A technical correction to the comprehensive state budget that passed both legislative chambers today altered a provision that would have changed the timing of principal pay supplements.

The removed language would have altered the monthly distribution of pay supplements related to School Performance and directed the Department of Public Instruction (DPI) to “provide salary supplements to qualifying principals no later than October 31, 2026, and March 31, 2027.” This would have shifted those payments into two lump sums and become effective when the budget is signed into law.

This change would have immediately impacted take home pay, as principals would have seen a reduction in monthly pay until their first lump supplement payment was disbursed.

In response to this potential shift, NCASA quickly advocated for the elimination of the provision or, at a minimum, a delay in the effective date through a budget technical corrections bill that makes non-appropriation changes to the budget.

Additionally, the North Carolina Principals and Assistant Principals’ Association (NCPAPA) and the NC Principal of the Year Network (NCPOY) sent a letter Wednesday, July 1^st to key appropriations lawmakers requesting that the provision be eliminated.

As a result of these advocacy efforts, HB56: 2026 Budget Technical Corrections delays the change in pay time until January 1, 2027, which keeps the existing monthly pay structure in place through December 31, 2026. The shift to the lump sum will occur in 2027, as DPI is directed to distribute the supplement by January 31, 2027, with specific criteria outlined in the bill.

House leaders explained there will be another technical corrections bill this year. This creates an opportunity to make additional changes, which include continuing the monthly distribution method beyond the time frame outlined in the technical correction. Both chambers agreed to the adjournment resolution HJR 1244 and plan to return to session on July 27, 2026.

NCASA has stressed from day one of the biennium, as outlined in our legislative priorities, that North Carolina needs a comprehensive principal pay reform. We will continue to advocate for changes that support principals and create a more equitable and stable structure.

Please reach out to NCASA with any questions about this issue.