The North Carolina General Assembly kicked off the 2026 short legislative session this week with bi-cameral agreement on HB 696, a bill designed to address the $319 million Medicaid shortfall for FY 25-26. In addition to the Medicaid agreement, both chambers filed bills and received bills passed by one chamber in 2025 that will be considered by conference committees during the short session.
 
One bill HB 1043, filed by Oversight Committee Chair Rep. Brendan Jones (R-Columbus) expands public school unit (PSU) requirements in the Parents Bill of Rights, outlines certain remedies and compliance actions for violations, provides the General Assembly access to school personnel records, and directs the State Auditor to conduct investigations into violations. Additionally, if a PSU is found noncompliant, funds from the local school administrative unit’s central office allotment would be withheld until remediation.
 
Other K-12 education bills with activity include areas such as remote instruction, school-based mental health, and school safety. All bill activity this week can be accessed here.
 
Gov. Josh Stein announced on Tuesday his FY 26-27 budget proposal. Last year, North Carolina was the only state in the country not to pass a comprehensive state budget, following disagreements between the House and Senate about pay raises, personal income taxes, and other budget items.
 
Gov. Stein’s budget proposes investing an additional $2.3 billion in public education, early learning, and child care. This includes $734 million in teacher and instructional support salaries with an average teacher raise of 11% that would also make starting teacher pay the highest in the Southeast. Other notable investments include $28 million in school-based administrator salaries, $32 million for School Health Personnel, $96 million in Exceptional Children funding, $136 million (non-recurring) for school facility renovation and repair, and $40 million for Advanced Teaching Roles. The Governor’s full education budget details can be accessed here and the full proposal here.
 
With the short session now under way, NCASA has been sharing with lawmakers the following key priorities for action by the General Assembly in 2026, including some of the budget priorities proposed by the Governor. NCASA urges our members to advocate for these same priorities ahead of House and Senate action to advance their own state budget proposals this session. See the NCASA Advocacy Center for template messages you can send to your own lawmakers on these priorities.