This week, Governor Stein released the first of several budget proposals ahead of the General Assembly’s short session. The $1.4 billion “Critical Needs” stopgap plan for FY 2025 includes retroactive educator pay raises. However, with no budget votes taken since October and concerns raised by leadership in both chambers, lawmakers are unlikely to take up the proposal in its current form.
The Governor’s Critical Needs Budget Proposal
Governor Stein’s proposal focuses on what his office identifies as the most urgent funding needs, including Medicaid, public safety, state employees, and educators. For educators, the plan proposes a 13% increase in starting teacher pay, which would bring North Carolina closer to the top in the region, with an average starting salary of about $49,518 when state and local supplements are included. The proposal would also provide teachers and instructional support staff with an average raise of 5.8%, restore master’s pay, and address mid-career plateaus in the salary schedule so that more experienced teachers see meaningful increases.
Several scenarios could unfold in the coming weeks. Lawmakers could consider the proposal as a temporary measure until a broader budget agreement is reached, potentially with revisions such as additional guardrails on certain Medicaid-covered drugs or renewed debate over restoring master’s pay. If adopted, these provisions would likely be applied retroactively to reflect the full FY 2025 period while lawmakers continue negotiations on a comprehensive FY 2026 budget.
Alternatively, the proposal may not receive a vote. House leadership has raised concerns about the proposal’s Medicaid funding assumptions and have expressed interest in pursuing even larger teacher raises, while Senate leadership has continued to emphasize fiscal restraint. In that case, the General Assembly would address a comprehensive budget during the short session, with any action likely focused on FY 2026.
Blue Ribbon Commission
Beyond budget negotiations, state leaders also announced a new bipartisan commission focused on examining the structure and implementation of public education in North Carolina.
The 30-member commission–jointly appointed by Governor Stein, Senate President Pro Tempore Phil Berger, and House Speaker Destin Hall–includes business and nonprofit leaders, educators, and lawmakers. It will study both the structure and implementation of public education in North Carolina, examining issues such as teacher preparation and advancement, administrative operations, educational leadership, and accountability. The commission is expected to deliver findings and recommendations by December 2026.
While commissions can play an important role in shaping education policy, North Carolina has convened multiple education commissions over the past several decades to examine similar challenges. As this new group begins its work, many will be watching closely to see how its findings translate into policy action and sustained investment that adequately and equitably funds public schools.
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