Change to Needs-Based Capital Funding.

HB 706 changes how North Carolina allocates public school capital funds by eliminating the use of the Department of Commerce's economic development tier designations. Instead, it requires funding to be based on either a county's adjusted property value (with specific matching percentages) or HUD-designated poverty areas. The bill affects all public K-12 schools, community colleges, and UNC institutions receiving state education funds, prohibiting agencies from using Commerce's economic tiers for allocation starting in the 2025-2026 school year. It also repeals prior sections allowing tier-based funding and mandates equal per-school allocations for certain cooperative high schools. The law takes effect July 1, 2025, for new grant applications.