June 28, 2025

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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 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. 

video

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

In 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, 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? 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. 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 here.

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 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 legislative calendar. Legislators left town 6/26 for at least a two-week break.

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

Bills 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.

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

ICYMI

Ohio's EdChoice voucher program ruled unconstitutional.

Bill to end DEI in public schools sent to Governor to sign.

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

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

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

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 new school cellphone bill to Stein to sign.

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

What is NC PEN?

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 [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 sign our petition or email the conference committee appointed to reconcile the budget (emails are here).

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 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.

Questions? Contact us today at [email protected]