Two groups decided they were above the rules: teachers who walked out, and legislators who still haven’t passed a state budget.
Good Evening,
In North Carolina this past week, two groups decided they were above the rules: teachers who walked out, and legislators who still haven’t passed a state budget.
Only one of those made headlines, but both are failing the people they are meant to serve.
On January 7, teachers from more than 50 schools left their classrooms to “walk for change,” protesting pay, working conditions, and the lack of a new budget. The organizers insist it wasn’t a strike.
Unfortunately for them, state law has a different view.
North Carolina law clearly bans strikes by public employees, including teachers. It defines a strike as a deliberate work stoppage to pressure an employer. Leaving classrooms during the school day to force political change fits that description rather neatly.
Teachers absolutely have the right to speak, organize, and petition their government. They do not have the right to abandon students in order to do it.
But if teachers are wrong to walk out, lawmakers are just as wrong to wander.
Our state constitution requires the General Assembly to pass a budget every two years. The current fiscal year began on July 1, 2025. As of January 7, 2026, North Carolina is the only state in the country that still hasn’t done its basic homework.
This failure doesn’t just embarrass the legislature; it creates chaos for districts trying to plan salaries, staffing, and services.
Teachers shouldn’t walk out on students, but it’s hard to blame them for noticing that lawmakers walked away from their own duty first.
The rule of law is supposed to cut both ways. Teachers must stay in the classroom. Legislators must pass a budget. North Carolina’s kids deserve adults who can manage both at the same time.
You can read more about North Carolina’s (lack of) budget and its education system here, here, and here.
Esse quam videri,
Donald Bryson
CEO
John Locke Foundation
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There is a growing trend of "progressive" or Democratic-aligned candidates running in North Carolina Republican primaries as "unwelcome guests."
This is due to North Carolina's primary system, specifically the law mandating open primaries, which makes it easier for candidates with differing ideologies to switch parties.
The group "NC Educators on the Ballot" (NCEB) in particular has recruited several candidates to run as Republicans in various House districts (e.g., Districts 32, 35, 89, 105).
Candidates must be registered with their party at least 90 days before filing.
Many of these "party-switchers" met this deadline just in time for the 2026 cycle.
Republican recruiting failures in certain districts have left the door open for these "faux Republicans" to run unopposed or challenge incumbents.
While these candidates rarely win, their presence can force "real" Republicans to spend resources in primaries that could otherwise be used in the general election.
Candidates like LaKeshia Mashonda Ruddi Alston (Senate District 22) are an example of switchers whose policy positions do not align with traditional Republican platforms.
If the parties want to have more control over who can represent them in general elections, there are several options:
Switch to closed primaries.
Require party registration changes at least several months before a primary.
Returning to nomination by committee or convention.
Or just make sure people who represent your party’s values run for your party’s nominations in more races.
Despite tariff wars and trade deals taking a toll on American consumers and business owners, the economic outlook for 2026 appears strong for North Carolina.
Experts indicate that North Carolina is in a stronger position than most of the country and is well-prepared to weather current economic challenges.
The state’s real GDP growth for 2025 (estimated at 1.86%) was nearly identical to 2024 (1.93%), signaling steady stability.
National forecasts from Goldman Sachs (2.6% GDP growth) and Vanguard (2.25% GDP growth) suggest a broader economic acceleration in 2026, which is expected to benefit North Carolina.
Manufacturing remains a cornerstone of the state's economy, accounting for 14.5% of the state’s GDP ($108 billion) in 2024, with durable goods comprising the majority of that output.
While the outlook is positive, consumers are feeling the weight of inflation and tariff costs.
Businesses are increasingly passing these multi-billion dollar costs on to consumers, whose salaries are often not keeping pace.
Forecasts predict the national unemployment rate will drop to roughly 4.2% by 2026, down from late 2025 levels.
State officials noted significant progress in reducing state debt (down $20 billion in one year) and record-breaking profitability in the state pension plan, which earned $16 billion in 2025.
Analysts warn that, while the "headline" data is strong, factors such as high borrowing costs, trade policy uncertainty, and a "low-hire, low-fire" labor environment remain underlying risks to watch.
North Carolina’s finances are heading in the right direction in the new year, according to State Treasurer Brad Briner.
The North Carolina state pension plan generated roughly $16 billion in investment returns in 2025.
This significantly exceeded the required 6.5% rate of return, providing over $3 billion more than originally estimated.
These strong investment gains are helping to "dig out" of a long-standing funding gap, significantly reducing the inherited $16 billion pension deficit.
The State Health Plan’s financial outlook has also seen a dramatic reversal.
A projected $1.3 billion deficit for 2027 was eliminated through a combination of General Assembly support, board actions, and administrative changes (including a switch to Aetna), resulting in the plan now sitting slightly above its required reserve rate.
The state has made significant progress in paring back traditional state debt, which fell by billions over the last cycle, contributing to the maintenance of North Carolina’s AAA bond rating.
A pilot program with OpenAI within the Treasurer's office was also deemed a success, reportedly improving employee productivity by roughly 10% in its early phases.
Looking into 2026, the Treasurer’s office plans to continue a "data-dependent" approach, focusing on better stewardship of resources and updating outdated business processes to ensure long-term solvency for retirees.
