Following this week’s elections, North Carolina’s legislative landscape has shifted. For over a decade and a half, Republicans have held a majority (or a supermajority) in both the NC House and the NC Senate. Tuesday, for the first time in 16 years, Democrats secured a majority in the North Carolina House, and are one seat away from a tie that would effectively give them a majority in the Senate, with votes in one district still being counted. Paired with Democratic Governor Josh Stein, this new balance of power alters the state’s legislative dynamic and could lead to significant changes to policies that have shaped public education over the past 16 years.
Looking Back on the Past 16 Years of Education Policy in NC
Over the past decade and a half, major policy shifts have fundamentally reshaped North Carolina’s public education system. Today, we’ll cover three of the most notable of these that could change under new leadership in 2027.
Tax Policy and State Investment in Public Education: Broad tax policy shifts lowered individual income tax rates and established a phase-out of the state corporate income tax. Concurrently, public school funding struggled to keep pace with growth and inflation. North Carolina currently spends significantly less per pupil than the national average and directs under 2% of its GDP to K-12 education, ranking last in the nation in both funding level and effort. As a result, local school districts rely heavily on county tax revenues to cover operational and facility needs that extend beyond their statutory capital responsibilities.
Changes to Educator Compensation: In 2013, North Carolina became the first state in the nation to eliminate master’s degree pay increases for teachers, contributing to a significant drop in the state’s teacher pay ranking nationally. Subsequent salary adjustments focused primarily on entry-level recruitment rather than veteran retention, establishing a schedule that freezes teacher raises between years 15-24 and caps overall pay after 25 years. These compensation policies exist alongside persistent workforce concerns. North Carolina’s teacher attrition rate exceeded 10% in 2024-25. Meanwhile, there have been major declines in traditional educator preparation programs and substantial increases in emergency/permit licenses.
Expansion of Private School Vouchers: The Opportunity Scholarship Program was created in 2013 as a targeted, private school scholarship for low-income families. In 2023, lawmakers expanded it into a universal voucher system, removing income caps and prior public school enrollment requirements. With over 100,000 scholarships granted last school year, the universal program costs roughly $600 million annually and is projected to total over $5 billion in state appropriations through 2032. Because the program is funded through a separate state appropriation, its growth represents an increasing commitment of public dollars to private education.
Looking Ahead: Potential Priorities for a Democratic-Led House
Inheriting the policy framework of the last 16 years, the House faces structural limitations alongside new legislative opportunities. House Democrats will now play an influential role in shaping the state budget, determining which education priorities receive attention and funding. Key areas of policy focus will likely include:
- Private School Vouchers: With Opportunity Scholarship enrollment and state appropriations growing substantially, lawmakers may examine the program’s expansion trajectory, revisit income eligibility, and consider stronger accountability and transparency requirements for participating private schools.
- Teacher Compensation: After more than a decade without master’s degree pay for most teachers and continued concerns about the veteran salary plateau, lawmakers may revisit how the state compensates, recruits, and retains experienced educators.
- School Funding & Resources: With North Carolina continuing to rank last nationally in funding levels and effort, increasing per-pupil investment will likely remain a central issue. Watch for proposals to strengthen funding for instructional support and school health personnel, teacher assistants, professional development, and district flexibility. At the same time, the recently passed amendments limiting state income and local property taxes will limit revenue available for major investments needed.
- Instructional Policy & School Governance: Recent legislation has expanded state requirements related to instructional materials, parental rights, and religious instruction. The House may seek to revisit how these policies are implemented, consider changes to existing requirements, and examine the balance between state oversight and local school district flexibility.
What Can Actually Change?
New party leadership in the legislature and new education committee chairs in both chambers will reshape policy priorities, but that shift will not guarantee immediate policy overhauls. If the Republican Senate majority holds, major legislative changes will require agreement across a divided General Assembly, while the state and local governments navigate the fiscal constraints reinforced by the recently passed constitutional amendments. The coming legislative session will test whether this new political balance can produce meaningful investment and policy changes to address longstanding challenges in public education.
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