NC H1031

Removes the statutory authority for local boards of education to file lawsuits challenging the sufficiency of county commission funding allocations to the local current expense fund.

Establishes two automatic funding formulas (subsections b1 and b2) based on prior year expenditures, average daily membership, and Employment Cost Index adjustments to determine appropriations when mediation fails to resolve disputes.

Preserves the right of local boards of education to file legal actions challenging capital outlay fund appropriations, with disputes resolved through superior court proceedings rather than automatic formulas.

Requires a working group convened by the Local Government Commission and UNC School of Government to develop statutory parameters for school fund balances and alternative dispute resolution mechanisms for capital outlay disputes, with recommendations due by March 30, 2019.

Applies to budget ordinances adopted on or after the bill's effective date.