School Funding Flexibility Study.

HB 785 requires North Carolina's Department of Public Instruction to study how local school districts can better use existing education funding by combining or transferring budget categories (like classroom materials or staff costs). The study will identify where more flexibility could help schools meet student and staff needs, with a report due to lawmakers by April 2026. The state will provide $50,000 in one-time funding for this research during the 2025-2026 fiscal year. This bill does not change current funding rules but sets up a review process to potentially recommend future adjustments.