Education

NC Supreme Court should keep multibillion-dollar education plan, state and schools argue in latest Leandro filings

Legislative leaders have argued only they can determine education spending under the North Carolina Constitution.

Posted Updated
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By
Emily Walkenhorst
, WRAL education reporter
RALEIGH, N.C. — School systems and state authorities are again making their case to keep a multibillion-dollar education plan in place for North Carolina schools.
The so-called Leandro Plan would raise teacher pay, increase spending for students with disabilities and change policies to help struggling schools. State executives and several low-income school systems support the plan, but authorization for funding has been the subject of intense debate in state courts.

In a 2022 ruling, the North Carolina Supreme Court ordered state executives to fund the plan. But lawmakers, who want the plan struck down, argue that only they have the authority to determine how state funds are spent.

Since the previous ruling, the high court has shifted its ideological lean. Republicans took the majority of seats on the court after the 2022 elections. The new GOP-leaning court is scheduled to hear the case Feb. 22.

School systems and the state filed arguments this week, saying that the court shouldn’t reconsider the plan because the court has already ruled on it and there’s no need to rehash it.

How the court rules could affect whether certain education funding and programming will be delivered to the state’s nearly 3,000 public schools and 1.5 million public school children, or whether state lawmakers remain the chief decision-makers on education funding and policy.

The lawsuit that prompted the debate has been ongoing for nearly 30 years. That case, Hoke County Board of Education v. State of North Carolina, is known as Leandro for an original plaintiff. It was first filed in 1994 by families and school boards in lower-income counties that alleged the state was not providing an adequate education. The Supreme Court first sided with the plaintiffs in 1997 and 2004, finding the state both responsible for providing a "sound basic education" and that it was not doing so.

Parties in the case agreed to the Leandro Plan in 2021 to resolve the dispute, although lawmakers were not involved in the process.

The state Supreme Court ruled in November 2022 that state executives must transfer whatever remained of the $1.75 billion required under the plan for the 2021-22 and 2022-23 school years. The entire eight-year plan calls for $5 billion more through 2028.

Republican state Senate leader Phil Berger and state House Speaker Tim Moore have contested the court-ordered plan.

They argue lawmakers are the only ones who can determine education funding. Since the November 2022 ruling, they’ve filed petitions to hear other issues in the case that the now-Republican state Supreme Court majority has agreed to hear. Other parties in the lawsuit have contended the petitions amount to a rehearing of the case, even though the state Supreme Court has already ruled on it. Parties in the case who were dissatisfied with the outcome could have petitioned for a rehearing within a certain number of days of the Nov. 2, 2022, order, but no one did.

State Controller Nels Roseland filed a petition last year asking the state Supreme Court to issue a ruling that provides more clarity on whether the transfer of funds is legal under North Carolina law. The high court’s previous ruling, under a Democratic majority, indicated that transferring the funds is legal.

Berger and Moore filed arguments, as well, ultimately seeking to have the November 2022 decision overturned entirely because they think the plan is premature.

In two separate orders in 2023, the Supreme Court agreed to take up two issues in the lawsuit. In March, the court agreed to hear arguments on whether the judicial branch can order the state’s controller to write checks that weren’t specifically authorized by legislation. Then, in October, the Supreme Court agreed to hear arguments on whether a lower court had the authority to decide how much money remained to be spent in the education plan.

State lawmakers have asked the state Supreme Court to draw much bigger conclusions while justices deliberate those two issues. They’ve asked justices to overturn the November 2022 state Supreme Court decision entirely. They argue that conclusions drawn by the court in that decision were faulty or insufficient to settle their concerns — namely, that the court’s findings don’t apply to any school systems outside of Hoke County and that only lawmakers can determine how state dollars should be spent.

They argue, “the trial court has effectively removed decision-making over public education — and thus one of the State’s most important functions — from the people and their popularly elected representatives.”

In a brief filed this week, attorneys for the state argue these issues have already been decided.

“This Court rejected these exact arguments in [November 2022]. It should reject them again now, both because they are incorrect and because overturning [the November 2022 decision] would be inconsistent with the rule of law.”

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