NC H363

Establishes supplemental funding allotments for eligible small county school systems based on average daily membership (ADM) ranging from $1,470,000 to $1,820,000 for the 2021-2023 fiscal biennium.

Requires school units becoming ineligible for funding to phase out over five years with equal annual reductions, capped at 20% reduction per year from the prior year funding amount.

Protects schools from ineligibility if either projected or prior year average daily membership for the first two months would qualify them under the established schedule.

Prohibits counties from using supplemental funds to supplant local current expense funds and requires the State Board of Education to withhold funding from counties that do so, based on specific criteria.

Appropriates $1,900,000 in recurring General Fund monies to the Department of Public Instruction to support the supplemental funding program, effective July 1, 2021.