214 N.C. App. 1
N.C. Ct. App.2011Background
- Charter schools, students, and parents sue the State, counties, and boards of education over access to capital outlay funds in the county where the charter school is located.
- Plaintiffs allege discriminatory funding practices and seek declaratory relief under state constitutional provisions and U.S. constitutional principles.
- Defendants move to dismiss under Rule 12(b)(6); trial court dismisses the amended complaint for failure to state a claim.
- The core statutory provisions are NC Gen Stat § 115C-238.29H (charter funding rights) and the School Budget and Fiscal Control Act provisions for capital outlay funding.
- Court concludes charter schools are not entitled to county capital outlay funds; differences in statutory treatment imply legislative, not judicial, resolution; constitutional challenges are rejected.
- Affirmative ruling on dismissal; Sugar Creek Charter School et al. v. State and counties affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Right to capital outlay funds for charter schools | Sugar Creek argues charter schools entitle access to capital outlay funds | Defendants contend statute §115C-238.29H limits funding to local current expense and state allotments | Charter schools not entitled to capital outlay funds |
| Constitutional requirement of a general and uniform system | Const. IX, §2(1) mandates uniform funding including capital outlay | Const. IX, §2(1) allows nonuniform programs; no implicit ban on charters | Constitution does not forbid additional programs or funding mechanisms; no automatic entitlement to capital outlay funds for charters |
| Effect of constitutional provisions Art. XIV, §3 and related provisions | Argues general laws require charter funding symmetry with traditional schools | No general-law issue; state may create optional schools with different funding | Art. XIV, §3 does not restrict establishment or funding of charter schools; no merit in challenge |
Key Cases Cited
- Sugar Creek Charter School, Inc. v. Charlotte-Mecklenburg Bd. of Educ., 188 N.C.App. 454 (2008) (charter funding limitations under local budget structure; prior Sugar Creek decision cited)
- Francine Delany New School for Children, Inc. v. Asheville City Bd. of Educ., 150 N.C.App. 338 (2002) (charter schools treated under uniform budget format; local funding distinction)
- Leandro v. State of North Carolina, 346 N.C. 336 (1997) (defines sound basic education; constitutional framework for funding)
- Baker v. Martin, 330 N.C. 331 (1991) (expressio unius est exclusio alterius; constitutional interpretation cautions)
- Hughey v. Cloninger, 297 N.C. 86 (1979) (legislative authorization for funds; limits on local appropriations)