House Bill 239 would change North Carolina’s funding formula for children with disabilities in public school units. Under current law, state funds are allocated on a per-child basis up to the lesser of all identified children with disabilities or 13% of a unit’s average daily membership. The bill would revise that cap so the 13% calculation also includes, for each local school administrative unit, students who received Opportunity Scholarship grants and reside within that unit’s boundaries, using data supplied annually by the State Education Assistance Authority.
The bill also appropriates $25 million in recurring General Fund money to the Department of Public Instruction for the 2025-26 fiscal year to support children with disabilities funding. It takes effect July 1, 2025, and applies to funding allocations beginning with that fiscal year. In practical terms, the measure would alter how the state calculates special education funding eligibility and could increase allocations to some public school units by expanding the enrollment base used in the formula.
HB239 would amend G.S. 115C-111.05, the statute governing state funding for children with disabilities, by changing the formula used to determine the maximum number of students for whom a local school unit may receive funding. It also creates a new annual reporting obligation for the State Education Assistance Authority to provide resident scholarship-grant counts to DPI by March 15 each year. The bill further adds a recurring appropriation from the General Fund to DPI, increasing state spending for special education-related funding allocations beginning in fiscal year 2025-26.
Based on the bill text and available legislative history, the measure appears to be presented as a funding adjustment rather than a controversial policy overhaul. There are no recorded committee transcripts or floor votes in the provided materials, so there is no direct evidence of debate, support, or opposition from the legislative record included here. The bill’s sponsors and its referral to Appropriations suggest it is being treated as a fiscal and formula-related education measure.
The main point of potential contention is the decision to include students receiving scholarship grants in the funding formula for local school units, which may be viewed as affecting how special education dollars are distributed between public schools and the broader school-choice environment. Supporters may see this as a more accurate way to account for resident students and ensure adequate funding, while critics could argue it complicates the formula or shifts resources in ways that do not directly track public-school enrollment. Another possible issue is the recurring $25 million appropriation, which has budget implications for the General Fund.