NC H490

Directs the State Board of Community Colleges to revise its funding formula beginning in fiscal year 2025-2026, allocating funds based on FTE enrollment weighted by workforce sector, with consideration of salary data and labor market demand

Appropriates $93,019,556 in recurring funds from the General Fund to implement the revised funding formula for community colleges

Establishes the Enrollment Increase Reserve with $6,000,000 in recurring funds to provide additional funding to colleges experiencing enrollment increases exceeding 5% of budgeted levels or more than 325 total FTE students

Permits community colleges to implement a local tuition and fee surcharge of up to 10% of statewide rates for curriculum and workforce continuing education courses, with funds restricted to instructional purposes only

Requires the State Board to review and revise workforce sector designations by July 15, 2028, and every three years thereafter, with annual reporting on surcharge expenditures beginning February 15, 2026