This week, the General Assembly completed its first successful veto override of the session, opting North Carolina into a federal voucher program. While lawmakers have yet to release details of a long-overdue state budget, committees continue advancing legislation that could shape future budget negotiations. One such proposal, the K-12 Innovation and Transformation Act–an omnibus education bill sponsored by Senators Lee, Jones, and Corbin–would fund several education initiatives and make broad changes to state education policy.
North Carolina Opts in to the Federal Voucher Program
Governor Stein’s veto of HB 87 was overridden in both chambers–opting North Carolina into a federal program that gives tax breaks to people who donate money to Scholarship Granting Organizations, or SGOs. While the program was designed for private schools, it may be possible to use the voucher money for public school students. Governor Stein’s statement on the override indicates that he will be working on a plan to ensure public school students benefit from this program.
The Education Law Center has identified several concerns with voucher programs, including the diversion of public funds to private schools, weaker accountability requirements, potential civil rights implications, and research suggesting mixed or negative academic outcomes for participating students.
The Department of Treasury is expected to release the program’s guidelines later this summer. Under new state law, the North Carolina State Education Assistance Authority (NCSEAA) will administer the program and determine which SGOs qualify for the tax credit. NCSEAA also manages the state’s Opportunity Scholarship Program, or private school voucher program, which received more than $800 million in appropriations last year. For comparison, that amount exceeds the cost of the teacher pay proposals currently under discussion in budget negotiations.
K-12 Innovation and Transformation Act
An education omnibus bill moved through the K-12 Senate Education Committee this week. The bill represents a broad effort to move North Carolina toward a more flexible, competency-based, and career-connected education system through investments in teacher pipelines, STEM pathways, and innovative learning models.
One of these models is the Advanced Teaching Roles (ATR) program, which allows school districts to create innovative compensation models that allow highly effective classroom teachers to impact an increased number of students. Advanced Teachers either teach an increased number of students, or become a lead classroom teacher among a group of teachers.
The proposed funding increase reflects growing legislative support for the ATR model following an NC State University evaluation that found positive impacts on student achievement, particularly in math and science. However, the evaluation also identified areas for improvement, including stronger state guidance, expanded program evaluation, better support for beginning teachers, improved data use, and closer collaboration with educator preparation programs. While the bill significantly expands funding (by more than $43 million), it does not directly address these implementation recommendations. As the program grows, much of that work will likely fall to the Department of Instruction (DPI) and participating districts to ensure expansion is accompanied by consistent quality and support.
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