Enacts new GS 115C-408.1 to require the State Board of Education to modify its allotment formulas, modify rules on expending state funds, and transfer funds as necessary to ensure that each local administrative unit spends at least 65% of the state funding it receives for operations on classroom instruction. Requires the adoption of rules to implement the statute. Applies to expenditures for school years beginning with the 2012-13 school year.