Step 1: Recall the structure of a B$^+$ tree.
A B$^+$ tree is a balanced search tree widely used for indexing in databases.
It stores keys in internal nodes and actual data record pointers only at the leaf nodes.
Step 2: Analyze each statement.
(A) B$^+$ tree is a height-balanced tree
This statement is correct. All root-to-leaf paths in a B$^+$ tree have the same length, ensuring balanced height.
(B) Non-leaf nodes have pointers to data records
This statement is incorrect.
In a B$^+$ tree, non-leaf (internal) nodes contain only keys and pointers to child nodes,
not pointers to actual data records.
Data record pointers exist only in the leaf nodes.
(C) Key values in each node are kept in sorted order
This statement is correct.
Sorted keys enable efficient searching and range queries.
(D) Each leaf node has a pointer to the next leaf node
This statement is correct.
Leaf nodes are linked together to support efficient sequential and range access.
Step 3: Conclusion.
The statement that is NOT correct about a B$^+$ tree is:
\[
\boxed{\text{Non-leaf nodes have pointers to data records}}
\]