This week, the General Assembly advanced several major bills related to government structure, school choice, and tax policy, while budget negotiations remain unresolved and public schools continue operating without updated state funding.
Shifts in Governance and State Oversight
HB 144, a proposed constitutional amendment currently moving through House committees, would change how members of the State Board of Education are selected. Rather than being appointed by the governor and confirmed by the General Assembly, members would be elected from districts established by the legislature. The bill also specifies that those district maps would not be subject to the governor’s veto. Supporters say the proposal would increase accountability and strengthen public input in education governance. Critics argue the proposal could make the State Board more political. Because lawmakers would control how districts are drawn, the maps could be gerrymandered to influence who serves on the board and how education policy is shaped statewide–similar to what North Carolina saw with redrawn congressional maps last year.
Tax Policy, Revenue, and Public Investment
Lawmakers also advanced several proposals that could have major funding impacts on public education and other public services.
Governor Stein’s veto of HB 87 was overridden in the House and now heads to the Senate, where it is also expected to pass. The bill opts North Carolina into a federal program that gives tax breaks to people who donate money for private school scholarships. Supporters view the measure as an expansion of school choice, while opponents have raised concerns about the long-term funding implications for public education and the reduction in federal revenue available for public services. Questions also remain about the program’s long-term costs and implementation. Because the tax credits are uncapped, some fiscal estimates project billions of revenue losses at the federal level over time. North Carolina ranks last in the nation in education funding effort, and programs like this reflect policy choices on how taxpayer dollars are allocated between public and private education priorities.
At the same time, lawmakers approved two constitutional amendments tied to broader budget negotiations: HB 1089, which would limit property tax levy increases, and S 1080, which would cap the state personal income tax rate. Supporters argue the proposals would provide taxpayers with predictability and financial relief. However, concerns remain about how reduced state and local revenue flexibility could affect long-term investments in public services. Analysts have also noted that the benefits of recent and expected tax cuts have not been evenly distributed, with higher-income households generally receiving larger financial gains than lower- and middle-income families.
Property taxes remain the single largest source of local government revenue, funding schools, infrastructure, emergency services, and public safety. As voters consider these measures in November, the debate will likely center on how to balance the appeal of lower taxes with the long-term responsibility of sustaining strong public schools and essential local services.
Lawmakers were dismissed for a break and will not return until June.
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