New NC budget includes money for multiple studies

North Carolina lawmakers are using the new state budget to explore possible changes to fireworks regulation, education, healthcare, firefighter safety, and the state’s motorsports industry. 

Rather than immediately changing state law, the General Assembly included studies of each issue in the budget. In the past, studies often precede changes to law and give the public a look at what lawmakers are considering for future sessions.  

During a July 14 appearance on The Pete Kaliner Show, Bob Luebke, director of the Center for Effective Education at the John Locke Foundation, described the education-related provisions as “small but significant changes” that could benefit supporters of educational freedom.  

Fireworks  

Section 8.24.(a) of Senate Bill 257 directs the North Carolina Collaboratory at the University of North Carolina at Chapel Hill to study issues related to the regulation of fireworks and whether the categories of fireworks permitted for sale, transportation, possession, and use in the state should be expanded. 

As part of the study, the Collaboratory must examine how an expansion could affect public safety and emergency services. It must also consider the feasibility and potential structure of a licensing and permitting system for businesses that wish to sell fireworks. 

The study must address consumer safety, local government authority, economic and fiscal effects, potential funding mechanisms for public safety and education using tax proceeds, comparisons with other states, and any other issues the Collaboratory considers relevant. The final report is due by July 4, 2027.   

Open Enrollment  

Section 8.23.(a) directs the Collaboratory to study how local school administrative units could allow students to attend any school within the district where they live, rather than limiting them to their assigned base school. 

The study must examine existing voluntary open enrollment plans and consider enrollment periods, application procedures, school capacity, transportation options, reasons an application may be denied, and possible appeals processes. 

During a recent open enrollment initiative, Luebke said open enrollment “increases access to highly rated schools or districts, improves academic outcomes such as test scores and graduation rates, fosters district improvement, and even helps encourage students to attend rural districts.” 

“Research points to the many benefits open school enrollment have, not only for students, but also for institutions,” said Luebke.  

Student Funding Formula Work Group 

The budget allocates $300,000 to establish a work group tasked with developing a strategy to transition North Carolina from its current allotment-based school funding system to a weighted student funding model for kindergarten through 12th grade. 

The group will consider consolidating non-teaching, project-based, resource-based, and need-based funds into clearer per-pupil categories. It will also study replacing position-based teacher allotments with dollar amounts based on average daily membership, improving accountability for state education spending, and determining which state agency should distribute funds to local school districts. 

Luebke said the change would move the state “in a much more desirable direction” because it “ties funding to students” and would improve transparency and accountability. 

He added that reform may be more likely now because lawmakers in both parties recognize problems with the current system and many districts are facing declining enrollment. 

HealthCare Costs  

The budget directs the North Carolina Collaboratory to study rising healthcare costs across the state and identify the factors driving those increases. The study will also examine strategies for reducing costs and compare North Carolina’s approach with efforts underway in other states. 

The report, due April 1, 2027, must evaluate actions already taken to control healthcare costs and recommend additional measures. Its findings will also inform a separate healthcare cost study scheduled for completion in 2028. 

Firefighter Protection  

Under the Firefighter Protection Act, the General Assembly appropriated $15 million to study and address firefighters’ exposure to per- and polyfluoroalkyl substances, commonly known as PFAS. 

The initiative includes groundwater testing near fire stations, testing drinking-water wells at firefighters’ homes, and studying PFAS levels and potential health effects in firefighters. The funding may also be used to provide temporary water supplies, install longer-term filtration systems, and establish a program to deep-clean protective equipment to reduce exposure. 

Motorsports Industry 

Section 11.10 allocates $400,000 to the Sanford Holshouser Business Development Group to update its 2004 study, “Motorsports — A North Carolina Growth Industry Under Threat.” 

The study will examine the condition and economic potential of North Carolina’s motorsports industry, including opportunities to attract professional, sportsman, and club racing events. It will also review motorsports research and development, manufacturing, and testing facilities. 

The group, in consultation with the Department of Commerce, must submit its report to legislative oversight committees and the Fiscal Research Division by April 15, 2027.  

“New NC budget includes money for multiple studies” was originally published on www.carolinajournal.com.