A new report from a government watchdog agency is finding flaws with the way North Carolina allocates money to public and charter schools.

The report, released Wednesday by the Program Evaluation Division to a legislative committee, says the way money is distributed for paying teachers favors the wealthiest districts.

The study also found faults in the spending formulas for poor districts, for children with disabilities and for those speaking English as a second language.

The committee has requested draft legislation for next month to create a study panel that would recommend scrapping current formulas by 2018.

They're aiming to replace them with one based primarily on per-pupil spending and providing more money for specific needs.

The legislation would have to be approved by the General Assembly, which reconvenes in January.

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