As state leaders delay decisions on education funding, local communities are increasingly left to carry the burden.
President’s Note
With less than two months remaining in the fiscal year, North Carolina’s public schools are still operating without the certainty of a fully enacted state budget.
North Carolina remains the only state in the nation operating without a fully enacted state budget for this fiscal cycle. That failure to act is not just procedural—it is consequential. It delays decisions on teacher pay, limits investment in classrooms, and leaves school districts across the state planning in the dark.
At a time when other states around us are making strategic investments to strengthen their public schools and workforce pipelines, North Carolina is once again stuck in a familiar pattern: disagreement, delay, and uncertainty.
— Keith Poston, President, WakeEd Partnership
Where Things Stand
North Carolina’s education budget debate is no longer simply about numbers. It is about competing visions for the role of public education in the state’s future.
The Senate proposal continues a more restrained spending approach focused on limiting overall government growth and continuing scheduled tax reductions.
The House budget includes somewhat stronger investments in public education, including teacher pay increases and restoration of master’s pay, but still falls short of closing North Carolina’s growing competitiveness gap with other states.
Governor Josh Stein has proposed the most aggressive education investment plan, including larger teacher raises, expanded support staff, restoration of master’s pay, and efforts to improve teacher recruitment and retention statewide.
The divide between these proposals is substantial—not simply in dollars, but in what state leaders believe public education should be. And while state leaders continue negotiating, local school systems are already being forced to make real financial decisions.
That reality was underscored last week when the Wake County Board of Education approved moving forward with millions in budget reductions and adjustments in the WCPSS budget while simultaneously requesting additional county funding to sustain core operations.
In other words: local governments are making budget decisions before the state has finalized its own.
The reality: Even the most ambitious proposal would still leave North Carolina below the national average in teacher pay and near the bottom nationally in per-pupil spending.
The Bigger Picture
- Average NC teacher pay: approximately $58,000
- National teacher pay ranking: currently around 43rd and projected to fall to roughly 46th nationally nest school year.
- Gap versus national average teacher pay: approximately $12,000
- Per-pupil spending: consistently ranked near the bottom nationally
Even the most ambitious proposal currently under consideration does not fully close these gaps.
Meanwhile, neighboring states continue moving aggressively to recruit and retain educators.
South Carolina now surpasses North Carolina in both average teacher pay and beginning teacher pay. Virginia and Georgia have also made larger investments in educator compensation and workforce competitiveness in recent years.
North Carolina’s challenge is no longer theoretical. It is increasingly a regional competitiveness issue. At stake is not only the future of public education, but the strength of North Carolina’s long-term workforce and economic competitiveness.
Closer to Home: Wake County Is Already Feeling It
You don’t have to look far to see what state inaction looks like in real time.
Last week, the Wake County Board of Education voted to move forward with roughly $15–16 million in budget adjustments and reductions, including more than $10 million in cuts and operational changes, as district leaders work to close funding gaps driven largely by rising costs and uncertain state support.
At the same time:
- Superintendent Dr. Robert Taylor is requesting $25.3 million in additional county funding for schools
- County leaders are considering additional local revenue options—including a proposed 2-cent property tax increase—as they work to sustain school operations and other core services amid continued state uncertainty
- County leaders have acknowledged they are already backfilling hundreds of millions in costs not covered by the state
And an important point often gets missed:
This proposed tax increase is not solely about public schools. It also supports public safety, human services, and other county responsibilities.
But education is a major driver—because when the state underinvests, counties are increasingly forced to fill the gap.
If the state fully funded its public education responsibilities, local tax pressure would be lower—not higher.
What Happens Next?
The path forward is clear—but not easy.
First, the House and Senate must reconcile their differences. Despite one-party control of the legislature, there are significant divides over teacher pay, education spending, and broader budget priorities.
Only after legislative leaders reach agreement does the Governor formally enter the process.
Given current political realities, Governor Stein’s proposal is unlikely to pass as written. But elements of it could shape the final negotiations—particularly around teacher compensation and school staffing.
The central question now is straightforward:
How much—and how urgently—does North Carolina want to invest in public education?
Why It Matters
Budgets are statements of priorities.
Right now, North Carolina’s continued inability to pass a comprehensive budget—and the relatively modest investments under consideration—send a clear signal: public education is not being prioritized at the level required to remain competitive.
For teachers, it means continued uncertainty and lagging pay.
For school systems, it means planning without clarity.
For communities, it means growing pressure on local funding.
And for students, it means missed opportunity.
The Bottom Line
This is no longer just a debate about how much to spend.
It is a debate about who ultimately pays for public education.
Right now, North Carolina is making that decision by default—through delayed budgets and continued state underinvestment.
The result is predictable:
- School districts making cuts to stay afloat
- Counties raising taxes to fill the gap
- Communities paying more for less certainty
North Carolina doesn’t have a revenue problem when it comes to public education.
It has a priority problem.
Because if the state fully met its responsibility, Wake County would be under far less pressure to raise local taxes simply to maintain core services.
Until that changes, we should be clear about what’s happening:
The state isn’t saving money.
It’s sending the bill somewhere else.