As the year ends without a ruling on Leandro, a state budget, or clarity on the future of key federal funding streams, uncertainty continues to ripple across North Carolina’s public schools. Even as state leaders take steps to revisit how success is measured, stable and equitable investment remains essential in the year ahead.
Implications of Lower Property Taxes
The bipartisan House Select Committee on Property Tax Reduction and Reform met this week to begin reviewing North Carolina’s property tax laws, with the stated goal of addressing housing affordability. Property taxes are a local revenue source–not a state one–and typically support essential services such as public schools, parks, and public safety. As lawmakers explore options for tax relief, they will also need to weigh how those changes could affect the stability of funding for schools and other local services that communities rely on every day.
No Leandro Decision
The North Carolina Supreme Court issued its final opinions of the year, but the long-awaited Leandro decision was not among them. The Leandro case began in 1994, when families and school districts in low-wealth counties sued the state, arguing that despite taxing residents at higher-than-average rates, they lacked sufficient resources to provide students with a sound basic education as required by the state constitution. More than three decades later, the case remains one of the most consequential education policy issues in North Carolina.
The court heard oral arguments in February 2024 but has yet to issue a ruling. During this continued legal uncertainty, North Carolina ranks near the bottom nationally for teacher pay and last in the nation for funding effort, highlighting how strained the system remains. Educators and community organizations have expressed growing frustration–not only with the unresolved constitutional questions, but also with the absence of a new state budget, which has required local education agencies to operate under last year’s funding levels while costs continue to rise.
Accountability Task Force
Amid chronic underfunding, state education leaders recognize the importance of assessing student learning in meaningful ways. The Department of Public Instruction has launched a broad and diverse task force, including legislators, district leaders, educators, parents, students, and business representatives, to redesign North Carolina’s school performance and accountability system. The goal is to produce a more accurate, holistic picture of teaching, learning, and readiness for college or career.
Within federal guidelines, states have significant flexibility to shape accountability systems that reflect their values and priorities. DPI’s task force plans to research and propose a new model, pilot it, make revisions, and present a framework for legislative adoption, targeting statewide implementation in the 2027-28 school year.
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