NC S396

Appropriates funds annually from the General Fund to the State Public School Fund beginning in fiscal year 2013-2014 to repay a court judgment owed to local school administrative units.

Annual appropriation amount equals the lesser of: (i) 10% of unreserved General Fund balance from prior fiscal year, (ii) $100,000,000, or (iii) the actual amount owed plus interest per the August 8, 2008 court judgment in N.C. School Boards Association v. Moore ($747,883,074).

Funds derive from civil penalties, forfeitures, and fines collected by state agencies (Department of Revenue tax penalties, Department of Transportation weight violations, university parking fines, unauthorized substances tax payments) that the North Carolina Supreme Court ruled belonged to schools under the state constitution.

State Board of Education shall distribute funds to local school administrative units on a per-pupil basis exclusively for maintaining free public schools.

Funds shall supplement, not replace, other public school appropriations made by the General Assembly.