As lawmakers focus on political theater over passing a budget, new reports show North Carolina ranks last in the nation for school funding level and effort. With declining student outcomes and a big drop in state revenue looming, the stakes for public schools have never been higher.
Legislative Priorities
Several state lawmakers showed up to Raleigh this week–not to advance the long-overdue state budget, but to hold a committee hearing on SB49, also known as the Parents’ Bill of Rights. The hearing quickly devolved into spectacle: raised voices, thrown books, and combative questioning, which some described as “good TV.” Yet this dramatic display reveals a deeper problem. Instead of passing a budget or fully funding Medicaid expansion, lawmakers continue prioritizing cultural wedges and gerrymandering over the foundational work of governing.
NC Ranks Last in the Nation
This neglect is especially alarming in light of the Education Law Center’s newly released 2025 Making the Grade school finance report. North Carolina ranks 50th in the nation on two of three fairness measures:
- Funding Level (per-pupil revenue from state and local sources)
- Funding Effort (the share of our GDP dedicated to PK–12 public education)
In short: North Carolina is last in the country because we fail to fund our schools at a level remotely aligned with our economic capacity–leaving students without the resources they need to succeed.
Yes, Funding Does Matter
Extensive research from California’s school funding reform–the Local Control Funding Formula–shows what happens when states invest meaningfully in students. Districts that received an additional $1,000 per pupil for three consecutive years gained the equivalent of a full grade level in both math and reading, saw higher college-readiness rates, and experienced reductions in suspensions, expulsions, and grade repetition.
These results indicate that sustained school investment and smart education funding formulas can move proficiency rates in the right direction. North Carolina’s students are showing tremendous gains in some measures, like graduation rates and AP course enrollment. Meanwhile, other results paint a more troubling picture– this year’s NAEP results show that only 30% of our 4th grade students are proficient in reading (and has steadily declined since 2017).
The path forward is urgent–but achievable. By fully funding the state budget and committing to long-term investment in schools, North Carolina can close learning gaps, support every student, and move closer to its 2030 goal of being among the best in the nation . With these investments, students will have the resources they need to thrive, and the state can transform its standing from last to a model for equity and excellence.
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