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  • Summary date: May 21 2018 - View Summary

    Section 1

    Amends GS 143B-168.10B, as enacted in SL 2018-2, Section 7, to increase the amount of funds appropriated from the General Fund to the Department of Health and Human Services, Division of Child Development and Early Education (the Department), for the North Carolina Prekindergarten program (Pre-K program). Specifically, bill appropriates $87,877,017 for 2018-19. Increases amount appropriated for 2019-20 from $82,001,394 to $104,582,345. Increases amount appropriated for 2020-21 from $91,351,394 to $121,287,673. Appropriates $137,991,673 for 2021-22. Appropriates for 2022-23 and each year thereafter $143,695,673.

    For 2018-19, the Department will increase the per-slot reimbursement rate for the Pre-K program by 3%. The Department will use the average amount paid per facility type in the 2017-18 fiscal year to determine the base rate before applying the 3% increase in the 2018-19 year.

    Section 2

    Appropriates from the General Fund to the Department the following amounts to increase funding for the North Carolina Partnership for Children, Inc.: in 2018-19, $167,013,453; in 2019-20, $187,013,453; in 2020-21, $207,013,453; in 2021-22, $227,013,453; and in 2022-23, $247,013,453. For 2023-24 and each fiscal year thereafter, appropriates $267,013,453.

    Section 3

    Amends GS Chapter 105, Subchapter I,  Article 4, Part 2, adding new section GS 105-153.11, titled Credit for early education professionals. Grants a tax credit for eligible early education teachers and directors equal to the sum of the highest applicable sub-subdivisions for each of the following: (1) for years of service uninterrupted by more than six months: $500 for one to three years of service, $1,000 for three to five years of service, $1,500 for five to seven years of services, and $2,000 for seven or more years of service; (2) for level of professional educational achievement: $500 if the staff person meets certain educational milestones such as holding an Early Childhood Certificate, or $1,000 for a higher level of professional achievement, such as holding an associate degree in Early Childhood, or $1,500 for achievements such as a bachelor’s degree in Early Childhood, or $2,000 for the highest category of achievement, such as holding a Continuing Birth-Kindergarten license.

    Defines terms as they apply to this section, in conformity with the definitions in GS 110-86.

    This tax credit is refundable.

    Contains a sunset clause –this section is repealed effective for taxable years beginning on or after January 1, 2023.

    Section 4

    Sections 1 and 2 become effective July 1, 2018. Section 3 is effective for taxable years beginning on or after January 1, 2019. The remainder of this act is effective when it becomes law.