Gov. Josh Stein proposed his first budget on March 19. The budget lays out $33.6 billion in spending for the first year of the biennium (2025-26) and $34.3 for the second year, 2026-27.
The budget will now head to the Senate. Sen. Kevin Corbin of Franklin said he did not see any initial issues with Stein’s budget but had not gotten into the details yet. He did say though, “It’s probably more than the legislature will fund.”
Corbin said when developing the budget, the legislature looks at population growth in the state, which often requires the need for more services, and the inflation rate. He said the legislature would probably look at an increase of 2-3%, which is less than what the governor is proposing.
“It’s nothing bad, we just know we don’t have the money to do that,” he said. “I did have a conversation with the governor and told him he’s a committee of one and we’re a committee of 170. We have to get at least majority support.” (The N.C. Legislature is made up of 50 senators and 120 representatives in the house.)
Corbin said the Senate will get the budget first and hopes to have it finished by the legislature’s Easter break, after which it will go to the House of Representatives.
“The House and Senate have to agree on a spending figure,” Corbin said, estimating it would be closer to $30 billion or $31.5 billion.
He said they hope to reach a budget agreement by June 30 to have it in place for the new fiscal year beginning July 1.
“It’s a long process,” Corbin said.
The N.C. Budget and Tax Center estimates revenue in 2025-26 will increase by .5% to $34.89 billion. However, due to tax cuts, revenue in the second year is expected to come in lower at $34.07 billion. The projected revenue for the current year, ending June 30, is $34.71 billion.
The governor’s budget allocates money for workforce development, education, child care and early childhood education, public safety and health care.
The governor’s budget proposal can be viewed online at the Office of State Budget and Management, osbm.nc.gov.
Education funding
Stein’s budget proposal includes a raise for teachers and moving the starting pay for teachers from $42,804 to $53,000. The governor also wants more invested in student health by hiring more school nurses, counselors, and social workers and providing free breakfast in public schools. His budget also includes a proposed $4 billion bond to modernize old and outdated school buildings.
Bills have been filed in both the state House of Representatives and the Senate addressing teacher pay.
Corbin is chairing the Education/Higher Education Committee and the Appropriations on Education/Higher Education Committee this year. He said education makes up about 57% of the state’s budget.
Going into budget negotiations, Corbin said there are two priorities for him regarding education – expanding funding for advanced teaching and changing the formula to allocate more money for rural school systems. He wants to see a broader funding model for the 29 smaller school districts in the state, five of which are in his district.
He wants to also see a new model within schools that elevates teachers by pairing experienced teachers with newer ones and rewarding those experienced teachers financially. Corbin said teachers coming fresh out of college have the knowledge, but they need the classroom experience and someone to help them in those first few years. He envisions an experienced teacher maybe having two or three other teachers under them to offer support and guidance.
“It’s an opportunity to help other teachers, and they make more money,” Corbin said.
On March 25, Corbin along with Senators Michael Lee and Brad Overcash introduced Senate Bill 506 allocating additional funding for the Advanced Teaching Roles (ATR) program, which aims to create career pathways and additional compensation for teachers who take on leadership roles while continuing to teach. The bill appropriates $16.2 million in recurring funds for 2025-26 and $20.1 million for 2026-27. The money would then be allocated to schools participating in the ATR program to provide salary supplements.
Education changes at federal level
President Donald Trump signed an executive order on March 20 that would begin dismantling the U.S. Department of Education. Corbin says when people ask him about what is happening at the federal level he says, “We have nothing to do with that. There are more than 7,000 state legislators (across the country) and we have no control over that. We’ll respond to that.”
Corbin, who once served on the Macon County Board of Education and the Macon County Board of Commissioners, said federal funding makes up 8-12% of funding for school districts, depending on the district. Primary funding for local school districts comes from the state and the local government.
He said usually there are a lot of strings attached to federal funding. “In my opinion, if they cut us a check and let North Carolina run it, we’ll be fine,” he said. “The average student in Macon County wouldn’t know the difference.”
Corbin said he has not heard that funding would necessarily be cut but that control would move from Washington, D.C. to the states. He noted that if there are positions cut at the federal level that could result in more money trickling down to the states.
“We don’t have any say-so about that. Whatever happens, we will adapt to it,” Corbin said.