March 29, 2025

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Public Schools Face Deficits While Private Schools Profit

Public school districts across the state are working through their budget
planning for next year facing threats of looming budget shortfalls expected
from the loss of federal funds and the revenue shortfalls predicted at the
state level. Some, like Wake County, which announced a [7]hiring freeze
earlier this month, are already taking measures to cut costs.

Wake County’s Board recently heard a presentation from staff that proposes
[8]$18.4 million in cuts for next year. As part of the cuts, the county may
eliminate employer contributions to employee dental insurance. The county
is also looking to reduce maintenance spending even though it has a $600
million backlog of maintenance needs and broken HVAC systems have caused
several schools to lose instructional time when students had to be sent
home early.

In January, Buncombe County and Asheville City Schools [9]lost $4.7 million
in local funding from county commissioners due to revenue shortfalls caused
by Hurricane Helene.

Winston-Salem-Forsyth is [10]cutting $8 million in the current school year
and plans to cut $16 million more next year.

Charlotte-Mecklenburg is juggling the[11] loss of federal ESSER funds and
other federal cuts along with a need to raise teacher pay to attract and
retain quality educators.

Looming over budget considerations for public schools across the state is
the executive order recently signed by President Trump to dismantle the
U.S. Department of Education. With about [12]$1.5 billion coming from
federal funds annually, districts have a lot to lose if the new
administration decides to cut all of its current programs. Teacher
education programs in the state have already [13]lost more than $90 million
in federal grants in an early round of cuts just days after Secretary
McMahon was confirmed.

In a sharp contrast to the belt-tightening at public schools across the
state, private schools are experiencing a gold rush thanks to the voucher
expansion passed in 2023 and funded to the tune of $616 million in
2024-25.

According to a recent presentation by the [14]NC Fiscal Research Division,
the base budget appropriation for the state’s two voucher programs in
2025-26 is $731 million.

By making vouchers available to all families regardless of whether the
student has ever attended a public school, the NCGA added a new burden on
its taxpayers—paying for private school tuition. According to the state
constitution, the legislature is responsible for funding a system of PUBLIC
schools, NOT private schools.

Some private schools have taken full advantage of the state’s generosity by
raising tuition prices and (strongly) encouraging the families of all
students to apply for a voucher regardless of income level or financial
need.

For example, in Beaufort County, the three voucher-accepting private
schools all raised tuition to closely match the maximum voucher amount:
$7,468/student. Tuition was much lower in the years leading up to the big
expansion.

* Unity Christian increased its tuition from $4,800 in 2023-24 to $7,200
in 2024-25, a 50% increase.
* Pungo Christian Academy had increased its tuition $237 in 2022-23, then
$318 in 2023-24 and a whopping $2,107 in 2024-25 once vouchers became
universal.
* Terra Ceia’s 2023-24 tuition was aligned with the 2023-24 maximum
voucher amount, so its year-over-year increase was 15%.

As a result, the state funds going to these schools increased dramatically.
Pungo's voucher funds grew 549% - from $162, 577 in 2023-24 to $1,054,830
in 2024-25.

In Wake County where tuition is often far higher for private schools, St.
David’s provides a striking example of how the state is subsidizing tuition
increases. The school’s average tuition was $24,521 in 2022-23 and $25,769
in 2024-25. The $1,238 average one-year increase was just 5%, but the
dollar amount is far less than the $3,360 voucher that the highest income
families (making $260,000/year or more) receive.

In 2023-24, St. David’s enrolled zero voucher-receiving students, probably
because all families were too wealthy to qualify for a voucher. With the
income cap lifted, St. David’s has received $1,144,362 in taxpayer-funded
vouchers in 2024-25 as of February.

Public Schools First has compiled data on the [15]funds received by each
voucher-accepting school in the state since the Opportunity Scholarship
program started in 2014. Take a look at [16]this and other resources on our
website and share!

Private schools have no accountability for how taxpayer funds are used. As
the data show, many schools are taking advantage of the NCGA's massive
expansion by increasing tuition to maximize revenue. Even schools that
primarily or exclusively serve wealthy families are receiving tax dollars.

While public school districts are struggling to fix their HVAC systems,
while the NCGA chooses to subsidize private school tuition!

Support the Voucher School Accountability Act

Let [17]your legislators know you support SB744! This week was the deadline
for introducing bills in the Senate, so there was a lot of action.
[18]Senate Bill 744 "Voucher School Accountability Act" recognizes that
just as the state holds public schools accountable for how tax dollars are
spent, it should also hold private schools accountable. This is a
common-sense bill that should sail through both chambers if lawmakers are
serious about about using our tax dollars responsibly and making sure that
every tax dollar is fully accountable to tax payers.

The bill changes the language of current law to build in fiscal checks and
academic standards. Vouchers will be awarded on a monthly basis (changed
from twice/year) to allow for students entering or leaving private schools.

Voucher-accepting schools must meet the following obligations:
* Limit annual tuition increases to 5%.
* Follow the local school district's policy of conducting criminal
background checks on all staff.
* Administer the same tests required by state law for students in grades
three and higher.
* Comply with state standard course of study.
* Conduct a financial audit; schools receiving more than $250,000 in
voucher funds must publish its expenditures in the state reporting system
(Uniform Education Reporting System).
* At least 50% of the teaching staff must be licensed teachers.
* Maintain a student population that reasonable reflects the racial and
ethnic composition of the general population residing within the local
school district.

And more...

Contact [19]your legislators to urge them to SUPPORT this bill!

Legislative and SBE Updates

The legislative session continues on Monday. Keep an eye on the
[20]legislative calendar as changes occur frequently.

Read our [21]Week in Review for a summary of legislative actions and the
status of bills.

[22]Senate Bill 516 "Women's Safety and Protection Act" defines a number of
terms such as sex, gender, girl, boy, male, female, etc. and establishes
rules for who is allowed in restrooms, changing facilities, or sleeping
quarters. Hopefully a majority of our lawmakers learned a lesson through
the HB 2 debacle a few years ago and will let this bill stay dormant.

[23]House Bill 445 "Fairness & Transparency in Education Salaries" also
reinstates master's pay for teachers and pays school social workers on the
master's salary scale. In addition, it requires publication of minimum
salary schedules for occupational and physical therapists. This bill that
supports educators and moves salaries to a more professional level.

[24]House Bill 523 "School Social Workers/Master's Pay" reinstates master's
pay for teachers and allows all school social workers and nurses to be paid
on the master's salary schedule.

HB445 and HB523 would help schools recruit and retain high quality
professionals.

In Case You Missed It

[25]When a hurricane washes away a region's child care system

[26]Vouchers fuel private school tuition hikes

[27]Families tell legislators they do not provide enough support to people
with disabilities

[28]What was school like for students with disabilities before IDEA?

[29]New survey finds Medicaid cuts would devastate school staffing and
services

Presidential Actions Threaten Federal Funding—What's at Stake for Kids——

by Alexandro Forter Sirota, NC Budget & Tax Center

President Trump signed into law last week an [30]Executive Order on closing
the Department of Education that furthers his end goal: gutting our
country’s public education system. This comes after putting the department
under the leadership of Secretary Linda McMahon, an ardent advocate for
expanding private school vouchers with next-to-no experience in public
education.

The vast majority of students learn in public schools, meaning the vast
majority of families and businesses rely on them. Every school and
community will be impacted by bigger class sizes, the loss of qualified
educators, and the lack of support for college and career training that
will stem from these cuts. Educational attainment will suffer and over the
longer term, our society will have fewer people prepared to participate in
our democracy, engage in healthy debate, lead our communities in solving
big problems, or start businesses that innovate to meet our state’s needs.
As if those impacts are not enough, cuts to public school funding will lead
to job losses for public school employees from teachers to bus drivers,
causing economic harm to ripple through our communities.

[31]READ MORE

Did You Miss Our Webinar?

This week, Dr. Elena Ashburn, Governor Stein's new Senior Education Policy
Advisor, joined Public Schools First NC and NC PTA to discuss the state of
education in North Carolina and the administration's plans for the upcoming
year.

It was a great discussion! If you didn't get a chance to join it live, you
can still watch it on our YouTube channel.

[32]WATCH the WEBINAR HERE

Mark Your Calendar!

April 24, 7:00-8:30 pm: Resilience and ACES. Learn about Adverse Childhood
Experiences (ACES) and resilience. Join us for this award-winning,
60-minute film, Resilience: The Biology of Stress & The Science of
Hope. This documentary examines how abuse, neglect, and other adverse
childhood experiences affect children’s development & health outcomes in
adulthood. This powerful movie is a conversation starter and a perspective
changer.

[33]REGISTER HERE

Words to Remember

"Millions of families of color as well as poor whites stand to lose as they
truly have no choice other than to enroll their children in underfunded,
segregated schools, public, private, or charter. Choice has provided a
safety net for some but the majority are in peril."

— Jon Hale, The Choice We Face p. 165

Help us support public schools!

Public Schools First NC is a statewide nonpartisan, 501(c)(3) nonprofit
focused solely

on pre-K to 12 public education issues. We collaborate with parents,
teachers, business and civic leaders, and communities across North Carolina
to advocate for one unified system of public education that prepares each
child for productive citizenship.

[34]DONATE HERE

[35]www.publicschoolsfirstnc.org

Questions? Contact us today at [email protected]

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