NC H1862

Establishes a Funding Flexibility Pilot Program for Lee County schools during the 2010-2011 and 2011-2012 fiscal years, allowing the school system to spend state funds without categorical restrictions.

Permits Lee County schools to allocate categorical funding across any lawful purpose while maintaining existing employee salary schedules and complying with federal law and grant requirements.

Requires annual evaluation based on composite test scores (weighted for demographics), No Child Left Behind progress, high school graduation rates, non-instructional spending percentages, audit exceptions, and teacher turnover.

Allows the pilot program to continue for 2012-2013 and 2013-2014 fiscal years if academic performance increases by the end of 2011-2012 school year.

Takes effect July 1, 2010.