Part I

Details the monthly teacher salary schedule for the 2017-20 fiscal years to licensed personnel of public schools who are classified as teachers based on years of experience, ranging from: $4,046 for 0 years of experience to $5,896 for 25 or more years of experience for the 2017-18 Salary Schedule; $4,592 for 0 years of experience to $6,691 for 25 or more years of experience for the 2018-19 Salary Schedules; and $5,138 for 0 years of experience to $7,487 for 25 or more years of experience for the 2019-20 Salary Schedule. Also details salary supplements for certain teachers paid on these salary schedules as specified. 

Makes the first step of the salary schedule for school psychologists, school speech pathologists licensed as such at the master's degree level or higher, and school audiologists licensed as audio pathologists at the master's degree level or higher equivalent to Step 6 of the "A" Teacher salary schedule. Provides these employees a salary supplement each month of 10% of their monthly salary. Provides that these employees are eligible to receive salary supplements equivalent to those of teachers for academic preparation at the six-year or doctoral degree level.

Makes the 26th step of the salary schedule for school psychologists, school speech pathologists, and school audiologists meeting the academic preparation levels and licensing requirements as described in this act 7.5% higher than the salary received by these same employees on the 25th step of the salary schedule.

Provides that beginning with the 2014-15 fiscal year, in lieu of providing annual longevity payments to teachers paid on the monthly teacher salary schedule, the amounts of those longevity payments are included in the monthly amounts under the teacher salary schedule. Details the rates for annual longevity payments for teachers, to be paid in a lump sum once a year, ranging from 1.5% of base salary for 10 to 14 years of State service up to 4.5% of base salary for 25 or more years of State service. 

Defines teacher to include instructional support personnel for purposes of the Section.

Appropriates the following from the General Fund to the Department of Public Instruction (DPI) to implement the above provisions: $900,723,558 in recurring funds for the 2017-18 fiscal year; $1,714,156,689 in recurring funds for the 2018-19 fiscal year; and $2,536,035,664 in recurring funds for the 2019-20 fiscal year.

Effective July 1, 2017.

Part II

Details the monthly salary schedule for principals and assistant principals for the 2017-18 fiscal year based on years of experience, ranging from  $5,393 for 0-9 years of experience to $8,151 for 36 years of experience for assistant principals, and $5,963 to $11,640 for principals depending on classifications and years of experience. Details the classification of assistant principals and principals on the salary schedule, except for principals in alternative schools and in cooperative innovative high schools, based on the number of teachers supervised, with Principal I classification being fewer than 11 teachers supervised, and Principal VIII classification being more than 100 teachers supervised. Provides that the number of teachers supervised includes teachers and assistant principals paid from State funds only and does not include teachers or assistant principals paid from non-State funds or the principal or teacher assistants. Establishes that the beginning classification for principals in alternative schools and in cooperative innovative high school programs is the Principal III level. Adds that principals in alternative schools who supervise 33 or more teachers should be classified according to the number of teachers supervised (Principal IV level or higher).

Provides that a principal must be placed on the step on the salary schedule that reflects the total number of years of experience as a certified employee of the public schools and an additional step for every three years of experience serving as a principal on or before June 30, 2009. Requires a principal or assistant principal to continue to receive any additional State-funded percentage increases earned for the 1997-98, 1998-99, and 1999-00 school years for improvement in student performance or maintaining a safe and orderly school. Provides for a monthly salary supplement for principals and assistant principals with certification based on academic preparation at $126 for the six-year degree level and $253 for the doctoral degree level. 

Directs that longevity pay for principals and assistant principals be as provided for State employees under the NC Human Resources Act. 

Provides for the salary schedule of a principal in circumstances where the principal is reassigned to a higher or lower job classification. Adds that the provisions apply to all transfers on or after the effective date of the Section, except transfers in school systems that have been created or will be created by merging two or more school systems, which are exempt from the transfer provisions for one calendar year following the date of the merger. 

Provides for participants in an approved full‑time master's in‑school administration program to receive up to a 10‑month stipend at the beginning salary of an assistant principal during the internship period of the master's program. Limits the stipend from exceeding the difference between the beginning salary of an assistant principal plus the cost of tuition, fees, and books and any fellowship funds received by the intern as a full‑time student, including awards of the Principal Fellows Program. Requires the Principal Fellows Program or the school of education where the intern participates in a full‑time master's in‑school administration program to supply the DPI with certification of eligible full‑time interns.

Establishes that, for the 2017-20 fiscal years, the placement on the salary schedule of an administrator with a one-year provisional assistant principal's certificate be at the entry-level salary for an assistant principal or the appropriate step on the teacher salary schedule, whichever is higher.

Appropriates the following from the General Fund to DPI to implement the above provisions: $38,622,966 in recurring funds for the 2017-18 fiscal year; $77,245,933 in recurring funds for the 2018-19 fiscal year; and $115,868,899 for the 2019-20 fiscal year.

Effective July 1, 2017.

Part III

Enacts GS 115C-311, directing the State Board of Education (State Board) to establish a statewide program to be implemented in select local school administrative units that uses advanced teaching roles and organizational models linking teacher performance and professional growth to salary increases for classroom teachers. Defines classroom teacher to mean a teacher who works in the classroom providing instruction at least 70% of the instructional day and who is not instructional support personnel. Details four purposes of the program, including enabling local school administrative units to create innovative compensation models that focus on classroom teacher professional growth and student outcomes, and establishing organizational changes related to compensation by utilizing local plans to sustain evidence-based teaching practices that have the capacity to be replicated throughout the State. Delineates nine elements the State Board must include in the program, including: (1) descriptions of the advanced teaching roles, (2) salary supplement information as specified, and (3) plans for financial sustainability once any grant money that may be awarded to the local school administrative unit is no longer available. Describes five purposes for which funds awarded to local school administrative units can be used, including salary supplements for advanced teaching roles and development of professional development courses. Provides that local school administrative units receiving funding under the program can exceed the maximum class size requirements for kindergarten through third grade notwithstanding GS 115C-301.

Appropriates the following funds from the General Fund to DPI to implement the Section and provide for seven advanced teaching roles for each school in a local school administrative unit: $328,066,628 for the 2017-18 fiscal year; $371,810,522 for the 2018-19 fiscal year; and $416,006,938 for the 2019-20 fiscal year.

Effective July 1, 2017.

Part IV

Repeals Section 8.22 of SL 2013-360, as amended, which phased out specified teacher salary supplements.

Specifies that only the following teachers and instructional support personnel will be paid on the "M" salary schedule or receive a salary supplement for academic preparation at the six‑year degree level or at the doctoral degree level for the 2015‑16 and subsequent school years: (1) certified school nurses and instructional support personnel in positions for which a master's degree is required for licensure; (2) teachers and instructional support personnel who were paid on that salary schedule or received that salary supplement before the 2014‑15 school year; (3) teachers and instructional support personnel who complete a degree at the master's, six‑year, or doctoral degree level for which they completed at least one course prior to August 1, 2013, and would have qualified for the salary supplement pursuant to State Board of Education policy, TCP‑A‑006, as it was in effect on June 30, 2013; and (4) teachers and instructional support personnel who do not qualify under subdivisions (1), (2), and (3) of this section but who spend at least 70% of their work time in either classroom instruction related to their graduate academic preparation in their field or subject area within their area of licensure or work within the employee's area of graduate academic preparation.

Requires, beginning with the 2015‑16 fiscal year and subsequent fiscal years, for teachers who are paid on the "M" salary schedule under subdivision (4) above, annual determination of whether teachers and instructional support personnel will be paid on the "M" salary schedule or receive a salary supplement for academic preparation. Allows teachers and instructional support personnel to be moved off of the "M" salary schedule or discontinue receiving salary supplements if they are not meeting the specified requirements.

Provides that unless an individual otherwise qualifies under subdivision (2) or (3) above, teachers and instructional support personnel who earn an advanced degree in school administration must not be paid on the "M" salary schedule or receive a salary supplement for academic preparation unless they serve as an assistant principal or principal.

Effective July 1, 2017.

Part V

Enacts GS 115C-302.5, directing the State Board of Education (State Board) to establish rules for local school administrative units to grant interval educational sabbatical leave to classroom teachers according to a teacher's years of service to NC public schools. Details eligibility requirements for a teacher to request up to a six-month or one-year educational sabbatical leave, and requirements during and after the grant of educational sabbatical leave. Prohibits a classroom teacher from being granted educational sabbatical leave more frequently than every five years. Defines a classroom teacher as a teacher who works in the classroom providing instruction and who is not instructional support personnel. 

Appropriates the following from the General Fund to DPI to implement this Section: $143,060,653 for the 2017-18 school year; $160,602,218 for the 2018-19 fiscal year; and $178,325,248 for the 2019-20 fiscal year.

Effective July 1, 2017, and applies beginning with the 2017-18 school year.

Part VI

Amends GS 115C-296, concerning lateral entry and mentor programs for teachers entering the profession, to require each new teacher to have one mentor and each mentor to have one teacher mentee. Requires the mentor to prepare all of the mentee's lesson plans while the mentee has fewer than two years of experience, and requires the mentor to observe and counsel the mentee during that time. Directs the mentor to refer the mentee to the Teacher Support Program established pursuant to GS 115C-300.5 if the mentor believes that the mentee is suffering from severe stress, exhaustion, or disillusionment related to the profession. Requires the State Board to compensate mentors for duties related to participating in the teacher mentor program in accordance with GS 115C-311(b)(3)e to the extent funds are appropriated. Directs DPI to provide any teacher who is referred to the Teacher Support Program with weekly access to a counselor, psychologist, psychiatrist, or social worker for six months after the date of referral. Provides that in the mentor's discretion, the mentor can refer the mentee to the Program as necessary during the period of the mentor-mentee relationship.

Appropriates from the General Fund to DPI $168,968,276 in recurring funds for the 2017-18 fiscal year to provide a monthly stipend of $1,500 for each teacher serving as a teacher mentor pursuant to the provisions of the Section.

Effective July 1, 2017, and applies beginning with the 2017-18 school year.

Part VII

Appropriates $5 million in recurring funds to DPI for the 2017-18 fiscal year to provide funds for the NC Center for the Advancement of Teaching (NCCAT) to support a professional development program for principals and assistant principals focusing on the principal's role in recruitment and retention of high quality teachers. Details the ways in which the NCCAT's professional development program is to prepare school leaders with the use of the funds. Directs DPI to annually report, beginning September 15, 2018, to the Joint Legislative Education Oversight Committee on the delivery and outcomes of the professional development program as specified.

Part VIII

Enacts GS 116-209.27A, establishing the 11-member North Carolina Teaching Fellow Commission (Commission), exercising powers and functions in coordination with the State Education Assistance Authority (Authority). Directs the Authority to provide staff and office space to the Commission.

Enacts GS 116-209.27B, providing for the Commission's membership, member terms, filling vacancies, meetings, and member expenses. 

Enacts GS 116-209.27C, providing that the Commission is to administer a Teaching Fellows Program in coordination with the Authority to provide a four-year scholarship loan of $6,500 per year to NC high school seniors interested in preparing to teach in NC public schools. Directs the Commission to adopt stringent standards for awarding the scholarship loans to ensure that only the best high school seniors receive them. Directs the Commission to administer the program in cooperation with educator programs selected by the Commission. Adds that Teaching Fellows should be exposed to a range of extracurricular activities while in the program to instill strong motivation to remain in teaching and provide leadership for schools in the future. 

Directs the Commission to form regional review committees to assist in identifying the best high school seniors for the program as specified. 

Sets out the details of the scholarship loans and permits the loans to be terminated by the recipient withdrawing from school or by the recipient not meeting the standards set by the Commission. Directs the Authority to forgive the loan if (1) the recipient teaches for four years at an NC public school or at a school operated by the United States in the State within seven years after graduation; (2) the recipient teaches for three consecutive years (unless the recipient takes an approved leave of absence) at an NC public school in a local school administrative unit within seven years after graduation if at the time the recipient accepts employment with the unit, the unit is a low-performing school system; or (3) the Authority finds it impossible for the recipient to teach for four years within seven years after graduation at an NC public school or a school operated by the United States in the State because of the death or permanent disability of the recipient.

Sets out provisions for appropriations and other funds received by the Program to be placed in a revolving fund to be used for scholarship loans. Adds that, with prior approval of the General Assembly in the Current Appropriations Act, the revolving fund can also be used for campus and summer program support, and costs related to disbursement of awards and collection of loan repayments. Provides that the Program can use up to $600,000 each fiscal year from the fund for costs associated with administration of the Teaching Fellows Program. Establishes that the Authority is responsible for the collection of a loan awarded under the statute if the loan repayment is outstanding for more than 30 days.

Amends GS 120-123 to prohibit any member of the General Assembly from serving on the NC Teaching Fellows Commission.

Makes conforming change to rename GS 116-209.27 to Administration as of March 1, 2017, of outstanding scholarships previously awarded by the Teaching Fellows Program.

Appropriates from the General Fund the following funds to the UNC Board of Governors (BOG) to be allocated to the Authority for administration of the program and the expenses of the Commission: $400,000 for the 2017-18 fiscal year and $810,000 for the 2018-19 fiscal year. Appropriates to the BOG $3,250,000 for the 2018-19 fiscal year to provide 500 Teaching Fellowships with $6,500 per recipient for the 2018-19 academic year. Effective July 1, 2017.

Part IX

Enacts new Article 35, Loan Repayment Assistance Program for Teachers, in GS Chapter 116.

Directs the State Education Assistance Authority (Authority) to administer the Loan Repayment Assistance Program for Teachers (Program) in accordance with new Article 35 and adopt any necessary rules, including adopting an application process, eligibility guidelines, and a process for certifying an applicant's employment status and reevaluating eligibility on an annual basis.

Allows any eligible teacher to apply to the Authority for a repayment assistance loan under the Program to repay all or a portion of the teacher's eligible debt by receiving repayment assistance loans for up to six years for eligible debt accrued toward an undergraduate degree and for up to six years for eligible debt accrued toward a graduate degree. Defines eligible teacher as a classroom teacher currently licensed in North Carolina who is rated as "highly effective" on the most recent North Carolina Teacher Evaluation instrument through the North Carolina Educator Evaluation System or the equivalent on an out‑of‑state teacher's state or district instrument. Adds that for the purposes of this act, a highly effective classroom teacher is a teacher who receives a rating of at least "accomplished" on each of the teacher evaluation standards on the North Carolina Teacher Evaluation instrument and who exceeds expected student growth based on teacher evaluation data as calculated by the State Board of Education or equivalent on an out‑of‑state teacher's state or district evaluation system. Defines eligible debt as the outstanding principal, interest, and related fees from loans obtained for undergraduate or graduate educational expenses made by government or commercial lending institutions or educational institutions but does not include loans made by a private individual or family member.  

Requires that the eligible teacher must have been employed for at least one year in any local school administrative unit in North Carolina before applying for the initial year of repayment assistance. Requires the eligible teacher to include in the teacher's application for repayment assistance a signed statement of intent to remain employed in an NC public school for a period of at least four years following each year the eligible teacher receives a repayment assistance loan and agree to repay in full any repayment assistance loans disbursed to the eligible teacher if the teacher fails to complete the repayment assistance period due to voluntarily leaving employment in an NC public school and fails to secure other qualifying employment.  Bars eligibility for a repayment assistance loan if the applicant is in default on any obligation to a government or commercial lending institution or educational institution until those financial obligations are satisfied.  Provides that the Authority may waive ineligibility for this reason at its sole discretion.

Requires the Authority to annually provide repayment assistance loans to eligible teachers from monies available in the Teachers' Loan Assistance Repayment Fund and to award repayment assistance loans of up to $6,500 per calendar year for an eligible teacher that meets the criteria set forth in GS 116-285(3) in the order in which applications are received. Requires all repayment assistance loans to be evidenced by promissory notes made payable to the Authority. Directs the Authority to forgive the repayment assistance loan in the amount of each annual disbursement once the eligible teacher remains employed in an NC public school for four years following the receipt of funds. Requires an eligible teacher who received a repayment assistance loan in a previous year to provide documentation to the Authority that the funds in the amount of the loan were submitted to the government or commercial lending institutions or educational institutions for repayment of the teacher's eligible debt. Requires an eligible teacher to notify the Authority if the teacher's employment that provided the basis for eligibility under the Program terminates or changes, voluntarily or involuntarily, before exiting the repayment assistance period. Provides that an eligible teacher who voluntarily leaves the qualifying employment and does not become employed in another position as an eligible teacher will be required to repay in full any funds that were paid to the teacher, with interest accruing at the annualized rate applicable to the eligible debt being repaid, if not yet forgiven under subsection (b) of new GS 116-287 at the time of termination. Establishes that an eligible teacher who cannot fulfill the employment requirements due to death or disability, taking a leave of absence, or being involuntarily terminated can no longer be eligible for a repayment assistance loan under the Program but is not responsible for repaying the outstanding amount of loans previously disbursed to the eligible teacher during the repayment assistance period.

Establishes the Teachers' Loan Assistance Repayment Fund (Fund) to be administered by the Authority, to be used only for repayment assistance loans made under GS 116-288, and the administrative costs of the Authority. Requires that all funds appropriated to or otherwise received by the Authority to provide repayment assistance loans through the Program, all funds received as repayment of loans, and all interest earned on these funds be placed in the Fund.  

Requires the Authority to report no later than December 1, 2018, and annually thereafter, to the Joint Legislative Education Oversight Committee regarding the Fund and repayment assistance loans awarded from the Fund.

Appropriates from the General Fund to the BOG $4,060,000 for the 2017-18 fiscal year and $7,310,000 for the 2018-19 fiscal year to implement the provisions of the Section. Allows the Authority to use up to $810,000 of the funds appropriated for each fiscal year for administration of the program.

Effective July 1, 2017.

Part X

Enacts GS 115C-296.14, establishing the Regional Education Task Force (Task Force) to monitor the teacher preparation program to obtain data that can assist in evaluating the program and in determining its strengths and weaknesses. Details example data that can be compiled by the Task Force for evaluation of the program. Sets out the membership of the Task Force, divided into three geographical categories. Directs the Chair of the Department of Education at each constituent institution to appoint to the Task Force a professor from the Department of Education to serve as the member representing that constituent institution for a term of one year. Further details the membership, terms, vacancies, chair election, quorum, and meetings of the Task Force. Requires the Task Force to report annually, beginning September 1, 2018, to the Joint Legislative Education Oversight Committee regarding the data compiled and its evaluation of the teacher preparation program, including any legislative proposals recommended by the Task Force.

Part XI

Adds new subdivision (4a) to GS 115C-102.6A(c), requiring the State school technology plan to include a plan to equip all students in grades seven through twelve with personal learning technology statewide. Details the required components of the plan, including a component promoting equal opportunity for and providing meaningful access to personal learning technology and resources for students who are economically disadvantaged or have special needs. 

Appropriates $50 million from the General Fund to the State School Technology Fund in recurring funds for the 2017-18 fiscal year for the State Board of Education to implement the described plan in this Section. Allows the State Board to phase in deployment of personal learning technology beginning with seventh and eighth grade students and then use available funds to deploy the equipment to high school students. 

Effective July 1, 2017, and applies beginning with the 2018-19 school year.

Part XII

Sets forth findings of the General Assembly relating to pre-k programs.

Directs the Department of Health and Human Services, Division of Child Development and Early Education (Division), to continue implementing NC Pre-K and serve children who are four years of age; however, beginning January 1, 2018, the program must be extended to cover 12 months of the program year. Additionally, directs that the program must be expanded to serve three-year old children on or before August 31 of the program year beginning on January 1, 2020. Directs the Division to establish income eligibility requirements not to exceed 75% of the State median income. Permits up to 20% of children enrolled to have family incomes in excess of 75% of median income if the children have other designated risk factors. Makes eligible any of-age child who is a child of an active duty member of the Armed Forces or a member of the Armed Forces who was injured or killed while serving in active duty. Provides that eligibility determinations for pre-k participants can continue through local education agencies and local NC Partnership for Children, Inc., partnerships. Prohibits the Division from considering the health of a child, other than developmental disabilities or other chronic health issues, as a factor in determining eligibility.

Directs the Division to require the NC Pre-K contractor to issue multiyear contracts for licensed private child care centers providing NC Pre-K classrooms. 

Requires private child care facilities and public school operating pre-k classrooms to meet the building standards for preschool students provided in GS 115C-521.1.

Requires entities operating pre-k classrooms to adhere to all policies prescribed by the Division regarding programmatic standards and classroom requirements.

Requires local NC Pre-K committees to use the standard decision-making process developed by the Division in awarding pre-k classroom slots and student selection.

Directs the Division to submit an annual report by March 15 to the Joint Legislative Oversight Committee on Health and Human Services, the Office of State Budget and Management, and the Fiscal Research Division. Details the required contents of the report.

Provides that the administration of the NC Pre-K program by local partnerships are subject to the financial and compliance audits authorized by GS 143B-168.14(b). 

Appropriates from the General Fund to the Division $28,300,000 each year for the 2017-18 and 2018-19 fiscal years. Appropriates to the Division $391,500,000 for the 2019-20 fiscal year.

Effective July 1, 2017.

Part XIII

Enacts GS 115C-300.5, directing the State Board of Education to establish the Teacher Support Program (Program) to help teachers cope with stress, exhaustion, and disillusionment related to the profession by providing counseling services. Authorizes the State Board to contract with a private, for-profit, or nonprofit employee assistance program corporation. Details related rules the State Board must adopt for the implementation of the Program, including the development of a referral system, professional and licensure requirements for staff, and the development of a toll-free, 24-hour hotline for teachers. Makes any records related to teacher participation confidential and prohibits employing entities from considering teacher participation for purposes of teacher performance evaluation or making any employment decision.

Appropriates $1 million in recurring funds from the General Fund for the 2017-18 fiscal year to DPI to establish and operate the Teacher Support Program.

Part XIV

Directs the Program Evaluation Division (PED) to conduct a measurability assessment of the State programs created by the act and the investment of State funds in raising teacher and principal salaries to determine whether these actions and programs are impacting student performance and outcomes, improving the retention and availability of employing high-quality teachers in the NC public schools, and providing a return on investment of State funds.  Directs PED to begin the assessment beginning in 2027 and compare data from the 2017-18 fiscal year and data collected up until 2031-32. Directs PED to report to the 2033 General Assembly on the results of the assessment.

Part XV

Amends GS 105-164.4(a) to increase the sales tax rate imposed on retailers engaged in business in the State to 5.25% (currently, 4.75%), effective July 1, 2017; 5.5%, effective July 1, 2018; and 5.75%, effective July 1, 2019 (applicable to sales made on or after those specified dates).

Repeals GS 105-130.3C (rate reduction trigger), effective for taxable years beginning on or after January 1, 2018.

Amends GS 105-130.3 to increase the income tax rate imposed on C corporations doing business in the State to 5% (currently, 4%), effective January 1, 2019, and 6%, effective January 1, 2020.

Amends GS 105-153.7(a) to increase the NC individual income tax rate to 5.75% (currently, 5.499%), effective January 1, 2018; 6%, effective January 1, 2019; and 6.5%, effective January 1, 2020.

Part XVI

Establishes that the act applies beginning with the 2017-18 school year unless otherwise provided.