Amends GS 115C-105.25 (Budget flexibility), deleting GS 115C-105.25(b)(1, 2, 2a, 4, 5, 5a, 6, 7, 8, 9), eliminating several of the limitations that local boards of education had on the transferring of funds between categories.

Adds new GS 115C-105.25(b)(1a), providing that funds for children with disabilities, career and technical education, and other purposes may be transferred only as permitted by federal law and the conditions of federal grants.

Adds new GS 115C-105.25(b)(10), providing that funds to carry out the Excellent Public Schools Act will not be transferred.

Amends GS 115C-301 (Allocation of teachers; class size), deleting GS 115C-301(c, d, and e), regulations dealing with the maximum class size and teaching load. Replaces the deleted sections with GS 115C-301(c) (Class Size), providing that local school units will have the maximum flexibility to use allotted teacher positions to maximize student achievement. Requires local boards of education to report each February 1 any significant increases in class size.

Amends GS 115C-301(g), to now provide that local boards of education may request allotment adjustment for significant increases in class size. Within 45 days of receipt  of request, the State Board of Education, within funds available, may allot additional positions if the significant increase in class size resulted from exceptional circumstances or circumstances out of the control of the organization. Rules will be adopted for the implementation of this section. Deletes penalty for noncompliance with this section.

Amends GS 115C-47 (Powers and duties generally), deleting the majority of GS 115C-47(10) in lieu of establishing that it is the responsibility of local boards of education to assure that the teacher positions allotted by the state are used to maximize student achievement. In addition, each local board will have the duty to provide an adequate number of classrooms.

Amends GS 115C-276(k), making technical and conforming changes.

Creates new subsection GS 115C-105.25(c), providing that to inform parents, educators, and the public on how state funds are used to address local educational priorities, each local school administrative unit will publish the following information on its website by August 1 of each year:

1) a description of each program report code, written in plain English, and a summary of the prior fiscal year's expenditure of state funds within each program report code

(2) a description of each object code within a program report code, written in plain English, and a summary of the prior fiscal year's expenditure of state funds for each object code  

(3) a description of each allotment transfer that increased or decreased the initial allotment amount by more than 5% and the educational priorities that necessitated the transfer

Effective July 1, 2013.