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October 25, 2025

[1]www.publicschoolsfirstnc.org
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NCGA Adjourns With No Budget, Educators Left with Stagnant Salaries &
Higher Costs

Once again, the state budget took a back seat when the NC General Assembly
was in town this week as legislative leaders prioritized moving quickly to
pass a new U.S. Congressional District map (See [7]last week’s
newsletter.).

Debate in the House and Senate reflected the high stakes attached to
redrawing Districts 1 and 3 to more heavily favor Republicans in District
1, currently represented by Don Davis, a Democrat. Floor speeches in the
Senate and House highlighted the dangers of redrawing a map (upon request
by the president) that would disenfranchise voters in a state with
virtually identical numbers of Democrats and Republicans.

Bill sponsors asserted the importance of delivering another Republican U.S.
House member to the president so he can fulfill his agenda. Critics of the
new map pointed out that state lawmakers’ sole duty is to serve North
Carolinians and that drawing a map simply to serve the will of the
president was an abdication of their oath to the state constitution.

Floor speeches as well as in-person public comments urged lawmakers to
abandon the new map and focus on passing a budget that addresses the many
needs of the state. More than 12,000 public comments, overwhelmingly
against new maps, had been sent by Wednesday via the online comment
portal.

Both the House and Senate leaders ended floor debate through a procedure
that allows a member to call a vote on a bill to end debate. In both
chambers, the vote to end debate passed along party lines, and by Wednesday
afternoon the bill had passed through both chambers.

Redistricting bills are not subject to a governor’s veto, so [8]SB 249
"Realign Congressional Districts" is now law. [9]Legal challenges have
already been announced.

A small continuing budget bill, [10]Senate Bill 229 "Continuing Budget
Operations Part IV," also moved through chambers quickly with strong
bipartisan support. It was signed by Governor Stein on Wednesday. The bill
made technical changes to disaster relief but did not address any major
funding issues.

Thursday morning the House and Senate adjourned until November 17; leaders
stated that no state budget is expected until at least January 2026.

With no comprehensive state budget in place and no salary increases,
teachers and state employees are left with what amounts to a pay cut due to
rising healthcare costs in addition to the rising costs of other goods and
services.

The State Health Plan [11]raised premiums for all state workers starting in
January 2026. Employees making less than $50,000/year will see their
premiums go from $25/month to $35/month and possibly more depending on
which health plan is selected. Premiums for employees making $90,000/year
or more will go up to at least $80/month along with higher deductibles.

No state budget also means that NC Medicaid funding is falling short. Last
year’s funding levels are too low to address this year’s rising
costs. Inflation, new expensive drugs, increased demand for behavioral
health services, and federal changes (e.g. more rules) that increase
administrative costs all mean that NC Medicaid requires more funding.

Without more state funds, starting October 1, health care providers started
dealing with reimbursement rate cuts, which may lead some rural providers
to close.[12] Providers are already reducing services and salaries,
severely affecting those dependent on Medicaid. Our state is suffering by
the inaction of our legislators.

Unlike most budget stalemates, the current impasse is caused by
disagreements between House and Senate Republicans.

Contact the [13]budget conferees (members working on the budget) to share
your views.

Even without State Budget, Voucher Spending Continues

October data from the [14]NCSEAA reveals that North Carolina has spent
$296,056,119 MILLION dollars on the state voucher program so far this year
($279,889,102 on [15]Opportunity Scholarship tuition vouchers for 98,917
students and $16,167,017 for 5,473[16] ESA+ students). Because voucher
appropriations from the state have exceeded demand, the application period
has been extended and first-semester expenditures are likely to increase.

Funds to schools are disbursed each semester, so simply doubling the
October totals and assuming some increases in November, North Carolina is
projected to spend more than $600 million on taxpayer-funded private school
tuition vouchers this school year alone while our public schools and our
health care system suffer.

Although hundreds of millions in taxpayer dollars has been flowing to
private schools over the past few years, very little is known about many of
them due to the lack of state oversight of how voucher funds are spent.

For example, private schools are not required to publicly share tuition
cost, curriculum content, staff credentials, or financial information. Some
schools don’t even have a website or Facebook where the public can find out
their basic philosophy or school address.

In contrast, public schools are required to share details about every
aspect of their work and finances to the public. And new legislation even
requires public school teachers to [17]publicly list all of the titles of
books/media in their classroom libraries.

Perhaps legislators who are concerned about what’s happening in public
school classrooms will also attend to what is happening in private school
classrooms where hundreds of millions in state funds are flowing each year.

Legislative and SBE Updates

The House and Senate are adjourned until November 17 though some committees
are meeting in the next few weeks. Check the [18]legislative calendar for
updates.

The [19]House Select Committee on Government Efficiency meets on Wednesday,
October 29 at 1:00 p.m. ([20]stream)

This week the House unanimously passed several bills that were not taken up
by the Senate.

[21]SB 599 "State Teacher/Employee Pay and Local LEO Bonus" provides a
substantial pay increase to teachers, principals, and other state employees
and includes an immediate bonus for all law enforcement officers (payable
November 2025). All members voted in favor.

[22]SB 405 "Healthcare Investment Act" and [23]HB 491"Medicaid Rebase
Funding" Would bolster Medicaid funding and make other adjustments to make
funds available to healthcare (e.g., reduce funds appropriated to the state
capital fund).

Leandro Still Missing!

The latest release of North Carolina Supreme Court rulings came and went on
October 17 with [24]no ruling on Leandro.

Oral arguments in the most recent iteration of the case were held more than
600 days ago, on February 22, 2024. Legislative leaders had sued to block
the 2022 North Carolina Supreme Court ruling that required lawmakers to
fund public schools according to the [25]Leandro Comprehensive Remedial
Plan.

The funding at stake in the decades-old lawsuit against the state for
equitable education funding is critical for addressing budget gaps between
high-wealth (mostly urban) districts and low-wealth (mostly rural)
districts. It is essential for providing fair, equitable education that all
students deserve and are guaranteed by our state constitution. (Learn
[26]more about Leandro.)

The Leandro Comprehensive Remedial Plan (published in 2021) called for $5.5
billion in funding over 8 years.

Instead of meeting their constitutional requirement to fund public schools,
lawmakers have already appropriated nearly $5.3 billion for vouchers
through 2029-30.

Making NC's Schools the Best in the Nation - Pillar 8

Pillar 8 of [27]Achieving Educational Excellence: 2025-30 Strategic Plan
for North Carolina Public Schools is Galvanize Champions to Fully Invest in
and Support Public Education.

North Carolina’s journey toward educational excellence requires more than
vision and strategy — it demands the engagement, advocacy and investment of
champions across our state who recognize public education as the
cornerstone of our shared prosperity and collective future. This pillar
builds upon efforts to transform the narrative around public schools by
converting positive perception into concrete action by aligning partners
behind a unified commitment to educational excellence. We envision a
powerful network of non-education partners who bring fresh perspectives,
resources and influence to advocacy efforts.

Pillar 8 includes two measures of success.
* Increase state and local investments in public schools so that per
pupil funding increases by 10% (over 2023 levels) by 2030.
* Increase the percentage of school-aged children enrolled in public
schools to 89% by 2030.

To achieve these goals, the plan identities actions grouped into three
focus areas. Each focus area includes multiple actions and target
completion dates. One example action is shown for each focus area:
* Build community voices: Encourage and support aligned initiatives and
outreach via social media, media and events. (September 2026)
* Promote engagement initiatives: Develop and launch a statewide reading
campaign where students will collectively read 10 million books annually,
in collaboration with state and local partners. (January 2026)
* Move champions to action: Engage local and state policymakers to attend
events, visit schools and participate in public education initiatives.
(August 2026)

Superintendent Green is traveling around the state to share the plan and
engage stakeholders. Find locations and times at the [28]NCDPI website
(scroll down the page to Regional Tour). Upcoming events are shown below:
* Oct. 27, 6 p.m. – Sandhills Region – Lumberton High School (Lumberton,
Public Schools of Robeson County)
* Oct. 29, 6 p.m. – North Central Region – Chapel Hill High School
(Chapel Hill, Chapel Hill-Carrboro City Schools)

In Case You Missed It

[29]'It's really unfair': Triad parents blindsided by High Point charter
school's immediate closure

[30]NC approaches 100,000 private school voucher students. What it means
for the state.

[31]Forsyth schools get another $500,000 gift from Winston-Salem Foundation

[32]Hundreds of Union County teachers call out sick amid delayed pay
increases

[33]Nearly all state funding for Missouri school vouchers used for
religious schools

Did You Know?

For 11 years, AP and IB exams have been offered at no cost to thousands of
public-school students in NC. The current Senate budget proposal cuts this
funding.

State lawmakers in the Senate passed a budget proposal that would cut the
$17.9 million each year that is bookmarked to pay for North Carolina
students’ Advanced Placement (AP) and International Baccalaureate (IB)
exams. This includes the partnership between the Department of Education
(NCDPI) and the College Board that administers the exams for all schools
and provides professional development for teachers. The House budget
proposal does not cut this funding.

Although the funds have been secured for the 2025-2026 school year, the
funding is at risk of being cut in future years for all students except
those who are economically disadvantaged.

Please take action NOW. Email the lawmakers tasked with developing the
state budget. [34]Email budget conferees

Did You Miss Our Webinar?

Our webinar with Diane Ravitch is available on our [35]Youtube channel.

Dr. Diane Ravitch to discussed her new book, An Education: How I Changed My
Mind About Schools and Almost Everything Else. She described what motivate
her to write the book, how she evolved from being a conservative leader in
the school choice movement to a fierce defender and proponent of public
schools.

[36]Watch the webinar here.

If you donate $50 to Public Schools First NC (it's tax-deductible) and
select Ravitch's book, we will send you a copy!

[37]DONATE HERE

Mark Your Calendar!

Multiple Dates, 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.

[38]REGISTER HERE

All screenings are on Thursday and include time for discussion. Invite a
friend and contact us about setting up a private screening for your school
staff, PTA, civic group, church, or synagogue.
* January 22, 2026
* February 26, 2026
* March 26, 2026

Words to Remember

"If we work with determination, we can drive out the billionaires, the
grifters, the heartless libertarians, and the religious zealots who now
seek control of our public schools."

— Diane Ravitch, An Education: How I Changed My Mind About Schools and
Almost Everything Else

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.

[39]DONATE HERE

[40]www.publicschoolsfirstnc.org

Questions? Contact us today at [email protected]

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