NC H1040

Reduces school bus operations budget by 1% annually from FY 2014-2015 through FY 2018-2019 to reach a 5% buffer, and limits spare school bus inventory to 10% of total statewide inventory.

Requires Department of Public Instruction to establish term contracts for school bus replacement parts exceeding $100,000 in annual statewide sales, with local boards required to purchase from these contracts unless noncertified sources offer lower prices for equivalent quality.

Eliminates six positions in the Textbook Services program (2 Accounting Technicians, 1 Processing Assistant, and 3 Stock Clerks) and requires joint plan with Department of Administration to reallocate unneeded warehouse space.

Mandates development of model loss prevention and return-to-work programs to reduce workers' compensation costs, with local boards required to implement State Board-approved models.

Establishes performance management system requiring State Board to adopt strategic goals for administrative programs and Department to report annually to Joint Legislative Education Oversight Committee on program performance and achievement of objectives, with initial report due December 31, 2014.