Allotted average daily membership (ADM) determines North Carolina public school funding levels. It is based on either projected or actual prior year ADM, whichever is higher. ADM has declined in recent years due to lower birth rates, increased homeschooling and charter schools. The COVID-19 pandemic further reduced ADM in 2020-2021, with over 50,000 fewer students. This led more districts to be funded based on projections rather than actual enrollment figures, creating budget uncertainty for the coming years.