(August 4, 2022) RALEIGH – More than 50 North Carolina business leaders asked the NC Supreme Court last week to uphold a lower court’s order last fall directing state officials to transfer more than $700 million to improve the state’s public schools.
The “friend of the court” brief1 is part of the 28-year-old Leandro case over funding for public schools that now educate 1.5 million children in North Carolina.2
The state Supreme Court has ruled twice in the case so far, finding the state is not providing enough funds to provide every child with their constitutional right to “the opportunity for a sound basic education.”
After decades without resolution, the business leaders – who include Higher Ed Works board members and donors – support Superior Court Judge David Lee’s order last November for state officials to transfer funds to enact a plan the parties to the case had accepted. They ask the Court to uphold Lee’s order.
Legislative leaders Phil Berger and Tim Moore later intervened, arguing that only the General Assembly – not the judiciary – can appropriate funds under the state Constitution.
And Lee was later replaced by Judge Michael Robinson, who found in April that the state is still $785 million short of its constitutional obligation for years 2 and 3 of the plan. But Robinson declined to order state officials to transfer the funds.3
The state Supreme Court is scheduled to hear arguments in the case once again on Aug. 31.
WHAT FOLLOWS IS A SYNOPSIS of the 52-page brief, which can be read in its entirety here:
The business leaders first note that the Declaration of Rights in Article I of the NC Constitution says: “The people have a right to the privilege of education, and it is the duty of the State to guard and maintain that right.” They assert that the courts have a right to order remedies to fulfill unmet constitutional rights. (Pp. 4-5)
They then argue that a quality education benefits both the student and the community at large.
“The benefits that flow from a sound basic education are legion. A quality education provides each student with essential skills and experiences needed for gainful employment, personal independence, strong citizenship, and financial stability…. But the benefits of quality education are not merely individual in scope. In many ways, providing quality schools and instruction inures to the benefit of all North Carolinians.” (P. 5)
“(These business leaders) are attentive to the impact of a sound basic education on our state economy. In particular, they are concerned that failing to implement improvements to North Carolina schools will negatively affect students’ ability to thrive in the workplace—and by extension our collective financial condition. Improving education will ensure a skilled and talented local work force to support businesses and investment in the State. In blunt and purely economic terms, (these business leaders) understand that our children and their educational attainment will determine North Carolina’s economic future. We fail to prepare them fully at our peril.
“The evidence in the case demonstrates that far too many children are not receiving a sound basic education. Without funding to implement the actions outlined in the Comprehensive Remedial Plan, the State cannot assure the availability of quality education in every school.” (P. 7)
“For too long, our State has failed to take effective steps to assure essential educational capacities in every school district and in every school, as required by our Constitution. The trial court recognized this fact in ordering the State to implement the Comprehensive Remedial Plan. It is a historic, evidence-based roadmap that describes what North Carolina must do, over time, and in what sequence, and at what cost, to put the essential capacities in place, in every school, in every district, to provide a sound basic education to every child.
“The Comprehensive Remedial Plan is a remarkable accomplishment, the most thorough plan ever developed in North Carolina, and possibly in any state, to assure full opportunity for all children. The State must not be deterred from this path to success and must never return to half-measures that fail countless children.
“Education is the inexorable force that dictates the economic fortunes of our students and our collective citizenry…. If the State continues to delay and defer the funding necessary to bring its educational efforts in compliance with what the Constitution demands, the strength of the North Carolina economy will recede along with the financial condition of its citizens.” (Pp. 9-10)
“If the State fails to fund the Comprehensive Remedial Plan, the trial court has determined, by the great weight of evidence, that North Carolina will fail to provide the educational opportunity that is every child’s constitutional birthright, now and for future generations. Not only that, the same failure will deprive those same children of the learning and skills they must have to earn and enjoy the fruits of economic independence and prosperity. The resulting waste of human potential—tragic and entirely avoidable—will constrain and diminish North Carolina’s future economy for decades to come.” (Pp. 11-12)
The brief outlines the history of the state’s Constitution – particularly its 1868 Constitution – in recognizing a right to a sound basic education:
“The North Carolina Constitutional Convention of 1868 presented an opportunity to revive the promise of public education and its attendant economic benefits. The framers made extensive changes to strengthen public education and insulate it from the whims and indifference of the General Assembly.” (P. 17)
“The 1970 amendments to the North Carolina Constitution further clarified that all students must be provided the opportunity for a sound basic education. The framers of this Constitution made clear that the ‘general and uniform system of free public schools’ must be one ‘wherein equal opportunities shall be provided for all students.’” (Pp. 18-19)
“This Court provided the trial court with the framework to determine whether the State is meeting its constitutional duty to provide North Carolina children with this fundamental right. The evidence developed over more than twenty years demonstrated conclusively that it has not. … The trial court gave the State numerous opportunities over many years to demonstrate that plans and commitments were in place, or being planned, to address this severe and debilitating constitutional deficiency. The evidence demonstrated, however, that students were still being denied their rights.” (Pp. 19-20)
The brief describes how all three branches of state government have repeatedly acknowledged links between education and the state’s economy, even quoting legislative leaders Phil Berger and Tim Moore, who intervened in the case to try to prevent the transfer of funds. (Pp. 20-28)
“There is no disagreement about the fundamental role that implementing and funding educational improvements play in securing North Carolina’s economic success. By enacting provisions that successively animated and strengthened the right to a sound basic education in 1776, 1868, and 1970, the framers of the North Carolina Constitution were motivated by concerns about economic prosperity. They viewed knowledge as a critical factor for ensuring our collective welfare and financial success. Moreover, researchers and officials in all branches of state government recognize how important it is to deliver quality instruction to all students—not just to improve individual lives, but also to safeguard economic and societal well-being for all citizens.” (Pp. 30-31)
“The Comprehensive Remedial Plan represents the trial court’s effort to comply with the constitutional command that the State must guard and maintain the right to education by preparing a plan that would satisfy the State’s obligation to ensure that every child in North Carolina receives a sound basic education. The actions outlined in the Comprehensive Remedial Plan include: improving the development and recruitment of school teachers and administrators; ensuring equitable distribution of education-related funding; a system of assessment and accountability to improve student performance; interventional plans to help underperforming schools; establishing early education programs for early childhood learning; and ensuring that students are prepared to join the workforce.” (Pp. 31-32)
“Providing a quality education, including implementing the actions in the Comprehensive Remedial Plan, will fulfill a promise that has been deferred far too long. Our students must have these improvements so that they can thrive and compete in a modern society and economy that constantly demands more specialized skills.
“As the trial court recognized in its April 26 Order, the State has not provided the necessary funding to meet its constitutional obligations. The State has underfunded the plan by more than $700 million dollars, without which the State cannot fulfill its constitutional duty to provide a sound basic education to all students in North Carolina.” (P. 32)
“Children born in 2004, the year that this Court decided Leandro II, graduated from high school this year. Because the State has failed to take the steps necessary to provide a sound basic education, many of these graduates face the same challenge as their parents. Eighteen years later, too many still lack the skills necessary to join ‘contemporary society’s gainful employment ranks.’
“(These business leaders) need to ensure an educated and skilled work force to support the continued growth and success of their businesses. They refuse to accept that another generation of students should be denied the opportunity for a sound basic education.” (P. 33-34)
“North Carolina, at its best, is the land where ‘the weak grow strong and strong grow great.’ The State’s constitutional commitment—to the weak and the strong alike—is to provide the resources necessary to ensure that every student in this state receives a sound basic education. Doing so will safeguard the continued growth and success of businesses in the state and will improve financial prosperity for all North Carolina citizens.” (P. 34)
1 https://www.ncappellatecourts.org/show-file.php?document_id=310199; A brief Latin lesson: amicus curiae = “friend of the court;” amici = “friends.”
2 https://hew.aveltsagency.com/2021/11/leandro-a-quarter-century-of-bickering/; https://hew.aveltsagency.com/2022/05/6-2b-nc-surplus-make-education-a-priority-again/; https://hew.aveltsagency.com/2022/07/a-pay-cut/.
3 https://www.wral.com/leandro-case-judge-says-nc-schools-are-due-785m-but-nixes-funds-transfer-to-pay-for-it/20253551/.
ADDENDUM
Listed below, in alphabetical order, are the North Carolina Business Leaders who submit this brief.
Adam Abram
Chairman, James River Group Holdings, Ltd.
James Babb
Former President & CEO, Jefferson Pilot Communications
Rye Barcott
Managing Partner and Co-Founder, Double Time Capital
Ronald J. Bernstein
Retired CEO, Liggett Vector Brands
Crandall Bowles
Former Chair & CEO, Springs Industries
Erskine Bowles
Co-Founder, Carousel Capital
President Emeritus, University of North Carolina
Thomas W. Bradshaw, Jr.
Retired Managing Director, Citigroup
Former Chair, NC Citizens for Business & Industry (now NC Chamber)
Former Chair, Raleigh Chamber of Commerce
Former Chair, Public School Forum of North Carolina
John R. Bratton
Director, Wake Stone Corporation
Samuel T. Bratton
CEO and President, Wake Stone Corporation
Theodore D. Bratton
Chairman, Wake Stone Corporation
Jack Clayton
President of Business Strategy, TowneBank
Sue W. Cole
Managing Partner, Sage Leadership & Strategy, LLC
Former Mid-Atlantic CEO, U.S. Trust Company
Sandra Wilcox Conway
Former Manager, Excellence in Education, The First Union Foundation
Peter Conway
Founder (Retired), Trinity Partners
John Cooper
Chair, Mast General Store
Don Curtis
Founder & CEO, Curtis Media Group
Richard L. “Dick” Daugherty
Former Vice President & Senior North Carolina Executive, IBM
Former Chair, NC Citizens for Business & Industry (now NC Chamber)
Emeritus Board of Directors, Research Triangle Park
Charter Board of Directors, Public School Forum of North Carolina
Bert Davis
President, 95 Impact Capital, Inc.
James M. Deal, Jr.
Former Chair, Watauga County Board of Education
Former Chair, Watauga Board of County Commissioners
Former Chair, Board of Trustees, Appalachian State University
Clay Dunnagan
Founder and Manager, Anchor Capital
John Ellison, Jr.
President, The Ellison Company
Frank E. Emory Jr.
EVP, Chief Administrative Officer, Novant Health
Ken Eudy
Founder and Former CEO, Capstrat
Jim Fain
Retired Bank Executive
Former Secretary, North Carolina Department of Commerce
Anthony Foxx
Former Mayor of Charlotte
Former US Transportation Secretary
Paul Fulton
Former President, Sara Lee Corporation
Former Dean, Kenan-Flagler Business School
Chairman Emeritus, Bassett Furniture Industries
Founder and Chair, Higher Ed Works
Hannah Gage
Former Owner, Cape Fear Broadcasting Company
Former Chair, UNC Board of Governors
Alston Gardner
Managing Director, DGI Capital, LLC
Patti Gillenwater
President and CEO, Elinvar Leadership Solutions
James F. Goodmon
Chair & CEO, Capitol Broadcasting Company
James and Ann Goodnight
SAS Institute
Greg Hatem
Founder & CEO, Empire Properties and Empire Eats
Barnes Hauptfuhrer
Former CEO, Chapter IV Investors, LLC
Former Co-Head, Corporate & Investment Banking, Wachovia Corp.
Melody Riley Johnson
Director, Strategic Accounts, Johnson & Johnson Medical Devices
Steven J. Levitas
Senior Vice President, Pinegate Renewables
Elizabeth Martin
Producer, Wild Violet Media, LLC
Easter A. Maynard
Board Chair, Golden Corral Corporation
James H. Maynard
Board Chair/Founder, Investors Management Corporation
Founder, Golden Corral Corporation
Hugh L. McColl, Jr.
Former Chair & CEO, Bank of America
Dr. Bill McNeal
Author (with Tom Oxholm): A School District’s Journey to Excellence:
Lessons From Business and Education
Former Superintendent, Wake County Schools
National Superintendent of the Year
Carlton Midyette
Venture Capital Investor
Thomas B. Oxholm
Executive Vice President, Wake Stone Corporation
Former member, Wake County Board of Education
Author (with Dr. Bill McNeal): A School District’s Journey to Excellence:
Lessons From Business and Education
Roger Perry
Chairman, East West Partners Club Management
Orage Quarles, III
Former President & Publisher, The News & Observer
Co-Founder, Journalism Funding Project
Thomas W. Ross
Chairman of the Board, Bausch & Lomb Company
Director, Bausch Health Companies
President Emeritus, University of North Carolina
Retired Superior Court Judge
Thomas R. Sloan
Founder, Sloan Capital Company
Gordon Smith III
Retired Investment Advisor
Founder and CEO, Wood Pile LLC
Sherwood Smith
Former Chair, NC Citizens for Business & Industry (now NC Chamber)
Former Chair, Triangle Universities Center for Advanced Studies, RTP
Charter Board Member, Public School Forum of North Carolina
Norris Tolson
Retired Business Executive
CEO & President, Carolinas Gateway Partnership
Former CEO, North Carolina Biotechnology Center
Former Secretary, NC Departments of Commerce, Revenue, and Transportation
Richard Urquhart
Retired Vice President, Investors Management Corporation
J. Bradley Wilson
President & CEO Emeritus, Blue Cross & Blue Shield of North Carolina
Former Chair, UNC Board of Governors
David Woronoff
President, The (Southern Pines) Pilot and Business North Carolina Magazine
Smedes York
Chair, York Properties
Former Mayor, City of Raleigh
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