NC H866

Authorizes issuance of $1.9 billion in general obligation bonds for public school capital projects, subject to voter approval in November 2018.

Distributes bond proceeds to counties and local school administrative units based on average daily membership (ADM), with allocations for low-wealth counties, small counties, and ADM growth totaling $760 million, $570 million, $285 million, and $285 million respectively.

Requires counties to match bond proceeds at a rate of 3 cents per dollar multiplied by the county's ability-to-pay rank; unmatched proceeds by January 1, 2024, are reallocated to counties that meet the matching requirement.

Principal amounts issued in any 12-month period cannot exceed $591 million, and bonds mature within 40 years with the State Treasurer authorized to determine interest rates, terms, and sale conditions.

Requires school administrative units to submit project plans to the State Board of Education and submit quarterly reports to the Department of Public Instruction detailing project costs, bond expenditures, and completion percentages.