When a NC public charter school enrolls students from a school district that levies a supplemental school tax, does the charter school get a per-pupil share of that supplemental tax revenue or only state funding?

Plain-English summary

The surviving portion of this opinion addresses whether supplemental school taxes are included in the local current expense money transferred to charter schools. The stored original starts with an editorial caption and a list of funds, omitting the opening request and identifying context. Its conclusion is direct: all funds in a local board's current expense fund are subject to the per-pupil transfer requirement in G.S. 115C-238.29H(b). Source

The opinion quotes G.S. 115C-426(e), which includes "supplemental taxes levied by or on behalf of the local school administrative unit" in the local current expense fund. It treats the Charter School Act's term "local current expense appropriation" and the budget statute's "local current expense fund" as synonymous for this purpose. G.S. 115C-430's reference to "appropriations funded by supplemental taxes" reinforces that reading. Source

The opinion says transferring all budgeted current expense monies pro rata puts charter-school students on equal footing with students in traditional public schools. It does not analyze voter-approved tax wording, taxes dedicated to a particular program, or a later dispute over exclusions. Source

Currency note

This is a 1998 opinion with a missing opening in the stored original. Check the complete opinion and current funding statutes for a present transfer calculation.

Background and statutory framework

The surviving text identifies G.S. 115C-426's school budget funds and quotes the local current expense fund definition, including supplemental taxes. It then applies G.S. 115C-238.29H(b) to the whole fund on a per-pupil basis. Source

Common questions

Did the AG include supplemental school taxes in the charter share?

Yes. The opinion says the statutory definition of the local current expense fund includes supplemental taxes and concludes that all money in that fund is subject to the per-pupil transfer rule. Source

Does the opinion decide whether a tax dedicated to a particular program is excluded?

No. The surviving text gives a rule for money in the current expense fund but does not discuss special voter language or a program-specific supplemental levy. Source

Why did "appropriation" and "fund" not change the answer?

The AG said the distinction was "one without a difference" and read the two terms as synonymous in the statutory funding scheme. Source

Source

• Landing page: https://ncdoj.gov/opinions/charter-schools-entitlement-to-supplemental-tax-funds/

Original opinion text

[Caption and salutation as scraped from the NCDOJ landing page.]

(1) The State Public School Fund.
(2) The local current expense fund.
(3) The capital outlay fund,

The statute also authorizes funds for "trust funds, federal grants restricted as to use, and special programs." G.S. 115C-426(c).

The "State Public School Fund" includes appropriations from the State Board of Education for current operating expenses. G.S. 115C-426(d). The "local current expense fund" includes the following:

. . . revenues accruing to the local school administrative unit by virtue of Article IX, Sec. 7 of the Constitution [fines and forfeitures], monies made available to the local school administrative unit by the board of county commissioners, [and] supplemental taxes levied by or on behalf of the local school administrative unit pursuant to a local act or G.S. 115C-501 to 511. . . .

G.S. 115C-426(e) (emphasis added).

The Charter School Act uses the term "local current expense appropriation" and that term is almost identical to the term "local current expense fund" which is specifically defined to include supplemental taxes. While the Charter School Law specifies "appropriations" and the budget provisions use the term "fund," the distinction is one without a difference. G.S. 115C-430 specifically refers to county "appropriations funded by supplemental taxes." Thus we do not believe the legislature intended to differentiate between the term "appropriations" and the term "fund," but rather intended the two terms to be synonymous and for the well-established definition of "local current expense fund" to apply to the local appropriations to charter schools.

We think this interpretation is consistent with legislative intent. It is clear from the funding provisions that the same State per pupil allocations would flow to the charter schools as to traditional public schools. In our opinion, it is consistent for the local school system to transfer all monies it has budgeted in the current expense fund pro rata to the charter school. This puts public charter school students on an equal footing with students attending the traditional public schools. See G.S. 115C-238.29E(a) (A charter school . . . shall be a public school within the local school administrative unit in which it is located.)

In conclusion, all funds contained in the local school board's current expense fund are subject to G.S. 115C-238.29H(b) and must be transferred to the charter school on a per pupil basis as required by that subsection. I hope this response adequately addresses your inquiry. Should you have further questions, please do not hesitate to contact us.

signed by:

Thomas J. Ziko
Special Deputy Attorney General

Assistant Attorney General