June 28, 2025

[1]www.publicschoolsfirstnc.org
[2]Facebook [3]Instagram [4]YouTube [5]LinkedIn [6]TikTok

School Districts Struggle With Budget While Vouchers Grow

In advance of their July break, lawmakers failed to agree on a state budget
even though the target for completion was June 30, the end of the fiscal
year. Absent a new budget, departments across the state and all county
commissions and public school districts have had to contend with financial
uncertainty as they finalize their own budgets.
* Will state lawmakers finally give educators a raise that moves them
toward a more professional salary and parity with our neighboring states?
* Will the state step in to offset federal funding cuts in education and
other areas? North Carolina is poised to lose millions in federal funding.
What will happen to the programs lost to these cuts?
* Essential nutrition programs are facing funding cuts. Will North
Carolina make up for the lost federal funding?
* Will lawmakers curtail the excesses found in the private school voucher
programs and shift funds to public education where the funds are
desperately needed?

The good news is that lawmakers are [7]continuing to pass funding measures
for Hurricane Helen relief, with millions headed to public school
infrastructure projects. However, the total spent to date (about $1.9
million including the recent $500 million) falls far short of initial
estimates of the cost of recovery.

The state’s strategy had been to wait for federal funding to come in before
making large state investments. But with the erosion of federal support for
disaster relief, the state is left funding a larger portion of the
recovery. As a result, recovery will take much longer than it would if more
state funds had been provided immediately (and federal funding were
robust).

Lack of financial commitment to adequately funding public education,
combined with appropriating hundreds of millions for private schools has
caused school districts and county commissions across the state to make
difficult program cuts or pass increased costs along to families.

At their recent meeting, Wake County School Board member Lynn Edmonds
pointed out that while the district is faced with having to increase school
meal prices, Wake County private schools have received millions more in
tuition payments this year. You can watch her very pointed and informative
comments below.

[8]video

County Commissions across the state have employed a variety of strategies
to help address budget shortfalls.

In [9]Buncombe County, commissioners increased the property tax by 2.90
cents per $100 appraised value and made up for $11.4 million in lost
revenue (Helen impact) by cutting budget and positions. Several local
districts (e.g., French Broad fire district) also increased tax rates to
make up for budget shortfalls.

In contrast, private schools are receiving millions more from the state.
This year alone, [10]private schools in Buncombe County have received $11.2
million in tuition payments from the state, nearly enough to make up for
the revenue lost to Hurricane Helene. Since the voucher program started,
they have received more than $27.7 million in taxpayer funds from the
state.

How much did private schools receive in your county? [11]Find out HERE.

There is still time to let legislators know your funding priorities for our
public schools!

After their July break, the 2025-26 budget conference committee will
reconvene to keep working on a budget. The committee is composed of
legislators appointed by House and Senate leaders.

The conferees must reconcile differences between the House and Senate
budget proposals and your views could help them decide. This is a great
time to let them know your priorities for the education budget.

Currently there are significant differences between the Senate and the
House on how to pay teachers and fund public schools.

By engaging with the conference committee members, you have the opportunity
to advocate for priorities that are important to you. Your voice, as a
constituent, holds weight and helps inform their policy choices.

The list of lawmakers appointed to be on the conference committee to create
the final budget was released on June 12, 2025. [12]Use these emails for
the committee members.

Top Public Education Priorities:

While there are many funding needs in our public schools, we suggest five
that are known to significantly impact a student’s ability to succeed in
school.
1. Improve teacher pay. A qualified, experienced teacher is the strongest
in-school predictor of student achievement. Without competitive
compensation, we cannot recruit, retain, or respect the professionals our
students need to be prepared for college and career in the 21st century.
2. Fully fund NC-PreK to give eligible four-year-old children a
high-quality early childhood education that prepares them for success in
kindergarten and beyond.
3. Increase the number of helping professionals in public schools: school
social workers, school psychologists, and school nurses. These
professionals are vital in fostering a child’s emotional well-being.
4. Provide a teacher assistant in EVERY K-3 grade class; limit class size
to 25 for grades 4 and 5.
5. Provide meals at no-cost to every student. One in five children in NC
live in poverty and face hunger daily. NC’s child poverty rate ranks 10th
highest in the nation. By providing healthy and accessible meals, schools
can create a more equitable and supportive environment where all students
have the opportunity to thrive.

TELL CONGRESS NO FEDERAL SCHOOL VOUCHERS

A massive federal voucher program is moving through Congress. The US House
Ways & Means Committee has approved the nation’s first federal voucher
program titled “Qualified Elementary and Secondary Education
Scholarships,” which is now rolled into the “one big, beautiful” tax bill.
The 400+-page bill seeks to make massive cuts to Medicaid and food stamps
while funding a voucher program that would cost US taxpayers a projected
$20 billion over the next four years. This federal voucher program would
create a 100% tax break for the wealthy, allowing them to divert their
taxes to private schools with zero accountability or transparency.

According to the Advancement Project, the proposal would give handouts to
those who already attend private school and can afford private school
tuition as well as would fund private schools that pick, choose, and
exclude children.

Federal Vouchers At a Glance
* The House proposal creates a tax shelter that provides $5 BILLION per
year for four years ($20 BILLION!) for wealthy donors.
* Provides yet another tax shelter for the wealthy by
allowing dollar-for-dollar tax credits for donors who give money to
organizations that distribute vouchers.
* Diverts $5 billion tax dollars a year that could support public
schools.
* Includes zero financial or academic accountability for private schools
and no transparency for the use of taxpayer dollars.

How voucher program works:

Gives Federal Tax Credit: Would create a federal tax credit for individuals
who donate to Scholarship Granting Organizations (SGOs). The donations are
offset by a dollar-by-dollar credit off the donor’s federal tax liability.
SGOs are singled out as the only type of nonprofit that offers a full
rebate on taxes due. Donations to all other nonprofits like local veterans
groups, animal shelter, food bank, or church only receive a tax deduction
of about $.37 on the dollar. This diversion of tax dollars from the federal
government reduces funding they have available for other areas like public
school programs that provide special education services, help economically
disadvantaged students, and provide food assistance programs for students
and their families.

Funds Private School Vouchers: Scholarships provided by these SGOs can be
used by eligible students to attend private schools. The program sets
eligibility for vouchers high enough that affluent families are likely to
benefit more, as seen in existing “universal voucher” states.

Contact your federal lawmakers to voice your strong opposition to tax cuts
for our wealthiest citizens.

Please call today:
* Ted Budd DC: (202) 224-3154
* NC: (336) 941-4470, (828) 333-4130, (984) 349-5061, and (910) 218-7600
* Thom Tillis DC: (202) 224-6342
* NC: (704) 509-9087, (252) 329-0371, (828) 693-8750, (336) 885-0685, and
(919) 856-4630

Then send an email! You can customize the template we have created
[13]here.

[14]Send a letter NC's US Senators

Did You Know!

Did you know that North Carolina has spent more than $1 Billion on private
school tuition vouchers? Our public schools should have received those
funds! North Carolina has spent more than $105 million on private school
tuition in Wake County alone.

Check out how much your county has received[15] HERE. Scroll over the state
to see each county.

Legislative and SBE Updates

Legislative Calendar: Agendas, streaming information, and updated
information are found on the [16]legislative calendar. Legislators left
town 6/26 for at [17]least a two-week break.

See our [18]Week in Review for a summary of bills and bills to watch.

Bills [19]Pending the Governor's Signature.

Sustain the Governor's Veto of SB 50

The Governor has vetoed Senate Bill 50 ("Freedom to Carry Act") which would
allow anyone 18 or older to purchase and carry a concealed handgun without
obtaining a permit, without taking a firearms training course on how to use
and store handguns, AND without passing a background check.

Younger, untrained people who have not passed a background check can now
legally carry a hidden, loaded handguns into public places such as a
restaurant, a place of worship, concert, or just on the street!

PLEASE ASK LEGISLATORS TO SUSTAIN THE VETO!

CURRENT LAW: The current law limits concealed handgun carry permits to
those 21 or older who have obtained a permit and have passed a criminal
background check.

North Carolina currently ranks 16th in the U.S. for school shootings. Let's
not make the situation worse! Other states that have weakened or eliminated
their concealed carry permitting system have experienced 10.8% increases in
firearm homicide rates. Weakening or eliminating the concealed carry
permitting is also associated with a 29% increase in firearm violent
crimes.

[20]Please email your legislators, ask them to SUSTAIN the Governor's veto.

ICYMI

[21]Ohio's EdChoice voucher program ruled unconstitutional.

Bill to [22]end DEI in public schools sent to Governor to sign.

[23]Jackson County votes to exit Fontana library system amid LGBTQ+ book
display controversy.

The US Supreme Court ruling: [24]Parents can opt kids out of classes with
LGBTQ book characters.

US Dept. of Education May Defy Congress and [25]Cut $5 Billion More From
Schools.

[26]US Senate Parliamentarian advised that provisions like the federal
vouchers tax credit may have to be removed from the H.R.1 (One Beautiful
Bill Act) since it creates a new federal subsidy for private and religious
schools.

NC lawmakers send [27]new school cellphone bill to Stein to sign.

North Carolina[28] [29]legislatures take two week break[30] after passing
Helene aid package with no small business relief, but still no state
budget.

What is NC PEN?

[31]NC PEN is the NC Public Education Network, a resource to
help connect all those who are passionate about our public schools –
students, parents, educators and the general public all across NC. Contact
folks in your community and join together to advocate for better teacher
pay, more support staff in our schools like nurses, social workers and
school psychologists and no costs meals for all students.

Go to this link and click on a county to view the groups we know about that
are working in that county.

Help us GROW this network and make it stronger. If you know a
group supporting or working with the public school system in a particular
county that we should include, please contact us
at [32][email protected]. 

What is NOT in the "Draft" Budget So Far...

What’s Not In The Budget:

Average Pay Increase for Teachers (8-10%)

Funding for Meals at No Cost for all students

A Teacher Assistant in Every K-3 Grade Class

Cost of Living Increase for Retired Educators

Funding to Clear the NC Pre-K Waitlist

Affordable Health Care Costs for Educators

School Staff Raises that Cover the Cost of Inflation

Money to Help Districts Replace Failing HVAC Systems

More School Nurses, Psychologists & Social Workers

What IS in the Budget:
* $1.36 Billion for School Vouchers In Next 2 Yrs
* Another reduction to the NC Corporate tax rate
* More Tax Cuts for the Wealthy

While the legislators are debating what to fund in the budget, this is a
great time to let them know your priorities for education! Please [33]sign
our petition or email the conference committee appointed to reconcile the
budget (emails are [34]here).

[35]Send a letter to Budget Conference Committee

Request A Speaker!

Need a speaker for your next event or group meeting? PSFNC welcomes the
opportunity to speak to your group or organization on public
education-related topics.

We offer our programs virtually to improve accessibility and attendance and
therefore extend your reach. Our services are free of charge but may
require travel-related expenses if the program is in-person.

Email us at [email protected] for more information.

Words to Remember

“At the end of the day these private corporations just want to get their
hands on a lot of money that should be going to public schools.”

Dr. Josh Cowan, author of [36]The Privateers

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.

[37]DONATE HERE

[38]www.publicschoolsfirstnc.org

Questions? Contact us today at [email protected]

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