Governor Stein Releases 2025-2027 Budget Proposal Investing In Public Schools
Governor Josh Stein held a press conference Wednesday to unveil his 2025-2027 budget plan, which includes many of NCASA’s legislative priorities. The budget proposes significant investments in public education by adding more than $876 million in FY 2025-26 and $1.2 billion in FY 2026-27.Gov. Stein’s budget proposes raising starting teacher salaries to the highest in the Southeast and provides a 10.6% average raise for teachers over the biennium. Starting teacher pay would increase to $44,500 in FY 2025-26 and to $51,200 in FY 2026-27. In addition, the proposal would provide teachers and instructional support personnel with a $300 tax-deductible stipend and restore master’s degree supplements for educators who have or obtain a master’s degree in the subjects they teach.
School health personnel and assistant principals would receive raises based on the teacher salary schedule, and principals would receive a 6% increase over the biennium. The proposal also includes a 3% raise for non-certified and central office staff. State employees would receive a 2% salary increase (FY 2025-26 only) and a $1,000 bonus. The proposal also includes a one-time 2% cost-of-living supplement in FY 2025-26 for retirees.
Stein’s proposal would also increase funds to the State Health Plan, which provides coverage to nearly 750,000 school personnel, state employees, retirees, and dependents.
To fund some of these and other initiatives, the Governor’s budget proposes limiting Opportunity Scholarships (private school vouchers) to families earning less than $115,000 annually and calls for no new vouchers to be issued moving forward.
To free up additional revenue, Governor Stein also asks lawmakers to hold steady with the current individual income tax rate of 4.25% and the corporate income tax rate of 2.25%, rather than reducing these further as already set to occur under existing law.
Stein’s proposal would invest in “student safety and well-being” through the following over the biennium:
- Universal school breakfast at no cost to students ($170.6 million)
- Additional school health personnel ($65.4 million)
- School safety equipment, school resource officers and training ($166 million)
- Cell phone pilot program limiting usage in classrooms ($5.1 million in FY 2025-26)
- Funding classroom devices and refreshing outdated devices ($239 million)
- Eliminating 13% funding cap for the Children with Disabilities allotment ($54 million)
- Expanding science of reading and diagnostic assessments in grades 4-8 ($58 million)
- Supporting cybersecurity, broadband, and operational support ($57 million)
- Funding high-dosage tutoring ($12 million)
- Expand the Advanced Teaching Roles Program ($42.2 million)
- TA-to-Teacher Reimbursement Program ($8 million)
- N.C. Center for the Advancement of Teaching ($3 million)
Gov. Stein also proposes a $4 billion school facility bond referendum to go before North Carolina voters for approval to help address the $13 billion in needs identified through 2026 for new schools, additions, and renovations.
For additional budget details, please see:
Governor’s Full Budget
Education Budget
Special Provisions
Press release with budget highlights
Thursday’s presentation to joint meeting of House and Senate Appropriations Committees