NORTH CAROLINA GENERAL ASSEMBLY
1961 SESSION

CHAPTER 1043
SENATE BILL 368

AN ACT TO AUTHORIZE THE STATE BOARD OF EDUCATION TO CONDUCT AN EXPERIMENTAL OR PILOT PROGRAM IN TWO OR MORE SCHOOL ADMINISTRATIVE UNITS BASED UPON MERIT PAY FOR TEACHERS WHO EXCEL IN THEIR PROFESSION AND TO APPROPRIATE FUNDS FOR THE EXPENSES OF THE PROGRAM.

WHEREAS, the present salary plan or schedule for teachers in the public schools of North Carolina does not recognize adequately individual quality, attainments, ability, value of services rendered, and professional work accomplished by the individual teachers; and
WHEREAS, it is desirable to have an incentive for public school teachers who excel in their profession and to stimulate, encourage and inspire such teachers to make their best endeavors in the field of public education and to improve their teaching competence, proficiency, skill and capacity; and
WHEREAS, a commission for the study of teacher merit pay was authorized by Resolution 80 of the General Assembly of 1959 and said commission made an extensive and thorough investigation and study of the subject of merit pay for teachers and has filed its report, and among other things said commission recommended as follows:
"The principle of paying teachers according to quality of performance is sound. In addition the factors or preparation and experience should be considered in the over‑all salary schedule. As the science of teacher evaluation has not developed a completely acceptable instrument upon which to adopt a general system of merit rating, the commission feels that systematic experimentation in merit rating should be instituted." and
WHEREAS the State of North Carolina should now authorize an experimental program for the purpose of determining the validity of such standards and criteria, as may be developed in the evaluation of teachers for merit pay purposes: Now, therefore,

The General Assembly of North Carolina do enact:

Section 1.  There shall be organized and established by the State Board of Education, and administered under the general supervision of the State Superintendent of Public Instruction an experimental or pilot program for the purpose of developing, formulating and administering a teachers' merit pay plan or system. The program shall be administered by the State Superintendent of Public Instruction who shall formulate and prepare reasonable rules and regulations for the administration and development of said experimental or pilot program and said rules and regulations shall become effective upon approval by the State Board of Education. The program shall extend for a period of two school years, beginning with the school year of 1961‑62 and extending through the school year 1962‑63. The first school year (1961‑62) shall be devoted to the formulation and development of the plans, regulations, procedures, instruments of measurement, and administrative machinery for conducting the experimental or pilot program. During the first school year, as above set forth, there shall be devised or prepared as near as possible, suitable factors, standards or criteria of an experimental nature, for the evaluation of the individual quality, attainments, ability, value of services rendered, work accomplished, and professional competence of teachers for purposes of a merit pay plan or salary system.
Sec. 2.  The second school year shall be devoted to the application and actual administration of the plans, standards and criteria developed for an experimental evaluation of a teachers' merit pay plan. The funds appropriated and made available to the State Board of Education shall be used, during said second school year, for the benefit of the experimental or pilot program in the form of incentive compensation for recognized merit in teaching as demonstrated by full‑time teaching personnel in two or more public school administrative units approved for participation in said experimental or pilot program. The extent, application and number of participants in the program shall be in the judgment and discretion of the State Superintendent of Public Instruction with the approval of the State Board of Education.
Sec. 3.  The State Board of Education, through the State Superintendent of Public Instruction, shall prepare and submit a progress report to the General Assembly of 1963, and a final report of findings, together with recommendations as to the future of the program, to the General Assembly of 1965.
Sec. 4.  There is hereby appropriated and made available to the Department of Public Instruction the sum of forty thousand dollars ($40,000.00) for each fiscal year of the biennium of 1961‑63, to be used for the employment of personnel, and for defraying necessary office and travel expenses incurred in the formulation of instruments of measurement and the administration of this Act.
Sec. 5.  There is hereby appropriated and made available to the State Board of Education the sum of one hundred twenty thousand dollars ($120,000.00) to be used during the second year of the project as incentive compensation for recognized merit in teaching as required by this Act.
Sec. 6.  All laws and clauses of laws in conflict with this Act are hereby repealed.
Sec. 7.  This Act shall be in full force and effect from and after its ratification.
In the General Assembly read three times and ratified, this the 19th day of June, 1961.