMS

-

14,856 $14,856

E/FTE ALLOTMENT @ $195.89 PER E/FTE $767,297 1,116,566 312,443 262,491 409,604 273,657 739,284 1,272,298 320,474 811,372 964,753 2,317,169 631,937 680,714 381,396 498,733 726,356 714,211 485,608 1,791,207 1,454,866 984,145 1,925,587 295,792 361,807 472,288 253,676 691,879 647,021 164,938 299,906 261,707 507,352 171,990 446,822 104,801 466,411 1,080,523 478,948 342,610 167,289 566,902 387,664 1,162,992 292,658 677,971 418,419 409,799 415,676 503,630 578,068 203,724 717,345 2,095,031 596,873 552,994 515,971 351,231 $37,504,876

FY 2010-11 TOTAL EQUIP. ALLOTMENT $867,297 1,216,566 412,443 362,491 509,604 373,657 839,284 1,372,298 420,474 911,372 1,064,753 2,417,169 731,937 780,714 481,396 598,733 826,356 814,211 585,608 1,891,207 1,554,866 1,084,145 2,025,587 395,792 461,807 572,288 353,676 791,879 747,021 264,938 399,906 361,707 607,352 271,990 546,822 204,801 566,411 1,180,523 578,948 442,610 267,289 666,902 487,664 1,262,992 392,658 777,971 518,419 509,799 515,676 603,630 678,068 303,724 817,345 2,195,031 696,873 652,994 615,971 466,087 $43,319,732

53

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM Equipment Reserve Allotment FY 2010-11 Equipment FTE 3,917 5,700 1,595 1,340 2,091 1,397 3,774 6,495 1,636 4,142 4,925 11,829 3,226 3,475 1,947 2,546 3,708 3,646 2,479 9,144 7,427 5,024 9,830 1,510 1,847 2,411 1,295 3,532 3,303 842 1,531 1,336 2,590 878 2,281 535 2,381 5,516 2,445 1,749 854 2,894 1,979 5,937 1,494 3,461 2,136 2,092 2,122 2,571 2,951 1,040 3,662 10,695 3,047 2,823 2,634 1,793 191,460 2010-11 Equipment Reserve $405,841 590,578 165,258 138,838 216,649 144,743 391,025 672,948 169,506 429,153 510,280 1,225,605 334,247 360,045 201,729 263,792 384,187 377,763 256,850 947,412 769,513 520,538 1,018,488 156,451 191,368 249,804 134,175 365,951 342,225 87,240 158,627 138,423 268,350 90,970 236,335 55,431 246,696 571,514 253,327 181,214 88,483 299,848 205,045 615,134 154,794 358,595 221,311 216,753 219,861 266,382 305,754 107,755 379,421 1,108,111 315,700 292,492 272,909 185,774 $19,837,211

Community College Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC TOTAL

54

B11.

Instructional Resources

Purpose: The Instructional Resources allotment provides funds for library books, book-like materials, magazines and periodicals, audio visual materials, and other non-equipment learning resources of a durable nature. Allocation Method: A total of $2,500,000 is allocated in FY 2010-11 through the Instructional Resources allotment. A college's instructional resources allocation is determined by the sum of the following components: Base Allocation: Each college receives a base of $25,000. Weighted FTE Allocation: The remaining balance of the Instructional Resources allotment is allocated among colleges based on each college's weighted library fulltime equivalent (L/FTE). Colleges also receive $4.83 per weighted L/FTE above 1,000 L/FTE. A college's L/FTE is calculated by applying the following ratios to the actual FTE for the preceding year, and adding the products to obtain a sum for each college: CATEGORY WEIGHT a) College Transfer and General Education FTE........2.0 b) Technical and Vocational Education FTE.............1.0 c) Basic Skills and Occupational Extension FTE......0.25 Fiscal Management: These funds will be budgeted and expended through the following codes: Purpose codes: 930 Vocational code: 97

55

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM Instructional Resources Allotment FY 2010-11 FTE FTE FTE CT & GE TE & VOC REG.EXT CERTIF(A10) TRANSIT BS & OCC 1,506 2,682 778 1,312 4,340 1,074 571 1,046 425 724 791 281 630 1,291 694 554 743 588 1,637 2,314 1,001 3,797 3,773 1,254 425 1,094 480 1,740 2,681 929 611 3,583 1,714 6,953 7,040 2,207 968 2,396 535 2,214 1,732 919 1,054 1,121 479 1,161 1,560 603 833 2,562 1,183 1,712 2,004 1,194 872 1,735 500 3,281 5,345 3,274 1,593 5,566 1,633 2,163 3,409 849 4,655 6,339 1,921 463 1,040 356 397 1,440 302 449 1,891 454 273 934 335 1,484 2,213 875 850 2,010 1,308 98 572 358 162 992 723 344 952 330 890 1,752 593 108 632 285 811 1,521 531 45 398 181 472 1,796 524 2,602 3,613 940 624 1,645 763 482 1,046 780 166 551 327 809 1,543 1,599 615 1,359 463 1,317 4,404 1,296 429 875 657 780 2,648 690 602 1,271 862 833 1,194 747 637 1,321 709 525 1,911 604 673 2,112 745 344 704 236 489 2,731 1,057 5,271 6,251 2,844 1,058 1,930 901 1,076 1,759 859 884 1,624 852 467 1,196 561 68,495 124,978 50,162 Total FTE 2.0 1.0 0.25 Weighted Above CT&GE TE&VOC BS&OCC FTE 1,000 3,012 2,682 195 5,889 4,889 2,624 4,340 269 7,233 6,233 1,142 1,046 106 2,294 1,294 1,448 791 70 2,309 1,309 1,260 1,291 174 2,725 1,725 1,108 743 147 1,998 998 3,274 2,314 250 5,838 4,838 7,594 3,773 314 11,681 10,681 850 1,094 120 2,064 1,064 3,480 2,681 232 6,393 5,393 1,222 3,583 429 5,234 4,234 13,906 7,040 552 21,498 20,498 1,936 2,396 134 4,466 3,466 4,428 1,732 230 6,390 5,390 2,108 1,121 120 3,349 2,349 2,322 1,560 151 4,033 3,033 1,666 2,562 296 4,524 3,524 3,424 2,004 299 5,727 4,727 1,744 1,735 125 3,604 2,604 6,562 5,345 819 12,726 11,726 3,186 5,566 408 9,160 8,160 4,326 3,409 212 7,947 6,947 9,310 6,339 480 16,129 15,129 926 1,040 89 2,055 1,055 794 1,440 76 2,310 1,310 898 1,891 114 2,903 1,903 546 934 84 1,564 564 2,968 2,213 219 5,400 4,400 1,700 2,010 327 4,037 3,037 196 572 90 858 324 992 181 1,497 497 688 952 83 1,723 723 1,780 1,752 148 3,680 2,680 216 632 71 919 1,622 1,521 133 3,276 2,276 90 398 45 533 944 1,796 131 2,871 1,871 5,204 3,613 235 9,052 8,052 1,248 1,645 191 3,084 2,084 964 1,046 195 2,205 1,205 332 551 82 965 1,618 1,543 400 3,561 2,561 1,230 1,359 116 2,705 1,705 2,634 4,404 324 7,362 6,362 858 875 164 1,897 897 1,560 2,648 173 4,381 3,381 1,204 1,271 216 2,691 1,691 1,666 1,194 187 3,047 2,047 1,274 1,321 177 2,772 1,772 1,050 1,911 151 3,112 2,112 1,346 2,112 186 3,644 2,644 688 704 59 1,451 451 978 2,731 264 3,973 2,973 10,542 6,251 711 17,504 16,504 2,116 1,930 225 4,271 3,271 2,152 1,759 215 4,126 3,126 1,768 1,624 213 3,605 2,605 934 1,196 140 2,270 1,270 136,990 124,978 12,541 274,509 217,234 $25,000 Base Allocation $25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 $1,450,000 $4.83 Allocation per FTE $23,629 30,125 6,256 6,328 8,335 4,824 23,386 51,624 5,143 26,068 20,463 99,076 16,752 26,051 11,353 14,659 17,032 22,846 12,586 56,675 39,443 33,580 73,127 5,099 6,329 9,196 2,725 21,266 14,679 2,401 3,492 12,955 11,000 9,043 38,919 10,072 5,824 12,377 8,240 30,751 4,337 16,340 8,171 9,893 8,566 10,208 12,781 2,180 14,371 79,772 15,812 15,108 12,591 6,141 $1,050,000

Colleges Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC Total

Formula Allocation $48,629 55,125 31,256 31,328 33,335 29,824 48,386 76,624 30,143 51,068 45,463 124,076 41,752 51,051 36,353 39,659 42,032 47,846 37,586 81,675 64,443 58,580 98,127 30,099 31,329 34,196 27,725 46,266 39,679 25,000 27,401 28,492 37,955 25,000 36,000 25,000 34,043 63,919 35,072 30,824 25,000 37,377 33,240 55,751 29,337 41,340 33,171 34,893 33,566 35,208 37,781 27,180 39,371 104,772 40,812 40,108 37,591 31,141 $2,500,000

56

C.

Specific Program Categorical Allocations S.L. 2009-451, as amended by S.L. 2010-31, appropriates funds to specific programs at certain colleges. The following funds will be allocated upon receipt of a detailed budget plan for FY 2010-11. These detailed budget plans must be received by the Division of Business and Finance no later than September 30, 2010: C1. Biotechnology Training Center at the NC Research Campus­ $3,364,662: Provides funds to Rowan-Cabarrus Community College to support lease expenses, faculty and staff, building operations, and equipment at the Biotechnology Training Center at the NC Research Campus in Kannapolis. These funds will be budgeted and expended through the following codes: Purpose codes: current ­ 371; capital outlay ­ 940 (New) Vocational code: current ­ 80, capital outlay ­ 59

C2.

Botanical Lab ­ $264,000: Provides funds to Fayetteville Technical Community College to support the operation of the Botanical Lab. These funds will be budgeted and expended through the following codes: Purpose codes: current - consistent with the approved detail budget plan; capital outlay ­ 940 (New) Vocational code: current ­ 47, capital outlay ­ 48

C3.

Center for Applied Textile Technology ­ $912,509: Provides funds to Gaston College to support the operations of the Center. Per G.S. 115D-67.1, the purpose of this Center is to develop a world-class workforce for the textile industry in North Carolina; support the textile industry by identifying problems confronting the industry and assisting the industry in solving them; garner support from the textile industry for the work of the Center; and serve as a statewide center of excellence that serves all components of the textile industry. These funds will be budgeted and expended through the following codes: Purpose codes: current - consistent with the approved detail budget plan; capital outlay ­ 940 (New) Vocational code: current ­ 67, capital outlay ­ 68

C4.

Manufacturing Solutions Center ­ $572,116: Provides funds to Catawba Valley Community College to support the operations of the Center, which assists manufacturing companies adapt to the 21st century economy.

57

Section 8.8 of S.L. 2010-31 clarifies that all fees collected by the Manufacturing Solutions Center for testing products are retained by the Center and used for Center operations. Purchases made by the Center using these funds are not subject to the provisions of Article 3 of Chapter 143 of the General Statutes. These funds will be budgeted and expended through the following codes: Purpose codes: current ­ 310, 422; capital outlay ­ 940 (New) Vocational code: current ­ 87; capital outlay ­ 89

C5.

Haywood Regional High Tech Center ­ $582,383: Provides funds to Haywood Community College to support the operations of the Center, which serves the needs of Western North Carolina by providing high technology training and by promoting the growth of regional industry. These funds will be budgeted and expended through the following codes: Purpose codes: current ­ 220, 230, 421; capital outlay ­ 930, 940 (New) Vocational code: current ­ 77; capital outlay ­ 78

C6.

Hickory Metro Higher Education Center - $264,833: Provides funds to Catawba Valley Community College to support the Center, which is a collaborative partnership of colleges and universities in western North Carolina. HMHEC's mission is to support and enhance the educational attainment and economic development of the region by offering a broad range of programming in targeted areas of study. These funds will be budgeted and expended through the following codes: Purpose codes: current - consistent with the approved detail budget plan; capital outlay ­ 940 (New) Vocational code: current ­ 37, capital outlay ­ 39

C7.

NC Military Business Center ­ $1,250,000: Provides funds to Fayetteville Technical Community College to support the NC Military Business Center. The purpose of the Center is to serve as a coordinator and facilitator for small- and medium-sized businesses throughout the State seeking to win and complete federal contracts, with a focus on military-related contracts. Section 8.16 of S.L. 2009-451 outlines the activities of the Center. These funds will be budgeted and expended through the following codes: Purpose codes: current ­ 370, capital outlay ­ 940 (New) Vocational code: current ­ 80, capital outlay ­ 40

58

D.

Allocation of Management Flexibility Reduction For FY 2010-11 the General Assembly has enacted a $29 million management flexibility reduction to the State Aid budget.9 Section 2.3.(b) of S.L 2010-31 also authorizes the Director of the Budget to implement additional management flexibility cuts to ensure the State budget remains in balance if certain federal funds are not appropriated by Congress.10 The Office of State Budget and Management is implementing this language immediately. Consequently, colleges must identify an additional $10 million in management flexibility cuts. A management flexibility reduction is a budget cut that the General Assembly has not specifically prescribed how will be implemented; management has the flexibility to determine what budget line items to cut within certain parameters. This type of cut is also referred to as a negative reserve. Allocation of Management Flexibility Reduction: Section 8.24 of S.L. 2009-451, as amended by Section 8.7 of S.L. 2010-31, directs the State Board of Community Colleges to allocate the reduction "in a manner that accounts for the unique needs of each college and provides for the equitable distribution of funds to the institutions consistent with G.S. 115D5(a)." Consistent with this language, the management flexibility reduction will be allocated pro-rata based on each college's estimated General Fund appropriation (excluding Customized Training funds). A college's estimated General Fund appropriation is defined as: = Total college formula and categorical budget allocations11 Federal Carl D. Perkins Vocational Education funds Federal Tech Prep funds Federal literacy funds Estimated curriculum tuition and con ed registration fee receipts12 College's estimated General Fund appropriation.

This number is then reduced by each college's Customized Training allocation. This adjustment is being made so that colleges that host regional trainers are not unfairly impacted by the management flexibility cut. Local Implementation of the Management Flexibility Reduction: Section 8.24 of S.L. 2009-451, as amended by Section 8.7 of S.L. 2010-31, further provides that each college shall have the flexibility to adjust its budget to implement this reduction within the following parameters:

Joint Conference Committee Report on the Continuation, Expansion and Capital Budgets dated June 28, 2010, page F7, Item #34. 10 Section 2.3.(b) of S.L. 2010-31 authorizes the Director of the Budget to implement a management flexibility cut of up to $177.5 million across State government. The legislation does not provide any additional detail about how such cuts must be allocated among agencies and/or programs. 11 Total formula and categorical budget allocations provided in Section III, Parts A-C and as summarized in Section III, Part E of the document previously approved on August 3, 2010. 12 See Section V, Part D of this document for additional details on how estimated receipts are calculated.

9

59

Revised as Amended by State Board ­ Sept. 16, 2010

Before taking reductions to instructional budgets, community colleges must consider reducing budgets for senior and middle management personnel and for programs that have both low-enrollment and low-postgraduate success. Before taking reductions to instructional budgets, community colleges must also review their institutional funds to determine whether there are monies available in those funds that can be used to assist with operating costs. Colleges must minimize the impact on student support services and on the retraining of dislocated workers. Colleges may not reduce funding for the Small Business Centers.

Additionally colleges may not use equipment or Customized Training funds as part of their management flexibility cut. Fiscal Management: Colleges will identify their management flexibility reductions and submit a Form 104 accordingly as part of the DCC 2-1 process. Note that while the management flexibility reduction is being implemented like a reversion, it is separate and distinct from any potential reversions that may be required. If the Governor requires reversions in FY 2010-11, colleges will have to identify and revert additional funds above and beyond this management flexibility reduction.

60

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM MANAGEMENT FLEXIBILITY REDUCTIONS FY 2010-11

Community College Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC and TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of the Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC TOTAL

1

Total Allocations $27,773,531 37,347,374 12,843,088 11,054,326 15,289,339 11,565,974 28,194,918 48,485,390 12,211,361 30,451,071 34,509,690 88,780,690 22,189,760 26,952,760 16,130,998 19,576,142 26,693,918 27,285,306 18,991,097 64,828,831 47,955,517 36,753,183 70,277,848 11,574,457 13,461,724 16,401,704 9,812,109 25,531,086 23,277,999 7,222,084 11,616,188 10,350,341 18,612,797 7,140,928 16,681,589 5,113,762 16,824,202 39,108,307 17,547,653 14,251,988 7,246,427 22,765,172 14,458,846 42,070,249 12,167,938 24,141,862 16,692,676 16,304,707 15,680,643 17,850,937 20,151,529 8,461,083 25,369,951 77,736,917 22,170,789 21,236,597 19,797,593 13,828,191 $1,398,803,137

<Less> Estimated Receipts $7,237,570 9,024,830 2,291,927 2,446,113 3,219,551 1,808,973 6,266,139 13,698,810 2,395,854 6,565,155 6,350,564 25,041,135 4,696,293 8,319,496 3,489,058 4,757,463 4,572,118 6,735,016 4,238,491 16,345,087 13,463,489 8,452,588 20,160,636 2,114,118 2,521,312 3,111,085 1,716,255 5,310,302 4,253,852 1,002,110 1,320,462 1,941,240 3,986,547 1,117,484 3,548,712 503,421 2,781,494 11,224,982 3,787,372 2,442,106 1,047,571 3,355,654 3,259,460 9,084,707 1,799,828 5,027,825 2,744,189 2,934,376 3,232,303 4,011,237 4,182,738 1,642,751 4,681,413 18,791,473 4,756,301 4,066,678 4,212,496 3,247,515 $316,337,725

<Less> Federal Basic Skills $289,371 299,325 171,347 68,255 101,671 184,145 316,388 333,452 88,162 300,036 707,430 975,471 156,417 157,839 185,567 133,665 449,343 317,099 192,677 843,939 457,163 295,770 788,482 81,763 50,480 129,399 78,208 228,226 323,498 135,798 240,313 103,093 148,596 62,567 125,133 61,856 126,555 294,348 241,024 359,047 74,653 720,939 98,827 278,706 258,799 270,174 236,758 226,093 140,064 160,683 163,527 37,682 304,302 923,570 258,088 337,007 202,631 162,815 $15,458,236

<Less> Vocational Education $211,463 140,781 100,669 109,821 69,125 53,937 203,675 210,684 98,138 174,466 245,928 810,609 180,893 123,256 74,966 129,682 205,037 177,777 190,044 640,620 445,513 206,790 549,687 117,609 114,884 136,497 74,966 88,985 180,309 60,557 0 74,577 118,388 52,184 130,460 0 116,051 271,436 94,828 134,940 68,346 199,391 112,937 427,600 81,587 250,601 114,884 130,850 89,181 162,005 156,163 61,336 269,878 309,016 179,919 175,830 133,966 131,233 $10,174,955

<Less> Tech Prep $29,569 40,000 52,666 19,000 0 22,844 26,000 0 21,333 0 35,333 0 0 29,844 41,860 18,489 0 42,333 0 44,666 66,795 23,666 56,333 0 18,487 19,400 0 30,111 19,500 0 0 0 0 0 0 0 13,645 23,313 0 23,666 19,000 30,666 0 33,000 26,000 0 23,666 0 0 0 0 0 0 0 28,333 23,666 0 0 $903,184

<Less> Customized Training $60,000 237,698 167,268 50,000 140,682 47,500 50,000 60,000 47,500 60,000 60,000 60,000 158,860 47,500 47,500 50,000 60,000 60,000 204,836 60,000 60,000 60,000 60,000 47,500 47,500 47,500 50,000 50,000 47,500 47,500 47,500 50,000 60,000 47,500 60,000 0 47,500 50,000 60,000 50,000 47,500 50,000 50,000 60,000 47,500 158,860 60,000 47,500 47,500 47,500 50,000 47,500 60,000 60,000 50,000 50,000 50,000 50,000 $3,753,204

Est. 1 General Fund Appropriation $19,945,558 27,604,740 10,059,211 8,361,137 11,758,310 9,448,575 21,332,716 34,182,444 9,560,374 23,351,414 27,110,435 61,893,475 16,997,297 18,274,825 12,292,047 14,486,843 21,407,420 19,953,081 14,165,049 46,894,519 33,462,557 27,714,369 48,662,710 9,213,467 10,709,061 12,957,823 7,892,680 19,823,462 18,453,340 5,976,119 10,007,913 8,181,431 14,299,266 5,861,193 12,817,284 4,548,485 13,738,957 27,244,228 13,364,429 11,242,229 5,989,357 18,408,522 10,937,622 32,186,236 9,954,224 18,434,402 13,513,179 12,965,888 12,171,595 13,469,512 15,599,101 6,671,814 20,054,358 57,652,858 16,898,148 16,583,416 15,198,500 10,236,628 $1,052,175,833

Pro-Rata Calculation ($739,303) (1,023,199) (372,855) (309,914) (435,834) (350,221) (790,719) (1,267,008) (354,365) (865,545) (1,004,877) (2,294,147) (630,023) (677,376) (455,618) (536,970) (793,488) (739,582) (525,042) (1,738,194) (1,240,325) (1,027,262) (1,803,734) (341,507) (396,943) (480,295) (292,550) (734,777) (683,992) (221,511) (370,954) (303,253) (530,017) (217,251) (475,086) (168,594) (509,249) (1,009,836) (495,367) (416,705) (222,002) (682,331) (405,414) (1,193,017) (368,964) (683,290) (500,880) (480,594) (451,153) (499,262) (578,197) (247,298) (743,336) (2,136,964) (626,348) (614,682) (563,348) (379,432) ($39,000,000)

Estimated General Fund Apppropriation excluding Customized Training

61

E. Summary of College Allocations

NORTH COMMUNITY COLLEGE SYSTEM BUDGET ALLOCATIONS FOR 2-1 SUMMARY FY 2010-11 CFDA 84.048A Vocational CFDA 84.243A Education Tech Allotment 100% Prep $211,463 $29,569 140,781 40,000 100,669 52,666 109,821 19,000 69,125 0 53,937 22,844 203,675 26,000 210,684 0 98,138 21,333 174,466 0 245,928 35,333 810,609 0 180,893 0 123,256 29,844 74,966 41,860 129,682 18,489 205,037 0 177,777 42,333 190,044 0 640,620 44,666 445,513 66,795 206,790 23,666 549,687 56,333 117,609 0 114,884 18,487 136,497 19,400 74,966 0 88,985 30,111 180,309 19,500 60,557 0 0 0 74,577 0 118,388 0 52,184 0 130,460 0 0 0 116,051 13,645 271,436 23,313 94,828 0 134,940 23,666 68,346 19,000 199,391 30,666 Customized Small Training Business Business and Center Industry Support $99,510 $60,000 111,573 60,000 99,358 47,500 92,530 50,000 109,221 50,000 98,220 47,500 97,917 50,000 105,124 60,000 104,441 47,500 105,276 60,000 109,221 60,000 105,959 60,000 97,461 50,000 106,945 47,500 107,097 47,500 103,303 50,000 98,524 60,000 101,710 60,000 102,469 47,500 106,869 60,000 110,283 60,000 105,883 60,000 109,904 60,000 102,469 47,500 99,510 47,500 97,082 47,500 102,165 50,000 100,420 50,000 101,103 47,500 96,172 47,500 101,179 47,500 93,972 50,000 100,648 60,000 98,675 47,500 97,689 60,000 93,061 * 98,827 47,500 104,517 50,000 107,173 60,000 99,434 50,000 92,530 47,500 102,165 50,000

Community Colleges Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC

Total FTE 4,966 6,777 2,060 1,796 2,615 1,885 4,959 8,824 2,002 5,350 5,908 16,200 3,899 4,902 2,678 3,324 4,578 4,919 3,121 11,900 8,792 6,421 12,915 1,859 2,139 2,794 1,542 4,572 4,168 1,028 1,877 1,626 3,235 1,025 2,867 624 2,792 7,155 3,032 2,319 1,044 3,951

Current Operating $25,886,048 34,419,240 11,621,789 10,202,937 14,116,141 10,769,077 25,781,156 44,397,612 11,197,575 27,680,604 30,730,815 80,979,511 20,535,870 25,340,756 14,652,706 17,668,797 24,098,466 25,387,830 16,818,020 58,719,875 44,173,329 32,960,375 64,721,648 10,536,394 11,847,042 15,125,236 8,989,842 23,762,745 21,669,051 6,584,780 10,784,923 9,438,090 17,297,218 6,476,299 15,450,334 4,697,894 15,077,306 36,399,451 16,384,037 13,098,498 6,570,150 21,338,910

Multi Campus

577,120 577,120

1,061,901 2,839,431

413,663 484,781 577,120 530,951 530,951 530,951 1,108,071

530,951

Health Sciences $267,398 689,946 216,137 76,390 133,789 95,699 276,365 434,846 190,960 298,402 721,293 519,708 144,771 252,105 146,523 252,501 505,642 401,381 353,898 617,431 861,949 360,637 718,426 191,227 100,889 123,381 112,107 375,601 226,330 63,067 117,705 168,981 202,131 102,929 162,831 34,430 100,506 589,703 99,045 242,819 77,732 131,630

Technical Education $108,781 127,754 60,462 42,247 58,691 3,542 109,540 280,047 7,083 127,754 173,543 406,789 126,995 56,414 37,947 100,179 87,277 72,352 41,488 152,799 214,779 203,142 371,372 69,822 51,608 110,551 26,563 105,998 67,292 31,622 50,849 60,462 52,114 12,143 76,146 26,310 104,227 153,811 57,426 44,018 27,322 74,123

State Child Care $34,681 39,813 25,668 25,311 26,734 24,547 33,850 46,536 25,325 35,498 34,702 69,052 31,792 33,833 27,624 29,538 31,901 33,026 29,139 50,238 45,096 39,533 58,539 25,269 26,440 28,203 24,231 32,960 30,026 22,349 24,045 24,543 29,261 22,594 28,175 21,553 27,950 41,787 27,954 25,356 22,513 28,245

62

Revised as Amended by State Board ­ Sept. 16, 2010

E. Summary of College Allocations

NORTH COMMUNITY COLLEGE SYSTEM BUDGET ALLOCATIONS FOR 2-1 SUMMARY FY 2010-11 CFDA 84.048A Customized Vocational CFDA 84.243A State Small Training Education Tech Child Business Business and Allotment 100% Prep Care Center Industry Support 112,937 0 26,920 99,206 50,000 427,600 33,000 40,055 103,531 60,000 81,587 26,000 24,571 95,868 47,500 250,601 0 32,017 100,269 50,000 114,884 23,666 26,566 97,234 60,000 130,850 0 27,106 102,924 47,500 89,181 0 26,864 97,234 47,500 162,005 0 28,539 95,110 47,500 156,163 0 29,763 95,565 50,000 61,336 0 23,674 100,420 47,500 269,878 0 31,288 101,331 60,000 309,016 0 60,390 111,270 60,000 179,919 28,333 30,474 103,152 50,000 175,830 23,666 29,938 100,724 50,000 133,966 0 28,792 96,779 50,000 131,233 0 25,828 104,821 50,000 $10,174,955 $903,184 $1,838,215 $5,883,027 $2,990,000

Community Colleges Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC TOTAL

Total Current Multi Health Technical FTE Operating Campus Sciences Education 2,437 13,362,045 156,860 48,572 7,017 35,431,549 577,120 205,457 220,597 1,969 11,271,870 124,002 23,021 4,118 21,741,991 818,441 68,557 2,735 14,916,997 577,120 214,211 21,756 2,774 15,110,517 218,157 43,765 2,667 14,484,025 257,141 38,453 3,040 16,398,885 297,091 68,051 3,532 18,670,224 227,741 70,834 1,297 7,748,912 76,134 36,429 4,277 22,405,777 1,015,732 351,779 102,203 14,366 71,315,787 1,639,021 1,237,585 261,832 3,897 20,560,080 271,527 79,435 3,694 19,756,774 227,015 71,340 3,360 17,862,158 484,781 256,947 118,900 2,234 12,422,451 142,971 52,871 243,854 $1,277,848,419 $14,056,785 $16,842,300 $5,500,000

63

Revised as Amended by State Board ­ Sept. 16, 2010

E. Summary of College Allocations

NORTH COMMUNITY COLLEGE SYSTEM BUDGET ALLOCATIONS FOR 2-1 SUMMARY FY 2010-11 Customized Training Regional Capacity 177,698 119,768 90,682

Community Colleges Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC

Special High Cost Allotment

669,805

108,860

157,336

Equipment $867,297 1,216,566 412,443 362,491 509,604 373,657 839,284 1,372,298 420,474 911,372 1,064,753 2,417,169 731,937 780,714 481,396 598,733 826,356 814,211 585,608 1,891,207 1,554,866 1,084,145 2,025,587 395,792 461,807 572,288 353,676 791,879 747,021 264,938 399,906 361,707 607,352 271,990 546,822 204,801 566,411 1,180,523 578,948 442,610 267,289 666,902

Equipment Reserve $405,841 590,578 165,258 138,838 216,649 144,743 391,025 672,948 169,506 429,153 510,280 1,225,605 334,247 360,045 201,729 263,792 384,187 377,763 256,850 947,412 769,513 520,538 1,018,488 156,451 191,368 249,804 134,175 365,951 342,225 87,240 158,627 138,423 268,350 90,970 236,335 55,431 246,696 571,514 253,327 181,214 88,483 299,848

Instructional Resources $48,629 55,125 31,256 31,328 33,335 29,824 48,386 76,624 30,143 51,068 45,463 124,076 41,752 51,051 36,353 39,659 42,032 47,846 37,586 81,675 64,443 58,580 98,127 30,099 31,329 34,196 27,725 46,266 39,679 25,000 27,401 28,492 37,955 25,000 36,000 25,000 34,043 63,919 35,072 30,824 25,000 37,377

Program Specific Categoricals

836,949

1,514,000 912,509

582,383

Total Allotments $28,019,217 37,669,074 12,952,974 11,150,893 15,413,971 11,663,590 28,434,318 48,903,644 12,312,478 30,710,542 34,793,232 89,557,909 22,384,578 27,182,463 16,269,364 19,739,454 26,916,542 27,516,229 19,150,889 65,357,743 48,366,566 37,066,749 70,896,182 11,672,632 13,573,247 16,544,138 9,895,450 25,750,916 23,470,036 7,283,225 11,712,135 10,439,247 18,773,417 7,200,284 16,824,792 5,158,480 16,964,113 39,449,974 17,697,810 14,373,379 7,305,865 22,959,257

Management Flexibility Reduction ($739,303) (1,023,199) (372,855) (309,914) (435,834) (350,221) (790,719) (1,267,008) (354,365) (865,545) (1,004,877) (2,294,147) (630,023) (677,376) (455,618) (536,970) (793,488) (739,582) (525,042) (1,738,194) (1,240,325) (1,027,262) (1,803,734) (341,507) (396,943) (480,295) (292,550) (734,777) (683,992) (221,511) (370,954) (303,253) (530,017) (217,251) (475,086) (168,594) (509,249) (1,009,836) (495,367) (416,705) (222,002) (682,331)

Net Allotment $27,279,914 36,645,875 12,580,119 10,840,979 14,978,137 11,313,369 27,643,599 47,636,636 11,958,113 29,844,997 33,788,355 87,263,762 21,754,555 26,505,087 15,813,746 19,202,484 26,123,054 26,776,647 18,625,847 63,619,549 47,126,241 36,039,487 69,092,448 11,331,125 13,176,304 16,063,843 9,602,900 25,016,139 22,786,044 7,061,714 11,341,181 10,135,994 18,243,400 6,983,033 16,349,706 4,989,886 16,454,864 38,440,138 17,202,443 13,956,674 7,083,863 22,276,926

64

Revised as Amended by State Board ­ Sept. 16, 2010

E. Summary of College Allocations

NORTH COMMUNITY COLLEGE SYSTEM BUDGET ALLOCATIONS FOR 2-1 SUMMARY FY 2010-11 Customized Training Regional Capacity

Community Colleges Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC TOTAL

Special High Cost Allotment

108,860

$763,204

328,336 $998,141

Equipment 487,664 1,262,992 392,658 777,971 518,419 509,799 515,676 603,630 678,068 303,724 817,345 2,195,031 696,873 652,994 615,971 466,087 $43,319,732

Equipment Reserve 205,045 615,134 154,794 358,595 221,311 216,753 219,861 266,382 305,754 107,755 379,421 1,108,111 315,700 292,492 272,909 185,774 $19,837,211

Instructional Resources 33,240 55,751 29,337 41,340 33,171 34,893 33,566 35,208 37,781 27,180 39,371 104,772 40,812 40,108 37,591 31,141 $2,500,000

Program Specific Categoricals

Total Allotments 14,582,489 3,364,662 42,397,448 12,271,208 24,348,642 16,825,335 16,442,264 15,809,501 18,002,401 20,321,893 8,533,064 25,574,125 78,402,815 22,356,305 21,420,881 19,958,794 13,941,513 $7,210,503 $1,410,665,676

Management Flexibility Reduction (405,414) (1,193,017) (368,964) (683,290) (500,880) (480,594) (451,153) (499,262) (578,197) (247,298) (743,336) (2,136,964) (626,348) (614,682) (563,348) (379,432) ($39,000,000)

Net Allotment 14,177,075 41,204,431 11,902,244 23,665,352 16,324,455 15,961,670 15,358,348 17,503,139 19,743,696 8,285,766 24,830,789 76,265,851 21,729,957 20,806,199 19,395,446 13,562,081 $1,371,665,676

65

Revised as Amended by State Board ­ Sept. 16, 2010

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66

IV.

A.

Use of State Funds and Budget Flexibility

Use of State Funds Per G.S. 143C-6-1, all appropriations of State funds "authorize expenditures only for the (i) purposes or programs and (ii) objects or line items enumerated in the Recommended State Budget and the Budget Support Document recommended to the General Assembly by the Governor, as amended and enacted by the General Assembly in the Current Operations Appropriations Act, the Capital Improvements Appropriations Act, or any other act affecting the State budget." Per G.S. 115D-31(b1) as amended by Section 8.2 of S.L. 2010-31, community colleges may "use all State funds allocated to it, except for Literacy (Basic Skills) and Customized Training funds, for any authorized purpose that is consistent with the college's Institutional Effectiveness Plan. Each local community college shall include in its Institutional Effectiveness Plan a section on how funding flexibility allows the college to meet the demands of the local community and to maintain a presence in all previously funded categorical programs." College must exercise this flexibility consistent with S.L. 2009-451 as amended by S.L. 2010-31, the North Carolina Administrative Code, and the Accounting Procedures Manual.

B.

Cash Management G.S. 147-86.10. Statement of policy. It is the policy of the State of North Carolina that all agencies, institutions, departments, bureaus, boards, commissions, and officers of the State, whether or not subject to the State Budget Act, Chapter 143C of the General Statutes, shall devise techniques and procedures for the receipt, deposit, and disbursement of moneys coming into their control and custody which are designed to maximize interest-bearing investment of cash, and to minimize idle and nonproductive cash balances. This policy shall apply to the General Court of Justice as defined in Article IV of the North Carolina Constitution, the public school administrative units, and the community colleges with respect to the receipt, deposit, and disbursement of moneys required by law to be deposited with the State Treasurer and with respect to moneys made available to them for expenditure by warrants drawn on the State Treasurer. This policy shall include the acceptance of electronic payments in accordance with G.S. 147-86.22 to the maximum extent possible consistent with sound business practices. (1985, c. 709, s. 1; 1999-434, s. 2; 2006-203, s. 120.) G.S.147-86.13. Cash management for community colleges. All community colleges and their officers and employees are subject to the provisions of G.S. 147-86.11 with respect to moneys required by law to be deposited with the State Treasurer and with respect to moneys made available to them for expenditure by warrants drawn on the State Treasurer. (1985, c. 709, s. 1; 1987, c. 564, s. 9.)

67

C.

Instructional Salary Transfer Limitations Per Section 8.1 of S.L. 2009-451, it is the intent of the General Assembly to encourage community colleges to make faculty salaries a priority and to reward colleges that have taken steps to achieve the national average community college faculty salary. Consequently, the General Assembly has directed the State Board to adopt guidelines to limit and monitor the transfer of funds from instructional salary accounts. The purpose of these limitations is to ensure that funds appropriated for faculty salaries are used only to move faculty and professional staff to their respective national averages. The following transfer limitations shall be implemented using the following definitions:

Average faculty salary at a community college: The average nine-month salary from all sources of all nine-month, full-time, curriculum faculty at the college, as determined by the North Carolina Community College System Office on October 1 of each year. It does not mean the twelve month salary, from multiple contracts, reported for nine months. National average community college faculty salary: The nine-month, full-time, curriculum salary average, as published by the Integrated Post-secondary Education Data System (IPEDS), for the most recent year for which data are available. For FY 2009-10, the 2009-10 IPEDS national average salary used as the benchmark is $61,167.

The State Board of Community Colleges, consistent with legislative intent, establishes the following levels of the transfer of funds from instructional accounts, including curriculum and continuing education, for FY 2010-11:

A Community College's Curriculum Average Salary as a Percentage of the National Average Community College Faculty Salary Equal to or greater 100% At least 95%, but less than 100% At least 90%, but less than 95% At least 85%, but less than 90% Less than 85% Maximum Amount a Community College May Transfer of Appropriated Instructional Salaries 8% 6% 5% 3% 2%

For a community college with an average faculty salary less than eighty-five percent (85%) of the national average salary of community college faculty, the State Board will consider a request to exceed the maximum above by one percentage point (1%), but only if the additional funds transferred support purposes that directly affect student services. "Student Services" purposes are those defined within the State Board's Chart of Accounts under Purpose Code 510.

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Community College Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC Averages

NC COMMUNITY COLLEGE SYSTEM BUDGET TRANSFER FLEXIBILITY PERCENTAGES FY 2010-11 Average Salary National Average Salary as Per 2009-10 Staff Average Salary a % of National Report per IPEDS Average $48,587 79.4% $61,167 47,624 77.9% 61,167 45,745 74.8% 61,167 46,350 75.8% 61,167 45,809 74.9% 61,167 43,858 71.7% 61,167 44,597 72.9% 61,167 48,459 79.2% 61,167 45,594 74.5% 61,167 53,315 87.2% 61,167 42,403 69.3% 61,167 52,364 85.6% 61,167 45,164 73.8% 61,167 44,170 72.2% 61,167 43,130 70.5% 61,167 48,827 79.8% 61,167 47,193 77.2% 61,167 51,130 83.6% 61,167 45,734 74.8% 61,167 47,701 78.0% 61,167 43,620 71.3% 61,167 50,311 82.3% 61,167 51,775 84.6% 61,167 44,436 72.6% 61,167 48,111 78.7% 61,167 45,395 74.2% 61,167 44,801 73.2% 61,167 50,553 82.6% 61,167 44,673 73.0% 61,167 44,869 73.4% 61,167 42,890 70.1% 61,167 45,980 75.2% 61,167 48,598 79.5% 61,167 43,191 70.6% 61,167 46,297 75.7% 61,167 42,696 69.8% 61,167 45,900 75.0% 61,167 47,476 77.6% 61,167 45,259 74.0% 61,167 54,769 89.5% 61,167 50,832 83.1% 61,167 48,119 78.7% 61,167 46,652 76.3% 61,167 49,693 81.2% 61,167 45,620 74.6% 61,167 51,603 84.4% 61,167 44,720 73.1% 61,167 54,116 88.5% 61,167 47,663 77.9% 61,167 45,494 74.4% 61,167 47,032 76.9% 61,167 45,665 74.7% 61,167 45,469 74.3% 61,167 45,577 74.5% 61,167 45,100 73.7% 61,167 50,811 83.1% 61,167 47,038 76.9% 61,167 48,150 78.7% 61,167 $47,542 77.7% $61,167

Budget Flexibility Transfer Percentage 2% 2% 2% 2% 2% 2% 2% 2% 2% 3% 2% 3% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 3% 2% 2% 2% 2% 2% 2% 2% 3% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2%

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D.

Authority to Use Funds for Campus Security G.S. 115D-32(a)(2)(a)(1) places the financial responsibility for "Watchmen" within the current expense portion of the tax-levying authority of each institution. In effect, this statute places the fiscal responsibility for campus security personnel upon the county commissioners. Section 8.17.(a) of S.L. 2009-451, however, authorizes the State Board to revise the college funding formulas to ensure that adequate funds are available for campus security. These funds shall be used to supplement and shall not be used to supplant existing local funding for campus security. Under this authority, the State Board authorizes each college to use up to two percent (2%) of the State funds allocated to it through the enrollment allotment of the Institutional Support formula for FY 2010-11 for campus security. The Institutional Support allotment is the portion of the State Aid allocation formula that provides funding for management, financial services, general administration, information systems, and student support services. These are all non-instructional funds. Using this authority, colleges may: 1. Hire security personnel; 2. Contract for professional security services; 3. Purchase surveillance cameras, call boxes, alert systems, and other equipmentrelated expenditures. A college may both purchase the equipment and have it installed with these funds. These activities are not to be considered "capital improvement projects", but rather the purchase and installation of equipment. The maximum amount of expenditure for these purposes is on the following page. Fiscal Management: Funds within non-instructional purpose codes (1XX, 410, 421, 422, 430, and 510) may be used for allowable uses described above. For capital expenditures, funds must be transferred using a Form 104 from one of these non-instructional purpose codes to Purpose Code 920. Colleges may not use funds allocated through the regular equipment allotment for campus security purposes. Funds expended on campus security under this authority shall be tracked in the following vocational codes: Current: 92 Capital Outlay: 93

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NORTH CAROLINA COMMUNITY COLLEGE SYSTEM CAMPUS SECURITY MAXIMUM FY 2010-11

Community College Alamance CC Asheville-Buncombe TCC Beaufort County CC Bladen CC Blue Ridge CC Brunswick CC Caldwell CC & TI Cape Fear CC Carteret CC Catawba Valley CC Central Carolina CC Central Piedmont CC Cleveland CC Coastal Carolina CC College of The Albemarle Craven CC Davidson County CC Durham TCC Edgecombe CC Fayetteville TCC Forsyth TCC Gaston College Guilford TCC Halifax CC Haywood CC Isothermal CC James Sprunt CC Johnston CC Lenoir CC Martin CC Mayland CC McDowell TCC Mitchell CC Montgomery CC Nash CC Pamlico CC Piedmont CC Pitt CC Randolph CC Richmond CC Roanoke-Chowan CC Robeson CC Rockingham CC Rowan-Cabarrus CC Sampson CC Sandhills CC South Piedmont CC Southeastern CC Southwestern CC Stanly CC Surry CC Tri-County CC Vance-Granville CC Wake TCC Wayne CC Western Piedmont CC Wilkes CC Wilson CC TOTAL

Enrollment Allotment 2010-11 $7,011,208 10,022,901 2,178,530 1,739,498 3,101,495 1,887,505 6,999,567 13,427,062 2,082,076 7,649,800 8,577,754 25,693,350 5,236,787 6,904,776 3,206,264 4,280,562 6,365,964 6,933,047 3,942,973 18,542,450 13,373,846 9,430,873 20,230,395 1,844,267 2,309,907 3,399,172 1,317,096 6,355,986 5,684,134 462,314 1,874,201 1,456,788 4,132,555 457,325 3,520,571 0 3,395,846 10,651,515 3,794,966 2,609,247 488,922 5,323,263 2,805,481 10,422,021 2,027,197 5,600,984 3,301,055 3,365,912 3,187,971 3,808,270 4,626,466 909,661 5,865,401 22,643,408 5,233,461 4,895,872 4,340,430 2,467,892 $333,398,240

Campus Security 2.0% $140,224 200,458 43,571 34,790 62,030 37,750 139,991 268,541 41,642 152,996 171,555 513,867 104,736 138,096 64,125 85,611 127,319 138,661 78,859 370,849 267,477 188,617 404,608 36,885 46,198 67,983 26,342 127,120 113,683 9,246 37,484 29,136 82,651 9,147 70,411 0 67,917 213,030 75,899 52,185 9,778 106,465 56,110 208,440 40,544 112,020 66,021 67,318 63,759 76,165 92,529 18,193 117,308 452,868 104,669 97,917 86,809 49,358 $6,667,961 Revised as Amended by State Board ­ Sept. 16, 2010

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E.

Authority to Use Funds for Maintenance of Plant Section 8.17.(b) of S.L. 2009-451 directs the State Board to adopt rules for the 2009-11 fiscal biennium to grant community colleges the flexibility to transfer funds as necessary to minimize the impact of budget reductions, including the elimination of State funding for maintenance of plant. Through the Policy Committee, the State Board adopted rules that allow community colleges that received State funds in FY 2008-09 for maintenance of plant (MOP) pursuant to G.S. 115D-31.2 to use non-instructional State funds allocated to it through the Institutional Support allotment for maintenance of plant for the 2009-2010 and 2010-2011 fiscal years. Per 23 NCAC 02D .0329, the amount of non-instructional funds used for maintenance of plant in FY 2010-2011 shall not exceed fifty percent (50%) of the amount of maintenance of plant funds received for the 2008-2009 fiscal year. These maximums are outlined in the table below: Maximum Amount of Non-Instructional State Funds that May Be Used for MOP College FY 2010-11 College of The Albemarle $ 89,150 Mayland CC $ 35,220 Roanoke Chowan CC $ 39,630 Southwestern CC $ 85,400 Vance-Granville CC $144,540 Total $393,939 Note that 23 NCAC 02D.0329 is only effective for the 2009-11 biennium.

F.

No State Funds for Intercollegiate Athletics Consistent with Section 8.21 of S.L 2009-451 and 23 NCAC 02C .0110(c), State funds, tuition and registration fee receipts, and financial aid funds shall not be used to create, support, maintain, or operate an intercollegiate athletics program at a community college.

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V.

Tuition and Fees

G.S. 115D-39 authorizes the State Board of Community Colleges to fix and regulate all tuition and fees charged to students for applying to or attending any community college.

A.

Curriculum Tuition Rates At its July meeting, the State Board adopted the following curriculum tuition rates for the 2010-11 Academic Year, as directed by the General Assembly.13

Residents: Students qualifying for in-state tuition shall be charged $56.50 per credit hour up to a maximum per semester of $904, based upon 16 credit hours of instruction. Non-Residents: Out-of-state students shall be charged $248.50 per credit hour up to a maximum per semester of $3,976, based upon 16 credit hours of instruction.

B.

Continuing Education Occupational Extension Registration Fees Registration fees for continuing education occupational extension courses shall be based on the course length. Consistent with action taken by the State Board at its July 17, 2009 meeting, continuing education occupational extension registration fees for courses shall be as follows:

Course Length 0-24 Hours 25-50 Hours 50+ Hours Registration Fee $65 $120 $175

C.

Tuition Waivers S.L. 2010-31 (S897) enacted multiple statutory changes to tuition waivers that are effective July 1, 2010. While many of the changes enacted are simply technical or intended to improve the general readability of the statute, some substantive changes were enacted. Note that these statutory changes overrule any conflicting language found in the Administrative Code. Changes to the Administrative Code needed to ensure consistency with the General Statutes will be pursued at a later date. Consistent with CC10-025, the following is a summary of the substantive changes to the waiver statutes by impacted group as a result of S.L. 2010-31. It does not provide a comprehensive listing of all waivers.

13

Joint Conference Committee Report on the Continuation, Expansion and Capital Budgets dated June 28, 2010, page F7, Item #35. The Finance Committee of the State Board met on July 1, 2010 to adopt these tuition rates. The full State Board ratified these rates at their regular July meeting.

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Law Enforcement Officers Section 8.4.(a) of S.L. 2010-31 amends G.S. 115D-5(b) to clarify that tuition and registration fees for training courses for municipal, county, or State law-enforcement officers may be waived. "Municipal, county, or State law-enforcement officers" is defined as law enforcement officers that are employees of the State of North Carolina, a North Carolina municipality, or a North Carolina county. Section 8.4.(b) of S.L. 2010-31 amends G.S. 115D-39 to provide that "any federal law enforcement officer whose permanent duty station is within North Carolina shall also be eligible for the State resident community college tuition rate for law enforcement training courses." Note that this statutory change negates the full tuition waiver provided by 23 NCAC 2D.0202(7)(c) for Basic Law Enforcement Training (BLET) for officers employed by a federal law enforcement agency. Senior Citizens The General Assembly did not make any change to the senior citizen waiver for curriculum instruction; seniors may continue to have up to six hours of credit instruction waived per semester14. However, it did modify the continuing education waiver. Section 8.4.(a) amends G.S. 115D-5(b) to authorize the waiver of one course of noncredit instruction per academic semester for legal residents of North Carolina age 65 or older. Previously the continuing education waiver was limited to 96 contact hours. Wards of the State and Children of Disabled Firefighters, Law Enforcement Officers, and Rescue Squad Workers Section 9.26 amends the waiver provided by G.S. 115B-2(a) to certain children who are wards of North Carolina and to children of a firefighter, law enforcement officer, or rescue squad worker that is permanently and totally disabled as a direct result of a traumatic injury sustained in the line of duty. To qualify, a child in such circumstances must be at least 17 years old but not yet 24 years old. Previously the age limitation was 23 years old. The other eligibility requirements prescribed by G.S. 115B-2 remain unchanged. Tuition Waiver Reports Section 8.4.(c) requires the Community Colleges System Office to report to the 2011 General Assembly on the number and cost of courses taken by State law enforcement officers and local law enforcement officers. Section 8.4.(d) directs the Fiscal Research Division, in consultation with the Community Colleges System Office, to conduct a comprehensive study of the currently authorized tuition waivers and to report to the 2011 General Assembly on waivers that should be modified or abolished.

14

Section 8.11.(d) of S.L. 2009-451 enacted the original limitations on the senior citizen tuition waiver: six credit hours of credit instruction and 96 contact hours of noncredit instruction per semester.

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D.

Tuition Refunds Colleges must issue tuition refunds consistent with Section 8.6 of S.L. 2010-31. This language is identical with the administrative code language that colleges were operating under through June 30, 2010. Note that Section 8.6 of S.L. 2010-31 negates 23 NCAC 2D.0202(d), which had previously been set to become effective August 1, 2010. Rule making will be pursued at a later date to conform the administrative code to this legislation.

E.

Estimated Receipts For FY 2010-11, the budget for tuition and continuing education registration fees receipts is $316,337,725.

Curriculum Con. Ed. Total

FY 2009-10 Budgeted Receipts Enrollment Growth Tuition Increase15 Est. Over-realized Tuition Receipts16 FY 2010-11 Budgeted Receipts

$220,542,810 36,180,751 30,025,612 10,000,000 $296,749,173

$17,524,229 2,064,323 0 0 $19,588,552

$238,067,039 38,245,074 30,025,612 10,000,000 $316,337,725

The following pages list each college's estimated receipts for FY 2010-11. These estimated receipts are based on each college's pro-rata share of the receipts budget. A college's prorata share is calculated by dividing its 2009-10 net actual receipts (actual receipts deposited less refund of receipts) divided by the total net receipts collected systemwide. The following page shows the prorated percentages used to determine each college's portion of the receipts budget. Budgets for estimated receipts for curriculum have been calculated in total; therefore, each college will have to determine the portion of estimated receipts they anticipate collecting from out-of-state students to record on their 112 report and adjust accordingly. The total budget for estimated receipts must not exceed the amount shown. Estimated receipts must be shown in Column 2, State Budget Estimated Receipts, on college's September DCC2112 report.

15

Joint Conference Committee Report on the Continuation, Expansion and Capital Budgets dated June 28, 2010, page F7, Item #35. 16 Joint Conference Committee Report on the Continuation, Expansion and Capital Budgets dated June 28, 2010, page F7, Item #36.

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NC COMMUNITY COLLEGE SYSTEM STATE BUDGET RECEIPTS FY 2010-11

2009-10 Curriculum Occupational % of Net % of Net Community College Net Receipts Receipts Net Receipts Receipts Alamance CC $5,777,550.34 2.33% $253,137.50 1.7% Asheville-Buncombe TCC 7,073,415.33 2.85% 434,580.10 2.9% 1,812,594.07 0.73% 95,601.13 0.6% Beaufort County CC Bladen CC 1,946,107.19 0.78% 91,513.25 0.6% 2,447,304.26 0.99% 224,192.27 1.5% Blue Ridge CC Brunswick CC 1,382,612.12 0.56% 119,112.23 0.8% Caldwell CC & TI 4,933,297.33 1.99% 281,681.34 1.9% Cape Fear CC 11,000,601.76 4.43% 419,842.00 2.8% Carteret CC 1,789,388.54 0.72% 195,730.42 1.3% 5,270,380.07 2.12% 202,717.29 1.4% Catawba Valley CC Central Carolina CC 4,840,770.77 1.95% 429,983.75 2.9% Central Piedmont CC 20,308,588.59 8.18% 585,940.21 3.9% Cleveland CC 3,785,496.67 1.52% 131,011.25 0.9% Coastal Carolina CC 6,182,134.46 2.49% 708,236.80 4.8% 2,755,389.70 1.11% 149,142.03 1.0% College of The Albemarle Craven CC 3,690,484.57 1.49% 263,886.50 1.8% 3,630,286.99 1.46% 177,642.50 1.2% Davidson County CC Durham TCC 5,095,030.55 2.05% 491,271.25 3.3% 3,429,024.50 1.38% 106,839.45 0.7% Edgecombe CC 12,573,782.27 5.06% 1,002,530.75 6.7% Fayetteville TCC 10,359,156.51 4.17% 823,878.24 5.5% Forsyth TCC 6,861,319.57 2.76% 192,153.25 1.3% Gaston College Guilford TCC 16,300,276.03 6.56% 517,351.17 3.5% Halifax CC 1,679,702.70 0.68% 81,158.00 0.5% 2,015,933.66 0.81% 85,238.75 0.6% Haywood CC Isothermal CC 2,469,060.53 0.99% 121,928.75 0.8% James Sprunt CC 1,352,721.39 0.54% 75,766.25 0.5% Johnston CC 3,977,885.25 1.60% 423,114.20 2.8% Lenoir CC 3,292,318.47 1.33% 242,771.00 1.6% Martin CC 758,550.79 0.31% 72,682.50 0.5% 981,751.17 0.40% 111,930.00 0.8% Mayland CC McDowell TCC 1,593,912.67 0.64% 27,655.00 0.2% Mitchell CC 3,150,146.26 1.27% 168,701.25 1.1% Montgomery CC 857,054.86 0.35% 70,896.60 0.5% Nash CC 2,791,582.37 1.12% 161,614.65 1.1% Pamlico CC 378,381.52 0.15% 38,953.00 0.3% Piedmont CC 2,137,519.49 0.86% 172,603.00 1.2% Pitt CC 9,121,914.40 3.67% 245,974.13 1.7% Randolph CC 2,867,293.82 1.15% 274,305.94 1.8% Richmond CC 1,956,884.28 0.79% 78,670.25 0.5% Roanoke-Chowan CC 781,094.47 0.31% 86,766.60 0.6% Robeson CC 2,630,812.40 1.06% 160,913.43 1.1% 2,580,331.88 1.04% 133,637.64 0.9% Rockingham CC Rowan-Cabarrus CC 7,291,577.33 2.94% 281,833.24 1.9% Sampson CC 1,376,350.88 0.55% 117,848.75 0.8% Sandhills CC 4,081,018.52 1.64% 114,550.00 0.8% South Piedmont CC 2,127,602.72 0.86% 153,245.60 1.0% Southeastern CC 2,259,975.74 0.91% 177,573.25 1.2% Southwestern CC 2,480,212.93 1.00% 203,980.25 1.4% 2,981,209.10 1.20% 341,022.15 2.3% Stanly CC 3,245,179.51 1.31% 231,532.50 1.6% Surry CC 1,271,557.79 0.51% 93,633.75 0.6% Tri-County CC Vance-Granville CC 3,619,488.93 1.46% 270,576.69 1.8% Wake TCC 14,307,893.96 5.76% 1,286,931.90 8.6% 3,727,642.78 1.50% 229,231.25 1.5% Wayne CC Western Piedmont CC 3,287,137.92 1.32% 105,131.56 0.7% Wilkes CC 3,181,426.82 1.28% 312,106.75 2.1% Wilson CC 2,447,915.32 0.99% 244,904.15 1.6% $14,897,357.41 TOTAL $248,306,034.82

2010-11 Estimated Receipts Curriculum $6,904,719 8,453,400 2,166,221 2,325,782 2,924,760 1,652,352 5,895,756 13,146,759 2,138,488 6,298,602 5,785,178 24,270,682 4,524,026 7,388,235 3,292,951 4,410,478 4,338,536 6,089,043 4,098,008 15,026,858 12,380,171 8,199,925 19,480,370 2,007,403 2,409,231 2,950,761 1,616,630 4,753,949 3,934,632 906,540 1,173,285 1,904,876 3,764,722 1,024,262 3,336,205 452,202 2,554,538 10,901,550 3,426,687 2,338,662 933,482 3,144,069 3,083,740 8,714,124 1,644,869 4,877,203 2,542,686 2,700,885 2,964,089 3,562,827 3,878,296 1,519,632 4,325,631 17,099,285 4,454,885 3,928,440 3,802,106 2,925,489 $296,749,173 Occupational $332,851 571,430 125,706 120,331 294,791 156,621 370,383 552,051 257,366 266,553 565,386 770,453 172,267 931,261 196,107 346,985 233,582 645,973 140,483 1,318,229 1,083,318 252,663 680,266 106,715 112,081 160,324 99,625 556,353 319,220 95,570 147,177 36,364 221,825 93,222 212,507 51,219 226,956 323,432 360,685 103,444 114,089 211,585 175,720 370,583 154,959 150,622 201,503 233,491 268,214 448,410 304,442 123,119 355,782 1,692,188 301,416 138,238 410,390 322,026 $19,588,552 Total $7,237,570 9,024,830 2,291,927 2,446,113 3,219,551 1,808,973 6,266,139 13,698,810 2,395,854 6,565,155 6,350,564 25,041,135 4,696,293 8,319,496 3,489,058 4,757,463 4,572,118 6,735,016 4,238,491 16,345,087 13,463,489 8,452,588 20,160,636 2,114,118 2,521,312 3,111,085 1,716,255 5,310,302 4,253,852 1,002,110 1,320,462 1,941,240 3,986,547 1,117,484 3,548,712 503,421 2,781,494 11,224,982 3,787,372 2,442,106 1,047,571 3,355,654 3,259,460 9,084,707 1,799,828 5,027,825 2,744,189 2,934,376 3,232,303 4,011,237 4,182,738 1,642,751 4,681,413 18,791,473 4,756,301 4,066,678 4,212,496 3,247,515 $316,337,725

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VI.

A.

Other Budget Policy Issues

Joint High School Programs S.L. 2010-31 enacted changes related to Joint High School Programs. Consistent with CC10027, the following is a summary of those changes. Joint High School Program Funding Per Section 7.24(h) of S.L. 2010-31, as amended by Section 3.1 of S.L. 2010-123, colleges may no longer generate State funds through budget FTE or receive reimbursements from the Department of Public Instruction for general education (excluding mathematics, science and technology), physical education, and college success skills courses offered to high school students. These limitations do not apply to students enrolled in Early College (T90930) and Middle College (T90940) High Schools. These limitations do apply to all other high school students, including those served through Huskins, Dual Enrollment, Learn and Earn Online, and other Cooperative Innovative High School Programs. Effective Fall Semester 2010, colleges may not earn budget FTE for high school students (excluding Early and Middle College students) enrolled in general education courses with the following prefixes: ACA, ANT, ARA, ART, ASL, CHI, COM, DAN, DRA, ECO, ENG, FRE, GEO, GER, HIS, HUM, ITA, JPN, LAT, MUS, PED, PHI, POL, POR, PSY, RED, REL, RUS, SOC, and SPA. Colleges may continue to earn budget FTE for all college-level courses provided to students enrolled in an approved Early College (T90930) or Middle College (T90940) High School. (Colleges should consult the System Office's Division of Academic and Student Services on questions related to approved programs.) Colleges may continue to earn budget FTE for high school students enrolled in Huskins, Dual Enrollment, Learn and Earn Online, and Other Cooperative Innovative High School Program courses with the following mathematics and science general education prefixes: AST, BIO, CHM, CIS, GEL, IMS, MAT, PHS, PHY, and SCI. Additionally, colleges will continue to be eligible to earn budget FTE for all Huskins and Dual Enrollment students enrolled in technical and vocational courses. For the 2010-2011 academic year, colleges may wish to review the following options to provide the restricted courses listed above to high school students not enrolled in an Early or Middle College High School: 1. Offer the courses as planned, without reporting budget FTE. 2. Advise students to enroll in mathematics, science, and technology courses. 3. Charge the students an amount to cover the costs of the courses and enroll the students in self-supporting sections. (A student must be enrolled in a Joint High School Program,

77

be identified as Intellectually Gifted, or be 16 years of age to pay and enroll as a selfsupporting student.) 4. Negotiate with the local school administrative unit to provide funding for selfsupporting sections. Cooperative and Innovative High School Program Approvals Section 7.21(e) of S.L. 2010-31 places a moratorium on approval of new Cooperative and Innovative High School Programs after July 1, 2010 unless the school has received "an explicit legislative appropriation." The Joint Advisory Committee for Cooperative and Innovative High School Programs will review and revise the application process as outlined in G.S. 115C-238.51 to bring that process into compliance with this new legislation. Possible Elimination of Tuition Waiver for High School Students in 2011-12 Section 7.24.(b) of S.L. 2010-31 states the General Assembly's intent to eliminate the tuition waiver for high school students effective July 1, 2011, except for those students enrolled in Cooperative Innovative High School Programs (which includes Early and Middle College High Schools). It is also their intent to implement a funding formula in the 2011-12 school year that will provide money to local school administrative units for the purpose of paying tuition of high school students taking colleges courses. Further legislative action will be required to actualize this stated intent.

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B.

Prison Inmates The Appropriations Act of 2009 directed the Department of Correction and the Community Colleges System Office to jointly conduct a continuation review of prisoner education and appropriated funds to support prison FTE for FY 2009-10 on a non-recurring basis. Also, Section 8.11 of S.L. 2009-451 enacted language to eliminate the waiver for prison inmates effective July 1, 2010. The Appropriations Act of 2010 restored a portion of the funding for prisoner education and reinstated the waiver for prison inmates through Section 8.4.(a) of S.L. 2010-31.17 Section 8.3 of S.L. 2010-31 outlines a number of directives related to instruction provided to prison inmates. Federal Prisons and Local Jails Funds appropriated for community college courses for prison inmates shall be used only for inmates in State prisons. Courses in federal prisons or local jails may not earn regular budget FTE, but may be offered on a self-supporting basis. Consistent with CC02-107, since the amount charged for a self-supporting class is not considered tuition or a registration fee, the cost for any individual or group for a self-supporting class is not waived under G.S. 115D5(b). State Prisons The first priority for the use of the restored prison education funds is Basic Skills instruction. Funds not needed for this purpose may be used for continuing education and curriculum courses related to job skills, transition needs, or both. Colleges may not use funds for Associate in Arts, Associate in Science, or Associate of General Education degrees. Consistent with the memo from Dr. Sharon Morrissey dated July 9, 2010, colleges may only provide instruction that has been approved by the Department of Correction. Report on Education for Prison Inmates Section 8.3.(c) of S.L. 2010-31 requires the Department of Correction and the Community Colleges System Office to report to the 2011 General Assembly on the strategies for implementing a number of itemized recommendations related to enhanced programming and data collection and for strategies for reasonably limiting the number of courses an individual takes while in prison.

Section 8.4.(a) of S.L. 2010-31 negates Section 8.11.(e) of S.L. 2009-451 which eliminated the waiver for prison inmates effective July 1, 2010.

17

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C.

Financial Aid Mandatory Participation in the Federal Direct Loan Program Section 8.5.(b) of S.L. 2010-31 requires all community colleges to participate in the William D. Ford Federal Direct Loan Program effective July 1, 2011. The legislation further directs that "the State Board shall ensure that at least one counselor is available at each college to inform students regarding federal programs available to assist community college students, including, but not limited to, Pell Grants, HOPE and Lifetime Learning Tax Credits, and the William D. Ford Federal Direct Loan Program, and to actively encourage students to utilize these federal programs and funds." Through the funds allocated for student services through the Institutional Support allotment, the State Board is providing colleges with funds to fulfill this requirement.

Study Financial Aid Consolidation Section 9.2 of S.L. 2010-31 directs the State Education Assistance Authority, the University of North Carolina, the North Carolina Community College System, and the Fiscal Research Division of the General Assembly to establish a work group to study jointly the simplification and consolidation of State-funded financial aid for students. The purpose of the study is to develop recommendations and options for simplifying and consolidating the delivery of, administration of, and access to State-funded financial aid for students. In conducting the study, the work group shall consider the State's current student financial aid programs and how to consolidate those programs into two categories of State-funded student aid programs: one program that consolidates the State's major need-based programs and one program that consolidates many of the State's scholarship and forgivable loan programs currently available to students who plan to earn degrees and pursue careers in certain professional areas.

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Appendix A: Relevant Excerpts from S.L. 2009-451

Part VIII of S.L. 2009-451 is the Community Colleges section. However, there are provisions in other sections that apply or are relevant to the NC Community College Section. Those provisions follow Part VIII. PART VIII. COMMUNITY COLLEGES COMMUNITY COLLEGE FACULTY SALARY PLAN SECTION 8.1.(a) (1) It is the intent of the General Assembly to encourage community colleges to make faculty salaries a priority and to reward colleges that have taken steps to achieve the national average community college faculty salary, therefore: a. If the average faculty salary at a community college is one hundred percent (100%) or more of the national average community college faculty salary, the college may transfer up to eight percent (8%) of the State funds allocated to it for faculty salaries. b. If the average faculty salary at a community college is at least ninety-five percent (95%) but less than one hundred percent (100%) of the national average community college faculty salary, the college may transfer up to six percent (6%) of the State funds allocated to it for faculty salaries. c. If the average faculty salary at a community college is at least ninety percent (90%) but less than ninety-five percent (95%) of the national average community college faculty salary, the college may transfer up to five percent (5%) of the State funds allocated to it for faculty salaries. d. If the average faculty salary at a community college is at least eighty-five percent (85%) but less than ninety percent (90%) of the national average community college faculty salary, the college may transfer up to three percent (3%) of the State funds allocated to it for faculty salaries. e. If the average faculty salary at a community college is eighty-five percent (85%) or less of the national average community college faculty salary, the college may transfer up to two percent (2%) of the State funds allocated to it for faculty salaries. Except as provided by subdivision (2) of this subsection, a community college shall not transfer a greater percentage of the State funds allocated to it for faculty salaries than is authorized by this subsection. (2) With the approval of the State Board of Community Colleges, a community college at which the average faculty salary is eighty-five percent (85%) or less of the national average may transfer a greater percentage of the State funds allocated to it for faculty salaries than is authorized by sub-subdivision e. of subdivision (1) of this subsection. The State Board shall approve the transfer only for purposes that directly affect student services. The State Board of Community Colleges shall adopt guidelines to implement the provisions of this subdivision.

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Appendix A ­ Excerpts from S.L. 2009-451 A local community college may use all State funds allocated to it except for Literacy Funds and Funds for Customized Training to increase faculty salaries. SECTION 8.1.(b) As used in this section: (1) "Average faculty salary at a community college" means the total nine-month salary from all sources of all nine-month, full-time, curriculum faculty at the college, as determined by the North Carolina Community College System on October 1 of each year. (2) "National average community college faculty salary" means the nine-month, full-time, curriculum salary average, as published by the Integrated Postsecondary Education Data System (IPEDS), for the most recent year for which data are available. SECTION 8.1.(c) The State Board of Community Colleges shall adopt guidelines to implement the provisions of this section. USE OF BASIC SKILLS FUNDS SECTION 8.2. Notwithstanding any other provision of law, a local community college may use up to five percent (5%) of the Literacy Funds allocated to it by the State Board of Community Colleges to procure instructional technology for literacy labs. This technology may include computers, instructional software and software licenses, scanners for testing, and classroom projection equipment. FINANCIAL AID PROGRAM ADMINISTRATIVE COSTS SECTION 8.4. G.S. 115D-40.1(c) reads as rewritten: "(c) Administration of Program. ­ The State Board shall adopt rules and policies for the disbursement of the financial assistance provided in this section. Degree, diploma, and certificate students must complete a Free Application for Federal Student Aid (FAFSA) to be eligible for financial assistance. The State Board may contract with the State Education Assistance Authority for administration of these financial assistance funds. These funds shall not revert at the end of each fiscal year but shall remain available until expended for need-based financial assistance. The State Board shall ensure that at least one counselor is available at each college to inform students about federal programs and funds available to assist community college students including, but not limited to, Pell Grants and HOPE and Lifetime Learning Tax Credits and to actively encourage students to utilize these federal programs and funds. The interest earned on the funds provided in this section may be used to support the costs of administering the Community College Grant Program." CARRYFORWARD OF NORTH CAROLINA RESEARCH CAMPUS BIOTECHNOLOGY TRAINING FUNDS SECTION 8.5.(a) Funds appropriated in S.L. 2006-66, S.L. 2007-323, and S.L. 2008-103 for the Rowan-Cabarrus Community College Biotechnology Training Center and Greenhouse at the North Carolina Research Campus in Kannapolis shall not revert, but shall remain available until expended. SECTION 8.5.(b) This section becomes effective June 30, 2009. (3)

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Appendix A ­ Excerpts from S.L. 2009-451 LEARN AND EARN ONLINE FUNDS SECTION 8.6.(a) Community college student enrollments in Learn and Earn Online shall be considered regular budget full-time equivalent in the curriculum enrollment formula regardless of the term during which the instruction is provided. The North Carolina Community College System may only seek reimbursement from the Department of Public Instruction for technology, course fees, and textbooks required for course participation. SECTION 8.6.(b) The Office of State Budget and Management shall transfer sufficient funds from the State Public School Fund to the Community Colleges System Office to implement subsection (b) of this section. CARRYFORWARD OF COLLEGE INFORMATION SYSTEM FUNDS SECTION 8.7.(a) Funds appropriated in this act to the Community Colleges System Office for the College Information System shall not revert at the end of the 2008-2009 fiscal year but shall remain available until expended. These funds may be used to purchase periodic system upgrades. SECTION 8.7.(b) Notwithstanding G.S. 143C-6-4, the Community Colleges System Office may, subject to the approval of the Office of State Budget and Management and in consultation with the Office of Information Technology Services, use funds appropriated in this act for the College Information System to create a maximum of three positions if doing so is cost-effective. Personnel positions created pursuant to this subsection shall be dedicated to maintaining and administering information technology and software upgrades to the College Information System. SECTION 8.7.(c) Subsection (a) of this section becomes effective July 1, 2009. MODIFY MULTICAMPUS AND OFF CAMPUS CENTER REPORT DATE SECTION 8.8. G.S. 115D-5(o) reads as rewritten: "(o) The General Assembly finds that additional data are needed to determine the adequacy of multicampus and off-campus center funds; therefore, multicampus colleges and colleges with off-campus centers shall report annually, beginning September 1, 2005, to the Community Colleges System Office on all expenditures by line item of funds used to support their multicampuses and off-campus centers. The Community Colleges System Office shall report on these expenditures to the Education Appropriation Subcommittees of the House of Representatives and the Senate, the Office of State Budget and Management, and the Fiscal Research Division by December 1 of each year." REPEAL REPORT ON THE USE OF COMMUNITY COLLEGE FACILITIES BY PRIVATE BUSINESSES SECTION 8.9. G.S. 115D-5(q) is repealed. ELIMINATE SOME TUITION WAIVERS SECTION 8.11.(a) G.S. 115B-2(a)(1) is repealed. SECTION 8.11.(b) G.S. 115B-2.1 is repealed. SECTION 8.11.(c) G.S. 115B-5(a) is repealed. SECTION 8.11.(d) Effective July 1, 2009, G.S. 115D-5(b) reads as rewritten: "(b) In order to make instruction as accessible as possible to all citizens, the teaching of curricular courses and of noncurricular extension courses at convenient locations away from

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Appendix A ­ Excerpts from S.L. 2009-451 institution campuses as well as on campuses is authorized and shall be encouraged. A pro rata portion of the established regular tuition rate charged a full-time student shall be charged a part-time student taking any curriculum course. In lieu of any tuition charge, the State Board of Community Colleges shall establish a uniform registration fee, or a schedule of uniform registration fees, to be charged students enrolling in extension courses for which instruction is financed primarily from State funds; provided, however, that the State Board of Community Colleges may provide by general and uniform regulations for waiver of tuition and registration fees for persons not enrolled in elementary or secondary schools taking courses leading to a high school diploma or equivalent certificate, for training courses for volunteer firemen, local fire department personnel, volunteer rescue and lifesaving department personnel, local rescue and lifesaving department personnel, Radio Emergency Associated Citizens Team (REACT) members when the REACT team is under contract to a county as an emergency response agency, local law-enforcement officers, patients in State alcoholic rehabilitation centers, all full-time custodial employees of the Department of Correction, employees of the Department's Division of Community Corrections and employees of the Department of Juvenile Justice and Delinquency Prevention required to be certified under Chapter 17C of the General Statutes and the rules of the Criminal Justice and Training Standards Commission, trainees enrolled in courses conducted under the New and Expanding Industry Program, clients of sheltered workshops, clients of adult developmental activity programs, students in Health and Human Services Development Programs, juveniles of any age committed to the Department of Juvenile Justice and Delinquency Prevention by a court of competent jurisdiction, prison inmates, members of the North Carolina State Defense Militia as defined in G.S. 127A-5 and as administered under Article 5 of Chapter 127A of the General Statutes, and elementary and secondary school employees enrolled in courses in first aid or cardiopulmonary resuscitation (CPR). Provided further, tuition shall be waived for up to six hours of credit per academic semester for senior citizens age 65 or older who are qualified as legal residents of North Carolina. Provided further, tuition shall also be waived for all courses taken by high school students at community colleges, including students in early college and middle college high school programs, in accordance with G.S. 115D-20(4) and this section." SECTION 8.11.(e) Effective July 1, 2010, G.S. 115D-5(b), as rewritten by subsection 8.11(d) of this section, reads as rewritten: "(b) In order to make instruction as accessible as possible to all citizens, the teaching of curricular courses and of noncurricular extension courses at convenient locations away from institution campuses as well as on campuses is authorized and shall be encouraged. A pro rata portion of the established regular tuition rate charged a full-time student shall be charged a part-time student taking any curriculum course. In lieu of any tuition charge, the State Board of Community Colleges shall establish a uniform registration fee, or a schedule of uniform registration fees, to be charged students enrolling in extension courses for which instruction is financed primarily from State funds; provided, however, that the State Board of Community Colleges may provide by general and uniform regulations for waiver of tuition and registration fees for persons not enrolled in elementary or secondary schools taking courses leading to a high school diploma or equivalent certificate, for training courses for volunteer firemen, local fire department personnel, volunteer rescue and lifesaving department personnel, local rescue and lifesaving department personnel, Radio Emergency Associated Citizens Team (REACT) members when the REACT team is under contract to a county as an emergency response agency, local law-enforcement officers, patients in State alcoholic rehabilitation centers, all full-time custodial employees of the Department of Correction, employees of the Department's Division of Community Corrections and employees of the

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Appendix A ­ Excerpts from S.L. 2009-451 Department of Juvenile Justice and Delinquency Prevention required to be certified under Chapter 17C of the General Statutes and the rules of the Criminal Justice and Training Standards Commission, trainees enrolled in courses conducted under the New and Expanding Industry Program, clients of sheltered workshops, clients of adult developmental activity programs, students in Health and Human Services Development Programs, juveniles of any age committed to the Department of Juvenile Justice and Delinquency Prevention by a court of competent jurisdiction, members of the North Carolina State Defense Militia as defined in G.S. 127A-5 and as administered under Article 5 of Chapter 127A of the General Statutes, and elementary and secondary school employees enrolled in courses in first aid or cardiopulmonary resuscitation (CPR). Provided further, tuition shall be waived for up to six hours of credit per academic semester for senior citizens waived for up to six hours of credit per academic semester for senior citizens age 65 or older who are qualified as legal residents of North Carolina. Provided further, tuition shall also be waived for all courses taken by high school students at community colleges, including students in early college and middle college high school programs, in accordance with G.S. 115D-20(4) and this section." CONTINUING EDUCATION FEES SECTION 8.12. The fees charged for community college continuing education courses shall be based on the number of hours of class time. The fees shall be: Class Hours Cost 1-24 $ 65.00; 25-50 $120.00; 51+ $175.00. CONSOLIDATE NURSING AND ALLIED HEALTH ALLOTMENTS SECTION 8.13. The State Board of Community Colleges shall consolidate the Nursing categorical allotment into the Allied Health categorical allotment before distributing funds appropriated in this act. These funds shall be awarded to community colleges based on the full-time equivalent (FTE) enrollment in allied health programs. CUSTOMIZED TRAINING PROGRAM SECTION 8.14.(a) Funds appropriated in this act for the Customized Training Program that unexpended and unencumbered on June 30, 2010, may, subject to cash availability and the approval of the Office of State Budget and Management, be carried forward into the 2010-2011 fiscal year for equipment purchases. These funds shall be distributed through the Educational Equipment Reserve. SECTION 8.14.(b) Projects that create or retain jobs in North Carolina shall receive first priority for funds appropriated for the Customized Training Program. SECTION 8.14.(c) G.S. 115D-5.1(f) is amended by adding a new subsection to read: "(f) The State Board shall report on an annual basis to the Joint Legislative Education Oversight Committee on: ... (1a) The types of services sought by the company, whether for new, expanding, or existing industry."

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Appendix A ­ Excerpts from S.L. 2009-451 COMMUNITY COLLEGES URGED TO PARTICIPATE IN FEDERAL STUDENT LOAN PROGRAMS SECTION 8.15. The General Assembly urges all community colleges to participate in federal student loan programs.

NORTH CAROLINA MILITARY BUSINESS CENTER SECTION 8.16. The funds appropriated in this act to the Community Colleges System Office for the NC Military Business Center shall be used for the continued operations of the NC Military Business Center. The Military Business Center shall provide services to residents and businesses throughout the State. The purpose of the business center is to serve as a coordinator and facilitator for small- and medium-sized businesses throughout the State seeking to win and complete federal contracts, with a focus on military-related contracts. Activities of the business center shall include: (1) Training and mentoring eligible businesses on effectively marketing their products and services to military and other federal clients and contracting offices. (2) Assisting eligible businesses with any required accreditations and qualifications for government contracting. (3) Teaching eligible businesses about federal set-aside programs and how to take advantage of these programs directly or through partnering with other eligible businesses. (4) Training and assisting clients with the registration, proposal development, and bidding processes related to military and other federal contracts. (5) Training eligible businesses on legal and regulatory compliance. (6) Designing and implementing mentoring programs to facilitate the development of interrelationships between eligible businesses. (7) Forecasting the need for and assisting eligible businesses in obtaining advanced certifications and accreditations and advanced manufacturing skills and technologies. (8) Working with Small Business Centers throughout the State to carry out these activities on a statewide basis. (9) The maintenance of an Internet-based system to match the knowledge, skills, and abilities of active-duty military personnel, veterans, and their families throughout the State with the needs of North Carolina businesses. (10) The study of community resources and existing business capacity to meet the current and future needs of the military and the development of proposals for further developing community resources and developing or recruiting new businesses to meet those needs. (11) The marketing of the services provided by the Military Business Center. REVISE COLLEGE FUNDING FORMULA CATEGORIES SECTION 8.17.(a) The State Board of Community Colleges shall revise the college funding formula categories to accurately reflect where the colleges are spending their money. The revised formulas shall ensure that adequate funds are available for campus security, including the hiring of personnel, contracted professional services, surveillance cameras, call boxes, alert systems, and other equipment-related expenditures.

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Appendix A ­ Excerpts from S.L. 2009-451 SECTION 8.17.(b) The State Board of Community Colleges shall adopt emergency rules in accordance with G.S. 150B-21.1A for the 2009-2011 fiscal biennium to grant community colleges the flexibility to transfer funds as necessary to minimize the impact of budget reductions on the educational program, including the elimination of State funding for maintenance of plant.

FIRE TRAINING COORDINATORS SECTION 8.18. All community college fire training coordinators shall be under the direct supervision of the Community Colleges System Office. There shall be one fire training coordinator in the eastern part of the State, one in the central part of the State, and one in the western part of the State. CONTINUATION REVIEW OF THE PRISONER EDUCATION PROGRAM SECTION 8.19. The continuation review of the community college prisoner education program that is required by Section 6.6E of this act shall be prepared jointly by the Department of Correction and the Community Colleges System Office. The report shall include: (1) Information on the total cost of the program; (2) An analysis of the appropriate source of funding, including an analysis of prisoners' ability to pay; (3) A review of which programs are most vital to the prisoner population and a priority order for restoration of the programs; (4) An analysis of the cost per FTE to provide these programs to the prison population compared to the cost for the general population, including the FTE costs for curriculum, continuing education, and basic skills courses; and (5) An analysis of the feasibility of limiting access to the education program to those prisoners who will be released within a certain time frame and to programs that lower recidivism rates. STUDY OF EFFICIENT AND EFFECTIVE COMMUNITY COLLEGE ADMINISTRATION SECTION 8.20. The Joint Legislative Program Evaluation Oversight Committee shall include in the 2010-2011 Work Plan for the Program Evaluation Division of the General Assembly a study of the most efficient and effective way to administer the local community colleges system. In the course of the study, the Program Evaluation Division shall consider the advisability of consolidating community college administration and strategies for ensuring access for students. The Program Evaluation Division shall submit the study to the Joint Legislative Program Evaluation Oversight Committee, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division at a date to be determined by the Joint Legislative Program Evaluation Oversight Committee. NO STATE FUNDS FOR INTERCOLLEGIATE ATHLETICS SECTION 8.21. No State funds, student tuition receipts or student aid funds shall be used to create, support, maintain, or operate an intercollegiate athletics program at a community college.

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Appendix A ­ Excerpts from S.L. 2009-451 FUNDING FOR HIGH SCHOOL STUDENTS ENROLLED IN COMMUNITY COLLEGES, COLLEGES, AND UNIVERSITIES SECTION 8.22. The Community Colleges System Office, with the cooperation and assistance of the Department of Public Instruction and the Board of Governors of The University of North Carolina, shall study issues related to funding for high school students enrolled in community college, college, and university courses. The study shall include an analysis of the cost of serving these students by grade level and an analysis of how the State can most efficiently and effectively pay for those expenditures. The Department of Public Instruction, the Community Colleges System Office, and the Board of Governors shall jointly report the results of the study to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division by January 15, 2010. FUNDING FOR NEW MULTICAMPUS COLLEGES SECTION 8.23. The State Board of Community Colleges shall study the cost of funding all of the multicampus colleges in the North Carolina Community College System and shall develop a mechanism for ensuring that newly established multicampus colleges are funded at the same level as existing multicampus colleges. The Board shall further explore recommendations for including new multicampus colleges in the continuation budget. The State Board of Community Colleges shall report the results of its study to the Joint Legislative Education Oversight Committee by February 15, 2010. MANAGEMENT FLEXIBILITY REDUCTION/COMMUNITY COLLEGES SECTION 8.24. The management flexibility reduction for the North Carolina Community College System shall be allocated by the State Board of Community Colleges in a manner that accounts for the unique needs of each college and provides for the equitable distribution of funds to the institutions consistent with G.S. 115D-5(a). Before taking reductions to instructional budgets, the community colleges shall consider reducing budgets for senior and middle management personnel and for programs that have both low-enrollment and low-postgraduate success. Colleges shall minimize the impact on student support services and on the retraining of dislocated workers. The community colleges shall also review their institutional funds to determine whether there are monies available in those funds that can be used to assist with operating costs before taking reductions in instructional budgets. HICKORY METROPOLITAN HIGHER EDUCATION CENTER SECTION 8.25.(a) Notwithstanding any other provision of law or any agreement to the contrary among any units of the Community College System and any constituent institution of The University of North Carolina, Catawba Valley Community College shall continue to serve as the fiscal agent for the Hickory Metropolitan Higher Education Center (Center). SECTION 8.25.(b) The Center shall not, solely as a result of any existing agreement among any institutions of the Community College System and any constituent institution of The University of North Carolina, end any agreement with any other accredited college or university to offer courses at the Center.

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Appendix A ­ Excerpts from S.L. 2009-451 PROVISIONS FROM OTHER PARTS OF S.L. 2009-451 LEARN AND EARN ONLINE SECTION 7.10.(a) Funds are appropriated in this act for the Learn and Earn Online program. This program will allow high school students to enroll in college courses to qualify for college credit. Online courses shall be made available to students through The University of North Carolina and the North Carolina Community College System. SECTION 7.10.(b) Funds shall be used for: (1) Course tuition and only those technology and course fees and textbooks required for course participation; and (2) A liaison position in the Department of Public Instruction to coordinate with The University of North Carolina and the North Carolina Community College System and to communicate course availability and related information to high school administrators, teachers, and counselors. SECTION 7.10.(c) The State Board of Education shall determine the allocation of Learn and Earn Online course offerings across the State. SECTION 7.10.(d) The State Board of Education shall allot funds for tuition, fees, and textbooks on the basis of and after verification of the credit hour enrollment of high school students in Learn and Earn Online courses. The Office of State Budget and Management shall transfer sufficient funds from the State Public School Fund to the Community Colleges System Office for courses offered by community colleges. SECTION 7.10.(e) The University of North Carolina program shall report to The University of North Carolina Board of Governors, and the North Carolina Community College program shall report to the State Board of Community Colleges. The Department of Public Instruction shall report to the State Board of Education. SECTION 7.10.(f) Both The University of North Carolina and the North Carolina Community College System shall provide oversight and coordination, including coordination with the Department of Public Instruction and with the North Carolina Virtual Public School (NCVPS), to avoid course duplication. SECTION 7.10.(g) The programs shall establish course quality and rigor standards and shall conduct course evaluations to ensure that the online courses meet the established standards. SECTION 7.10.(h) Local school administrative units may purchase textbooks for Learn and Earn Online courses through the Department of Public Instruction's textbook warehouse in the same manner as textbooks that have been adopted for public school students by the State Board of Education. SECTION 7.10.(i) G.S. 115D-1.2(a) reads as rewritten: "(a) Notwithstanding 115D-1, a student enrolled in grades 9, 10, 11, or 12 and participating in the Learn and Earn Online program shall be permitted to enroll in online courses through a community college for college credit. Students participating in the Learn and Earn Online program may enroll in Learn and Earn Online courses regardless of the college service areas in which they reside." SECTION 7.10.(j) For the 2009-2011 biennium, high school students attending a nonpublic school may enroll in any Learn and Earn Online course with space available that has been offered to but not filled by any eligible public school student. Notwithstanding subsection (h) of this section, nonpublic school students shall be responsible for supplying their own textbooks and other instructional materials.

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Appendix A ­ Excerpts from S.L. 2009-451 SECTION 7.10.(k) Funds appropriated for Learn and Earn Online that are unexpended or unencumbered at the end of each fiscal year shall not revert but shall remain available for expenditure. SECTION 7.10.(l) Subsection (k) of this section becomes effective June 30, 2009. PUBLIC EMPLOYEE SALARIES SECTION 26.1A.(a) The salaries of those officers and employees, whose salaries for the 2008-2009 fiscal year were set or increased in Sections 26.1, 26.2, 26.3, 26.4, 26.5, 26.6, 26.7, 26.8, 26.9, 26.10, 26.11, 26.11A, 26.12, 26.12D, 26.13, 26.14, 26.18, and 26.19 of Session Law 2008-107, and in effect on June 30, 2009, or the last date in pay status during the 2008-2009 fiscal year if earlier, shall remain in effect and shall not increase for the 2009-2010 and 2010-2011 fiscal years, except: (1) As provided for by Section 29.20A of S.L. 2005-276. (2) For Community College faculty as otherwise provided in Section 8.1 of this act. (3) For University of North Carolina faculty as otherwise provided by the Faculty Recruiting and Retention Fund or the Distinguished Professors Endowment Fund. (4) Salaries may be increased for reallocations or promotions, in-range adjustments for job change, career progression adjustments for demonstrated competencies, or any other adjustment related to an increase in job duties or responsibilities, none of which are subject to the salary freeze otherwise provided by this subsection. All other salary increases are prohibited. SECTION 26.1A.(b) The automatic salary step increases for assistant and deputy clerks of superior court and magistrates are suspended for the 2009-2010 and 2010-2011 fiscal years. SECTION 26.1A.(c) The salary increase provisions of G.S. 20-187.3 are suspended for the 2009-2010 and 2010-2011 fiscal years. SECTION 26.1A.(d) For the 2009-2010 and 2010-2011 fiscal years, the salaries of members and officers of the General Assembly shall remain the amounts set under G.S. 120-3 in 1994 by the 1993 General Assembly.

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Appendix B: Relevant Excerpts from S.L. 2010-31

Part VIII of S.L. 2010-31 is the Community Colleges section. However, there are provisions in other sections that apply or are relevant to the NC Community College Section. Those provisions follow Part VIII. PART VIII. COMMUNITY COLLEGES CARRYFORWARD OF COLLEGE INFORMATION SYSTEM FUNDS SECTION 8.1.(a) Of the funds appropriated to the Community Colleges System Office for the 2009-2011 fiscal biennium for the College Information System, up to one million two hundred fifty thousand dollars ($1,250,000) shall not revert at the end of each fiscal year but shall remain available until expended. These funds may only be used to purchase periodic system upgrades. SECTION 8.1.(b) This section becomes effective June 30, 2010. STATE AID BUDGET FLEXIBILITY SECTION 8.2. G.S. 115D-31 is amended by adding a new subsection to read: "(b1) A local community college may use all State funds allocated to it, except for Literacy funds and Customized Training funds, for any authorized purpose that is consistent with the college's Institutional Effectiveness Plan. Each local community college shall include in its Institutional Effectiveness Plan a section on how funding flexibility allows the college to meet the demands of the local community and to maintain a presence in all previously funded categorical programs." EDUCATION FOR PRISON INMATES SECTION 8.3.(a) Funds appropriated for community college courses for prison inmates shall be used only for inmates in State prisons. The first priority for the use of these funds shall be to restore the FTE for basic skills courses to the FY 2008-2009 level. Funds not needed for this purpose may be used for continuing education and curriculum courses related to job skills training. These funds shall not be used for Associate of Arts, Associate of Science, or Associate of General Education degrees. SECTION 8.3.(b) Courses in federal prisons or local jails shall not earn regular budget full-time equivalents, but may be offered on a self-supporting basis. SECTION 8.3.(c) The Department of Correction and the Community Colleges System Office shall report to the 2011 General Assembly on: (1) The implementation of the new funding structure and requirements. (2) Strategies for implementing their recommendations to: a. Enhance measurable goals, objectives, and outcomes. b. Enhance and standardize data collection. c. Strengthen the continuum of programming from entry to exit, based on assessment of skills and needs. d. Give individuals the opportunity to use specific skills through work assignments that meet system needs. e. Tailor programs to specific inmate needs. f. Increase Cognitive Behavioral Interventions (CBI) courses. g. Develop an offender-specific human resources development course.

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Appendix B ­ Excerpts from S.L. 2010-31 h. Explore additional funding sources. i. Explore federal grant for wiring courses. (3) Strategies for reasonably limiting the number of courses an individual takes while in prison. SECTION 8.3.(d) G.S. 115D-5(c) reads as rewritten: "(c) No course of instruction shall be offered by any community college at State expense or partial State expense to any captive or co-opted group of students, as defined by the State Board of Community Colleges, without prior approval of the State Board of Community Colleges. All course offerings approved for State prison inmates must be tied to clearly identified job skills, transition needs, or both. Approval by the State Board of Community Colleges shall be presumed to constitute approval of both the course and the group served by that institution. The State Board of Community Colleges may delegate to the President the power to make an initial approval, with final approval to be made by the State Board of Community Colleges. A course taught without such approval will not yield any full-time equivalent students, as defined by the State Board of Community Colleges." TUITION WAIVERS SECTION 8.4.(a) G.S. 115D-5(b) reads as rewritten: "(b) In order to make instruction as accessible as possible to all citizens, the teaching of curricular courses and of noncurricular extension courses at convenient locations away from institution campuses as well as on campuses is authorized and shall be encouraged. A pro rata portion of the established regular tuition rate charged a full-time student shall be charged a part-time student taking any curriculum course. In lieu of any tuition charge, the State Board of Community Colleges shall establish a uniform registration fee, or a schedule of uniform registration fees, to be charged students enrolling in extension courses for which instruction is financed primarily from State funds. The State Board of Community Colleges may provide by general and uniform regulations for waiver of tuition and registration fees for: (1) Persons not enrolled in elementary or secondary schools taking courses leading to a high school diploma or equivalent certificate; (2) Training courses for (i) volunteer firemen, (ii) local fire department personnel, (iii) volunteer rescue and lifesaving department personnel, (iv) local rescue and lifesaving department personnel, (v) Radio Emergency Associated Citizens Team (REACT) members when the REACT team is under contract to a county as an emergency response agency, (vi) municipal, county, or State law-enforcement officers, (vii) all full-time custodial employees of the Department of Correction, and (viii) employees of the Department's Division of Community Corrections and employees of the Department of Juvenile Justice and Delinquency Prevention required to be certified under Chapter 17C of the General Statutes and the rules of the Criminal Justice and Training Standards Commission; (3) Patients in State alcoholic rehabilitation centers; (4) Trainees enrolled in courses conducted under the Customized Training Program; (5) Clients of sheltered workshops; (6) Clients of adult developmental activity programs; (7) Students in Health and Human Services Development Programs; (8) Juveniles of any age committed to the Department of Juvenile Justice and Delinquency Prevention by a court of competent jurisdiction;

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Appendix B ­ Excerpts from S.L. 2010-31 Members of the North Carolina State Defense Militia as defined in G.S. 127A-5 and as administered under Article 5 of Chapter 127A of the General Statutes; (10) Elementary and secondary school employees enrolled in courses in first aid or cardiopulmonary resuscitation (CPR); (11) Up to six hours of credit instruction and one course of noncredit instruction per academic semester for senior citizens age 65 or older who are qualified as legal residents of North Carolina; (12) All curriculum courses taken by high school students at community colleges, including students in early college and middle college high school programs, in accordance with G.S. 115D-20(4) and this section; (13) Human resources development courses for any individual who (i) is unemployed; (ii) has received notification of a pending layoff; (iii) is working and is eligible for the Federal Earned Income Tax Credit (FEITC); or (iv) is working and earning wages at or below two hundred percent (200%) of the federal poverty guidelines; and (14) Prison inmates." SECTION 8.4.(b) G.S. 115D-39 is amended by adding a new subsection to read: "(a1) In addition, any federal law enforcement officer whose permanent duty station is within North Carolina shall also be eligible for the State resident community college tuition rate for law enforcement training courses." SECTION 8.4.(c) The Community Colleges System Office shall report to the 2011 General Assembly on the number and cost of courses taken by State law enforcement officers and of courses taken by local law enforcement officers. SECTION 8.4.(d) The Fiscal Research Division, in consultation with the Community Colleges System Office, shall make a comprehensive study of the currently authorized tuition waivers and shall report to the 2011 General Assembly on waivers that should be modified or abolished because they are not being used or for other reasons. COMMUNITY COLLEGE FINANCIAL AID LOANS SECTION 8.5.(a) The State Board of Community Colleges shall permanently realign its funding formula by increasing the amount allocated in the funding formula for students' services by fifty million dollars ($50,000,000) and by reducing the amount in the funding formula for curriculum and continuing education instruction by a commensurate amount. The revised formula shall ensure that community colleges have the adequate funds and resources necessary to administer and provide financial aid services to students. SECTION 8.5.(b) G.S. 115D-40.1 reads as rewritten: "§ 115D-40.1. Financial Assistance for Community College Students. (a) Need-Based Assistance Program. ­ It is the intent of the General Assembly that the Community College System make these financial aid funds available to the neediest students who are not eligible for other financial aid programs that fully cover the required educational expenses of these students. The State Board may use some of these funds as short-term loans to students who anticipate receiving the federal HOPE or Lifetime Learning Tax Credits. (b) Targeted Assistance. ­ Notwithstanding subsection (a) of this section, the State Board may allocate no more than ten percent (10%) of the funds appropriated for Financial Assistance for Community College Students to: (9)

93

Appendix B ­ Excerpts from S.L. 2010-31 Students who do not qualify for need-based assistance but who enroll in low-enrollment programs that prepare students for high-demand occupations, and (2) Students with disabilities who have been referred by the Division of Vocational Rehabilitation and are enrolled in a community college. (c) Administration of Program. ­ The State Board shall adopt rules and policies for the disbursement of the financial assistance provided in subsections (a) and (b) of this section. Degree, diploma, and certificate students must complete a Free Application for Federal Student Aid (FAFSA) to be eligible for financial assistance. The State Board may contract with the State Education Assistance Authority for administration of these financial assistance funds. These funds shall not revert at the end of each fiscal year but shall remain available until expended for need-based financial assistance. The interest earned on the funds provided in subsections (a) and (b) of this section may be used to support the costs of administering the Community College Grant Program. (d) Participation in Federal Loan Programs. ­ All community colleges shall participate in the William D. Ford Federal Direct Loan Program. The State Board shall ensure that at least one counselor is available at each college to inform students about federal programs and funds available to assist community college students, including, but not limited to, Pell Grants, HOPE and Lifetime Learning Tax Credits, and the William D. Ford Federal Direct Loan Program, and to actively encourage students to utilize these federal programs and funds." SECTION 8.5.(c) Subsection (b) of this section becomes effective July 1, 2011. The remainder of this section becomes effective July 1, 2010. TUITION REFUNDS SECTION 8.6.(a) A refund of community college tuition shall not be made except under the following circumstances: (1) A one hundred percent (100%) refund shall be made if the student officially withdraws prior to the first day of class of the academic semester or term as noted in the college calendar. Also, a student is eligible for a 100 percent refund if the class in which the student is officially registered is cancelled due to insufficient enrollment. (2) A seventy-five percent (75%) refund shall be made if the student officially withdraws from the class prior to or on the official ten percent (10%) point of the semester. (3) For classes beginning at times other than the first week (seven calendar days) of a semester a one hundred percent (100%) refund shall be made if the student officially withdraws from the class prior to the first class meeting. A seventy-five percent (75%) refund shall be made if the student officially withdraws from the class prior to or on the ten percent (10%) point of the class. (4) A one hundred percent (100%) refund shall be made if the student officially withdraws from a contact hour class prior to the first day of class of the academic semester or term or if the college cancels the class. A seventy-five percent (75%) shall be made if the student officially withdraws from a contact hour class on or before the tenth calendar day of the class. SECTION 8.6.(b) To comply with applicable federal regulations regarding refunds, federal regulations supersede the provisions of this section. (1)

94

Appendix B ­ Excerpts from S.L. 2010-31 SECTION 8.6.(c) Where a student, having paid the required tuition for a semester, dies during that semester (prior to or on the last day of examinations of the college the student was attending), all tuition and fees for that semester may be refunded to the estate of the deceased. SECTION 8.6.(d) Community colleges shall adopt local refund policies for classes for which they collect receipts which are not required to be deposited into the State Treasury account. MANAGEMENT FLEXIBILITY REDUCTION/COMMUNITY COLLEGES SECTION 8.7. Section 8.24 of S.L. 2009-451 reads as rewritten: "SECTION 8.24. The management flexibility reduction for the North Carolina Community College System shall be allocated by the State Board of Community Colleges in a manner that accounts for the unique needs of each college and provides for the equitable distribution of funds to the institutions consistent with G.S. 115D-5(a). Before taking reductions to instructional budgets, the community colleges shall consider reducing budgets for senior and middle management personnel and for programs that have both low-enrollment and low-postgraduate success. Colleges shall minimize the impact on student support services and on the retraining of dislocated workers. Colleges shall not reduce funding for the Small Business Centers. The community colleges shall also review their institutional funds to determine whether there are monies available in those funds that can be used to assist with operating costs before taking reductions in instructional budgets." CATAWBA VALLEY COMMUNITY COLLEGE MANUFACTURING SOLUTIONS CENTER SECTION 8.8.(a) G.S. 115D-67.2(b)(7) reads as rewritten: "(7) The Director of the Manufacturing Solutions Center at Catawba Valley Community College who shall serve ex officio as a nonvoting member." SECTION 8.8.(b) Notwithstanding any other provision of law, all fees collected by the Manufacturing Solutions Center of Catawba Valley Community College for the testing of products shall be retained by the Center and used for the operations of the Center. Purchases made by the Center using these funds are not subject to the provisions of Article 3 of Chapter 143 of the General Statutes. COMMUNITY COLLEGE EQUIPMENT FUNDS SECTION 8.9. Of the funds appropriated for the 2010-2011 fiscal year for community college equipment, up to two hundred fifty thousand dollars ($250,000) may be used for virtual 3-D equipment. BASIC SKILLS PLUS SECTION 8.10. Section 8.2 of S.L. 2009-451 reads as rewritten: "SECTION 8.2.(a) Notwithstanding any other provision of law, a local community college may use up to five percent (5%) of the Literacy Funds allocated to it by the State Board of Community Colleges to procure instructional technology for literacy labs. This technology may include computers, instructional software and software licenses, scanners for testing, and classroom projection equipment. The State Board may also authorize a local community college to use up to twenty percent (20%) of the State Literacy Funds allocated to it to provide employability skills, job-specific occupational and technical skills, and developmental education instruction to students concurrently enrolled in a community college course leading to a high school diploma or equivalent certificate.

95

Appendix B ­ Excerpts from S.L. 2010-31 "SECTION 8.2.(b) Notwithstanding any other provision of law, if a community college provides employability skills, job-specific occupational or technical skills, or developmental education instruction, to students concurrently enrolled in a community college course leading to a high school diploma or equivalent certificate, the college may waive the tuition and registration fees associated with this instruction." MULTICAMPUS FUNDS SECTION 8.11. G.S. 115D-5(o) reads as rewritten: "(o) The General Assembly finds that additional data are needed to determine the adequacy of multicampus and off-campus center funds; therefore, multicampus colleges and colleges with off-campus centers shall report annually, beginning September 1, 2005, to the Community Colleges System Office on all expenditures by line item of funds used to support their multicampuses and off-campus centers. The Community Colleges System Office shall report on these expenditures to the Education Appropriation Subcommittees of the House of Representatives and the Senate, the Office of State Budget and Management, and the Fiscal Research Division by December 1 of each year. The State Board of Community Colleges shall not approve any additional multicampus centers without identified recurring sources of funding."

PROVISIONS FROM OTHER PARTS OF S.L. 2009-451 EXTRAORDINARY MEASURES TO ADDRESS THE POTENTIAL LOSS OF FEDERAL FUNDS SECTION 2.3.(a) The General Assembly finds that: (1) Upon enactment of the State's 2010-2011 fiscal year budget, the Congress of the United States had considered but not authorized the extension of the enhanced federal Medical Assistance Percentage (FMAP), as initially authorized under the American Recovery and Reinvestment Act of 2009 (Public Law 111-5). (2) The modifications to the 2010-2011 budget set out in this act include the use of these anticipated federal receipts to offset General Fund appropriations to the Department of Health and Human Services. (3) The potential loss of these funds, which may total up to five hundred eighteen million eight hundred ninety-five thousand eight hundred forty-six dollars ($518,895,846), would create a substantial shortfall in the State's General Fund further straining the General Assembly's efforts to (i) increase economic development activities and job creation, (ii) maintain critical funds for education, and (iii) maintain health care and services for the State's most vulnerable citizens. SECTION 2.3.(b) If the Congress does not act to authorize all or part of these enhanced FMAP funds prior to January 1, 2011, the General Assembly directs the Director of the Budget, in conjunction with the State Treasurer, State Controller, and other State officials, to effectuate the following extraordinary budget adjustments to the extent necessary to backfill the funds, in priority order:

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Appendix B ­ Excerpts from S.L. 2010-31 (1) (2) (3) (4) (5) (6) (7) (8) Transfer from the Disaster Relief Reserve Fund established in S.L. 2005-1 $ (30,000,000) Transfer of unclaimed lottery prize money and excess receipts (35,000,000) Use of interest from all other funds (50,000,000) Use of balance in General Fund Availability (23,469,157) Reduction of Medicaid Provider rates (26,618,975) Use of funds from the Savings Reserve Fund (37,307,714) Reduction in Retirement System contributions (139,000,000) One percent (1%) Management Flexibility Reduction (177,500,000) $ (518,895,846)

TOTAL

SECTION 2.3.(c) If it is necessary to implement the budget adjustment set out in subdivision (b)(2) of this section: (1) Notwithstanding G.S. 18C-162(c)(1), the Office of State Budget and Management shall transfer fiscal year 2010-2011 unclaimed lottery prize money which would otherwise enhance prizes to the State Controller to be deposited in Nontax Budget Code 18878 (Intrastate Transfers) or the appropriate budget code as determined by the State Controller. (2) Notwithstanding G.S. 18C-164(f) and Section 5.1 of this act, the Office of State Budget and Management shall transfer fiscal year 2009-2010 lottery receipts in excess of four hundred nineteen million four hundred sixty-three thousand two hundred seventy-two dollars ($419,463,272) to the State Controller to be deposited in Nontax Budget Code 18878 (Intrastate Transfers) or the appropriate budget code as determined by the State Controller. (3) The Director of the Budget and the Lottery Commission shall hold in reserve the funds referenced in subdivisions (1) and (2) of this subsection to ensure proper implementation of this section. SECTION 2.3.(d) If it is necessary to implement the budget adjustment set out in subdivision (b)(3) of this section, notwithstanding any other provision of law, and unless it is inconsistent with a federal law, grant agreement, or other federal requirement, or with the terms of a gift or settlement agreement, the State Controller shall credit to the General Fund for the 2010-2011 fiscal year the sum of fifty million dollars ($50,000,000) from the 2010-2011 interest earnings from all governmental and proprietary funds, except for the Highway Fund and the Highway Trust Fund. SECTION 2.3.(e) If it is necessary to implement the budget adjustment set out in subdivision (b)(4) of this section, the Director of the Budget shall use the unappropriated balance in the General Fund to offset the reduction in federal fund availability, and such funds are hereby appropriated for this purpose. If it is not necessary to expend all of these funds in accordance with subdivision (b)(4) of this section, the State Controller shall transfer the remaining funds to the Savings Reserve Account. SECTION 2.3.(f) If it is necessary to implement the budget adjustment set out in subdivision (b)(5) of this section, notwithstanding Section 10.68A(a)(8) of S.L. 2009-451, as amended by Section 5A of S.L. 2009-575 and Section 10.35 of this act, the Department of Health and Human Services shall reduce reimbursement rates paid to service providers in the Medicaid

97

Appendix B ­ Excerpts from S.L. 2010-31 program to generate savings of twenty-six million six hundred eighteen thousand nine hundred seventy-five dollars ($26,618,975). The rate reduction authorized in this section shall not apply to: federally qualified health clinics, rural health centers, State institutions, hospital inpatient, pharmacies, and the noninflationary components of the case-mix reimbursement system for nursing facilities. SECTION 2.3.(g) If it is necessary to implement the budget adjustment set out in subdivision (b)(6) of this section, the Office of State Budget and Management shall use up to thirty-seven million three hundred seven thousand seven hundred fourteen dollars ($37,307,714) from the Savings Reserve Fund to offset the reduction in federal fund availability, and such funds are hereby appropriated for this purpose. SECTION 2.3.(h) Section 6(c) of S.L. 2009-16, as amended by Section 26.20(b) of S.L. 2009-451, reads as rewritten: "SECTION 6.(c) Effective July 1, 2010, the State's employer contribution rates budgeted for reserves, retirement and related benefits as percentage of covered salaries for the 2010-2011 fiscal year are: (i) nine and fifteen hundredths percent (9.15%) ­ Teachers and State Employees; plus one and thirty-six hundredths percent (1.36%) to a reserve in the Office of State Budget and Management to be transferred to the Retirement System only if not needed as an adjustment as required by Section 2.3(b)(7) of Senate Bill 897, 2009 Regular Session; (ii) fourteen and fifteen hundredths percent (14.15%) ­ State Law Enforcement Officers; plus one and thirty-six hundredths percent (1.36%) to a reserve in the Office of State Budget and Management to be transferred to the Retirement System only if not needed as an adjustment as required by Section 2.3(b)(7) of Senate Bill 897, 2009 Regular Session; (iii) twelve and twenty-six hundredths percent (12.26%) ­ University Employees' Optional Retirement System; (iv) twelve and twenty-six hundredths percent (12.26%) ­ Community College Optional Retirement Program; (v) twenty and one hundredths percent (20.01%) ­ Consolidated Judicial Retirement System; and (vi) four and ninety hundredths percent (4.90%) ­ Legislative Retirement System. Each of the foregoing contribution rates includes four and ninety hundredths percent (4.90%) for hospital and medical benefits. The rate for Teachers and State Employees, State Law Enforcement Officers, Community College Optional Retirement Program, and for the University Employees' Optional Retirement Program includes fifty-two hundredths percent (0.52%) for the Disability Income Plan. The rates for Teachers and State Employees and State Law Enforcement Officers include sixteen-hundredths percent (0.16%) for the Death Benefits Plan. The rate for State Law Enforcement Officers includes five percent (5%) for Supplemental Retirement Income." SECTION 2.3.(i) If it is necessary to implement the budget adjustment set out in subdivision (b)(8) of this section, the Director of the Budget shall implement a one percent (1%) annualized management flexibility reduction. Notwithstanding any other provision of law, and unless it is inconsistent with a federal law, grant agreement, or other federal requirement, or with the terms of a gift or settlement agreement, the Director of the Budget may use funds appropriated for any purpose or program and from any governmental or proprietary funds for this purpose. Effective July 1, 2010, agency heads shall immediately take steps in preparation for a potential one percent (1%) reduction. SECTION 2.3.(j) If on or after January 1, 2011, Congress passes legislation that restores any portion of the enhanced FMAP funding, these funds shall be used to reverse any of the actions taken pursuant to this section in reverse of the priority order in which the adjustments were made in subsection (b) of this section.

98

Appendix B ­ Excerpts from S.L. 2010-31 COOPERATIVE AND INNOVATIVE HIGH SCHOOLS SECTION 7.21.(a) G.S. 115C-238.50(e) reads as rewritten: "(e) Cooperative innovative high school programs may include the creation of a school within a school, a technical high school, a high school or technical center located on the campus of a college or university, or a five-year career academy operating as part of an existing high school." SECTION 7.21.(b) G.S. 115C-238.54 reads as rewritten: "§ 115C-238.54. Funds for programs. (a) The Department of Public Instruction shall assign a school code for each program that is approved under this Part, with the exception of a five-year career academy operating as part of an existing high school, which shall continue to use the existing school code. All positions and other State and federal allotments that are generated for this program shall be assigned to that school code. Notwithstanding G.S. 115C-105.25, once funds are assigned to that school code, the local board of education may use these funds for the program and may transfer these funds between funding allotment categories. (a1) A five-year career academy operating as part of an existing high school shall maintain records to identify and evaluate students enrolled in the five-year career academy program distinct from the general school population. ...." SECTION 7.21.(c) G.S. 115C-238.50A(3) reads as rewritten: "(3) Governing board. ­ The State Board of Education, the State Board of Community Colleges, the Board of Governors of The University of North Carolina, or the Board of the North Carolina Independent Colleges and Universities." SECTION 7.21.(d) The Department of Public Instruction shall study the fiscal impacts of the Cooperative and Innovative High School Act (Part 9 of Article 16 of Chapter 115C of the General Statutes). The Department shall report the results of its study to the Joint Legislative Education Oversight Committee and the Fiscal Research Division by March 15, 2011. The report shall include historical data on the number of new schools created each fiscal year attributable to the Cooperative and Innovative High School Act (Part 9 of Article 16 of Chapter 115C of the General Statutes). SECTION 7.21.(e) The State Board of Education shall not approve any additional schools under the Cooperative and Innovative High School Act (Part 9 of Article 16 of Chapter 115C of the General Statutes) after July 1, 2010, unless the school has received an explicit appropriation from the General Assembly. SECTION 7.21.(f) Subsections (a) through (c) of this section are effective when this act becomes law and apply beginning with the 2010-2011 school year. HIGHER EDUCATION COURSES FOR HIGH SCHOOL STUDENTS SECTION 7.24.(a) It is the intent of the General Assembly to implement a funding formula in the 2011-2012 school year that will provide money to local school administrative units for the purpose of paying the tuition of high school students taking higher education courses for which tuition is required. SECTION 7.24.(b) It is the intent of the General Assembly to eliminate the tuition waiver for courses taken by high school students at community colleges set forth in G.S. 115D-5(b) effective July 1, 2011, except for the waiver that applies to students in cooperative innovative high school programs established pursuant to Part 9 of Article 16 of Chapter 115C of the General

99

Appendix B ­ Excerpts from S.L. 2010-31 Statutes. Tuition shall continue to be waived for students in cooperative innovative high school programs. SECTION 7.24.(c) For the 2011-2012 school year, the North Carolina Community College System General Fund appropriations shall be reduced by an amount calculated by multiplying the number of FTE high school students for whom tuition is required by the per capita budgeted receipts for community college curriculum instruction. This amount of funds shall be transferred to the State Board of Education for distribution to the local school administrative units. SECTION 7.24.(d) For the 2011-2012 school year, the General Fund appropriation for Learn and Earn Online shall be available to the State Board of Education for distribution to the local school administrative units. SECTION 7.24.(e) For the 2011-2012 school year, the State Public School Fund shall be reduced by an amount calculated by (i) subtracting the per capita budgeted receipts for community college curriculum instruction from the in-State tuition amount per FTE and (ii) multiplying the result by the number of FTE high school students for whom tuition is required. This amount of funds shall be available to the State Board of Education for distribution to the local school administrative units. The State Board of Education shall ensure that appropriate and reliable data is collected in order to implement this section. SECTION 7.24.(f) The amounts transferred to the State Board of Education under subsections (c), (d), and (e) of this section shall be distributed to local school administrative units based on the pro rata share of each local school administrative unit's number of FTE high school students for whom tuition is required. SECTION 7.24.(g) The amounts allocated to local school administrative units under this section shall not be transferred to other uses and shall only be available for paying the tuition of high school students taking higher education courses for which tuition is required. SECTION 7.24.(h) Beginning with the 2010-2011 school year, courses provided in (i) general education, except for mathematics, science, and technology, (ii) physical education, and (iii) college success skills courses offered to high school students shall no longer generate State funding through budget FTE or receive reimbursements from the Department of Public Instruction. If an institute of higher education offers these courses to high school students, the colleges may charge an amount sufficient to cover the costs of the courses. This subsection does not apply to courses provided to students of Early and Middle College High Schools, as established under Part 9 of Article 16 of Chapter 115C of the General Statutes.18 STUDY FINANCIAL AID CONSOLIDATION SECTION 9.2.(a) The State Education Assistance Authority, The University of North Carolina, the North Carolina Community College System, and the Fiscal Research Division of the General Assembly shall establish a work group to study jointly the simplification and consolidation of State-funded financial aid for students. North Carolina Independent Colleges and Universities, Inc., shall also be included as a joint member of the work group if it chooses to participate in the study. The State Education Assistance Authority shall be the lead agency for the work group and study.

18

Note that language for Section 7.24(h) of S.L. 2010-31 is presented above as amended by S.L. 3.1 of S.L. 2010-123.

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Appendix B ­ Excerpts from S.L. 2010-31 SECTION 9.2.(b) The purpose of the study is to develop recommendations and options for simplifying and consolidating the delivery of, administration of, and access to State-funded financial aid for students. In conducting the study, the work group shall consider the State's current student financial aid programs and how to consolidate those programs into two categories of State-funded student aid programs: one program that consolidates the State's major need-based programs and one program that consolidates many of the State's scholarship and forgivable loan programs currently available to students who plan to earn degrees and pursue careers in certain professional areas. More specifically the work group shall do the following: (1) Design a unified need-based financial aid program that combines at a minimum the following three programs into a single need-based financial aid program: The University of North Carolina Need-Based Grant program, the North Carolina Community College Grant program, and the North Carolina Education Lottery Scholarship program established under Article 35A of Chapter 115C of the General Statutes. Currently each of these programs has its own award criteria, formulas, target populations, and funding sources (Escheat Fund, General Fund, and Lottery Funds). As part of its study, the work group shall determine what the appropriate parameters may be for such a unified program by using models that take into account income, expected family contribution, college expenses, type of college attended, and any other factors the work group deems relevant. In designing the program, the work group shall address the issue of proportionality of funding and shall take into account all of the following in its consideration of that issue: the proportionality of funding that currently exists among The University of North Carolina, the North Carolina Community College System, and the North Carolina private colleges and universities; funding sources; accounting for student enrollment change; monetary differences between certain categories of students and whether based on those monetary differences student financial aid should be based on cost of attendance or tuition and fees. The work group may also consider whether it is appropriate to redefine "need" for purposes of student financial aid and to develop a common formula for the distribution of financial aid and the consequences of any proposed modifications if the decision is made to redefine "need" and develop a common formula. The program shall be designed to: (i) distribute funds in a manner that is consistent with legislative intent, but more easily understood by potential students, and (ii) retain the ability to track lottery funds. (2) Design a "forgivable loans for service" program that combines at a minimum the following existing programs into one consolidated program that focuses on loans for services: the Nurse Educators of Tomorrow; Nurse Scholars Program; Nurse Education Scholarship Loan Program; Board of Governors Medical Scholarship Loans; Board of Governors Dental Scholarship Loans; Health, Science and Mathematics Student Loan Program; Prospective Teacher Scholarship Loan Program; and the Teacher Assistant Scholarship Program. This single consolidated program shall initially focus on two high area needs: teaching and health professions (including nursing, allied health and medical, dental, and pharmacy careers). In designing this program, the work group may consider the current allocation of funds among the various scholarship and forgivable loan programs, whether it would be appropriate to allow the reallocation and award of

101

Appendix B ­ Excerpts from S.L. 2010-31 funds not distributed as forgivable loans in a specific service area to be awarded as forgivable loans in a different service area, and, if so, what procedure and methodology would be appropriate to trigger the reallocation of funds and provide for the distribution of those funds as awards in a different service area. SECTION 9.2.(c) In addition to the considerations set out in subsection (b) of this section, the work group shall also consider all of the following: (1) The time period required to phase out student loans from any of the programs affected by the program consolidation. (2) How federal funding may affect student financial aid services. (3) How to deal with current recipients of funds from programs affected by the consolidation. (4) How to deal with recipients who are paying back loans made through programs affected by the consolidation. (5) Whether the State Education Assistance Authority should be authorized to extend the repayment period for forgivable loans in hardship circumstances when a good faith effort has been made to repay the loan in a timely manner, and if so, what the appropriate procedure may be for making that determination and extending the repayment period. (6) Whether there are, and if so how to address, any significant abuses of the financial aid system, particularly by persons who intentionally apply for and receive financial aid but who intend to drop out of school after securing financial aid funds. (7) Any other issues the work group deems relevant to this study. SECTION 9.2.(d) The work group shall present its proposed program designs and report its findings and recommendations to the Joint Select Committee on State Funded Student Financial Aid by October 1, 2010. In its report the work group shall also identify options that may vary from the proposed program designs but that are alternatives that the work group determines may also be workable and consistent with the legislative intent of this study. The work group shall also include in the report any legislative changes that may be needed to implement the program designs and work group recommendations. AMEND TUITION WAIVER SECTION 9.26. G.S. 115B-2(a) reads as rewritten: "(a) The constituent institutions of The University of North Carolina and the community colleges as defined in G.S. 115D-2(2) shall permit the following persons to attend classes for credit or noncredit purposes without the required payment of tuition: (1) Repealed by Session Laws 2009-451, s. 8.11(a), effective July 1, 2009. (2) Any person who is the survivor of a law enforcement officer, firefighter, volunteer firefighter, or rescue squad worker killed as a direct result of a traumatic injury sustained in the line of duty. (3) The spouse of a law enforcement officer, firefighter, volunteer firefighter, or rescue squad worker who is permanently and totally disabled as a direct result of a traumatic injury sustained in the line of duty. (4) Any child, if the child is at least 17 years old but not yet 24 years old, whose parent is a law enforcement officer, firefighter, volunteer firefighter, or rescue squad worker who is permanently and totally disabled as a direct result of a traumatic injury sustained in the line of duty. However, a child's eligibility for a

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Appendix B ­ Excerpts from S.L. 2010-31 waiver of tuition under this Chapter shall not exceed: (i) 54 months, if the child is seeking a baccalaureate degree, or (ii) if the child is not seeking a baccalaureate degree, the number of months required to complete the educational program to which the child is applying. Any child, if the child (i) is at least 17 years old but not yet 24 years old, (ii) is a ward of North Carolina or was a ward of the State at the time the child reached the age of 18, (iii) is a resident of the State; and (iv) is eligible for services under the Chaffee Education and Training Vouchers Program; but the waiver shall only be to the extent that there is any tuition still payable after receipt of other financial aid received by the student."

(5)

SPECIAL INDEBTEDNESS PROJECTS SECTION 30.7.(a) The State, with the prior approval of the State Treasurer and the Council of State, as provided in Article 9 of Chapter 142 of the General Statutes, is authorized to issue or incur special indebtedness in order to provide funds to the State to be used, together with other available funds, to pay the capital facility costs of the projects described in this subsection. In accordance with G.S. 142-83, this subsection authorizes the issuance or incurrence of special indebtedness: (1) In the maximum aggregate principal amount of one hundred twenty million dollars ($120,000,000) to finance the capital facility costs of repairing and renovating State facilities and related infrastructure, to be allocated in accordance with Section 30.4 of this act. (2) In the maximum aggregate principal amount of fifty-five million dollars ($55,000,000) to finance the capital facility costs of acquiring equipment and completing related capital improvements for use by The University of North Carolina System and the North Carolina Community College System, to be allocated in accordance with Section 30.11 of this act. SECTION 30.7.(b) This section is effective when it becomes law.

103

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104

Appendix C: Revised Purpose and Vocational Codes

North Carolina Community College System Office FY 2010-11 Purpose Codes

110 120 130 140 150 210 220 230 240 280 281 310 311 320 321 322 323 324 331 350 351 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 380 381 410 421 422 423 430 440 450 510 530 581

Executive Management Financial Services General Admin Information Systems (Admin) DO NOT USE Certificate Associate Degree Diploma Transitional ARRA 12in6 CU Instruction ARRA 12in6 CU Support Occupational Occupational Extention - Support Basic Skills Plus (New) ABE/ESL Adult High School Compensatory Ed General Ed Dev - GED DO NOT USE DO NOT USE DO NOT USE Basic Skills Project Skill-Up (New) Local Capacity Building 10%/5% Regional Capacity Building 8% Customized Training Projects DO NOT USE Small Business Business and Industry Support DO NOT USE DO NOT USE BioNetwork Special Projects DO NOT USE BioNetwork Centers FTCC - Military Business Center Kannapolis - Rowan DO NOT USE Literacy Special Projects ARRA 12in6 Instruction ARRA 12in6 Support Library Curriculum Admin Continuing Education Admin DO NOT USE Information Systems (Academic) Tech Prep HB275 Technology Student Services Child Care - State Appropriation ARRA 12in6 Student Services

610/620 920 921 922 923 930 940

Plant Operation & Maintenance (690) Equipment Equipment Reserve HB275 Equipment Equipment - Literacy Instructional Resources - Books Categorical Equipment (New)

105

Amended to include Project Skill-Up - September 16, 2010

Appendix C: Revised Purpose and Vocational Codes

North Carolina Community College System Office FY 2010-11 Vocational Codes

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54

ACA. INTEG/POST 2ND. ALL ASPECTS USE TECH. & PROF DEV ADMINISTRATION MOD.& EXP-UPGRADING CURR. SERVICES & ACTIVITIES EQUIPMENT GUIDANCE & COUNSELING NON-TRAD.TRNG.& EMPL. OTHER EXPENSE ACA INTEG & POST 2ND ALL ASPECTS USE TECH & PROF DEV ADMINISTRATION MOD.& EXP-UPGRADING CURR. SERVICES & ACTIVITIES EQUIPMENT GUIDANCE & COUNSELING NON-TRAD.TRNG.& EMPL. OTHER EXPENSE PP - CURRENT VLC CURR - ST APPROPRIATION VLC EQ - ST APPROPRIATION PP - CAPITAL VACANT VACANT VACANT CVCC-HICKORY MET CURR VOED TEACHING EXCELLENCE CVCC-HICKORY METRO EQ. FTCC-MILITARY BUSINESS EQ LOW WEALTH CURRENT LOW WEALTH EQUIPMENT BIO EQ CTRS APPROP. BIO EQ.-STATE APPRO. LCC - MOTORCYCLE SAFETY CURR LCC - MOTORCYCLE SAFETY EQ FTCC - BOTANICAL LAB CURR FTCC - BOTANICAL LAB EQ VACANT PERF.FUND. BONUSES PERF. FUND-STARTUP PERF. FUND.-EQUIP. ENROLL. RESERVE OP. ENROLL. RESERVE EQ.

55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99

DO NOT USE W/ SCH A VOED PROF DEVELOPMENT HEALTH SCIENCES CURR HEALTH SCIENCES EQ KANNAPOLIS-ROWAN-EQ. VACANT VACANT VACANT VACANT VACANT VACANT VACANT GASTON-TEXTILE-OP. GASTON-TEXTILE-EQUIP READY FOR COLLEGE CRC PERF INCENTIVE GRANT HICOST CURRENT BASIC SKILLS GRANTS (POST & MINI) HICOST EQ & BOOKS ABE CASAS ABE IDEAL/PATH/FAMILY LITERACY ABE ENGLISH LITERACY/CIVICS HAYWOOD HiTECH CURR HAYWOOD HiTECH EQ & BOOKS GATE MISC NON-FORM ALLOT PRISON - DESIGNATED PRISON - DISCRETIONARY VACANT VACANT VACANT VACANT CVCC - CEMS CURR PROJECT SKILL-UP EQUIPMENT CVCC - CEMS EQ TECH ED - CURRENT TECH ED - CAPITAL CAMPUS SECURITY CUR CAMPUS SECURITY CAP MINORITY MALE MENTORING VACANT VACANT NON-CATEG FORM EXPEN VACANT VACANT

106 Amended to include Project Skill-Up - September 16, 2010

Appendix D: FY 2010-11 Key Formula Values

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM KEY FORMULA VALUES FY 2010-11 Curriculum Values: Ratios <= 500 > 500 16.5383 22.0120 $51,798 <= 500 > 500 $4,173.06 $3,182.86 $178.50

Unit Value Equivalent Value

Other Cost

Non-Curriculum Values: Ratios <= 500 > 500 16.5383 22.0120 $42,823 <= 500 > 500 $2,964.06 $2,273.31 $178.50

Unit Value Equivalent Value

Other Cost

Institutional Support: Base Allotment . Enrollment Allotment FICA Retirement Health Ins Position Values: Senior Administrator Supervisor of Programs General Institution Student Services Technical/Paraprofessional Clerical $84,538 $72,836 $54,667 $54,667 $36,900 $30,525 7.65% 10.51% $4,929 $2,056,736 $1,663 per FTE above 750

107

Revised as Amended by State Board ­ Sept. 16, 2010

Appendix E: FY 2010-11 Per Capita Rates

NORTH CAROLINA COMMUNITY COLLEGE SYSTEM PER CAPITA COSTS FOR BUDGET FTE FY 2010-11

WITH the base Curriculum Total Requirements Student Receipts Appropriation $ $ $ 5,483.34 1,533.80 3,949.54 $ $ $

WITHOUT the base 4,994.15 1,533.80 3,460.35

Continuing Education Total Requirements Student Receipts Appropriation

$ $ $

4,962.80 683.98 4,278.82

$ $ $

4,473.61 683.98 3,789.63

Basic Skills Total Requirements Student Receipts Appropriation

$ $ $

6,357.31 710.99 5,646.33

$ $ $

5,868.12 710.99 5,157.14

108

Revised as Amended by State Board ­ Sept. 16, 2010

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