North Carolina legislators returned to Raleigh this week, and Governor Stein released his latest budget proposal. Typically in the second year of the legislative biennium, a new state budget would already be in place, with the short session focused on technical adjustments. However, without an enacted budget, this year’s short session is expected to take on added significance.
Short Session Legislative Agenda
Early priorities for lawmakers have centered less on the full budget and more on immediate funding priorities, particularly Medicaid, which is projected to run out of funds next month. A vote to address this gap is expected soon. In addition to Medicaid funding–and the possibility of advancing a comprehensive budget–lawmakers are also expected to take up other key issues this session, including recently approved property tax proposals from the House Select Committee on Property Tax Reduction and Reform. These include a potential constitutional amendment to limit property tax growth and changes to affordable housing tax exemptions. Lawmakers may also consider several veto overrides, including legislation that would opt North Carolina into a federal voucher program.
Budget Negotiations
At the Education Policy Fellows Raleigh Retreat this week, legislators shared insights into the legislative process, advocacy strategies, and expectations for the short session. Panelists, including Senator Kevin Corbin, Representative Monika Johnson-Hostler, Representative Dante Pittman, and Senior Policy Advisor to the House Speaker, Jeffrey Elmore, emphasized a shared focus on advancing policies they believe best serve North Carolinians, including public education. While priorities vary, ranging from expanding Advanced Teaching Roles to increasing teacher salaries, education remains a central component of ongoing budget discussions.
These conversations align with Governor Stein’s FY 2026-27 budget proposal, which outlines significant investments in public education with a focus on educator compensation, student supports, a revised funding model for exceptional children, and school infrastructure. The plan includes an average teacher pay increase of 11%, raises starting salaries to the highest in the Southeast, eliminates mid-career pay plateaus, and reinstates master’s pay, alongside bonuses for school and state employees. It also expands Advanced Teaching Roles, invests in professional development through the NC Center for the Advancement of Teaching, and provides targeted support for high-poverty and hard-to-staff schools. Stein’s budget would also establish a new weighted funding formula for students with disabilities based on the frequency, intensity, and duration of required services. Additional investments include funding for school facility repairs, universal free breakfast, and a school resource officer in every middle school with enhanced training standards. The proposal also calls for a moratorium and restructuring of the Opportunity Scholarship Program, limiting new awards and refocusing eligibility on lower-income families.
The General Assembly will now determine how–or whether–to incorporate elements of the governor’s proposal into a final budget. Regardless of the outcome, the proposal highlights key policy considerations around strengthening the educator workforce, targeting resources to student needs, and balancing broader investment priorities within the broader education landscape.
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