BEAUFORT COUNTY BOARD OF EDUCATION v. BEAUFORT COUNTY BOARD OF COMMISSIONERS
No. 106PA08
IN THE SUPREME COURT OF NORTH CAROLINA
Filed 28 August 2009
363 N.C. 500 (2009)
MARTIN, Justice.
[363 N.C. 500 (2009)]
BEAUFORT COUNTY BOARD OF EDUCATION v. BEAUFORT COUNTY BOARD OF COMMISSIONERS
No. 106PA08
(Filed 28 August 2009)
1. Schools and Education— funding—dispute with county—resolution by court—constitutionality
2. Schools and Education— funding—judicial determination of minimum—county authority not infringed
3. Schools and Education— funding—judicial resolution of disputed amount—jury instruction
The Supreme Court exercised its general supervisory authority to promptly resolve a novel issue of great import, despite the lack of an objection or assignment of error, in a case involving the amount needed to operate a county school system. The instruction given to the jury on the word “needed” was too expansive, and was remanded for application of the more restrictive definition articulated herein.
4. Schools and Education— funding—responsibility for operating expenses
The statutes concerning school funding explicitly contemplate the funding of current school expenses by county commissioners when state funding is insufficient rather than local governments having responsibility for capital expenses only.
A county claiming a due process violation in a school funding case for the denial of a continuance had ample opportunity to communicate with the board of education and to request information, and the trial court did not err by denying the motion for a continuance. The legislature intended that the statutory process for resolving school funding disputes be carried out promptly.
Justice NEWBY concurring.
Justice HUDSON dissenting.
Justice TIMMONS-GOODSON joins in the dissenting opinion.
On discretionary review pursuant to
Schwartz & Shaw, P.L.L.C., by Brian C. Shaw and Richard Schwartz, for plaintiff-appellee.
Garris Neil Yarborough and Jonathan V. Maxwell for defendant-appellant.
James B. Blackburn, III, General Counsel, for North Carolina Association of County Commissioners, amicus curiae.
Tharrington Smith, L.L.P., by Ann Majestic and Robert M. Kennedy Jr.; and Allison B. Schafer, General Counsel, for North Carolina School Boards Association, amicus curiae.
MARTIN, Justice.
This action arises out of a dispute between the Beaufort County Board of Education (the School Board) and the Beaufort County Commissioners (the County Commission) over the amount of funding necessary to operate the local school system for the 2006-2007 fiscal year (FY 2006-2007). The School Board requested $12,106,304 and the County Commission allocated $9,434,217. After complying with the negotiation and mediation procedures set forth in
On appeal, the Court of Appeals found no error. Beaufort Cty. Bd. of Educ. v. Beaufort Cty. Bd. of Comm‘rs, 188 N.C. App. 399, 416, 656 S.E.2d 296, 307 (2008). We allowed discretionary review to determine whether “the statutory framework for resolving school funding disputes between the county board of education and the county board of commissioners [is] constitutional” and, if so, whether “the statutory framework [has] been properly applied in this case.”
[1] The County Commission first contends that section 431 is unconstitutional on its face. We observe that a facial challenge to a statute is a “‘most difficult challenge to mount successfully.‘” State v. Bryant, 359 N.C. 554, 564, 614 S.E.2d 479, 485 (2005) (quoting United States v. Salerno, 481 U.S. 739, 745 (1987)). A party must show that there are no circumstances under which the statute might be constitutional. See id. at 564, 614 S.E.2d at 486. We seldom uphold facial challenges because it is the role of the legislature, rather than this Court, to balance disparate interests and find a workable compromise among them. See Henry v. Edmisten, 315 N.C. 474, 491, 340 S.E.2d 720, 731 (1986). This Court will only measure the balance struck in the statute against the minimum standards required by the constitution. See id.
The County Commission alleges that by allowing the court system to play a role in deciding the level of funding for public education, section 431(c) impermissibly delegates the legislature‘s constitutional duty to “provide . . . for a general and uniform system of free public schools.”
In analyzing the role of the judiciary under section 431(c), we begin by examining the statutory procedures preceding litigation. The local school board first creates a budget setting out its estimate of the cost of providing education within its locale for the upcoming year and submits that budget to the county commission. See
find the facts as to the amount of money necessary to maintain a system of free public schools, and the amount of money needed from the county to make up this total. . . .
. . . When the facts have been found, the court shall give judgment ordering the board of county commissioners to appropriate a sum certain to the local school administrative unit, and to levy such taxes on property as may be necessary to make up this sum when added to other revenues available for the purpose.
Id.
Because the trial court must determine the amount necessary to fund “a system of free public schools,” id., we look to other provisions of Chapter 115C to determine the meaning of that phrase. The Chapter contains copious provisions setting standards, often in minute detail, to which local schools must adhere.2 The State Board
Since the General Assembly has so exhaustively defined its desired system, the section 431(c) procedure does no more than invite the courts to adjudicate a disputed fact: the annual cost of providing a countywide system of education under the policies chosen by the legislature and the State Board. Such fact-finding falls within the historic and proper role of the judiciary. See, e.g.,
Furthermore, we have previously considered and upheld a provision nearly identical to section 431(c). Chapter 33, section 8, Laws of 1913, provided, just as section 431 does, for judicial fact-finding as to the cost of schools in the event of disagreement between a county school board and the county commission. See Act of Mar. 1, 1913, ch. 33, sec. 8, 1913 N.C. Pub. [Sess.] Laws 58, 60. As in this case, the
[2] The County Commission next asserts that section 431(c) deprives it of funding discretion granted by the State Constitution. Our Constitution provides:
(2) Local responsibility. The General Assembly may assign to units of local government such responsibility for the financial support of the free public schools as it may deem appropriate. The governing boards of units of local government with financial responsibility for public education may use local revenues to add to or supplement any public school or post-secondary school program.
In interpreting our Constitution, we are bound to “give effect to the intent of the framers of the organic law and of the people adopting it.” Perry v. Stancil, 237 N.C. 442, 444, 75 S.E.2d 512, 514 (1953). Moreover, “where one of two reasonable constructions will raise a serious constitutional question, the construction which avoids this question should be adopted.” In re Arthur, 291 N.C. 640, 642, 231 S.E.2d 614, 616 (1977) (citations omitted).
We now consider the meaning of the terms “necessary” and “needed,” as used in section 431(c), in light of Article IX, Section 2(2) of the State Constitution. We acknowledge that these terms are susceptible to reasonable interpretations of varying strictness, about
So construed, section 431(c)‘s requirement that county commissions provide the minimum level of funding required by state law does not abrogate their discretionary authority to contribute more. As discussed above, the legislature has deemed it appropriate to assign responsibility to local government to provide funding to maintain the system of public schools. County commissions are thus required to furnish that amount. See
[3] We next consider the trial court‘s charge to the jury in the present case. Although counsel did not object or assign error to the trial court‘s instructions, “‘[t]his Court will not hesitate to exercise its rarely used general supervisory authority when necessary to promote the expeditious administration of justice,’ and may do so to ‘consider questions which are not properly presented according to [its] rules.‘” State v. Ellis, 361 N.C. 200, 205, 639 S.E.2d 425, 428 (2007) (quoting State v. Stanley, 288 N.C. 19, 26, 215 S.E.2d 589, 594 (1975)). We invoke our general supervisory authority mindful that because the trial court “did not have the legal standard which we articulate today to guide him in his consideration of the case, . . . it is not reasonable to expect him to have applied it without the benefit of this opinion.” State v. McDowell, 310 N.C. 61, 74, 310 S.E.2d 301, 310 (1984), cert. denied, 476 U.S. 1165 (1986). The instant case is analogous to other situations wherein this Court has invoked its general supervisory authority to promptly resolve a novel issue of great import. See In re Brownlee, 301 N.C. 532, 548, 272 S.E.2d 861, 870 (1981) (stating that the Court‘s general supervisory authority may be invoked when “[t]he novelty of the issues presented, coupled with
The trial court instructed the jury that the word “needed” in section 431(c) means “that which is reasonable and useful and proper or conducive to the end sought.” Rather than conveying a restrictive definition of “needed,” which is necessary to preserve the discretionary authority of county commissions under Article IX, Section 2(2), the instruction conveyed an impermissible, expansive definition of this statutory term. Because the instruction was in error, we must remand for a new trial. At that trial, the trial court should instruct the jury that section 431(c) requires the County Commission to provide that appropriation legally necessary to support a system of free public schools, as defined by Chapter 115C and the policies of the State Board. The trial court should also instruct the jury, in arriving at its verdict, to consider the educational goals and policies of the state, the budgetary request of the local board of education, the financial resources of the county, and the fiscal policies of the board of county commissioners. See
[4] The County Commission next asserts that the trial court erred in its interpretation of the statutory framework. Specifically, the Commission alleges that the legislature has assigned to local governments responsibility only for capital expenses and not current expenses. The statutes explicitly contemplate the funding of current expenses by county commissions when state funding is insufficient. See, e.g.,
In sum, we reject the County Commission‘s facial challenge and uphold section 431(c) as constitutional. Nonetheless, because the trial court‘s instructions invited the jury to step beyond its role of determining necessary funding and intrude upon the County Commission‘s constitutional discretion, we reverse the decision of the Court of Appeals and remand to that court for further remand to the trial court for a new trial.
REVERSED AND REMANDED.
Justice NEWBY concurring.
I agree with the majority that
The right to education is safeguarded in our State Constitution. Article I, Section 15 of the North Carolina Constitution establishes:
(1) General and uniform system: term. The General Assembly shall provide by taxation and otherwise for a general and uniform system of free public schools, which shall be maintained at least nine months in every year, and wherein equal opportunities shall be provided for all students.
(2) Local responsibility. The General Assembly may assign to units of local government such responsibility for the financial support of the free public schools as it may deem appropriate. The governing boards of units of local government with financial responsibility for public education may use local revenues to add to or supplement any public school or post-secondary school program.
By its plain language, Section 2(1) imposes solely on the General Assembly the duty to provide for the State‘s “uniform system of free public schools . . . wherein equal opportunities shall be provided for all students.” In Leandro v. State, we concluded that this subsection “requires that access to a sound basic education be provided equally in every school district.” 346 N.C. 336, 349, 488 S.E.2d 249, 256 (1997) (emphasis added). In so doing, we noted that the requirement of equal opportunities for all public school students is part of the General Assembly‘s constitutional duty to provide for the public schools. Id. at 348, 488 S.E.2d at 255.
The first sentence of Section 2(2) enables the General Assembly to require units of local government to bear some of the cost of maintaining their local public schools. However, no school budget “may be funded in such a fashion that it fails to provide the resources required to provide the opportunity for a sound basic education.” Hoke Cty. Bd. of Educ. v. State, 358 N.C. 605, 634, 599 S.E.2d 365, 388 (2004).
The second sentence of Section 2(2) permits local governing boards, if they so choose, to use local revenues to exceed the educational financing requirements placed on them by the General Assembly.
Read together, the North Carolina Constitution and this Court‘s opinions in Leandro and Hoke County lead to the conclusion that, while the General Assembly may require local governments to contribute to the cost of maintaining their local public schools, and the local governments may choose to exceed that basic cost by contributing more than the General Assembly requires, the minimum definition of a sound basic education must be the same throughout the state. Along with the minimum substantive requirements of a sound basic education, see id. at 347, 488 S.E.2d at 255, there must be a corresponding minimum level of funding that is required for every student. While the legislature may delegate the authority to establish educational funding levels, it may not do so in a manner that allows the per-student financial aspect of a sound basic education to vary substantially by county. Otherwise the General Assembly will have unconstitutionally abdicated its duty to ensure “equal opportunities for all students.”
The General Assembly has codified the responsibilities for educational funding in section 115C-426 of the General Statutes, entitled “Uniform budget format.” Three funds are identified: the State Public School Fund, the local current expense fund, and the capital outlay fund.
The parties to this case stipulated at trial that the only issue in controversy is the portion of the county‘s education budget known as the local current expense fund. Section 115C-426(e) defines this fund as follows:
The local current expense fund shall include appropriations sufficient, when added to appropriations from the State Public
School Fund, for the current operating expense of the public school system in conformity with the educational goals and policies of the State and the local board of education, within the financial resources and consistent with the fiscal policies of the board of county commissioners.
when added to appropriations from the State Public School Fund, for the current operating expense of the public school system in conformity with the educational goals and policies of the State and the local board of education, within the financial resources and consistent with the fiscal policies of the board of county commissioners.
Id. This is referred to in section 431(c) as the “amount of money . . . needed from sources under the control of the board of county commissioners to maintain a system of free public schools.”
The counties’ discretion under Article IX, Section 2(2) regarding whether (and by how much) to exceed the funding responsibility assigned to them by the State belongs to the counties alone, and the General Assembly cannot delegate that discretion away from “[t]he governing boards of units of local government with financial responsibility for public education.”
I acknowledge, however, that this Court has held it permissible for the General Assembly to delegate to the courts the task of determining school funding levels. In Board of Education v. Board of County Commissioners, this Court upheld a law that required the superior court division to resolve disputes regarding the amount of tax needed to be levied to maintain a county‘s public schools for a four month period. 174 N.C. 469, 474, 93 S.E. 1001, 1003 (1917). In accordance with the principle of stare decisis, I adhere to this precedent despite my strong reservations about courts’ ability to properly address the myriad policy considerations that attend educational funding.
I am also concerned that the extent of discretion assigned to the counties under section 115C-431 leaves open the possibility that counties could establish educational funding at a level below that
To insure a quality education for every child in North Carolina, and to assure that the necessary resources are provided, it is the policy of the State of North Carolina to provide from State revenue sources the instructional expenses for current operations of the public school system as defined in the standard course of study.
It is the policy of the State of North Carolina that the facilities requirements for a public education system will be met by county governments.
In summation, I believe the natural consequence of the General Assembly‘s constitutional duty to ensure an equally sound basic education for all public school students in North Carolina is a need for a statewide determination of the amount of money that must be expended per student to achieve that constitutional minimum. I fur-
Justice HUDSON dissenting.
I agree entirely with the bulk of the reasoning and analysis outlined in the majority opinion and particularly with its conclusion that
In our order allowing the County Commission‘s petition for discretionary review, we specifically limited our review to whether “the statutory framework for resolving school funding disputes between the county board of education and the county board of commissioners [is] constitutional,” and, if so, whether it was properly applied in this case. Likewise, as noted by the County Commission in its brief to this Court, “Legal error is presented; the relevant facts are not disputed.” None of the arguments presented on appeal—before the Court of Appeals or this Court, by the County Commission, the School Board, or any of the amici curiae who submitted briefs—challenged, contested, or otherwise found fault with either the trial court‘s instructions to the jury or with the “amount of money necessary to maintain a system of free public schools” in Beaufort County, as determined by the jury. The sole basis of the appeal was the constitutionality of section 115C-431(c), both facially and as applied.
I recognize that this Court does have “rarely used general supervisory authority” to “consider questions which are not properly presented according to our rules.” State v. Stanley, 288 N.C. 19, 26, 215 S.E.2d 589, 594 (1975) (citations omitted); compare Bailey v. State, 353 N.C. 142, 158 n.2, 540 S.E.2d 313, 323 n.2 (2000) (recognizing the Court‘s “constitutional supervisory powers over inferior courts” but declining to exercise that authority to allow a nonparty‘s petition to be heard, as the issue presented was not an “exceptional circumstance,” nor was the nonparty subjected to “financial obligations imposed by order of a trial court” as in other cases) with In re Brownlee, 301 N.C. 532, 547-48, 272 S.E.2d 861, 870-71 (1981) (electing to “treat the papers which have ben filed [sic] . . . as a motion calling upon the court to exercise its supervisory powers” and allow a county to appeal the order in a juvenile proceeding because of the county‘s “significant interest in the outcome,” including possible future expenditures). However, I disagree that the trial court‘s instructions to the jury here constitute the type of “exceptional circumstance” that calls for such action.
As noted by the majority opinion, we “will not hesitate to exercise . . . [that] authority when necessary to promote the expeditious administration of justice.” Stanley, 288 N.C. at 26, 215 S.E.2d at 594 (emphasis added). In State v. Ellis, we exercised the authority to review a Court of Appeals decision on a motion for appropriate relief in a noncapital case, finding that such action “to review upon appeal any decision of the courts below,”
Here, by acting ex mero motu to consider the trial judge‘s instructions to the jury and, by extension, the amount of the award fixed by the jury, the majority acts contrary to our own admonition that “[i]t is not the role of the appellate courts . . . to create an appeal for an appellant,” as doing so leaves “an appellee . . . without notice of the basis upon which an appellate court might rule.” Viar v. N.C. Dep‘t of Transp., 359 N.C. 400, 402, 610 S.E.2d 360, 361 (2005) (per curiam)
Moreover, while the majority maintains that the trial judge “did not have the legal standard which we articulate today to guide him in his consideration of the case,” State v. McDowell, 310 N.C. 61, 74, 310 S.E.2d 301, 310 (1984), cert. denied, 476 U.S. 1165, 90 L. Ed. 2d 732 (1986), I disagree. In McDowell, a capital case, we undertook extensive analysis of existing case law to determine the proper standard on which to review the State‘s failure to disclose nonrequested evidence, noting that the disclosure requirement turned on the “materiality” of the evidence, a “somewhat elusive gauge” on which the leading United States Supreme Court case, United States v. Agurs, 427 U.S. 97, 49 L. Ed. 2d 342 (1976), was less than clear as to the meaning of the term, and silent as to whether the trial judge or the jury should decide the question. McDowell, 310 N.C. at 69-73, 310 S.E.2d at 306-09. Both defendant and the State focused their arguments on appeal on the materiality standard, and whether it was properly applied by the trial judge. After articulating in plain terms what the standard should be, we remanded to the trial court to reconsider defendant‘s motion for appropriate relief in light of that standard—one that had not previously existed in our case law. Id. at 75, 310 S.E.2d at 310.
By contrast, the legal standard applied by the trial judge here clearly existed at the time of the trial and jury verdict: the plain language of section 115C-431(c) itself articulates the standard to determine “what amount of money is needed from sources under the control of the board of county commissioners to maintain a system of free public schools.” Had the County Commission found the instructions to the jury on the definition of the word “needed” objectionable, the County Commission could have made that issue part of its “unconstitutional as applied” challenge to the statute. Instead, in its argu-
There has been no showing by the County Commission or any other party that the amount awarded by the jury here was excessive or that it went beyond the restrictive definition of “needed” articulated in the majority opinion. Indeed, the amount awarded by the jury, $10,200,000, was ultimately less than the $12,106,304 requested by the School Board, and much closer to the $9,434,217 originally budgeted by the County Commission. This amount is not the type of “runaway verdict” that suggests the jury somehow overstepped its role, or disregarded the trial judge‘s instructions, but one indicating that the jury took seriously its responsibilities and awarded a seemingly reasonable figure that comports with the cost and expense projections presented by the parties at trial.
The County Commission failed to present any persuasive argument or evidence that section 115C-431(c) is unconstitutional as applied here, and this Court should not unilaterally act to create its case. Viar, 359 N.C. at 402, 610 S.E.2d at 361. In my view, the majority‘s decision to remand for a new trial unnecessarily delays and prolongs the dispute between the parties, already ongoing since the 2006-07 fiscal year, in a manner contrary to the stated purpose of invoking our general supervisory authority to contribute to “prompt and definitive resolution of an issue.” Ellis, 361 N.C. at 205, 639 S.E.2d at 428-29. Perhaps even more significantly, this disposition runs entirely counter to the clear intention of the General Assembly that the statutory resolution process outlined in section 115C-431(c) be carried out promptly. See
This case does not present the type of “unusual [or] exceptional circumstance[]” in which we should invoke our “rarely used general
For these reasons, I would follow the majority opinion‘s rationale as to the facial constitutionality of
Justice TIMMONS-GOODSON joins in this dissenting opinion.
