NC Senate budget devotes $24 billion to K-12 education, funds Opportunity Scholarships

North Carolina Senate lawmakers have proposed a $24 billion K-12 education budget for the new biennium that includes across-the-board raises for teachers and school personnel, funds the school choice Opportunity Scholarship Program, and invests in classroom resources, while addressing workforce development initiatives.

The proposal, unveiled on Monday evening, includes an average 2.3% pay increase for public school teachers in the 2025–2026 fiscal year and an overall average increase of 3.3% over the biennium. Additionally, teachers would receive a $3,000 bonus spread out over the two years. Noncertified school personnel would also benefit from the Senate’s proposal, receiving a 1.25% pay increase.

Gov. Josh Stein’s proposed budget includes significantly larger salary hikes, at an average increase of 10% for teachers over the biennium.

“Our K-12 public schools, UNC System campuses, and community colleges are incredible assets to our state, and our budget recognizes that by increasing pay, supporting student outcomes, and improving workforce development offerings,” said Senate majority leader Michael Lee, R-New Hanover, in a statement.

The budget continues to fund the Opportunity Scholarship Program, the state’s voucher program meant to enable K-12 students to attend an eligible private school of their family’s choosing. Stein’s budget proposal puts a moratorium on new students in the program and eventually phases it out entirely.

Another school-choice victory in the budget is shifting more responsibility for charter-school governance away from the State Board of Education to the Charter Schools Review Board. The state board, controlled by Democrat appointees, has been at odds with the legislature over approvals for new charters for a number of years now.

Among other education-related initiatives, the Senate budget expands early literacy programs to support students in fourth and fifth grade. The effort is built on a successful campaign for K-3 students to strengthen foundational literacy skills.

The budget also introduces funding for teacher development and advancement programs. It allocates $16.2 million in the first year and $20.1 million in the second year for salary supplements of up to $10,000 for teachers participating in the Advanced Teaching Roles Program. An additional $6.5 million has been earmarked to expand grant funding for the Advanced Teaching Roles Program. The proposal also reimagines the Teacher Apprenticeship Program by transitioning it under ApprenticeshipNC at the Community College System.

As for higher education funding, the budget totals $10 billion in spending on the UNC System and community colleges. It expands the popular NC Promise program, which reduces tuition for in-state students to $500 per semester. To balance these costs, tuition for out-of-state students at NC Promise institutions will increase slightly from $2,500 to $3,000 per semester. The budget also includes $10.6 million in recurring funds starting in FY 2026–27 to support NC A&T’s Agriculture Research and Extension Services Program.

The proposal also emphasizes accountability, directing the UNC Board of Governors to review the system’s academic programs and eliminate low-performing or redundant offerings. The budget aims to align programs with student outcomes and cost efficiency.

For community colleges, the Senate’s budget includes $36.5 million for new career pathways in healthcare, engineering, advanced manufacturing, trades, IT, and transportation through the Propel NC initiative. Another $12 million over the biennium will support the implementation of programs in high-demand career fields requiring significant startup investment.

There’s also an emphasis on inclusivity, with $3.85 million allocated to expand programs for students with intellectual and developmental disabilities, bringing the total annual allocation to $7.8 million. These efforts reflect the push to create opportunities for all North Carolinians to enter the workforce.

“Community colleges across our state are becoming integral partners in supporting business growth and development,” said Lee. “We really want to continue building on those efforts and support high-demand industries and fields.”

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